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U
*.
Annual Report
o fth«
Secretary of the Treasury
on the
State of the Finances
For the Fiscal Year Ended June 30, 1954
TREASURY DEPARTMENT
DOCUMENT NO. 3194
Secretary
U N I T E D STATES G O V E R N M E N T
PRINTING O F F I C E , WASHINGTON
For sale by the Superintendent of Documents, U. S. Government Printing Office
Washington 25, D. C. - Price $2.50
:
1955
CONTENTS
Page
Transmittal and statement by the Secretary of the Treasury
1
REPORT ON FISCAL OPERATIONS
Summary of fiscal operations
Budget receipts and expenditures
Budget receipts in 1954
Estiniates of receipts in 1955 and 1956- - ^-.Budget expenditures in 1954
Estiniates of expenditures in 1955 and 1956
Trust account and other transactions
General fund
Public debt operations and ownership of Federal securities
Public debt operations
Ownership of Federal securities
Corporations and certain other business-type activities of the GovernmentSecurities owned by the United States Government
Taxation developments
International financial and monetary developments
5
7
7
10
15
17
18
19
20
22
35
40
43
43
54
ADMINISTRATIVE REPORTS
Summary of progress in management improvement
Changes in organization
Comptroller of the Currency, Bureau of the Customs, Bureau of
-Engraving and Printing, Bureau of
Fiscal Service
Internal Revenue Service
International Finance, Office of
Mint, Bureau of the
Narcotics, Bureau o f - - - - ^ United States Coast Guard
United States Savings Bonds Division--United States Secret Service
-
---
-
65
68
69
72
87
96
125
133
134
139
142
156
158
EXHIBITS
Public Debt Operations
Treasury certificates of indebtedness, Treasury
notes, and Treasury bonds
1. Offering of 2-1/2 percent tax anticipation certificates of Series C-1954 and
allotments
-
III
165
IV
CONTENTS
Page
2.
3.
4.
5.
6.
7.
8.
9.
10.
Offering of 1-1/8 percent certificates of Series B-1955
Details of certificate issues and allotments
Offering of 2-7/8 percent Treasury notes of Series A-1957
Offering of 1-7/8 percent Treasury notes of Series B-1954
Offering of 1-7/8 percent Treasury notes of Series A-1959
Offering of 2-3/4 percent Treasury bonds of 1961Offering cf 2-1/2 percent Treasury bonds of 1958 (additional issue)
Offering of 2-1/2 percent Treasury bonds of 1961
-Call, February 9, 1954, for redemption on June 15, 1954, of 2-1/4 percent
Treasury bonds of 1952-55, dated February 25,1942
11. Call, February 9, 1954. for redemption on June 15, 1954, of 2-1/4 percent
Treasury bonds of 1954-56, dated July 22,1940.
167
169
171
172
174
177
178
180
184
184
Treasury bills
12. Inviting tenders for Treasury bills dated June 24,1954
13. Acceptance of tenders for Treasury bills dated June 24, 1954
14. Inviting tenders for the Tax Anticipation Series of Treasury bills dated
AprU 27, 1954
15. Acceptance of tenders for the Tax Anticipation Series of Treasury bills
dated AprU 27, 1954 - - 16. Summary of information pertaining to Treasury biUs
17. Eighth amendment, July 3, 1953, to Department Circular No. 418, regulations governing Treasury bills
18. Revision, February 23, 1954, of Department Circular No. 418, regulations
governing Treasury biUs-
185
186
186
188
188
191
191
Treasury savings notes and United States savings bonds
19. First amendment, September 25, 1953, to Department Circular No. 922,
withdrawal of Treasury savings notes of Series B
20. Offering of Treasury savings notes of Series O
21. Suspension of sale of Treasury savings notes of Series C
22. Exchange of Series F and G savings bonds at maturity for other series of
savings bonds
23. V/ithdrawal of United States savings bonds from sale at local post offices
in communities where other savings bond agents provide adequate facilities
24. Offset printing of $25 denomination Series E savings bonds -25. First amendment, February 23,1954, to Department Circular No. 653, Third
Revision, authorizing issuance of Series E savings bonds to trustees of
an employees* savings plan, and authorizing an additional denomination
of $ 100,000 of Series E savings bonds
26. Second amendment, February 23, 1954, to Department Circular No. 530,
Seventh Revision, regulations governing United States savings bonds- - 27. Third amendment, May 25, 1954, to Department Circular No. 530, Seventh
Revision, regulations governing United States savings bonds
194
194
201
201
201
202
203
206
208
Obligations Guaranteed by the United States
28. Supplemental regulations governing Federal Housing Administration debentures
29. Notices of call for partial redemption, before maturity, of 2-3/4 percent
mutual mortgage insurance fund debentures. Series E (eleventh call) - -
209
211
^\wo\^^
CONTENTS
y
Page
30. Summary of information contained in the notices of call for partial redemption, before maturity, of insurance fiind debentures
212
Taxation Developments
31. Extract from the Budget Message ofthe President, January 21,1954. transmitting proposals for tax legislation
...32. Statement by Secretary of the Treasury Humphrey before the Joint Committee on the Economic Report, February 2,1954
33. Address telecast and broadcast by the President, March 15, 1954, on the
tax program
--34. Letter of Secretary of the Treasury Humphrey, March 17,1954, to Speaker
of the House of Representatives, Joseph W.Martin, Jr., urging enactment
of the tax revision bill -35. Statement by Secretary ofthe Treasury Humphrey before the Senate Finance
Committee, AprU 7, 1954, on the tax revision bill (H. R. 8300)36. Letter of Secretary of the Treasury Humphrey, April 8, 1954, to the Chairman ofthe Senate Finance Committee relative to the Treasury's participation in resolving technical suggestions concerning the tax revision
biU
---- 37. Remarks by Deputy to the Secretary Burgess before the Subcommittee on
Economic Development of Committee on Economic Matters, Tenth InterAmerican Conference^ Caracas, Venezuela, March 13,1954
38. Statement by the President, August 16, 1954, upon signing H. R. 8300, the
Internal Revenue Code of 1954 - 39. Remarks by Under Secretary ofthe Treasury Folsom before the American
Management Association, New York City, August 19,1954,on the philosophy of the new tax bill
-40. Statement by Secretary of the Treasury Humphrey, March 2,1954, on
proposed reductions in excise taxes
41. Summary of the Excise Tax Reduction Act of 1954
42. Summary of the act to revise the internal revenue laws of the United States
43. Letter of SecretaryoftheTreasury Humphrey, April 26,1954, to the Chairman of the Senate Committee on the Judiciary, on a proposed constitutional amendment relative to taxes on incomes, inheritances, and gifts 44. Miscellaneous revenue legislation enacted by the Eighty-third Congress,
Second Session
214
219
221
224
225
230
231
233
234
242
242
246
287
288
International Financial and Monetary Developments
45. Announcement, February 18,1954, by Secretary ofthe Treasury Humphrey
of the signing of a stabilization agreement between the United States, and
Peru 289
46. Press release, AprU 17, 1954, on the change in rate of the Mexican pesp - . 289
47. Statement by Deputy to the Secretary Burgess before the Subcommittee on
Federal Reserve Matters of the Senate Banking and Currency Committee,
March 29, 1954, on gold - - 290
48. Statement by Deputy to the Secretary Burgess before the Senate.Banking
and Currency Committee, June 15, 1954, on the Export-Import Bank
296
49. Remarks by Assistant Secretary of the Treasury Rose before the World
Trade Conference, Washington, D. C , May 17, 1954- - - - - > - - - 297
50. Statement by Assistant Secretary of the Treasury Rose before the House
Ways and Means Committee, June 22, 1954, on customs simplification 301
VI
CONTENTS
'
Page
51. Remarks by Assistant Secretary of the Treasury Overby before the Milwaukee AssociaticMi of Commerce and Milwaukee World Trade Club,
Milwaukee, Wis., May 17,1954
-52. Remarks by Assistant Secretary of the Treasury Overby before the United
States Council of the International Chamber of Commerce, New York
City, December 16,1953
53. Statement of the Governor for the United States,Secretary of the Treasury
Humphrey, at the ninth annual meeting of the Board of Governors of the
Intemational Monetary Fund and the International Bank for Reconstruction
and Development, Washington, D. C , September 24, 1954
54. Statement by Secretary of the Treasury Humphrey at a panel discussion
before the Board of Governors of the International Bank for Reconstruction and Development, Washington, D. C , September 28,1954
55. Statement by Under Secretary ofthe Treasury for Monetary Affairs Burgess
at the discussion of the Annual Report of the International Monetary Fund,
September 25,1954
305
309
312
314
317
Addr^ses and Statements by the Secretary of the
Treasury and Other Treasury Officials
56. Statement by Secretary of the Treasury Humphrey before the Joint Committee on the Economic Report, February 2, 1954, on the reason for
keeping Government deposits in banks
57. Remarks by Secretary of the Treasury Humphrey before the American
Society of Newspaper Editors, Washington, D. C , AprU 15,1954
58. Remarks by Secretary of the Treasury Humphrey before the Congress of
Industrial Organizations Full Employment Conference, Washington, D. C ,
May 11, 1954- - - 59. Remarks by Secretary of the Treasury Humphrey following presentation
of the Govemment Economy Award lo former Pres ident Hoover, Senator
Byrd, and Secretary Humphrey, New York City, May 25,1954
60. Remarks by tJnder Secretary of the Treasury Folsom before the National
Association of Manufacturers, New York City, December 3,1953
61. Extracts from remarks by Under Secretary of the Treasury Folsom at the
Bicentennial Celebration, Columbia University, New York City, June 4,
1954
62. Statement by Under Secretary of the Treasury Folsom before the Senate
Committee on Post Office and Civil Service, June 10,1954, on group
life Insurance for Federal employees
63. Extracts from remarks by Under Secretary of the Treasury Folsom before
the National Council for Community Improvement, Washington, D. C ,
June 24,1954
64. Remarks by Deputy to the Secretary Biirgess before the National Association of Manufacturers, New York City, December 3,1953 - -^
65. Address by Deputy to the Secretary Burgess at a joint meeting of the
American Economic Association and the American Finance Association,
Washington, D, C , December 29, 1953
-66. Statement by Deputy to the Secretary Burgess before the Subcommittee
cm Federal Reserve Matters of the Senate Committee on Banking and
Currency, May 13, 1954, on extending the authority of the Federal Reserve Banks to purchase securities directly from the Treasury
67. Extract from an address by Deputy to the Secretary Burgess before the
Graduate School of Banking, Araerican Bankers Association, New Brunswick, N. J., June 18, 1954
-
319
320
323
328
329
333
334
338
338
341
347
348
CONTENTS
VII
Organization and Procedure
Page
68. Treasury Department orders relating to organization and procedure
350
Reporting and Accounting Changes
69. Joint proposal by the Secretary ofthe Treasury, the Director of the Bureau
of the Budget, and the Comptroller General of the United States to improve the receipt and expenditure reports of the Federal Government
(October 5, 1953)
70. Joint statement by the Secretary ofthe Treasury, the Director of the Bureau
of the Budget, and the Comptroller General ofthe United States, relative
to changes in Treasury reporting (Febmary 17,1954)
71. Regulations governing reports of certain cash transactions of theUnited
States Government (Department Circular No. 940, Febmary 17,1954)- 72. Statement regarding a system of central accounts for the United States
Government (Department Circular No. 945, May 11, 1954)
73. Regulations governing the direct deposit of collections by certain departments and agencies (Department Circuiar No, 937, January 18,1954) - 74. Regulations governing the purchase, custody, transfer, and sale of foreign
exchange by execu tive. departments and agencies (Departmoit Circular
No. 930, October 19, 1953)
-75. Regulations for the administration of foreign currencies and credits under
disposition of surplus property abroad and lend-lease settlements
(Department Circular No. 799, October 19,1954)
76. Regulations governing deposit of public moneys and payment of Government
checks (Department Circular No. 176 (Revised), April 26,1954)
382
385
386
387
391
394
397
398
Miscellaneous
77. Regulations governing the making of loans to public or private agencies of
the United States pursuant to the Refugee Relief Act of 1953 (Department
Circular No. 932, December 1,1953) - - - 78. Letter of the Postmaster General to the Secretary ofthe Treasury certifying extraordinary expendimres contributing to the deficiencies of pos tal
revenue for the fiscal year 1954 - - --:
400
402
TABLES
Bases of tables
Treasury fiind stmcture
407
409
Sirnimiary of Fiscal Operations
1. Summary of fiscal operations, fiscal years 1932-54 and monthly 1954
412
Receipts arid Expenditures
2. Receipts and expenditures, fiscal years 1789-1954
3. Budget receipts and expenditures, monthly for fiscal year 1954 and totals
for 1953 and 1954
4. Tmst account and other transactions, monthly for fiscal year 1954 and
totals for 1953 and 1954
5. Budget receipts and expenditures by major classifications, fiscal years
1947-54
--
414
420
434
444
VIII
CONTENTS
Page
6. Tmst account and other transactions by major classifications, fiscal
years 1946-54
7. Budget receipts and expendimres, actual for fiscal year 1954 and estimated for 1955 and 1956
8. Trust account and other transactions, actual for fiscal year 1954 and
estimated for 1955 and 1956
9. Effect of financial operations on the public debt, acmal for fiscalyear
1954 and estimated for 1955 and 1956
10. Internal revenue collections by tax sources, fiscal years 1929-54
11. Customs collections and refiinds, fiscal years 1953 and 1954
12. Postal receipts and expendimres, fiscal years 1911-54
13. Treasury cash income and outgo, fiscal years 1947-54
447
449
452
453
454
460
461
463
Public Debt, Guaranteed Obligations, Etc*
Outstanding public debt, guaranteed obligations, etc.
14. Stamtory limitation on the public debt and guaranteed obligations, June 30,
1954
-.
15. Debt outstanding subject to statutory debt limitation as of selected dates 16. Public debt and guaranteed obligations outstanding, June 30i 1934-54
17. Prmcipal of the pubUc debt, 1790-1954
18. Summary of public debt and guaranteed obligations by security classes,
June 30, 1954 - 19. Public debt by security classes, June 30, 1944-54
20. Guaranteed obligations held outside the Treasury, classified by issuing
Government corporations and other business-type activities, June 30,
1944-54
21. Certain contingent liabilities, June 30,1944-54
22. Maturity distribution of marketable, interest-bearing public debt and
guaranteed obligations, June 30,1944-54
•- - 23. Description of public debt issues outstanding June 30,1954
24. Description of guaranteed obligations held outside the Treasury, June 30,
1954 - - ------25. Description of certain contingent liabilities outstanding June 30,1954
467
468
468
469
471
472
474
475
475
476
494
496
Operations in the public debt, etc.
26. Issues, maturities, and redemptions of interest-bearing public debt securities, excluding special issues, July 1953-June 1954
--27. Certificates of indebtedness, special series, issues and redemptions,
fiscal year 195428. Public debt receipts and expendimres by security classes, monthly for
fiscal year 1954 and totals for 1953 and 1954
29. Changes in public debt issues, fiscal year 1954
-30. Public debt increases and decreases, and balances in general fund, fiscal
years 1916-54
----31. Statutory debt retirements, fiscal years 1918-54
-32. Cumulative sinking fiind, fiscal years 1921-54
33. Transactions on account ofthe cumulative sinking fund, fiscal year 1954 -
497
517
518
526
544
545
546
546
United States savings bonds and Treasury savings notes
34. Summary of sales and redemptions of savings bonds by series, fiscal
years 1935-54 and monthly 1954 - --
547
CONTENTS
IX
Page
35. Sales and redemptions of Series E through K savings bonds by s e r i e s ,
fiscal years 1941-54 and monthly 1954
548
36. Sales of Series E through K savings bonds by denominations, fiscai years
1941-54 and monthly 1954
552
37. Redemptions of Series E through K savings bonds by denominations, fiscal
years 1941 -54 and monthly 1954 - ---'554
38. Sales of Series E and H savings bonds by States, fiscalyears 1953, 1954,
and cumulative
-_._^...,^-555
39. Percent of savings bonds sold in each year redeemed through each yearly
period thereafter, by denominations
^ 557
40. Sales and redemptions of Treasury savings notes, August 1941-June 1954563
Interest on public debt and guaranteed obligations
41. Amount of interest-bear ing public debt outstanding, the computed annual
interest charge, and the computed rate of interest, June 30, 1916-54,
and at end of each month during 1954
^^^..^^^
42. Computed annual interest charge and computed annual interest rate on the
public debt by security classes, June 30, 1939-54 ^^^.-r^^.43. Interest on the public debt becoming due and payable by security classes,
fiscal years 1951-54
--44. Interest paid on the public debt and guaranteed obligations, classified by tax
status, fiscal years 1940-54
554
566
568
569
Prices and yields of securities
45. Average yields of long-term Treasury bonds by months, January 1930June 1954
.......
46. Prices and yields of marketable public debt issues, June 30, 1953 and
1954, and price ranges since first traded
570
572
Ownership of Governmental Securities
47. Estimated ownership of all interest-bearing governmental seeurities outstanding, classified by type of issuer, June 30, 1941-54 - ' - 48. Estimated distribution of interest-bearing governmental seeurities outstanding June 30, 1941-54, classified by tax status and type of issuer - 49. Summary of Treasury survey of ownership of interest-bearing public debt
and guaranteed obligations, June 30, 1953 and 1954
•^
574
576
578
Gold, Silver, and General Fund Assets and Liabilities
50. Assets and liabilities of the Treasury, June 30, 1953 and 1954
580
Trust Funds and Certain Other Accounts of the
Federal Government
51. Holdings of Federal securities by Government agencies and accounts, at
par value, June 30, 1944-54
52. Adjusted service-cer tificate fiind, June 30, 1954 - ---.53. Ainsworth Library fund, Walter Reed General Hospital, June 30, 1954
54. Civil service retirement and disability fund, June 30, 1954
55. District ofColumbia teachers' retirement and annuity fund--As sets held by
the Treasury Department, June 30, 1954
-56. District ofColumbia water fLind--Investmentsheldby theTreasury Department, June 30, 1954
- "-
582
586
587
588
589
589
X
CONTENTS
Page
57. Relief and rehabilitation, Workmen's Compensation Act, within the Dis trict
of Columbia--Assets held by the Treasury Department, June 30,1954- 58. Federal old-age and survivors insurance trust fund, June 30, 1954
59. Foreign service retirement and disability fiind, June 30, 1954
60. Library of Congress trust fund, June 30, 1954
61. Relief and rehabilitation, Longshoremen's and Harbor Workers' Compensa tion Act, as amended--Assets held by the Treasury Department, June 30,
1954
62. National Archives gift fund, June 30, 1954
63. National park trust fund, June 30, 1954
64. National service life insurance fund, June 30, 1954
65. Pershing Hall Memorial fund, June 30, 1954
--66. Public Health Service gift fiinds --Investments held by the Treasury Department, June 30, 1954
-'
67. Railroad retirement account, June 30, 1954
•
68. Unemployment trust fund, June 30, 1954
69. U. S. Government life insurance fiind--Investments, June 30, 1954
70. U. S. Naval Academy general gift fund, June 30, 1954
•
.
71. Special trust account for the payment of bonds of the Philippines, its provinces, cities, and municipalities, issued prior to May 1, 1934, under
authority of acts of Congress, stams as of June 30, 1954
590
591
593
594
596
596
597
598
599
599
600
602
606
606
607
Corporations and Certain Other Business-Type
Activities of the Government
72. Borrowing power and outstanding issues of Government corporations and
certain other business-type activities whose obligations are guaranteed
by the United States or issued to theSecretary of the Treasury, June 30,
1954 - .--.73. Treasury holdings of bonds and notes issued by Government corporations
and other business-type activities, June 30, 1944-54
74. Description of Treasury holdings of bonds and notes issued by Government
corporations and other business-type activities, June 30, 1954
75. Treasury holdings of bonds and notes issued to Government corporations
and other business-type activities, and related cur rent year transactions,
fiscal year 1954- ---76. Comparative statement of the assets, liabilities, and capital of Government
corporations and certain other business-type activities, as of JuneSO,
1945-54
--.-..
. .
77. Balance sheets of Government corporations and certain other business -type
activities, as of June 30, 1954
78.. Income and expense of Government corporations and certain other businesstype activities, fiscal year 1954
79. Source and application of funds of Government corporations and certain
other business-type activities, fiscal year 1954
80. Restoration of capital impairment of the Commodity Credit corporation,
as of June 30, 1954
81. Reconstruction Finance Corporation notes canceled, and cash recoveries
made through June 30, 1954
82. Securities owned by the United States Government (other than World War I
and World War II foreign government obligations), June 30, 1954, and
changes during 1954
83. Dividends, interest, and similar payments received by the United States
Treasury from Government corporations and certain other business-type
activities, fiscal year 1954
608
610
612
615
616
618
630
640
652
653
654
659
CONTENTS
XI
Stock and Circulation of Money in the United States
Page
84. Stock of money, money in the Treasury, inthe Federal Reserve Banks, and
in circulation, by kinds, June 30, 1954
85. Stock of money, money in the Treasury, inthe Federal Reserve Banks, and
in circulation, June 30, 1913-1954
86. Stock of money, by kinds, June 30, 1913-54
87. Money in circulation, by kinds, June 30, 1913-54
88. Location of gold, sUver bullion at monetary value, and coin held in the
Treasury on June 30, 1954.
89. Paper currency issued and redeemed during fiscal year 1954, and outstanding June 30,1954, by classes and denominations
660
662
663
664
665
666
Customs Statistics
90. Summary of customs collections and expendimres, fiscal year 1954
91. Customs collections and payments, by districts, fiscal year 1954
92. Value of dutiable and taxable imports for consumption and estimated duties
and taxes collected by tariff schedules, fiscal years 1953 and 1954
93. Value of dutiable imports and amounts of duties collected at specific, ad
valorem, and compound rates, fiscal years 1939-1954
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,
calendar.years 1943-53 and monthly January 1953-June 1954-95. Estimated customs duties, value of dutiable imports, and ratio of estimated
duties to value of dutiable imports, by tariff schedules, calendar years
1943-53 and monthly January 1953-June 1954
96. Value of dutiable imports for consumption and estimated duties collected,
by countries, fiscal years 1953 and 1954
97. Merchandise entries by number, fiscal years 1953 and 1954
98. Vehicles and persons entering the United States, by number, fiscal years
1953 and 1954
99. Airplanes and airplane passengers entering the United States, by number,
. fiscal years 1953 and 1954
100. Drawback transactions, fiscal years 1953 and 1954
101. Principal commodities on which drawback was paid, fiscal years 1953 and
1954
.-.
102. Seizures for violations of customs laws, fiscal years 1953 and 1954
103. Seizures for violations of customs laws, classified according to agencies
participating, fiscal year 1954
104. Investigative and patrol activities, fiscal years 1953 and 1954
667
668
670
671
672
673
677
678
678
679
679
680
680
681
681
Federal Aid to States
105. Expendimres for Federal aid to States, individuals,etc., fiscal years 1930,
1940, 1950, and 1954- - - -106. Expendimres made by the Government as direct payments to States under
cooperative arrangements and expendimres within States which provided
relief and other aid, fiscal year 1954
682
688
Government Losses in Shipment
107. Government losses in shipment revolving fund
703
XII
CONTENTS
International Claims
Page
108. Mexican claims fund, stams as of June 30, 1954
109. Awards of the Mixed Claims Commission, United States and Germany,
certified to the Secretary of the Treasury by the Secretary of State,
through June 30, 1954
705
706
Gold and Currency Transactions and Foreign Gold and
Dollar Holdings
110. United States net gold transactions with foreign countries, fiscalyears
1951 -1954
--.
111. Estimated gold and short-term dollar resources of foreign countries, as of
June 30, 1953 and 1954
-112. Assets and liabilities of the exchange stabilization fund, June 30, 1953 and
1954
113. Foreign currency balances in the accounts of the United States Treasury
Department, representing currencies acquired by the United States
Government without purchase with dollars as of June 30, 1954
114. Foreign currency transactions in the accounts of the United States T r e a s ury Department representing currencies acquired by the United States
Government without purchase with dollars, December 1, 1953, through
June 30, 1954
708
709
711
713
715
Indebtedness of Foreign Governments
115. Indebtedness of foreign governments to the United States arising from
World War I, and payments thereon, as of June 30, 1954
116. World War I indebtedness of Germany to the United States and amounts
paid and not paid, June 30, 1954
117. Summary of amounts billed, collected, and balances due the United States
under lend-lease and surplus property repayment agreements (World
War II), as of June 30, 1954
-118. Outstanding indebtedness of foreign countries on United States Government
credits, as of June 30, 1954, by area, country, and type
716
717
718
721
Personnel
119. Number of employees in the departmental and field services ofthe Treasury
Department quarterly from June 30, 1953, to June 30, 1954
723
INDEX -
725
.-
Note
In tables where figures have been rounded to a specified unit and where calculations
have been made fron unrounded figures, the details may not check to the totals shown.
SECRETARIES, UNDER SECRETARIES, AND ASSISTANT
SECRETARIES OF THE TREASURY DEPARTMENT
FROM JANUARY 20, 1953, TO NOVEMBER 15, 1954,*
AND THE PRESIDENTS UNDER WHOM THEY SERVED
Term of service
Served under-Official
From
To
Secretary of the
Treasury
President
Secretary of the
Treasury
Jan. 21, 1953
Eisenhower.
George M. Humphrey,
Ohio
Under Secretary
Jan. 28, 1953
Marion B. Folsom,
New York
Humphrey
Eisenhower.
Humphrey
Eisenhower.
Humphrey
Eisenhower.
Deputy to the
Secretary
Jan. 21. 1953 Aug. 2. 1954 W. Randolph Burgess,
New York
Under Secretary
for Monetary
Affairs ^
Aug. 3, 1954
W. Randolph Burgess,
New York
Assistant
Secretaries^
Snyder, Humphrey.. Truman,
Eisenhower.
Jan. 24, 1952
Andrew N. Overby,
District of Columbia
Jan. 28, 1953
H. Chapman Rose, Ohio Humphrey
Eisenhower.
Sept. 20, 1954
Laurence B. Robbins,
Illinois
Humphrey
Eisenhower.
Fiscal Assistant
Secretary
Mar. 16, 1945
Edward F. Bartelt,
Illinois
Administrative
Assistant
Secretary
Aug. 2, 1950
William W. Parsons,
California
Morgenthau, Vinson, Roosevelt,
Snyder, Humphrey.. Truman,
Eisenhower.
Snyder, Humphrey.. Truman,
Eisenhower.
iFor officials from Sept. 11, 1789, throughjan. 20, 1953, see exhibit 55, p. 314, in the
1953 annual report.
2The positions of Under Secretary for Monetary Affairs and an additional Assistant
Secretary were established under the provisions of Public Law 516, 83rd Congress,
approved July 22, 1954.
'
XIII
PRINCIPAL ADMINISTRATIVE AND STAFF OFFICERS OF
THE TREASURYDEPARTMENT AS OF NOVEMBER 15, 1954
Secretary
George M, Humphrey
Marion B. Folsom
Willis D. Gradison, J r .
Dan Throop Smith
Eugene E. Oakes
Robert P. Mayo
Laurens Williams
William W. Parsons
Willard L. Johnson
Howard M. Nelson
(Vacancy)
Joseph A. Jordan
Paul McDonald ....;
John D. Larson
Edward E. Berney
Henry L. Merricks
W. Randolph Burgess
Andrew N. Overby
Laurence B. Robbins
Harold T. Mason
Robert C. Maxwell
David M Kennedy
Frank A. Southard, J r
Edward F. Bartelt
Williarn T. Heffelfinger
Hampton A. Rabon, J r
Martin L. Moore
Frank F. Dietrich
George F. Stickney
H. Chapman Rose
Comdr. Q. R. Walsh. U. S. C. G
David P. Page
James P. Hendriqk
John P. Weitzel
Elmer T. Acken
Nils A. Lennartson
Malachi L. Harney
Clarence O. Tormoen
Under Secretary of the Treasury.
Assistant to the Under Secretary.
Special Assistant to the Secretary and Supervisor, Analysis Staff.
Chief, Tax Division, Analysis Staff.
Chief, Debt Division, Analysis Staff.
Assistant to the Secretary and Head, Legal
Advisory Staff.
Administrative Assistant Secretary of the
Treasury.
Budget Officer.
Assistant Budget Officer.
Director of Personnel.
Assistant Director of Personnel
Director of Administrative Services.
Assistant Director of Administrative Services.
Chief, Buildings Surveys and Maintenance
Division.
Chief, Office Services Division.
Under Secretary for Monetary Affairs.
Assistant Secretary.
Assistant Secretary.
Assistant to the Assistant Secretary.
Assistant to the Assistant Secretary.
Assistant to the Secretary.
Special Assistant to the Secretary.
Fiscal Assistant Secretary of the Treasury.
Assistant to the Fiscal Assistant Secretary.
Technical Assistant to the Fiscal Assistant
Secretary.
Technical Assistant to the Fiscal Assistant
Secretary.
Technical Assistant to the Fiscal Assistant
Secretary.
Head, Fiscal Service Operations and Methods
Staff.
Assistant Secretary of the Treasury.
Aide to the Assistant Secretary.
Assistant to the Secretary.
Assistant to the Assistant Secretary.
Assistant to the Assistant Secretary.
Assistant to the Assistant Secretary.
Assistant to the Secretary (for public affairs).
Technical Assistant to the Secretary for Enforcement.
Assistant tp the Secretary and Personnel
Security Officer.
XV
XVI
PRINCIPAL ADMINISTRATIVE AND STAFF OFFICERS
Office of the General Counsel
Vacant
Elting Arnold
,
John K. Carlock
Charles R. McNeill .,
Daniel A. Taylor
Laurens Williams
Raphael Sherfy
..*
Frederick C. Lusk
Robert F. Magill
Hugo A. Ranta
Lawrence Linville
Kenneth S. Harrison
Trevor V. Roberts
Robert Chambers
Edwin F. Rains
Daniel A. Taylor
Elting Arnold
Alfred L. Tennyson
Thomas J. Winston, J r
George F. Reeves
..."
General Counsel.
Assistant General Counsel.
Assistant General Counsel.
Assistant General Counsel.
Assistant General Counsel.
Head. Legal Advisory Staff (Assistant to the
Secretary).
Associate Head. Legal Advisory Staff.
Assistant Head, Legal Advisory Staff.
Assistant Head, Legal Advisory Staff.
Assistant to the General Counsel.
Special Assistant to the General Counsel.
Chief Counsel, U. S. Coast Guard.
Chief Counsel, Office of the Comptrollerof the
Currency.
Chief Counsel, Bureau of Customs.
Chief Counsel, Foreign Assets Control.
Chief Counsel, Internal Revenue Service.
Chief Counsel, Office of International Finance.
Chief Counsel, Bureau of Narcotics.
Chief Counsel, Bureau of the Public Debt.
Chief Counsel to the Fiscal Assistant Secretary.
Office of International Finance
George H. Willis
Charles Dillon Glendinning
Director.
Deputy Director and Secretary, National Advisory Council.
Acting Director. Foreign Assets Control.
Elting Arnold
Office of the Comptroller of the Currency
Ray M. Gidney
L. A.Jennings
W. M. Taylor
G. W. Garwood
W. P. Folger
Comptroller of the Currency.
First Deputy Comptroller of the Currency.
Second Deputy Comptroller of the Currency.
Third Deputy Comptroller of the Currency.
Chief National Bank Examiner.
Bureau of Customs
Ralph Kelly
D. B. Strubinger
W. R. Johnson
Burke H. Fhnn
Walter G. Roy
C. A. Emerick
Lawton M. King
G. H. Griffith
W. E. Higman
J. W. Gulick
J. F.Williams
i
Commissioner of Customs.
Assistant Commissioner of Customs.
Special Assistant to the Commissioner.
Administrative Officer.
Deputy Commissioner of Appraisement Administration.
Deputy Commissioner of Investigations.
Deputy Commissioner of Management and
Controls.
Chief, Division of Drawbacks, Penalties, and
Quotas.
Chief, Division of Classification. Entry, and
Value.
Chief, Division of Marine Administration.
Chief, Division of Technical Services.
PRINCIPAL ADMINISTRATIVE AND STAFF OFFICERS
XVII
Bureau of Engraving and Printing
Vacancy
Henry J. Holtzclaw
Director. Bureau of Engraving and Printing.
Associate Director.
Bureau of Accounts (in the Fiscal Service)
Robert W. Maxwell
Gilbert L. Cake
Harold R. Gearhart
Boyd A. Evans
Samuel J. Elson
Edmund C. Nussear
Wallace E. Barker, J r
Julian F. Cannon
Charles O. Bryant
George Friedman
Stephen P. Gerardi
Commissioner'of Accounts.
Associate Commissioner.
Deputy Commissioner--Central Accounts.
Deputy Commissioner--Accounting Systems.
Deputy Commissioner--Central Reports.
Deputy Commissioner--Deposits and Investments.
Assistant Commissioner for Administration.
Chief Disbursing Officer.
Assistant Chief Disbursing Officer.
Technical Assistant to the Cominissioner.
Executive Assistant to the Commissioner.
Bureau of the Public Debt (in the Fiscal Service)
Edwin L. Kilby
Donald M. Merritt
Ross A. Heffelfinger, J r
Charles D. Peyton
Commissioner of the Public Debt.
Assistant Commissioner.
Deputy Commissioner in Charge, Washington
Office.
Deputy Commissioner in Charge. Chicago
Office.
Office of the Treasurer of the United States
(in the Fiscal Service)
Ivy Baker Priest
Edmund Doolan
William T. Howell
Treasurer of the United States.
Deputy and Acting Treasurer.
Assistant Deputy Treasurer.
Internal Revenue Service
T. Coleman Andrews
O. Gordon Delk
Harrell T. Vance
Harry J. Trainor
Paul K. Webster
Justin F. Winkle
Norman A. Sugarman
Leo Speer
Daniel A. Taylor
George C. Lea
Commissioner of Internal Revenue.
Deputy Commissioner.
Assistant Commissioner (Administration).
Assistant Commissioner (Inspection).
Assistant Commissioner (Operations).
Assistant Coinmissioner (Planning).
Assistant Commissioner (Technical).
Technical Advisor to the Commissioner.
Chief Counsel.
Director of Practice.
Bureau of the Mint
William H. Brett
Leland Howard
Director ofthe Mint.
Assistant Director.
Bureau of Narcotics
Harry J. Anslinger
George W. Cunningham
Benjamin T. Mitchell
339256 O - 55 - 2
Commissioner of Narcotics.
Deputy Commissioner.
Assistant to the Commissioner.
XVIII
PRINCIPAL ADMINISTRATIVE AND STAFF OFFICERS
United States Coast Guard
Vice Admiral Alfred C. Richmond
Rear Admiral James A. Hirshfield
Captain I. E. Eskridge
Rear Admiral Kenneth K. Cowart
Rear Admiral Halert C. Shepheard
Rear Admiral Henry C. Perkins
Rear Admiral William W. Kenner
Captain Charles B. Arrington
Commandant, U. S. Coast Guard.
Assistant Commandant and Chief of Staff.
Deputy Chief of Staff.
Engineer in Chief.
Chief, Office of Merchant Marine Safety.
Chief, Office of Operations.
Chief. Office of Personnel.
Comptroller.
United States Savings Bonds Division
Earl O. Shreve
James J. Newman
Arthur B. Hill
National Director.
Assistant to the National Director.
Assistant to the National Director.
United States Secret Service
U. E. Baughman
Carl Dickson
Harry E. Neal
George W. Taylor
Chief, U. S. Secret Service.
Assistant Chief.
Executive Aide to the Chief;
Administrative Officer.
Treasury Management Committee
William W. Parsons
John K. Carlock
William T. Heffelfinger
Gilbert L. Cake
L. A. Jennings
David B. Strubinger
Harrell T. Vance
Leland Howard
George W. Cunningham
Harold T. Mason
i.....
Ross A. Heffelfinger, J r
William T. Howell
Rear Admiral James A. Hirshfield.
U. S. C. G
Bill McDonald
,
Harry E. Neal
Vacancy
Chairman.
Member.
Member.
Member.
Member.
Member.
Member.
Member.
Member.
Member.
Member.
Member.
Member.
Member.
Member.
Member.
Treasury Awards Committee
Willard L. Johnson
James H. Stover
Joseph A. Jordan
Leland Howard
Henry J. Holtzclaw
Captain I. E. Eskridge, U.S.C.G
John K. Carlock
William T. Heffelfinger
Malachi L. Harney...
Harrell T. Vance
Lawton M, King
Chairman.
Vice Chairman.
Member.
Member.
Member.
Member.
Member.
Member.
Member.
Member.
Member.
PRINCIPAL ADMINISTRATIVE AND STAFF OFFICERS
Wage Board
Joseph A. Jordan
Willard L. Johnson
William T. Heffelfinger
Acting Chairman.
Member.
Member.
Interdepartmental Savings Bond Committee
Edward F. Bartelt
;
Chairman.
Fair Employment Officer
Maurace E. Roebuck.
XIX
°ORGANIZATBOP\3 OF THE DEPARTMENT OF THE TREASURY °
B<s©esfifeQ(? to. 1 9 5 4
THE SECRETARY
Of TME TREASURV
Qmnh
X
Xr
a Ths G&r^reBl Cams©! serves as legal advisor to dts Seciresary, his asscciateSo auKil hsads of bafl^oaifis.
I ^ ^ ^ ^ S ^ ^ r S r E n ^ o . n s » . coordtaases enforce™^, ^ t l v i t o of te U. S. Secret S e r v i f U. S. C0.3S Guard. B M ^ U cf C « o » ^ .
BuB-eaiB of NaffccsicSo &i^ Internal Revenus SsFvice.
ANNUAL REPORT ON THE FINANCES
TREASURY D E P A R T M E N T ,
Washington, D. C , M a r c h 14, 1955.
SIRS: I h a v e the h o n o r to r e p o r t to you on the finances of the
F e d e r a l G o v e r n m e n t for the f i s c a l y e a r ended June 30, 1954.
D u r i n g that y e a r , and in the two full c a l e n d a r y e a r s that the
p r e s e n t a d m i n i s t r a t i o n h a s b e e n in office, s u b s t a n t i a l r e d u c t i o n s In
G o v e r n m e n t spending have m a d e p o s s i b l e s m a l l e r F e d e r a l deficits
and a r e b r i n g i n g n e a r e r our goal of a b a l a n c e d budget. Major tax
r e d u c t i o n s and c o m p r e h e n s i v e t a x r e v i s i o n s a r e r e m o v i n g b a r r i e r s
to e c o n o m i c growth and s t i m u l a t i n g Individual e n t e r p r i s e . P e r h a p s
l e s s s p e c t a c u l a r , but equally I m p o r t a n t , p r o g r e s s Is being m a d e
t o w a r d getting our huge public debt In b e t t e r s h a p e , so that Its
m a t u r i t i e s can be handled m o r e e a s i l y and the m a n a g e m e n t of the
debt will not be a c a u s e of Inflation or deflation but will c o n t r i b u t e
to e c o n o m i c s t a b i l i t y and g r o w t h .
T h e s e f i s c a l a c h i e v e m e n t s nnean a g r e a t deal to our p e o p l e . Tax
c u t s of $ 7 . 4 billion b e c a m e effective In the f i s c a l y e a r 1954. The
difficult and d e l i c a t e shift f r o m high G o v e r n m e n t spending to l o w e r
spending h a s b e e n m a d e without g r e a t d i s l o c a t i o n s In the e c o n o m y .
The p u r c h a s i n g p o w e r of the c o n s u m e r ' s d o l l a r In J a n u a r y 1955
w a s p r a c t i c a l l y unchanged f r o m J a n u a r y 1953. A f i r m b a s e h a s
b e e n laid for b e t t e r national s e c u r i t y , for a h e a l t h y and expanding
economy, and for m o r e jobs for m o r e p e o p l e .
A full r e p o r t on the T r e a s u r y ' s o p e r a t i o n s d u r i n g the 1954 f i s c a l
y e a r follows.
G. M. H u m p h r e y ,
S e c r e t a r y of the T r e a s u r y .
TO THE PRESIDENT OF THE SENATE.
TQ THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.
REPORT ON FISCAL OPERATIONS
SUMMARY OF FISCAL OPERATIONS
Budget e x p e n d i t u r e s of the G o v e r n m e n t e x c e e d e d net budget
r e c e i p t s by $ 3 . 1 billion in the fiscal y e a r 1954. This deficit was
$ 6 . 3 billion l e s s than the deficit in 1953; it was $ 6 . 8 billion l e s s
than the o r i g i n a l f o r e c a s t for 1954 in the Budget d o c u m e n t r e l e a s e d
J a n u a r y 9, 1953, and $.2 billion l e s s than the r e v i s e d e s t i m a t e for
1954 contained in the Budget which went to C o n g r e s s a y e a r l a t e r .
The $ 3 . 1 billion budget deficit, t o g e t h e r with an i n c r e a s e of $2.1
billion in the T r e a s u r y ' s g e n e r a l fund c a s h b a l a n c e , accounted for
the i n c r e a s e in the public debt of $5.2 billion d u r i n g the fiscal y e a r
1954. The g e n e r a l fund c a s h b a l a n c e a m o u n t e d to $6.8 billion on
June 30, 1954, c o m p a r e d with $ 4 . 7 billion on June 30, 1953. The
public debt outstanding on June 30, 1954, a m o u n t e d to $271.3 billion
c o m p a r e d with $266.1 billipn at the c l o s e of the f i s c a l y e a r 1953.
Net budget r e c e i p t s a m o u n t e d to $64.7 billion in 1954, only $.2
billion l e s s than the p r e v i o u s a l l t i m e high in 1953..Budget e x p e n d i t u r e s in 1954 of $ 6 7 . 8 billion w e r e s u b s t a n t i a l l y l e s s than the total
of $ 7 4 . 3 billion in 1953, which had b e e n the h i g h e s t on r e c o r d a s i d e
f r o m s e v e r a l y e a r s during World War II.
A r e c o n c i l i a t i o n b e t w e e n budget r e s u l t s and the change in the
public debt for the p a s t two y e a r s is shown in the following t a b l e .
In billions of dollars
Budget results:
Net receipts
Expenditures
Budget deficit
Increase in general fund balance, or decrease (-)
Trust account and other transactions, excess of expendi
tures, or receipts (-)^
()
*
Equals: Increase in public debt
NOTE.—Figures for 195A are based generally upon the "Monthly Statement of Receipts and Expenditures of
the United States Government," inaugurated beginning with the month of February 1954 (see announcement of
February 17, 1954, in exhibit 70 and "Bases of Tables"). For purposes of comparison, results for 1953 have
been revised to the new basis of reporting, and will disagree, in some cases, with figures contained in last
year's annual report.
*Less than $50 million.
^ Includes net trust account transactions, etc.; net investments of trust accoimts and Government agencies
in public debt securities; net sales or redemptions of obligations of Government corporations and agencies
in the msirlcet; changes in clearing and other accounts necessary to reconcile to Treasury cash; and changes
in amount of cash held outside the Treasury.
C h a r t 2 on the following page shows budget r e c e i p t s , budget e x p e n d i t u r e s , and the budget s u r p l u s o r deficit by y e a r s for the
p e r i o d 1951 t h r o u g h 1954. Annual f i g u r e s for 1932-54 and monthly
for 1954 a r e contained in table 1 in the t a b l e s s e c t i o n of this
report.
As h a s b e e n the c a s e in r e c e n t y e a r s , budget r e c e i p t s in the
s e c o n d half of the f i s c a l y e a r 1954 w e r e s u b s t a n t i a l l y g r e a t e r than
in the f i r s t half of the y e a r . This was due in l a r g e m e a s u r e to the
a c c e l e r a t i o n of c o r p o r a t i o n i n c o m e t a x e s p r o v i d e d by the Revenue
Act of 1950, frequently r e f e r r e d to a s the **Mills P l a n . " Under this
p r o v i s i o n c o r p o r a t i o n s paying t a x e s on a c a l e n d a r y e a r b a s i s have
1954 REPORT OF THE SECRETARY OF THE TREASURY
g r a d u a l l y i n c r e a s e d t h e i r t a x p a y m e n t s in the h a l f - y e a r following
t h e c l o s e of t h e i r t a x a b l e y e a r t o a p o i n t w h e r e i n t h e f i s c a l y e a r
1 9 5 4 t h e y p a i d 9 0 p e r c e n t of t h e i r 1 9 5 3 t a x l i a b i l i t i e s i n t h e p e r i o d
J a n u a r y - J u n e , 1 9 5 4 . T h e R e v e n u e A c t of 1 9 5 4 w i l l p l a c e c o r p o r a t i o n s c l o s e r t o a **pay a s y o u e a r n * * s y s t e m a n d g r a d u a l l y , o v e r a
f i v e - y e a r p e r i o d , will d i s t r i b u t e c o r p o r a t i o n t a x p a y m e n t s m o r e
evenly throughout the y e a r .
B u d g e t e x p e n d i t u r e s w e r e l e s s i n t h e l a t t e r h a l f of 1 9 5 4 a s c o m p a r e d w i t h t h e f i r s t h a l f of t h e y e a r , m a i n l y b e c a u s e of a d o w n t u r n
i n o u t l a y s f o r n a t i o n a l s e c u r i t y . T h i s r e v e r s e d t h e t r e n d of t h e l a s t
few y e a r s when e x p e n d i t u r e s w e r e g r e a t e r in t h e s e c o n d half in the
y e a r s while the defense p r o g r a m was expanding.
FEDERAL BUDGET PICTURE
$Bil.
Expenditures
i ^
90
80
Surplus or Deficit
gTIsg
-10
<Surp/i/s}
(Deficit)
I I
1951
V_
1952
1953
1951
1954
1952
I I
1953
I
1954
-Fiscal YearsChart 2.
The following t a b l e s h o w s the d i s t r i b u t i o n of n e t b u d g e t r e c e i p t s ,
b u d g e t e x p e n d i t u r e s , and b u d g e t s u r p l u s o r d e f i c i t , by q u a r t e r s ,
half y e a r s , and f i s c a l y e a r s for 1953 and 1954, in b i l l i o n s of d o l l a r s .
Net e x p e n d i t u r e s for f i r s t half of 1953 a r e c o n v e r t e d a p p r o x i m a t e l y
to n e w b a s i s of r e p o r t i n g .
REPORT ON FISCAL OPERATIONS
Net budget
receipts
Period
Fiscal year 1953:
July-September, 1952
October-December, 1952
Total
Net budget
expenditures
Budget
surplus, or
deficit (-)
16.7
18.5
-3.0
-5.3
26.9
35.2
-8.3
21.2
16.7
17.1
21.9
-5.2
37.9
39.1
-1.1
64.8
74.3
-9.4
13.6
12.1
17.1
17.4
-3.5
-5.2
13.7
13.2
first half
January-March, 1953
April-June, 1953
Total, second half
i
Total, fiscal year 1953
Fiscal year 1954:
Jxily-September, 1953
October-December, 1953
4.1
25.8
-8.7
15.5
17.8
- .8
38.9
33.3
5.6
64.7
Total, fiscal year 1954
34.5
21.9
17.0
Total, first half
January-March, 1954.
April-June, 1954
67.8
-3.1
6.4
BUDGET RECEIPTS AND EXPENDITURES
Budget Receipts in 1954
Net budget r e c e i p t s (total r e c e i p t s l e s s the a p p r o p r i a t i o n s to the
F e d e r a l o l d - a g e and s u r v i v o r s i n s u r a n c e t r u s t fund, and to the
r a i l r o a d r e t i r e m e n t a c c o u n t , and refunds of r e c e i p t s ) a m o u n t e d to
$64,7 b i l l i o n in the f i s c a l y e a r 1954, slightly l e s s than r e c e i p t s of
$64.8 billion in 1953.
R e c e i p t s by m a j o r s o u r c e s in the f i s c a l y e a r s 1953 and 1954 a r e
c o m p a r e d in the following t a b l e , d o l l a r a m o u n t s in b i l l i o n s .
Increase, or
decrease (-)
Individual income teix
Corporation income and excess profits taxes
• 32.8
21.6
54.4
^ 9.9
Total income and excess profits taxes
Ixcise taxes^
Instate and g i f t taxes
32.4
21.5
53.9
10.0
.9
5.4
.6
2.3
»
Employment taxes
Customs
Miscellaneous receipts
Total budget receipts
Deduct:
Appropriation to Federal old-age and survivors insurance
trust fund
Appropriation to railroad retirement account
Refunds of receipts
4.1
.6
3.1
4.5
.6
3.4
6.0
8.9
()
*
11.0
- 2.7
8.3
Net budget receipts
Note.—Figures in this and two following tables based generally on raonthly stateraent (see exhibit 70 and
"Bases of Tables"). *Less than ^50 million. ^Estimated. Actual figures not available on basis of monthly
statement. ^No figures available for internal revenue receipts not otherwise classified in fiscal 1953. For
comparison, this category is included in excise taxes in fiscal 1954 in amount of |9 million.
8
1954 REPORT OF THE SECRETARY OF THE TREASURY
T h e r e was no significant change in r e c e i p t s f r o m any m a j o r t a x
g r o u p b e t w e e n 1953 and 1954.
Individual i n c o m e t a x e s . - - R e c e i p t s f r o m the individual i n c o m e
t a x a m o u n t e d to $32,383 m i l l i o n in the f i s c a l y e a r 1954, This was
$386 m i l l i o n , o r 1.2 p e r c e n t , l e s s than r e c e i p t s in 1953. While the
i n c o m e l e v e l s affecting f i s c a l y e a r 1954 r e c e i p t s w e r e s o m e w h a t
h i g h e r than those for 1953, this was m o r e than offset by the 10
p e r c e n t r e d u c t i o n in tax r a t e s effective J a n u a r y 1, 1954.
C o r p o r a t i o n i n c o m e and e x c e s s p r o f i t s taxe s.->-Re c e i p t s f r o m
this s o u r c e w e r e $21,523 m i l l i o n in the f i s c a l y e a r 1954, $72 m i l l i o n
l e s s than r e c e i p t s in 1953. Although the t o t a l d i f f e r e n c e s w e r e r e l a tively s m a l l t h e r e was c o n s i d e r a b l e v a r i a t i o n in the p r o f i t s u n d e r lying c o l l e c t i o n s d u r i n g t h e s e y e a r s ; p r o f i t s d r o p p e d s u b s t a n t i a l l y
in the c a l e n d a r y e a r 1952 f r o m 1951 l e v e l s and p a r t i a l l y r e c o v e r e d
in 1953. The effect of t h e s e changes on c o l l e c t i o n s was offset, h o w e v e r , by the continued a c c e l e r a t i o n of p a y m e n t s u n d e r the Revenue
Act of 1950.
E x c i s e t a x e s . - - R e c e i p t s f r o m t a x e s c o m p r i s i n g the e x c i s e tax
c a t e g o r y a r e shown in the table which follows.
1953
Increase, or
decrease (-)
1954
Source
Amount _
,
Percent
In millions of dollars
^ 2,797
^ 1,655
90
2 2,859
496
2,061
^ 2,798
1 1,581
90
2 2,692
438
1,937
-
(*)
1
74
()
*
-
4.5
.4
- 168
- 58
- 124
- 5.9
- 11.6
- 6.0
-
9,958
9,536
- 423
- 25
+ 488
9,934
10,024
90
4.2
cfe 513
Adjustment to monthly statement of receipts and expendi-
.9
»Less than $500,000, or less than .05 percent.
^ Inclxides taxes on manufactured products from Puerto Rico.
^ Includes taxes on firearms, shells, and cartridges, and on fishing rods and creels.
• No figures are available for Internal revenue receipts not otherwise classified in the fiscal year 1953.
^
For purposes of comparison, this category. In the amount of t9 million, has been included in excise taxes
In the fiscal year 1954.
E x c i s e t a x r e c e i p t s of $10,024 m i l l i o n in the f i s c a l y e a r 1954
w e r e $90 m i l l i o n o r 0,9 p e r c e n t o v e r 1953, The i n c r e a s e in the
c o n s u m p t i o n of taixable goods and s e r v i c e s d u r i n g this p e r i o d m o r e
than offset l o s s e s t o w a r d the end of the f i s c a l y e a r which a r o s e
f r o m the r a t e r e d u c t i o n s i n c o r p o r a t e d in the E x c i s e T a x Reduction
Act of 1954 ( P u b l i c Law 324, a p p r o v e d M a r c h 3 1 , 1954), T h i s a c t
extended for one y e a r the h i g h e r r a t e s p r o v i d e d in the Revenue Act
of 1951, which had b e e n due to r e t u r n to p r e v i o u s l e v e l s on A p r i l 1,
1954, Alcohol, t o b a c c o , a u t o m o t i v e p r o d u c t s , and m o t o r fuels w e r e
affected by the e x t e n s i o n . H o w e v e r , s u b s t a n t i a l tax r a t e r e d u c t i o n s
w e r e m a d e in m a n y of the o t h e r e x c i s e t a x e s ; a m o n g the m o r e
i m p o r t a n t of t h e s e w e r e h o u s e h o l d a p p l i a n c e s , the r e t a i l e r s * e x c i s e
tax g r o u p , a d m i s s i o n s , c o m m u n i c a t i o n s , and t r a n s p o r t a t i o n of p e r s o n s . T h e s e r e d u c t i o n s w e r e effective A p r i l 1, 1954,but b e c a u s e of
the l a g in r e c e i p t s only June r e c e i p t s w e r e m a t e r i a l l y affected.
R E P O R T ON FISCAL OPEFIATIONS
9
Beginning July 1, 1953, t h e r e was a change in the m e t h o d of p a y m e n t and of filing tax r e t u r n s for the t a x e s included in the m a n u f a c t u r e r s ' , r e t a i l e r s ' , and m i s c e l l a n e o u s g r o u p s ^ with the r e s u l t t h a t
the amiounts shown for t h e s e g r o u p s , and for the individual t a x e s in
the g r o u p s , for the f i s c a l y e a r 1954 u n d e r s t a t e c a s h r e c e i p t s f r o m
t h e s e t a x e s . It will be noted t h a t t h e r e is a s u b s t a n t i a l p o s i t i v e a d j u s t m e n t b e t w e e n the additive total of the 1954 a m o u n t s shown by
t a x g r o u p s and the r e c e i p t s of total e x c i s e t a x e s .
R e c e i p t s f r o m a l c o h o l , t o b a c c o , and s t a m p t a x e s w e r e not affected
by the changed r e g u l a t i o n s .
E s t a t e and gift t a x e s . - - E s t a t e and gift t a x e s a m o u n t e d to $945
m i l l i o n in the fiscal y e a r 1954, an i n c r e a s e of $54 m i l l i o n o v e r
r e c e i p t s of $891 m i l l i o n in the f i s c a l y e a r 1953.
E m p l o y m e n t t a x e s . - - T h e yield of the v a r i o u s e m p l o y m e n t t a x e s
i s shown in the table which follows.
Increase, or
decrease (-)
1953
1954
Source
Amount
Percent
In millions of iollars'
Federal Insurance Contributions Act
Railroad Retirement Tax Act
Federal Unemployment Tax Act
4,086
620
277
4,537
603
285
451
- 17
9
11.0
- 2.7
Total employment taxes
Deduct:
Appropriation to Federal old-age and survivors insurance
trust fund
4,983
5,425
443
8.9
4,086
620
4,537
603
451
- 17
11.0
- 2.7
277
285
9
3.1
Net eraployment taxes
3.1
R e c e i p t s f r o m all e m p l o y m e n t t a x e s e x c e p t the R a i l r o a d R e t i r e m e n t Tax^ Act i n c r e a s e d in the f i s c a l y e a r 1954, reflecting h i g h e r
l e v e l s of taxable w a g e s and in the c a s e of the F e d e r a l I n s u r a n c e
C o n t r i b u t i o n s Act the h i g h e r r a t e s effective J a n u a r y 1, 1954. R e c e i p t s f r o m the R a i l r o a d R e t i r e m e n t Tax Act d e c r e a s e d a s a r e s u l t
of l o w e r taxable w a g e s .
i p o r taxes shown in the manufacturers', retailers*, and miscellaneous groups, tax liabilities for
periods prior to July 1, 1953, were paid for each month on the last day of the succeeding month.
Monthly tax returns specifying the particular tax being paid were filed with the cash payment. Since
that date taxpayers whose monthly excise tax liabilities exceed $100 have been required to make
monthly payments at Government depositaries and to file quarterly tax returns with the Internal
Revenue Service. At the time of the monthly payment the specific tax is not designated and it is not
until quarterly returns haveobeen filed that such designation is made. The monthly cash payment is
reported in the "Monthly Statement of Receipts and Expenditures ofthe United States Government"
under "Excise taxes." The tax returns are the basis of the "collections" for specific taxes as
reported by the Internal Revenue Service and shown in the preceding table. Since these quarterly
tax returns ?.re due on the last day of the month following the end of the quarter, the reports of the
Internal Revenue Service for the fiscal year 1954 include omy three quarterly returns. The monthly
system in effect prior to July 1, 1953, resulted in a lag of about two months* collections from the
time of liability to the time of cash receipt and recording of the tax return. For excise taxpayers
with liabilities exceeding $100 monthly, the effect of the change in the payment and reporting system
in the fiscal year 1954 is that the data for specific taxes reflect liabilities for only eleven months,
although cash payments are based on tax liabilities for twelve months.
The tax returns and payments of taxpayers with monthly liabilities of less than $100 are shown on
a quarterly basis and the amount of "collections** and receipts for such taxpayers in the fiscal year
1954 are the same and represent about eleven months* liabilities.
10
1954 REPORT OF THE SECRETARY OF THE TREASURY
C u s t o m s . - - C u s t o m s r e c e i p t s w e r e $562 m i l l i o n i n t h e f i s c a l y e a r
1954, a d e c r e a s e of $51 n n i l l i o n f r o m r e c e i p t s of $613 m i l l i o n in the
f i s c a l y e a r 1953.
M i s c e l l a n e o u s r e c e i p t s . - - M i s c e l l a n e o u s r e c e i p t s in the f i s c a l
y e a r 1954 a m o u n t e d to $2,311 m i l l i o n , an i n c r e a s e of $447 nnillion
o v e r r e c e i p t s in the p r e v i o u s y e a r . M o s t of this i n c r e a s e a r o s e
f r o m changes in the accounting for c e r t a i n f o r e i g n c u r r e n c i e s a c q u i r e d by the United S t a t e s without p u r c h a s e with d o l l a r s . P u r s u a n t
to p r o v i s i o n s of new l e g i s l a t i o n (66 Stat, 662 and 67 Stat. 438), after
June 30, 1953, executive d e p a r t m e n t s and a g e n c i e s of the G o v e r n m e n t , with a few e x c e p t i o n s , w e r e r e q u i r e d to r e i m b u r s e the
T r e a s u r y in d o l l a r s for the foreign c u r r e n c i e s they u s e ; w h e r e a s
p r e v i o u s l y they g e n e r a l l y had b e e n pernnitted in s u b s t a n t i v e l e g i s l a tion to u s e m o s t of such c u r r e n c i e s without c h a r g e to t h e i r d o l l a r
a p p r o p r i a t i o n s . The r e i m b u r s e m e n t s to the T r e a s u r y a r e c r e d i t e d
to m i s c e l l a n e o u s r e c e i p t s . (See a l s o A d m i n i s t r a t i v e , R e p o r t s , Bur e a u of A c c o u n t s , *'Control of foreign c u r r e n c i e s . " )
Refunds of r e c e i p t s . - - R e f u n d s of r e c e i p t s a m o u n t e d to $3,377
m i l l i o n in the f i s c a l y e a r 1954, an i n c r e a s e of $259 m i l l i o n o v e r
the refunds of $3,118 m i l l i o n in the f i s c a l y e a r 1953.
Estimates of Receipts in 1955 and 1956
The S e c r e t a r y of the T r e a s u r y i s r e q u i r e d e a c h y e a r to p r e p a r e
and s u b m i t in h i s annual r e p o r t to the C o n g r e s s e s t i m a t e s of the
public r e v e n u e for the c u r r e n t f i s c a l y e a r and for the f i s c a l y e a r
next e n s u i n g (act of F e b r u a r y 26, 1907 (34 Stat, 949)). The e s t i m a t e s
of r e c e i p t s f r o m t a x e s and c u s t o i n s for the c u r r e n t and ensuing
f i s c a l y e a r s a r e p r e p a r e d in D e c e m b e r of e a c h y e a r by the T r e a s u r y
D e p a r t m e n t . In g e n e r a l , the e s t i m a t e s of m i s c e l l a n e o u s r e c e i p t s
a r e p r e p a r e d by the a g e n c y depositing the r e c e i p t s in the T r e a s u r y .
In a c c o r d a n c e with the p r a c t i c e of p r e v i o u s y e a r s , the following
d i s c u s s i o n d e a l s only with e s t i m a t e s b a s e d on e x i s t i n g l e g i s l a t i o n .
The e s t i m a t e s a s s u m e a r i s e in b u s i n e s s a c t i v i t y , p e r s o n a l i n c o m e ,
and c o r p o r a t e p r o f i t s .
A c t u a l budget r e c e i p t s a m o u n t e d to $ 6 4 , 6 5 5 m i l l i o n iri the f i s c a l
y e a r 1954. E s t i m a t e d r e c e i p t s in 1955 and 1956 a r e e x p e c t e d to
decline to $58,810 m i l l i o n and $57,737 m i l l i o n , r e s p e c t i v e l y , p r i n cipally b e c a u s e of the g r e a t l y e n l a r g e d r e v e n u e effectof changes in
tax l a w s . The effect of the a c r o s s - t h e - b o a r d re.duction in individual
i n c o m e t a x r a t e s effective J a n u a r y 1, 1954, w i l l b e m u c h g r e a t e r in
f i s c a l y e a r s 1955 and 1956 than in the f i s c a l y e a r 1954, The t e r m i nation of the e x c e s s p r o f i t s t a x on J a n u a r y 1, 1954, which had no
a p p r e c i a b l e effect in the f i s c a l y e a r 1954, r e d u c e s r e c e i p t s f r o m
this s o u r c e to a s m a l l a m o u n t i n t h e f i s c a l y e a r 1955 and to a n e g l i gible a m o u n t in 1956, The E x c i s e Tax R e d u c t i o n A c t of 1954, effective A p r i l 1, 1954, did not h a v e an a p p r e c i a b l e effect on r e c e i p t s
in the f i s c a l y e a r 1954, but r e c e i p t s in the fi-scal y e a r s 1955 and
1956 will r e f l e c t the full effect of this l e g i s l a t i o n . The f i s c a l y e a r
1955 will be the f i r s t y e a r affected by the g e n e r a l r e v i s i o n of the
I n t e r n a l Revenue Code e n a c t e d in 1954.
11
REPORT ON FISCAL OPEFMTIONS
O t h e r f a c t o r s will r e d u c e r e c e i p t s in the f i s c a l y e a r 1956 b e l o w
f i s c a l y e a r 1955 l e v e l s . R e d u c t i o n s in-the c o r p o r a t i o n i n c o m e t a x
and c e r t a i n e x c i s e t a x e s on A p r i l 1, 1955, a r e s c h e d u l e d u n d e r
p r e s e n t l a w . R e c e i p t s f r o m the c o r p o r a t i o n i n c o m e t a x in f i s c a l y e a r
1956 will not be a u g m e n t e d by the s p e e d u p in p a y m e n t s affecting
r e c e i p t s in the i m m e d i a t e l y p r e c e d i n g five y e a r s u n d e r the Revenue
Act of 1950.
F i s c a l y e a r 1955
A c t u a l r e c e i p t s in the f i s c a l y e a r 1954 and e s t i m a t e d r e c e i p t s in
the f i s c a l y e a r 1955 a r e c o m p a r e d b y m a j o r s o u r c e s in the following
table.
1954 actual
1955 estimate
Increase, or
decrease (-)
In millions of dollars
Individual income tax
;
Corporation Incorae and excess profits taxes...•
Excise taxes
Eraployment taxes
Estate and gift taxes.,
Customs
Internal revenue not otherwise classified
Miscellaneous receipts
,
Total budget receipts
.
•
Deduce.
(a) Transfer to Federal old-age and survivors insurance trust
fund
(b) Transfer to railroad retirement account
(c) Refunds of receipts
Net budget receipts
32,383
21,523
10,014
5,425
•945
562
9
2,311
30,700
18,466
8,883
6,080
930
570
73,173
67.931
4,537
603
3,377
5,190
600
3,331
653
-3
-46
58,810
-5,845
2,302
-1,683
-3,057
-1,131
655
-15
8
-9
-9
S u b s t a n t i a l d e c l i n e s in r e c e i p t s f r o m the m o s t i n i p o r t a n t r e v e n u e
s o u r c e s a r e e s t i m a t e d in the f i s c a l y e a r 1955. E m p l o y m e n t t a x e s
p r o v i d e the only s u b s t a n t i a l i n c r e a s e in r e c e i p t s in 1955 but t h i s
i n c r e a s e does not c a r r y t h r o u g h to net budget r e c e i p t s s i n c e the
m a j o r p o r t i o n of e m p l o y m e n t t a x c o l l e c t i o n s is t r a n s f e r r e d to t r u s t
funds.
Individual i n c o m e t a x . - - R e c e i p t s f r o m the individual i n c o m e t a x
a r e e s t i m a t e d to be $30,700 m i l l i o n in t h e f i s c a l y e a r 1955. This is
a d e c r e a s e of $ 1 , 6 8 3 m i l l i o n f r o m a c t u a l r e c e i p t s in the f i s c a l y e a r
1954. The effects of the a c r o s s - t h e - b o a r d r e d u c t i o n in t a x r a t e s
c o m m e n c i n g J a n u a r y 1, 1954, a n d t h e g e n e r a l revisiori of the I n t e r n a l
R e v e n u e Code a r e m u c h g r e a t e r than the i n c r e a s e r e s u l t i n g f r o m
the r i s e in i n c o m e s affecting r e c e i p t s in the f i s c a l y e a r 1955 o v e r
the l e v e l s u n d e r l y i n g 1954 r e c e i p t s .
C o r p o r a t i o n i n c o m e and e x c e s s p r o f i t s t a x e s . - - A decline is a n t i c i p a t e d in c o r p o r a t i o n t a x r e c e i p t s in the f i s c a l y e a r 1955. C o r p o r a t e t a x r e c e i p t s in the f i s c a l y e a r 1955 will be l a r g e l y d e t e r m i n e d
by p r o f i t s in the c a l e n d a r y e a r 1954, which a r e e s t i m a t e d to be
s u b s t a n t i a l l y l e s s than in 1953. The t e r m i n a t i o n of the e x c e s s
p r o f i t s t a x will h a v e a significant effect on r e c e i p t s in the f i s c a l
y e a r 1955 and the i n i t i a l r e y e n u e r e d u c t i o n u n d e r the c o r p o r a t i o n
p r o v i s i o n s of the g e n e r a l r e v i s i o n of the I n t e r n a l Revenue Code
o c c u r s in 1955. The c o m b i n e d effect of t h e s e f a c t o r s i s to r e d u c e
c o r p o r a t i o n i n c o m e and e x c e s s p r o f i t s t a x r e c e i p t s f r o m $21,523
m i l l i o n in the f i s c a l y e a r 1954 to $18,466 m i l l i o n in 1955.
12
1954 REPORT OF THE SECRETARY OF THE TREASURY
E x c i s e t a x e s . - - R e c e i p t s f r o m this s o u r c e , by m a j o r g r o u p s , a r e
l i s t e d in the table below.
1954 actual 1955 estimate
Increase, or
decrease (-)
In millions of dollars
Alcohol taxes
Tobacco taxes
stamp taxes
Manufacturers' excise taxes,
Retailers' excise taxes
Miscellaneous excise taxe^
Unclassified depositary receipts
2,798
1,581
90
2,692
438
1,937
479
-129
-40
7
73
-131
-433
-479
10,014
Total excise taxes
2,669
1,541
97
2,765
307
1,504
8,883
-1,131
E x c i s e t a x reiceipts in the f i s c a l y e a r 1955 a r e e s t i m a t e d to
a m o u n t to $8,883 m i l l i o n . This i s a d e c r e a s e of $1,131 m i l l i o n
f r o m 1954 r e c e i p t s of $10,014 m i l l i o n . The f u l l - y e a r effect in the
f i s c a l y e a r 1955 of the E x c i s e Tax Reduction Act of 1954 plus the
effect of r e d u c t i o n s s c h e d u l e d to take effect A p r i l 1, 1955, u n d e r
p r e s e n t l a w , a r e p r i m a r i l y r e s p o n s i b l e for the d e c r e a s e in r e c e i p t s .
The a m o u n t s r e p o r t e d in d e t a i l e d t a b l e 7 and in the group t o t a l s
in the p r e c e d i n g table u n d e r s t a t e the r e v e n u e in the f i s c a l y e a r 1954
f r o m individual t a x e s in the m a n u f a c t u r e r s * , r e t a i l e r s ' , and m i s c e l l a n e o u s e x c i s e tax g r o u p s . Beginning July 1, 1953, the bulk of
t h e s e t a x e s h a s b e e n paid m o n t h l y by d i r e c t d e p o s i t s by t a x p a y e r s
in F e d e r a l R e s e r v e Banks and c o m m e r c i a l b a n k s d e s i g n a t e d a s
G o v e r n m e n t d e p o s i t a r i e s . At the t i m e of d e p o s i t the t a x p a y e r i n d i c a t e s a l i a b i l i t y u n d e r the g e n e r a l c a t e g o r y of e x c i s e t a x e s . Tax
r e t u r n s showing the specific tax o r t a x e s for which liability h a s
b e e n i n c u r r e d (and in m o s t c a s e s p a y m e n t a l r e a d y m a d e ) a r e filed
q u a r t e r l y with d i r e c t o r s of i n t e r n a l r e v e n u e . T h e s e q u a r t e r l y t a x
r e t u r n s a r e the b a s i s of the a m o u n t s r e p o r t e d for specific t a x e s
in the m a n u f a c t u r e r s * , r e t a i l e r s ' , and m i s c e l l a n e o u s e x c i s e t a x
g r o u p s . In the f i r s t y e a r of o p e r a t i o n of t h i s s y s t e m , the f i s c a l y e a r
1954, the lag b e t w e e n t i m e of p a y m e n t and filing of tax r e t u r n s
r e s u l t e d in an u n d e r s t a t e m e n t of r e v e n u e s a l l o c a t e d to specific
t a x e s . The m a g n i t u d e of this u n d e r s t a t e m e n t i s i n d i c a t e d by the
amount designated as unclassified depositary r e c e i p t s .
E m p l o y m e n t t a x e s . - - T h e yield of the e m p l o y m e n t t a x e s i s shown
in the following t a b l e .
Source
1954 actual
•
-
1955 estimate
Increase, or
decrease (-)
In millions of dollars :
•
...•
Deduct:
(a) Transfer to Federal old-age and survivors inaxirance trust
fund
4,537
285
603
5,190
290
600
653
5
-3
5,425.
Railroad Retirement Tax Act
6,080
655
4,537
603
5,190
600
653
-3
285
290
5
13
REPORT ON FISCAL OPERATIONS
Receipts from the F e d e r a l Insurance Contributions Act a r e e s t i m a t e d to a m o u n t to $5,190 million in the fiscal y e a r 1955. This is
a n a d d i t i o n of $ 6 5 3 m i l l i o n t o a c t u a l r e c e i p t s i n t h e p r e c e d i n g y e a r .
T h e f u l l y e a r e f f e c t of t h e i n c r e a s e i n t a x r a t e f r o m 1 - 1 / 2 t o 2 p e r c e n t e a c h o n e m p l o y e r s a n d e m p l o y e e s , e f f e c t i v e J a n u a r y 1, 1 9 5 4 , i s
m a i n l y r e s p o n s i b l e . It m a y b e n o t e d , h o w e v e r , t h a t o n l y t h e F e d e r a l
Unemployment Tax Act i n c r e a s e c a r r i e s through to net budget
receipts.
E s t a t e a n d g i f t t a x e s . - - R e c e i p t s f r o m e s t a t e a n d gift t a x e s a r e
e s t i m a t e d to b e $930 m i l l i o n in the fiscal y e a r 1955, a slight d e c r e a s e f r o m actual r e c e i p t s in 1954.
C u s t o m s . - - T h e e s t i m a t e of r e c e i p t s f r o m c u s t o m s i n t h e f i s c a l
y e a r 1955 i s $570 m i l l i o n , slightly above the a m o u n t collected in
the fiscal y e a r 1954.
M i s c e l l a n e o u s r e c e i p t s . - - N o a p p r e c i a b l e c h a n g e f r o m 1954 l e v e l s
is expected in the fiscal y e a r 1955.
R e f u n d s of r e c e i p t s . - - R e f u n d s of r e c e i p t s i n t h e f i s c a l y e a r 1 9 5 5 ,
e s t i m a t e d at $ 3 , 3 3 r m i l l i o n , d e c r e a s e slightly from actual refunds
in t h e f i s c a l y e a r 1954.
. F i s c a l y e a r 1956
E s t i m a t e d r e c e i p t s in t h e f i s c a l y e a r s 1955 a n d 1956 a r e c o m p a r e d by m a j o r s o u r c e s in the following t a b l e .
1955 estimate 1956 estimate Increase, or
decrease ( )
In millions of dollars
Individual income tax
Corporation income and excess profits taxes
Excise taxes
Employment taxes
Estate and gift taxes
Customs
Miscellaneous receipts
30,700
18,466
8,883
6,080
930
570
2,302
32,500
15,984
8,328
7,095
970
570
2,486
Total budget, receipts
Deduct: (a) Transfer to Federal old-age and survivors insurance trust
fund
(b) Transfer to railroad retirement account
(c) Refunds of receipts
•
67,931
67,933
5,190
600
3,331
6,175
625
3,396
1,800
-2,482
-555
1,015
40
985
25
65
Net budget receipts
Net b u d g e t r e c e i p t s in the f i s c a l y e a r 1956 a r e e s t i m a t e d to
a m o u n t to $ 5 7 , 7 3 7 m i l l i o n . T h i s i s a d e c r e a s e of $ 1,073 m i l l i o n
f r o m the e s t i m a t e for the f i s c a l y e a r 1955. R e c e i p t s f r o m the i n d i vidual i n c o m e t a x a r e e x p e c t e d to i n c r e a s e but t h i s i s m o r e t h a n
offset by the l a r g e d e c r e a s e s e s t i m a t e d for r e c e i p t s f r o m the
c o r p o r a t i o n i n c o m e t a x and e x c i s e t a x e s .
Individual i n c o m e t a x . - - R e c e i p t s f r o m the individual i n c o m e t a x
a r e e s t i m a t e d to be $ 3 2 , 5 0 0 m i l l i o n in the f i s c a l y e a r 1956, $ 1 , 8 0 0
m i l l i o n m o r e than the a m o u n t e s t i m a t e d for the f i s c a l y e a r 1955,
r e f l e c t i n g the e x p e c t e d r i s e in i n c o m e l e v e l s .
C o r p o r a t i o n i n c o m e and e x c e s s p r o f i t s t a x e s . - - R e c e i p t s f r o m
c o r p o r a t e i n c o m e t a x a t i o n a r e e s t i m a t e d to a m o u n t t o $15,984
m i l l i o n in the f i s c a l y e a r 1956, $2,482 m i l l i o n l e s s than e s t i m a t e d
339256
0-55-3
14
1954 REPORT OF THE SECRETARY OF THE TREASURY
r e c e i p t s in the f i s c a l y e a r 1 9 5 5 . R e c e i p t s in t h e fiscal y e a r 1956
will be s u b s t a n t i a l l y d e t e r m i n e d by c o r p o r a t e profits in the c a l e n d a r
y e a r 1955; while profits in the c a l e n d a r y e a r 1955 a r e e x p e c t e d to
i n c r e a s e a p p r e c i a b l y o v e r the 1954 l e v e l , t a x r e c e i p t s in the fiscal
y e a r 1956 will b e r e d u c e d b y t h e s c h e d u l e d five p e r c e n t a g e - p o i n t
d r o p i n t h e c o r p o r a t i o n n o r m a l t a x , e f f e c t i v e A p r i l 1, 1 9 5 5 .
An additional explanatory factor in the p r o j e c t e d 1955-56 drop in
c o r p o r a t e t a x r e c e i p t s i s t h e t e r m i n a t i o n of t h e t e m p o r a r y i n c r e a s e
in fiscal y e a r r e c e i p t s r e s u l t i n g f r o m the y e a r - b y - y e a r a c c e l e r a t i o n
of c o r p o r a t i o n i n s t a l l m e n t p a y m e n t s r e q u i r e d u n d e r t h e R e v e n u e
A c t of 1 9 5 0 . T h i s a c c e l e r a t i o n t e r m i n a t e s , f o r m o s t c o r p o r a t e
t a x p a y e r s , i n t h e f i s c a l y e a r 1 9 5 5 . In t h a t y e a r , c a l e n d a r y e a r
c o r p o r a t i o n s will p a y t h e i r 1954 l i a b i l i t i e s i n t w o e q u a l i n s t a l l m e n t s ,
b o t h of w h i c h f a l l i n t h e s a m e f i s c a l y e a r . P r i o r t o t h e r e q u i r e m e n t s
of t h e 1 9 5 0 a c t , t a x l i a b i l i t i e s w e r e p a i d i n f o u r i n s t a l l m e n t s
d i v i d e d e q u a l l y b e t w e e n t w o f i s c a l y e a r s . T h e e f f e c t of t h e 1 9 5 0 a c t ,
f o r c a l e n d a r y e a r c o r p o r a t i o n s , w a s t o m o v e f o r w a r d i n t i m e 10
p e r c e n t of p a y m e n t s i n e a c h of t h e f i s c a l y e a r s 1 9 5 1 t h r o u g h 1 9 5 5 ,
A c c e l e r a t i o n of c o r p o r a t e t a x p a y m e n t s i s c o n t i n u e d b y t h e I n t e r n a l R e v e n u e C o d e of 1 9 5 4 , H o w e v e r , i n c o n t r a s t t o thfe 1 9 5 0
R e v e n u e A c t , t h e a c c e l e r a t i o n of p a y m e n t s u n d e r t h e 1 9 5 4 a c t w i l l
not i n c r e a s e fiscal y e a r r e c e i p t s a p p r e c i a b l y since the p a y m e n t s
of c a l e n d a r y e a r c o r p o r a t i o n s w h i c h c o m p r i s e m o s t of t h e c o r p o r a t e group will continue to be m a d e in the s a m e fiscal y e a r .
C o r p o r a t i o n s w i l l b e r e q u i r e d t o m a k e p a y m e n t s of e s t i m a t e d
t a x e s d u r i n g t h e c u r r e n t t a x l i a b i l i t y y e a r . T h e s e p a y m e n t s of e s t i m a t e d t a x will i n c r e a s e g r a d u a l l y beginning in the f i s c a l y e a r 1956
u n t i l c o r p o r a t i o n s a r e a g a i n p a y i n g f o u r e q u a l i n s t a l l m e n t s . In t h e
fiscal y e a r I960, c a l e n d a r y e a r c o r p o r a t i o n s will be r e q u i r e d to
p a y t h e i r c a l e n d a r y e a r 1959 l i a b i l i t y in four e q u a l i n s t a l l m e n t s - - i n
S e p t e m b e r a n d D e c e m b e r 1959 a n d M a r c h a n d J u n e I 9 6 0 .
Excise t a x e s . - - R e c e i p t s from this source by major groups a r e
l i s t e d in the following table.
Increase, or
1955 estimate 1956 estimate decrease ( )
-
Source
In millions of dollars
Alcohol taxes
Tobacco taxes
Steunp taxes
Manufacturers ' excise taxes
Retailers' excise taxes
Miscellaneous excise 'taxes
Total excise taxes
2,669
1,541
97
2,765
307
1,504
;'.
;.;
2,622
1,443
97
2,300
31?
1,547
-465
12
43
8,883
8,328
-555
-47
-98
E x c i s e t a x e s a s a g r o u p r e f l e c t an e x p e c t e d i n c r e a s e in the c o n s u m p t i o n of t a x a b l e goods and s e r v i c e s . H o w e v e r , d e c r e a s e s in t h e
f i s c a l y e a r 1956 a r e e s t i m a t e d for the a l c o h o l , t o b a c c o , and m a n u f a c t u r e r s ' e x c i s e c a t e g o r i e s b e c a u s e of s c h e d u l e d r a t e r e d u c t i o n s
for c e r t a i n t a x e s , effective A p r i l 1, 1955.
E m p l o y m e n t t a x e s . - - T h e d e t a i l of the y i e l d s o f t h e e m p l o y m e n t
t a x e s i s shown in the t a b l e which f o l l o w s .
REPORT ON FISCAL OPERATIONS
15
1955 estimate 1956 estimate J ^ " a B e ' ( - ^
[ In millions of dollars ]
Federal Insiirance Contributions Act
Federal Unemployment Tax Act
Railroad Retirement Tax Act
Total employment taxes
Deduct:
(a) Transfer t o Federal old-tige emd sxirvlvoTB Insiirance t r u s t
fund
(b) Transfer to railroad retirement account
5,190
290
600
6,175
295
625
1,015
5,190
600
6,175
625
Net employment taxes
The largie i n c r e a s e in r e c e i p t s f r o m the F e d e r a l I n s u r a n c e Cont r i b u t i o n s A c t r e f l e c t s a n i n c r e a s e in c o v e r a g e and an i n c r e a s e in
the m a x i m u m a m o u n t s s u b j e c t to t a x f r o m $3,600 to $4,200 a y e a r ,
a s well a s r i s i n g i n c o m e l e v e l s .
E s t a t e a n d gift t a x e s . - - R e c e i p t s f r o m e s t a t e a n d gift t a x e s a r e
e s t i m a t e d to b e $970 m i l l i o n i n t h e f i s c a l y e a r 1956, This r e p r e s e n t s a s m a l l i n c r e a s e o v e r the a m o u n t e s t i m a t e d for the f i s c a l
y e a r 1955.
C u s t o m s . - - C u s t o m s r e c e i p t s a r e e s t i m a t e d to be $570 m i l l i o n in
the f i s c a l y e a r 1956, u n c h a n g e d f r o m f i s c a l y e a r 1955.
Miscellaneous receipts.--Miscellaneous receipts a r e estimated
to r i s e slightly t o $2,486 m i l l i o n i n the f i s c a l y e a r 1956.
Refunds of r e c e i p t s . - - R e f u n d s of r e c e i p t s a r e e s t i m a t e d to a m o u n t
to $ 3 , 3 9 6 niillion in t h e f i s c a l y e a r 1956. This i s an i n c r e a s e of
$65 m i l l i o n above t h e e s t i m a t e for t h e p r e v i o u s y e a r .
Budget Expenditures in 1954
Budget e x p e n d i t u r e s in t h e f i s c a l y e a r 1954 a m o u n t e d to $67.8
b i l l i o n , a r e d u c t i o n of $ 6 . 5 billion f r o m the p o s t - W o r l d W a r II peak
of $ 7 4 . 3 billion in t h c f i s c a l y e a r 1953. E x p e n d i t u r e s in t h e y e a r s
following World W a r II, with 1947 t h r o u g h 1950 shown a s an a v e r a g e ,
a r e given in t h e following t a b l e . D e t a i l s of t h e s e f i g u r e s , including
t h o s e for e a r l i e r y e a r s , a r e shown in t a b l e s 2, 3 , and 5 of the t a b l e s
s e c t i o n of t h i s r e p o r t .
National s e c u r i t y e x p e n d i t u r e s r e p r e s e n t e d 69 p e r c e n t of total
e x p e n d i t u r e s in 1954 c o m p a r e d with 68 p e r c e n t in 1953 a n d 66 p e r cent in 1952. A g g r e g a t e e x p e n d i t u r e s for the four m a j o r c a t e g o r i e s :
National s e c u r i t y , i n t e r n a t i o n a l a f f a i r s and f i n a n c e , i n t e r e s t cto the
public debt, and v e t e r a n s ' s e r v i c e s and b e n e f i t s , a c c o u n t e d for 87
p e r c e n t of t o t a l budget e x p e n d i t u r e s in 1954, c o m p a r e d with 85 p e r cent in 1953 a n d 86 p e r c e n t in 1952. T h e s e p e r c e n t a g e s show that
defense and d e f e n s e - r e l a t e d p r o g r a m s continue to constitute a v e r y
m a j o r s h a r e of the total b u d g e t .
E x p e n d i t u r e s f o r national s e c u r i t y w e r e $ 3 . 8 billion l e s s in 1954
than in 1953. Of this r e d u c t i o n $ 3 . 3 billion w a s a c c o u n t e d for by
m i l i t a r y a c t i v i t i e s of t h e D e p a r t m e n t of D e f e n s e . It w a s b r o u g h t
about by g r e a t e r e c o n o m i e s in o p e r a t i o n s , s u p p l y , and p e r s o n n e l ;
the r e e x a m i n a t i o n of m i l i t a r y p l a n s a n d o b j e c t i v e s ; and f u r t h e r
a d j u s t m e n t s of n e w p r o c u r e m e n t r e q u i r e m e n t s a n d stock l e v e l s
b a s e d on a r e a s s e s s m e n t of r e s e r v e a n d e q u i p m e n t n e e d s following
16
1954 REPORT OF THE SECRETARY OF THE TREASURY
Fiscal year
National
security^
International
affairs
and
finance
Interest
on the
public
debt
Veterans'
services
and
benefits
Other
Total^
In billions of dollars
1947-50 average
1951
1952
1953
1954
13.1
21.7
42.9
50.3
46.5
5.5
3.8
2.8
2.2
1.6
5.3
5.6
5.9
6.5
6.4
6.8
5.3
5.0
4.3
4.2
7.2
7.7
8.9
11.0
9.1
37.8
44.1
65.4
74.3
67.8
NOTE.—As the result of a study under the Joint Accounting Improvement Program by the Treasury Department,
Bureau of the Budget, and General Accounting Office, a fundamental change in reporting of budget results became effective during the fiscal year 1954. Previously daily Treasury statements had been the medium for
reporting budget transactions. Beginning with the month of February 1954, budget results.are reported in the
"Monthly Statement of Receipts and Expenditxires of the United States Government," on the basis of reports
from Government collecting and disbursing officers. Receipts are on a collection basis, i.e., when money is
received by collecting officers; expenditures are reported on a uniform basis of checks issued and cash payments made by disbursing officers. Figures shown in the preceding table for the full fiscal year 1954, as
well as those for 1953, are on the new reporting basis. Figures for earlier years are based upon daily
Treasury statements.
^ Includes principally military activities of the Defense Departraent, mutual military program, Atomic
Energy Coramission, and acquisition of strategic and critical materials under General Services Administration.
^ Transfers to the railroad retirement account, effective in the fiscal year 1954, are reported as deductions from receipts and not as budget expenditures as had been the previous practice. Figures for earlier
years are adjusted for purposes of comparison.
the end of h o s t i l i t i e s in K o r e a in July 1953. T h e r e w e r e r e d u c t i o n s
in e x p e n d i t u r e s in 1954 c o m p a r e d with 1953 involving n e a r l y all
m a j o r m i l i t a r y functions of the D e p a r t m e n t of Defense,, including
m i l i t a r y p e r s o n n e l , o p e r a t i o n and m a i n t e n a n c e , m a j o r p r o c u r e m e n t
and p r o d u c t i o n , and m i l i t a r y public w o r k s . E x p e n d i t u r e s for the
m u t u a l m i l i t a r y p r o g r a m and for a c q u i s i t i o n of s t r a t e g i c and c r i t i cal m a t e r i a l s w e r e r e d u c e d $.6 billion while A t o m i c E n e r g y C o m m i s s i o n outlays i n c r e a s e d $.1 b i l l i o n .
E x p e n d i t u r e s for i n t e r n a t i o n a l affairs and f i n a n c e , which include
e c o n o m i c and t e c h n i c a l a s s i s t a n c e u n d e r the Mutual S e c u r i t y A c t ,
D e p a r t m e n t of S t a t e , and net t r a n s a c t i o n s of the E x p o r t - I m p o r t
Bank, w e r e $.6 billion l e s s in 1954 than in 1953. Of this d e c r e a s e
$.5 b i l l i o n r e l a t e d to m u t u a l s e c u r i t y a c t i v i t i e s and $.1 billion
r e p r e s e n t e d r e d u c e d e x p e n d i t u r e s of the D e p a r t m e n t of S t a t e .
I n t e r e s t p a y m e n t s on the public debt a m o u n t e d to $6.4 billion in
1954, a r e d u c t i o n of $.1 billion u n d e r 1953, although the outstanding
public debt i n c r e a s e d $5.2 billion during the y e a r . The r e d u c t i o n in
i n t e r e s t e x p e n d i t u r e s was influenced by an u n u s u a l s i t u a t i o n in the
f i s c a l y e a r 1953 involving t i m i n g of i n t e r e s t p a y m e n t s . This g r e w
out of c h a n g e s in i n t e r e s t p a y m e n t p r o v i s i o n s b e t w e e n c e r t a i n
m a t u r i n g s e c u r i t i e s and the new s e c u r i t i e s i s s u e d in exchange for
t h e m . O v e r $15 billion of c e r t i f i c a t e s of i n d e b t e d n e s s , o n w h i c h
n e a r l y a y e a r ' s i n t e r e s t was p a i d a t m a t u r i t y in 1953, w e r e refunded
into s e c u r i t i e s on which i n t e r e s t p a y m e n t s for 6 m o n t h s o r m o r e
w e r e m a d e in June 1953. T h e r e f o r e , about 20 m o n t h s ' i n t e r e s t on
this p o r t i o n of the debt was paid in the f i s c a l y e a r 1953. E x c e p t for
t h i s , i n t e r e s t p a y m e n t s in 1954 would h a v e b e e n $.1 billion m o r e
than in 1953. G e n e r a l l y i n t e r e s t p a y m e n t s for a y e a r l a g behind a
change in debt during the y e a r , depending upon the types of new
securities issued.
E x p e n d i t u r e s for v e t e r a n s ' s e r v i c e s and benefits u n d e r the V e t e r a n s ' A d m i n i s t r a t i o n a m o u n t e d to $4.2 b i l l i o n in 1954, a d e c r e a s e
REPORT ON FISCAL OPERATIONS
17
of $ . 1 b i l l i o n u n d e r 1 9 5 3 . T h i s r e d u c t i o n w a s m o r e t h a n a c c o u n t e d
for by s m a l l e r outlays for e d u c a t i o n and t r a i n i n g and o t h e r a d j u s t m e n t b e n e f i t s , although t h e r e w e r e m i n o r i n c r e a s e s in c o m p e n s a t i o n
a n d p e n s i o n s a n d i n h o s p i t a l a n d m e d i c a l c a r e . T h e r e a r e n o w 21
m i l l i o n v e t e r a n s in o u r p o p u l a t i o n , five t i m e s the n u m b e r b e f o r e
W o r l d W a r II.
M a j o r d e t a i l s of e x p e n d i t u r e s o t h e r t h a n t h o s e d i s c u s s e d i n t h e
p r e c e d i n g p a r a g r a p h s a r e shown in the following t a b l e . T h e s e i n c l u d e t h e r u n n i n g e x p e n s e s of t h e F e d e r a l G o v e r n m e n t , e x p e n d i t u r e s
for other d o m e s t i c p r o g r a m s , and s o m e expenditures
closely
r e l a t e d to the national s e c u r i t y for which f i g u r e s a r e not r e a d i l y
s e p a r a b l e f r o m t h e n o r m a l o p e r a t i n g e x p e n s e s of v a r i o u s a g e n c i e s .
T h e 1 9 5 4 t o t a l of $ 9 . 1 b i l l i o n i s $ 1 . 9 b i l l i o n l e s s t h a n t h e t o t a l f o r
1953. T h i s d e c r e a s e was s p r e a d a m o n g s e v e r a l c a t e g o r i e s , but p r i n c i p a l l y i n v o l v e d a n e t d e c r e a s e of $ 1.0 b i l l i o n i n " h o u s i n g a n d c o m mimity d e v e l o p m e n t , " which resulted from the F e d e r a l National
M o r t g a g e A s s o c i a t i o n ' s a c c e l e r a t e d p r o g r a m of m o r t g a g e s a l e s a n d
r e p a y m e n t of a d v a n c e s b y l o c a l h o u s i n g a u t h o r i t i e s t o t h e P u b l i c
Housing. A d m i n i s t r a t i o n . E x p e n d i t u r e s for " a g r i c u l t u r e and a g r i c u l t u r a l r e s o u r c e s " w e r e d o w n b y $ . 3 b i l l i o n g r o w i n g o u t of a n e t
r e d u c t i o n i n e x p e n d i t u r e s of t h e C o m m o d i t y C r e d i t C o r p o r a t i o n f r o m
$ 1 . 9 b i l l i o n i n 1 9 5 3 t o $ 1,5 b i l l i o n i n 1 9 5 4 . T h i s r e f l e c t e d t h e s a l e of
a b o u t $ 1 . 1 b i l l i o n of c e r t i f i c a t e s of i n t e r e s t b y C o m m o d i t y C r e d i t
C o r p o r a t i o n d u r i n g t h e f i s c a l y e a r 1954 a g a i n s t a n a t i o n w i d e p o o l
of c r o p l o a n s , w h i c h i n c r e a s e d t h e p a r t i c i p a t i o n b y b a n k s i n t h e
c r o p loan p r o g r a m and gave t e m p o r a r y a s s i s t a n c e to the T r e a s u r y
in s t a y i n g b e l o w the s t a t u t o r y debt l i m i t a t i o n .
Fiscal year
Social
security,
welfare,
and
health
Housing
and
community
development
Agriculture and
agricultural
resources
National
resources
Transportation and
communication
Finance,
commerce,
and
industry
All
other
.4
.2
.1
.1
.1
1.5
2.0
2.1
2.3
2.1
Total
In billions of dollars
1947-50 average
1951
1952
•...
1953
1954
1.2
1.6
1.7
1.8
1.9
(*)
.5
.7
.4
-.6
1.9
1 .5
1.1
3.0
2.7
1.0
1.4
1.5
1.6
1.4
1.2
1.5
1.8
1.8
1.5
7.2
7.7
8.9
11.0
9.1
NOTE: Expenditures are "net," after allowance for reimbursements to appropriations, receipts of revolving
fund appropriations, and receipts credited to disbursing accounts of Government corporations and agencies
having authority to use collections without deposit into Treasury receipts. Figures for 1953 and 1954 are
on the new reporting basis. See "Note" to preceding table.
*Less than $50 million.
^ Gives effect to net receipts of Commodity Credit Corporation amounting to $.6 billion.
Estimates of Expenditures in 1955 and 1956
A c t u a l e x p e n d i t u r e s for the f i s c a l y e a r 1954 and e s t i m a t e s for
the f i s c a l y e a r s 1955 and 1956 a r e s u m m a r i z e d in the following
t a b l e . F u r t h e r d e t a i l s will be found in t a b l e 7. The e s t i m a t e s
a r e b a s e d upon f i g u r e s s u b m i t t e d to the C o n g r e s s in the Budget
for 1956.
18
1954 REPORT OF THE SECRETARY OF THE TREASURY
Actual budget expenditures for the fiscal year 1954 and estimated expenditures for 1955 and 1956
l l n millions of d o l l a r s . On basis of 1956 Budget document J
1954
actual
Other mutual security prograjns
1956
estimates
,
,
Railroad Retirement Boeird
,
Reconstruction Finance Corporation
State Department
Tennessee Valley Authority
Treasury Department:
Interest on the public debt
Other
Veterans' Administration
Reserve for proposed legislation and contingencies
All other
,
,
,
,
,
5,963
1,895
50
1,083
7,365
2,050
48
1,180
6,013
2,000
235
1,223
40,336
708
534
1,817
808
1,983
1,440
571
183
28
357
• 59
34,375
624
334
1,885
1,174
2,042
1,667
594
185
31
433
71
34,000
632
335
1,988
969
2,055
1,264
591
202
33
515
83
3,641
1,241
2,686
35
496
156
409
3,225
1,075
2,741
3,675
1,025
2,541
138
431
150
250
6,382
957
4,316
6,475
1,257
4,497
100
1,207
6,30r
1,091
4,705
325
1,132
79,151
75,203
73,332
11,379
Agriculture Department (including Commodity Credit Corporation),
Atomic Energy Comraission
Civil Service Coramission
,
Comraerce Department
.
'
Defense Department:
Military functions
,
Civil functions
Export-Import Bank of Washington
,
Farm Credit Administration
,
General Services Administration
,
Health, Education, and Welfare Department
,
Housing and ^ome Finance Agency
,
Interior Department
,
Justice Department
,
The Judiciary
,
Labor Department
,
Legislative branch
Mutual security:
Military assistance and direct forces support
,
Post Office Department
1955
estimates
11,699
10,923
,
,
Total budget expenditures
Deduct:
Applicable receipts^
,
Net budget expenditures
(»)
,
^ Receipts of certain Govemment corporations, the postal service, and other revolving funds the receipts
of which come primarily from outside the Govemment.
TRUST ACCOUNT AND OTHER TRANSACTIONS
In the ' ' M o n t h l y S t a t e m e n t of R e c e i p t s and E x p e n d i t u r e s of the
United S t a t e s G o v e r n m e n t , " financial t r a n s a c t i o n s of F e d e r a l
a g e n c i e s , o t h e r than t h o s e affecting budget r e c e i p t s and e x p e n d i t u r e s
of the G o v e r n m e n t and t h o s e r e l a t i n g to the public debt, a r e r e p o r t e d
in t h r e e s e p a r a t e t a b l e s ; n a m e l y :
Table V - - T r u s t A c c o u n t s , E t c . ;
Table VI - - S a l e s and R e d e m p t i o n s of Obligations
of G o v e r n m e n t A g e n c i e s in M a r k e t
(net); * and
Table V I I - - I n v e s t m e n t s of G o v e r n m e n t A g e n c i e s
iri P u b l i c Debt S e c u r i t i e s (net).^
Table V i n c l u d e s t r a n s a c t i o n s in the t r u s t a c c o u n t s m a i n t a i n e d in
the T r e a s u r y , p u r s u a n t to law^ for the benefit of individuals o r
iThe. figures in this table differ from those published in the daily Treasury statement under the
same caption because of differences in the Reporting bases. See ''Bases of Tables."
REPORT ON FISCAL OPERATIONS
19
c l a s s e s of i n d i v i d u a l s . P a y n i e n t s f r o m g e n e r a l fund a p p r o p r i a t i o n s
to c e r t a i n t r u s t a c c o u n t s a r e included a s r e c e i p t s u n d e r the r e s p e c tive t r u s t a c c o u n t s . The r e c e i p t s and e x p e n d i t u r e s of the m a j o r i t y
of t r u s t a c c o u n t s a r e r e p o r t e d on a g r o s s b a s i s . T r a n s a c t i o n s in
c e r t a i n t r u s t a c c o u n t s of a r e v o l v i n g fund o r w o r k i n g fund n a t u r e a r e
r e p o r t e d n e t . A l s o included in t h i s table and r e p o r t e d on a n e t b a s i s
a r e d e p o s i t fund a c c o u n t s c o v e r i n g d e p o s i t s with the T r e a s u r e r of
the United S t a t e s s u b j e c t to refund o r w i t h d r a w a l by thc d e p o s i t o r s ,
and unidentified r e c e i p t s of G o v e r n m e n t a g e n c i e s held subject to
a d n i i n i s t r a t i v e o r l e g a l d e t e r m i n a t i o n a s to t h e i r final d i s p o s i t i o n .
D u r i n g the f i s c a l y e a r 1954, the t r u s t and d e p o s i t a c c o u n t t r a n s a c tions r e s u l t e d in an e x c e s s of c r e d i t s o r net r e c e i p t s in the a m o u n t
of $2,386 m i l l i o n .
T a b l e VI shows the net s a l e s o r r e d e m p t i o n s , by face a m o u n t s ,
of s e c u r i t i e s i s s u e d by c e r t a i n G o v e r n n i e n t c o r p o r a t i o n s and a g e n c i e s in the m a r k e t , c l a s s i f i e d a s to s e c u r i t i e s g u a r a n t e e d and t h o s e
not g u a r a n t e e d by the United S t a t e s . E x c e p t for d e b e n t u r e s i s s u e d
by the F e d e r a l Housing A d m i n i s t r a t i o n , a c t i v i t y in g u a r a n t e e d o b l i gations is r e l a t i v e l y s m a l l . D u r i n g t h e f i s c a l y e a r 1954, t r a n s a c t i o n s
r e p o r t e d in this table showed n e t r e d e m p t i o n s of $4 m i l l i o n .
Table VII shows the n e t i n v e s t m e n t s in public debt s e c u r i t i e s of
c e r t a i n G o v e r n m e n t a g e n c i e s and funds, by t r u s t a c c o u n t s , wholly
owned G o v e r n m e n t c o r p o r a t i o n s and a g e n c i e s , and G o v e r n m e n t s p o n s o r e d c o r p o r a t i o n s . D u r i n g the f i s c a l y e a r 1954, n e t p u r c h a s e s
of s e c u r i t i e s a m o u n t e d to $2,054 m i l l i o n .
Monthly d a t a for e a c h of tliese c l a s s i f i c a t i o n s ( t a b l e s V, VI, and
VII, d e s c r i b e d in the p a r a g r a p h s p r e c e d i n g ) for the f i s c a l y e a r 1954
and c o m p a r a t i v e t o t a l s for the f i s c a l y e a r s 1953 and 1954 will be
found in t a b l e 4 . A n n u a l t r a n s a c t i o n s for thc f i s c a l y e a r s 1946
t h r o u g h 1954, with net t o t a l s of thc t h r e e m a j o r c l a s s i f i c a t i o n s , a r e
shown in table 6.
G E N E R A L FUND
Thc m o n e y s of thc United S t a t e s G o v e r n m e n t h e l d by thc T r e a s u r e r of thc United S t a t e s i n F c d c r a l d e p o s i t a r i e s o r in the T r e a s u r y
c o n s t i t u t e what h a s c o m m o n l y b e e n r e f e r r e d to a s the ' ' G e n e r a l
fund of thc T r e a s u r y . " The m o n e y a s s e t s h e l d in the g e n e r a l fund
of the T r e a s u r e r of thc United S t a t e s c o n s i s t of gold, s i l v e r , p a p e r
c u r r e n c y , coin, u n c l a s s i f i e d c o l l e c t i o n i t e m s , and b a l a n c e s in F e d e r a l R e s e r v e Banks and o t h e r d e p o s i t a r y b a n k s . The l i a b i l i t i e s of
the fund c o n s i s t of o u t s t a n d i n g T r e a s u r e r ' s c h e c k s , b a l a n c e s to the
c r e d i t of thc P o s t Office D e p a r t m e n t , thc B p a r d of T r u s t e e s of the
P o s t a l Savings S y s t e m , p o s t m a s t e r s ' d i s b u r s i n g a c c o u n t s , e t c . , a n d
u n c o l l e c t e d i t e m s , e x c h a n g e s , e t c . The difference b e t w e e n thc a s s e t s
and l i a b i l i t i e s c o n s t i t u t e s the b a l a n c e in thc g e n e r a l fund. D e t a i l s
of a s s e t s and l i a b i l i t i e s in thc g e n e r a l fund a r c s h o w n u n d e r thc
caption " A c c p u n t of the T r e a s u r e r of thc United S t a t e s " in the
" D a i l y S t a t e m e n t of the United States T r e a s u r y . " The b a l a n c e in
thc T r e a s u r e r ' s g e n e r a l fund a c c o u n t at the c l o s e of the f i s c a l y e a r
1954 a m o u n t e d to $6,766 m i l l i o n , an i n c r e a s e of $2,096 m i l l i o n
d u r i n g thc f i s c a l y e a r .
20
1954 REPORT OF THE SECRETARY OF THE TREASURY
T h e n e t c h a n g e i n t h e b a l a n c e in t h e a c c o u n t of t h e T r e a s u r e r of
t h e U n i t e d S t a t e s ( g e n e r a l fund) d u r i n g t h e f i s c a l y e a r i s a c c o u n t e d
for as follows:
(In m i l l i o n s of d o l l a r s )
B a l a n c e J u n e 30, 1953
4,670
Add:
Net deposits
,
Public debt r e d e m p t i o n s included as withdrawals
„.
o,.
Net i n c r e a s e in g r o s s p u b l i c debt
Total
,
889
5,189
o
Deduct:
Cash withdrawals
I n v e s t m e n t s of G o v e r n m e n t a g e n c i e s i n p u b l i c
debt s e c u r i t i e s , net
S a l e s ( - ) a n d r e d e m p t i o n s of o b l i g a t i o n s of
G o v e r n m e n t a g e n c i e s in m a r k e t , n e t
A c c r u a l of d i s c o u n t o n s a v i n g b o n d s a n d T r e a s ury bills
B a l a n c e J u n e 3 0 , 1954
^ 71,815
77,893
82,563
^ 71,974
^ 2,080
^ 235
1,508
75,797
6,766
IThis figure differs from that originally published in the daily Treasury statemeut because of
reclassification of certain transactions.
A c o m p a r a t i v e a n a l y s i s of the a s s e t s a n d i i a b i l i t i e s in the a c c o u n t s
of the T r e a s u r e r of the United States as of June 30, 1953, and June
30, 1954, is shown in table 50.
The b a l a n c e in the T r e a s u r e r ' s g e n e r a l fund a c c o u n t a s of the end
of each month during the fiscal y e a r r a n g e d f r o m a high of $8,741
m i l l i o n on July 3 1 , 1953, to a low of $4,044 m i l l i o n on J a n u a r y 3 1 ,
1954.
PUBLIC DEBT OPERATIONS AND OWNERSHIP OF FEDERAL
SECURITIES
The net i n c r e a s e of $5.2 billion in the public debt and g u a r a n t e e d
obligations during the y e a r b r o u g h t the debt outstanding to a level
of $ 2 7 1 . 3 billion on June 30, 1954. The debt was l a r g e r than on any
o t h e r June 30 in h i s t o r y but was $8.4 billion l e s s than the a l l t i m e
peak of $279.8 billion r e a c h e d in F e b r u a r y 1946.
The i n c r e a s e during 1954 was a c c o u n t e d for m a i n l y by net i n c r e a s e s in the i n t e r e s t - b e a r i n g debt of $ 3 . 0 billion in public
m a r k e t a b l e i s s u e s , $ 0 . 3 billion in n o n m a r k e t a b l e i s s u e s , and in
s p e c i a l i s s u e s to G o v e r n m e n t i n v e s t m e n t a c c o u n t s of $1.7 billion.
A s u m m a r y of changes in the debt during the y e a r is contained in
REPORT ON FISCAL OPERATIONS
21
t h e f o l l o w i n g t a b l e , a n d t h e t o t a l o u t s t a n d i n g f r o m J a n u a r y 1946
through June 30, 1954, is shown in c h a r t 3.
A n a c c o u n t of t h e o p e r a t i o n s i n t h e p u b l i c d e b t a n d c h a n g e s i n t h e
o w n e r s h i p of F e d e r a l s e c u r i t i e s d u r i n g t h e y e a r i s g i v e n i n t h e
p a g e s i m m e d i a t e l y f o l l o w i n g . F u r t h e r d e t a i l on the debt and i t s
o w n e r s h i p i s g i v e n i n t h e e x h i b i t s a n d t a b l e s s e c t i o n s of t h e r e p o r t .
June 30,
1953
Class of debt
June 30,
1954
Increase, or
decrease (-)
In billions of dollars
Public debt:
Interest-bearing:
Public issues:
Marketable
147.3
76.1
•268.9
.4
1.9
5.0
.1
.1
266.1
.1
,
3.3
1.7
271.3
.1
266.1
.
226.7
42.2
263.9
.3
1.8
Total public debt
3.0
.3
223.4
40.5
Special issues to Government investment accounts
150.4
76.3
271.3
5.2
()
*
5.2
*Less than $50 million.
.TRENDS IN THE FEDERAL DEBT l946-'54-
1946
'47
'48
'49
'50
-Calendar Years-
Chart 3.
'51
'52
'53
'54
22
1954 R E P O R T O F THE SECRETARY O F THE TREASURY
Public Debt Operations
The T r e a s u r y m a d e '*new m o n e y " offerings of m a r k e t a b l e s e c u r i t i e s d u r i n g 1954 of a t a x a n t i c i p a t i o n c e r t i f i c a t e , a T r e a s u r y n o t e ,
and a T r e a s u r y bond. T h e s e i s s u e s t o t a l e d $ 1 0 . 3 b i l l i o n . I n t h e
c o u r s e of the f i n a n c i n g s , which a g g r e g a t e d o v e r $65 b i l l i o n ,
p r o g r e s s was m a d e d u r i n g the y e a r t o w a r d the a d m i n i s t r a t i o n ' s
objective of lengthening the m a t u r i t y of the m a r k e t a b l e debt. In
addition to the offerings for c a s h of the note and bond, both of which
w e r e of i n t e r m e d i a t e m a t u r i t i e s , four of the five m a j o r refundings
p r o v i d e d h o l d e r s of the m a t u r i n g o r c a l l e d s e c u r i t i e s a choice b e tween a o n e - y e a r o r a l o n g e r - t e r m s e c u r i t y . By t h e s e m e a s u r e s
o v e r $18,8 billion of debt w a s extended for t e r m s r a n g i n g f r o m
t h r e e and o n e - h a l f to a l m o s t eight y e a r s . T h u s , the down t r e n d of
the m a t u r i t y l e n g t h of the debt was r e v e r s e d and the a v e r a g e of
the m a r k e t a b l e debt was extended f r o m 3.9 to 4.2 y e a r s . Of the
n o n m a r k e t a b l e i s s u e s , s a l e s of S e r i e s E , t o g e t h e r with S e r i e s H,
s a v i n g s bonds r o s e to a new p o s t w a r high. The s t r u c t u r e of the
debt at the c l o s e of the f i s c a l y e a r is shown in c h a r t 4 .
.STRUCTURE OF THE DEBT JUNE 30,1954.
Total
Marketable
Nonmarketable
$Bil.
\Z7%
L^EandH
;2p%:
\^Other
Savings Bonds
200
Kwwvvli
Time to Maturity:'^
MM
^/nyesfmenf
Bonds, etc.
'42'/4-] ^ S p e c / a / I s s u e s
fo Trust Funds
mm
Overs
^ Years
IOO
I to 5
Years
Within t Year
Chart 4.
1 Callable bonds to earliest call date.
Marketable issues
The n e t i n c r e a s e of $ 3 . 0 billion in the m a r k e t a b l e i n t e r e s t b e a r i n g debt b r o u g h t the t o t a l to $150.4 b i l l i o n on June 30, 1954,
23
REPORT ON FISCAL OPERATIONS
c o m p a r e d with $147.3 billion on June 30, 1953. The a m o u n t s of the
s e c u r i t y c l a s s e s of m a r k e t a b l e i s s u e s outstanding on June 30, 1953
and 1954, with changes d u r i n g the y e a r , a r e shown in the following
table.
Class of security
June 30,
1953
June 30,
1954
Increase, or
decrease (-)
In billions of dollars
Treasury bills
Certificates of indebtedness
Treasury notes
Treasury bonds:
Bank eligible
Bank restricted
Other.
^ 19.7
15.9
30.4
19.5
18.4
32.0
-0.2
2.6
1.5
64.0
17.2
.1
71.7
8.7
.1
7.7
8.6
()
*
Total interest-bearing marketable securities.
»Less than $50 million.
^ Includes $0.8 billion tax anticipation series.
B o n d s , n o t e s , and c e r t i f i c a t e s of i n d e b t e d n e s s . - - M a r k e t a b l e s e c u r i t i e s o t h e r than T r e a s u r y b i l l s which m a t u r e d o r w e r e c a l l e d for
r e d e m p t i o n a m o u n t e d to $53.0 billion in the f i s c a l y e a r 1954. Of
this ainount, $45.4 billion w e r e exchanged for new i s s u e s ; the r e m a i n i n g $ 7 . 6 billion c o n s i s t e d of $5.9 billion of c e r t i f i c a t e s of
i n d e b t e d n e s s , tax a n t i c i p a t i o n s e r i e s , due M a r c h 22, 1954, which
w e r e r e c e i v e d in p a y m e n t of i n c o m e and p r o f i t s t a x e s o r r e d e e m e d
in c a s h ; $ 0 . 5 billion of T r e a s u r y notes due D e c e m b e r 1, 1953, p u r c h a s e d f r o m the F e d e r a l R e s e r v e S y s t e m and r e t i r e d ; and $1.2
billion of b a l a n c e s of nnatured and called i s s u e s which w e r e p r e s e n t e d for c a s h r e d e m p t i o n r a t h e r than exchange or which w e r e
t r a n s f e r r e d to m a t u r e d debt.
On F e b r u a r y 9, 1954, two i s s u e s of T r e a s u r y bonds w e r e called
for r e d e m p t i o n on June 15, 1954. They we r e the 2 - 1 / 4 p e r c e n t bonds
of 1 9 5 2 - 5 5 , dated F e b r u a r y 2 5 , 1942, due June 15, 1955, outstanding
in the a m o u n t of $ 1 . 5 billion, and the 2 - 1 / 4 p e r c e n t bonds of 195456, dated July 22, 1940, due June 15, 1956, outstanding in the a m o u n t
of $0.7 b i l l i o n . The 2 - 1 / 4 p e r c e n t bonds of 1954-56 w e r e p a r t i a l l y
t a x - e x e m p t . Two i s s u e s of T r e a s u r y bonds which w e r e not called for
r e d e m p t i o n when they r e a c h e d t h e i r call d a t e s in p r i o r y e a r s again
went u n c a l l e d in f i s c a l 1954. T h e s e w e r e the 2 p e r c e n t bonds of
1951-55 and the 2 p e r c e n t bonds of 1952-54 (due D e c e m b e r 15,
1954).
Bank r e s t r i c t e d b o n d s , which c o m m e r c i a l b a n k s m a y not a c q u i r e
for t h e i r own account p r i o r to specified d a t e s , d e c r e a s e d f r o m a
total of $17.2 billion to $ 8 , 7 b i l l i o n . Two i s s u e s of bank r e s t r i c t e d
b o n d s , the 2 - 1 / 2 p e r c e n t bonds of 1964-69 (dated S e p t e m b e r 15,
1943) and the 2 - 1 / 2 p e r c e n t bonds of 1965-70 becamie bank eligible
on S e p t e m b e r 15, 1953, and F e b r u a r y 1, 1954, r e s p e c t i v e l y .
New s e c u r i t i e s i s s u e d for refunding and for **new m o n e y " c o n s i s t e d of t h r e e i s s u e s of b o n d s , 2 - 3 / 4 p e r c e n t of 7 - y e a r , 10-month
m a t u r i t y , 2 - 1 / 2 p e r c e n t of 5 - y e a r m a t u r i t y , and 2 - 1 / 2 p e r c e n t of
7 - y e a r , 9 - m o n t h m a t u r i t y ; t h r e e i s s u e s of T r e a s u r y n o t e s , 2 - 7 / 8
p e r c e n t of 3 - 1 / 2 - y e a r m a t u r i t y , 1-7/8 p e r c e n t of 1 2 - 1 / 2 - m o n t h
m a t u r i t y , and 1-7/8 p e r c e n t of 4 - y e a r , 9-nnonth m a t u r i t y ; four
i s s u e s of c e r t i f i c a t e s of i n d e b t e d n e s s , two of 2 - 5 / 8 p e r c e n t , one of
24
1954 REPORT OF THE SECRETARY OF THE TREASURY
1 - 5 / 8 p e r c e n t , a n d o n e of 1 - 1 / 8 p e r c e n t , a l l of o n e - y e a r n n a t u r i t y .
The 7 - y e a r , 10-month 2 - 3 / 4 p e r c e n t bond was offered wholly for
cash ( " n e w money*'); and the 4 - y e a r , 9-month 1-7/8 p e r c e n t note
w a s offered both for c a s h and in e x c h a n g e for m a t u r i n g s e c u r i t i e s .
T h e i s s u e s of b o n d s , n o t e s , a n d c e r t i f i c a t e s w h i c h w e r e r e f u n d e d
d u r i n g t h e y e a r c o n s i s t e d of f o u r i s s u e s of T r e a s u r y b o n d s , t w o of
2 p e r c e n t a n d t w o of 2 - 1 / 4 p e r c e n t ; t w o i s s u e s of T r e a s u r y n o t e s ,
2 - 1 / 8 p e r c e n t of 1 4 - m o n t h m a t u r i t y a n d 1 - 3 / 8 p e r c e n t of 4 - y e a r ,
3 - m o n t h m a t u r i t y ; a n d . t h r e e i s s u e s of c e r t i f i c a t e s of i n d e b t e d n e s s ,
b e a r i n g 2 p e r c e n t , 2 - 1 / 4 p e r c e n t , a n d 2 - 5 / 8 p e r c e n t , a l l of o n e - y e a r
maturity.
The following t a b l e s , which s u m m a r i z e the m a j o r financing o p e r a t i o n s d u r i n g t h e f i s c a l y e a r , s h o w t h e r e s u l t s of t h e p u b l i c o f f e r i n g s
of b o n d s , n o t e s , a n d c e r t i f i c a t e s of i n d e b t e d n e s s .
Public offerings of marketable bonds, notes, and certificates of indebtedness, fiscal
year 1954^
[in millions of dollars]
Description of
security
Date of
issue
July. 15, 1953.'...
Aug. 15, 1953
Sept. 15, 1953...
Feb. 15, 1954....
May 17, 1954
Apr. 1, 1953
Oct. 1, 1953
Apr. 1, 1954
Sept. 15, 1953...
Dec. 1, 1953
May 17, 1954
Nov. 9, 1953
Feb. 15, 1953''...
Feb. 15, 1954...
Certificates of indebtedness:
2-1/2^, Series C-1954 (tax anticipation series)
due Mar. 22, 1954.
2-5/8^, Series D-1954, due Aug. 15, 1954
2-5/8^, Series E-1954, due Sept. 15, 1954
1-5/8^, Series A-1955, due Feb. 15, 1955
1-1/8^, Series B-1955, due May 17, 1955
Treasury notes:
1-1/2%, Series EA-1958, due Apr. 1, 1958^
1-1/2-3^, Series EO-1958, due Oct. 1, 1958^
1-1/2^, Series EA-1959, due Apr. 1, 1959^
2-7/8^, Series A-1957, due Mar. 15, 1957
1-7/8^, Series B-1954, due Dec. 15, 1954
1-7/8^, Series A-1959, due Feb. 15, 1959
Treasury bonds:
2-3/4% of 1961, due Sept. 15, 1961
2-1/2% of 1958, due Dec, 15, 1958 (additional
amount of issue dated February 15, 1953).
2-1/2% of 1961, due Nov. 15, 1961
Total
Issued
for cash
Issued in
exchange
for other
securities
5,902
Total
issued
5,902
2,788
4,724
7,007
3,886
3 306
121
50
2,997
8,175
2,897
3 306
2,997
8,175
5,102
1,748
2 239
1,748
11,177
2,205
2,788
4,724
7,007
3,886
11 177
45,877
56 223
2,239
10,346
121
50
Exclusive of special series of certificates of indebtedness.
^ Issued only on demand of owners, in exchange for 2-3/4 percent Treasury Bonds, Investraent Series B-19750.
^ Amount issued subsequent to June 30, 1953.
^ Issued December 1, 1953, additional amount of the issue dated February 15, 1953.
M a r k e t a b l e s e c u r i t i e s i s s u e d by the T r e a s u r y in the f i r s t half of
the f i s c a l y e a r 1954 a m o u n t e d to $34.1 b i l l i o n of the t o t a l $56.2
billion i s s u e d during the y e a r . In the f i r s t q u a r t e r of the y e a r the
financing o p e r a t i o n s w e r e c h a r a c t e r i z e d by offerings of s h o r t e r
t e r m s e c u r i t i e s than in the r e m a i n d e r . This was p a r t l y b e c a u s e a
p o r t i o n of the b o r r o w i n g w a s for a s h o r t p e r i o d in a n t i c i p a t i o n of
the t a x e s due M a r c h 15, 1954, s i n c e tax r e c e i p t s a r e s u b s t a n t i a l l y
h e a v i e r in the s e c o n d half of the f i s c a l y e a r than in the f i r s t half.
(See * ' S u m m a r y of F i s c a l O p e r a t i o n s ' * at the beginning of this
s e c t i o n . ) E x c e p t for the one note i s s u e all offerings in this q u a r t e r
w e r e for one y e a r or l e s s .
To p r o v i d e for the T r e a s u r y ' s c a s h r e q u i r e m e n t s in this p e r i o d ,
the f i r s t i s s u e was a t a x a n t i c i p a t i o n c e r t i f i c a t e offered on July 6,
25
REPORT ON FISCAL OPERATIONS
Disposition of maturing (
edeemable public issues of bonds, notes, and certificates of indebtedness,
fiscal year 1954^
[In millions of dollars ]
Date of
refunding
or redemption
Aug. 15, 1953..
Feb. 15, 1954..
Mar. 22, 1954..
June 1, 1954...
Dec. 1, 1953...
Feb. 15, 1954
Sept. 15, 1953.
Feb. 15 and
May 17, 1954
Description of security
Marketable issues
Certificates of indebtedness:
2%, Series C-1953, maturing
Aug. 15, 1953
2-1/4%, Series A-1954, maturing Feb. 15, 1954
2-1/256, Series C-1954 (tax
anticipation series), maturing Mar. 22, 1954
2-5/8%, Series B-1954, maturing June 1, 1954
Treasury notes:
2-1/8%, Series A-1953, maturing Dec. 1, 1953
1-3/8%, Series A-1954, maturing Mar. 15, 1954
Treasury bonds:
2% of 1951-53, maturing Sept.
15, 1953
2% of 1952-54, maturing June
15, 1954
2-1/4% of 1952-55, called
June 15, 1954
2-1/4% of 1954-56, called
June 15, 1954
Total, marketable issues..
Date of issue
Redeemed
for cash
Exchanged
or carfor new
ried to
security.
matured
debt
Percent
exchanged
Aug. 15, 1952...
93
2,788
2,882
96.8
Feb. 15, 1953...
108
8,006
8,114
98.7
July 15, 1953...
5,902
5,902
June 1, 1953
1'75
4,683
4,858
Oct. 1, 1952
2 618
9,923
10,542
94.1
Dec. 15, 1949...
. 78
4,597
4,675
98.3
Sept. 15 , 1943..
266
7,721
7,986
96.7
June 26, 1944...
237
5,588
5,825
95.9
1,450
1,501
96.6
642
681
94.4
45,399
52,965
Feb. 25, 1942...
July 22, 1940...
^ Exclusive of special series of certificates of indebtedness, postal savings bonds, and other debt :
^ Includes $500 million purchased for cash and retired on Nov. 9, 1953, prior to exchange offering.
1953, for *'new m o n e y . " The initial a n n o u n c e m e n t of July 1 s t a t e d
that the offering would be for $ 5 . 5 to $6.0 b i l l i o n . T h e s e c e r t i f i c a t e s , which w e r e dated July 15, 1953, and b o r e a m a t u r i t y date of
M a r c h 22, 1954, w e r e r e c e i v a b l e at p a r plus a c c r u e d i n t e r e s t to
m a t u r i t y in p a y m e n t of i n c o m e and p r o f i t s t a x e s due on M a r c h 15,
1954. P a y m e n t was p e r m i t t e d in the f o r m of c r e d i t in T r e a s u r y tax
and loan a c c o u n t s . The announcemient on July 6 detailing the offering s t a t e d t h a t c o m m e r c i a l b a n k s and o t h e r l e n d e r s w e r e r e q u e s t e d
to r e f r a i n f r o m m a k i n g u n s e c u r e d l o a n s , or l o a n s c o l l a t e r a l i z e d in
whole o r in p a r t by the c e r t i f i c a t e s s u b s c r i b e d f o r , to c o v e r the
d e p o s i t s which w e r e r e q u i r e d to be paid when s u b s c r i p t i o n s w e r e
e n t e r e d . The s e c u r i t i e s w e r e d e s i g n a t e d 2 - 1 / 2 p e r c e n t T r e a s u r y
c e r t i f i c a t e s of i n d e b t e d n e s s . S e r i e s C - 1 9 5 4 .
S u b s c r i p t i o n s r e c e i v e d totaled n e a r l y $ 8 . 7 billion, of which
slightly o v e r $2.0 billion w e r e r e c e i v e d f r o m nonbank s o u r c e s .
S u b s c r i p t i o n s for m o r e than $100,000 e a c h w e r e a l l o t t e d 67 p e r c e n t
but not l e s s than $ 1 0 0 , 0 0 0 , and s m a l l e r s u b s c r i p t i o n s w e r e a l l o t t e d
in full. The total a m o u n t a l l o t t e d w a s $5.9 b i l l i o n .
The next offering w a s a o n e - y e a r 2 - 5 / 8 p e r c e n t T r e a s u r y c e r t i f i cate of i n d e b t e d n e s s , announced by the S e c r e t a r y of the T r e a s u r y on
August 3, 1953. D e s i g n a t e d S e r i e s D - 1 9 5 4 , dated August 15, 1953,
it w a s offered on August 5 in exchange for the 2 p e r c e n t c e r t i f i c a t e s
of i n d e b t e d n e s s . S e r i e s C - 1 9 5 3 , m a t u r i n g August 15, 1953, in the
a m o u n t of $2,882 m i l l i o n . E x c h a n g e s of the m a t u r i n g c e r t i f i c a t e s
a m o u n t e d to $2,788 m i l l i o n , l e a v i n g $93 m i l l i o n for c a s h r e d e m p tion.
26
1954 REPORT OF THE SECRETARY OF THE TREASURY
T h e f i r s t of t h e t h r e e f i n a n c i n g s w h i c h o f f e r e d a c h o i c e of a o n e year (or approximately one-year) or a l o n g e r - t e r m security was
a n n o u n c e d o n A u g u s t 2 8 , 1 9 5 3 . H o l d e r s of t h e 2 p e r c e n t T r e a s u r y
b o n d s of 1 9 5 1 - 5 3 , m a t u r i n g S e p t e m b e r 1 5 , 1 9 5 3 , i n t h e a m o u n t of
$7,986 m i l l i o n , w e r e offered on S e p t e m b e r 2, in e x c h a n g e for t h e i r
h o l d i n g s , t h e c h o i c e of o n e - y e a r 2 - 5 / 8 p e r c e n t T r e a s u r y c e r t i f i c a t e s of i n d e b t e d n e s s . S e r i e s E - 1 9 5 4 , o r 3 - 1 / 2 - y e a r 2 - 7 / 8 p e r c e n t
T r e a s u r y n o t e s . S e r i e s A - 1 9 5 7 , m a t u r i n g M a r c h 15, 1957. Subs c r i p t i o n s and a l l o t m e n t s totaled $4,724 m i l l i o n for the new c e r t i f i c a t e s a n d $ 2 , 9 9 7 m i l l i o n f o r t h e n e w n o t e s , a t o t a l e x c h a n g e of
$ 7 , 7 2 1 n n i l l i o n , l e a v i n g $ 2 6 6 m i l l i o n of t h e m a t u r i n g b o n d s t o b e
paid in c a s h .
As the next step t a k e n in the fiscal y e a r to l e n g t h e n the m a t u r i t y
of t h e m a r k e t a b l e d e b t b y i s s u e s of i n t e r m e d i a t e t e r m , a c a s h
o f f e r i n g w a s m a d e o n O c t o b e r 2 8 , 1 9 5 3 , of 7 - y e a r , 1 0 - m o n t h
2 - 3 / 4 p e r c e n t T r e a s u r y b o n d s . T h e b o n d s w e r e d a t e d N o v e m b e r 9,
1953, to m a t u r e S e p t e m b e r 15, 1961, and w e r e d e s i g n a t e d 2 - 3 / 4
p e r c e n t b o n d s of 1 9 6 1 . T h e o f f e r i n g , a n n o u n c e d o n O c t o b e r 2 6 , w a s
for $2.0 billion, or t h e r e a b o u t s .
S u b s c r i p t i o n s a m o u n t e d to over $12.5 billion and a l l o t m e n t s w e r e
a p p r o x i m a t e l y $ 2 . 2 billion. S u b s c r i p t i o n s in a m o u n t s up to and i n c l u d i n g $ 1 0 , 0 0 0 , t o t a l i n g a b o u t $ 2 2 - 1 / 2 nnillion, w e r e a l l o t t e d in full.
L a r g e r subscriptions from mutual savings banks, insurance comp a n i e s , pension and retirennent funds. State and local g o v e r n m e n t s ,
s - g g r e g a t i n g a b o u t $ 1 . 7 b i l l i o n , w e r e a l l o t t e d 24 p e r c e n t , a n d l a r g e r
subscriptions from all o t h e r s , including $8.1 billion from c o m n n e r c i a l b a n k s , w e r e a l l o t t e d 16 p e r c e n t , b u t n o t l e s s t h a n $ 1 0 , 0 0 0
f o r a n y o n e s u b s c r i p t i o n o n e i t h e r of t h e s e t w o p e r c e n t a g e b a s e s .
Connnnercial b a n k s and o t h e r l e n d e r s w e r e r e q u e s t e d to r e f r a i n f r o m
m a k i n g u n s e c u r e d l o a n s , o r l o a n s c o l l a t e r a l i z e d in whole o r in p a r t
b y t h e b o n d s s u b s c r i b e d f o r , t o c o v e r t h e 10 p e r c e n t d e p o s i t s r e q u i r e d to be paid when s u b s c r i p t i o n s w e r e e n t e r e d ; and a c e r t i f i c a tion t h a t no s u c h l o a n h a d b e e n nnade w a s r e q u i r e d on e a c h s u b s c r i p t i o n e n t e r e d b y a c o n n n n e r c i a l b a n k f o r a c c o u n t of i t s c u s t o m e r s .
In c o n n e c t i o n w i t h t h e i s s u a n c e of t h e s e b o n d s , t h e S e c r e t a r y of
the T r e a s u r y a n n o u n c e d on N o v e m b e r 9, 1953, that the T r e a s u r y
h a d p u r c h a s e d on that day f r o m the F e d e r a l R e s e r v e S y s t e m and
r e t i r e d $ 5 0 0 n n i l l i o n of 2 - 1 / 8 p e r c e n t T r e a s u r y n o t e s of S e r i e s
A - 1 9 5 3 , m a t u r i n g D e c e n n b e r 1, 1 9 5 3 . T h i s w a s d o n e t o r e d u c e t h e
o u t s t a n d i n g d e b t s o t h a t t h e i s s u a n c e of $ 2 ; 2 b i l l i o n of t h e n e w
T r e a s u r y b o n d s would n o t r e s u l t in i n c r e a s i n g the o u s t a n d i n g
public debt and g u a r a n t e e d obligations held outside the T r e a s u r y
to a figure above the s t a t u t o r y l i m i t a t i o n . P a y m e n t w a s m a d e in
e f f e c t b y t h e u s e of g o l d w h i c h w a s p a r t of t h e T r e a s u r y g e n e r a l
f u n d b a l a n c e . T h e u s e of g o l d i n t h i s w a y t o r e t i r e G o v e r n n n e n t
s e c u r i t i e s h e l d by the F e d e r a l R e s e r v e Systenn h a s no effect on
bank r e s e r v e s and therefore was neither inflationary nor d e f l a t i o n a r y . Paynnent for the s e c u r i t i e s w a s nnade f r o m T r e a s u r y
b a l a n c e s in the F e d e r a l R e s e r v e B a n k s , and t h e s e b a l a n c e s w e r e
t h e n r e s t o r e d b y t h e d e p o s i t of g o l d c e r t i f i c a t e s i s s u e d a g a i n s t t h e
gold w h i c h w a s t h e n t r a n s f e r r e d fronn t h e g e n e r a l fund to the gold
c e i t i f i c a t e fund.
The n e x t financing, a n n o u n c e d on Novennber 16, 1953, w a s the
s e c o n d o f f e r i n g g i v i n g a c h o i c e of a s h o r t - t e r m o r i n t e r m e d i a t e -
REPORT ON FISCAL OPERATIONS
2 7
t e r m s e c u r i t y . I t c o n s i s t e d of a r e f u n d i n g o f f e r i n g o n N o v e m b e r 18
of t w o s e c u r i t i e s i n e x c h a n g e f o r t h e 2 - 1 / 8 p e r c e n t T r e a s u r y
n o t e s of S e r i e s A - 1 9 5 3 , m a t u r i n g D e c e m b e r 1, 1 9 5 3 , i n t h e a m o u n t
of $ 1 0 b i l l i o n . H o l d e r s of t h e m a t u r i n g n o t e s w e r e o f f e r e d a c h o i c e
of e x c h a n g i n g t h e m f o r 1 - 7 / 8 p e r c e n t T r e a s u r y n o t e s of S e r i e s
B - 1 9 5 4 , d a t e d D e c e m b e r 1, 1 9 5 3 , a n d m a t u r i n g D e c e m b e r 1 5 , 1 9 5 4 ,
o r f o r 2 - 1 / 2 p e r c e n t T r e a s u r y b o n d s of 1 9 5 8 , a n a d d i t i o n a l a m o u n t of
the i s s u e d a t e d F e b r u a r y 15, 1953, with i n t e r e s t f r o m J u n e 15, 1953.
Subscriptions and allotnnents aggregated over $9.9 billion, or
99 p e r c e n t of t h e m a t u r i n g i s s u e o u t s t a n d i n g . T h e F e d e r a l R e s e r v e
S y s t e m h e l d n e a r l y $ 7 . 0 b i l l i o n of t h e m a t u r i n g n o t e s , a l l of w h i c h
w e r e e x c h a n g e d f o r t h e n e w n o t e s . S u b s c r i p t i o n s fronn t h e p u b l i c
a m o u n t e d t o o v e r $ 2 . 9 b i l l i o n , o r 9 6 p e r c e n t of t h e i r h o l d i n g s , of
w h i c h 60 p e r c e n t , o r a b o u t $ 1 . 7 b i l l i o n , w e r e e x c h a n g e d f o r t h e
bonds and $1.2 billion for the new n o t e s . The r e m a i n d e r o f t h e
n n a t u r i n g riotes, a b o u t $ 1 1 8 m i l l i o n , n o t p r e s e n t e d f o r e x c h a n g e ,
w e r e p a y a b l e in c a s h .
O n J a n u a r y 2 7 , 1 9 5 4 , t h e S e c r e t a r y of t h e T r e a s u r y a n n o u n c e d
t h e l a r g e s t r e f i n a n c i n g o p e r a t i o n of t h e y e a r , i n v o l v i n g f i v e i s s u e s
o u t s t a n d i n g i n t h e a m o u n t of $ 2 0 , 8 b i l l i o n . T h i s w a s t h e t h i r d
o f f e r i n g w h i c h g a v e a c h o i c e of a n i n t e r m e d i a t e o r s h o r t - t e r m
s e c u r i t y . A n o f f e r i n g w a s m a d e o n F e b r u a r y 1 of i s s u e s of 7 - y e a r ,
9 - n n o n t h 2 - 1 / 2 p e r c e n t T r e a s u r y b o n d s of 1 9 6 1 a n d o n e - y e a r 1 - 5 / 8
p e r c e n t T r e a s u r y c e r t i f i c a t e s of i n d e b t e d n e s s of S e r i e s A - 1 9 5 5 i n
e x c h a n g e f o r t h e 2 - 1 / 4 p e r c e n t c e r t i f i c a t e s of i n d e b t e d n e s s m a t u r i n g
F e b r u a r y 1 5 , 1 9 5 4 , i n t h e a m o u n t of $ 8 , 1 b i l l i o n a n d t h e 1 - 3 / 8 p e r c e n t T r e a s u r y n o t e s m a t u r i n g M a r c h 1 5 , 1 9 5 4 , i n t h e a m o u n t of
$ 4 . 7 b i l l i o n . In a d d i t i o n , t h e n e w b o n d s w e r e o f f e r e d t o h o l d e r s of
t h e 2 p e r c e n t T r e a s u r y b o n d s of 1 9 5 2 - 5 4 , m a t u r i n g J u n e 1 5 , 1 9 5 4 ,
a n d h o l d e r s of t h e 2 - 1 / 4 p e r c e n t T r e a s u r y b o n d s of 1 9 5 2 - 5 5 a n d
2 - 1 / 4 p e r c e n t T r e a s u r y b o n d s of 1 9 5 4 - 5 6 w h i c h w e r e c a l l e d o n
F e b r u a r y 9 for r e d e m p t i o n on J u n e 15, 1954, o u t s t a n d i n g in the
t o t a l a m o u n t of $ 8 , 0 b i l l i o n . A n y of t h e f i v e m a t u r i n g o r c a l l e d
s e c u r i t i e s , t e n d e r e d singly o r in c o m b i n a t i o n s a g g r e g a t i n g $500
o r m u l t i p l e s thereof, w e r e eligible to be e x c h a n g e d for the n e w
b o n d s . Both the new bonds and the new certificates w e r e dated
F e b r u a r y 15, 1954.
S u b s c r i p t i o n s f o r t h e s e n e w o f f e r i n g s t o t a l e d $ 1 8 , 2 b i l l i o n , of
which $11,2 billion w e r e for the new bonds and $7.0 billion for the
n e w c e r t i f i c a t e s . A t o t a l of $ 8 , 0 0 6 m i l l i o n , o r 9 8 . 7 p e r c e n t , of t h e
m a t u r e d c e r t i f i c a t e s w a s e x c h a n g e d , of w h i c h $ 5 , 6 4 7 m i l l i o n , o r
70.5 p e r c e n t , was for the n e w c e r t i f i c a t e s and $2,360 m i l l i o n , o r
29.5 p e r c e n t , for the new b o n d s , leaving $108 m i l l i o n to be paid
i n c a s h . A t o t a l of $ 4 , 5 9 7 m i l l i o n , o r 9 8 . 3 p e r c e n t , of t h e m a t u r i n g
n o t e s w a s e x c h a n g e d , of w h i c h $ 3 , 2 3 7 m i l l i o n , o r 7 0 , 4 p e r c e n t ,
w a s for the n e w bonds and $1,360 m i l l i o n , o r 29.6 p e r c e n t , for the
n e w c e r t i f i c a t e s , leaving $ 7 8 nnillion to be r e d e e m e d for c a s h .
Of t h e $ 8 , 0 0 7 m i l l i o n i n b o n d s n n a t u r i n g o r c a l l e d f o r r e d e m p t i o n
on J u n e 1 5 , 1954, $ 5 , 5 8 0 nnillion, o r 69.7 p e r c e n t , w a s e x c h a n g e d
for the new b o n d s .
T h e t h i r d c a s h o f f e r i n g of t h e y e a r , o n M a y 4 , 1 9 5 4 , a n n o u n c e d b y
t h e S e c r e t a r y of t h e T r e a s u r y o n A p r i l 3 0 , w a s f o r a n i s s u e of $ 2 , 0
b i l l i o n , o r t h e r e a b o u t s , of 4 - y e a r , 9 - m o n t h 1 - 7 / 8 p e r c e n t T r e a s u r y
n o t e s of S e r i e s A - 1 9 5 9 , d a t e d M a y 1 7 , 1 9 5 4 , a n d n n a t u r i n g F e b r u a r y
15, 1959.
28
1954 REPORT OF THE SECRETARY OF THE TREASURY
Subscriptions totaled
$9,750 million and allotments
$2,205
nnillion. S u b s c r i p t i o n s in a m o u n t s up to and including $ 1 0 , 0 0 0 ,
totaling about $68 m i l l i o n , w e r e allotted in full. L a r g e r s u b s c r i p t i o n s
w e r e a l l o t t e d 22 p e r c e n t o n a n e q u a l p e r c e n t a g e b a s i s , r e g a r d l e s s
of i n v e s t m e n t c l a s s , b u t n o t l e s s t h a n $ 1 0 , 0 0 0 f o r a n y o n e s u b s c r i p t i o n . C a s h s u b s c r i p t i o n s fbr the n o t e s could be paid for by
c r e d i t in T r e a s u r y tax and l o a n a c c o u n t s . C o m m e r c i a l b a n k s , which
for this p u r p o s e a r e defined as banks accepting d e m a n d d e p o s i t s ,
w e r e p e r m i t t e d to s u b s c r i b e for t h e i r own a c c o u n t without d e p o s i t ,
but w e r e r e s t r i c t e d in e a c h c a s e to an a m o u n t not e x c e e d i n g o n e h a l f t h e c o m b i n e d c a p i t a l , s u r p l u s , a n d u n d i v i d e d p r o f i t s of t h e
s u b s c r i b i n g b a n k a s of D e c e m b e r 3 1 , 1 9 5 3 . A s i n t h e c a s e of
p r e v i o u s c a s h offerings, the T r e a s u r y again r e q u e s t e d connnnercial
b a n k s and o t h e r l e n d e r s not to m a k e u n s e c u r e d l o a n s , o r l o a n s
c o l l a t e r a l i z e d in whole o r in p a r t by the n o t e s s u b s c r i b e d for, to
c o v e r the d e p o s i t s r e q u i r e d to be paid when the s u b s c r i p t i o n s
w e r e e n t e r e d ; and r e q u i r e d a certification by the submitting bank
that no such loan had b e e n m a d e . F o r this offering, t h e r e was
a l s o r e q u i r e d a f u r t h e r c e r t i f i c a t i o n that the bank h a d no b e n e f i cial i n t e r e s t in its c u s t o m e r s ' s u b s c r i p t i o n s , and that no c u s t o m e r s h a d any b e n e f i c i a l i n t e r e s t in the b a n k ' s own s u b s c r i p tion.
T h e f o u r t h d u a l c h o i c e r e f u n d i n g w a s the o f f e r i n g on M a y 5 ,
a l s o i n a c c o r d a n c e w i t h t h e a n n o u n c e m e n t o n A p r i l 3 0 , of a n e w
i s s u e of o n e - y e a r 1 - 1 / 8 p e r c e n t T r e a s u r y c e r t i f i c a t e s of i n d e b t e d n e s s of S e r i e s B - 1 9 5 5 , d a t e d M a y 1 7 , 1 9 5 4 , i n e x c h a n g e f o r t h e
2 - 5 / 8 p e r c e n t c e r t i f i c a t e s of i n d e b t e d n e s s . S e r i e s B - 1 9 5 4 , m a t u r i n g
J u n e 1, 1 9 5 4 , i n t h e a m o u n t of $ 4 , 8 5 8 m i l l i o n , a n d i n e x c h a n g e
for the t h r e e T r e a s u r y bond i s s u e s to m a t u r e o r which had b e e n
called for
r e d e m p t i o n o n J u n e 1 5 , 1 9 5 4 , a n d of w h i c h $ 2 , 4 2 7
million had not b e e n p r e s e n t e d for exchange in the F e b r u a r y r e funding. The m a t u r i n g c e r t i f i c a t e s could be e x c h a n g e d e i t h e r for
the new certificates or for the new 1-7/8 p e r c e n t n o t e s . S e r i e s
A - 1 9 5 9 , w h i c h h a d b e e n offered for c a s h on M a y 4 .
S u b s c r i p t i o n s t o t h e n e w c e r t i f i c a t e s t o t a l e d $ 3 , 8 8 6 m i l l i o n , of
which
$ 1 , 7 8 6 m i l l i o n c o n s i s t e d of e x c h a n g e s of t h e m a t u r i n g
c e r t i f i c a t e s a n d $ 2 , 1 0 0 m i l l i o n of t h e m a t u r i n g a n d c a l l e d b o n d s .
E x c h a n g e s of m a t u r i n g c e r t i f i c a t e s f o r t h e n o t e s w e r e $ 2 , 8 9 7
m i l l i o n , w h i c h , t o g e t h e r with the $1,786 nnillion exchanged-for the
n e w c e r t i f i c a t e s , m a d e a t o t a l of $ 4 , 6 8 3 m i l l i o n , o r 9 6 . 4 p e r c e n t ,
e x c h a n g e d . T h i s l e f t $ 1 7 5 m i l l i o n of t h e m a t u r i n g c e r t i f i c a t e s
a n d $ 3 2 7 m i l l i o n of t h e m a t u r e d a n d c a l l e d b o n d s t o b e r e d e e m e d
for c a s h .
T r e a s u r y 9 1 - d a y b i l l s . - - O f f e r i n g s of r e g u l a r T r e a s u r y b i l l s
w e r e n n a d e i n e a c h w e e k of t h e f i s c a l y e a r ; 50 of t h e y e a r ' s i s s u e s
w e r e for m a t u r i t y in 91 d a y s , one w a s f o r 90 d a y s a n d one w a s
f o r 9 2 d a y s . F o u r w e e k l y i s s u e s of t h e y e a r e x c e e d e d m a t u r i t i e s
b y a t o t a l of $ 6 0 0 m i l l i o n . T h e i s s u e of J u l y 2 e x c e e d e d t h e
m a t u r i t y b y $ 3 0 0 n n i l l i o n , a n d t h e i s s u e s of J u l y 9 , J u l y 1 6 , a n d
September
10 e x c e e d e d t h e m a t u r i t i e s b y $ 1 0 0 m i l l i o n e a c h .
T h e o t h e r w e e k l y i s s u e s r e f u n d e d the m a t u r i t i e s in a p p r o x i m a t e l y
e q u i v a l e n t a n n o u n t s . T h e 13 i s s u e s of r e g u l a r T r e a s u r y b i l l s o u t s t a n d i n g on June 30, 1954, totaled $ 1 9 , 5 1 5 m i l l i o n , c o m p a r e d with
$18,906 million a year e a r l i e r .
29
REPORT ON FISCAL OPERATIONS
T h e a v e r a g e r a t e s of d i s c o u n t o n n e w i s s u e s r a n g e d f r o m a h i g h
of 2 . 1 5 7 p e r c e n t i n J u l y t o 1.953 p e r c e n t i n m i d - S e p t e m b e r , t h e n
d e c l i n e d r a p i d l y t o a l o w of 1.220 p e r c e n t a t t h e e n d of O c t o b e r .
T h e r a t e t h e n r o s e a g a i n , r e a c h i n g 1,704 p e r c e n t o n D e c e m b e r 2 4 ,
1953; and the following week comnnenced a r a p i d decline to a low
of 0 , 8 9 3 p e r c e n t o n F e b r u a r y 1 1 , 1 9 5 4 , D u r i n g t h e r e n n a i n d e r of
t h e y e a r t h e r a t e f l u c t u a t e d b e t w e e n a h i g h of 1,066 p e r c e n t o n
A p r i l 15 a n d a l o w of 0 . 6 1 6 p e r c e n t o n J u n e 1 0 , t h e l o w e s t r a t e
s i n c e J u l y 10, 1 9 4 7 . T h e w e e k l y a v e r a g e r a t e s on n e w bill o f f e r i n g s
t h r o u g h o u t the y e a r a r e s h o w n in exhibit 16.
N o n c o m p e t i t i v e b i d s of $ 2 0 0 , 0 0 0 o r l e s s f r o m a n y o n e b i d d e r
o n a n i s s u e w e r e a c c e p t e d i n full a t t h e a v e r a g e p r i c e of t h e
a c c e p t e d c o m p e t i t i v e b i d s of t h a t i s s u e . T h e s e b i d s a v e r a g e d a
t o t a l of $ 2 3 0 m i l l i o n a w e e k ; a n d , i n t h e a g g r e g a t e , r e p r e s e n t e d
1 5 . 3 p e r c e n t of a l l t h e b i d s a c c e p t e d d u r i n g t h e y e a r .
T r e a s u r y b i l l s . T a x A n t i c i p a t i o n S e r i e s , - - T h e s a l e pf t h e s e
b i l l s w a s c o n t i n u e d d u r i n g the f i s c a l y e a r 1954 a s n e e d e d to i n c r e a s e t h e a m o u n t of T r e a s u r y r e c e i p t s t o m e e t a n t i c i p a t e d r e q u i r e nnents for c a s h when t a x c o l l e c t i o n s w e r e s e a s o n a l l y low, and a l s o
to p r o v i d e a n i n v e s t m e n t m e d i u m for funds a c c u m u l a t e d by c o r p o r a t i o n s to pay i n c o m e and profits t a x e s . T h e r e w e r e two i s s u e s
of t a x a n t i c i p a t i o n b i l l s , t o t a l i n g $ 2 . 5 b i l l i o n , i n 1 9 5 4 , c o m p a r e d
w i t h t h r e e i s s u e s , t o t a l i n g $ 5 . 3 b i l l i o n , in 1 9 5 3 . The 1954 i s s u e s
w e r e as follows:
Matui-ity
date
Issue
date
Mar
Apr
22 1954
27, 1954
June 24, 1954
June 18, 1954
Days to
maturity
•
94
52
AjTiount of
tenders accepted
(in billions)
Average rate
of discount
(percent)
$1.5
1.0
0.956
0.726
Both i s s u e s w e r e a c c e p t a b l e at p a r value in paynnent of i n c o m e
and p r o f i t s t a x e s due on June 15, 1954, To the extent the b i l l s w e r e
not p r e s e n t e d in p a y m e n t of t a x e s , the face a m o u n t was payable
without i n t e r e s t at m a t u r i t y .
C r e d i t in T r e a s u r y t a x and loan a c c o u n t s could not be given to
d e p o s i t a r i e s on s u b s c r i p t i o n s to the M a r c h b i l l s , a s was the c a s e
in like offerings in 1953, b e c a u s e the p r o c e e d s of this offering
w e r e u s e d to pay off t a x c e r t i f i c a t e s m a t u r i n g on M a r c h 22, The
b i l l s of the A p r i l offering, h o w e v e r , could be paid for by c r e d i t
in the T r e a s u r y tax and loan a c c o u n t s .
Additional i n f o r m a t i o n on t h e s e i s s u e s is contained in exhibits
14 and 15,
Nonmarketable issues
Nonnnarketable s e c u r i t i e s i s s u e d to the public d u r i n g the f i s c a l
y e a r 1954 t o t a l e d $ 9 . 3 billion and r e d e m p t i o n s , $ 9 . 0 b i l l i o n . The
net r i s e of $ 0 . 3 billion in the n o n m a r k e t a b l e i n t e r e s t - b e a r i n g s e c u r i t i e s outstanding r e s u l t e d f r o m i n c r e a s e s of $ 0 , 6 billion in T r e a s u r y s a v i n g s n o t e s and $0.2 billion in United States s a v i n g s bonds
outstanding offset by the r e d e m p t i o n of n e a r l y $ 0 , 5 billion of T r e a s u r y b o n d s , i n v e s t m e n t s e r i e s , 2-3/4 p e r c e n t . S e r i e s B - 1 9 7 5 - 8 0 , which
w e r e e x c h a n g e d for m a r k e t a b l e 5 - y e a r , 1-1/2 p e r c e n t T r e a s u r y
339256
0 - 5 5 - 4
30
1954 REPORT OF THE SECRETARY OF THE TREASURY
n o t e s . T h e a m o u n t s of t h e n o n n n a r k e t a b l e i n t e r e s t - b e a r i n g c l a s s e s
of s e c u r i t i e s o u t s t a n d i n g a t t h e e n d of J u n e 3 0 , 1 9 5 3 a n d 1 9 5 4 , w i t h
the c h a n g e s d u r i n g the y e a r , a r e shown in the following t a b l e .
June 30,
1953
Class of security
Increase, or
decrease (-)
June 30,
1954
In billions of dollars
United States savings bonds:
Series E
Series F and G
Series H
Series J and K
35.7
21.2
.4
.6
36.5
19.2
1.0
1.4
0.8
-2.1
0.6
0.8
Subtotal, savings bonds
Treasury savings notes
Treasury bonds, investment series
Depositary bonds
57.9
4.5
13.3
.4
58.1
5.1
12.8
0.2
0.6
-0.5
Total, interest-bearing nonmarketable issues.
(*)
0.3
76.1
*Less than $50 million.
Sales and r e d e m p t i o n s of public nonnnarketable i s s u e s o t h e r than
d e p o s i t a r y bonds a r e s u m n n a r i z e d in the a c c o m p a n y i n g t a b l e . In
addition to c a s h r e d e m p t i o n s , exchange offers w e r e a v a i l a b l e a s
follows: M a t u r i n g S e r i e s E bonds nnay be exchanged for S e r i e s K,
and S e r i e s F and G bonds which m a t u r e d f r o m May 1 through
D e c e m b e r 3 1 , 1953, m i g h t be exchanged for 3 - 1 / 4 p e r c e n t T r e a s u r y
bonds of 1 9 7 8 - 8 3 .
Class of Security
Total
issues^
Redeemed
for cash or
carried to
matured
debt^
Exchanged
for new
security
Total
dispositions^
In millions of dollars
United States savings bonds:
Series A-D
Series E
Series H
Series F and G
Series J and K
^ 5,114
665
2 . 121
3 ^ 827
18
4,318
26
2,120
31
3 6,727
6,513
2,591
18
5 1,963
1
4,319
26
1
2 121
2
6,515
31
^ 1,963
35
Total
9,317
478
513
8,511
480
8 991
^ Exclusive of depositary bonds; special notes of the United States: International Monetary Fund series;
and United States savings stamps. ^ Exclusive of armed forces leave bonds; depositary bonds; excess
profits tax refund bonds; special notes of the United States: International Monetary Fund series; and
United States savings stamps. - Includes accruals. '' The combined total includes approximately one mil^
lion dollars of bonds issued in exchange for other securities. ^ Includes tax and savings notes in the
amount of S849 million surrendered in payment of taxes.
31
REPORT ON FISCAL OPERATIONS
U n i t e d S t a t e s s a v i n g s b o n d s . - - R e c e i p t s f r o m s a l e s of s a v i n g s
b o n d s of a l l s e r i e s d u r i n g t h e f i s c a l y e a r 1 9 5 4 w e r e $ 5 . 5 b i l l i o h
( c o m p a r e d w i t h $ 4 . 6 b i l l i o n f o r 1953) a n d a c c r u e d d i s c o u n t c h a r g e d
to the i n t e r e s t a c c o u n t and c r e d i t e d to the s a v i n g s bond p r i n c i p a l
a c c o u n t a m o u n t e d t o $ 1 . 2 b i l l i o n , m a k i n g , a t o t a l of $ 6 . 7 b i l l i o n .
R e d e m p t i o n s of s a v i n g s b o n d s , i n c l u d i n g t h o s e m a t u r e d , a m o u n t e d
to $ 6 . 5 billion c o m p a r e d with $ 5 . 6 billion l a s t y e a r .
S i n c e 1 9 3 5 , w h e n s a v i n g s b o n d s w e r e f i r s t s o l d , t h e a m o u n t of
a l l s e r i e s of s a v i n g s b o n d s i s s u e d , i n c l u d i n g a c c r u e d d i s c o u n t ,
has totaled $117.6 billion, while r e d e m p t i o n s , including m a t u r e d
b o n d s , h a v e t o t a l e d $ 5 9 . 4 billion. On J u n e 30, 1954, the r e d e m p t i o n
v a l u e of t h e s a v i n g s b o n d s o u t s t a n d i n g w a s $ 5 8 . 2 b i l l i o n , o v e r
4 9 p e r c e n t of t h e a m o u n t i s s u e d .
S a l e s of S e r i e s E a n d H b o n d s , w h i c h t o g e t h e r w e r e n e a r l y
8 5 p e r c e n t of a l l s a v i n g s b o n d s s o l d i n 1 9 5 4 , t o t a l e d $ 4 . 7 b i l l i o n ,
i s s u e p r i c e , a n i n c r e a s e of $ 0 . 6 b i l l i o n o v e r s a l e s i n 1 9 5 3 a n d t h e
l a r g e s t e i m o u n t s i n c e 1 9 4 6 . R e d e m p t i o n s of S e r i e s E a n d H b o n d s
a m o u n t e d to $ 4 . 3 billion in 1954 c o m p a r e d with $ 4 . 0 billion in
1953. T h e a m o u n t o u t s t a n d i n g on J u n e 30, 1954, i n c l u d i n g a c c r u e d
d i s c o u n t , w a s $ 3 7 . 5 b i l l i o n , a n i n c r e a s e of $ 1 . 4 b i l l i o n d u r i n g
t h e y e a r . F o r t h e t h i r d s u c c e s s i v e y e a r , o w n e r s of a p p r o x i m a t e l y
7 5 p e r c e n t of t h e a m o u n t of S e r i e s E b o n d s t h u s f a r n n a t u r e d h a v e
continued to hold t h e i r m a t u r e d bonds u n d e r the optional e x t e n s i o n
plaji. See c h a r t 5.
E AND H BONDS, FISCALYEARS 1951-'54
$Bil.
Amounts Outstanding (June 50)
38
375
1951
'52
^ y
40
'53
'54
Redemptions
40
'•'
tured
43;
3.3:
'2.9;
'52
'53
tured
1951
'52
'53
1951
'54
Chart 5.
1 Less than $50 miUion.
'54
1954 REPORT OF THE SECRETARY OF THE TREASURY
32
I s s u e s of S e r i e s F , G, J, and K bonds c o m b i n e d t o t a l e d $841
million^ i s s u e p r i c e , in 1954 c o m p a r e d with i s s u e s in 1953 totaling
$501 m i l l i o n . R e d e m p t i o n s of S e r i e s F , G, J , and K bonds d u r i n g
the y e a r totaled $2,152 m i l l i o n ^ connpared with $1,552 m i l l i o n the
previous year.
The redemiptions of s a v i n g s bonds a s a p e r c e n t a g e of the total
sold, by y e a r l y s e r i e s , a r e s u m m a r i z e d below.
J, and K savings bonds sold in each year redeemed through each yearly
period thereafter^
[On
basis of Public Debt accounts. see ' Bases of Tables"
Redeemed by end o f —
Series and calendar year
in which issued
7
8
6
4
5
2
3
1
year years years years years years years years
9
10
11
12
13
years years years years years
Series E^
E-1941
E-1942
E-1943
E-1944
E-1945
E-1946
E-1947
E-1948
E-1949
E-1950
E-1951
E-1952
E-1953
.
-
3
8
15
19
28
23
21
20
22
26
29
29
28
6
15
24
33
38
34
30
30
34
36
38
39
10
21
34
41
45
40
37
39
40
41
44
14
29
41
47
50
45
43
44
44
45
18
35
• 47
52
54
51
47
47
47
23
40
51
56
58
54
50
49
27
44
55
60
61
56
52
30
48
58
62
63
58
3;
52
6L
6'
6
40
58
65
68
62
68
71
67
71
70
2CD
2ii
3
3.
L
3]
3C
24
31
36
34
27
34
39
68
60
97
Series F and G
F-1941
F-1942
F-1943
F-1944
F-1945
F-1946
F-1947
F-1948
F-1949
F-1950
F-1951
F-1952
and
and
and
and
and
and
and
and
and
and
and
and
G-1941
G-1942
G-1943
G-1944
G-1945
G-1946
G-1947
G-1948
G-1949
G-1950
G-1951
G-1952
1
1
2
2
2
3
3
2
3
3
4
6
3
4
6
6
7
7
8
5
9
9
9
12
5
7
10
10
11
12
12
9
13
11
14
7
11
14
14
14
15
17
11
17
15
10
14
19
18
18
20
21
13
20
13
18
22
21
21
23
24
16
15
21
26
25
24
27
28
18
24
29
28
27
30
Series H
H-i952
H-1953
3
3
8
Series J
J-1952
J-1953
2
2
o
Series K
K-1952
K-1953
2
3
6
1
NOTE.—The percentages shown in this table are 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.
^Percentages by denominations may be found in table 36.
^ Similar detail for Series A through E savings bonds may be found in the 1952 annual report, p. 77.
^Issues and redemptions erroneously included $16,669,888.50 on account of reissue transactions
during June 1954. This had no bearing upon totalseries F,G. J, and K outstanding June 30, 1954. The
error was adjusted in the July 1954 issue as reported in the daily Treasury statement.
REPORT ON FISCAL OPERATIONS
33
D e t a i l e d i n f o r m a t i o n on s a v i n g s b o n d s f r o m M a r c h 1935, w h e n
^ this s e c u r i t y w a s f i r s t offered, t h r o u g h June 30, 1954, i s given
i n t a b l e s 34 t h r o u g h 3 9 .
T r e a s u r y savings n o t e s . - - T w o official actions with r e s p e c t to
savings n o t e s p a r t i c u l a r l y affected t h e i r sale d u r i n g the y e a r . A
n e w s e r i e s , w i t h a l o w e r r e t u r n , w a s p l a c e d o n s a l e o n O c t o b e r 1,
1 9 5 3 , a n d o n O c t o b e r 2 3 t h e s a l e of s a v i n g s n o t e s w a s s u s p e n d e d
a n d n o t r e s u m e d . S a l e s i n t h e f i s c a l y e a r 1 9 5 4 , a l l of w h i c h w e r e
m a d e f r o m J u l y 1 t h r o u g h O c t o b e r 2 3 , 1953, a m o u n t e d to $ 2 . 6
billion, face annount, c o m p a r e d with $4.2 billion in the twelve
m o n t h s of f i s c a l 1 9 5 3 . R e d e n n p t i o n s i n f i s c a l 1 9 5 4 t o t a l e d s o m e w h i a t
l e s s than $ 2 . 0 billion, connpared with $ 6 . 4 billion in 1953. O f t h e
1 9 5 4 r e d e m p t i o n s , $ 8 4 9 m i l l i o n w a s a p p l i e d t o p a y m e n t of t a x e s
and $1.1 billion was r e d e e m e d for c a s h .
T h e n e w s e r i e s of T r e a s u r y s a v i n g s n o t e s , S e r i e s C , w i t h i n t e r e s t
r a t e s r e v i s e d d o w n w a r d to r e f l e c t c h a n g e s in the G o v e r n m e n t
s e c u r i t i e s n n a r k e t , w a s a n n o u n c e d by t h e S e c r e t a r y o f t h e T r e a s u r y
o n S e p t e m b e r 2 5 , 1 9 5 3 . O n t h a t d a t e t h e s a l e of S e r i e s B n o t e s ,
which had been offered since M a y 15, 1953, was t e r m i n a t e d . The
S e r i e s C n o t e s w e r e s i m i l a r to the d i s c o n t i n u e d S e r i e s B n o t e s ,
e x c e p t f o r t h e s c a l e of i n t e r e s t a c c r u a l . I n t e r e s t r a t e s o n t h e riew
n o t e s r a n g e d f r o m a p p r o x i m a t e l y 1.56 p e r c e n t p e r a n n u m if h e l d
f o r s i x m o n t h s t o 2 . 2 1 p e r c e n t p e r a n n u m if h e l d f o r t h e full t w o
y e a r s to n n a t u r i t y , a s c o m p a r e d w i t h r a t e s on t h e old n o t e s w h i c h
r a n g e d f r o m 2.16 p e r c e n t for the f i r s t six m o n t h s to 2.47 p e r c e n t
if h e l d t o m a t u r i t y . A t a b l e s h o w i n g t h e t a x - p a y m e n t o r r e d e m p t i o n
v a l u e s and i n v e s t m e n t yields i s contained in the official c i r c u l a r
w h i c h g a v e t h e t e r m s of t h e o f f e r i n g . I n a d d i t i o n , t h e o f f e r i n g
circular
c a r r i e d t h e n e w p r o v i s i o n t h a t t h e S e c r e t a r y of t h e
T r e a s u r y m i g h t , a t a n y t i m e , t e r m i n a t e t h e i s s u a n c e of t h e s e n o t e s
and m i g h t at a n y t i m e , o r f r o m t i m e to t i m e , a u t h o r i z e the i s s u a n c e
of a d d i t i o n a l n o t e s of t h i s s e r i e s w i t h s u c h o t h e r i n t e r e s t a c c r u a l s
a s he m a y p r e s c r i b e . (See exhibit 20.)
W h e n t h e s u s p e n s i o n of s a l e of T r e a s u r y s a v i n g s n o t e s . S e r i e s
C, w a s a n n o u n c e d on O c t o b e r 2 3 , it w a s s t a t e d t h a t t h e s u s p e n s i o n
w a s d u e t o t w o r e l a t e d c a u s e s : F i r s t , t h e d e t e r m i n a t i o n of t h e
a m o u n t of T r e a s u r y f i n a n c i n g i n t h e n e x t w e e k w o u l d b e d i f f i c u l t
i n v i e w of t h e u n c e r t a i n t i e s of f u t u r e d a i l y s a l e s of T r e a s u r y
s a v i n g s n o t e s u n d e r t h e c o n d i t i o n s t h e n c u r r e n t ; and s e c o n d , on
t h e b a s i s of t h e c u r r e n t s a l e s , t h e c o n t i n u o u s s a l e of s a v i n g s noteis
could c r e a t e a problenn in connection with the debt l i m i t .
S a l e s , r e d e m p t i o n s , a n d a m o u n t s o u t s t a n d f n g of T r e a s u r y s a v i n g s
n o t e s of a l l s e r i e s f r o m A u g u s t 1941 t h r o u g h J u n e 3 0 , 1 9 5 4 , a r e
s h o w n in t a b l e 4 0 .
34
1954 REPORT OF THE SECRETARY OF THE TREASURY
S p e c i a l s h o r t - t e r n n c e r t i f i c a t e s of i n d e b t e d n e s s
On two o c c a s i o n s d u r i n g the y e a r s p e c i a l s h o r t - t e r m c e r t i f i c a t e s
of i n d e b t e d n e s s w e r e s o l d d i r e c t l y t o t h e F e d e r a l R e s e r v e B a n k s .
T h e p u r p o s e of t h i s d i r e c t b o r r o w i n g a u t h o r i t y , p r o v i d e d b y s t a t u t e ,
i s to help m i n i m i z e the d i s t u r b i n g effects on the m o n e y nnarket and
b a n k r e s e r v e s of s h o r t - r u n p e a k s i n T r e a s u r y c a s h r e c e i p t s a n d
d i s b u r s e m e n t s , p a r t i c u l a r l y a r o u n d t h e t i m e of q u a r t e r l y i n c o n n e
t a x p a y m e n t s . T h i s a u t h o r i t y v/as u s e d in J a n u a r y and M a r c h in
a n t i c i p a t i o n of t h e r e c e i p t of q u a r t e r l y t a x p a y n n e n t s . S a l e s of
certificates aggregated $ 6 I 4 million. The certificates were r e d e e m e d from one to eleven d a y s after t h e i r i s s u e d a t e . I n t e r e s t
w a s p a i d o n t h e c e r t i f i c a t e s a t t h e r a t e of 1 / 4 of 1 p e r c e n t p e r a n n u m .
Special i s s u e s to G o v e r n m e n t i n v e s t m e n t
accounts
S p e c i a l s e r i e s of i n t e r e s t - b e a r i n g s e c u r i t i e s a r e i s s u e d b y t h e
T r e a s u r y f o r t h e i n v e s t m e n t of t r u s t a n d o t h e r f u n d s d e p o s i t e d i n
the T r e a s u r y o r p u r s u a n t to a p p r o p r i a t i o n s for specific p u r p o s e s .
T h e a m o u n t of s u c h o b l i g a t i o n s i n c r e a s e d b y $ 1 . 7 b i l l i o n d u r i n g
the y e a r . The m o s t significant i n c r e a s e s w e r e c r e d i t e d to the
F e d e r a l o l d - a g e and s u r v i v o r s i n s u r a n c e fund, the civil s e r v i c e
r e t i r e n n e n t fund, a n d t h e r a i l r o a d r e t i r e m e n t a c c o u n t . (See t a b l e 29.)
I n t e r e s t on the p u b l i c d e b t
I n t e r e s t p a i d on the d e b t d u r i n g the y e a r t o t a l e d $ 6 , 3 7 1 m i l l i o n
c o m p a r e d with $ 6 , 5 0 4 million,^ in 1953. The net d e c r e a s e w a s due
l a r g e l y t o u n u s u a l c i r c u m s t a n c e s i n v o l v i n g t h e t i m i n g of c e r t a i n
p a y m e n t s , a s w a s e x p l a i n e d e a r l i e r u n d e r '*Bi:/^get E x p e n d i t u r e s . "
The average annual i n t e r e s t rate as computed onthe total i n t e r e s t b e a r i n g public i s s u e s outstanding June 30, 1954, w a s 2.281 p e r c e n t
p e r a n n u m , and 2.342 p e r c e n t p e r annum for the total i n t e r e s t b e a r i n g debt, connpared with 2.381 p e r c e n t and 2.438 p e r c e n t p e r
a n n u m , r e s p e c t i v e l y , on J u n e 30, 1 9 5 3 .
S i n k i n g fund
C r e d i t s a c c r u i n g t o t h e c u m u l a t i v e s i n k i n g fund i n 1 9 5 4 a m o u n t e d
t o $ 6 2 0 m i l l i o n w h i c h , a d d e d t o t h e u n e x p e n d e d b a l a n c e of $ 9 , 0 5 7
m i l l i o n b r o u g h t f o r w a r d f r o m the p r e v i o u s y e a r , nnade a v a i l a b l e
$9,677 million. This unexpended balance was c a r r i e d forward to
t h e f i s c a l y e a r 1 9 5 5 . T a b l e s 32 a n d 33 s h o w t h e t r a n s a c t i o n s o n
a c c o u n t of t h i s fund s i n c e i t w a s e s t a b l i s h e d o n J u l y 1, 1 9 2 0 .
Statutory limitation
S e c t i o n 21 of t h e S e c o n d L i b e r t y B o n d A c t , a s a m e n d e d , p r o v i d e s
t h a t t h e f a c e a m o u n t of o b l i g a t i o n s i s s u e d u n d e r a u t h o r i t y of t h a t
a c t , a n d t h e f a c e a n n o u n t of o b l i g a t i o n s g u a r a n t e e d a s t o p r i n c i p a l
and i n t e r e s t by the United S t a t e s ( e x c e p t s u c h g u a r a n t e e d o b l i g a t i o n s a s n n a y b e h e l d b y t h e S e c r e t a r y of t h e T r e a s u r y ) , s h a l l
1 Adjusted to exclude $4,746,266 on account of interest fund on uninvested trust fundus.
REPORT ON FISCAL OPERATIONS
35
n o t e x c e e d i n t h e a g g r e g a t e $ 2 7 5 b i l l i o n ^ ( a c t of J u n e 2 6 , 1 9 4 6 ;
U . S . C . t i t l e 3 1 , s e c . 757b) o u t s t a n d i n g at a n y one tinne. F o r t h i s
p u r p o s e , t h e c u r r e n t r e d e m p t i o n v a l u e of a n y o b l i g a t i o n i s s u e d o n
a d i s c o u n t b a s i s w h i c h i s r e d e e m a b l e p r i o r to m a t u r i t y at the
o p t i o n of t h e h o l d e r s h a l l b e c o n s i d e r e d a s i t s f a c e a m o u n t . A s of
June 30, 1954, the u n u s e d b o r r o w i n g a u t h o r i z a t i o n w a s $4.2
b i l l i o n . T h e f a c e a n n o u n t of o b l i g a t i o n s o u t s t a n d i n g a n d t h e f a c e
a m o u n t w h i c h s t i l l c o u l d b e i s s u e d u n d e r t h i s l i m i t a t i o n a s of
J u n e 30, 1954, i s s h o w n in t a b l e 14, and f o r e a r l i e r y e a r s in
table 15.
Ownership of Federal Securities
A t t h e c l o s e of t h e f i s c a l y e a r 1 9 5 4 , p r i v a t e n o n b a n k i n v e s t o r s
h e l d $ 1 3 3 . 3 b i l l i o n , o r 4 9 p e r c e n t , of t h e t o t a l d e b t o u t s - t a n d i n g .
'*Private nonbank investors'* includes individuals, insurance c o m p a n i e s , nonfinancial c o r p o r a t i o n s and a s s o c i a t i o n s , pension funds,
foreign a c c o u n t s , and State and local g o v e r n m e n t s . The banking
s y s t e m , that i s , c o m m e r c i a l banks and the F e d e r a l R e s e r v e B a n k s ,
h e l d $ 8 8 . 7 b i l l i o n , o r 3 3 p e r c e n t , of t h e d e b t . T h e r e m a i n d e r of
t h e d e b t , $ 4 9 . 3 b i l l i o n , o r 18 p e r c e n t , w a s h e l d i n t h e G o v e r n n n e n t * s
own i n v e s t m e n t a c c o u n t s - - s o c i a l s e c u r i t y funds, retirennent funds,
etc.
The p r i n c i p a l change that took place during the y e a r was that the
h o l d i n g s of p r i v a t e n o n b a n k i n v e s t o r s d e c r e a s e d b y $ 1 . 7 b i l l i o n ,
while bank h o l d i n g s i n c r e a s e d by $5.1 billion. T h i s w a s in s h a r p
c o n t r a s t to the p r e v i o u s fiscal y e a r when t h e r e was a $4.2 billion
i n c r e a s e i n n o n b a n k o w n e r s h i p of t h e d e b t a n d a s m a l l n e t d e c l i n e
in bank o w n e r s h i p .
T h e s h i f t t o s o m e w h a t g r e a t e r b a n k o w n e r s h i p of t h e d e b t w a s
l a r g e l y a c c o u n t e d f o r by t h e fact t h a t t h e T r e a s u r y ' s n e w s e c u r i t y
o f f e r i n g s d u r i n g 1954 w e r e p r i m a r i l y d e s i g n e d to a p p e a l to c o m m e r c i a l b a n k s . T h i s w a s done to avoid any tightening effects on
the m o n e y nnarket at a t i m e when the F e d e r a l R e s e r v e S y s t e m w a s
f o l l o w i n g a p r o g r a m of a c t i v e c r e d i t e a s e i n o r d e r t o e n c o u r a g e
t h e p r i v a t e c a p i t a l e x p a n s i o n n e e d e d t o a s s u r e a h i g h l e v e l of
economic activity.
T h e following t a b l e p r e s e n t s f i g u r e s on bank and n o n b a n k o w n e r s h i p , t o g e t h e r w i t h p e r t i n e n t d e t a i l o n t h e h o l d i n g s of F e d e r a l
s e c u r i t i e s b y t h e v a r i o u s i n v e s t o r c l a s s e s . T h e i r h o l d i n g s a s of
J u n e 30, 1954, a r e s h o w n in c h a r t 6.
Individuals w e r e the l a r g e s t single i n v e s t o r g r o u p in the F e d e r a l
d e b t o w n e r s h i p s t r u c t u r e o n J u n e 3 0 , 1 9 5 4 . T h e i r h o l d i n g s of F e d e r a l
s e c u r i t i e s a m o u n t e d to $ 6 4 . 5 billion, with United States s a v i n g s
b o n d s a c c o u n t i n g f o r o v e r t h r e e - f o u r t h s of t h e t o t a l . W h i l e t h e r e
w a s a $ 1 . 3 b i l l i o n d e c l i n e i n i n d i v i d u a l s ' t o t a l h o l d i n g s of t h e d e b t
d u r i n g the f i s c a l y e a r 1954, t h e i r s a v i n g s bonds investnnents w e r e
i n c r e a s e d . S e r i e s E and H s a v i n g s b o n d s h e l d by i n d i v i d u a l s r o s e
by $ 1 . 4 b i l l i o n w h i c h m o r e t h a n offset a d e c r e a s e i n t h e i r h o l d i n g s
of o t h e r s e r i e s of s a v i n g s b o n d s . A t t h e e n d of t h e y e a r , i n d i v i d u a l s '
h o l d i n g s of a l l s a v i n g s b o n d s w e r e u p b y $ . 3 b i l l i o n . T h e n e t
^ This amount was increased temporarily by $6 billion beginning on August 28, 1954, and ending
on June 30, 1955, by Public Law 686, approved August 28, 1954 (68 Stat. 895).
36
1954 REPORT OF THE SECRETARY OF THE TREASURY
Ownership of Federal securities, by investor classes, for selected dates . 1941-54^
June 30,
1941
Feb. 28,
1946^
June 30,
1953
June 30,
1954
Change
during
fiscal
year
1954
Amounts in billions of dollars
Estimated ovnershlp by:
Private nonbank investors:
Individuals^
,,,
Insurance companies
....,.,.,,.,... .
Mutual savings banks
,..,.., .
Corporations*
,
state and local governments
Miscellaneous investors'
,,
2.0
.6
.7
64.1
24.4
11.1
19.9
6.7
8.9
65.8
16.0
9.5
18.9
12.0
12.8
64.5
15.3
9.1
16.8
14.3
13.4
-1.3
-.7
-.4
-2.1
+2.3
+ .6
25.0
8.5
135.1
28.0
135.0
47.6
133.3
49.3
-1.7
+1.8
19.7
2.2
93.8
22.9
58.8
24.7
63.6
25.0
+4.8
+ .3
Total banks
21.8
116.7
83.6
88.7
+5.1
Total gross debt outstanding
55.3
279.8
266.1
271.3
+5.2
Total private nonbank Investors,,
Federal Government investment accdunts
Banks:
Commercial banks
Federal Reserve Banks
,
11.2
7.1
Percent of total
Percent owned by:
Private nonbank Investors:
Individuals
Other
Total
Banks
,
Total gross debt outstanding
20
26
23
25
25
26
24
25
46
15
39
48
10
42
51
18
31
49
18
33
100
100
100
100
^ Gross public debt, and guaranteed obligations of the Federal Govemment held outside the Treasury.
2 Peak of debt.
' Includes partnerships and personal trust accounts. Nonprofit Institutions suid corporate pension trust
funds are included under "Miscellaneous investors."
Exclxisive of bsuiks and insurance companiee.
Includes savings and loan associations, nonprofit institutions, corporate pension trust funds, dealers
and brokers, and investments of foreign balances Eind International accounts in this country.
d e c l i n e in i n d i v i d u a l s ' holdings of G o v e r n m e n t s e c u r i t i e s w a s due
to a $ 1 . 6 billion d e c r e a s e in t h e i r holdings of m a r k e t a b l e s e c u r i t i e s .
O v e r half of the d e c l i n e t o o k p l a c e in the f i r s t half of the f i s c a l y e a r .
I n d i v i d u a l s ' holdings of F e d e r a l s e c u r i t i e s a r e still well above the
peak of t h e i r holdings d u r i n g World War II financing.
Holdings of F e d e r a l s e c u r i t i e s by i n s u r a n c e connpanies on June 30,
1954, a m o u n t e d to $ 1 5 . 3 billion, a d e c r e a s e of about $.7 billion
d u r i n g the y e a r , m a r k i n g the resunnption of d e c r e a s e s that have
been t y p i c a l of the e n t i r e p o s t w a r p e r i o d . N e a r l y $ 9 - 1 / 2 billions of
t h e s e F e d e r a l s e c u r i t i e s w e r e in the p o r t f o l i o s of life i n s u r a n c e
c o m p a n i e s whose i n v e s t m e n t s w e r e s t i l l p r e d o m i n a n t l y in l o n g - t e r m
s e c u r i t i e s . The a v e r a g e length of t h e i r m a r k e t a b l e s e c u r i t y holdings
to m a t u r i t y on June 30, 1954, was 9.2 y e a r s ( c a l l a b l e bonds to f i r s t
c a l l d a t e ) . Life i n s u r a n c e c o m p a n i e s continued to r e d u c e t h e i r
holdings d u r i n g 1954, following the t r e n d which began eight y e a r s
ago a s new i n v e s t m e n t o p p o r t u n i t i e s a p p e a r e d in the form of an
i n c r e a s e d supply of m o r t g a g e s and c o r p o r a t e s e c u r i t i e s . T h e r e
had been s o m e s l a c k e n i n g in t h e i r r a t e of r e d u c t i o n in the p r e v i o u s
f i s c a l y e a r , but in 1954 t h e s e c o m p a n i e s i n c r e a s e d t h e i r l i q u i d a tion of G o v e r n m e n t s e c u r i t i e s to $.7 billion. The F e d e r a l s e c u r i t y
37
REPORT ON FISCAL OPERATIONS
OWNERSHIP OF THE DEBT, JUNE 30,1954.
TOTAL
Gov't. Invest.
Accounts
Nonbank Investors
Banks
$Bil.
491^2
\lndividuais
200
m ^^Institutions
*
IOO
^Coml
A l l ottier 1 ^
z^lh'\
Federal
A Reserve
Chart 6.
p o r t f o l i o s of f i r e , n n a r i n e , and c a s u a l t y i n s u r a n c e c o m p a n i e s
w e r e v i r t u a l l y unchanged in 1954. T h i s c o n t r a s t s s h a r p l y with the
i n c r e a s e of one-half billion d o l l a r s in 1953.
Mutual s a v i n g s bank holdings of F e d e r a l s e c u r i t i e s on June 30,
1954, a m o u n t e d to $ 9 . 1 billion. The a v e r a g e length to nnaturity on
t h e i r holdings on J u n e 30, 1954, was 8.9 y e a r s . Like life i n s u r a n c e
c o m p a n i e s , nn utual s a v i n g s banks have a l s o been engaged a c t i v e l y
in i n c r e a s i n g t h e i r m o r t g a g e and c o r p o r a t e s e c u r i t y p o r t f o l i o s
s i n c e the end of World War II. Again, like the life i n s u r a n c e c o m p a n i e s , t h e i r e x p a n s i o n of m o r t g a g e and c o r p o r a t e s e c u r i t y holdings
d u r i n g 1954 was a c c o m p a n i e d by a g r e a t e r liquidation of F e d e r a l
s e c u r i t i e s than had been the c a s e in the p r e v i o u s f i s c a l y e a r .
Mutual s a v i n g s bank holdings d e c l i n e d by $.4 billion in 1954, a s
c o m p a r e d with a d e c l i n e of l e s s than $50 m i l l i o n in the p r e c e d i n g
year.
Holdings of F e d e r a l s e c u r i t i e s by c o r p o r a t i o n s o t h e r than banks
and i n s u r a n c e c o m p a n i e s d e c l i n e d by o v e r $2 billion d u r i n g the
f i s c a l y e a r 1954, a d e c l i n e accounted for in p a r t by a l o w e r l e v e l
of c o r p o r a t i o n i n c o m e tax l i a b i l i t i e s in 1954, In addition, the Revenue
Act of 1950 p r o v i d e d for an i n c r e a s i n g s h a r e of c o r p o r a t e i n c o m e
t a x e s to be paid d u r i n g the f i r s t half of e a c h c a l e n d a r y e a r . The
i n c r e a s i n g b u r d e n of c o r p o r a t e tax p a y m e n t s in M a r c h and June
in c o m p a r i s o n with the r e s t of the y e a r h a s a d i r e c t effect on the
c o r p o r a t i o n s ' G o v e r n m e n t s e c u r i t y p o r t f o l i o s , which a r e tending
m o r e and m o r e to be d r a w n down d u r i n g t h e s e m o n t h s and then
38
1954 REPORT OF THE SECRETARY OF THE TREASURY
built up a g a i n d u r i n g the p e r i o d f r o m J u l y t h r o u g h F e b r u a r y . (See
a l s o * * S u m m a r y of F i s c a l O p e r a t i o n s " i n t h i s s e c t i o i i . ) C o r p o r a t i o n
h o l d i n g s of F e d e r a l s e c u r i t i e s a m o u n t e d t o $ 1 6 . 8 b i l l i o n o n J u n e 3 0 ,
1954, about
$5.3 billion below the s e a s o n a l peak r e a c h e d in
F e b r u a r y 1954.
H o l d i n g s of F e d e r a l s e c u r i t i e s b y S t a t e a n d i o c a l g o v e r n m e n t s o n
J u n e 3 0 , 1 9 5 4 , a m o u n t e d t o $ 1 4 . 3 b i l l i o n . T h e g r o w t h of $ 2 . 3 b i l l i o n
was a r e c o r d annual i n c r e a s e , even exceeding the i n c r e a s e s during
W o r l d W a r I I , w h e n t h e p o s t p o n e m e n t of c a p i t a l o u t l a y s r e s u l t e d i n
a n e x p a n s i o n of r e s e r v e f u n d s . A b o u t o n e - t h i r d of t h e i r F e d e r a l
s e c u r i t y holdings a r e in State and local pension r e s e r v e s and the
r e m a i n d e r i s in sinking funds, o p e r a t i n g funds, and v a r i o u s special
funds.
M i s c e l l a n e o u s i n v e s t o r s h e l d a p p r o x i m a t e l y $ 1 3 . 4 b i l l i o n of
F e d e r a l s e c u r i t i e s on J u n e 30, 1954. C o r p o r a t e p e n s i o n t r u s t s
a c c o u n t e d f o r a b o u t $ 2 - 1 / 2 b i l l i o n of t h e t o t a l , s h o w i n g a s l i g h t
i n c r e a s e d u r i n g the y e a r . The m o s t i m p o r t a n t factor in the i n c r e a s e
of $ . 6 b i l l i o n i n t h e h o l d i n g s of m i s c e l l a n e o u s i n v e s t o r s d u r i n g t h e
y e a r c a m e a b o u t a s a r e s u l t of t h e e x p a n d e d i n v e s t m e n t i n F e d e r a l
s e c u r i t i e s of f o r e i g n a c c o u n t b a l a n c e s i n t h e U n i t e d S t a t e s . T h e s e
i n v e s t m e n t b a l a n c e s , t o g e t h e r with s e c u r i t i e s h e l d by v a r i o u s
i n t e r n a t i o n a l o r g a n i z a t i o n s , nnade up n e a r l y $ 6 billion o f t h e t o t a l
h o l d i n g s of m i s c e l l a n e o u s i n v e s t o r s o n J u n e 3 0 , 1 9 5 4 . T h e r e m a i n i n g i n v e s t o r c l a s s e s in the m i s c e l l a n e o u s c a t e g o r y include
savings and loan a s s o c i a t i o n s , nonprofit institutions, d e a l e r s and
b r o k e r s , and certain s m a l l e r institutional g r o u p s .
G o v e r n m e n t i n v e s t m e n t a c c o u n t s i n c r e a s e d t h e i r h o l d i n g s of
G o v e r n m e n t , s e c u r i t i e s by $ 1 . 8 b i l l i o n d u r i n g t h e y e a r , c o n t i n u i n g
their net growth which has c h a r a c t e r i z e d practically every year
d u r i n g the p a s t two d e c a d e s . On June 30, 1954, G o v e r n m e n t i n v e s t m e n t a c c o u n t s h e l d $ 4 9 . 3 b i l l i o n of F e d e r a l s e c u r i t i e s o r n n o r e
t h a n o n e - s i x t h of t h e e n t i r e d e b t . Of t h i s t o t a l $ 4 2 . 2 b i l l i o n o r
a p p r o x i m a t e l y 86 p e r c e n t w a s i n t h e f o r m of s p e c i a l i s s u e s p l a c e d
o n l y w i t h t h e s e a c c o u n t s . D e t a i l s of t h e o w n e r s h i p of s e c u r i t i e s
b y t h e s e G o v e r n m e n t i n v e s t m e n t a c c o u n t s , t h e l a r g e r of w h i c h a r e
the s o c i a l s e c u r i t y , v e t e r a n s ' life i n s u r a n c e , and G o v e r n m e n t
e m p l o y e e s ' r e t i r e m e n t funds, a r e shown in table 51.
C o m m e r c i a l b a n k s h e l d $ 6 3 . 6 b i l l i o n of F e d e r a l s e c u r i t i e s a t
t h e e n d of t h e f i s c a l y e a r 1 9 5 4 , a n i n c r e a s e of $ 4 . 8 b i l l i q n o v e r
J u n e 3 0 , 1 9 5 3 . A s m e n t i o n e d a t t h e b e g i n n i n g of t h i s s e c t i o n , t h e
i n c r e a s e i s attributable to the fact that the T r e a s u r y ' s new s e c u r i t y
o f f e r i n g s d u r i n g 1954 w e r e p r i m a r i l y d e s i g n e d to a p p e a l to c o m m e r c i a l b a n k s . M u c h of t h i s f i n a n c i n g , h o w e v e r , w a s d o n e t h r o u g h
t h e i s s u a n c e of i n t e r m e d i a t e - t e r m n o t e s a n d b o n d s w h i c h p e r m i t t e d the T r e a s u r y to extend the debt s o m e w h a t and the c o m m e r c i a l
banks to lengthen out t h e i r own p o r t f o l i o s . As a r e s u l t t h e r e w e r e
s u b s t a n t i a l c h a n g e s i n t h e s t r u c t u r e of t h e c o m n n e r c i a l b a n k
p o r t f o l i o s of G o v e r n n n e n t s . M a r k e t a b l e i s s u e s m a t u r i n g o r c a l l a b l e
w i t h i n o n e y e a r d e c l i n e d f r o m a b o u t o n e - h a l f of t o t a l h o l d i n g s t o
a r o u n d o n e - t h i r d . T h e r e w a s l i t t l e c h a n g e i n t h e p r o p o r t i o n of
m a r k e t a b l e m a t u r i n g in the o n e - to f i v e - y e a r a r e a , but i s s u e s
REPORT ON FISCAL OPERATIONS
39
m a t u r i n g ( o r c a l l a b l e ) a f t e r five y e a r s i n c r e a s e d f r o m about o n e e i g h t h t o o v e r o n e - q u a r t e r of t h e t o t a l h o l d i n g s of G o v e r n m e n t
. s e c u r i t i e s . O n b a l a n c e , t h e a v e r a g e l e n g t h of t h e m a r k e t a b l e
s e c u r i t i e s held by c o m m e r c i a l banks i n c r e a s e d from 2.5 y e a r s
to 3.6 y e a r s i n t h e y e a r ending J u n e 30, 1954. C o m m e r c i a l bank
h o l d i n g s of n o n m a r k e t a b l e i s s u e s s h o w e d l i t t l e c h a n g e .
A n a n a l y s i s of t h e e s t i m a t e d c h a n g e s i n b a n k v e r s u s n o n b a n k
o w n e r s h i p of F e d e r a l s e c u r i t i e s d u r i n g t h e f i s c a l y e a r 1 9 5 4 i s
s h o w n b y t y p e of i s s u e i n t h e f o l l o w i n g t a b l e .
E s t i m a t e d changes in ownership of F e d e r a l s e c u r i t i e s by type of i s s u e , fiscal year 1954^
[In b i l l i o n s of dollars]
Change accounted for b y Total
changes
Private
nonbank
investors
Goveriunent
investment
accounts
Banks
Total
Commercial
Federal
Reserve
Marketable securities:
Nonmarketable securities, etc.:
United States savings bonds
-0.2
2.6
1.5
-.8
-0.6
.4
1.3
-3.2
3.0
Certificates of indebtedness
-2.2
.2
.6
.2
.6
1.7
-.5
.2
-.5
.2
-0.1
.
1
0.5
2.1
.2
2.3
-0.3
.5
1.0
3.7
0.9
1.6
_.7
-1 4
.1
5.2
4.9
.
3
(*)
(*)
(*)
Special issues to Government investmertt
Other
1.7
2.2
.5
1.7
5.2
-1.7
1.8
{*)
5.
-1
()
*
4.8
.3
*Less than $50 million.
• Gross public debt, and guaranteed obligations of the Federal Government held outside the Treasury.
'
•
As d i s c u s s e d i n t h e p r e c e d i n g s e c t i o n on public debt o p e r a t i o n s ,
m a r k e t a b l e s e c u r i t i e s a s a whole i n c r e a s e d by $ 3 . 0 billion d u r i n g
the y e a r . O v e r half of the $ 4 billion i n c r e a s e in c e r t i f i c a t e s and
n o t e s w a s taken by t h e banking systenn. P r i v a t e nonbank i n v e s t o r s
a s a whole d e c r e a s e d t h e i r holdings of m a r k e t a b l e bonds by o v e r
$ 3 billion d u r i n g the y e a r . T h i s i s in s h a r p c o n t r a s t to an i n c r e a s e
in t h e i r holdings of bonds by o v e r $ 3 - 1 / 2 billion i n t h e p r e v i o u s
fiscal year.
P r i v a t e nonbank i n v e s t o r s , p r i n c i p a l l y c o r p o r a t i o n s , i n c r e a s e d
t h e i r holdings of s a v i n g s n o t e s by a p p r o x i m a t e l y $ . 6 billion, even
though s a l e s of t h e s e n o t e s w e r e s u s p e n d e d in October 1953.
Meanwhile v a r i o u s nonbank i n v e s t o r s e x c h a n g e d about $ 1 / 2 b i l l i o n
of t h e i r holdings of 2 - 3 / 4 p e r c e n t n o n m a r k e t a b l e i n v e s t m e n t bonds
for f i v e - y e a r m a r k e t a b l e n o t e s d u r i n g t h e s a m e p e r i o d . The m a j o r
c h a n g e s in s a v i n g s bonds holdings w e r e d e s c r i b e d in the p r e c e d i n g
d i s c u s s i o n of i n d i v i d u a l s ' holdings of F e d e r a l s e c u r i t i e s .
40
1954 REPORT OF THE SECRETARY OF THE TREASURY
CORPORATIONS AND CERTAIN OTHER BUSINESS-TYPE
ACTIVITIES OF THE GOVERNMENT
Lending and o t h e r o p e r a t i o n s of G o v e r n m e n t c o r p o r a t i o n s and
c e r t a i n b u s i n e s s - t y p e a c t i v i t i e s a r e financed fronn t h e i r own
r e c e i p t s , fronn b o r r o w i n g s from the United S t a t e s T r e a s u r y , by
funds obtained from s a l e of obligations to the p u b l i c , o r by a p p r o p r i a t i o n s . The S e c r e t a r y of the T r e a s u r y i s a u t h o r i z e d by law to
p u r c h a s e obligations of m a n y of the a g e n c i e s and to e s t a b l i s h the
t e r m s amd conditions of such o b l i g a t i o n s . In a c c o r d a n c e with the
Governnnent C o r p o r a t i o n C o n t r o l Act (31 U.S.C. 868), obligations
i s s u e d to the public by c e r t a i n a g e n c i e s m u s t be approved by the
S e c r e t a r y of the T r e a s u r y . A few of the a g e n c i e s a r e e x e m p t from
the p r o v i s i o n s of the act with r e s p e c t to the i s s u a n c e of t h e i r
obligations to the public but a r e r e q u i r e d to consult with the
S e c r e t a r y of the T r e a s u r y before i s s u i n g s u c h o b l i g a t i o n s .
I n t e r e s t on b o r r o w i n g s from the T r e a s u r y
I n t e r e s t r a t e s on b o r r o w i n g s from the T r e a s u r y a r e adjusted
by the T r e a s u r y to keep them in line with the i n t e r e s t c o s t s to
the T r e a s u r y on i t s b o r r o w i n g s . When r e q u i r e d by law, the T r e a s u r y
t a k e s into c o n s i d e r a t i o n the a v e r a g e i n t e r e s t r a t e on outstanding
m a r k e t a b l e obligations of the United S t a t e s . I n t e r e s t r a t e s h a v e
been e s t a b l i s h e d that a l s o take into account the cost which the
T r e a s u r y m u s t pay to b o r r o w nnoney in the p r e s e n t m a r k e t ,
a s r e f l e c t e d by p r e v a i l i n g nnarket yields on United S t a t e s G o v e r n nnent obligations with m a t u r i t i e s c o r r e s p o n d i n g to the approxinnate
d u r a t i o n of the loans m a d e by the a g e n c i e s .
A d v a n c e s by the T r e a s u r y
During the f i s c a l y e a r 1954 the T r e a s u r y m a d e c a s h a d v a n c e s of
$ 9 , 9 0 2 . 7 nnillion^ to Governnnent c o r p o r a t i o n s and a g e n c i e s . R e p a y m e n t s and refundings of $ 8,193.3 nnillion^ and c a n c e l l a t i o n s of
$956.8 nnillion a s a u t h o r i z e d by law, r e s u l t e d in n e t a d v a n c e s by
the T r e a s u r y of $752.6 m i l l i o n . Table 75 shows d e t a i l s on a d v a n c e s
and r e p a y m e n t s by e a c h a g e n c y and T r e a s u r y holdings of o b l i g a t i o n s .
B o r r o w i n g a u t h o r i t y and obligations outstanding
The g r o s s b o r r o w i n g a u t h o r i t y of v a r i o u s a g e n c i e s was i n c r e a s e d
d u r i n g the f i s c a l y e a r 1954. The C o m m o d i t y C r e d i t C o r p o r a t i o n
r e c e i v e d the l a r g e s t i n c r e a s e , $1,750 m i l l i o n . T h i s i n c r e a s e was
nnade in a c c o r d a n c e with P u b l i c Law 312, 83d C o n g r e s s , a p p r o v e d
M a r c h 20, 1954, to help the c o r p o r a t i o n fulfill i t s s t a t u t o r y r e s p o n s i b i l i t i e s u n d e r the p r i c e support p r o g r a n n . Table 72 shows the
a u t h o r i z e d b o r r o w i n g p o w e r as of June 30, 1954, of G o v e r n m e n t
c o r p o r a t i o n s and c e r t a i n b u s i n e s s - t y p e a c t i v i t i e s and the annount
of obligations a c t u a l l y o u t s t a n d i n g . Unused b o r r o w i n g a u t h o r i t y
^Includes noncash exchanges of notes amounting to $90.2 million and transfers of notes amounting
to $133.5 million.
REPORT ON FISCAL OPERATIONS
41
o f t h e G o v e r n m e n t c o r p o r a t i o n s and a c t i v i t i e s a m o u n t e d to $ 18,266.7
m i l l i o n a s of J u n e 3 0 , 1 9 5 4 . T h e u n u s e d b o r r o w i n g a u t h o r i t y a s
of J u n e 3 0 , 1 9 5 3 , w a s $ 1 7 , 4 6 6 . 6 m i l l i o n .
A s s e t s , l i a b i l i t i e s , and capital
A s s e t s of G o v e r n m e n t c o r p o r a t i o n s a n d c e r t a i n b u s i n e s s - t y p e
a c t i v i t i e s s u b m i t t i n g r e p o r t s t o t h e U n i t e d S t a t e s T r e a s u r y a s of
J u n e 3 0 , 1 9 5 4 , a m o u n t e d t o $ 5 5 , 3 2 7 . 0 m i l l i o n , c o n s i s t i n g of
$ 3 3 , 6 2 3 . 4 m i l l i o n in loans r e c e i v a b l e , $3,368.8 m i l l i o n in c o m nnodities, s u p p l i e s , and m a t e r i a l s ,
$8,076.6 m i l l i o n in land,
s t r u c t u r e s , and e q u i p m e n t , and $10,258.1 nnillion in o t h e r a s s e t s .
L i a b i l i t i e s of t h e a g e n c i e s a n n o u n t e d t o $ 2 0 , 6 5 9 . 5 m i l l i o n . T o t a l
bonds, d e b e n t u r e s , and n o t e s p a y a b l e a m o u n t e d to $ 16,156.3 m i l l i o n ,
of w h i c h t h e T r e a s u r y h e l d $ 1 2 , 8 6 6 . 1 m i l l i o n . A c c o u n t s p a y a b l e ,
t r u s t and deposit l i a b i l i t i e s , and all o t h e r liabilities totaled
$ 4 , 5 0 3 . 2 m i l l i o n . T h e t o t a l n e t i n v e s t m e n t of t h e U n i t e d S t a t e s
G o v e r n m e n t i n t h e s e a g e n c i e s a s of J u n e 3 0 , 1 9 5 4 , a n n o u n t e d t o
$ 3 4 , 1 8 1 . 3 m i l l i o n , w h i c h c o n s i s t e d of p a i d - i n c a p i t a l , e a r n i n g s ,
deficits, and expended a p p r o p r i a t i o n s . B a l a n c e s h e e t s r e c e i v e d
from t h e s e G o v e r n m e n t c o r p o r a t i o n s and b u s i n e s s - t y p e activities
of t h e G o v e r n m e n t a r e p u b l i s h e d q u a r t e r l y i n t h e
''Treasury
B u l l e t i n " a n d s h o w t h e a m o u n t a n d c l a s s i f i c a t i o n of t h e i r a s s e t s ,
l i a b i l i t i e s , and c a p i t a l , t o g e t h e r w i t h t h e c a p i t a l owned by t h e
U n i t e d S t a t e s a n d t h a t p r i v a t e l y o w n e d . A n a n a l y s i s of t h e i n v e s t m e n t of t h e U n i t e d S t a t e s i s a l s o i n c l u d e d . T h e b a l a n c e s h e e t s a s of
J u n e 3 0 , 1 9 5 4 , a r e s h o w n i n t a b l e 77 of t h i s r e p o r t . T a b l e 76 s h o w s
a c o m p a r a t i v e s t a t e m e n t of t h e a s s e t s , l i a b i l i t i e s , a n d c a p i t a l of
G o v e r n m e n t c o r p o r a t i o n s a n d c e r t a i n b u s i n e s s - t y p e a c t i v i t i e s a s of
June 30, 1945-54.
A statennent s h o w i n g i n c o m e , e x p e n s e , and c h a n g e s in u n r e s e r v e d s u r p l u s o r d e f i c i t of t h e G o v e r n m e n t c o r p o r a t i o n s a n d
c e r t a i n b u s i n e s s - t y p e a c t i v i t i e s f o r t h e f i s c a l y e a r 1954 a p p e a r s
i n t a b l e 7 8 . A s t a t e m e n t s h o w i n g t h e s o u r c e a n d a p p l i c a t i o n of
f u n d s of t h e s e a g e n c i e s d u r i n g t h e f i s c a l y e a r 1 9 5 4 i s s h o w n i n
table 79.
R e p a y m e n t s of c a p i t a l s t o c k
D u r i n g the f i s c a l y e a r 1954, G o v e r n m e n t c o r p o r a t i o n s m a d e
c a p i t a l s t o c k r e p a y m e n t s of $ 4 2 . 7 nnilliono R e p a y m e n t s i n 1 9 5 3
a m o u n t e d to $ 7 . 8 m i l l i o n . D u r i n g 1954 t h e F e d e r a l Savings and
Loan I n s u r a n c e C o r p o r a t i o n d e p o s i t e d $ 8 . 8 nnillion in m i s c e l l a n e o u s
r e c e i p t s of t h e T r e a s u r y , a n d t h e S m a l l e r W a r P l a n t s C o r p o r a t i o n
(in l i q u i d a t i o n by 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 ) d e p o s i t e d
$1.2 m i l l i o n . The banks for c o o p e r a t i v e s and the production c r e d i t
c o r p o r a t i o n s , through the Farnn Credit Administration, deposited
$ 2 8 . 5 nnillion and $4.2 nnillion, r e s p e c t i v e l y , in r e v o l v i n g funds
m a i n t a i n e d in the T r e a s u r y . A statennent showing capital stock
r e p a y m e n t s a p p e a r s in table 82.
O t h e r paynnents to the
Treasury
P a y m e n t s of d i v i d e n d s , i n t e r e s t , a n d s i m i l a r p a y m e n t s d e p o s i t e d
into the T r e a s u r y by G o v e r n m e n t c o r p o r a t i o n s and c e r t a i n o t h e r
42
1954 REPORT OF THE SECRETARY OF THE TREASURY
b u s i n e s s - t y p e a c t i v i t i e s a m o u n t e d to $ 3 5 9 . 6 nnillion d u r i n g t h e
f i s c a l y e a r 1954, a s connpared with $ 2 9 5 . 9 nnillion d u r i n g the f i s c a l
y e a r 1 9 5 3 . D e t a i l e d i n f o r m a t i o n on s u c h p a y m e n t s a p p e a r s in
table 83.
O u t s t a n d i n g o b l i g a t i o n s g u a r a n t e e d by t h e United S t a t e s
A s of J u n e 3 0 , 1 9 5 4 , o u t s t a n d i n g o b l i g a t i o n s g u a r a n t e e d b y t h e
U n i t e d S t a t e s a n n o u n t e d t o $ 8 1 . 4 n n i l l i o n , of w h i c h $ 8 0 . 4 m i l l i o n
c o n s i s t e d of u n m a t u r e d o u t s t a n d i n g o b l i g a t i o n s i s s u e d b y t h e F e d e r a l
Housing Administration and $1.0 millionmatured^obligations issued
by t h e F e d e r a l F a r m M o r t g a g e C o r p o r a t i o n a n d t h e H o m e O w n e r s '
L o a n C o r p o r a t i o n . F u n d s a r e o n d e p o s i t w i t h t h e T r e a s u r e r of t h e
U n i t e d S t a t e s f o r p a y m e n t of t h e m a t u r e d o b l i g a t i o n s .
The u n m a t u r e d o u t s t a n d i n g g u a r a n t e e d o b l i g a t i o n s i s s u e d by t h e
F e d e r a l H o u s i n g A d m i n i s t r a t i o n a r e f o r p a y n n e n t of d e f a u l t e d a n d
foreclosed insured m o r t g a g e s . Any obligations this agency i s s u e s
a r e g u a r a n t e e d a s t o p a y m e n t of p r i n c i p a l a n d i n t e r e s t b y t h e
U n i t e d S t a t e s . T h e a u t h o r i z a t i o n s r e p r e s e n t t h e m a x i m u m l i m i t of
a u t h o r i t y t o i n s u r e m o r t g a g e s . T h e a u t h o r i t y of t h i s a g e n c y t o
i n s u r e loans and m o r t g a g e s w a s i n c r e a s e d by $1,950 million
during the fiscal year 1954, pursuant to legislation and allocations
m a d e by the P r e s i d e n t during the fiscal y e a r under the National
Housing A c t , a s a m e n d e d (12 U . S . C . 1701-1750g). An i t e m i z e d
l i s t of t h e c h a n g e s i s s h o w n i n t h e f o l l o w i n g t a b l e .
Title
Authorization
Increase, or
decrease ( )
In
National Housing Act, as amended:
Title I, Section 8:
Insurance of mortgages on single-family dwellings for
families of low and moderate Income, particularly in suburban and outlying areas where it is not practicable
to conform with requirements essential in urban residential areas.
Title II:
Insurance of mortgages on 1- to 4-f£Lmily structures, and
multi-family housing projects. Mortgages may cover new
and existing properties, both for rent and for sale, including nonprofit cooperative housing.
Title VI, Sections 603 and 608:
Insurance of mortgages on 1- to 4-family homes and on
rental projects. These sections were enacted to aid the
production, through private enterprise, of housing for
defense workers. Authority to insure under these two
sections has largely expired.
Title VIII:
Insurance of mortgages on rental housing built on or near
military or atomic energy installations. The need for
this housing must be certified to by the Secretary of
Defense or the Atomic Energy Commission.
Title DC:
Insurance of national defense housing mortgages. Housing
must be within limits of housing needs in defense areas
desig-nated by the President. Mortgages are required to
be acceptable risks in view of needs for national defense .
million^
Section 8 of the National
Housing Act as amended.
and letter of the President dated Aug. 8, 1953.
S150
Section 217 of the National
Housing Act as amended,
and letter of the President dated Aug. 8, 1953.
1,400
do
• 70
Section 803 of the National
Housing Act as amended.
and letter of the President dated Aug. 8, 1953.
300
Section 217 of the National
Housing Act as amended.
and letter of the President dated Aug. 8, 1953. •
170
1,950
As of J u n e 30, 1954, all m o r t g a g e i n s u r a n c e a u t h o r i z a t i o n s p u r s u a n t to e x i s t i n g l e g i s l a t i o n a s of thait d a t e h a d b e e n a l l o c a t e d to the
F e d e r a l H o u s i n g A d m i n i s t r a t i o n by the P r e s i d e n t . A u t h o r i z a t i o n s
for a l l t i t l e s u n u s e d b y the F e d e r a l H o u s i n g A d m i n i s t r a t i o n a s of t h a t
d a t e a m o u n t e d to $ 1 , 5 6 0 . 3 m i l l i o n .
REPORT ON FISCAL OPERATIONS
43
In a c c o r d a n c e with P u b l i c L a w 560, 83d C o n g r e s s , a p p r o v e d
A u g u s t 2 , 1 9 5 4 , t h e a g g r e g a t e a m o u n t of p r i n c i p a l o b l i g a t i o n s of a l l
m o r t g a g e s which m a y be i n s u r e d and outstanding at any one t i m e
u n d e r i n s u r a n c e c o n t r a c t s or connmitments to i n s u r e p u r s u a n t to
a n y s e c t i o n o r t i t l e of t h e N a t i o n a l H o u s i n g A c t , a s a m e n d e d ( 1 2
U . S o C . 1 7 0 1 - 1 7 5 0 g ) , e x c e p t S e c t i o n 2 , s h a l l n o t e x c e e d t h e s u m of
(a) t h e o u t s t a n d i n g p r i n c i p a l b a l a n c e s , a s of J u l y 1, 1 9 5 4 , of a l l
i n s u r e d m o r t g a g e s ( a s e s t i n n a t e d b y t h e C o n n m i s s i o n e r of t h e F e d e r a l
H o u s i n g A d m i n i s t r a t i o n , b a s e d on s c h e d u l e d a m o r t i z a t i o n p a y m e n t s
w i t h o u t t a k i n g i n t o a c c o u n t p r e p a y r r l e n t s o r d e l i n q u e n c i e s ) , (b) t h e
p r i n c i p a l a m o u n t of a l l o u t s t a n d i n g c o n n m i t n n e n t s t o i n s u r e o n t h a t
d a t e , a n d (c) $ 1 , 5 0 0 n n i l l i o n , e x c e p t t h a t w i t h t h e a p p r o v a l of t h e
P r e s i d e n t , s u c h a g g r e g a t e a m o u n t m a y be i n c r e a s e d by not to
exceed $500 million. All existing m o r t g a g e i n s u r a n c e authorizations
or existing limitations with r e s p e c t to any section or title o f t h e
N a t i o n a l H o u s i n g A c t , as a m e n d e d , e x c e p t S e c t i o n 2, s h a l l b e c o n solidated and m e r g e d into one g e n e r a l i n s u r a n c e authorization to
t a k e t h e p l a c e of a l l e x i s t i n g a u t h o r i z a t i o n s o r l i m i t a t i o n s . T a b l e
72 s h o w s t h e l i m i t of a u t h o r i t y t o i n s u r e l o a n s a n d m o r t g a g e s a s
of J u n e 3 0 , 1 9 5 4 .
SECURITIES OWNED BY THE UNITED STATES
GOVERNMENT
The United S t a t e s G o v e r n m e n t owned s e c u r i t i e s with a net face
v a l u e of $23,193.9 m i l l i o n as of J u n e 30, 1954. The s e c u r i t i e s
c o n s i s t e d p r i n c i p a l l y of c a p i t a l s t o c k , b o n d s , and notes of G o v e r n m e n t c o r p o r a t i o n s and c e r t a i n b u s i n e s s - t y p e a c t i v i t i e s ; s e c u r i t i e s
r e p r e s e n t i n g l o a n s m a d e to f a r n n e r s , foreign g o v e r n m e n t s , h o m e
o w n e r s , r a i l r o a d s , and o t h e r s ; and r e c e i p t s showing p a y m e n t of
United S t a t e s s u b s c r i p t i o n s to the I n t e r n a t i o n a l M o n e t a r y F u n d
and to the I n t e r n a t i o n a l Bank for R e c o n s t r u c t i o n and Developnnent.
A s t a t e m e n t of the s e c u r i t i e s owned at the end of the f i s c a l y e a r
1954, o t h e r t h a n f o r e i g n g o v e r n m e n t obligations of World War I
and World War II, i s shown in t a b l e 82, with an explanation of e a c h
net i n c r e a s e o r d e c r e a s e d u r i n g the f i s c a l y e a r .
TAXATION
DEVELOPMENTS
The f i s c a l y e a r 1954 was a p e r i o d of v a r i e d and f a r - r e a c h i n g
c h a n g e s in the t a x l a w s . T a x r e d u c t i o n s of a s i z e u n p a r a l l e l e d in
any o t h e r s i n g l e y e a r in the c o u n t r y ' s h i s t o r y b e c a m e effective
and the i n t e r n a l r e v e n u e laws w e r e c o m p l e t e l y r e v i s e d .
The a d m i n i s t r a t i o n ' s t a x a c t i v i t i e s w e r e r e s t r i c t e d by b u d g e t a r y
c i r c u n n s t a n c e s . The l a r g e deficits i n h e r i t e d f r o m the p r e c e d i n g
a d m i n i s t r a t i o n nnade it innperative t h a t the budget be b r o u g h t u n d e r
c o n t r o l as quickly as p o s s i b l e . This l i m i t e d the m a g n i t u d e and
tinning of t a x r e d u c t i o n s . The P r e s i d e n t s u m m a r i z e d his policy
in his s e c o n d Budget nnes s a g e in t h e s e w o r d s : **I a m anxious to
have t a x e s r e d u c e d as fast as that c a n be done without building up
i n f l a t i o n a r y d e f i c i t s . It i s the deternnined p u r p o s e of t h i s a d m i n i s -
44
1954 REPORT OF THE SECRETARY OF THE TREASURY
t r a t i o n to nnake f u r t h e r r e d u c t i o n s in t a x e s as r a p i d l y as justified
by p r o s p e c t i v e r e v e n u e s
and reductions in expenditures. The
objective will be to r e t u r n to the p e o p l e , to s p e n d for t h e m s e l v e s
a n d i n t h e i r o w n w a y , t h e l a r g e s t p o s s i b l e s h a r e of t h e m o n e y t h a t
the G o v e r n m e n t has been spending for thenn."
B u d g e t a r y c i r c u m s t a n c e s of n e c e s s i t y a l s o l i m i t e d t h e s c o p e of
tax r e f o r m . The then existing tax s t r u c t u r e was known to be
r e t a r d i n g economic growth, producing Inequities, and affording
t a x e v a s i o n o p p o r t u n i t i e s . It w a s e s s e n t i a l t h a t t h e t a x s y s t e m b e
r e f o r m e d as quickly as p o s s i b l e . In v i e w ofthe b u d g e t a r y situation,
h o w e v e r , it b e c a m e n e c e s s a r y to s h a p e t a x r e v i s i o n in a way w h i c h
w o u l d r e s u l t i n m a x i n n u n n t a x r e f o r m w i t h nnininnunn l o s s of r e v e n u e .
D u r i n g the fiscal y e a r 1954, t a x r e d u c t i o n s a g g r e g a t i n g $ 7 , 4
b i l l i o n b e c a m e e f f e c t i v e . T h e e x c e s s p r o f i t s t a x , origf n a l l y e n a c t e d
i n 1950 w i t h p r o v i s i o n for i t s elinnination on J u n e 30, 1953, a n d
l a t e r extended for six nnonths, e x p i r e d on Decennber 3 1 , 1953. On
the s a m e date, individual i n c o m e tax r a t e s r e v e r t e d to those which
p r e v a i l e d b e f o r e t h e t a x i n c r e a s e s e n a c t e d b y t h e R e v e n u e A c t of
1 9 5 1 . T h e E x c i s e T a x R e d u c t i o n A c t of 1 9 5 4 r e d u c e d a s u b s t a n t i a l
n u n n b e r of e x c i s e s e f f e c t i v e A p r i l 1, 1 9 5 4 .
T h e s e changes in tax r a t e s between D e c e m b e r 31, 1953, and
A p r i l 1, 1 9 5 4 , r e d u c e d t h e a n n u a l r e v e n u e y i e l d of t h e t a x s y s t e m
by an estinnated $6.0 billion, as follows:
Reduction
(In b i l l i o n s of d o l l a r s )
Excess profits tax
Individual inconne t a x
Excises
Total
2.0
3.0
1.0
6.0
In addition, the s t r u c t u r a l changes effected in the tax s y s t e m by
t h e r e v i s i o n of t h e I n t e r n a l R e v e n u e C o d e r e d u c e d t h e f i s c a l y e a r
1955 y i e l d of t h e i n c o m e t a x o n i n d i v i d u a l s b y $ 0 . 8 b i l l i o n , a n d of
the inconne t a x on c o r p o r a t i o n s by $ 0 . 6 billion.
The 5 p e r c e n t a g e point i n c r e a s e in c o r p o r a t i o n nornnal tax
e n a c t e d b y t h e R e v e n u e A c t of 1951 f o r a t h r e e - y e a r p e r i o d w a s
e x t e n d e d f o r o n e y e a r t o M a r c h 3 1 , 1 9 5 5 , a d d i n g $ 1.2 b i l l i o n t o
f i s c a l y e a r 1955 r e v e n u e s . A n o t h e r $ 1 b i l l i o n w a s a d d e d by t h e
o n e - y e a r e x t e n s i o n of a n u m b e r of t h e 1 9 5 1 e x c i s e t a x i n c r e a s e s
which w e r e to h a v e e x p i r e d on M a r c h 3 1 , 1954.
Income Tax Rate Reductions
In a c c o r d a n c e with the P r e s i d e n t ' s r e c o m m e n d a t i o n to the
C o n g r e s s on May 20, 1953, individual i n c o m e t a x r a t e s r e v e r t e d
on J a n u a r y 1, 1954, to the l e v e l which had p r e v a i l e d b e f o r e the
1951 t a x i n c r e a s e s . The c o m b i n e d f i r s t b r a c k e t nornnal and s u r t a x
r a t e was r e d u c e d fronn 22.2 p e r c e n t to 20 p e r c e n t ; the m a x i m u m
r a t e f r o m 92 to 91 p e r c e n t ; the nnaximum effective r a t e U m i t a t i o n
fronn 88 to 87 p e r c e n t .
REPORT ON FISCAL OPERATIONS
45
T h e s e r a t e c h a n g e s r e d u c e d individual i n c o m e t a x r a t e s by about
10 p e r c e n t u p t o $ 3 2 , 0 0 0 of s u r t a x n e t i n c o m e ( $ 6 4 , 0 0 0 f o r m a r r i e d
couples). F o r tax b r a c k e t s above $32,000 the reduction was p r o g r e s s i v e l y s n n a l l e r , d e c l i n i n g t o a r o u n d 1 p e r c e n t on v e r y l a r g e
inconnes. C o n s i s t e n t with t h e s e r e d u c t i o n s , the withholding r a t e
a p p l i c a b l e t o w a g e s a n d s a l a r i e s i n e x c e s s of p e r s o n a l e x e m p t i o n s
w a s r e d u c e d f r o m 20 t o 18 p e r c e n t . T h e s e r e d u c t i o n s , t h e P r e s i d e n t
s a i d , w e r e j u s t i f i e d ' ' o n l y b e c a u s e of r e d u c t i o n s i n p r o p o s e d
expenditures which the present adnninistration has already been
a b l e t o n n a k e a n d b e c a u s e of a d d i t i o n a l e c o n o m i e s w e e x p e c t t o
a c h i e v e in the f u t u r e . "
Excise Rate Reductions and Extensions
The e x c i s e t a x r e d u c t i o n s u n d e r the E x c i s e Tax Reduction Act of
1954, a g g r e g a t e a p p r o x i m a t e l y $ 1 billion p e r y e a r . A n u m b e r of
m a n u f a c t u r e r s ' e x c i s e s , including t h o s e on c a m e r a s , l e n s e s , f i l m s ,
e l e c t r i c light bulbs and t u b e s , m e c h a n i c a l p e n c i l s , p e n s , and l i g h t e r s ,
and s o m e s p o r t i n g goods itenns w e r e r e d u c e d to 10 p e r c e n t . The
t a x e s on r e f r i g e r a t o r s , q u i c k - f r e e z e u n i t s , r e f r i g e r a t o r or f r e e z i n g
a p p a r a t u s , and t h o s e on e l e c t r i c , g a s , and oil a p p l i a n c e s w e r e
r e d u c e d to 5 p e r c e n t . The t a x e s i m p o s e d on t r a n s p o r t a t i o n of
p e r s o n s and on c o m m u n i c a t i o n s , t o g e t h e r with the r e t a i l e x c i s e
t a x e s and the t a x e s on a d m i s s i o n s , w e r e a l s o r e d u c e d to 10 p e r c e n t .
Under the a d m i s s i o n s t a x , a d m i s s i o n s of 50 c e n t s or l e s s w e r e
e x e m p t e d f r o m t a x a t i o n , and the exennptions p r o v i d e d to c e r t a i n
nonprofit a c t i v i t i e s w e r e extended.
In connection with the r e d u c t i o n of the t a x e s on r e f r i g e r a t o r s ,
q u i c k - f r e e z e u n i t s , e l e c t r i c , gas and oil a p p l i a n c e s , and e l e c t r i c
light bulbs and t u b e s , p r o v i s i o n w a s m a d e for floor stock refunds
to d i s t r i b u t o r s holding s t o c k s of t h e s e a r t i c l e s o n t h e effective date
of the t a x r e d u c t i o n s .
The 1954 l e g i s l a t i o n extended for one y e a r a n u m b e r of the e x c i s e
r a t e s e n a c t e d in 1951 and s c h e d u l e d to e x p i r e on A p r i l 1, 1954. The
e x t e n s i o n s include the t a x e s on a u t o m o b i l e s , t r u c k s , automotive
p a r t s and a c c e s s o r i e s , g a s o l i n e , d i s t i l l e d s p i r i t s , w i n e s , l i q u e u r s ,
c o r d i a l s , f e r m e n t e d m a l t l i q u o r s , and c i g a r e t t e s . (See exhibit 41.)
Revision of the Internal Revenue Code
The e n a c t m e n t of the new I n t e r n a l Revenue Code d u r i n g the p a s t
f i s c a l y e a r b r o u g h t to fruition the c o m p r e h e n s i v e r e v i s i o n of the
tax s t r u c t u r e outlined by P r e s i d e n t E i s e n h o w e r in h i s f i r s t State of
the Union M e s s a g e on F e b r u a r y 2, 1953. " W e m u s t develop a
s y s t e m of t a x a t i o n , " the P r e s i d e n t s a i d , " w h i c h will i m p o s e the
l e a s t p o s s i b l e o b s t a c l e to the d y n a m i c growth of the c o u n t r y . T h i s
i n c l u d e s p a r t i c u l a r l y r e a l opportunity for the growth of s m a l l
b u s i n e s s e s . Many r e a d j u s t m e n t s in e x i s t i n g t a x e s w i l l b e n e c e s s a r y
to s e r v e t h e s e o b j e c t i v e s and a l s o to r e m o v e e x i s t i n g i n e q u i t i e s .
C l a r i f i c a t i o n auid s i m p l i f i c a t i o n in the t a x l a w s a s well a s the
r e g u l a t i o n s will be u n d e r t a k e n . "
This w a s an u n d e r t a k i n g of v a s t p r o p o r t i o n s and a b s o r b e d the
g r e a t e r p a r t of two y e a r s . The Revenue Code i s a c o m p l e x c o l l e c tion of l a w s a c c u m u l a t e d o v e r m a n y y e a r s and affects the w e l l - b e i n g
of e v e r y s e c t o r of our population.
339256 O - 55
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1954 REPORT OF THE SECRETARY OF THE TREASURY
W o r k o n t h e p r o j e c t w a s b e g u n i n t h e s p r i n g of 1 9 5 3 w h e n t h e
T r e a s u r y , a c t i n g at the P r e s i d e n t ' s d i r e c t i o n , joined with the
c o n g r e s s i o n a l t a x c o m m i t t e e s a n d t h e i r staffs in a c o m p r e h e n s i v e
r e v i e w of t h e t a x l a w s . O n M a y 2 0 , 1 9 5 3 , t h e P r e s i d e n t i n f o r n n e d
t h e C o n g r e s s t h a t h e r e q u e s t e d t h e S e c r e t a r y of t h e T r e a s u r y t o
p r e p a r e r e c o m m e n d a t i o n s " • . . t o r e m o v e e x i s t i n g i n e q u i t i e s of
o u r t a x s t r u c t u r e , sinnplify t h e n e e d l e s s c o m p l i c a t i o n s w h i c h h a v e
d e v e l o p e d o v e r the y e a r s in t a x l a w s , and g e n e r a l l y s e c u r e a b e t t e r
b a l a n c e of t a x r e v e n u e s . "
T a x r e v i s i o n h a d b e e n l o n g o v e r d u e . It h a d b e e n u r g e d c o n s i s t e n t l y
s i n c e t h e c l o s i n g m o n t h s of w a r a s t h e i m p o r t a n c e of s o u n d t a x a t i o n
for peacetinne p r o s p e r i t y gained i n c r e a s i n g recognition. S e v e r a l
c o n g r e s s i o n a l c o m m i t t e e s d e a l t with the s u b j e c t in the i m n n e d i a t e
postwar years. Taxpayer organizations, trade associations, professional organizations, and citizens' groups all urged legislation
to b r i n g the tax s y s t e m into b e t t e r alignment with the requirennents
of a p r i v a t e e n t e r p r i s e e c o n o n n y .
T h e s e e f f o r t s p r o d u c e d a v a s t n u m b e r of s t u d i e s a n d s u g g e s t i o n s
w h i c h a c c u n n u l a t e d in T r e a s u r y and c o n g r e s s i o n a l f i l e s . T o b r i n g
t h i s i n f o r n n a t i o n u p t o d a t e , t h e s t a f f of t h e J o i n t C o n n m i t t e e o n
Internal Revenue Taxation circulated a detailed questionnaire to
g r o u p s a n d t a x p a y e r s i n t e r e s t e d i n t h e r e v i s i o n of t h e t a x l a w s .
R e p l i e s w e r e r e c e i v e d f r o m t h o u s a n d s of i n d i v i d u a l t a x p a y e r s ,
b u s i n e s s e s , tax p r a c t i t i o n e r s , professional g r o u p s , and t r a d e
a s s o c i a t i o n s . In a d d i t i o n , b o t h t h e J o i n t C o n n m i t t e e a n d t h e T r e a s u r y
D e p a r t m e n t r e c e i v e d a l a r g e n u n n b e r of u n s o l i c i t e d l e t t e r s f r o m
i n d i v i d u a l s who s u g g e s t e d c h a n g e s to nneet t h e i r own t a x p r o b l e n n s .
T o i n s u r e s y s t e m a t i c a n d o b j e c t i v e c o n s i d e r a t i o n of t h i s l a r g e
b o d y of m a t e r i a l , s o m e fifty w o r k i n g g r o u p s of G o v e r n m e n t t a x
s p e c i a l i s t s w e r e o r g a n i z e d . T h e s e g r o u p s c o n s i s t e d of t a x a d n n i n i s t r a t o r s , a t t o r n e y s , a c c o u n t a n t s , a n d e c o n o m i s t s fronn t h e staffs
of t h e J o i n t C o m m i t t e e , t h e T r e a s u r y , a n d t h e I n t e r n a l R e v e n u e
S e r v i c e . T h e y w e r e a s s i g n e d t h e t a s k of a n a l y z i n g t h e s e m a t e r i a l s
a n d o r g a n i z i n g thenn into f o r m r e a d i l y u s a b l e by the c o n g r e s s i o n a l
tax committees.
While t h i s w o r k w a s p r o c e e d i n g at the staff l e v e l , the C o n n m i t t e e
on W a y s a n d M e a n s c o n d u c t e d p u b l i c h e a r i n g s , w h i c h be gan on J u n e
16 a n d c o n t i n u e d u n t i l A u g u s t 1 4 , 1 9 5 3 . O v e r 6 0 0 w i t n e s s e s r e p r e s e n t i n g e v e r y c l a s s a n d s e g n n e n t of t a x o p i n i o n * t e s t i f l e d on f o r t y
s e p a r a t e t a x t o p i c s . T h e i r testinnony fills a l m o s t 3,000 p r i n t e d
pages. The c o m m i t t e e was also provided with tax studies undert a k e n by m o r e t h a n 25 n a t i o n a l o r g a n i z a t i o n s , i n c l u d i n g t h e A m e r i c a n B a r A s s o c i a t i o n a n d t h e A m i e r i c a n I n s t i t u t e of A c c o u n t a n t s .
I n a d d i t i o n , a t t h e d i r e c t i o n of t h e C h a i r m a n of t h e C o m m i t t e e
o n W a y s a n d M e s u i s , a d v i s o r y g r o u p s c o n n p o s e d of o u t s i d e e x p e r t s
w e r e o r g a n i z e d to look into the m o r e t e c h n i c a l tax a r e a s . This was
d e e m e d e s s e n t i a l to i n s u r e a b a l a n c e d and objective a p p r o a c h .
Leading tax e x p e r t s throughout the country participated. They
e x a m i n e d s u c h t e c h n i c a l a r e a s a s t h o s e r e l a t i n g t o t a x a t i o n of
e s t a t e s and t r u s t s , income from foreign s o u r c e s , depreciation,
d o u b l e t a x a t i o n of d i v i d e n d s , p e n s i o n t r u s t s a n d p r o f i t - s h a r i n g
plans, and corporate r e o r g a n i z a t i o n s .
T h e d e l i b e r a t i o n s o f t h e C o m n n i t t e e on W a y s a n d M e a n s c u l m i n a t e d
in t h e b i l l H. R. 8 3 0 0 , i n t r o d u c e d by C h a i r m a n R e e d on M a r c h 9,
REPORT ON FISCAL OPERATIONS
47
1954, and the a c c o m p a n y i n g r e p o r t on the bill filed the sanne day.
The b i l l p a s s e d the House of R e p r e s e n t a t i v e s on M a r c h 18 by a vote
of 339 to 80 and w a s i n t r o d u c e d in the Senate a week l a t e r .
The Senate F i n a n c e C o m m i t t e e began public h e a r i n g s on the
l e g i s l a t i o n on A p r i l 7, 1954. In the c o u r s e of t h r e e w e e k s , it
r e c e i v e d a l m o s t 2,500 p r i n t e d p a g e s of t e s t i m o n y . It spent m o s t
of May and p a r t of June in e x a m i n i n g the House b i l l in the light of
the t e s t i m o n y it r e c e i v e d and filed i t s r e p o r t on J u n e 18. The Senate
p a s s e d t h e b i l l on July 2, 1954, by a vote of 63 to 9. The c o n f e r e e s
a s s i g n e d to c o n s i d e r the d i f f e r e n c e s between the House and Senate
v e r s i o n s of the l e g i s l a t i o n r e p o r t e d t h e i r reconnmendation on
July 26 and p a s s a g e of the final b i l l by the House and the Senate
followed within t h r e e d a y s . The new Revenue Code b e c a m e law
with the P r e s i d e n t ' s a p p r o v a l on August 16, 1954 (Public Law 591).
Objectives of the New Code
In h i s Budget m e s s a g e to the C o n g r e s s on J a n u a r y 2 1 , 1954, the
P r e s i d e n t s u m m a r i z e d the o b j e c t i v e s of t a x r e v i s i o n a s follows:
" R e v i s i o n of the t a x s y s t e m i s n e e d e d to m a k e t a x b u r d e n s f a i r e r
for m i l l i o n s of individual t a x p a y e r s . It i s n e e d e d to r e s t o r e nornnal
i n c e n t i v e s for s u s t a i n e d p r o d u c t i o n and e c o n o m i c g r o w t h . The
c o u n t r y ' s e c o n o m y h a s continued to grow d u r i n g r e c e n t y e a r s
with a r t i f i c i a l s u p p o r t f r o m r e c u r r i n g inflation. T h i s i s not a solid
foundation for p r o s p e r i t y . Wc m u s t r e s t o r e conditions which will
p e r m i t t r a d i t i o n a l A m e r i c a n i n i t i a t i v e and p r o d u c t i o n genius to
p u s h on to e v e r h i g h e r s t a n d a r d s of living and ennployment. Among
t h e s e c o n d i t i o n s , a f a i r t a x s y s t e m with minimimn r e s t r a i n t s on
s m a l l and g r o w i n g b u s i n e s s e s i s e s p e c i a l l y i n n p o r t a n t . "
The r e a l i z a t i o n of t h e s e o b j e c t i v e s e n t a i l e d the f i r s t connpreh e n s i v e r e v i s i o n of the r e v e n u e l a w s effected s i n c e long b e f o r e the
t u r n of t h e c e n t u r y . T h e s e r e v i s i o n s , s u m m a r i z e d in s o m e d e t a i l
in exhibit 4 2 , fall into four c a t e g o r i e s : t h o s e which (1) rennove
i n e q u i t i e s , (2) r e d u c e t a x b a r r i e r s to l o n g - t e r m econonnic g r o w t h
and t h e c r e a t i o n of j o b s , (3) r e d u c e t a x e v a s i o n o p p o r t u n i t i e s , and
(4) simplify and c l a r i f y the t a x l a w s .
The a d m i n i s t r a t i o n of the G o v e r n m e n t ' s f i n a n c e s will be e a s e d by
the a c c e l e r a t i o n ofthe t a x p a y m e n t s of l a r g e c o r p o r a t i o n s p r o v i d e d
u n d e r the new l a w , (See a l s o " E s t i m a t e s of R e c e i p t s in 1955 and
1956" in t h i s s e c t i o n . ) Although the new t a x p a y m e n t schedule
a p p l i e s to l e s s than 5 p e r c e n t of the c o r p o r a t i o n s , it affects 85
p e r c e n t of the t o t a l c o r p o r a t i o n t a x l i a b i l i t y . To the extent t h a t it
will m a t e r i a l l y r e d u c e the e x c e s s i v e c o n c e n t r a t i o n of the F e d e r a l
G o v e r n m e n t ' s r e c e i p t s d u r i n g the f i r s t six m o n t h s of the c a l e n d a r
y e a r , the T r e a s u r y ' s future debt nnanagement p r o b l e m s will be
reduced.
R e m o v a l of i n e q u i t i e s
A s u b s t a n t i a l n u m b e r of the c h a n g e s m a d e by the 1954 t a x r e v i s i o n
a r e d e s i g n e d to m a k e t a x b u r d e n s f a i r e r for individual t a x p a y e r s by
r e m o v i n g i n e q u i t i e s and t a x connplications and by e l i m i n a t i n g
p r o v i s i o n s which s e r v e a s a t r a p for the u n w a r y . T h e c h a n g e s in
the t a x t r e a t m e n t of d e p e n d e n t s fall into t h i s g r o u p .
48
1954 REPORT OF THE SECRETARY OF THE TREASURY
The new law elinninates the need for p a r e n t s to be on g u a r d l e s t
a child be disqualified a s a dependent b e c a u s e h i s v a c a t i o n or
p a r t - t i m e e a r n i n g s e x c e e d $ 6 0 0 . It w a i v e s the i n c o m e t e s t w h e r e
the dependent i s the t a x p a y e r ' s child u n d e r the age of 19 or a
student. It a l s o put an end to the situation in which widows and
w i d o w e r s , who had to m a i n t a i n a h o m e for dependent c h i l d r e n ,
w e r e d e p r i v e d a b r u p t l y of the benefits of i n c o m e s p l i t t i n g b e c a u s e
of the d e a t h of the o t h e r s p o u s e . Under the new law, the t a x r e t u r n
of the s u r v i v o r c o n t i n u e s to be t r e a t e d for a p e r i o d of two y e a r s a s
though it w e r e the joint r e t u r n of husband and wife and, t h e r e f o r e ,
eligible for the full benefits of i n c o m e s p l i t t i n g .
Widows, w i d o w e r s , and working w i v e s in l o w - i n c onne f a m i l i e s
a r e now p e r m i t t e d to deduct e x p e n s e s for child c a r e i n c u r r e d while
they a r e at w o r k . Widows and w i d o w e r s m a y deduct a m o u n t s paid
up to a maximunn of $600 a y e a r for the c a r e Of c h i l d r e n u n d e r 12
or for any i n c a p a c i t a t e d p e r s o n . In the c a s e of working w i v e s , the
deduction i s r e d u c e d by the amount by which the c o m b i n e d inconnes
of the h u s b a n d and wife e x c e e d $ 4 , 5 0 0 .
T a x p a y e r s with heavy m e d i c a l , d e n t a l , or h o s p i t a l b i l l s nnay now
t a k e a deduction for the e x c e s s of s u c h e x p e n s e s o v e r 3 p e r c e n t
r a t h e r than 5 p e r c e n t of t h e i r i n c o m e , and the maxinnum deduction
allowed i s doubled. R e s t r i c t i o n s on the deductibility of c h a r i t a b l e
c o n t r i b u t i o n s have a l s o been e a s e d . In addition to the 20 p e r c e n t of
the t a x p a y e r ' s i n c o m e allowed u n d e r the p r e v i o u s l a w , an e x t r a
10 p e r c e n t i s allowed for c o n t r i b u t i o n s to h o s p i t a l s , c h u r c h e s , or
educational institutions.
D i s c r e p a n c i e s between the t a x treatnnent of s o c i a l s e c u r i t y b e n e fits and o t h e r f o r m s of r e t i r e m e n t i n c o m e have been r e d u c e d .
Retired persons receiving income from pensions, annuities, intere s t , r e n t s , or dividends a r e now e n t i t l e d to a 20 p e r c e n t c r e d i t
a g a i n s t t a x on a s m u c h a s $1,200 of such i n c o m e . T h i s will e x e m p t
m a n y e l d e r l y r e t i r e d p e r s o n s of m o d e s t nneans f r o m the i n c o m e
t a x . The c r e d i t i s r e d u c e d for the a m o u n t of s o c i a l s e c u r i t y benefits
and o t h e r e x e m p t fornns of r e t i r e m e n t i n c o m e in o r d e r to p r e v e n t
duplication of e x e m p t i o n s and e q u a l i z e the t a x t r e a t m e n t of v a r i o u s
t y p e s of b e n e f i t s .
Under the old law, t a x p a y e r s w e r e denied d e d u c t i o n s for the
i n t e r e s t included in c a r r y i n g c h a r g e s on installnnent p u r c h a s e s
u n l e s s the i n t e r e s t elennent was s e p a r a t e l y s t a t e d . The new law
s p e c i f i c a l l y p e r m i t s the deduction of 6 p e r c e n t of the unpaid b a l a n c e a s the i n t e r e s t p o r t i o n of the c a r r y i n g c h a r g e s .
The new law nnakes it c l e a r that p r e m i u m s paid by ennployers
for h e a l t h and a c c i d e n t p l a n s a r e not to be taxed a s i n c o m e of the
e m p l o y e e . It a l s o e q u a l i z e s the t a x t r e a t m e n t of s i c k n e s s and a c c i dent benefits financed by the ennployer w h e t h e r paid u n d e r an
i n s u r e d or a n o n i n s u r e d plan. It exennpts r e i m b u r s e m e n t s for
m e d i c a l e x p e n s e s and for p e r m a n e n t injury f r o m inconne t a x ,
and e x e m p t s s i c k n e s s benefits paid in l i e u of w a g e s up to $100 a
week.
The new law elinninates i n e q u i t i e s in the t r e a t n n e n t of a n n u i t i e s
by allowing the p u r c h a s e r of an annuity a u n i f o r m a n n u a l e x c l u s i o n
sufficient to p e r m i t h i m to r e c o v e r h i s e n t i r e c a p i t a l t a x f r e e over
the p e r i o d of h i s life e x p e c t a n c y .
REPORT ON FISCAL OPERATIONS
49
I t g i v e s f a r m e r s t h e o p t i o n t o d e d u c t t h e c o s t s of s o i l a n d w a t e r
c o n s e r v a t i o n a s a c u r r e n t e x p e n s e u p t o 25 p e r c e n t of t h e i r g r o s s
i n c o m e . U n d e r t h e old l a w , t h e s e c o s t s g e n e r a l l y h a d to be c a p i t a l i z e d
a n d c o u l d b e r e c o v e r e d f o r t a x p u r p o s e s o n l y u p o n s a l e of t h e
land.
T h e s e m e a s u r e s w i l l a f f o r d m i l l i o n s of i n d i v i d u a l i n c o m e
t a x p a y e r s a s u b s t a n t i a l a s s i s t a n c e in u n u s u a l h a r d s h i p c a s e s at a
relatively modest revenue cost.
R e n n o v a l of d e t e r r e n t s t o b u s i n e s s
expansion
A n u m b e r of p r o v i s i o n s i n t h e n e w l a w a r e d e s i g n e d t o r e d u c e t a x
d e t e r r e n t s t o t h e e x p a n s i o n of i n v e s t m e n t i n p r i v a t e b u s i n e s s . A s
b u s i n e s s i s p e r m i t t e d and e n c o u r a g e d to g r o w and e x p a n d , it
c r e a t e s bigger p a y r o l l s , m o r e and better j o b s , and l a r g e r and
m o r e widely distributed inconnes. This i n c r e a s e s the national
i n c o m e a n d , i n c i d e n t a l l y , t a x r e v e n u e s . O n e of t h e c h a n g e s i n
t h i s g r o u p i s a n e w a n d m o r e r e a l i s t i c t r e a t m e n t of d e p r e c i a tion.
D e p r e c i a t i o n . - - T h e p r o v i s i o n of t h e o l d l a w r e l a t i n g t o d e p r e c i a t i o n w a s b r i e f a n d g e n e r a l . It m e r e l y p r o v i d e d " a r e a s o n a b l e
allowance for the exhaustion, w e a r , and t e a r (including a r e a s o n a b l e a l l o w a n c e f o r o b s o l e s c e n c e ) of p r o p e r t y u s e d i n a t r a d e o r
b u s i n e s s o r of p r o p e r t y h e l d f o r t h e p r o d u c t i o n of i n c o m e . " T h e
specific r u l e s governing allowable deductions and p r o c e d u r e s w e r e
left to r e g u l a t i o n s and a d m i n i s t r a t i v e p r a c t i c e . While v a r i o u s
m e t h o d s of a p p o r t i o n i n g t h e c o s t of t h e p r o p e r t y o v e r i t s s e r v i c e
life w e r e p e r m i t t e d , l i m i t a t i o n s i m p o s e d upon a l t e r n a t e nnethods
r e s u l t e d i n t h e g e n e r a l u s e of t h e s t r a i g h t - l i n e f o r n n u l a . T h i s
s y s t e m , which s p r e a d s the cost evenly over the a s s e t ' s life, is
s i m p l e , but the d e d u c t i o n s w h i c h it a l l o w s a r e f r e q u e n t l y at o d d s
with reality.
T h e f a i l u r e of d e p r e c i a t i o n f o r t a x p u r p o s e s t o k e e p p a c e w i t h
t r u e d e p r e c i a t i o n d i s c o u r a g e d plant m o d e r n i z a t i o n and econonnic
p r o g r e s s , p a r t i c u l a r l y w h e n t h e i n v e s t m e n t w a s of a l o n g - r a n g e
c h a r a c t e r and involved a c o n s i d e r a b l e b u s i n e s s r i s k .
T h e n e w c o d e g i v e s t a x p a y e r s g r e a t e r l a t i t u d e in t h e s e l e c t i o n
of m e t h o d s of d e p r e c i a t i o n a n d a l l o w s a m o r e r a p i d d e p r e c i a t i o n
of n e w a s s e t s . T h e y a r e n o w p e r m i t t e d t o c o n n p u t e d e p r e c i a t i o n
u n d e r the d e c l i n i n g - b a l a n c e m e t h o d at t w i c e the s t r a i g h t - l i n e r a t e .
T h i s c o n f o r m s nnore c l o s e l y to t r u e d e p r e c i a t i o n since about
t w o - t h i r d s of t h e c o s t w i l l b e w r i t t e n off d u r i n g t h e f i r s t h a l f
of t h e a s s e t ' s l i f e , a s c o m p a r e d w i t h o n l y o n e - h a l f u n d e r t h e
s t r a i g h t - l i n e f o r m u l a . T a x p a y e r s m a y also u s e the s u m - o f - t h e y e a r s ' digits m e t h o d which in s o m e r e s p e c t s is nnore l i b e r a l than
t h e 200 p e r c e n t d e c l i n i n g - b a l a n c e f o r m u l a . Any o t h e r c o n s i s t e n t
m e t h o d i s a l s o a l l o w e d a s l o n g a s it d o e s not p r o d u c e l a r g e r
d e d u c t i o n s t h a n t h o s e a l l o w a b l e u n d e r t h e 200 p e r c e n t d e c l i n i n g b a l a n c e f o r m u l a d u r i n g t h e f i r s t t w o - t h i r d s of t h e s e r v i c e l i f e of
the a s s e t .
A c c e l e r a t i o n i n t h e s p e e d of t h e t a x - f r e e r e c o v e r y of i n v e s t m e n t
w i l l f a c i l i t a t e t h e f i n a n c i n g of n e w i n v e s tnne n t . G r o w i n g f i r n n s w i l l
r e c o u p t h e i r funds m o r e rapidly, and thus be b e t t e r able to finance
t h e i r o w n e x p a n s i o n . I n o t h e r c a s e s , t h e c r e d i t p o s i t i o n of t h e
50
1954 REPORT OF THE SECRETARY OF THE TREASURY
b u s i n e s s will be s t r e n g t h e n e d by the i n c r e a s e d a v a i l a b i l i t y of
working c a p i t a l o r by the fact t h a t the t a x a l l o w a n c e s for c a p i t a l
r e c o v e r y will c o r r e s p o n d nnore c l o s e l y with the r e p a y m e n t s c h e d u l e
for b u s i n e s s l o a n s .
Double t a x a t i o n of d i v i d e n d s . - - A n o t h e r new p r o v i s i o n of the t a x
law g r a n t s t a x p a y e r s s o m e r e l i e f f r o m double t a x a t i o n of c o r p o r a t e
d i v i d e n d s . Double t a x a t i o n i s a nnajor i n j u s t i c e , a penalty on equity
financing, and a s e r i o u s o b s t a c l e to b u s i n e s s e x p a n s i o n .
R i s k c a p i t a l i s e s s e n t i a l for the d velopment of new e n t e r p r i s e s
and the g r o w t h of old o n e s . L a r g e sunns a r e n e e d e d to c r e a t e new
j o b s . Double t a x a t i o n of d i v i d e n d s nnakes it difficult to a t t r a c t the
r i s k c a p i t a l n e c e s s a r y to c r e a t e t h e s e j o b s . It a l s o e n c o u r a g e s
c o r p o r a t i o n s to finance t h e m s e l v e s by bonded i n d e b t e d n e s s , b e c a u s e
i n t e r e s t can be d e d u c t e d for t a x p u r p o s e s . In r e c e n t y e a r s o v e r
t h r e e - q u a r t e r s of the o u t s i d e financing of i n d u s t r y h a s t a k e n the
f o r m of bonded i n d e b t e d n e s s . T h i s m a k e s the economy m o r e
v u l n e r a b l e in p e r i o d s of b u s i n e s s u n s e t t l e m e n t .
Under the new code e a c h s t o c k h o l d e r is p e r m i t t e d to exclude
f r o m h i s g r o s s inconne up to $50 of dividends and i s allowed a
c r e d i t a g a i n s t t a x equal to 4 p e r c e n t of the d i v i d e n d s in e x c e s s of
the e x c l u s i o n . The a m o u n t of the c r e d i t i s l i m i t e d to 2 p e r c e n t of
the s t o c k h o l d e r ' s t o t a l t a x a b l e i n c o m e in 1954 and to 4 p e r c e n t in
l a t e r y e a r s . T h i s i s a s t e p in the d i r e c t i o n of r e d u c i n g double
t a x a t i o n . It g i v e s s m a l l t a x p a y e r s a p r o p o r t i o n a t e l y g r e a t e r i n c e n tive to i n v e s t in equity s e c u r i t i e s . It i s e x t r e m e l y i m p o r t a n t for
the g r o w t h and stability of the Nation that equity funds be nnore
r e a d i l y a v a i l a b l e to new and growing b u s i n e s s e s and that the
o w n e r s h i p of c o r p o r a t e e n t e r p r i s e be s p r e a d even m o r e widely
among all our citizens.
R e s e a r c h and e x p e r i m e n t a l e x p e n d i t u r e s . - - T h e old law m a d e no
specific p r o v i s i o n for the r e s e a r c h and experinnental e x p e n d i t u r e s
which a r e so v i t a l to the g r o w t h and i n c r e a s i n g efficiency of A n n e r i can b u s i n e s s . A s a p r a c t i c a l m a t t e r , l a r g e b u s i n e s s e s with r e g u l a r
r e s e a r c h and e x p e r i m e n t a l b u d g e t s have b e e n able to djeduct m o s t
of t h e s e e x p e n s e s c u r r e n t l y . H o w e v e r , in the c a s e of m a n y s m a l l
b u s i n e s s e s , unable to afford a r e g u l a r budget for r e s e a r c h , doubt
h a s e x i s t e d c o n c e r n i n g the deductibility of such e x p e n d i t u r e s .
M o r e o v e r , when they w e r e c a p i t a l i z e d , t h e r e w a s no a s s u r a n c e
that they could be annortized o v e r a definite p e r i o d or that an
abandonnnent l o s s could be e s t a b l i s h e d . The new code g i v e s all
t a x p a y e r s the option to deduct s u c h e x p e n s e s c u r r e n t l y o r to
c a p i t a l i z e t h e m and w r i t e t h e m off o v e r a p e r i o d of ndt l e s s than
five y e a r s .
C a r r y b a c k of o p e r a t i n g l o s s e s . - - T h e new code i s f a i r e r and l e s s
b u r d e n s o m e to b u s i n e s s e s with i r r e g u l a r and fluctuating e a r n i n g s .
The p e r i o d for the c a r r y b a c k of l o s s e s i s extended f r o m one to two
y e a r s , t h u s p r o v i d i n g , in c o m b i n a t i o n with the f i v e - y e a r c a r r y f o r w a r d , a t o t a l span of eight y e a r s for a b s o r b i n g a l o s s . The
a d d i t i o n a l c a r r y b a c k i n c r e a s e s the p o s s i b i l i t y of imnnediate r e l i e f
t h r o u g h t a x refunds when b u s i n e s s i s l o s i n g nnoney and n e e d s the
r e l i e f m o s t . T h e s e c h a n g e s cut down s u b s t a n t i a l l y the t a x d i s a d v a n t a g e s of b u s i n e s s e s with uneven e a r n i n g s , which a r e apt to
be the u n u s u a l l y r i s k y e n t e r p r i s e s so i m p o r t a n t to the developnnent
of the econonny.
REPORT ON FISCAL OPERATIONS
51
T a x on u n r e a s o n a b l e a c c u m u l a t i o n of s u r p l u s . - - T h e c h a n g e s in
the t a x on the u n r e a s o n a b l e accimnulation of s u r p l u s will a l s o
c o n t r i b u t e to the e x p a n s i o n of the e c o n o m y . Under the old l a w ,
the a p p l i c a t i o n of the tax w a s u n c e r t a i n , and i t s i m p a c t , when
i m p o s e d , e x t r e m e l y h a r s h . If the Governnnent b e l i e v e d that the
r e t a i n e d e a r n i n g s of a c o r p o r a t i o n w e r e e x c e s s i v e , the t a x p a y e r
w a s r e q u i r e d to d e n n o n s t r a t e t h a t t h i s w a s not the c a s e . The
n e c e s s a r y e v i d e n c e w a s not a l w a y s e a s y to a s s e m b l e even when
the r e t e n t i o n s e r v e d a l e g i t i m a t e b u s i n e s s p u r p o s e , p a r t i c u l a r l y
b e c a u s e the t a x p a y e r had to show that t h e r e w a s an innmediate
and specific u s e for the r e t a i n e d e a r n i n g s . T h e t a x w a s t h e r e f o r e
g r e a t l y f e a r e d , e s p e c i a l l y by s m a l l b u s i n e s s and t e n d e d to i m p e d e
and d i s t o r t i n v e s t m e n t p r o g r a m s .
The c o n t i n u a n c e of t h i s t a x is n e c e s s a r y in o r d e r to p r e v e n t the
u s e of the c o r p o r a t i o n for avoiding the s u r t a x on individual s h a r e h o l d e r s . H o w e v e r , i n s t e a d of having to show an imnnediate and
specific n e e d for t h e r e t a i n e d e a r n i n g s , the new code will r e q u i r e
the t a x p a y e r to show only t h a t the r e t a i n e d e a r n i n g s a r e n e c e s s a r y
to m e e t " r e a s o n a b l y a n t i c i p a t e d " b u s i n e s s r e q u i r e m e n t s * An
a c c u m u l a t i o n of $60,000 can be m a d e without t h r e a t of penalty;
and the t a x , when i m p o s e d , will apply only to the p o r t i o n of the
r e t a i n e d e a r n i n g s found to be u n r e a s o n a b l e .
T h e r e v i s i o n of the t a x on the u n r e a s o n a b l e a c c u m u l a t i o n of
s u r p l u s i s of p a r t i c u l a r i r a p o r t a n c e to snnall b u s i n e s s . S m a l l
b u s i n e s s will a l s o benefit g r e a t l y f r o m the new t a x t r e a t m e n t of
d e p r e c i a t i o n , the p a r t i a l r e l i e f f r o m the double t a x a t i o n of d i v i d e n d s ,
the c l a r i f i c a t i o n of the t r e a t m e n t of r e s e a r c h and e x p e r i m e n t a l
e x p e n s e s , and the e x t e n s i o n of the c a r r y b a c k of net o p e r a t i n g
l o s s e s , a s well a s the new option which i s now g r a n t e d c e r t a i n
u n i n c o r p o r a t e d e n t e r p r i s e s to bc t a x e d a s c o r p o r a t i o n s .
R e m o v a l of t a x e v a s i o n o p p o r t u n i t i e s
A n u m b e r of the new r e v e n u e p r o v i s i o n s c l o s e t a ^ e v a s i o n
o p p o r t u n i t i e s which enabled s o m e t a x p a y e r s to avoid t h e i r s h a r e of
the t a x b u r d e n by t a k i n g a d v a n t a g e of t e c h n i c a l i t i e s . In addition
to i n c r e a s i n g the r e v e n u e s , they m a k e the t a x s y s t e m f a i r e r and
elinninate e c o n o m i c d i s t o r t i o n which h a s b e e n due to a r r a n g e m e n t s
adopted m e r e l y for p u r p o s e s of t a x a v o i d a n c e .
T a x p a y e r s , for e x a m p l e , w e r e a b l e to u s e a d e v i c e cominnonly
known a s the " p r e f e r r e d s t o c k b a i l - o u t " to siphon off l a r g e
a c c u m u l a t e d e a r n i n g s f r o m a c o r p o r a t i o n at c a p i t a l gains r a t e s .
T h i s w a s done by having the c o r p o r a t i o n i s s u e to c o m m o n s t o c k h o l d e r s a n o n t a x a b l e dividend of p r e f e r r e d s t o c k which w a s l a t e r
r e d e e m e d . The r e v i s e d code t a x e s a s o r d i n a r y inconne the p r o c e e d s
of the s a l e or r e d e m p t i o n of p r e f e r r e d s t o c k a c q u i r e d in such
transactions.
The new law a l s o c u r b s the trafficking in net o p e r a t i n g l o s s
c a r r y o v e r s . Under the old law, it was f r e q u e n t l y p o s s i b l e for a
s u c c e s s f u l b u s i n e s s to r e d u c e i t s t a x liability by p u r c h a s i n g a
c o r p o r a t i o n which had l o s t m o n e y . T h e new law e l i m i n a t e s the
c a r r y o v e r when m o r e than 50 p e r c e n t of the s t o c k of the l o s s
c o r p o r a t i o n i s p u r c h a s e d by new o w n e r s within a t w o - y e a r p e r i o d
and the l o s s c o r p o r a t i o n t h e r e a f t e r d o e s not continue in the s a m e
business.
52
1954 REPORT OF THE SECRETARY OF THE TREASURY
The new l a w m a k e s m o r e r i g o r o u s the old p r o v i s i o n s d e s i g n e d to
c u r b t h e u s e of s o - c a l l e d c o l l a p s i b l e c o r p o r a t i o n s , which w e r e
l i q u i d a t e d in a m a n n e r t h a t had the effect of c o n v e r t i n g o r d i n a r y
i n c o m e t a x l i a b i l i t y into c a p i t a l gains tax on the s h a r e h o l d e r s . It
a l s o i m p o s e s r e s t r i c t i o n s on c o l l a p s i b l e p a r t n e r s h i p s which had
b e e n o v e r l o o k e d u n d e r the e a r l i e r l a w .
The individual inconne t a x p r e v i o u s l y e x e m p t e d , without l i m i t ,
s i c k n e s s b e n e f i t s o r c o n t i n u a n c e of s a l a r y p a y m e n t s d u r i n g p e r i o d s
of i l l n e s s if paid u n d e r an i n s u r e d type of plan. T h i s wasj e s p e c i a l l y
a d v a n t a g e o u s for s o m e t a x p a y e r s in the h i g h e r inconne b r a c k e t s .
The new law l i m i t s the e x e m p t i o n of s a l a r y continuance benefits
to $100 a week and nnakes the p r o v i s i o n m o r e fair by extending
the e x e m p t i o n to all s a l a r y continuance b e n e f i t s w h e t h e r o r not
paid u n d e r an i n s u r e d plan.
A n o t h e r m e a n s of a v o i d a n c e xinder the old law w a s to a r r a n g e to
h a v e life i n s u r a n c e p r o c e e d s paid in i n s t a l l m e n t s after the d e a t h of
thc i n s u r e d . The old law exennpted not only the life i n s u r a n c e
p r o c e e d s but a l s o the i n t e r e s t e a r n e d after the d e a t h of the i n s u r e d .
T h i s e n a b l e d b e n e f i c i a r i e s of l a r g e a m o u n t s of i n s u r a n c e to r e c e i v e
s u b s t a n t i a l i n t e r e s t i n c o m e s taLX f r e e . The new law r e q u i r e s t h a t the
i n t e r e s t e a r n e d after the d e a t h of the i n s u r e d on life i n s u r a n c e
p r o c e e d s paid in i n s t a l l m e n t s be s u b j e c t to t a x with the exception
of $1,000 a y e a r paid to a s u r v i v i n g s p o u s e .
The p r o v i s i o n of the old law which e x e m p t e d $5,0100 of death
b e n e f i t s paid by an e m p l o y e r to b e n e f i c i a r i e s of a d e c e a s e d
e m p l o y e e had a l s o b e e n u s e d to avoid t a x . The $5,000 l i m i t
applied to paynnents by any one e m p l o y e r . Some p e r s o n s employed
by s e v e r a l c o r p o r a t i o n s a r r a n g e d for e a c h e m p l o y e r to pay a
$5,000 d e a t h benefit, thus p r o v i d i n g the b e n e f i c i a r y with exennpt
b e n e f i t s m a n y t i m e s $ 5 , 0 0 0 . The new law c l o s e s t h i s loophole by
allowing only one $5,000 e x e m p t i o n for e a c h e m p l o y e e .
C l a r i f i c a t i o n and s i m p l i f i c a t i o n
A n o t h e r g r o u p of tax changes m a k e s for s i m p l e r and c l e a r e r tax
l a w s . T a x p a y e r s have b e e n pleading for y e a r s that C o n g r e s s m a k e
the t a x l a w c l e a r e r and nnore definite in o r d e r to lighten the b u r d e n
of c o m p l i a n c e and r e d u c e the a m o u n t of p a p e r w o r k . C l a r i f i c a t i o n
of the t a x l a w s and r e g u l a t i o n s will go a long way t o w a r d r e d u c i n g
a r b i t r a r y i n t e r f e r e n c e with b u s i n e s s d e c i s i o n s , m i n i m i z i n g a r e a s
of u n n e c e s s a r y dispute and c o n t r o v e r s y , and e l i m i n a t i n g painful
u n c e r t a i n t i e s in the final deternnination of tax l i a b i l i t y . It will
obviate n e e d l e s s a d j u s t m e n t s in inconne and deduction i t e m s f r o m
one y e a r to a n o t h e r .
The p r o v i s i o n s of the law a r e now a r r a n g e d m o r e l o g i c a l l y ,
o b s o l e t e m a t e r i a l h a s b e e n d e l e t e d , and the language i s nnade m o r e
c e r t a i n and u n d e r s t a n d a b l e . In s o m e i m p o r t a n t a r e a s w h e r e the
t a x p a y e r had p r e v i o u s l y b e e n f o r c e d to r e l y upon c o u r t d e c i s i o n s
and a d n n i n i s t r a t i v e r u l i n g s , c l e a r s t a t u t o r y guidance h a s been
provided.
C l a r i f i c a t i o n w a s one of the p r i n c i p a l o b j e c t i v e s of the changed
m a d e in the p r o v i s i o n s r e l a t i n g to c o r p o r a t e r e o r g a n i z a t i o n s , r e -
REPORT ON FISCAL OPERATIONS
53
c a p i t a l i z a t i o n s , and d i s t r i b u t i o n s , e s t a t e s and t r u s t s , and p a r t n e r s
and p a r t n e r s h i p s .
A great deal h a s been done to m a k e the law m o r e c e r t a i n .
T a x p a y e r s have b e e n given an additional t h i r t y d a y s for filing
their tax r e t u r n s . About a million individuals have been relieved
of t h e r e s p o n s i b i l i t y of f i l i n g d e c l a r a t i o n s of e s t i m a t e d t a x , a n d
t h o s e of w h o m t h i s r e t u r n i s r e q u i r e d h a v e b e e n p r o v i d e d w i t h
nnore r e a s o n a b l e r u l e s and e x p o s e d to l e s s connplicated and l e s s
severe penalties.
Social Security Developments
Major c h a n g e s w e r e m a d e in the F e d e r a l s o c i a l s e c u r i t y s y s t e m
d e s i g n e d to r e s t o r e benefits to a l e v e l , in r e l a t i o n to w a g e s , m o r e
n e a r l y c o m p a r a b l e to that of e a r l i e r y e a r s , to expand the scope of
the systenn, and to i m p r o v e i t s financial s t a b i l i t y . All the s o c i a l
s e c u r i t y p r o g r a n n s w e r e a m e n d e d , including o l d - a g e and s u r v i v o r s
i n s u r a n c e , r a i l r o a d r e t i r e m e n t , and u n e m p l o y m e n t c o m p e n s a t i o n .
The Social S e c u r i t y Act A n i e n d m e n t s of 1954 (Public Law 7 6 1 ,
a p p r o v e d August 2 1 , 1954) extended the o l d - a g e and s u r v i v o r s
i n s u r a n c e p r o g r a n n to a p p r o x i m a t e l y 10 m i l l i o n a d d i t i o n a l p e r s o n s
beginning J a n u a r y 1, 1955. Among the p r i n c i p a l g r o u p s newly
c o v e r e d w e r e s e l f - e m p l o y e d f a r m o p e r a t o r s (with net e a r n i n g s
f r o m s e l f - e m p l o y m e n t of $400 o r m o r e ) , f a r m w o r k e r s r e c e i v i n g
$100 or m o r e in c a s h w a g e s f r o m a single e m p l o y e r in a c a l e n d a r
y e a r , e m p l o y e e s of State and l o c a l g o v e r n m e n t s c o v e r e d by
r e t i r e m e n t s y s t e m s (other than p o l i c e m e n and f i r e m e n ) , d o m e s t i c
w o r k e r s in p r i v a t e h o m e s r e c e i v i n g $50 in c a s h in a c a l e n d a r
q u a r t e r , and s e l f - e m p l o y e d p r o f e s s i o n a l g r o u p s o t h e r than p h y s i c i a n s , d e n t i s t s , and l a w y e r s . In addition, p r o v i s i o n w a s m a d e for
A m e r i c a n c i t i z e n s e m p l o y e d a b r o a d by f o r e i g n s u b s i d i a r i e s of
A m e r i c a n c o m p a n i e s to be c o v e r e d u n d e r v o l u n t a r y a g r e e m e n t s
b e t w e e n t h e F e d e r a l G o v e r n m e n t and the donnestic p a r e n t c o r p o r a tion.
Maxinnunn a n n u a l e a r n i n g s on which t a x e s a r e i m p o s e d w e r e
i n c r e a s e d f r o m $ 3 , 6 0 0 to $ 4 , 2 0 0 , and the benefit fornnula was
changed to r e f l e c t t h i s i n c r e a s e in the wage b a s e . Benefit a m o u n t s
w e r e r a i s e d by a p p r o x i m a t e l y $ 5 . 0 0 . p e r nnonth for p e r s o n s a l r e a d y
r e c e i v i n g s o c i a l s e c u r i t y b e n e f i t s . A new f o r m u l a for computing
m o n t h l y benefits was adopted as follows: 55 p e r c e n t of the f i r s t
$110 of a v e r a g e m o n t h l y e a r n i n g s and 20 p e r c e n t of the next $ 2 4 0 .
A " d r o p - o u t " p r o v i s i o n w a s a l s o adopted which p e r m i t s the
e x c l u s i o n of the five y e a r s of l o w e s t e a r n i n g s or of no e a r n i n g s
in an i n d i v i d u a l ' s w o r k r e c o r d . T h i s p r o v i s i o n w a s a s u b s t i t u t e
for the " n e w s t a r t " p r o v i s i o n s adopted in the p a s t when c o v e r a g e
was extendedo
Under p r i o r l a w , the r e t i r e m e n t t e s t did not apply to individuals
above the age of 75. Under the new l e g i s l a t i o n , the r e t i r e m e n t t e s t
i s abandoned at age 72. In addition, u n d e r the r e t i r e m e n t t e s t ,
54
1954 REPORT OF THE SECRETARY OF THE TREASURY
a l l o w a b l e e a r n i n g s h a v e b e e n i n c r e a s e d a n d p l a c e d ori a n a n n u a l
b a s i s . T h u s , an individual e a r n i n g up to $1,200 a y e a r will r e c e i v e
full s o c i a l s e c u r i t y b e n e f i t s , and only e a r n i n g s above $ 1 , 2 0 0 will
s e r v e to r e d u c e benefits.
A n e w p r o v i s i o n s a f e g u a r d s t h e b e n e f i t s of d i s a b l e d p e r s o n s .
Individuals who b e c o m e totally disabled will have their wage r e c o r d s
f r o z e n , s o t h a t t h e p e r i o d of d i s a b i l i t y w i l l h a v e n o a d v e r s e e f f e c t
i n t h e c o m p u t a t i o n of b e n e f i t s o r i n s u r e d s t a t u s .
T h e c u r r e n t p a y r o l l t a x r a t e of 2 p e r c e n t e a c h o n e m p l o y e e s a n d
e m p l o y e r s w h i c h b e c a m e e f f e c t i v e J a n u a r y 1, 1 9 5 4 , w a s n o t a f f e c t e d
b y t h e n e w l e g i s l a t i o n . H o w e v e r , t h e m a x i m u m r a t e of 3 - l / 4 p e r c e n t
w h i c h w a s to b e a p p l i c a b l e a f t e r 1969 w a s a m e n d e d s o t h a t t h e t a x
w i l l b e 3 - 1 / 2 p e r c e n t of p a y r o l l s fronn 1 9 7 0 t o 1 9 7 4 a n d 4 p e r c e n t
thereafter.
The unemploynnent corinpensation p r o g r a m was a m e n d e d by
Public Law 767, approved September
1, 1 9 5 4 , t o e x t e n d t h e
F e d e r a l U n e m p l o y m e n t T a x A c t ( T i t l e I X of t h e S o c i a l S e c u r i t y
A c t of 1 9 3 5 ) t o e n n p l o y e r s of f o u r o r m o r e e m p l o y e e s , i n s t e a d of
e m p l o y e r s of e i g h t o r m o r e e n n p l o y e e s . O t h e r c h a n g e s i n c l u d e d :
(1) E x t e n s i o n of u n e m p l o y m e n t c o m p e n s a t i o n t o F e d e r a l c i v i l i a n
e m p l o y e e s w i t h b e n e f i t s p a y a b l e u n d e r t h e t e r m s a n d c o n d i t i o n s of
t h e l a w i n t h e S t a t e i n w h i c h t h e e m p l o y e e i s s t a t i o n e d ; (2) a u t h o r i z a t i o n to S t a t e s to apply t h e i r e x p e r i e n c e r a t i n g p r o v i s i o n s to
n e w l y c o v e r e d e m p l o y e r s a f t e r o n e y e a r of c o v e r a g e i n s t e a d of
t h r e e y e a r s ; a n d (3) e l i m i n a t i o n of q u a r t e r l y i n s t a l l m e n t p a y m e n t s
of F e d e r a l u n e m p l o y n n e n t t a x e s .
T h e f i n a n c i n g of u n e n n p l o y m e n t c o m p e n s a t i o n w a s r e v i s e d b y t h e
E m p l o y m e n t S e c u r i t y A d m i n i s t r a t i v e F i n a n c i n g A c t of 1 9 5 4 ( P u b l i c
L a w 5 6 7 , a p p r o v e d A u g u s t 5, 1954). P r o v i s i o n w a s m a d e for s e t t i n g
a s i d e t h e e x c e s s of t a x c o l l e c t i o n s u n d e r t h e F e d e r a l U n e m p l o y m e n t T a x A c t o v e r the a d m i n i s t r a t i v e e x p e n d i t u r e s i n c u r r e d in
connection with the u n e m p l o y m e n t connpensation p r o g r a m . The
a m o u n t s thus set a s i d e a r e to be available for loans to a State
w i t h a b a l a n c e in i t s u n e n n p l o y m e n t t r u s t fund a c c o u n t w h i c h
f a l l s b e l p w a s p e c i f i e d l e v e l . If t h e a m o u n t i n t h e l o a n f u n d e x c e e d s $200 million, the e x c e s s is to be d i s t r i b u t e d a m o n g the
States.
Public L a w 746, a p p r o v e d August 3 1 , 1954, annended the r a i l r o a d
p r o g r a m s by i n c r e a s i n g unemploynnent and s i c k n e s s benefits and
m a k i n g v a r i o u s c h a n g e s in i r e t i r e m e n t b e n e f i t s . M a x i m u m t a x a b l e
e a r n i n g s w e r e i n c r e a s e d u n d e r both p r o g r a m s fronn $ 3 0 0 to $ 3 5 0
p e r m o n t h (equivalent to the c h a n g e m a d e in the o l d - a g e and
s u r v i v o r s i n s u r a n c e p r o g r a m ) . An innportant benefit change was
t o m a k e a g e d s u r v i v o r b e n e f i t s p a y a b l e a t a g e 60 r a t h e r t h a n a t a g e
65,
INTERNATIONAL FINANCIAL AND MONETARY
DEVELOPMENTS
The t w e l v e - m o n t h p e r i o d u n d e r r e v i e w was one Of f u r t h e r
p r o g r e s s t o w a r d i n t e r n a t i o n a l financial s t a b i l i t y . In the p r e c e d i n g
f i s c a l y e a r nnany c o u n t r i e s had adopted i m p o r t a n t f i s c a l and
REPORT ON FISCAL OPERATIONS
55
m o n e t a r y n n e a s u r e s for b r i n g i n g about g r e a t e r i n t e r n a l stability
in t h e i r e c o n o m i e s , t h u s checking e a r l i e r t e n d e n c i e s t o w a r d inflation. A n u m b e r of o t h e r c o u n t r i e s u n d e r t o o k sinnilar p r o g r a m s
d u r i n g 1953-1954. With a few e x c e p t i o n s , i n t e r n a l p r i c e s w e r e
r e l a t i v e l y s t a b l e , though in sonne i n s t a n c e s t h e r e w e r e d e c l i n e s ,
which did not, h o w e v e r , i n t e r f e r e with l e v e l s of p r o d u c t i o n and
e m p l o y m e n t . The l e v e l of world t r a d e i n c r e a s e d o v e r t h e p r e ceding y e a r and the b a l a n c e s of p a y m e n t s of m a n y c o u n t r i e s ,
e s p e c i a l l y in E u r o p e , i m p r o v e d , so t h a t they w e r e able to a c c u m u l a t e m o n e t a r y r e s e r v e s . The connbination of t h e s e f a c t o r s pointed
t o w a r d a g r e a t e r p o s s i b i l i t y of the r e s u m p t i o n of c u r r e n c y c o n v e r t i b i l i t y , and s o m e i m p o r t a n t s t e p s w.^re t a k e n i n t h i s d i r e c t i o n .
The United S t a t e s b a l a n c e of paynnents and gold m o v e m e n t s
In the f i s c a l y e a r the t o t a l e x p o r t s of goods and s e r v i c e s f r o m
the United S t a t e s a m o u n t e d to $ 2 0 . 6 billion and i m p o r t s to $16.1
billion, c o m p a r e d with $ 2 1 . 1 billion of e x p o r t s and $16.3 b i l l i o n ^
of i m p o r t s in the p r e c e d i n g f i s c a l y e a r . E x p o r t s of goods and
s e r v i c e s on c o m m e r c i a l account in f i s c a l 1954 w e r e $17.2 billion
and i m p o r t s of goods and s e r v i c e s on c o m m e r c i a l accoimt $ 1 3 , 5
billion. The b a l a n c e - o f - p a y m e n t s s u r p l u s of the United S t a t e s on
c o m m e r c i a l a c c o u n t w a s $ 3 . 7 billion. During the y e a r the United
S t a t e s e x p o r t e d nnilitary s u p p l i e s and s e r v i c e s , financed by nnilit a r y aid, in the amount of $3.4 billion. United S t a t e s m i l i t a r y
e x p e n d i t u r e s a b r o a d a m o u n t e d to $ 2 . 6 billion. The United S t a t e s
G o v e r n m e n t m a d e net n o n m i l i t a r y g r a n t s and p a y m e n t s amounting
to $ 1 , 7 billion and n e t Governnnent l o a n s of $ 9 6 m i l l i o n . P r i v a t e
r e s o u r c e s nnade net l o n g - t e r m d o l l a r i n v e s t m e n t s of $906 nnillion,
and gifts and c o n t r i b u t i o n s of $454 m i l l i o n . A s a net r e s u l t of
t h e s e t r a n s a c t i o n s the r e s t of the world gained a t o t a l of $ 1 , 9
billion in gold and d o l l a r . a s s e t s f r b m the United S t a t e s ,
On J u n e 30, 1954, the gold holdings and s h o r t - t e r n n d o l l a r
r e s o u r c e s of foreign c o u n t r i e s (excluding i n t e r n a t i o n a l o r g a n i z a t i o n s and t h e U.S.S.R.) a g g r e g a t e d $24,0 billion, c o m p a r e d with
$ 2 1 , 7 billion at the c l o s e of the p r e c e d i n g f i s c a l y e a r . The i n c r e a s e d gold and d o l l a r r e s e r v e s w e r e l a r g e l y in the United
Kingdom, G e r m a n y , o t h e r E u r o p e a n c o u n t r i e s , and C a n a d a , though
t h e r e w a s a s m a l l i n c r e a s e in L a t i n Annerica. A s i a t i c c o u n t r i e s ,
on the o t h e r hand, g e n e r a l l y had s m a l l e r c o n v e r t i b l e r e s e r v e s
(see t a b l e 111). Net gold s a l e s by the U n i t e d S t a t e s in f i s c a l 1954
a m o u n t e d to $520 m i l l i o n , connpared with $997 m i l l i o n in thc
p r e c e d i n g y e a r . F o r e i g n c o u n t r i e s , whose t o t a l t r a n s a c t i o n s with
the United S t a t e s r e s u l t e d in i n c r e a s e d h o l d i n g s , for the m o s t
p a r t kept t h e m in the f o r m of d o l l a r b a l a n c e s and s h o r t - t e r m
i n v e s t n n e n t s . The t o t a l gold holdings of foreign c o u n t r i e s outside
the Soviet s p h e r e i n c r e a s e d fronn $12.2 billion^ to $ 1 3 . 3 billion.
At the c l o s e of the f i s c a l y e a r the t o t a l gold holdings of the United
S t a t e s a m o u n t e d to $ 2 2 , 0 b i l l i o n , approxim?.tely 59 p e r c e n t of
the w o r l d t o t a l , including i n t e r n a t i o n a l o r g a n i z a t i o n s but excluding
the U.S.S.R.
r Revised.
llncluding the gold holdings ofthe Bank for International Settlements andthe European Payments
Union, but excluding those of the International Monetary Fund.
56
1954 REPORT OF THE SECRETARY OF THE TREASURY
The United S t a t e s T r e a s u r y continued to buy and sell gold at
t h e f i x e d p r i c e of $ 3 5 a n o u n c e ( w i t h a o n e q u a r t e r of 1 p e r c e n t
h a n d l i n g c h a r g e ) o T h e d o m e s t i c a n d i n t e r n a t i o n a l i m p o r t a n c e of
t h e m a i n t e n a n c e of t h i s p o l i c y w a s r e e n n p h a s i z e d a t t h e n n e e t i n g
of t h e I n t e r n a t i o n a l M o n e t a r y F u n d i n S e p t e m b e r 1 9 5 3 . W h i l e n o
c h a n g e s i n U n i t e d S t a t e s p o l i c y aiffecting t h e u s e of g o l d a s a
m e a n s of i n t e r n a t i o n a l s e t t l e n n e n t w e r e n n a d e i n t h e c o u r s e of
t h e y e a r , t h e gold r e g u l a t i o n s w e r e nnodified so a s to simplify
a d m i n i s t r a t i v e p r o c e d u r e s and to r e d u c e t h e r e p o r t i n g , b u r d e n on
p e r s o n s legally u s i n g , refining and dealing in gold for a r t i s t i c ,
professional, and industrial p u r p o s e s .
Movements toward
convertibility
T h e n n a j o r c o u n t r i e s of t h e w o r l d h a v e l o n g a g r e e d o n t h e d e s i r a b i l i t y of i n t e r n a t i o n a l c u r r e n c y c o n v e r t i b i l i t y a n d g r e a t e r f r e e d o m
for w o r l d t r a d c o In t h e p e r i o d s i n c e t h e w a r , h o w e v e r , m o s t
c o u n t r i e s h a v e r e t a i n e d r e s t r i c t i o n s on i n t e r n a t i o n a l p a y m e n t s
a n d f o r e i g n t r a d e t r a n s a c t i o n s . W i t h t h e e x c e p t i o n of a; f e w c o u n t r i e s , c u r r e n c y i n c o n v e r t i b i l i t y h a s b e e n r e l a t e d to deficits in t h e i r
international t r a n s a c t i o n s with other c o u n t r i e s , p a r t i c u l a r l y the
United S t a t e s , w h i l e the deficits in t h e m s e l v e s h a v e b e e n at l e a s t
i n p a r t t h e r e s u l t of d i s p a r i t i e s i n p r i c e s a n d p r o d u c t i o n a n i o n g
the trading nations.
I n a n y g e n e r a l q u e s t i o n of c u r r e n c y c o n v e r t i b i l i t y t h e U n i t e d
K i n g d o m i s a f o c a l p o i n t , s i n c e s t e r l i n g i s u s e d a s t h e n n e a n s of
p a y m e n t f o r a l a r g e p a r t of t h e w o r l d ' s t r a d e a n d e x c h a n g e t r a n s a c t i o n s , a n d t h e U n i t e d K i n g d o m h o l d s m o s t of t h e g o l d iand d o l l a r
r e s e r v e s f o r t h e s t e r l i n g a r e a . I n t h e c o u r s e of t h e y e a r s t e r l i n g
s h o w e d i m p r o v i n g s t r e n g t h i n w o r l d m a r k e t s . T h e r e s e r v e s of t h e
U n i t e d K i n g d o m i n c r e a s e d a n d i n t h e s e c o n d h a l f of t h e f i s c a l
y e a r i t s b a l a n c e of p a y m e n t s w i t h t h e d o l l a r a r e a c a m e c l o s e t o
equilibrium.
In 1952 a n d 1953 t h e U n i t e d K i n g d o m a n d t h e C o m m o n w e a l t h
c o u n t r i e s h a d r e a c h e d a g r e e m e n t u p o n t h e d e s i r a b i l i t y of t a k i n g
s t e p s l e a d i n g t o w a r d t h e a c h i e v e m e n t of f u l l s t e r l i n g c o n v e r t i b i l i t y
o n c u r r e n t a c c o u n t t r a n s a c t i o n s . I n t h e c o u r s e of t h e p a s t y e a r
the B r i t i s h Governnnent continued d i s c u s s i o n s with the United
States G o v e r n m e n t , the C o m m o n w e a l t h c o u n t r i e s , and i m p o r t a n t
E u r o p e a n c o u n t r i e s a b o u t t h e w a y s a n d n n e a n s of a c c o m p l i s h i n g
this end.
T h e M i n i s t e r of E c o n o m i c A f f a i r s of t h e F e d e r a l R e p u b l i c of
G e r m a n y and other G e r m a n officials a l s o d i s c u s s e d convertibility
a n d r e l a t e d p r o b l e m s w i t h t h e o f f i c e r s of t h e T r e a s u r y a t W a s h i n g t o n , O f f i c i a l c o n v e r s a t i o n s w i t h r e p r e s e n t a t i v e s of o t h e r c o u n t r i e s
took p l a c e at v a r i o u s t i m e s , p a r t i c u l a r l y in c o n n e c t i o n with the
a n n u a l n n e e t i n g s of t h e B o a r d of G o v e r n o r s of t h e I n t e r n a t i o n a l
M o n e t a r y F u n d . A t t h e M i n i s t e r i a l M e e t i n g of t h e O r g a n i z a t i o n
for E u r o p e a n Econonnic C o o p e r a t i o n at P a r i s in M a y 1954, t h e r e
w a s a d i s c u s s i o n of t h e p l a n s of t h e U n i t e d K i n g d o m , t h e C o n n m o n w e a l t h of N a t i o n s , a n d of t h e c o n t i n e n t a l E u r o p e a n c o u n t r i e s f o r
m o v i n g f o r w a r d o n c o n v e r t i b i l i t y of c u r r e n c i e s . It w a s a g r e e d t o
e s t a b l i s h a M i n i s t e r i a l E x a m i n a t i o n G r o u p , w h i c h m e t in J u l y in
L o n d o n u n d e r t h e c h a i r m a n s h i p of t h e C h a n c e l l o r o f t h e E x c h e q u e r ,
REPORT ON FISCAL OPERATIONS
57
t o c o n t i n u e s t u d y on c o n v e r t i b i l i t y a n d r e l a t e d p r o b l e m s . T h e T r e a s u r y U n d e r S e c r e t a r y f o r M o n e t a r y A f f a i r s w i t h o t h e r o f f i c i a l s of t h e
G o v e r n m e n t r e p r e s e n t e d t h e United S t a t e s in t h e s e d i s c u s s i o n s .
T h e P r e s i d e n t of t h e U n i t e d S t a t e s , i n h i s n n e s s a g e t o t h e C o n g r e s s
of M a r c h 3 0 , 1 9 5 4 , p l e d g e d t h i s c o u n t r y ' s s u p p o r t f o r t h e u s e of t h e
F u n d ' s r e s o u r c e s a s a m e a n s of h e l p i n g t o n n a i n t a i n t h e e x c h a n g e
v a l u e s of c u r r e n c i e s w h i c h m i g h t b e c o m e c o n v e r t i b l e . A t t h e s a m e
t i m e the P r e s i d e n t p o i n t e d out that i n i t i a t i v e and r e s p o n s i b i l i t y for
convertibility r e s t e d m a i n l y with the c o u n t r i e s u n d e r t a k i n g this step.
A t t h e m e e t i n g of t h e G o v e r n o r s of t h e I n t e r n a t i o n a l M o n e t a r y
F u n d in S e p t e m b e r 1954 t h e p r i n c i p a l s u b j e c t f o r d i s c u s s i o n w a s
t h e " p r o s p e c t s f o r c o n v e r t i b i l i t y . " T h e U n d e r S e c r e t a r y of t h e
T r e a s u r y for Monetary Affairs r e i t e r a t e d the i m p o r t a n c e which
the United States attached to a b r o a d m o v e m e n t to convertibility
a s p a r t of p r o g r a m s of s o u n d d o m e s t i c a n d i n t e r n a t i o n a l f i n a n c e
and a s a b a s i s for i n c r e a s e d p r i v a t e foreign i n v e s t m e n t . He noted
that the F u n d ' s r e s o u r c e s should be a v a i l a b l e to s u p p o r t c o n v e r t i b i l i t y a n d t h a t e f f e c t i v e p r o g r a m s of c u r r e n c y c o n v e r t i b i l i t y w o u l d
a s s u r e t h e r e v o l v i n g c h a r a c t e r of t h e F u n d , U n d e r c o n v e r t i b i l i t y
the F u n d would h a v e a still m o r e i m p o r t a n t r o l e in c o n s u l t i n g
w i t h i t s m e m b e r c o i m t r i e s , a n d it w a s s u g g e s t e d t h a t t h e F u n d ' s
p o l i c i e s c o u l d b e m a d e m o r e e f f e c t i v e if t h e m e m b e r s a c c e p t e d
t h e p e r m a n e n t o b l i g a t i o n s u n d e r A r t i c l e VIII of t h e A g r e e m e n t
a n d r e l i n q u i s h e d t h e i r t r a n s i t i o n a l p r i v i l e g e s u n d e r A r t i c l e XIV
(see exhibit 55). G o v e r n o r s f r o m other c o u n t r i e s supported the
o b j e c t i v e s of c o n v e r t i b i l i t y a n d i n d i c a t e d t h a t t h e i r c o u n t r i e s
w o u l d , a s s o o n a s f e a s i b l e , a d o p t a p p r o p r i a t e m e a s u r e s . In t h e i r
discussion they also emphasized other related m a t t e r s such as
a p p r o p r i a t e t r a d e p o l i c i e s , the n e e d for i n c r e a s e d foreign i n v e s t ment, and appropriate fiscal and m o n e t a r y policies.
W h i l e t h e U n i t e d K i n g d o m h a s n o t t a k e n t h e d e f i n i t i v e s t e p of
fornnal c o n v e r t i b i l i t y , it h a s a d o p t e d s o m e s i g n i f i c a n t m e a s u r e s
p r e p a r i n g the way for p o s s i b l e l a t e r action. T h u s , the r e g u l a t i o n s
affecting t r a n s f e r a b l e sterling (i.e., n o n r e s i d e n t sterling o t h e r t h a n
t h a t of A m e r i c a n , C a n a d i a n , a n d b l o c k e d a c c o u n t s ) w e r e g r e a t l y
s i m p l i f i e d and, with a few e x c e p t i o n s , t r a n s f e r a b l e s t e r l i n g w a s
m a d e available for capital a s well as c u r r e n t account t r a n s a c t i o n s
w i t h i n t h e t r a n s f e r a b l e a c c o u n t a r e a . C o n t i n u i n g i t s p o l i c y of r e opening London c o m m o d i t y m a r k e t s for i m p o r t a n t internationally
t r a d e d basic m a t e r i a l s , the United Kingdom added copper, sulphur,
h e m p , a n d c e r t a i n f o o d s t u f f s t o t h e l i s t of " c o n v e r t i b l e " c o m m o d i t i e s w h i c h , a s a r u l e , nnay b e p u r c h a s e d w i t h o u t s p e c i f i c
l i c e n s e a n y w h e r e in t h e w o r l d and r e s o l d for s t e r l i n g in any m a r k e t *
The London gold m a r k e t w a s a l s o r e o p e n e d , but only for n o n r e s i d e n t s of t h e s t e r l i n g a r e a , a s a s t e p t o w a r d r e s t o r i n g L o n d o n t o i t s
p r e w a r p o s i t i o n a s a m a j o r w o r l d c e n t e r for t r a d e in gold.
Other c o u n t r i e s also took steps t o w a r d freeing international t r a n s a c t i o n s by t h e i r n a t i o n a l s . In J a n u a r y 1954, S o u t h A f r i c a a n n o u n c e d
t h e t e r m i n a t i o n of t r a d e d i s c r i m i n a t i o n , a l t h o u g h n o n d i s c r i m i n a t o r y
r e s t r i c t i o n s on t r a d e in m a n y c o m m o d i t i e s w e r e continued. After
t h e a g r e e m e n t on G e r n n a n d e b t s canne into effect in S e p t e m b e r 1 9 5 3 ,
W e s t G e r m a n y i n s t i t u t e d a n u m b e r of e x c h a n g e r e l a x a t i o n s d e a l i n g
w i t h t r a n s f e r of c u r r e n t e a r n i n g s , l i b e r a l i z a t i o n of b l o c k e d a c c o u n t s , a n d s i m p l i f i c a t i o n of p a y m e n t s m e c h a n i s m s o In F e b r u a r y
58
1954 REPORT OF THE SECRETARY OF THE TREASURY
1954, G e r m a n y a l s o announced i t s f i r s t s t e p in l i b e r a l i z i n g d o l l a r
i m p o r t s with the f r e e i n g of o n e - t h i r d of the i t e m s in the G e r m a n
custonns l i s t . In May, B e l g i u m and the N e t h e r l a n d s announced the
abolition of r e s t r i c t i o n s on i m p o r t s fronn the United S t a t e s on an
e x t e n s i v e l i s t of itenns, which p r e v i o u s l y w e r e p e r m i t t e d to be i m p o r t e d only fronn n o n d o l l a r a r e a s . In o t h e r c o u n t r i e s t h e r e h a s been
Sonne l e s s e n i n g of d i s c r i n n i n a t i o n s a g a i n s t the d o l l a r a r e a , indicative
of i m p r o v e d b a l a n c e - o f - p a y m e n t s p o s i t i o n s . While t h e s e s t e p s a r e
s t i l l f a r fronn c u r r e n c y c o n v e r t i b i l i t y , they r e p r e s e n t m o v e m e n t s
t o w a r d the e l i m i n a t i o n of t r a d e d i s c r i n n i n a t i o n , which would be one
of the p r i n c i p a l i n t e r n a t i o n a l a d v a n t a g e s of c o n v e r t i b i l i t y .
F o r e i g n e x c h a n g e p r o b l e m s and the I n t e r n a t i o n a l M o n e t a r y F\ind
In the c o u r s e of the y e a r the I n t e r n a t i o n a l M o n e t a r y F u n d a g r e e d
to i n i t i a l p a r v a l u e s for the c u r r e n c i e s of Burnna, J o r d a n , and H a i t i ,
which had r e c e n t l y beconne m e m b e r s . It a p p r o v e d c h a n g e s in the
p a r v a l u e s of C h i l e , P a r a g u a y , and M e x i c o , and a l s o a g r e e d to
significant c h a n g e s in the f o r e i g n e x c h a n g e s y s t e m s of B r a z i l ,
C h i l e , and G r e e c e .
The I n t e r n a t i o n a l M o n e t a r y F u n d and the United S t a t e s T r e a s u r y
s i m u l t a n e o u s l y took s t e p s in F e b r u a r y 1954 to a s s i s t P e r u in m a i n t a i n i n g i t s foreign e x c h a n g e s y s t e m . The P e r u v i a n exchange s y s t e m
h a s b e e n b a s e d on a c o n v e r t i b l e c u r r e n c y at a f l e x i b l e , r a t h e r than
a fixed, r a t e with p r a c t i c a l l y no r e s t r i c t i o n s on excharige t r a n s a c t i o n s . A r e d u c e d c a p i t a l inflow, a d e c r e a s e in e x p o r t s , and o t h e r
p r e s s u r e s r e s u l t e d in a s e v e r e d e p r e c i a t i o n of the sol. The
S e c r e t a r y of the T r e a s u r y and r e p r e s e n t a t i v e s of P e r u , on F e b r u a r y
17, 1954, signed an a g r e e m e n t b e t w e e n the two c o u n t r i e s , u n d e r
which the United S t a t e s E x c h a n g e S t a b i l i z a t i o n F u n d u n d e r t o o k to
p u r c h a s e P e r u v i a n s o l e s up to the equivalent of $ 1 2 . 5 m i l l i o n for
the p u r p o s e of s m o o t h i n g out fluctuations in the s o l - d o l l a r r a t e of
e x c h a n g e , if the o c c a s i o n for such u s e should a r i s e . At the s a m e
t i m e , -the I n t e r n a t i o n a l M o n e t a r y Fxmd e n t e r e d into a s t a n d - b y
a r r a n g e m e n t w h e r e b y up to $ 1 2 . 5 nnillion o f t h e F u n d ' s r e s o u r c e s
would be m a d e a v a i l a b l e to P e r u for t h i s p u r p o s e . P e r u a l s o o b t a i n e d a $ 5 m i l l i o n line of c r e d i t f r o m a banking i n s t i t u t i o n in the
United S t a t e s to s u p p l e m e n t t h e s e r e s o u r c e s . A t o t a l o f 4'30 nnillion
w a s t h u s p r o v i d e d to a s s i s t P e r u in nnaintaining i t s flexible exchange
systenn without i m p o s i n g e x c h a n g e r e s t r i c t i o n s ( s e e exhibit 45),
On A p r i l 17, 1954, M e x i c o , a f t e r c o n s u l t a t i o n with the I n t e r n a t i o n a l M o n e t a r y F u n d , d e v a l u e d the p e s o f r o m 8,65 to 12,50 p e s o s
to the United S t a t e s d o l l a r . The F\md at t h i s tinne announced the
c o n c l u s i o n of a s t a n d - b y a r r a n g e m e n t u n d e r which Mexico could
p u r c h a s e up to $50 m i l l i o n in c u r r e n c i e s fronn the F u n d with
M e x i c a n p e s o s , if n e e d e d , d u r i n g the e n s u i n g six mionths. The
T r e a s u r y D e p a r t m e n t a l s o announced that the United S t a t e s - M e x i c o
S t a b i l i z a t i o n A g r e e m e n t , which p r o v i d e d for the p u r c h a s e of
M e x i c a n p e s o s by the United S t a t e s E x c h a n g e S t a b i l i z a t i o n F u n d up
to an a m o u n t equivalent to $75 m i l l i o n , would continue in effect
( s e e exhibit 46), The M e x i c a n p e s o continued a s a c o n v e r t i b l e
c u r r e n c y f r e e of e x c h a n g e r e s t r i c t i o n s .
T h e I n t e r n a t i o n a l M o n e t a r y F u n d , in the c o u r s e oi the y e a r ,
a g r e e d to v a r i o u s c h a n g e s in t h e exchange systenns of i t s m e m b e r
REPORT ON FISCAL OPERATIONS
59
c o i m t r i e s . A m o n g t h e mtorc i m p o r t a n t a c t i o n s w e r e t h c a p p r o v a l of
c h a n g e s in thc official exchange r a t e of the G r e e k d r a c h m a . In
A p r i l 1953, the r a t e had b e e n adjusted f r o m 15,000 to 30,000
d r a c h m a e p e r United S t a t e s d o l l a r . The G r e e k G o v e r n m e n t m a d e
f u r t h e r c h a n g e s in i t s e x c h a n g e systenn in May 1954, including a
r e v i s e d d e n o m i n a t i o n of i t s c u r r e n c y w h e r e b y the r a t e of 30,000
d r a c h m a e b e c a m e a r a t e of 30 d r a c h m a e t o t h e United S t a t e s d o l l a r .
All o t h e r c u r r e n c y r a t e s , p r i c e s , and c l a i m s w e r e s i m u l t a n e o u s l y
a d j u s t e d in t h i s r a t i o . The G r e e k c u r r e n c y s y s t e m h a s a p p r o a c h e d
p r a c t i c a l c o n v e r t i b i l i t y , s i n c e m o s t of the f o r m e r r e s t r i c t i o n s w e r e
e l i m i n a t e d a s a r e s u l t of the econonnic and n i o n e t a r y p r o g r a m of the
Grreek G o v e r n m e n t , c a r r i e d out with t h e a d v i c e of a c u r r e n c y com.m i t t e e on which a B r i t i s h and an A m e r i c a n m e m b e r s e r v e d with
r e p r e s e n t a t i v e s of t h e G r e e k G o v e r n m e n t .
In July 1953, the I n t e r n a t i o n a l M o n e t a r y Fund and, u n d e r the
P h i l i p p i n e T r a d e A g r e e m e n t , thc P r e s i d e n t of the United S t a t e s ,
a s s e n t e d to t h e a c t i o n of the P h i l i p p i n e G o v e m m e n t continuing in
effect t h c P h i l i p p i n e e x c h a n g e t a x of 17 p e r c e n t for an a d d i t i o n a l
p e r i o d to J u n e 30, 1954. T h i s p e r i o d w a s s u b s e q u e n t l y e x t e n d e d .
The shifts in the b a l a n c e s of p a y m e n t s of the m e m b e r covmtries
of the F u n d r e s u l t e d in the c o u r s e of t h c f i s c a l y e a r in Fimd c u r r e n c y s a l e s e q u i v a l e n t to $ 2 2 5 . 8 m i l l i o n . It should bc n o t e d t h a t
Sonne of t h e s e s a l e s involved the p u r c h a s e , a g a i n s t p a y m e n t s in
their
own c u r r e n c y by m e m b e r c o u n t r i e s , of s t e r l i n g and
d e u t s c h e m a r k s . D u r i n g t h e y e a r mcnnbcr c o u n t r i e s r e p u r c h a s e d
t h e i r own c u r r e n c i e s f r o m t h c F u n d with gold and d o l l a r s a m o u n t i n g
to $ 1 9 2 . 8 m i l l i o n .
A m o n g the o t h e r a c t i o n s of the B o a r d of G o v e r n o r s of the Ftmd at
t h e i r a n n u a l m e e t i n g in 1954 w e r e r e s o l u t i o n s for thc a d m i s s i o n of
Afghanistan and the Republic of K o r e a to m e m b e r s h i p , and for t h c
t e r m i n a t i o n of the m e m b e r s h i p of C z e c h o s l o v a k i a . In N o v e m b e r
1953 the F u n d E x e c u t i v e D i r e c t o r s d e c l a r e d C z e c h o s l o v a k i a i n e l i gible to u s e the F u n d ' s r e s o u r c e s . The g o v e r n o r s voted to r e q u i r e
Czechoslovakia
to w i t h d r a w f r o m m e m b e r s h i p , effective on
Decennber 3 1 , 1954, u n l e s s in the i n t e r i m it supplied thc F u n d with
the i n f o r m a t i o n r e q u i r e d u n d e r A r t i c l e VIII, Section 5, and e n t e r e d
into c o n s u l t a t i o n with the F u n d u n d e r A r t i c l e XIV, Section 4, of the
Agreement.
F o r e i g n investnnent, the E x p o r t - I m p o r t Bank, and the I n t e r n a t i o n a l
Bank
In the f i s c a l y e a r ending J u n e 30, 1954, thc e s t i n i a t e d voliune of
A m e r i c a n net private l o n g - t e r m dollar foreign investment was
$906 m i l l i o n . Of t h i s a m o u n t $708 m i l l i o n w a s in t h c f o r m of d i r e c t
i n v e s t m e n t s by A m e r i c a n b u s i n e s s c o n c e r n s . In addition about $800
m i l l i o n annually of e a r n i n g s h a s b e e n r e i n v e s t e d by f o r e i g n s u b s i d i a r i e s of A m e r i c a n c o n c e r n s . At t h c end of the f i s c a l y e a r the
e s t i m a t e d v a l u e of United S t a t e s p r i v a t e f o r e i g n i n v e s t m e n t s
( p r i n c i p a l l y l o n g - t e r m ) w a s $ 2 5 . 0 b i l l i o n . About 68 p e r c e n t o f t h i s
w a s in d i r e c t i n v e s t m e n t s .
In addition to the i n v e s t m e n t s of privat.c A m e r i c a n b u s i n e s s e s and
i n d i v i d u a l s , f o r e i g n g o v e r n m e n t s w e r e o b l i g a t e d to t h e U n i t e d S t a t e s
G o v e r n m e n t f o r $ 1 1 . 8 billion (Jime 30, 1954) u n d e r v a r i o u s loan and
60
1954 REPORT OF THE SECRETARY OF THE TREASURY
c r e d i t a g r e e m e n t s concluded m a i n l y s i n c e the end of World War II.
T h e s e a g r e e m e n t s included the s e t t l e m e n t of l e n d - l e a s e o b l i g a t i o n s ;
the loan u n d e r the A n g l o - A m e r i c a n F i n a n c i a l A g r e e m e n t ; l o a n s by
the E x p o r t - I m p o r t Bank; and o b l i g a t i o n s a r i s i n g f r o m the f o r e i g n
aid and m u t u a l s e c u r i t y p r o g r a m s (see t a b l e 118).
The E x p o r t - I m p o r t Bank a u t h o r i z e d new l o a n s of $250.4 m i l l i o n
d u r i n g the f i s c a l y e a r . T h e s e l o a n s w e r e m a d e to L a t i n A m e r i c a n
c o u n t r i e s , J a p a n , New Z e a l a n d , A f g h a n i s t a n , and P o r t u g a l * L o a n s
w e r e m a d e for v a r i o u s t y p e s of c a p i t a l e q u i p m e n t , cotton c r e d i t s ,
and e c o n o m i c d e v e l o p m e n t . D u r i n g the y e a r the Bank d i s b u r s e d
$565,2 m i l l i o n on loan c o m m i t m e n t s m a d e d u r i n g the y e a r and in
p r e v i o u s y e a r s . It r e c e i v e d $ 3 5 0 , 3 m i l l i o n in r e p a y m e n t s of p r i n c i p a l on l o a n s . At the c l o s e of the y e a r its t o t a l l o a n s outstanding
and c o m m i t m e n t s on l o a n s a g g r e g a t e d $ 3 , 2 0 6 . 2 m i l l i o n .
The I n t e r n a t i o n a l Bank for R e c o n s t r u c t i o n and D e v e l o p m e n t i n t h e
f i s c a l y e a r 1954 m a d e new l o a n s of $324 m i l l i o n , p r i m a r i l y for
p r o j e c t s in the l e s s developed c o u n t r i e s of L a t i n A m e r i c a , A s i a ,
and A f r i c a , Included w e r e p o r t and t e r m i n a l f a c i l i t i e s , h i g h w a y s ,
and p o w e r p r o j e c t s . The Bank d i s b u r s e d $ 302 m i l l i o n in d o l l a r s and
o t h e r c u r r e n c i e s in the c o u r s e o f t h e y e a r . Its t o t a l loan c o m m i t m e n t s to the end of the p e r i o d a m o u n t e d to $ 1,914 m i l l i o n of which
d i s b u r s e m e n t s w e r e $1,406 million.
At the S e p t e m b e r 1954 m e e t i n g of the I n t e r n a t i o n a l Bank s e v e r a l
of the g o v e r n o r s d i s c u s s e d the " P r o s p e c t s for P r i v a t e I n t e r n a t i o n a l
I n v e s t m e n t . " The S e c r e t a r y of the T r e a s u r y d e s c r i b e d the flow of
A m e r i c a n p r i v a t e c a p i t a l a b r o a d and noted that an i n c r e a s e d r a t e of
i n v e s t m e n t would r e q u i r e the g r o w t h of m u t u a l confidence of i n v e s t o r s and b o r r o w e r s . P r i v a t e i n v e s t m e n t a b r o a d dcperided upon
s e c u r i t y of p r i n c i p a l f r o m the a r b i t r a r y a c t i o n s of g o v e r n r n e n t s and
the r i g h t of r e a d y r e p a t r i a t i o n of p r i n c i p a l and e a r n i n g s . He noted
the i m p o r t a n c e of exchange r e s t r i c t i o n s , financial i n s t a b i l i t y in the
capital-receiving countries, andthe sometimes unfavorable attitudes
of t h e i r g o v e r n m e n t s and people a s d e t e r r e n t s to p r i v a t e i n v e s t m e n t
(see exhibit 54). O t h e r g o v e r n o r s n o t e d t h a t inflation and e x c e s s i v e l y
n a t i o n a l i s t i c p o l i c i e s in l e s s d e v e l o p e d c o u n t r i e s d e t e r r e d p r i v a t e
i n v e s t m e n t , while high r a t e s of r e t u r n . o f f e r e d an a t t r a c t i o n . T h e r e
w a s g e n e r a l a g r e e m e n t on the p a r t of the g o v e r n o r s that an i m p r o v e d c l i m a t e for i n v e s t m e n t and g r e a t e r d o m e s t i c and i n t e r n a t i o n a l s t a b i l i t y w e r e e s s e n t i a l to the flow of c a p i t a l d e s i r e d by
the l e s s d e v e l o p e d c o u n t r i e s , and s e v e r a l of the g o v e r n o r s explained
the m e a s u r e s t a k e n by t h e i r g o v e r n m e n t s to a t t r a c t f o r e i g n c a p i t a l .
T h e r e w a s a l s o c o n s i d e r a b l e d i s c u s s i o n of the p r o p o s e d I n t e r n a t i o n a l
F i n a n c e C o r p o r a t i o n a s a d e v i c e for s t i m u l a t i n g p r i v a t e foreign
investment.
P r o b l e m s of e c o n o m i c d e v e l o p m e n t and i n t e r n a t i o n a l c a p i t a l i n v e s t m e n t w e r e a m o n g the m a i n t o p i c s d i s c u s s e d a t t h e T e n t h I n t e r A m e r i c a n C o n f e r e n c e at C a r a c a s , V e n e z u e l a , d u r i n g M a r c h 1954,
at which the T r e a s u r y w a s r e p r e s e n t e d by U n d e r S e c r e t a r y for
Morietary Affairs B u r g e s s , A s s i s t a n t S e c r e t a r y O v e r b y , and staff
m e m b e r s . The c o n f e r e n c e r e v i e w e d p r o b l e m s of public and p r i v a t e
financing of e c o n o m i c d e v e l o p m e n t , r a w m a t e r i a l s p r i c e s and t e r m s
of t r a d e , e x p o r t m a r k e t s , t r a d e r e s t r i c t i o n s , a g r i c u l t u r a l s u r p l u s e s ,
and t e c h n i c a l c o o p e r a t i o n . With a view t o w a r d a c h i e v i n g fuller
REPORT ON FISCAL OPERATIONS
61
a g r e e m e n t on the m e a s u r e s for solution of t h e s e p r o b l e m s , it was
d e c i d e d to c o n v e n e a m e e t i n g of M i n i s t e r s of F i n a n c e or E c o n o m y
of the A m e r i c a n S t a t e s , T h i s c o n f e r e n c e m e t in Rio de J a n e i r o in
N o v e m b e r 1954, S e c r e t a r y H u m p h r e y h e a d e d the United S t a t e s
d e l e g a t i o n , which included the Under S e c r e t a r y of S t a t e , A s s i s t ant S e c r e t a r y of the T r e a s u r y O v e r b y , and staff o f t h e T r e a s ury
and State D e p a r t m e n t s a s w e l l a s of o t h e r i n t e r e s t e d
agencies.
Foreign A s s e t s Control
The F o r e i g n A s s e t s C o n t r o l R e g u l a t i o n s , i s sued u n d e r a u t h o r i t y of
Section 5(b) of the T r a d i n g With the E n e m y A c t , block p r o p e r t y
in the United S t a t e s in which t h e r e i s any C o m m u n i s t China or N o r t h
K o r e a n i n t e r e s t and p r o h i b i t a l l t r a d e or o t h e r financial t r a n s a c t i o n s with t h o s e c o u n t r i e s o r t h e i r n a t i o n a l s . To p r e v e n t e v a s i o n by
f a l s e d e s c r i p t i o n of the o r i g i n of m e r c h a n d i s e , the C o n t r o l r e g u l a t i o n s p r o h i b i t the u n l i c e n s e d i m p o r t a t i o n of v a r i o u s t y p e s of m e r c h a n d i s e chiefly i m p o r t e d f r o m China in the p a s t r e g a r d l e s s of the
a l l e g e d p l a c e of o r i g i n . L i c e n s e s a u t h o r i z i n g the i m p o r t a t i o n of
C h i n e s e - t y p e m e r c h a n d i s e a r e i s s u e d only upon s a t i s f a c t o r y e v i d e n c e of t h e i r n o n - C o m m u n i s t - C h i n e s e o r i g i n . To simplify a d m i n i s t r a t i o n and to r e d u c e the b u r d e n on i m p o r t e r s , the C o n t r o l e n t e r e d
into a g r e e m e n t s with the G o v e r n m e n t s of Hong Kong, J a p a n ,
N a t i o n a l i s t China, the Republic of K o r e a , F r a n c e , and the F e d e r a l
Republic of G e r m a n y u n d e r w h i c h t h e s e g o v e r n m e n t s , p u r s u a n t to
a g r e e d s t a n d a r d s , certify the n o n - C o m m u n i s t - C h i n e s e o r i g i n of
p a r t i c u l a r c o m m o d i t i e s . With t h e s e c e r t i f i c a t i o n s , the c o m m o d i t i e s
m a y be i m p o r t e d into the United S t a t e s u n d e r g e n e r a l l i c e n s e s .
D u r i n g the y e a r a n u m b e r of a d d i t i o n a l individual i t e m s b e c a m e
a v a i l a b l e for certification, u n d e r t h e s e a g r e e m e n t s .
The C o n t r o l h a s p u r s u e d r i g o r o u s e n f o r c e m e n t m e a s u r e s , i n cluding s u c c e s s f u l c r i m i n a l p r o s e c u t i o n s , in dealing with the
v i o l a t i o n s of the r e g u l a t i o n s . S e a r c h e s of m a i l a d d r e s s e d to s u s p e c t
a d d r e s s e s in Hong Kong r e s u l t e d in the s e i z u r e of $250,000 b e l i e v e d
to be intended for p e r s o n s in C o m m u n i s t China, The C o n t r o l h a s
a l s o blocked f o r e i g n bank a c c o u n t s in the United S t a t e s which had
b e e n u t i l i z e d in financing d o l l a r t r a n s a c t i o n s involving a C o m m u n i s t
C h i n e s e i n t e r e s t to the extent that s u c h i n t e r e s t e x i s t e d .
The T r a n s a c t i o n C o n t r o l r e g u l a t i o n s a d m i n i s t e r e d by the C o n t r o l
p r o h i b i t p e r s o n s in the United S t a t e s f r o m p u r c h a s i n g , " s e l l i n g , or
a r r a n g i n g the p u r c h a s e or s a l e of s t r a t e g i c c o m m o d i t i e s outside the
United S t a t e s for u l t i m a t e s h i p m e n t to the Soviet b l o c . T h e s e r e g u l a t i o n s s u p p l e m e n t the e x p o r t c o n t r o l l a w s a d m i n i s t e r e d by the
D e p a r t m e n t of C o m m e r c e .
In May 1954 the^ S e c r e t a r y of the T r e a s u r y sold the c o m p o n e n t
p a r t s of a s h e e t and s t r i p s t e e l m i l l owned by C z e c h o s l o v a k i a ,
p r o d u c e d h e r e but not y e t shipped to that c o u n t r y . This s t e e l m i l l
was b l o c k e d u n d e r Section 5(b) of the T r a d i n g With the E n e m y Act,
An A r g e n t i n e bid w a s the h i g h e s t and r e p r e s e n t e d a fair p r i c e for
the p r o p e r t y sold. A s s u r a n c e s w e r e given that the m i l l would be
u s e d in the A r g e n t i n e and would not be t r a n s s h i p p e d to any o t h e r
c o u n t r y . The p r o c e e d s of the s a l e have b e e n d e p o s i t e d in blocked
a c c o u n t s in s e v e r a l F e d e r a l R e s e r v e B a n k s .
339256 O - 55 •
ADMINISTRATIVE REPORTS
SUMMARY OF PROGRESS IN
MANAGEMENT IMPROVEMENT
T h e t e m p o of t h e m a n a g e m e n t i m p r o v e n n e n t p r o g r a m d u r i n g t h e
f i s c a l y e a r 1 9 5 4 i s b e s t r e f l e c t e d b y a n a n a l y s i s of t h e i m p r o v e m e n t s and savings a c c o m p l i s h e d throughout the D e p a r t m e n t . A
c o n s e r v a t i v e e s t i m a t e of s a v i n g s f r o m p r o j e c t s c o m p l e t e d d u r i n g
t h e y e a r o r s c h e d u l e d f o r i n s t a l l a t i o n a t t h e e n d of t h e y e a r a m o u n t e d
to $ 2 0 . 9 m i l l i o n on an a n n u a l r e c u r r i n g b a s i s .
In a d d i t i o n t o t h e m o n e t a r y b e n e f i t s , t h e m a n a g e m e n t i m p r o v e ment p r o g r a m has produced manifold benefits i n m a n y l e s s tangible
a r e a s such as: (l) I m p r o v e d coordination and control resulting
f r o m b e t t e r o r g a n i z a t i o n a l a l i g n m e n t s ; (2) b e t t e r s u p e r v i s i o n a n d
i n c r e a s e d e m p l o y e e utilization through executive development and
s u p e r v i s o r y t r a i n i n g p r o g r a m s ; (3) s i m p l i f i c a t i o n o f w o r k p r o c e s s e s
b y t h e p r e p a r a t i o n o r r e v i s i o n of w r i t t e n o p e r a t i n g p r o c e d u r e s ;
(4) r e d u c t i o n i n a n d p r e v e n t i o n of l o s t t i m e a c c i d e n t s b y c o n s t a n t
a c t i v i t y i n t h e s a f e t y p r o g r a m ; (5) r e d u c t i o n i n s p a c e r e q u i r e m e n t s
through continuous a p p r a i s a l and r e c o r d s d i s p o s a l and retention p r o g r a m s ; (6) m o r e r e a l i s t i c a c t i o n a n d e l i m i n a t i o n o f u n n e c e s s a r y a n d
m u l t i p l e r e v i e w t h r o u g h p r o p e r d e l e g a t i o n s of a u t h o r i t y a n d r e s p o n s i b i l i t y ; (7) a i d t o t o p m a n a g e m e n t t h r o u g h i m p r o v e m e n t of b u d g e t a r y
a n d p e r f o r m a n c e r e p o r t i n g ; a n d (8) i m p r o v e d s e r v i c e s t o t h e p u b l i c
t h r o u g h s i m p l i f i c a t i o n of p r o c e d u r e s a n d r e p o r t i n g r e q u i r e m e n t s .
T o t a l p a i d c i v i l i a n e m p l o y m e n t i n t h e D e p a r t m e n t on J u n e 30, 1954,
n u m b e r e d 8 0 , 8 9 3 , a r e d u c t i o n of 4 , 5 9 7 f r o m t h a t of a y e a r e a r l i e r .
(See t a b l e 119.)
A T r e a s u r y M a n a g e m e n t C o m m i t t e e was e s t a b l i s h e d for the p u r p o s e of f u r t h e r i n g i n e v e r y w a y p o s s i b l e t h e T r e a s u r y ' s e f f o r t s t o
i m p r o v e a n d r e d u c e t h e c o s t of i t s s e r v i c e s . C o m p o s e d of t h e t o p
a d m i n i s t r a t i v e r e p r e s e n t a t i v e f r o m each b u r e a u , with the A d m i n i s t r a t i v e A s s i s t a n t S e c r e t a r y s e r v i n g a s c h a i r m a n , t h e p u r p o s e of
t h e c o m m i t t e e i s t o a i d i n t h e p r o c e s s of s e a r c h i n g f o r b e t t e r
m e a n s of c o n d u c t i n g o p e r a t i o n s b y s u g g e s t i n g w a y s t o s t i m u l a t e
i n t e r e s t and p a r t i c i p a t i o n in m a n a g e m e n t i m p r o v e m e n t , by a d v i s i n g
on and i n i t i a t i n g p l a n s to i m p r o v e o p e r a t i o n s , and by s e r v i n g as a
f o r u m f o r t h e e x c h a n g e of i n f o r m a t i o n . A l t e r n a t e s t o t h e m e m b e r s
s e r v e a s a s t a f f g r o u p w i t h t h e d u a l p u r p o s e of i n i t i a t i n g m a t t e r s f o r
a t t e n t i o n of t h e c o m m i t t e e a n d of s t u d y i n g a n d f o l l o w i n g - u p o n p r o b l e m s r e f e r r e d t o it by the c o m m i t t e e .
Two m a n a g e m e n t surveys were m a d e during the y e a r . A private
m a n a g e m e n t e n g i n e e r i n g f i r m was engaged to conduct a c o m p r e h e n s i v e s u r v e y of t h e B u r e a u of E n g r a v i n g a n d P r i n t i n g . T h e s u r v e y
r e p o r t w a s r e c e i v e d s h o r t l y a f t e r t h e c l o s e of t h e f i s c a l y e a r a n d
initial steps have been taken toward acting upon the r e c o m m e n d a t i o n s . A n o t h e r f i r m wa:s e n g a g e d t o m a k e a s u r v e y of t h e o r g a n i z a t i o n a n d g e n e r a l m a n a g e m e n t of t h e F i s c a l S e r v i c e . W o r k o n t h i s
s u r v e y was s t a r t e d in July 1954.
A Safety A d v i s o r y C o m m i t t e e was e s t a b l i s h e d with r e s p o n s i b i l i t y
f o r p o l i c y r e c o m m e n d a t i o n s o n a n d r e v i e w of t h e d e p a r t m e n t a i s a f e t y
p r o g r a m . A continuing p r o g r a m is m a i n t a i n e d by the F i r e and Safety
C o u n c i l to s t i m u l a t e i n t e r e s t and a c t i o n at all l e v e l s . T h e T r e a s u r y ' s
a c c i d e n t f r e q u e n c y r a t e ^ w a s 5.1 p e r c e n t f o r t h e c a l e n d a r y e a r 1 9 5 3 ,
reflecting a slight reduction from the y e a r before.
iThe number of disabling accidents per 1,000,000 man-hours worked.
65
66
1954 REPORT OF THE SECRETARY OF THE TREASURY
A C o m m i t t e e on P r i n t i n g and P u b l i c a t i o n was r e e s t a b l i s h e d to
e x e r c i s e g e n e r a l s u p e r v i s i o n o v e r all p r i n t i n g and binding o r i g i n a t ing in and p r o c u r e d for u s e of the D e p a r t m e n t . T h i s c o m m i t t e e i s
r e s p o n s i b l e a l s o for m a k i n g r e c o m m e n d a t i o n s r e g a r d i n g r e g u l a tions g o v e r n i n g or affecting t h e g e n e r a l p r i n t i n g p o l i c i e s of the D e partment.
T h e r e was m o r e p a r t i c i p a t i o n i n t h e T r e a s u r y a w a r d s p r o g r a m
d u r i n g the f i s c a l y e a r 1954 t h a n for any y e a r s i n c e the f i s c a l y e a r
1949. T h e r e w e r e 3,073 s u g g e s t i o n s r e c e i v e d , and 686 adopted for
which c a s e a w a r d s of $15,745 w e r e p a i d . E s t i m a t e d annual s a v i n g s
r e s u l t i n g f r o m adopted s u g g e s t i o n s t o t a l e d $ 2 6 6 , 3 0 4 . S a l a r y i n c r e a s e s for s u p e r i o r a c c o m p l i s h m e n t w e r e g r a n t e d to 36 e m p l o y e e s .
The D e p a r t m e n t a l s o g r a n t e d 9 individual and 7 g r o u p efficiency
a w a r d s to 45 e m p l o y e e s u n d e r " T i t l e X , " amounting to $ 6 , 0 1 4 ,
b a s e d upon d e m o n s t r a b l e annual s a v i n g s of a p p r o x i m a t e l y $ 369,536.
In addition, 2 e x c e p t i o n a l and 10 m e r i t o r i o u s c i v i l i a n s e r v i c e h o n o r
awards were granted.
A c r i t i c a l r e v i e w of m o t o r v e h i c l e equipment was conducted in
an effort to a t t a i n g r e a t e r economy and efficiency in o p e r a t i o n and
m a i n t e n a n c e . The t o t a l n u m b e r of v e h i c l e s was r e d u c e d by 220 d u r i n g
the f i s c a l y e a r . O p e r a t i n g and m a i n t e n a n c e e x p e n s e a v e r a g e d $ .0412
p e r m i l e , a r e d u c t i o n of 8 p e r c e n t c o m p a r e d with the y e a r beforfe,
while an a v e r a g e of 12.53 m i l e s p e r gallon of fuel was a t t a i n e d , a
2.4 p e r c e n t gain.
Continuation of the r e c o r d s m a n a g e m e n t p r o g r a m r e s u l t e d in t h e
d e s t r u c t i o n of 153,600 cubic feet of r e c o r d s a n d t h e t r a n s f e r , to r e c o r d s c e n t e r s and a r c h i v e s , of 206,500 cubic feet of r e c o r d s . T h e s e
a c t i o n s r e l e a s e d a p p r o x i m a t e l y 45,000 4 - d r a w e r filing c a b i n e t s and
about 247,000 s q u a r e feet of s p a c e for r e a s s i g n m e n t o r r e u s e .
The following e x a m p l e s of specific m a n a g e m e n t i m p r o v e m e n t a c t i o n s r e p r e s e n t only the m o r e significant a r e a s in which s a v i n g s
w e r e i d e n t i f i a b l e . H u n d r e d s of p r o j e c t s of a l e s s e r d e g r e e w e r e c o m p l e t e d . Many p r o j e c t s r e s u l t e d in i m p r o v i n g o p e r a t i o n s although
benefits could not be m e a s u r e d in m o n e t a r y t e r m s . All^ h o w e v e r ,
c o n t r i b u t e d to the m o r e effective and efficient o r g a n i z a t i o n and
m a n a g e m e n t of t h e D e p a r t m e n t .
P r o v i s i o n s of the C u s t o m s S i m p l i f i c a t i o n Act of 1953 (Public Law
243, a p p r o v e d August 8, 1953) m a d e p o s s i b l e the i n s t i t u t i o n of m o r e
effective and efficient p r o c e d u r e s such as the adoption of m o d e r n
audit p r a c t i c e s with r e s p e c t to v e r i f i c a t i o n of liquidations of f o r m a l
e n t r i e s ; a r e v i s e d p r o c e d u r e for s p o t - c h e c k i n g c o l l e c t o r s ' m o n e y
a c c o u n t s by c o m p t r o l l e r s , in lieu of t h e 100 p e r c e n t audit; and the
e l i m i n a t i o n of the r e q u i r e m e n t for i s s u a n c e of t o u r i n g p e r m i t s for
a u t o m o b i l e s owned by n o n r e s i d e n t s being c l e a r e d at Ca^nadlan and
M e x i c a n b o r d e r p o r t s . Annual s a v i n g s a r e e s t i m a t e d at $ 3 9 0 , 0 0 0 .
S t a n d a r d s w e r e i s s u e d for the u n i f o r m a s s i g n m e n t of p e r s o n n e l
to C u s t o m s i n s p e c t i o n a l a c t i v i t i e s , r e s u l t i n g in m o r e efficient u t i l i zation of m a n p o w e r . Annual s a v i n g s a r e e s t i m a t e d at $ 2 7 5 , 0 0 0 .
During the f i s c a l y e a r , 66 m a j o r field offices of the C u s t o m s
S e r v i c e w e r e i n s p e c t e d r e s u l t i n g in n u m e r o u s changes in p r o c e d u r e s
and duty a s s i g n m e n t s and a p p l i c a t i o n of w o r k p r o d u c t i o n s t a n d a r d s .
Annual s a v i n g s a r e e s t i m a t e d at $ 1 1 4 , 0 0 0 .
In the B u r e a u of E n g r a v i n g and P r i n t i n g i n s t a l l a t i o n of a u t o m a t i c
f e e d e r s on intaglio f l a t - b e d p r e s s e s u s e d for p r i n t i n g c u r r e n c y
ADMINISTRATIVE REPORTS
67
e l i m i n a t e d the r e q u i r e m e n t for an a s s i s t a n t at e a c h p r e s s . Annual
s a v i n g s a r e e s t i m a t e d at $ 8 3 5 , 0 0 0 .
Wet c u r r e n c y p a p e r i s now r e c e i v e d at the B u r e a u of E n g r a v i n g
and P r i n t i n g d i r e c t f r o m the p a p e r m i l l i n a h u m i d o r p a c k a g e . This
e l i m i n a t e d the e n t i r e wetting o p e r a t i o n and hand count p r e v i o u s l y
r e q u i r e d and r e d u c e d the c o s t of p a p e r by e l i m i n a t i n g the d r y i n g
o p e r a t i o n at the p a p e r m i l l . Annual s a v i n g s a r e e s t i m a t e d at
$359,000.
Offset p r i n t i n g i s now u s e d b y t h e B u r e a u o f E n g r a v i n g and P r i n t ing to piroduce the $25 d e n o m i n a t i o n of S e r i e s E United S t a t e s s a v ings bonds i n s t e a d of the m o r e c o s t l y intaglio p r i n t i n g p r o c e s s . Ann u a l s a v i n g s a r e e s t i m a t e d at $ 4 4 6 , 4 5 4 .
The B u r e a u of E n g r a v i n g and P r i n t i n g i n s t a l l e d : (l) an a u t o m a t i c
p a c k a g e w r a p p i n g m a c h i n e for c a r t o n i n g p o s t a g e s t a m p s which r e s u l t e d in the e l i m i n a t i o n of 17 p o s i t i o n s , in addition to p r o v i d i n g a
b e t t e r p a c k a g e ; and (2) v a c u u m a t i c p a p e r counting m a c h i n e s and
e l e c t r o n i c note c o u n t e r s that r e p l a c e d m a n u a l o p e r a t i o n s . Annual
s a v i n g s a r e e s t i m a t e d at $ 6 8 , 1 0 0 .
F u r t h e r c o n s o l i d a t i o n s and i m p r o v e m e n t s in c e n t r a l accounting
functions put into effect by the B u r e a u of Accounts included m e c h anizing c e r t a i n p o s t i n g o p e r a t i o n s ; shifting additional w o r k to
punch c a r d s ; d i s c o n t i n u i n g t e l e t y p e r e p o r t i n g s y s t e m for obtaining
daily r e c e i p t and e x p e n d i t u r e data; and c o n s o l i d a t i n g two t a b u l a t i n g
e q u i p m e n t i n s t a l l a t i o n s which r e d u c e d r e n t a l c o s t s . Annual s a v i n g s
a r e e s t i m a t e d at $ 6 5 , 6 0 0 .
A f u r t h e r r e d u c t i o n of a p p r o x i m a t e l y one-half cent in the unit c o s t
of i s s u i n g c h e c k s was a c c o m p l i s h e d b y the D i v i s i o n of D i s b u r s e m e n t
p r i n c i p a l l y t h r o u g h the u t i l i z a t i o n o f newly developed e q u i p m e n t . A n n u a l s a v i n g s a r e e s t i m a t e d at $ 6 8 2 , 9 0 0 .
R e v i s e d p r o c e d u r e s for the r e t i r e m e n t of United S t a t e s s a v i n g s
bonds e l i m i n a t e d the g r e a t e r p o r t i o n of d e t a i l work p e r f o r m e d in
F e d e r a l R e s e r v e Banks by t h e c e n t r a l i z a t i o n of s u c h work into the
t h r e e r e g i o n a l offices of the R e g i s t e r of the T r e a s u r y , B u r e a u of
t h e P u b l i c Debt, r e s u l t i n g in s u b s t a n t i a l e c o n o m i e s in p e r s o n n e l ,
e q u i p m e n t , s p a c e , and o t h e r r e l a t e d i t e m s . Annual s a v i n g s a r e e s t i m a t e d at $ 8 0 0 , 0 0 0 .
The s a l e was d i s c o n t i n u e d of United S t a t e s s a v i n g s bonds by p o s t
offices in l o c a l i t i e s w h e r e o t h e r i s s u i n g f a c i l i t i e s a r e a v a i l a b l e .
P r o v i s i o n has b e e n m a d e for s a l e of t h e s e bonds in such a r e a s by
c o m m e r c i a l b a n k s at no c o s t to the G o v e r n m e n t . Annual s a v i n g s a r e
e s t i m a t e d at $.1,800,000.
The p r o j e c t of changing f r o m p a p e r c h e c k s to c a r d c h e c k s for
G o v e r n m e n t e x p e n d i t u r e s , involving the c o m b i n e d efforts ofthe B u r e a u of the Budget, the G e n e r a l Accounting Office, and t h e T r e a s u r y
D e p a r t m e n t , has b e e n continued and extended to additional a c c o u n t s .
Check p a y m e n t o p e r a t i o n s in t h e Office of the T r e a s u r e r of the
United S t a t e s a r e m o r e e c o n o m i c a l when c a r d c h e c k s a r e u s e d .
Annual s a v i n g s a r e e s t i m a t e d at $ 1 1 2 , 0 0 0 .
D e c e n t r a l i z a t i o n of the I n t e r n a l R e v e n u e S e r v i c e was c o m p l e t e d
d u r i n g the y e a r . O p e r a t i o n a l a c t i v i t i e s c a r r i e d on i n t h e n a t i o n a l office w e r e d e c e n t r a l i z e d to field offices, to the extent p r a c t i c a b l e .
M a j o r a c t i v i t i e s which h a v e b e e n d e c e n t r a l i z e d i n c l u d e : P o s t r e v i e w
of audited t a x r e t u r n s ; housing of c o r p o r a t i o n i n c o m e t a x r e t u r n s ;
p r o c e s s i n g of c e r t a i n a p p l i c a t i o n s for i n s p e c t i o n of r e t u r n s and r e -
68
1954 REPORT OF THE SECRETARY OF THE TREASURY
lated documents; control and service procedures relating to bankr u p t c y , r e c e i v e r s h i p , a n d o t h e r d e b t o r c a s e s ; p r o c e s s i n g of c e r t a i n
offers in c o m p r o m i s e ; and c e r t a i n a d m i n i s t r a t i v e functions. Annual
savings a r e e s t i m a t e d at $3,500,000.
B e t t e r u t i l i z a t i o n of p e r s o n n e l h a s b e e n e f f e c t e d i n t h e I n t e r n a l
Revenue S e r v i c e . M o r e effective and efficient collection m e t h o d s
have been devised which free collection officers from m u c h routine
paperwork, i n c r e a s e their productive capacity, and a c c e l e r a t e the
c o l l e c t i o n of d e l i n q u e n t a c c o u n t s a n d t h e s e c u r i n g of d e l i n q u e n t r e t u r n s . T h e p r a c t i c e of d e t a i l i n g s u b s t a n t i a l n u m b e r s of h i g h - s a l a r i e d
t e c h n i c a l p e r s o n n e l t o a s s i s t on p r o c e s s i n g r e t u r n s d u r i n g t h e filing
p e r i o d h a s been discontinued. In addition, the T a x p a y e r A s s i s t a n c e
P r o g r a m w a s r e v a m p e d to c a r r y out n e w policies and objectives
of c o n t i n u e d e s s e n t i a l s e r v i c e t o t h e p u b l i c . A n n u a l s a v i n g s a r e
e s t i m a t e d at $4,926,000.
. A r e v i s e d p l a n f o r t h e s y s t e m a t i c e x a m i n a t i o n of t a x r e t u r n s of
the principal r a c k e t e e r s has resulted in making a substantial n u m b e r of r e v e n u e a g e n t s a n d s p e c i a l a g e n t s a v a i l a b l e f o r o t h e r i n v e s tigative work. Annual savings a r e e s t i m a t e d at $1,837,000.
T h e p r a c t i c e of s h i p p i n g c o i n s b y a r m o r e d c a r o r t r u c k w a s
a d o p t e d , w h e r e p r a c t i c a b l e , b y t h e B u r e a u of t h e M i n t . A n n u a l s a v ings a r e e s t i m a t e d at $250,000.
In t h e U n i t e d S t a t e s C o a s t G u a r d , e c o n o m i e s h a v e b e e n m a d e by
transferring or discontinuing certain shore establishments. Three
l o r a n stations w e r e t r a n s f e r r e d to Canada in r e t u r n for an a g r e e m e n t providing for continued operation by that country; the supply
depot at Cleveland, Ohio, was m o v e d to the Navy Supply Depot at
G r e a t L a k e s , 111.; o n e r a d a r b e a c o n s t a t i o n w a s t r a n s f e r r e d t o t h e
Navy; and, six r a d a r beacon stations w e r e disestablished. Annual
savings a r e e s t i m a t e d at $380,700.
A r e o r g a n i z a t i o n of t h e h e a d q u a r t e r s s t a f f of t h e U n i t e d S t a t e s
Savings Bonds Division, which was r e g r o u p e d and consolidated into
four m a j o r b r a n c h e s , e l i m i n a t e d p r o g r a m specialization and r e d u c e d
a d m i n i s t r a t i v e c o s t s . Annual savings a r e e s t i m a t e d at $125,000.
CHANGES IN ORGANIZATION
A T r e a s u r y - s p o n s o r e d b i l l p r o v i d i n g , f o r two new s t a t u t o r y p o s i t i o n s in t h e D e p a r t m e n t of t h e T r e a s u r y , an Under S e c r e t a r y for
M o n e t a r y A f f a i r s which r e p l a c e d t h e p o s i t i o n of Deputy to t h e S e c r e t a r y , and an a d d i t i o n a l A s s i s t a n t S e c r e t a r y , becanne P u b l i c Law
516 (68 S t a t . 496) on J u l y 22, 1954. T h e s a m e a c t a b o l i s h e d the
p o s i t i o n s of A s s i s t a n t T r e a s u r e r of t h e United S t a t e s and A s s i s t ant R e g i s t e r of t h e T r e a s u r y .
T h e d u t i e s of t h e U n d e r S e c r e t a r y for M o n e t a r y A f f a i r s , as p r e s c r i b e d by t h e S e c r e t a r y of t h e T r e a s u r y , r e l a t e to p u b l i c debt
o p e r a t i o n s and t o m o n e t a r y a f f a i r s , and i n c l u d e g e n e r a l s u p e r v i s i o n
o v e r t h e functions a s s i g n e d to t h e A s s i s t a n t S e c r e t a r y who s u p e r v i s e s t h e Office of I n t e r n a t i o n a l F i n a n c e ( i n c l u d i n g t h e F o r e i g n A s s e t s C o n t r o l ) j the United S t a t e s Savings Bonds D i v i s i o n , and t h e
Office of t h e C o m p t r o l l e r of t h e C u r r e n c y ; o v e r t h e functions a s signed to the F i s c a l A s s i s t a n t S e c r e t a r y which include the s u p e r -
ADMINISTRATIVE REPORTS
69
v i s i o n of the F i s c a l S e r v i c e ; and o v e r t h o s e a s s i g n e d to the new
A s s i s t a n t S e c r e t a r y r e l a t i n g to s o m e of the r e m a i n i n g functions of
the 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,nd its liquidation.
At the t i m e the lending a u t h o r i t y of the 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 was t e r m i n a t e d by the act a p p r o v e d June 30, 1953
(67 S t a t . 240), effective S e p t e m b e r 28, 1953, c e r t a i n functions of
the C o r p o r a t i o n w e r e t r a n s f e r r e d to the S e c r e t a r y ofthe T r e a s u r y .
The C o r p o r a t i o n , a c t i n g for the S e c r e t a r y of the T r e a s u r y , a d m i n i s t e r e d t h e s e functions until June 30, 1954, imder the d i r e c t i o n
of t h e A d m i n i s t r a t o r , who was appointed S p e c i a l A s s i s t a n t to the
S e c r e t a r y for t h i s p u r p o s e .
The s u p e r v i s i o n of t h e s e functions, t o g e t h e r with t h o s e r e l a t i n g
to the liquidation of the C o r p o r a t i o n with which the S e c r e t a r y of
the T r e a s u r y p r e v i o u s l y had b e e n c h a r g e d u n d e r Section 10 of the
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 Act, as a m e n d e d (15 U.S.C.
609), was a s s i g n e d to the new A s s i s t a n t S e c r e t a r y . F o r adminiist r a t i o n of t h e s e functions, which i n c l u d e s the c a r r y i n g out of c e r t a i n lending p r o v i s i o n s u n d e r Section 409 o f t h e F e d e r a l Civil D e f e n s e Act of 1950 and Section 302 of the Defense P r o d u c t i o n Act of
1950, as a m e n d e d , t h e r e was e s t a b l i s h e d on J u l y l , 1954, in the Office of the S e c r e t a r y of the T r e a s u r y the Office of Defense Lending ^
of which the new A s s i s t a n t S e c r e t a r y s e r v e s as D i r e c t o r . He a l s o
s e r v e s as A d m i n i s t r a t o r of the F e d e r a l F a c i l i t i e s C o r p o r a t i o n which
was o r g a n i z e d on J u l y 1, 1954, to t a k e o v e r the tin and synthetic
r u b b e r p r o g r a m s of the 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 . (See
exhibit 68, O r d e r No. 181.)
BUREAU OF THE COMPTROLLER OF THE CURRENCY2
The B u r e a u o f t h e C o m p t r o l l e r of the C u r r e n c y i s r e s p o n s i b l e for
the execution of laws r e l a t i n g to the s u p e r v i s i o n of national banking
a s s o c i a t i o n s . Duties of the office include t h o s e incident to the f o r m a tion and c h a r t e r i n g of new n a t i o n a l banking a s s o c i a t i o n s , the e x a m i nation twice y e a r l y of all n a t i o n a l b a n k s , the e s t a b l i s h m e n t of
b r a n c h b a n k s , the c o n s o l i d a t i o n of b a n k s , the c o n v e r s i o n of State
banks into n a t i o n a l b a n k s , r e c a p i t a l i z a t i o n p r o g r a m s , and the i s s u a n c e of F e d e r a l R e s e r v e n o t e s .
Changes in the condition of active n a t i o n a l banks
The t o t a l a s s e t s of the 4,842 active n a t i o n a l banks in the United
S t a t e s and p o s s e s s i o n s on J u n e 30, 1954, amounted to $108,914
m i l l i o n , as c o m p a r e d with the t o t a l a s s e t s of 4,881 banks amounting
to $ 1 0 3 , 7 1 1 m i l l i o n on J u n e 30, 1953, a n i n c r e a s e of $ 5 , 2 0 3 m i l l i o n
d u r i n g the y e a r . The d e p o s i t s of the banks in 1954 totaled $99,645
m i l l i o n , which was $ 4 , 8 9 6 m i l l i o n m o r e t h a n in 1953. The loans In
1954 w e r e $37,782 m i l l i o n , exceeding the 1953 figure by $1,245
1 Treasury Department Order No. 181-3, dated and effective December 7, 1954, established the Office of Production and Defense Lending and the Defense Lending Division and abolished the Officeof
Defense Lend ing. The new Office and the new Division are under the supervision of the new Assistant
Secretary.
2 More detailed information concerning the Bureau of the Comptroller of the Currency is contained
in the separate Annual Report of the Comptroller of the Currency. ;
1954 REPORT OF THE SECE^ETARY OF THE TREASURY
70
Abstract o£ reports of condition of active national banks on the date of each report from June 30, 1953, to
June 30, 1954
[ In thousands of dollars ]
June 30, 1953 Sept. 30, 1953
(4,881 banks) (4,871 banks)
Dec. 31, 1953 Apr. 15, 1954
(4,864 banks) (4,848 banks)
June 30, 1954
(4,842 banks)
ASSETS
Loans and discounts, including
36,537,355
37,049,337
37,944,146
37,703,648
37,782,386
33,025,310
35,287,324
35,563,334
34,560,499
35,835,931
23,744
25,429
25,429
26,997
26,424
6,218,735
6,346,681
6,330,265
6,783,450
6,954,581
2,066,839
2,035,365
2,086,723
1,936,535
1,905,204
200,901
201,809
204,482
209,664
210,936
U. S. Government securities,
Obligations guaranteed by U. S.
Obligations of States and
Other bonds, notes, and
Corporate stocks, including
stocks of Federal Reserve Banks
78,072,884
80,945,945
82,154,379
81,220,793
24,343,646
24,030,168
26,545,518
24,203,082
24 699 908
776,291
796,042
807,527
838,088
847 463
23,775
Total loans and securities..
Cash, balances with other banks-,
including reserve balances, and
cash items in process of col-
82,715,462
25,033
30,811
18,213
18 565
Bank premises owned, furniture
Real estate owned other than bank
Investments and other assets indirectly representing bank
premises or other real estate..
Customers' liability on accept-
59,610
51,650
51,117
52,610
171,489
191,856
195,612
175 054
183,772
129,525
210,141
120,762
216,485
118,473
217,938
154,054
253 115
151 438
103,711,276
Income accrued but not yet collected
;..
58,911
122,472
106,359,190
110,116,699
106,898,897
108 913 615
53,886,291
53,784,450
23,424,828
23,978,113
LIABILITIES
Demand deposits of individuals,
partnerships, and corporations.
Time deposits of individuals,
partnerships, and corporations.
Deposits of U. S. Government and
53,369,383
53,791,070
56,614,391
22,285,843
22,548,572
22,863,011
2,486,392
3,873,352
2,830,669
2,480,414
3 627 105
6,627,528
8,596,634
6,222,445
8,881,040
6,793,634
10,155,942
6,917,357
9,143,411
7 063 425
9 752 516
.
Deposits of States and political
Other deposits (certified and
cashiers' checks, etc.)
1,383,168
1,301,283
1,689,586
1,477,337
1,-439,122
94,748,953
96,617,762
100,947,233
97,329,638
99 644 731
70,774,840
23,974,113
72,362,237
24,255,525
76,189,784
24,757,449
71,639,048
25,690,590
73,280,391
26,364,340
45,510
Total deposits...
483,231
14,851
319,466
28,751
206
133,223
196
179,551
190
203,910
341
205,972
434
182,799
314,745
389,395
840,520
324,774
500,102
897,728
320,592
491,117
729,290
319,647
489,048
614,645
96,472,552
99,003,344
102,707,183
99,278,757
101,208,715
2,264,629
3,410,122
1,296,655
2,273,883
3,425,699
1,387,126
2,301,757
3,523,443
1,310,761
2,352,681
3,608,648
1,385,346
2,371,078
3,645,330
1,404,866
Bills payable, rediscounts, and
other liabilities for borrowed
Mortgages or other liens on bank
premises and other real estate.
Income collected but not yet
Expenses accrued and unpaid
Other liabilities
Total liabilities
.
310,814
407,537
633,649
CAPITAL ACCOUNTS
Capital stock
Undivided profits
Reserves and retirement account
267,318
Total capital accounts
269,138
273,555
273,465
283,626
7,238,724
7,355,846
7,409,516
7,620,140
7,704,900
103,711,276
106,359,190
110,116,699
106,898,897
108,913,615
Total liabilities and cap-
71
ADMINISTRATIVE REPORTS
m i l l i o n . S e c u r i t i e s held t o t a l e d $ 4 4 , 9 3 3 m i l l i o n , an i n c r e a s e of
$3,397 m i l l i o n d u r i n g the y e a r . C a p i t a l funds of $7,705 m i l l i o n
w e r e $466 m i l l i o n m o r e than in the p r e c e d i n g y e a r .
T h e a s s e t s and l i a b i l i t i e s of the a c t i v e n a t i o n a l banks a r e shown
in the p r e c e d i n g s t a t e m e n t .
S u m m a r y of c h a n g e s in n u m b e r and c a p i t a l stock of national banks
The a u t h o r i z e d c a p i t a l stock of the 4,842 national banks in e x i s t ence on J u n e 30, 1954, c o n s i s t e d of c o m m o n stock a g g r e g a t i n g
$2,367 m i l l i o n , an i n c r e a s e during the y e a r of $102 m i l l i o n , and
p r e f e r r e d stock a g g r e g a t i n g $5 m i l l i o n , a d e c r e a s e d u r i n g t h e y e a r
of $1 m i l l i o n . The t o t a l net i n c r e a s e of c a p i t a l stock was $101
m i l l i o n . D u r i n g the y e a r c h a r t e r s w e r e i s s u e d to 20 national banks
having an a g g r e g a t e of $ 5 m i l l i o n of c o m m o n s t o c k . T h e r e was a
net d e c r e a s e of 42 in the n u m b e r of n a t i o n a l banks in the s y s t e m
by r e a s o n of v o l u n t a r y l i q u i d a t i o n s , s t a t u t o r y consolidations and
m e r g e r s , and c o n v e r s i o n s to and m e r g e r s o r consolidations with
State banks u n d e r the p r o v i s i o n s of the act of August 17, 1950
(12 U.S.C. 214).
M o r e d e t a i l e d i n f o r m a t i o n r e g a r d i n g the changes in the n u m b e r
and c a p i t a l s t o c k of n a t i o n a l banks in the f i s c a l y e a r 1954 is given
in the following t a b l e .
Organizations, capital stock changes, and liquidations of national banks, fiscal year 1954
Capital stock
Number
of
banks
Charters in force June 30, 1953, and authorized capital stock^
Increases:
Charters issued
Capital stock:
Common
4,884
20
$2,264,317,563
4,903,000
20
Total decreases
:
$5,668,200
33,109,154
66,344,731
327,500
10,229,950
1,318,815
12,000
283 cases by statutory stock dividend
. 9 cases by stock dividend under articles of association.
16 cases by statutory consolidation
6 cases by statutory merger
1 case by conversion of preferred stock
Decreases:
Voluntary liquidations
statutory consolidations
Statutory mergers
Conversion into State bank
Merged or consolidated with State banks
Capital stock:
1 case by statutory reduction
3 cases by statutory consolidation
3 cases by statutory merger
23 cases by retirement
Preferred
116,245,150
34
10
7
1
10
5,420,000
35,000
7,689,100
8,750
385,000
255,000
100 000
776,380
Charters in force June 30, 1954, and authorized capital stock^.
62
13,792,850
876 380
-42
102,452,300
-876 380
4,842
2,366,769,863
4,791,820
^ These figures differ from those in the preceding table. June -30, 1953, figures include'1 newly chartered
bank not yet open for business; 1 bank in process of merging or consolidating with a State bank under provisions of the act of Aug. 17, 1950 (12 U.S.C. 214); 2 banks in process of going into voluntary liquidation,
and exclude 1 bank consolidated with another national bank at close of business June 30, 1953, under provisions of the act of Nov. 7, 1918, as amended (12 U.S.C. 33, 34). June 30, 1954, figures include 1 newly
chartered bank not yet open for business; 1 bank in the process of going into voluntary liquidation, and
exclude 2 banks consolidated with other national banks at close of business June 30, 1954, under provisions
of the act of Nov. 7, 1918, as amended.
72
1954 REPORT OF THE SECRETARY OF THE TREASURY
BUREAU OF CUSTOMS
T h e p r i n c i p a l functions of the B u r e a u of C u s t o m s a r e thc a s s e s s m e n t and c o l l e c t i o n of d u t i e s and t a x e s on I m p o r t e d m e r c h a n d i s e
and baggage; p r e v e n t i o n of s m u g g l i n g , u n d e r v a l u a t i o n s , and frauds
on the c u s t o m s r e v e n u e ; a p p r e h e n s i o n of v i o l a t o r s of the c u s t o m s
and navigation l a w s ; e n t e r i n g and c l e a r i n g of v e s s e l s and a i r c r a f t ;
I s s u i n g of d o c u m e n t s and s i g n a l l e t t e r s to v e s s e l s of the United
S t a t e s ; a d m e a s u r e m e n t of v e s s e l s ; c o l l e c t i o n of tonnage t a x e s on
v e s s e l s engaged in foreign c o m m e r c e ; s u p e r v i s i o n of the d i s c h a r g e
of i m p o r t e d c a r g o e s ; i n s p e c t i o n of i n t e r n a t i o n a l traffic; c o n t r o l of
the c u s t o m s w a r e h o u s i n g of i m p o r t s ; d e t e r m i n i n g and certifying
for p a y m e n t the a m p u n t of d r a w b a c k due upon the e x p o r t a t i o n of
articles produced from duty-paid or tax-paid i m p o r t s ; enforcement
of the antidumping and e x p o r t c o n t r o l a c t s ; r e g u l a t i o n of the m o v e m e n t of m e r c h a n d i s e into and out of foreign t r a d e z o n e s ; and e n f o r c e m e n t of the laws and r e g u l a t i o n s of o t h e r G o v e r n m e n t a g e n c i e s
affecting i m p o r t s and e x p o r t s .
C o l l e c t i o n s by C u s t o m s S e r y i c e
T o t a l r e v e n u e c o l l e c t e d by C u s t o m s in the f i s c a l y e a r 1954 was
o v e r $801 m i l l i o n as c o m p a r e d with $829 m i l l i o n in 1953, a d e c r e a s e of 3.4 p e r c e n t . The t o t a l i n c l u d e s not only c u s t o m s c o l l e c tions but a l s o c e r t a i n i n t e r n a l r e v e n u e t a x e s for the I n t e r n a l R e v enue S e r v i c e and s o m e c o l l e c t i o n s for the P u b l i c Health S e r v i c e
and o t h e r g o v e r n m e n t a l a g e n c i e s .
C u s t o m s c o l l e c t i o n s alone amounted to $567 m i l l i o n , a d e c r e a s e
of o v e r 8.6 p e r c e n t f r o m the p r e v i o u s y e a r ' s t o t a l of $620 m i l l i o n .
They c o n s i s t e d of c o l l e c t i o n s of d u t i e s , tonnage t a x e s , and fines
and p e n a l t i e s for the violation of c u s t o m s , navigation l a w s , e t c . The
d e c r e a s e in c u s t o m s c o l l e c t i o n s in 1954 was p a r t i a l l y offset by an
i n c r e a s e in c o l l e c t i o n s by C u s t o m s of i n t e r n a l r e v e n u e t a x e s on i m p o r t e d l i q u o r s , w i n e s , p e r f u m e s , e t c . , which amounted to $235
m i l l i o n in 1954, or 12 p e r c e n t m o r e than the $210 m i l l i o n c o l l e c t e d in 1953.
Of the c u s t o m s c o l l e c t i o n s , all but $ 4 ^ m i l l i o n w e r e d e r i v e d
f r o m duties (including I m p o r t t a x e s ) l e v i e d on i m p o r t e d m e r c h a n d i s e . The s o u r c e of duty c o l l e c t i o n s by type of e n t r y i s shown in
t a b l e 11 and by tariff schedule in table 92. Since the d a t a in thc
l a t t e r a r e r e s t r i c t e d to c o m m e r c i a l i m p o r t a t i o n s , the t o t a l s shown
a r e s o m e w h a t s m a l l e r t h a n the duties c o l l e c t e d on all t y p e s of
dutiable m e r c h a n d i s e and c o r r e s p o n d roughly to d u t i e s c o l l e c t e d
on consuniption e n t r i e s and on w a r e h o u s e w i t h d r a w a l s .
In 1954, m o r e t h a n one-half of all i m p o r t s into the United States
w e r e duty free and included s o m e c o m m o d i t i e s i m p o r t e d f r e e for
G o v e r n m e n t s t o c k p i l e p u r p o s e s o r a u t h o r i z e d by s p e c i a l a c t s of
C o n g r e s s for f r e e e n t r y although dutiable u n d e r the Tariff Act of
1930, o r t a x a b l e under the I n t e r n a l R e v e n u e Code, such as c o p p e r
and i r o n and s t e e l s c r a p . The 44^ p e r c e n t which was dutiable c o n s t i t u t e d the b a s i s of c u s t o m s duties on i m p o r t s .
In only two m o n t h s of the f i s c a l y e a r 1954, J u l y and N o v e m b e r ,
w e r e c u s t o m s duties at a h i g h e r l e v e l than for the c o r r e s p o n d i n g
m o n t h s of 1953. The d e c l i n e In duty c o l l e c t i o n s was g r e a t e r p r o -
ADMINISTRATIVE REPORTS
73
p o r t i o n a t e l y t h a n t h e d e c l i n e i n t h e v a l u e of d u t i a b l e i m p o r t s w h i c h
a m o u n t e d to $ 4 . 6 billion in 1954, as c o m p a r e d with $ 4 . 8 billion in
the previous fiscal year.
C o l l e c t i o n s by c u s t o m s d i s t r i c t s . - - O f t h e 44 c u s t o m s d i s t r i c t s
in which collections a r e c o v e r e d into the T r e a s u r y o f t h e United
S t a t e s , o n l y 18 r e p o r t e d l a r g e r c o l l e c t i o n s of c u s t o m s t h a n i n 1 9 5 3 .
T h e c o l l e c t i o n s for e a c h c u s t o m s d i s t r i c t a r e found in t a b l e 9 1 .
C o l l e c t i o n s b y c o m m o d i t i e s . - - O n l y s i x of t h e f i f t e e n s c h e d u l e s
in which dutiable c o m m o d i t i e s a r e l i s t e d in the Tariff Act showed
i n c r e a s e s i n d u t y c o l l e c t i o n s a n d w i t h t h e e x c e p t i o n of w o o d p r o d u c t s , alcoholic liquors, and cotton goods, these i n c r e a s e s w e r e v e r y
s m a l l . M o r e o v e r , t h e d u t y y i e l d o n t h e g r o u p of f r e e - l i s t c o m modities taxable under the Internal Revenue Code, which cons i s t e d m o s t l y of p e t r o l e u m p r o d u c t s i n 1 9 5 4 , d e c l i n e d s h a r p l y
b y r e f l e c t i n g t h e f i r s t f u l l y e a r ' s a p p l i c a t i o n of r e d u c e d r a t e s o n
p e t r o l e u m and its p r o d u c t s under the Venezuelan T r a d e A g r e e m e n t which b e c a m e effective in October 1952.
A s i n t h e p r e v i o u s t w o y e a r s , i m p o r t s of m e t a l s a n d m e t a l p r o d u c t s w e r e t h e l a r g e s t s i n g l e s o u r c e of c u s t o m s r e v e n u e , a m o u n t i n g
t o 2 3 p e r c e n t of t h e t o t a l d u t y c o l l e c t i o n s i n 1 9 5 4 a n d 22 p e r c e n t i n
t h e p r e c e d i n g y e a r . Of t h e c o m m o d i t i e s i n t h i s s c h e d u l e , f e r r i c
alloys such as tungsten, m a n g a n e s e , etc., electrical machinery,
lead, and zinc yielded i n c r e a s e d r e v e n u e , while the revenue from
m e t a l tubing, watch m o v e m e n t s and p a r t s , a u t o m o b i l e s , and m a c h i n e r y (other than electrical) was l e s s than in 1953. The a g r i c u l t u r a l schedule r a n k e d second, the s u n d r i e s schedule third, and the
w o o l s c h e d u l e f o u r t h a s a s o u r c e of r e v e n u e i n 1 9 5 4 , t h e l a s t
d r o p p i n g f r o m s e c o n d p l a c e I n t h e p r e v i o u s y e a r . M o s t of t h e
d e c l i n e in collections u n d e r the wool s c h e d u l e was due to a s h a r p
r e d u c t i o n i n i m p o r t s of u n m a n u f a c t u r e d w o o l o n w h i c h t h e r e v e n u e
d e c l i n e d f r o m $ 5 6 m i l l i o n i n 1 9 5 3 t o $ 29 m i l l i o n d u r i n g t h e p a s t
y e a r . U n d e r t h e s u n d r i e s s c h e d u l e , t h e c h i e f s o u r c e s of r e v e n u e
w e r e l a c e s and e m b r o i d e r i e s , p r e c i o u s s t o n e s , j e w e l r y , and t o y s .
T a b l e 92 g i v e s t h e v a l u e of a n d d u t i e s c o l l e c t e d on d u t i a b l e a n d
t a x a b l e i m p o r t s for c o n s u m p t i o n in the f i s c a l y e a r s 1953 a n d 1954.
T a b l e s 94 a n d 95 s h o w t h e v a l u e of a n d t h e d u t i e s c o l l e c t e d on i m p o r t s for c o n s u m p t i o n in t h e c a l e n d a r y e a r s 1943 t o 1953 and
m o n t h l y f r o m J a n u a r y 1953 to J u n e 1954. T h e t r e n d s in v a l u e and
duty yield for goods dutiable at specific r a t e s , at ad v a l o r e m r a t e s ,
a n d a t c o m p o u n d r a t e s a r e s h o w n In t a b l e 9 3 .
C o l l e c t i o n s b y c o u n t r i e s of o r i g i n . - - T h e d i m i n i s h e d v a l u e of
I m p o r t s a n d t h e l o w e r y i e l d In d u t i e s , n o t e d In t h e c o m m o d i t y
g r o u p s , w a s n o t e d a l s o f o r m o s t of t h e l e a d i n g c o u n t r i e s s e n d i n g
I m p o r t s to the United S t a t e s . F o r the t h i r d s u c c e s s i v e y e a r , the
U n i t e d K i n g d o m o u t r a n k e d C a n a d a a s t h e l a r g e s t s o u r c e of c u s t o m s
r e v e n u e , a l t h o u g h c o l l e c t i o n s on I m p o r t s f r o m e a c h w e r e s l i g h t l y
s m a l l e r t h a n in 1953.
T h e g r e a t l y d i m i n i s h e d I m p o r t s of w o o l w e r e r e f l e c t e d I n s h a r p
d e c l i n e s In the r e v e n u e d e r i v e d f r o m I m p o r t s f r o m A r g e n t i n a ,
U r u g u a y , A u s t r a l i a , and New Z e a l a n d .
T a b l e 96 s h o w s t h e v a l u e of i m p o r t s f o r c o n s u m p t i o n a n d t h e
d u t i e s c o l l e c t e d t h e r e o n by the p r i n c i p a l c o u n t r i e s for t h e f i s c a l
y e a r s 1953 and 1954.
74
1954 REPORT OF THE SECRETARY OF THE TREASURY
Extent of o p e r a t i o n s
M o v e m e n t of p e r s o n s . - - F o r the f i r s t t i m e In t h i r t e e n y e a r s ,
fewer p e r s o n s e n t e r e d the United S t a t e s d u r i n g 1954 than In t h c
p r e v i o u s y e a r , r e v e r s i n g the u p w a r d t r e n d which began In 1942
and continued at an a c c e l e r a t e d r a t e In the y e a r s following World
War II. F o r the fourth s u c c e s s i v e y e a r In a i r p l a n e h i s t o r y , the
n u m b e r of p a s s e n g e r s a r r i v i n g f r o m a b r o a d e x c e e d e d the m i l l i o n
m a r k and for the fifth s u c c e s s i v e y e a r , the n u m b e r of p a s s e n g e r s
a r r i v i n g at the New York City I n t e r n a t i o n a l a i r p o r t s e x c e e d e d t h o s e
a r r i v i n g at the M i a m i a i r p o r t s .
T a b l e 98 shows the v a r i o u s t y p e s of v e h i c l e s and p e r s o n s e n t e r ing the United States d u r i n g the p a s t two fiscal y e a r s , and table
99 shows the n u m b e r of a i r p l a n e s and p a s s e n g e r s a r r i v i n g In e a c h
of the c u s t o m s d i s t r i c t s for which t h i s type of t r a v e l was I m portant.
E n t r i e s of m e r c h a n d i s e . - - D e s p i t e a d e c l i n e In the value of
dutiable I m p o r t s and In the amount of duties c o l l e c t e d , the n u m b e r
of m e r c h a n d i s e e n t r i e s was slightly g r e a t e r In 1954 t h a n In the
p r e v i o u s y e a r . This was due e n t i r e l y to an I n c r e a s e In the n u m b e r
of baggage e n t r i e s and of " a l l o t h e r e n t r i e s , " s i n c e the n u m b e r of
c o n s u m p t i o n and w a r e h o u s e e n t r i e s and w a r e h o u s e w i t h d r a w a l s ,
which c o n s t i t u t e the chief s o u r c e of c o m m e r c i a l I m p o r t a t i o n s ,
d e c l i n e d . The n u m b e r of e a c h type of e n t r y for the p a s t two f i s c a l
y e a r s Is shown In table 97.
D r a w b a c k t r a n s a c t i o n s . - - D r a w b a c k which Is allowed on the e x p o r t a t i o n of m e r c h a n d i s e m a n u f a c t u r e d f r o m I m p o r t e d m a t e r i a l s and
for c e r t a i n o t h e r e x p o r t t r a n s a c t i o n s u s u a l l y a m o u n t s t o 9 9 p e r c e n t
of the c u s t o m s duties paid at the t i m e the goods a r e e n t e r e d . M o r e
than 95 p e r c e n t of the d r a w b a c k allowed In 1954 was due to the
e x p o r t of p r o d u c t s m a n u f a c t u r e d f r o m I m p o r t e d r a w m a t e r i a l s . The
p r i n c i p a l I m p o r t e d m a t e r i a l s u s e d In the m a n u f a c t u r e d e x p o r t s In
1954 w e r e watch m o v e m e n t s , lead o r e , t o b a c c o , s u g a r , p e t r o l e u m ,
a l u m i n u m , and z i n c .
T a b l e s 100 and 101 show the d r a w b a c k t r a n s a c t i o n s for the fiscal
y e a r s 1953 and 1954. The a m o u n t of d r a w b a c k allowed, a s shown
In t a b l e 100, does not c o r r e s p o n d exactly with the d r a w b a c k p a y m e n t s shown In table 101 s i n c e not all d r a w b a c k s c e r t i f i e d for p a y m e n t a r e paid d u r i n g the s a m e fiscaT y e a r .
A p p r a i s e m e n t of m e r c h a n d i s e . - - T h e d e c l i n e In I m p o r t s of f o r eign m e r c h a n d i s e was r e f l e c t e d In the n u m b e r of Invoices and In
the p a c k a g e s e x a m i n e d at a p p r a i s e r s ' s t o r e s . T h e r e w e r e 1,472
t h o u s a n d Invoices handled In 1954 as c o m p a r e d with 1,507 t h o u s a n d
In t h e p r e v i o u s y e a r . An even s h a r p e r decline was noted In the
n u m b e r of p a c k a g e s e x a m i n e d , from 704 t h o u s a n d In 1953 to 645
t h o u s a n d In 1954. This g r e a t e r p r o p o r t i o n a t e d e c r e a s e In the n u m b e r of p a c k a g e s e x a m i n e d was p r o b a b l y due to the s t r e a m l i n i n g of
the p r o c e d u r e for o r d e r i n g e x a m i n a t i o n s . The n u m b e r of Invoices
r e c e i v e d s e r v e s as a g e n e r a l I n d i c a t o r of e x a m i n e r s ' t e c h n i c a l
w o r k l o a d s for, d e s p i t e the d e c l i n e of 2 p e r c e n t f r o m the peak y e a r
In 1953, the load continued p r a c t i c a l l y as heavy as the a v e r a g e In
the l a s t four y e a r s . P r o b l e m s In d e t e r m i n i n g both a d v i s o r y c l a s s i fication and a p p r a i s e d v a l u e continued high as shown by r e q u e s t s
by a p p r a i s i n g officers for 968 f o r e i g n I n q u i r i e s which r e q u i r e an
I n v e s t i g a t i o n In the c o u n t r y of p r o d u c t i o n In o r d e r to obtain the
ADMINISTRATIVE REPORTS
75
t e c h n i c a l I n f o r m a t i o n n e e d e d . T h i s n u m b e r Is s o m e w h a t l e s s t h a n In
the two p r e c e d i n g y e a r s , but a l m o s t t w i c e that of 1951 and p r i o r
years.
Customs Information Exchange.--The activities ofthe Customs
I n f o r m a t i o n E x c h a n g e , a s shown by t h c n u m b e r of r e p o r t s r e c e i v e d
and d i s s e m i n a t e d to a p p r a i s i n g officers d u r i n g the f l s c a l y e a r , w e r e
s l i g h t l y l e s s t h a n In 1953, but w e r e equal to o r g r e a t e r than In
p r e v i o u s y e a r s . A p p r a i s e r s * r e p o r t s of value and c l a s s i f i c a t i o n ,
c o v e r i n g a c r o s s s e c t i o n of i m p o r t a t i o n s of m e r c h a n d i s e r e c e i v e d
at e a c h p o r t , t o t a l e d 55 t h o u s a n d In 1954 c o m p a r e d with 60 t h o u s a n d
In 1953.
Thc n u m b e r of s u c h r e p o r t s , h o w e v e r , was r e d u c e d as a r e s u l t
of the I n t r o d u c t i o n of a w a i v e r p r o c e d u r e put In o p e r a t i o n at the
beginning of t h e f i s c a l y e a r 1954. This p r o c e d u r e p r o v i d e d t h a t .
If no I m p o r t a t i o n of s u c h m e r c h a n d i s e was r e p o r t e d at any o t h e r
p o r t , a w a i v e r be g r a n t e d m a k i n g It u n n e c e s s a r y to send In f u r t h e r
r e p o r t s of t h i s type of m e r c h a n d i s e . O v e r l O t h o u s a n d w a i v e r s w e r e
g r a n t e d d u r i n g 1954. T h e s e r e p o r t s of v a l u e o r c l a s s i f i c a t i o n I n d i c a t e the r e l a t i v e n u m b e r of c o m m o d i t y I t e m s r e c e i v e d at any given
p o r t for the f i r s t t i m e , as well as r e g u l a r I t e m s r e c e i v e d at new
p r i c e s o r s u b j e c t to different t e r m s of s a l e t h a n p r e v i o u s s h i p m e n t s .
D i f f e r e n c e s In v a l u e and c l a s s i f i c a t i o n Indicate the n u m b e r o f I n s t a n c e s w h e r e e n t r i e s v a r i e d at different p o r t s e i t h e r In v a l u e o r
c l a s s i f i c a t i o n and In which additional study and a n a l y s i s w e r e r e q u i r e d b e f o r e e s t a b l i s h m e n t of a uniform p r i c e o r r a t e . P r i c e
c h a n g e s and changes In m a r k e t i n g m e t h o d s continued high, as I n d i c a t e d by t h e 5,232 r e p o r t s of value d i f f e r e n c e s In 1954, as c o m p a r e d with 6,135 In the p r e v i o u s y e a r .
The n u m b e r of c l a s s i f i c a t i o n d i f f e r e n c e s , which Indicates the
r e l a t i v e n u m b e r of new c o m m o d i t i e s r e c e i v e d , t o t a l e d 5,025 In
1953, and 3,704 d u r i n g the p a s t y e a r .
Antidumping, c o u n t e r v a i l i n g duty, and convict l a b o r e n f o r c e m e n t . - - C o m p l a i n t s of dumping u n d e r the Antidumping Act d u r i n g
the f i s c a l y e a r 1954 w e r e 56 p e r c e n t g r e a t e r than In 1953, and
c o m p l a i n t s u n d e r the c o u n t e r v a i l i n g duty s t a t u t e I n c r e a s e d 133
p e r c e n t o v e r t h o s e In 1953. During the y e a r a d j u s t m e n t s w e r e m a d e
In r a t e s of c o u n t e r v a i l i n g duties a s s e s s a b l e on B r i t i s h s i l k and
silk a r t i c l e s and Uruguayan wool t o p s to r e f l e c t c h a n g e s which have
o c c u r r e d s i n c e I s s u a n c e of the o r i g i n a l o r d e r . One finding of the
u s e of convict l a b o r and no findings of dumping w e r e m a d e . Steps
h a v e b e e n t a k e n t o s p e e d up action on t h e s e c a s e s and r e d u c e the
backlog.
T e c h n i c a l s e r v i c e s . - - T h i s b r a n c h of the C u s t o m s S e r v i c e f u r n i s h e s c h e m i c a l , e n g i n e e r i n g , and o t h e r s c i e n t i f i c and t e c h n i c a l
I n f o r m a t i o n ; p r o v i d e s p r o p e r weighing and gauging equipment;
d e s i g n s and o v e r s e e s the c o n s t r u c t i o n of b o r d e r Inspection s t a t i o n s ;
and d i r e c t s the fleld o p e r a t i o n s of c u s t o m s l a b o r a t o r i e s .
The l a b o r a t o r i e s a n a l y z e d 100 t h o u s a n d s a m p l e s d u r i n g e a c h
of the p a s t two f i s c a l y e a r s , m o r e t h a n half of which c o n s i s t e d of
o r e s and m e t a l s , s u g a r , and wool. The m a j o r i t y o f t h e s a m p l e s
w e r e '*lmport*' s a m p l e s of dutiable m e r c h a n d i s e a n a l y z e d to
d e v e l o p and r e p o r t facts needed for tariff p u r p o s e s .
In addition, the l a b o r a t o r i e s a n a l y z e d 3,662 s a m p l e s t a k e n from
c u s t o m s s e i z u r e s , m o s t l y n a r c o t i c d r u g s and o t h e r p r o h i b i t e d
76
1954 REPORT OF THE SECRETARY OF THE TREASURY
a r t i c l e s ; 205 f r o m m e r c h a n d i s e to be e x p o r t e d f r o m t h e United
States upon which c l a i m s for d r a w b a c k a r e to be c o m p a r e d o r
verified;
864 f r o m p r e s h l p m e n t s
( n e w t y p e s of m e r c h a n d i s e )
analyzed to develop facts on which to b a s e the tariff classification
of s u c h n e w g o o d s I n t e n d e d f o r s h i p m e n t t o t h e U n i t e d S t a t e s ; a n d
3 , 2 8 7 f o r o t h e r G o v e r n m e n t a g e n c i e s , of w h i c h 2 , 6 0 1 w e r e s a m p l e s
of c r i t i c a l a n d s t r a t e g i c m a t e r i a l s r e p r e s e n t i n g G o v e r n m e n t p u r c h a s e s for stockpile purposes to d e t e r m i n e whether or not the
materials m e t contract specifications.
Statistical quality control on s a m p l e weighing operations by
m a k i n g a n a l y s e s of t h e c a r g o s a m p l e w e i g h i n g d a t a t o a s s u r e t h a t
a c c u r a c y and p r e c i s i o n w e r e within the control l i m i t s w a s continued i n 1954. T h e r e w e r e 891 such weighing operatioris. Including
6 0 7 c a r g o e s of r a w s u g a r , 87 of r e f i n e d s u g a r , 2 of w o o l , 21 of
r a y o n , 1 6 6 of c i g a r e t t e t o b a c c o , a n d 8 of o t h e r m e r c h a n d i s e .
E x p o r t c o n t r o l . - - A s a r e s u l t of c o m b i n i n g e x p o r t c o n t r o l f u n c t i o n s
w i t h o t h e r c u s t o m s o p e r a t i o n s o n J u l y 1, 1 9 5 3 , t h e c o n t r o l w a s
m o r e effective and t h e r e was a c o n s i d e r a b l e saving In m a n p o w e r .
T h e n u m b e r of s e i z u r e s f o r e x p o r t c o n t r o l v i o l a t i o n s I n c r e a s e d
f r o m 2 2 3 I n thie f i s c a l y e a r 1 9 5 3 , t o 4 8 4 d u r i n g t h e f i s c a l y e a r
1 9 5 4 , a r i s e of 117 p e r c e n t .
T h e U n i t e d S t a t e s I s o n e of 14 w e s t e r n n a t i o n s p a r t i c i p a t i n g I n
an International export control p r o g r a m . During the fiscal y e a r
1 9 5 4 , a s t h e r e s u l t of v i s i t s t o F r a n c e a n d I t a l y b y U n i t e d S t a t e s
Technical Export Control Missions and visits to the United States
of E x p o r t C o n t r o l M i s s i o n s f r o m F r a n c e , G e r m a n y , B e l g i u m , a n d
Italy, c o n s i d e r a b l e p r o g r e s s w a s m a d e In developing a u n i f o r m
c u s t o m s p r o c e d u r e t o a s s i s t p a r t i c i p a t i n g c o u n t r i e s In p r e v e n t i n g
t h e d i v e r s i o n of s t r a t e g i c m a t e r i a l s .
T h e f o l l o w i n g t a b l e s h o w s t h e v o l u m e of e x p o r t c o n t r o l a c t i v i t i e s
d u r i n g t h e fiscal y e a r s 1953 and 1954.
Percentage
increase, or
decrease ( )
Export declarations authenticated,
Shipments examined
,
Number of seizures
,
Value of seizures
,
Export control employees
,
4,235,167
664,113
223
$385,269
324
3,933,597
761,359
484
$359,469
234
-7.1
14.6
117.0
-6.7
-27.8
P r o t e s t s and a p p e a l s . - - F e w e r p r o t e s t s w e r e flled In 1954 by
I m p o r t e r s a g a i n s t the r a t e and a m o u n t of duty a s s e s s e d and o t h e r
a c t i o n s by t h e c o l l e c t o r s t h a n d u r i n g t h e p r e c e d i n g y e a r . A p p e a l s
for r e a p p r a i s e m e n t flled by I m p o r t e r s who did not a g r e e with t h e
a p p r a i s e r s a s to t h e v a l u e of t h e m e r c h a n d i s e c o n t i n u e d t h e d e c l i n e
b e g u n In 1953.
T h e following t a b l e s h o w s t h e n u m b e r of p r o t e s t s and a p p e a l s
flled and a c t e d upon In t h e f i s c a l y e a r s 1953 and 1954.
77
ADMINISTRATIVE REPORTS
Protests and appeals
Protests:
Filed with collectors by importers
Allowed by collectors
Denied by collectors and forwarded to customs court....
1953
32,549
1,96020,387
9,244
1954
28,039
2,216
21,248
7,848
Percentage
increase, or
decrease (-)
-13.9
13.1
4.2
-15.1
M a r i n e a c t i v i t i e s . - - T h e s e c u r i t y c l a s s i f y i n g of e n t r y and c l e a r a n c e r e c o r d s of M i l i t a r y Sea T r a n s p o r t a t i o n S e r v i c e v e s s e l s was
d i s c o n t i n u e d . C l a s s i f i e d r e c o r d s w e r e d e c l a s s i f i e d p u r s u a n t to
E x e c u t i v e O r d e r No. 10501 of N o v e m b e r 5, 1953 (18 F . R . 7049).
S e p a r a t e r e c o r d i n g and n u m b e r i n g of m a n i f e s t s for s u c h v e s s e l s
a l s o was d i s c o n t i n u e d .
The following t a b l e shows the n u m b e r of e n t r a n c e s and c l e a r a n c e s
of v e s s e l s In 1953 and 1954.
Vessel movements
1953
1954
Percentage
increase, or
decrease (-)
Entrances:
49,464
25,680
Total
Clearances:
Direct to foreign ports
Via other domestic ports
Total
48,499
32,576
-2.0
26.9
75,144
81,075
7.9
45,039
23,475
43,981
27,076
-2.3
15.3
68,514
71,057
3.7
T h e B u r e a u p a r t i c i p a t e d In the drafting of enabling l e g i s l a t i o n
to give effect to the I n t e r n a t i o n a i Convention for the High S e a s
F i s h e r i e s of the N o r t h P a c i f i c O c e a n , s i g n e d at Tokyo on May 9,
1952. T h e l e g i s l a t i o n was e n a c t e d on August 12, 1954, as P u b l i c
Law No. 579, 83d C o n g r e s s . The B u r e a u Is one of the e n f o r c e m e n t
a g e n c i e s u n d e r the a c t , which p r o v i d e s p e n a l t i e s a g a i n s t United
S t a t e s , C a n a d i a n , and J a p a n e s e fishing v e s s e l s and f i s h e r m e n
found engaged In fishing In w a t e r s of the high s e a s f r o m which the
r e s p e c t i v e g o v e r n m e n t s Involved have a g r e e d to a b s t a i n .
The B u r e a u c o o p e r a t e d with the D e p a r t m e n t of J u s t i c e In the
s e t t l e m e n t of litigation fpr f o r f e i t u r e u n d e r s t a t u t e s a d m i n i s t e r e d
by the B u r e a u of s e v e r a l t a n k e r s a l l e g e d to be c o n t r o l l e d by a l i e n s
r a t h e r t h a n c i t i z e n s . The v e s s e l s w e r e s e i z e d at the r e q u e s t of
the D e p a r t m e n t of J u s t i c e p r i o r to the flling of libels for f o r f e i t u r e
In the D i s t r i c t C o u r t s of the U n i t e d S t a t e s . Under the s e t t l e m e n t ,
s o m e 19 v e s s e l s , all l a r g e t a n k e r s o r d r y c a r g o v e s s e l s , five of
which w e r e u n d e r P a n a m a n i a n r e g i s t r y and o u t s i d e t h e United
339256 O - 55 - 7
78
1954 REPORT OF THE SECRETARY OF THE TREASURY
S t a t e s , w e r e d e c l a r e d to be forfeited to the G o v e r n m e n t . A s u b s t a n t i a l s u m of m o n e y a l s o w a s p a i d t o t h e U n i t e d S t a t e s .
A t t h e e n d of t h e f i s c a l y e a r , n e g o t i a t i o n s w e r e p r o c e e d i n g
t h r o u g h t h e D e p a r t m e n t of J u s t i c e t o e f f e c t s i m i l a r s e t t l e m e n t s
of m a t t e r s b e i n g l i t i g a t e d .
The Maritime Administration, which had been allocating vessels
to p r i v a t e c o n c e r n s for o p e r a t i o n In t h e K o r e a n w a r effort u n d e r
b a r e b o a t c h a r t e r a r r a n g e m e n t s , changed m a n y such allocations to
general agency agreements. Under such agreements vessels were
f o u n d t o b e m o r e o f t e n e x e m p t e d f r o m p a y m e n t of t o n n a g e t a x ,
a n d t h e p e r c e n t a g e of r e f u n d s a u t h o r i z e d I n c r e a s e d .
T h e d e c r e a s e In a c t i v i t i e s In K o r e a I n c i d e n t t o t h e c e a s e - f i r e
a g r e e m e n t r e s u l t e d In a s u b s t a n t i a l d e c r e a s e In e n t r i e s and p a y m e n t s of t o n n a g e t a x . H e n c e , t h e o v e r a l l n u m b e r of a p p l i c a t i o n s
for refunds d e c r e a s e d .
A w a i v e r w a s g r a n t e d u n d e r t h e a c t of D e c e m b e r 2 7 , 1 9 5 0 ( 6 4
S t a t . 1 1 2 0 ) , t o p e r m i t t h e c l e a r a n c e of c e r t a i n v e s s e l s u n d e r t h e
c o n t r o l of t h e M i l i t a r y S e a T r a n s p o r t a t i o n S e r v i c e f o r u n n a m e d
d e s t i n a t i o n s a n d c l e a r a n c e of a n y v e s s e l w i t h D e p a r t m e n t of D e f e n s e
c a r g o o n t h e b a s i s «of a m a n i f e s t w h i c h d e s c r i b e s s u c h c a r g o o n l y
I n t e r m s of a p p r o x i m a t e q u a n t i t y . T h e w a i v e r h a s f a c i l i t a t e d t h e
m o v e m e n t of d e f e n s e m a t e r i a l s a n d v e s s e l s , w i t h l e s s p a p e r w o r k
and Increased security.
W a i v e r s w e r e a l s a g r a n t e d t o a u t h o r i z e t h e I s s u a n c e of a p r o visional certificate
of r e g i s t r y t o a v e s s e l p u r c h a s e d a b r o a d
w i t h o u t t h e u s u a l 6 - m o n t h s ' e x p i r a t i o n p r o v i s i o n If t h e v e s s e l
was to be maintained abroad; to p e r m i t the t r a n s p o r t a t i o n o f
c e r t a i n p e r s o n n e l of t h e D e p a r t m e n t of t h e N a v y a n d t h e D e p a r t m e n t
of C o m m e r c e a n d of m e r c h a n d i s e b e t w e e n t h e S w a n I s l a n d s a n d
p o r t s I n t h e F l o r i d a d i s t r i c t ; a n d t o p e r m i t t h e d o c u m e n t a t i o n of
f o u r v e s s e l s w i t h o u t c o m p l i a n c e w i t h t h e r e q u i r e m e n t s of S e c t i o n
4 9 6 , T i t l e 4 6 , U n i t e d S t a t e s C o d e , f o r t h e I s s u a n c e of c e r t i f i c a t e s
of I n s p e c t i o n b y t h e U n i t e d S t a t e s C o a s t G u a r d .
A s I n p r e v i o u s y e a r s , s p e c i a l l e g i s l a t i o n a u t h o r i z e d t h e u s e of
C a n a d i a n v e s s e l s f o r a l i m i t e d p e r i o d I n c e r t a i n p o r t i o n s of t h e
c o a s t w i s e t r a d e In A l a s k a . S i m i l a r s p e c i a l l e g i s l a t i o n a u t h o r i z i n g
t h e u s e of C a n a d i a n v e s s e l s I n t r a n s p o r t i n g I r o n o r e b e t w e e n U n i t e d
S t a t e s p o r t s on the G r e a t L a k e s , which h a s b e e n e n a c t e d annually
for s o m e y e a r s , was not e n a c t e d for this fiscal y e a r .
T h e B u r e a u h a s c o n t i n u e d t h e w o r k of t r a n s l a t i n g t h e a d m e a s u r e m e n t r e g u l a t i o n s of t h e p r i n c i p a l m a r i t i m e n a t i o n s w i t h t h e o b j e c t
of d e t e r m i n i n g w h i c h h a v e a d o p t e d a m o d e of a d m e a s u r e m e n t
s i m i l a r t o t h a t of t h e U n i t e d S t a t e s . T h e t r a n s l a t i o n , w h i c h It I s
a n t i c i p a t e d w i l l b e c o m p l e t e d b e f o r e t h e e n d of t h e f i s c a l y e a r
1 9 5 5 , w i l l p e r m i t t h e B u r e a u t o c o m m e n c e t h e f o r m i d a b l e t a s k of
c o m p a r i s o n with the United States r u l e s to d e t e r m i n e the m a j o r
p o i n t s of d i f f e r e n c e . T h e r e s u l t w i l l h a v e a n I m p o r t a n t b e a r i n g
on the r e c o g n i t i o n a c c o r d e d foreign a d m e a s u r e m e n t s y s t e m s by
the United S t a t e s and will a l s o p r o v i d e a n e c e s s a r y b a s i s for
a p p r o a c h i n g t h e p r o b l e m of I n t e r n a t i o n a l u n i f o r m i t y .
D e v e l o p m e n t s I n t h e d l r e c t l o n o f u n i f o r m i t y of t o n n a g e c a l c u l a t i o n s
on an I n t e r n a t i o n a l l e v e l a r e b e i n g studied with a view to d e t e r m i n i n g t h e i r effect upon the United States s y s t e m . Although the
79
ADMINISTRATIVE REPORTS
D e p a r t m e n t dud not s e n d an o b s e r v e r to the I n t e r n a t i o n a l c o n v e n tion of tonnage e x p e r t s In P a r i s this y e a r , the m e e t i n g was r e p o r t e d t h r o u g h a r e p r e s e n t a t i v e of the E m b a s s y In London.
Many d e c i s i o n s d u r i n g the y e a r r e f l e c t e d the c u r r e n t t r e n d
t o w a r d s p e c i a l i z a t i o n of v e s s e l d e s i g n and c o n s t r u c t i o n . L e g i s l a t i o n (S. 2814, 83d Cong., 2nd S e s s . ) was p r o p o s e d by the D e p a r t m e n t to I n s u r e a m o r e equitable deduction for p r o p e l l i n g - m a c h i n e r y
s p a c e s In the c a s e of a v e s s e l with an e n g i n e r o o m a g g r e g a t i n g 13
p e r c e n t o r l e s s of Its g r o s s t o n n a g e . Although the bill was not
e n a c t e d Into law, e n a c t m e n t of a s i m U a r b i l l will be sought In t h e
next C o n g r e s s In o r d e r to avoid p e n a l i z i n g the efficiency of m o d e r n ,
c o m p a c t l y d e s i g n e d e n g i n e r o o m s p a c e s . G r e a t B r i t a i n and s e v e r a l
f o r e i g n c o u n t r i e s h a v e t a k e n like a c t i o n and o t h e r s m a y be expected
to do s o .
An e x c h a n g e of c o r r e s p o n d e n c e with t h e Suez C a n a l Company
p r o v i d e d the B u r e a u ' s a d m e a s u r e m e n t staff with s e v e r a l changes
of I n t e r p r e t a t i o n of the Suez C a n a l A d m e a s u r e m e n t R u l e s . T h e s e
h a v e b e e n m a d e a v a i l a b l e to the shipping I n d u s t r y and should
r e s u l t In m o r e e c o n o m i c a l t r a n s i t i n g o p e r a t i o n s .
The m a r i n e d o c u m e n t of a United S t a t e s v e s s e l engaged In t r a d e
with foreign c o u n t r i e s Is valid until s u r r e n d e r e d . The l i c e n s e s
of v e s s e l s engaged In c o a s t w i s e t r a d e o r fishing m u s t be r e n e w e d
e a c h y e a r . The m o r t g a g i n g o r change of o w n e r s h i p of v e s s e l s
a l s o r e q u i r e s the c e r t i f i c a t i o n and I s s u a n c e of v a r i o u s d o c u m e n t s .
The following t a b l e shows the v o l u m e of m a r i n e d o c u m e n t a t i o n
a c t i v i t i e s d u r i n g the f i s c a l y e a r s 1953 and 1954.
Activity
1953
1954
Percentage
increase, or
decrease (-)
11,592
22,220
13,963
25,424
20.5
14.4
9,618
2,166
2,337
11,075
2,220
1,4S6
-36.4
Number of mortgages, bills of sale, and abstracts of
15.1
2.5
The s y s t e m for m a i n t a i n i n g thc r e c o r d s of v e s s e l s d o c u m e n t e d
as v e s s e l s of the United S t a t e s was changed d u r i n g the y e a r so
as to p e r m i t the p h o t o g r a p h i c r e p r o d u c t i o n of t h o s e r e c o r d s for
p r i n t i n g by the offset m e t h o d . A 1953-1954 i s s u e of the annual
publication **Merchant V e s s e l s of the U n i t e d S t a t e s " was r e p r o d u c e d
In this m a n n e r , r e s u l t i n g In a saving of a p p r o x i m a t e l y 90 p e r c e n t
of the f o r m e r c o s t of r e p r o d u c t i o n . A s i m i l a r change to offset
r e p r o d u c t i o n was effected for " M e r c h a n t M a r i n e S t a t i s t i c s , " a
c o m p a n i o n publication, r e s u l t i n g In a s a v i n g of about 75 p e r c e n t
of the f o r m e r c o s t of p r i n t i n g .
The following tabulation shows the s t a t u s of the m e r c h a n t
m a r i n e as of J a n u a r y 1, 1954, b r o k e n down Into v e s s e l s engaged
In the f o r e i g n t r a d e , v e s s e l s by m a j o r r i g s , and v e s s e l s by the
five m a j o r s e r v i c e s .
80
1954 REPORT OF THE SECRETARY OF THE TREASURY
Number
Total documented vessels (including yachts).
Vessels engaged in foreign trade
Vessels by major rigs:
Steam
Motor
Sail
Unrigged
Vessels by five major services:
Freight
Fishing
Passenger
Tanker
Towing
Gross tons
Number
Gross tons
41,819
6,636
30,682,488
19,007,081
42,767
6,807
30,898,233
18,983,878
4/339
26,452
238
7,043
25,376,917
2,130,409
54,895
2,983,927
4,241
27,324
228
7,215
25,489,085
2,142,027
46,154
3,087,021
10,006
14,561
4,436
1,813
4,445
22,605,356
509,984
871,176
5,477,940
509,931
10,189
14,935
4,678
1,743
4,574
22,808,289
531,599
805,305
5,519,776
516,182
L e g a l p r o b l e m s and p r o c e e d i n g s . - - C o n s i d e r a t i o n was given by
t h e Office of the Chief C o u n s e l to a l a r g e v a r i e t y of l e g a l p r o b l e m s
r e l a t i n g to s u c h m a t t e r s as c l a s s i f i c a t i o n and a p p r a i s e m e n t of
I m p o r t e d m e r c h a n d i s e ; I n t e r p r e t a t i o n of a d m i n i s t r a t i v e and e n f o r c e m e n t p r o v i s i o n s of the c u s t o m s and navigation l a w s ; r i g h t s
and d u t i e s of c u s t o m s e m p l o y e e s ; drafting of p r o p o s e d l e g i s l a tion; p r e p a r a t i o n of r e p o r t s on pending l e g i s l a t i o n ; a n d t h e p r e p a r a tion of c u s t o m s r e g u l a t i o n s . S p e c i a l c o n s i d e r a t i o n was given to a
n u m b e r of q u e s t i o n s a r i s i n g u n d e r the C u s t o m s Simplification Act
of 1953 (Public Law 243, a p p r o v e d August 8, 1953), such as the effective date of the r e p e a l of t h e f o r m e r Section 489 of the Tariff
Act of 1930 (19 U . S . C . 1489), r e l a t i n g to additional duties for u n d e r v a l u a t i o n of m e r c h a n d i s e ; and the effective date o f t h e a m e n d m e n t of Section 503 of the Tariff Act r e g a r d i n g the a s s e s s m e n t of
d u t i e s on the e n t e r e d value of m e r c h a n d i s e o r the final a p p r a i s e d
v a l u e , w h i c h e v e r Is h i g h e r .
O t h e r q u e s t i o n s e s p e c i a l l y c o n s i d e r e d r e l a t e d to the t i m e within
which v o l u n t a r y r e l l q u l d a t l o n s m a y be effected on m a t t e r s not
c o v e r e d by a p r o t e s t or a c o u r t d e c i s i o n on the p r o t e s t ; the a u t h o r i t y to r e q u i r e bonds w h e r e t h e r e h a s b e e n notice of withheld
a p p r a i s e m e n t u n d e r the Antidumping Act of 1921; the a u t h o r i t y to
a c c e p t I n f o r m a l e n t r i e s for p e r i s h a b l e a r t i c l e s o r o t h e r a r t i c l e s
the I m m e d i a t e d e l i v e r y of which Is p r o v i d e d for by Section 448(b)
of the Tariff Act; the p a y m e n t of a w a r d s to I n f o r m e r s ; and the
p a y m e n t of o v e r t i m e and holiday c o m p e n s a t i o n to c u s t o m s e m p l o y e e s . A c o n s i d e r a b l e a m o u n t of work was done In c o o p e r a t i o n
with the D e p a r t m e n t of J u s t i c e In the t a k i n g of final t e s t i m o n y In
the C o u r t of C l a i m s In the c u s t o m s I n s p e c t o r s ' o v e r t i m e c a s e s
a r i s i n g out of the d e c i s i o n s In United States v. jvleyers 320 U. S.
5 6 1 , 321 U. S. 750 and .United S t a t e s v . O ' R o u r k e 109 Ct. C l a s . 33
and In c a s e s Involving the c l a i m s of f o r m e r c u s t o m s b o r d e r p a t r o l
e m p l o y e e s to o v e r t i m e c o m p e n s a t i o n u n d e r the F e d e r a l e m p l o y e e s
pay a c t s .
Law e n f o r c e m e n t and I n v e s t i g a t i v e a c t i v i t i e s . ^ - T h e n u m b e r of
I n v e s t i g a t i o n s conducted by the C u s t o m s Agency S e r v i c e during
the f i s c a l y e a r was l e s s than d u r i n g e i t h e r of the two p r e c e d i n g
y e a r s , as shown In t a b l e 104. A d e c r e a s e In t o u r i n g p e r m i t v i o l a t i o n s was due to a p r o v i s i o n In the C u s t o m s Simplification Act
81
ADMINISTRATIVE REPORTS
p e r m i t t i n g t h e a d m i s s i o n of a u t o m o b i l e s a s p e r s o n a l e f f e c t s of
n o n r e s i d e n t s when such m a c h i n e s w e r e to be used solely for t o u r ing p u r p o s e s In t h e United S t a t e s . A d e c r e a s e In navigation v i o l a t i o n s w a s d u e I n p a r t t o t h e f a c t t h a t o w n e r s of l i c e n s e d v e s s e l s
a r e n o w g i v e n n o t i c e of t h e e x p i r a t i o n d a t e of s u c h v e s s e l l i c e n s e s
with the r e s u l t that m o s t l i c e n s e s a r e now r e n e w e d within the t i m e
p r e s c r i b e d . On the other hand, Investigations Involving narcotic
and other smuggling activities I n c r e a s e d . P e r s o n n e l Investigations
a l s o r o s e a s a r e s u l t of t h e n e w s e c u r i t y I n v e s t i g a t i o n s of t h e l a r g e
n u m b e r of e m p l o y e e s h o l d i n g " s e n s i t i v e " p o s i t i o n s , a s r e q u i r e d b y
E x e c u t i v e O r d e r No. 10450, dated April 27, 1953.
Major enforcement problems, as during the preceding year, Inv o l v e d t h e s m u g g l i n g I n t o t h e U n i t e d S t a t e s of d i a m o n d s , n a r c o t i c
d r u g s , a n d p s i t t a c i n e b i r d s ; a n d t h e s m u g g l i n g o u t of t h e c o u n t r y
of a r m s , a m m u n i t i o n , a n d I m p l e m e n t s of w a r . D i a m o n d s m u g g l i n g
I s c a r r i e d o n n o t s o m u c h t o a v o i d t h e p a y m e n t of t h e 10 p e r c e n t d u t y
as to evade Income and luxury taxes. A special customs " r a c k e t "
squad at New York m a d e s e v e r a l Important a r r e s t s during the
f i s c a l y e a r a n d s e i z e d d i a m o n d s w i t h a v a l u e of m o r e t h a n $ 4 0 0
thousand.
Attempts to s m u g g l e psittacine b i r d s continued, both automobiles
a n d a i r c r a f t b e i n g u s e d In t h i s I l l e g a l o p e r a t i o n .
T h e s m u g g l i n g of n a r c o t i c s c o n t i n u e d , t h e n u m b e r of s e i z u r e s
by c u s t o m s o f f i c e r s b e i n g p r a c t i c a l l y t h e s a m e a s In 1 9 5 3 , although
t h e q u a n t i t y of t h e s e i z e d d r u g s w a s s m a l l e r , a s f o l l o w s :
Percentage
increase, or
decrease ( )
Raw opium (ounces)
Smoking opi'um (ounces)
Heroin (ounces)
Other drugs (ounces)
Marihuana, bulk (ounces)
Marihuana, cigarettes (number)
r L ,620
r 263
r 216
3 437
'' 22 103
2 660
971
671
291
43
24,782
2,391
-79.0
155.1
34.7
-98.7
12.1
-10.1
V i o l a t i o n s of t h e N e u t r a l i t y Act c o n t i n u e d to be one of t h e m a j o r
p r o b l e m s for e n f o r c e m e n t o f f i c e r s a s t h e y h a v e b e e n d u r i n g t h e
p a s t s e v e r a l y e a r s . An a t t e m p t was m a d e by Cuban e x i l e s In t h i s
c o u n t r y to e x p o r t a r m s I l l e g a l l y In an effort to o v e r t h r o w t h e
p r e s e n t Cuban G o v e r n m e n t . Along t h e M e x i c a n b o r d e r o t h e r s e i z u r e s
w e r e m a d e of a r m s and a m m u n i t i o n d e s t i n e d for a C e n t r a l A m e r ican country.
As t h e r e s u l t of an I n v e s t i g a t i o n c o n d u c t e d d u r i n g 1953, a
s e i z u r e was m a d e of C h a r o l l a l s c a t t l e of an e s t i m a t e d v a l u e of a p p r o x i m a t e l y one m i l l i o n d o l l a r s . T h e two offenders In t h e c a s e
p l e a d e d guilty and w e r e s e n t e n c e d t o fines and I m p r i s o n m e n t .
In a d d i t i o n to s e i z u r e s m a d e for c u s t o m s v i o l a t i o n s , 31,069
s e i z u r e s w e r e m a d e for o t h e r a g e n c i e s , of which 30,601 w e r e for
t h e D e p a r t m e n t of A g r i c u l t u r e . In a d d i t i o n , 32 p e r s o n s w e r e
a p p r e h e n d e d and d e l i v e r e d t o t h e I m m i g r a t i o n , S e c r e t S e r v i c e ,
m i l i t a r y , or municipal authorities.
82
1954 REPORT OF THE SECRETARY OF THE TREASURY
Of t h e 5 5 7 p e r s o n s a r r e s t e d f o r n a r c o t i c v i o l a t i o n s , 4 2 0 c o n v i c t i o n s w e r e s e c u r e d , w i t h t o t a l p e n a l t i e s of 1 , 3 1 2 y e a r s I m p r i s o n m e n t and a l m o s t $ 9 t h o u s a n d In f i n e s . F o r all v i o l a t i o n s , 802 a r r e s t s w e r e m a d e d u r i n g t h e y e a r , a n I n c r e a s e of 132 o v e r t h o s e
I n 1 9 5 3 . Of t h e a r r e s t s , 6 2 2 w e r e m a d e I n t h e E l P a s o a n d S a n
F r a n c i s c o d i s t r i c t s . T h e r e w e r e 4 8 2 c o n v i c t i o n s , o r 89 m o r e t h a n
I n 1 9 5 3 . A t t h e e n d of t h e y e a r , t h e r e w e r e 327 o f f e n d e r s a w a i t i n g
t r i a l o r s t i l l u n d e r I n d i c t m e n t , w h i c h w a s 77 m o r e t h a n a t t h e b e g i n n i n g of t h e y e a r .
S e i z u r e s f o r t h e v i o l a t i o n of c u s t o m s l a w s a r e s h o w n I n t a b l e s
102 a n d 1 0 3 .
F o r e i g n t r a d e z o n e s . - - D u r i n g t h e s e v e n t e e n t h y e a r of I t s e x i s t e n c e , F o r e i g n T r a d e Zone N o . 1 on S t a t e n I s l a n d continued Its s u c c e s s f u l o p e r a t i o n at a slightly h i g h e r level than during the p r e v i o u s
y e a r , a l t h o u g h t h e n u m b e r of e n t r i e s of m e r c h a n d i s e I n t o c u s t o m s
t e r r i t o r y and the duties collected t h e r e o n w e r e lower. T h i r t y - f o u r
v e s s e l s u s e d the zone facilities for either d i s c h a r g i n g or lading
f o r e i g n c a r g o e s a n d 32 s h i p s b e r t h e d a t t h e z o n e t o l a d e d o m e s t i c
ships' s t o r e s . Improved protective facilities establlshedby the zone
o p e r a t o r m a d e It p o s s i b l e t o r e d u c e t h e r e i m b u r s a b l e p a y r o l l s f o r
c u s t o m s officers by a l m o s t $30 t h o u s a n d .
O p e r a t i o n s at F o r e i g n T r a d e Zone N o . 2 In New O r l e a n s w e r e
at a p p r o x i m a t e l y t h e s a m e l e v e l a s In 1 9 5 3 , although t h e r e w a s an
I n c r e a s e I n t h e n u m b e r of e n t r i e s I n t o c u s t o m s t e r r i t o r y a n d I n
t h e a m o u n t of d u t i e s c o l l e c t e d o n s u c h e n t r i e s .
F o r e i g n T r a d e Z o n e N o . 3 In S a n F r a n c i s c o s h o w e d a s h a r p
I n c r e a s e I n t h e v o l u m e of b u s i n e s s t r a n s a c t e d . A p l a n w a s w o r k e d
o u t w i t h t h e z o n e o p e r a t o r s w h e r e b y t h e n u m b e r of c u s t o m s p a t r o l
officers was r e d u c e d d u r i n g h o u r s when the zone was c l o s e d for
b u s i n e s s , thus saving the zone approximately $15 thousand a y e a r .
Sixty-two v e s s e l s u s e d the zone facilities during the y e a r 1954.
O p e r a t i o n s at F o r e i g n T r a d e Zone N o . 4 at L o s A n g e l e s w e r e
at a c o n s i d e r a b l y l o w e r level than d u r i n g the p r e v i o u s y e a r , but
w e r e m u c h h i g h e r t h a n In 1 9 5 2 .
T h e b u s i n e s s at F o r e i g n T r a d e Zone No. 5 at S e a t t l e a l s o d e clined from the previous y e a r partly b e c a u s e the zone lost Its ship
b e r t h i n g f a c i l i t i e s In a r e l o c a t i o n m o v e .
T h e o p e r a t i o n s at F o r e i g n T r a d e Zone N o . 6 In San Antonio w e r e
d i s c o n t i n u e d a t t h e e n d of O c t o b e r 1 9 5 3 , a n d t h e g r a n t t o t h i s z o n e
w a s c a n c e l e d . T h e f o l l o w i n g t a b l e c o n t a i n s a b r i e f s u m m a r y of
foreign trade zone operations.
Trade zone
New York
New Orleans
San Francisco
Los Angeles
Seattle
San Antonio
Number
of
entries
6,003
757
15,545
434
328
17
Received in zone
Long
tons
62,581
24,474
39,748
4,651
1,439
749
Value
34,476,699
13,987,157
6,509,901
3,690,063
538,138
77,775
Delivered from zone
Long
tons
59,570
22,765
39,748
6,903
1,064
1,263
Value
$54,541,523
12,377,306
10,835,601
5,047,838
545,476
1,536,956
Duties and
internal
revenue
taxes
collected
S3,256,973
194,614
494 957
132,353
73,817
35,585
83
ADMINISTRATIVE REPORTS
C h a n g e s In c u s t o m s p o r t s and s t a t i o n s . - - C u s t o m s s t a t i o n s at
T h a y e r and Z a p a t a , T e x . , and at B o u n d a r y , Wash., w e r e a b o l i s h e d
d u r i n g the y e a r , while s t a t i o n s w e r e e s t a b l i s h e d at P r o g r e s o and
F a l c o n D a m , Tex.; Cheboygan, Mich-; "and C h a u m o n t , N. Y. Sand
P o i n t , A l a s k a , was d e s i g n a t e d as a c u s t o m s p o r t of e n t r y .
The l i m i t s of the p o r t s of e n t r y w e r e e x t e n d e d to a r e a s not p r e v i o u s l y c o v e r e d at T a m p a , M i a m i , West P a l m B e a c h , and P o r t
E v e r g l a d e s , F l a . ; Baton Rouge, L a . ; Longvlew, Wash.; and Honolulu,
T . H.
C o s t of a d m i n i s t r a t i o n
As the r e s u l t of the C u s t o m s S i m p l i f i c a t i o n Act, t o g e t h e r with
o t h e r e c o n o m y m e a s u r e s , the a v e r a g e n u m b e r of c u s t o m s e m p l o y e e s
In 1954 was 485 l e s s t h a n d u r i n g the p r e v i o u s y e a r as Is shown In
t h e following t a b l e .
Operation
Regulation customs operations:
Nonreimbursable
Reimbursable^
Total regular customs euployment
Export control '.
Total employment
1954
1953
7,866
351
^,217
324
8,541
Percentage
decrease (-)
7,511
311
7,822
234
8,056
-4.5
-11.4
-4.8
-27.8
-5.7
• Salaries reimbursed to the Government by those private firms who received the exclusive services of
^
these employees.
C u s t o m s 1954 o p e r a t i n g e x p e n s e s t o t a l e d $ 4 1 , 1 4 3 , 2 5 8 , Including
for the f i r s t t i m e e x p o r t c o n t r o l e x p e n s e s . Such e x p e n s e s , t o g e t h e r
with c o l l e c t i o n s by t y p e , a r e d e t a i l e d by c o l l e c t i o n d i s t r i c t In t a b l e
9 1 . The t a b l e a l s o shows the c o s t of c o l l e c t i n g $ 100 of r e v e n u e .
A s u m m a r y of c o l l e c t i o n s and e x p e n d i t u r e s by b r a n c h of s e r v i c e
will be found In table 9 0 .
Management Improvement program
The C u s t o m s M a n a g e m e n t I m p r o v e m e n t P r o g r a m In 1954 was d i r e c t e d p r i m a r i l y t o w a r d s placing Into effect I m p r o v e m e n t s m a d e
p o s s i b l e by the C u s t o m s Simplification A c t o f 1953 (Public Law 243,
a p p r o v e d A u g u s t 8, 1953). One p r o v i s i o n r e p e a l e d p r e v i o u s r e s t r i c t i v e s t a t u t o r y r e q u i r e m e n t s r e l a t i n g to I n t e r n a l audit p r o c e d u r e s
and c o n t r i b u t e d to a m a j o r r e d u c t i o n In the v o l u m e of unliquidated
f o r m a l e n t r i e s on hand. A n e w " o n - s i t e " I n t e r n a l audit p r o g r a m was
p a r t i a l l y Initiated d u r i n g 1954 and will be expanded in 1955. This
p r o g r a m r e p l a c e s o u t m o d e d " d e s k " audit p r o c e d u r e s .
Under o t h e r I m p o r t a n t p r o v i s i o n s of the C u s t o m s Simplification
Act, r e g u l a t i o n s have b e e n I s s u e d t o e l i m i n a t e the r e q u i r e m e n t for
I m p o r t e r s to file a m e n d e d e n t r i e s to avoid the p e n a l t i e s for u n d e r •valulng I m p o r t e d m e r c h a n d i s e ; to a d m i t a u t o m o b i l e s owned by f o r eign r e s i d e n t s f r e e of duty as p e r s o n a l effects and without the r e g i s t r a t i o n p r e v i o u s l y r e q u i r e d ; to d i s p e n s e with the c o l l e c t i o n of duties
In m a n y c a s e s w h e r e the c o l l e c t i o n would e n t a i l e x p e n s e and I n c o n v e n i e n c e I n c o m m e n s u r a t e with the a m o u n t s of duties Involved; to
84
1954 REPORT OF THE SECRETARY OF THE TREASURY
p e r m i t t h e c o r r e c t i o n of I n a d v e r t e n t e r r o r s a n d m i s t a k e s b y c u s t o m s p e r s o n n e l a d v e r s e to the I m p o r t e r which, under p r i o r l a w s ,
w e r e s o m e t i m e s I m p o s s i b l e to c o r r e c t without r e s o r t to a p r i v a t e
c o n g r e s s i o n a l relief bill; to e l i m i n a t e special and d i s c r i m i n a t o r y
m a r k i n g r e q u i r e m e n t s which frequently caused Inexperienced I m p o r t e r s h e a v y f i n a n c i a l l o s s ; t o e l i m i n a t e t h e n o t a r i z a t i o n of c u s t o m s d o c u m e n t s ; to simplify the r e c o r d s and docimnentatlon r e q u i r e d
f o r t r a n s f e r s of g o o d s I n c u s t o m s b o n d e d w a r e h o u s e s ; a n d t o e f f e c t
m a n y other changes, which collectively, will facilitate foreign t r a d e ,
I m p r o v e s e r v i c e to the public, simplify c u s t o m s o p e r a t i o n s , and
reduce operating costs.
L e g i s l a t i o n to pernnlt f u r t h e r s i m p l i f i c a t i o n s to be m a d e In c u s t o m s p r o c e d u r e s and r e q u i r e m e n t s Is c o n t a i n e d In P u b l i c L a w 768,
a p p r o v e d S e p t e m b e r 1, 1 9 5 4 . T h e p r i n c i p a l f e a t u r e s o f t h i s l e g i s lation a r e to: P r o v i d e for the United States Tariff C o m m i s s i o n to
p r e p a r e r e v i s e d a n d s i m p l i f i e d s c h e d u l e s of t a r i f f c l a s s i f i c a t i o n
d e s c r i p t i o n s a n d r a t e s of d u t y f o r f u r t h e r c o n s i d e r a t i o n ; s i m p l i f y
the p r e s e n t r u l e s for classifying n o n e n u m e r a t e d a r t i c l e s ; p r o v i d e
f o r t h e p a y m e n t o f d u t y o n l y o n t h e v a l u e of t h e r e p a i r s o r a l t e r a t i o n s
of c e r t a i n m e t a l a r t i c l e s r e t u r n e d t o t h e U n i t e d S t a t e s ; t r a n s f e r I n j u r y I n v e s t i g a t i o n s u n d e r t h e A n t i d u m p i n g A c t of 1921 t o t h e U n i t e d
States Tariff C o m m i s s i o n , and modify the p r e s e n t r e t r o a c t i v e a p p l i c a t i o n of d u m p i n g d u t i e s ; m o d i f y a n d m a k e u n i f o r m t h e t a r i f f
s t a t u s of I m p o r t a t i o n s f r o m I n s u l a r p o s s e s s i o n s ; e x e m p t u n d o c u m e n t e d p l e a s u r e v e s s e l s from entry and c l e a r a n c e r e q u i r e m e n t s ;
p r o v i d e t h a t c a s h m a y b e d e p o s i t e d f o r e s t i m a t e d c o s t s of o v e r t i m e s e r v i c e s of c u s t o m s p e r s o n n e l l n l i e u of a b o n d ; a n d I n c r e a s e
t h e v a l u e of s e i z e d m e r c h a n d i s e t h a t m a y b e s u m m a r i l y f o r f e i t e d
a n d d i s p o s e d of f r o m $ 1,000 t o $ 2 , 5 0 0 . A d d i t i o n a l p r o v i s i o n s t o p e r m i t further simplifications will be s u b m i t t e d to the next C o n g r e s s .
Organizational c h a n g e s . - - A p r o g r a m to consolidate, w h e r e v e r
f e a s i b l e , the e n t r y and l i q u i d a t i n g a c t i v i t i e s and p e r s o n n e l In c o l l e c t o r s ' o f f i c e s , w h i c h w a s I n s t i t u t e d I n t h e l a t t e r p a r t of t h e f i s c a l
y e a r , w i l l b e c o m p l e t e d I n 1 9 5 5 . T h e p u r p o s e of t h i s p r o g r a m I s t o
o b t a i n g r e a t e r f l e x i b i l i t y I n t h e e x c h a n g e of p e r s o n n e l b e t w e e n t h e
two a c t i v i t i e s .
A d m i n i s t r a t i v e a c t i o n s . - - T h e e x a m i n a t i o n of p a s s e n g e r s ' b a g g a g e
has been r e d u c e d to the m i n i m u m consistent with the adequate enf o r c e m e n t of o u r l a w s , a n d s u b s t a n t i a l I m p r o v e m e n t s h a v e b e e n
m a d e In the p r o c e d u r e s for r e l e a s i n g m e r c h a n d i s e e x e m p t e d f r o m
duty as t o u r i s t s ' p u r c h a s e s but which a r r i v e u n a c c o m p a n i e d after
the t o u r i s t s have r e t u r n e d to this country. The possible extension
of p r e - f l l g h t c u s t o m s c l e a r a n c e of a i r p a s s e n g e r s a t t h e l a s t f o r e i g n p o i n t of d e p a r t u r e f o r t h e U n i t e d S t a t e s I s b e i n g g i v e n c a r e f u l
study.
E a r l y i n t h e s p r i n g of 1 9 5 4 a g r o u p of e x p e r i e n c e d a p p r a i s i n g
o f f i c e r s s u c c e s s f u l l y e l i m i n a t e d a b a c k l o g of a p p r o x i m a t e l y 160
f o r e i g n v a l u e I n q u i r i e s p e n d i n g In L o n d o n , t h u s p e r m i t t i n g a p p r a i s e m e n t a n d l i q u i d a t i o n of a b o u t 8 , 0 0 0 e n t r i e s p r e v i o u s l y h e l d u p . A t
t h e s a m e t i m e t h e s e m e n h e l d f o r u m s In s e v e r a l I n d u s t r i a l c e n t e r s
to acquaint B r i t i s h t r a d i n g I n t e r e s t s with United States c u s t o m s
laws and how they could help to expedite their s h i p m e n t s through
United States C u s t o m s .
ADMINISTRATIVE REPORTS
85
C o l l e c t o r s of C u s t o m s have b e e n a u t h o r i z e d to m a k e refunds of
e x c e s s p a y m e n t s of I n t e r n a l r e v e n u e t a x e s on I m p o r t e d m e r c h a n d i s e , as well as of e x c e s s d u t i e s . In o r d e r to expedite the p a y m e n t
of s u c h refunds to I m p o r t e r s . P r i o r to t h i s t i m e , the two t y p e s
of refunds w e r e h a n d l e d as s e p a r a t e t r a n s a c t i o n s , one by C u s t o m s
and one by the I n t e r n a l R e v e n u e S e r v i c e .
A r r a n g e m e n t s w e r e c o m p l e t e d with the Navy D e p a r t m e n t , C o a s t
G u a r d , and I n t e r n a l R e v e n u e S e r v i c e to d i s c o n t i n u e the r e q u i r e m e n t for c u s t o m s officers to s u p e r v i s e the lading of t o b a c c o s e a
s t o r e s s u b j e c t to I n t e r n a l r e v e n u e t a x e s w i t h d r a w n f r o m s e a s t o r e s
w a r e h o u s e s for u s e on n a v a l and C o a s t G u a r d v e s s e l s . U n d e r t h e
new a r r a n g e m e n t s , officers of t h e s e v e s s e l s have a s s u m e d the
d u t i e s p r e v i o u s l y p e r f o r m e d by c u s t o m s officers In the lading and
s e c u r i n g of t h e s e s t o r e s while the v e s s e l s a r e In p o r t .
Simplified e n t r y p r o c e d u r e s have b e e n I n s t i t u t e d c o v e r i n g the
t e m p o r a r y I m p o r t a t i o n s of a i r and w a t e r c r a f t and v e h i c l e s In
o r d e r to p a r t i c i p a t e In s p o r t i n g e v e n t s . The new p r o v i s i o n s a u t h o r i z e the e n t r a n c e of such c r a f t and v e h i c l e s on a s i m p l e t o u r i n g
p e r m i t when no m o n e y p u r s e s a r e to be a w a r d e d . Where m o n e y
p r i z e s a r e Involved, e n t r y r e q u i r e s a bond but without the u s u a l
s u r e t y o r c a s h d e p o s i t to s u p p o r t It.
V e s s e l a g e n t s and o p e r a t o r s w e r e benefited by a c o n s o l i d a t i o n
of s e v e r a l c u s t o m s f o r m s u s e d e x t e n s i v e l y In v e s s e l t r a n s a c t i o n s .
One c o n s o l i d a t e d f o r m now s e r v e s as (l) a p e r m l t to lade o r u n l a d e ,
(2) a r e q u e s t for p e r m i s s i o n to allow m e r c h a n d i s e to r e m a i n on the
wharf for m o r e t h a n 5 days without e n t r y , and (3) a r e q u e s t for
o v e r t i m e s e r v i c e s of c u s t o m s o f f i c e r s .
S t a n d a r d s of a c c e p t a b l e m a r k i n g of m e r c h a n d i s e to I n d i c a t e the
c o u n t r y of o r i g i n so as to m e e t the r e q u i r e m e n t s o f t h e c u s t o m s
laws w e r e p r e s c r i b e d for the guidance of I m p o r t e r s and foreign
e x p o r t e r s , as well as c u s t o m s o f f i c e r s .
The d o c u m e n t a t i o n of m e r c h a n d i s e m o v i n g u n d e r c u s t o m s bond
t h r o u g h the United S t a t e s was changed s o as to p e r m i t one d o c u m e n t to be u s e d for both m a n i f e s t and e n t r y p u r p o s e s on m e r c h a n d i s e a r r i v i n g f r o m C a n a d a and Mexico In c a r l o a d and s i n g l e s h i p m e n t t r u c k l o a d lots for s h i p m e n t t h r o u g h the United S t a t e s .
The r e q u i r e m e n t s for the flling of e n t r i e s w e r e changed to a l low I m p o r t e r s the s a m e p e r i o d of t i m e e a c h y e a r In which to qualify
for r e d u c e d r a t e s of duty on quota m e r c h a n d i s e s u b j e c t to r a t e s
of duty that change f r o m a l o w e r r a t e to a h i g h e r r a t e on fixed d a t e s .
E n t r i e s for this m e r c h a n d i s e a r e now p e r m i t t e d to be a c c e p t e d on
a S a t u r d a y , Sunday, o r l e g a l holiday If the l a s t day of the r e d u c e d
r a t e falls on one of t h o s e d a y s .
New m e t h o d s w e r e adopted for handling r e p o r t s of I n q u i r i e s
c o n c e r n i n g value o r c l a s s i f i c a t i o n In the C u s t o m s I n f o r m a t i o n E x change which will r e s u l t In a m o r e expeditious a p p r a i s e m e n t of
e n t r i e s awaiting c l a s s i f i c a t i o n o r a p p r a i s e m e n t a s the r e s u l t of
the I n q u i r i e s . In addition, p r o c e d u r e s have b e e n d e v i s e d to p e r m i t
a g r e a t e r e x c h a n g e of views among the a p p r a i s i n g officers who a r e
c o n c e r n e d with the s a m e r e p o r t s of I n q u i r y .
I m p o r t e r s a r e now being f u r n i s h e d with p r o m p t notice of p r o p o s e d d i s a g r e e m e n t by a p p r a i s i n g officers with the e n t e r e d value
o r tariff r a t e when the p r o p o s e d I n c r e a s e In duty e x c e e d s $ 1 5 .
86
1954 REPORT OF THE SECRETARY OF THE TREASURY
The e x a m i n a t i o n , c l a s s i f i c a t i o n , and r e l e a s e of cotton I m p o r t a tions a r r i v i n g at p o r t s w e s t of the M i s s i s s i p p i R i v e r have b e e n e x p e d i t e d by the e s t a b l i s h m e n t of a new cotton e x a m i n a t i o n d i s t r i c t
for t h a t a r e a at the p o r t of Los A n g e l e s . T h i s h a s a l s o r e l i e v e d
the h e a v y w o r k l o a d on the B o s t o n , M a s s . , d i s t r i c t w h e r e all cotton
s a m p l e s , e x c e p t for t h o s e a r r i v i n g at the p o r t of New York, w e r e
previously handled.
Bank d r a f t s , c a s h i e r s ' c h e c k s , and u n c e r t i f i e d c h e c k s a r e now
a c c e p t e d u n d e r c e r t a i n conditions In p a y m e n t of c u s t o m s duties
and o t h e r c h a r g e s . P r e v i o u s l y c h e c k s w e r e r e q u i r e d to be c e r t i fied even though d r a w n for s m a l l s u m s .
In c o o p e r a t i o n with t h e c o m m e r c i a l a i r l i n e s and the A i r Traffic
C o n f e r e n c e of A m e r i c a , a s p e c i a l In-bond b a g g a g e check f o r m was
adopted to p r o v i d e the c a r r i e r a t t h e d e s t i n a t i o n with a r e c o r d which
will f a c i l i t a t e an accounting to c u s t o m s for the d i s p o s i t i o n of In-bond
baggage.
S t a n d a r d s for the u n i f o r m a s s i g n m e n t of I n s p e c t i o n a l p e r s o n n e l
w e r e I s s u e d to c o l l e c t o r s of c u s t o m s . The a p p l i c a t i o n o f t h e s e
s t a n d a r d s h a s r e s u l t e d In a m o r e effective u s e of c u s t o m s m a n power.
O t h e r m a n a g e m e n t I m p r o v e m e n t s . - - S e a s o n a l p e r s o n n e l a r e now
being employed to r e p l a c e f u l l - t i m e p e r s o n n e l at p o r t s and s t a t i o n s
( p r i m a r i l y along the C a n a d i a n b o r d e r ) w h e r e heavy t o u r i s t traffic
d u r i n g c e r t a i n p e r i o d s of the y e a r msikcs t h i s type of e m p l o y m e n t
both f e a s i b l e and e c o n o m i c a l .
In c o m b a t i n g the s m u g g l i n g of n a r c o t i c s , s p e c i a l r e w a r d s a r e
being offered to t h o s e who c o n t r i b u t e I n f o r m a t i o n leading to n a r c o t i c
s e i z u r e s , and m a s t e r s of v e s s e l s h a v e b e e n f u r n i s h e d with s u g g e s t i o n s as to how they c a n a s s i s t In k e e p i n g t h e i r v e s s e l s f r e e of
n a r c o t i c s and o t h e r s m u g g l i n g a c t i v i t i e s . A l s o , i n t h e fight a g a i n s t
n a r c o t i c s m u g g l i n g , r e p o r t s of n a r c o t i c s e i z u r e s a r e now being
s u b m i t t e d on a m o n t h - t o - m o n t h and y e a r - t o - y e a r b a s i s for u s e In
e v a l u a t i n g and d i r e c t i n g the a c t i v i t i e s of c u s t o m s e n f o r c e m e n t p e r sonnel.
M o r e effective c o n t r o l s o v e r e x p o r t a t i o n s of m e r c h a n d i s e s u b j e c t
to the v a r i o u s e x p o r t c o n t r o l laws have b e e n e s t a b l i s h e d by t h e u s e
of s p e c i a l c o n c e n t r a t e d I n s p e c t i o n s and by t h e i n s t i t u t i o n of t r a i n i n g
p r o g r a m s for t h e p e r s o n n e l e m p l o y e d In t h i s a c t i v i t y .
Under the I n c e n t i v e a w a r d s p r o g r a m , 82 eimployee s u g g e s t i o n s
w e r e adopted with the p a y m e n t of a w a r d s a m o u n t i n g t o $ 1 , 7 5 5 .
S e v e r a l of t h e s e s u g g e s t i o n s w e r e for change® in l e g i s l a t i o n which
w e r e adopted In the C u s t o m s S i m p l i f i c a t i o n ActD u r i n g the y e a r , 16 f o r m s w e r e a b o l i s h e d and 7 f o r m s c o n s o l i dated, while only 5 new f o r m s w e r e adopted. B e c a u s e of t h e m a n y
c h a n g e s In p r o c e d u r e , 195 f o r m s had to be r e v i s e d .
ADMINISTRATIVE REPORTS
87
Continuing p r o g r e s s In the p r o g r a m to d i s p o s e of o b s o l e t e , u s e l e s s , and Inactive r e c o r d s Is r e f l e c t e d In the s a l e of 7,405 cubic
feet of r e c o r d s and the t r a n s f e r of 23,285 cubic feet of r e c o r d s to
F e d e r a l r e c o r d s c e n t e r s . Thc d i s p o s i t i o n of t h e s e r e c o r d s r e l e a s e d 973 file c a s e s , 1,125 t r a n s f e r c a s e s , and 12,939 s q u a r e feet
of floor s p a c e for r e u s e . The l a s t o f t h e c o m p r e h e n s i v e s c h e d u l e s
r e q u i r e d for the d i s p o s i t i o n of r e c o r d s m a i n t a i n e d In c u s t o m s fleld
offices was p r e p a r e d and p r e s e n t e d to the c o n g r e s s i o n a l C o m m i t t e e
on R e c o r d s D i s p o s a l .
An a g g r e g a t e of 60,282 s q u a r e feet of s p a c e was r e p o r t e d as a v a i l able for I m m e d i a t e r e l e a s e by c u s t o m s fleld offices as the r e s u l t
of s u r v e y s conducted d u r i n g thc y e a r .
L i m i t a t i o n s p l a c e d upon the u s e of official a u t o m o b i l e s , and thc
e s t a b l i s h m e n t of c a r pools In fleld offices, w h e r e f e a s i b l e , b r o u g h t
about t h e d i s p o s i t i o n , by s a l e o r t r a n s f e r to o t h e r a g e n c i e s , of 66
customs automobiles.
In o r d e r to comply with the Intent of C o n g r e s s e x p r e s s e d In
T i t l e V, Independent Offices A p p r o p r i a t i o n Act, 1952 (5 U.S.C. 140),
fees w e r e p r e s c r i b e d for the following s e r v i c e s : R e g i s t e r i n g a
h o u s e flag o r funnel m a r k of a v e s s e l ; r e c o r d i n g a t r a d e - m a r k ,
t r a d e n a m e , p r copyright; d e s i g n a t i n g a c o m m o n c a r r i e r as a
c a r r i e r of c u s t o m s bonded m e r c h a n d i s e ; approving e s t a b l i s h m e n t
of a c u s t o m s bonded w a r e h o u s e ; I s s u i n g a c u s t o m s c a r t a g e o r
l i g h t e r a g e l i c e n s e ; and I s s u i n g a c u s t o m h o u s e b r o k e r ' s l i c e n s e .
BUREAU OF ENGRAVING AND PRINTING
The B u r e a u of E n g r a v i n g and P r i n t i n g d e s i g n s , e n g r a v e s , and
p r i n t s c u r r e n c y , s e c u r i t i e s , p o s t a g e and r e v e n u e s t a m p s . G o v e r n m e n t c h e c k s , m i l i t a r y c o m m i s s i o n s and c e r t i f i c a t e s , and o t h e r
e n g r a v e d w o r k for the v a r i o u s G o v e r n m e n t a g e n c i e s , the B o a r d
of G o v e r n o r s of the F e d e r a l R e s e r v e S y s t e m , and I n s u l a r p o s s e s sions of the United S t a t e s .
Production
D e l i v e r i e s of finished w o r k d u r i n g thc f i s c a l y e a r 1954 t o t a l e d
738,466,057 s h e e t s , a d e c r e a s e of 104,112,885, a p p r o x i m a t e l y
12.4 p e r c e n t , as c o m p a r e d with the quantity d e l i v e r e d d u r i n g the
p r e v i o u s y e a r . A c o m p a r a t i v e s t a t e m e n t of d e l i v e r i e s of finished
w o r k In the f i s c a l y e a r s 1953 and 1954 f o l l o w s .
88
1954 REPORT OF THE SECRETARY OF THE TREASURY
Comp)arative statement of deliveries of finished work, fiscal years 1953 and 1954
Face value
1954
Currency:
United States notes
Silver certificates
Federal Reserve notes
Total
Bonds, notes, bills, certificates, and debentures:
Bonds:
Postal savings
Treasury, standard form
United States savings
Depositary
'
.
Consolidated Federal farm loan for the 12 Federal
intermediate credit banirs
Notes:
Treasury, modified new design
Treasury savings, 1940 design:
Series A
Series B
Series C
Treasury, registered, special series
Consolidated, Federal home loan banks, bearer
Other
Treasury bills:
1940 design
1953 design
Certificates:
Indebtedness, new design back
Special series
Interim transfer, postal savings bonds
Postal savings
Other
Debentures:
Collateral trust of the Central Bank for Cooperatives
Consolidated collateral trust for the 12 Federal
intermediate credit banks
Federal Housing Administration war housing insurance
;
Title I housing insurance fund
Housing insurance fund
Military housing insurance fund
National defense housing insurance'fund
Mutual mortgage insurance fund
Specimens:
Bonds
Notes
Treasury bills
Certificates
Debentures
Dummy layout of face of U.S. savings bonds, 1943 design,
white ledger
Total
Stamps:
Customs
Internal Revenue:
To office of issue
Delivered for destruction
Specimens
Puerto Rican revenue
Virgin Islands revenue
United States war savings
Postage:
United States (ordinal^)
Specimens, United States
Canal Zone
Air mail
Commemoratives
Special delivery
Postage due
Special, handling
D.C. beverage tax paid
Federal migratory bird hunting
3,5%,667
95,006,000
88,562,222
2,403,333
82,794,555
47,470,667
1164,712,000
1,961,416,000
9,497,600,000
187,164,889
132,668,555
11,623,728,000
690
792,625
104,877,000
1,000
1,200
1,222,860
85,078,000
504,000
45,624,395,000
7,239,150,000
53,000
36,000
308,455,000
555,300
42,453,100,,000
107,000
350
29,500
7,483,300,000
1,316,700
149,300
99,137,000,000
1,239,000,000
788,800
500
1,000
1,278,650
51,590,000,000
3,300
282,000
20,000
3,351
502,620
1,561,500
761
650,000,000
963,088,750
10,860
166,000,000
73,000
108,500
1,677,500,000
9,410
1,500
4,000
2,000
2,000
1,450
7,500
4,500
5,500
21,725,000
2,887,500
10,645,000
1,000
2,000
3,822,500
2,935,000
418
72
10
113,475
36,000
10,000
5,000
316,000
109,765,581
90,706,157
1,033
258,573,988,225
1,774,500
1,231,000
304,961,560
488,387
6
1,470,683
600
936,340
288,962,716
197,996
"818,656
17,911,300
216,235,976
9
56,600
171,357,385
9
62,150
7,988,837
25,764,544
1,088,630
1,795,232
27,576
906,500
45,375
707,359,872
897,900
66,375
3,860,996,924
1,823,354
672,500
63,855,401
39,026,286
10,872,515
18,422,144
207,520
4,137,453
10,164,000
89
ADMINISTRATIVE REPORTS
Comparative statement of deliveries of finished wor k, fiscal years 1953 and 1954-- Continued
Sheets
Class
1953
Foreign Service fee
Slaight lock seals
19,800
17,408
1954
$4,797,200
502,131,162
4 738 423,115
10,660,638
1,809,714
742,468
5,291
Diplomas
21,202
40,000
526,926,144
Total
Miscellaneous:
Checks
8,814,148
1,815,197
82,538
7,568
4,000
248,046
5,000
3
1,983,683
216,735
15,000
25
5,272,457
Military payment orders
.
18,722,328
;
12,960,183
842,578,942
Total
Face value
1954
738,466,057
274,936,139,340
Finances
The B u r e a u o p e r a t i o n s a r e financed by r e i m b u r s e m e n t s to a
w o r k i n g c a p i t a l fund a u t h o r i z e d by law. A s t a t e m e n t of I n c o m e
and e x p e n s e f o r the f i s c a l y e a r 1954 and c o m p a r a t i v e b a l a n c e
s h e e t s as of July 1, 1953 and 1954 follow.
S t a t e m e n t of I n c o m e and e x p e n s e for the f i s c a l y e a r 1954
Engraving and printmg:
Income from sales
Less: Cost of goocis sold:
Purchases of direct materials
Decrease in inventory of direct materials
,
$30,332,117
$5,530,682
26,459
Direct materials used
Direct labor
Manufacturing expenses (excluding depreciation and
amortization
,
Depreciation and amortization
5,557,141
14,842,951
Total manufacturing costs
Add:
Decrease in goods in process inventory
Decrease in finished goods inventory
29,253,570
7,190,161
1,663,317
446,929
127,292
Cost of goods sold
Net income before nonoperating expenses
Nonoperating expenses:
Loss on disposal of fixed assets
Estimated theft loss
29,827,791
504,326
432,529
129,060
Total nonoperating expenses
461,589
Net income from engraving and printing
Footnote at end of table.
42,737
90
1954 REPORT OF THE SECRETARY OF THE TREASURY
S t a t e m e n t of I n c o m e a n d e x p e n s e f o r t h e f i s c a l y e a r 19 5 4 - - C a n t i n u e d
Operation and maintenanceofincinerator and space utilized
by other Treasury activities:
Income from services
••..
Less: Cost of services
$319,398
319,398
Net income from operation and maintenance of incinerator and space utilized by other Treasury activities
Card checks:
Income from sales
Less: Cost of goods sold (purchase and related costs).
713,322
713,322
Net income from card checks
Other direct charges for miscellaneous services:
Income from services
Less: Cost of services
74,644
74,644
Net income from miscellaneous services
Net income for the fiscal year 1954 ...,
«$ 42,737
lAs of June 30, 1954, the^net loss to the U. S. Government resulting from the theft of $160,000 in
completed Federal Reserve notes by a Bureau employee was estimated to be $29,060. At a later date,
the net loss was determined to be $25,790; adjustment of difference wiU be reflected in the accounts
during fiscal 1955.
«In accordance with the act approved August 4,1950 (31 U.S.C. 181(a)), net income will be deposited
into the general fiind of the Treasury as miscellaneous receipts during fiscal year 1955.
Comparative balance s h e e t s , June 30, 1953 and 1954
Assets
June 30, 1953
Current assets:
Cash with U. S. Treasury
Accounts receivable
Inventories:
Finished goods
Goods in process
Raw materials
stores
Prepaid expenses
June 30, 1954
$5,079,123
2,345,046
1,330,742
3,074,453
1,064,136
1,222,036
55,184
Less portion charged off as depreciation.
Total fixed assets
Deferred charges
Total assets
Footnotes at end. of table.
11,711,754
14,258,116
56,631
113,379
463,890
3,955,961
278,787
407,398
15,538,684
56,348
117,779
478,236
3,955,961
438,846
289,158
19,534,162
^
1,203,450
2,627,524
1,037,677
1,273,010
14,170,720
Total current assets
Fixed assets:^
Plant machinery and equipment
Motor vehicles
Office machines
Furniture and fixtures
Dies, rolls, and plates
Building appurtenances
Fixed assets under construction
$3,854,848
1,626,259
20,875,012
2,880,101
3,328,151
16,654,061
17,546,861
152,103'
30,976,884
155,129
29,413,744
91
ADMINISTRATIVE REPORTS
Comparative balance sheets, June 30, 1953 and 1954^--Continued
Liabilities and investment of the United States
Current liabilities:
Accounts payable
Accrued liabilities:
Payroll
Accrued leave
Other
Trust and deposit liabilities
Other liabilities
June 30, 1953
June 30, 1954
$431,417
1,325,061
1,617,636
75,196
638,495
32,272
5,549,836
4,120,077
3,250,000
22,000,930
3,250,000
22,000,930
25,250,930
Total liabilities
$496,267
2,536,719
1,683,915
33,581
798,646
708
25,250,930
Investment of the United States Govemment
Principal of the fund:
Appropriation from United States Treasury
Donated assets, net
Total principal
3 176,118
3 42,737
25,427,048
25,293,667
Earned surplus
Total investment of the United States Govermnent
Total liabilities and investment of the United States Govemment.
^ Balance sheets as of the close of both fiscal years have.been adjusted to reflect in transit items on a
basis consistent with the central accoiints maintained by the Bureau of Accounts, Treasury Department. The
balance sheet as of June 30, 1953, has been further adjusted to reflect inventories, prepaid expenses, and
deferred charges on a basis consistent with the revised format utilized in presenting the balance sheet as
of June 30, 1954.
^ Fixed assets acquired prior to July 1,1950, are capitalized at. appraised values (estimated replacement
cost as of July 1, 1951, reduced to recognize the depreciated condition of the assets being capitalized);
subsequent additions have been capitalized at cost, except that on and after July 1, 1951, all costs of manufacturing dies, rolls, and plates have been charged to current operations.
The act approved August 4, 1950 (31 U.S.C. 181(a)), which established the Bureau of Engraving and Printing
Fund, specifically excluded from the assets of the fund the land and buildings occupied by the Bureau. In
accordance with the Comptroller General's decision of October 4, 1951 (B-104492), however, replacements of
building facilities and inprovements to buildings made on and after July 1, 1951, have been financed by the
fund. Such items of significant dollar amounts have been capitalized at cost and appear in the foregoing
balance sheets vinder the caption "Building appurtenances."
^ Eamed surplus arises through billing for products at unit prices established prior to the development
of actual costs. Section 2(e) of the act of August 4, 1950, requires that any surplus accruing to the revolving fund dxiring any fiscal year be deposited into the general fund of the Treasury as miscellaneous
receipts during the ensuing fiscal year, provided that such surplus may first be applied to offset any deficit resulting from operations in prior years. Net earned surplus in the amount of $176,118 was deposited
into the general fvmd during the fiscal year 1954; surplus amounting to $42,737, which accrued during fiscal
year 1954, will be returned to the Treasury during fiscal 1955.
I m p r o v e m e n t s In o r g a n i z a t i o n and m a n a g e m e n t
O r g a n i z a t i o n a l c h a n g e s . - - D u r i n g the f i s c a l y e a r 1954, the plans
for r e o r g a n i z a t i o n which w e r e d e s c r i b e d In the 1953 annual r e p o r t
w e r e c a r r i e d out. T h e s e c h a n g e s h a v e r e s u l t e d In I m p r o v e d a d m i n i s t r a t i o n and moire efficient o p e r a t i o n s t h r o u g h r e d u c t i o n In
the n u m b e r of s e p a r a t e d i v i s i o n s and offices r e p o r t i n g to top
m a n a g e m e n t and t h r o u g h p r o p e r functional a l i g n m e n t of c l o s e l y
r e l a t e d a c t i v i t i e s . In addition, p l a n s w e r e c o m p l e t e d for the
e s t a b l i s h m e n t , to b e c o m e effective on J u l y 1, 1954, of a new
D i s b u r s e m e n t Section In the Office of A d m i n i s t r a t i v e S e r v i c e s ,
to p e r f o r m t h c function of d i s b u r s e m e n t for t h i s B u r e a u .
M a n a g e m e n t I m p r o v e m e n t s . - - F r o m M a r c h 15 t h r o u g h J u n e 15,
1954, a c o m p r e h e n s i v e s u r v e y o{ t h c B u r e a u was conducted by
t h e Methods E n g i n e e r i n g Council of P i t t s b u r g h , P a . , with a view
to effecting o v e r a l l m a n a g e m e n t I m p r o v e m e n t s . A r e p o r t of
findings and r e c o m m e n d a t i o n s had not b e e n r e c e i v e d as of the
c l o s e of the f i s c a l y e a r .
92
1954 REPORT OF THE SECRETARY OF THE TREASURY
P a r t i c i p a t i o n by all o r g a n i z a t i o n a l c o m p o n e n t s In r e s o l v i n g
r e c o m m e n d a t i o n s m a d e by t h e I n t e r n a l Audit Section on B u r e a u
o p e r a t i o n s h a s r e s u l t e d I n a s t r o n g e r s y s t e m of I n t e r n a l c o n t r o l .
I m p r o v e d p r o c e d u r e s , e l i m i n a t i o n of d u p l i c a t e a n d u n n e c e s s a ^ r y
r e c o r d s , p r o m p t financial r e p o r t s , reduced operating c o s t s , and
c o r r e c t i o n of d e f i c i e n c i e s I n o r g a n i z a t i o n a l s t r u c t u r e s a n d f l o w
of w o r k w i t h i n d i v i s i o n s a n d o f f i c e s .
A n a c t i v e p r o g r a m w a s c a r r i e d out In f i s c a l 1954 to s t r e n g t h e n
th6 s e c u r i t y p r o g r a m In the B u r e a u . In addition to an I n v e s t i g a t i o n
m a d e by a 1 7 - m e m b e r s u b c o m m i t t e e e s p e c i a l l y d e s i g n a t e d for
that p u r p o s e and a n o t h e r m a d e by the B u r e a u S e c u r i t y Officer,
an e x t e n s i v e Independent s u r v e y w a s conducted by the United
S t a t e s S e c r e t S e r v i c e . A n e v a l u a t i o n of r e c o m m e n d a t i o n s b a s e d
on t h e s e s u r v e y f i n d i n g s Is In p r o c e s s a n d I m p r o v e d s e c u r i t y
m e a s u r e s a r e expected to r e s u l t .
Operational improvements
The o v e r a l l m a n a g e m e n t I m p r o v e m e n t p r o g r a m c a r r i e d out In
t h e B u r e a u of E n g r a v i n g a n d P r i n t i n g d u r i n g t h i s p e r i o d c e n t e r e d
on the p r o j e c t s d e s c r i b e d below. R e c u r r i n g annual savings a r e
e s t i m a t e d t o a m o u n t t o $ 1 , 7 9 2 , 6 7 1 . I n a d d i t i o n , a n u m b e r of s u b s i d i a r y and I n t e r r e l a t e d c h a n g e s r e s u l t e d In b e t t e r s u p e r v i s i o n .
I m p r o v e d f l o w of w o r k , m o r e e f f e c t i v e s e r v i c e s , a n d o t h e r a d v a n c e m e n t s w h i c h c a n n o t b e a s s e s s e d I n t e r m s of m o n e y .
IS^subject c u r r e n c y p r o g r a m . - - B y September 1953, a l l c u r r e n c y
b e i n g p r o d u c e d In t h e B u r e a u w a s p r i n t e d f r o m 1 8 - s u b j e c t c u r r e n c y
p l a t e s . T h e r e w e r e , h o w e v e r , n u m e r o u s c h a n g e s In m e t h o d s and c o n d i t i o n s r e s u l t i n g f r o m t h i s p r o g r a m d u r i n g t h e y e a r . F o r I n s t a n c e , It
w a s n e c e s s a r y t o f i n i s h d e l i v e r i e s of w o r k I n p r o c e s s of t h e 1 2 - s u b j e c t s t o c k . I n a d d i t i o n , t h e o l d t y p e of r o t a r y o v e r p r i n t i n g p r e s s e s ,
which could not be c o n v e r t e d to the 1 8 - s u b j e c t p r i n t i n g s , w e r e s u p p l a n t e d by n e w r o t a r y t y p o g r a p h i c p r e s s e s for the o v e r p r i n t i n g o p e r a t i o n . A l l t h e n e w o v e r p r i n t i n g p r e s s e s w e r e In o p e r a t i o n by A p r i l
1954. D u r i n g the c o n v e r s i o n p e r i o d t h e r e was a c o n s t a n t need to r e v i s e p r o c e d u r e s t o m e e t p r o d u c t i o n n e e d s u n d e r t h e n e w m e t h o d of
p r i n t i n g . R e c u r r i n g annual savings for this p r o j e c t w e r e r e p o r t e d for
the fiscal y e a r 1953.
P r i n t i n g . - - T h e m o s t s i g n i f i c a n t s a v i n g s In p r i n t i n g m e t h o d s
w e r e r e a l i z e d t h r o u g h t h e I n s t a l l a t i o n of a u t o m a t i c f e e d e r s o n
Intaglio p r e s s e s . The p r o g r a m to convert the feeding m e c h a n i s m
on the p l a t e p r i n t i n g p r e s s e s to a wholly a u t o m a t i c s y s t e m was
s t a r t e d In J u l y 1953, and w a s c o m p l e t e d by J u n e 22, 1954. T h e
principal saving from this change c a m e about through the reduction
I n f o r c e of a n a s s i s t a n t a t e a c h p r e s s . O n a n a n n u a l b a s i s t h e
saving will a m o u n t to a p p r o x i m a t e l y $ 8 3 5 , 3 1 5 .
T h e u s e of m i l l w e t p a p e r f o r c u r r e n c y w a s a d o p t e d a s s t a n d a r d
p r o c e d u r e during the past fiscal y e a r , after about six months
e x p e r i m e n t a t i o n . U s e of t h i s p a p e r e l i m i n a t e s a h a n d c o u n t of
p a p e r a f t e r t h i s o p e r a t i o n , a n d h a s r e d u c e d t h e n u m b e r of e m ployees formerly needed. Estimated annual savings from this
Innovation a r e $359,264.
F o l l o w i n g a s t u d y of t h e p o s s i b i l i t y of p r i n t i n g s a v i n g s b o n d s
by the offset p r o c e s s , the T r e a s u r y D e p a r t m e n t a n n o u n c e d a
c h a n g e - o v e r t o t h e o f f s e t m e t h o d of p r i n t i n g S e r i e s E b o n d s of
t h e $ 2 5 d e n o m i n a t i o n . T h e o f f s e t m e t h o d of p r i n t i n g I s f a s t e r a n d
ADMINISTRATIVE REPORTS
93
l e s s e x p e n s i v e , r e s u l t i n g I n s a v i n g s of a b o u t $ 4 4 6 , 4 5 4 o n a n
annual b a s i s .
M e c h a n i c a l I n n o v a t i o n s . - - C o u n t i n g m a c h i n e s w e r e I n t r o d u c e d In
t h e o v e r p r i n t i n g s e c t i o n of t h e S u r f a c e P r i n t i n g D i v i s i o n d u r i n g t h e
y e a r . T h e s e m a c h i n e s a r e a c t u a t e d by v a c u u m , and w e r e I m p o r t e d
f r o m E n g l a n d . T h r e e additional m a c h i n e s a r e on o r d e r . Savings
f r o m the two m a c h i n e s being u s e d at the p r e s e n t t i m e will a m o u n t
to $10,159 on a r e c u r r i n g a n n u a l ' b a s l s .
T h r e e electronic counting machines which were obtained from
s u r p l u s w e r e modified so that they could count full-sized notes.
T h e m a c h i n e s a r e b e i n g u s e d t o c o u n t s t o c k f o r m u t i l a t i o n . It I s
a n t i c i p a t e d t h a t r e d u c t i o n s I n f o r c e a s a r e s u l t of t h e u s e of t h e s e
m a c h i n e s w i l l r e s u l t I n r e c u r r i n g a n n u a l s a v i n g s of a p p r o x i m a t e l y
$18,000.
A new a u t o m a t i c p a c k a g e w r a p p i n g m a c h i n e was put Into o p e r a t i o n I n D e c e m b e r 1 9 5 3 , f o r t h e m e c h a n i c a l w r a p p i n g of p a c k a g e s of
p o s t a g e s t a m p s h e e t w o r k . A s a r e s u l t of t h i s I n s t a l l a t i o n , 17
wage l e v e l - 1 positions w e r e d e c l a r e d s u r p l u s , with a net annual
s a v i n g of a p p r o x i m a t e l y $ 4 0 , 0 0 0 a n d . I n a d d i t i o n , a n I m p r o v e d
package has been developed. Also during this period, two eightheaded stitching machines were Installed.
Procedural Improvements
T h e r e h a s b e e n an u n u s u a l l y h e a v y w o r k l o a d In t h e m a n u f a c t u r i n g
of p l a t e s d u r i n g t h e f l s c a l y e a r 1 9 5 4 , r e s u l t i n g f r o m t h e I n t r o d u c t i o n
of 1 8 - s u b j e c t p r i n t i n g of c u r r e n c y . D u r i n g t h i s t i m e t h e r e h a v e b e e n
a n u m b e r of c h a n g e s w h i c h h a v e I m p r o v e d w o r k i n g c o n d i t i o n s , t h e
q u a l i t y of t h e p l a t e s a n d t h e s p e e d of p r o c e s s i n g , a l t h o u g h n o
I d e n t i f i a b l e m o n e t a r y s a v i n g s r e s u l t e d . S o m e of t h e I m p r o v e m e n t s
a r e b r i e f l y d e s c r i b e d a s f o l l o w s : U s e of a w o r k i n g t a b l e f i t t e d
with a " d o w n d r a f t " h a s b e e n o r d e r e d In t h e offset p l a t e m a n u f a c t u r i n g p r o c e s s e s w h i c h I n v o l v e t h e u s e of h a r m f u l c h e m i c a l s ;
w o r k i n g a r e a s In the photolltho s e c t i o n h a v e b e e n r e a r r a n g e d so t h a t
t h e r e I s a s m o o t h f l o w of w o r k ; a n d a n e w a i r h o i s t w a s I n s t a l l e d
t o l i f t e n g r a v e d p l a t e s I n t o a n d o u t of t h e c y a n i d e a n d q u e n c h i n g
tanks during the h a r d e n i n g p r o c e s s , thus r e p l a c i n g m a n u a l lifting.
E l i m i n a t i o n of p r i n t e d m a t t e r o n t h e I n s i d e of p o s t a g e s t a m p
b o o k c o v e r s h a s r e d u c e d t h e c o s t of p r i n t i n g t h e c o v e r s b y 5 0
p e r c e n t , a n d m a d e a n e t a n n u a l s a v i n g of a p p r o x i m a t e l y $ 1 5 , 0 0 0 .
D u r i n g t h e y e a r a r e v i e w w a s m a d e b y t h e B u r e a u of E n g r a v i n g
a n d P r i n t i n g I n c o l l a b o r a t i o n w i t h r e p r e s e n t a t i v e s of t h e G e n e r a l
A c c o u n t i n g O f f i c e a n d t h e B u r e a u of A c c o u n t s , T r e a s u r y D e p a r t m e n t , of t h e B u r e a u ' s a c c o u n t i n g s y s t e m , w i t h s p e c i a l e m p h a s i s
on c o s t a c c o u n t i n g . In an a t t e m p t to d e v e l o p s i m p l i f i c a t i o n s In
s o m e of t h e p r o c e d u r e s a n d p r o v i d e m o r e m e a n i n g f u l a n d t i m e l y
financial d a t a . T h e r e v i s e d p r o c e d u r e s w e r e put Into effect on
J u l y 1, 1 9 5 4 . I t I s b e l i e v e d t h a t t h e i r a d o p t i o n w i l l s i m p l i f y t h e
B u r e a u ' s cost accounting methods and p r o c e d u r e s , as well as
f a c i l i t a t e t h e a n a l y s i s of c o s t d a t a a n d e x p e d i t e t h e p r e p a r a t i o n
of c o s t r e p o r t s f o r t h e l e v e l of m a n a g e m e n t r e s p o n s i b l e f o r t h e i r
control.
U n d e r a s y s t e m adopted by the I n t e r n a l R e v e n u e S e r v i c e , the
D i s t r i c t D i r e c t o r s s e n d t h e i r r e q u i s i t i o n s for s t a m p s d i r e c t l y to
t h e B u r e a u I n s t e a d of s e n d i n g t h e m t o t h e C o m m i s s i o n e r of I n t e r n a l
339256
0-55-8
94
1954 REPORT OF THE SECRETARY OF THE TREASURY
Revenue for consolidation, as was the previous p r a c t i c e . The new
s y s t e m e l i m i n a t e s t h e n e e d In this B u r e a u t o a n a l y z e t h e o r d e r s and
r e a r r a n g e t h e m b y c l a s s bf s t a m p s a n d t h e n r e a s s e m b l e t h e m I n t h e
packing operation by o r d e r i n g offices. Some simplification h a s
been effected and the o r d e r s have been expedited to the fleld.
T h e a c t i v i t i e s of t h e M a t e r i a l s H a n d l i n g C o m m i t t e e , w h i c h w a s
e s t a b l i s h e d I n J a n u a r y 1 9 5 3 , r e s u l t e d I n a n u m b e r of p r o c e d u r a l
I m p r o v e m e n t s d u r i n g t h e c u r r e n t y e a r . O n e of t h e m a j o r s t u d i e s of
t h i s c o m m i t t e e w a s t h e r e v i s i o n of s p e c i f i c a t i o n s f o r s k i d s . T h i s
h a s r e s u l t e d In g r e a t e r efficiency, e c o n o m y , a n d safety In m a t e r i a l s
handling.
C a r t o n s a r e u s e d exclusively for shipping postage and r e v e n u e
s t a m p s . A c o n t i n u i n g p r o g r a i m of I m p r o v e m e n t of c a r t o n s a n d
sealing materials
has been carried forward during the year.
Several In-between sizes were Introduced which d e c r e a s e the
a m o u n t of f i l l e r n e c e s s a r y w h e n s m a l l a m o u n t s w o u l d b e s h i p p e d
I n t h e s t a n d a r d l a r g e r s i z e of c a r t o n . N e w e x p e r i m e n t a l c a r t o n s
and packages w e r e m a d e and tested. Including a dip type t r a n s parent coating for packages.
A n u m b e r of p e r s o n n e l u t i l i z a t i o n s t u d i e s w e r e m a d e d u r i n g
f i s c a l 1 9 5 4 I n a l l t h e o f f i c e s a n d d i v i s i o n of t h e B u r e a u . I n g e n e r a l ,
these studies a r i s e from revised p r o c e d u r e s Incident to major
t e c h n i c a l c h a n g e s , a n d a s a r e s u l t of t h e a n n u a l a u d i t of p o s i t i o n s
by t h e w a g e a n d c l a s s i f i c a t i o n staff. M a n a g e m e n t I m p r o v e m e n t
c o m m i t t e e s In t h e v a r i o u s offices a l s o c o n t r i b u t e s o m e s t u d i e s .
The changes resulting from t h e s e studies brought about annual
s a v i n g s of $ 5 9 , 3 2 5 .
Industriai relations activities
T h e t o t a l n u m b e r of e m p l o y e e s o n t h e r o l l s a t t h e b e g i n n i n g
of t h e f i s c a l y e a r w a s 5 , 6 1 4 . B e c a u s e of a l a r g e s c a l e r e d u c t l o n In-force p r o g r a m resulting from operational Improvements and
fewer p r o g r a m r e q u i r e m e n t s for the ensuing fiscal y e a r , the
n u m b e r of e m p l o y e e s o n t h e r o l l s a s of J u n e 3 0 , 1 9 5 4 , w a s r e d u c e d
to 4,701.
W a g e a d j u s t m e n t s a f f e c t i n g 1,296 e m p l o y e e s In a p p r o x i m a t e l y
95 c r a f t and n o n c r a f t j o b c a t e g o r i e s , a m o u n t e d t o an a n n u a l I n c r e a s e d c o s t of $ 1 5 7 , 2 9 5 . 8 4 . G e n e r a l l y , t h e p a t t e r n of wage a d j u s t m e n t s b e g i n n i n g e a r l y In 1953 c h a n g e d f r o m a c r o s s - t h e - b o a r d
c o s t - o f - l i v i n g I n c r e a s e s to a r e a l i g n m e n t of r a t e s to c o m p a r e
m o r e c l o s e l y with r a t e s p a i d In p r i v a t e I n d u s t r y .
E m p l o y e e s w e r e given m o r e r e c o g n i t i o n and a w a r d s In f i s c a l
1954 t h a n In any p r e v i o u s y e a r , with e m p h a s i s being p l a c e d on
the s u p e r i o r a c c o m p l i s h m e n t , efficiency, and h o n o r a w a r d p r o g r a m s .
E s t i m a t e d a n n u a l s a v i n g s f r o m e m p l o y e e s u g g e s t i o n s will a m o u n t to
$ 9 , 1 5 4 on a r e c u r r i n g a n n u a l b a s i s .
A p r o g r a m w a s c o n t i n u e d f r o m t h e p r e v i o u s f i s c a l y e a r to
r e d u c e a b s e n t e e i s m . T h i s r e s u l t e d In l o w e r i n g t h e p e r c e n t a g e
r a t e for u n s c h e d u l e d a b s e n c e s by 21 p e r c e n t , which a m o u n t s to a
s a v i n g of 2,694 m a n - d a y s o v e r t h e n u m b e r of d a y s r e p o r t e d l a s t
y e a r . T h i s p r o g r a m h a s b e e n e s t a b l i s h e d on a p e r m a n e n t b a s i s
as a m e a n s of p r e v e n t i n g a b s e n t e e i s m f r o m b e c o m i n g a s e r i o u s
problem.
ADMINISTRATIVE REPORTS
95
The t r a i n i n g s e c t i o n of the Office of I n d u s t r i a i R e l a t i o n s d e veloped s e v e r a l p r o g r a m s for s u p e r v i s o r y t r a i n i n g c o n s i s t i n g of
twelve t w o - h o u r c o n f e r e n c e s , f l l m s , and c a s e s t u d i e s . F o u r c o m p l e t e t r a i n i n g p r o g r a m s w e r e given, two for s u p e r v i s o r s of the
E x a m i n i n g Division who w e r e s e r v i n g a s acting s u p e r v i s o r s and
two for e x p e r i e n c e d s u p e r v i s o r s . O n - t h e - j o b t r a i n i n g was a l s o
p r o v i d e d for e m p l o y e e s In s e v e r a l specific a r e a s .
F i s c a l 1954 showed the b e s t r e c o r d for safety thus far a t t a i n e d
In this B u r e a u with a l o w e r i n g In t h e f r e q u e n c y r a t e ^ f r o m 11.74 In
1953 to 11.21 In 1954. T h i s m e a n t t h a t t h e r e w e r e t h i r t y fewer
l o s t t i m e a c c i d e n t s In 1954 than In 1953. This was b r o u g h t about
by s e v e r a l m e a n s . N u m e r o u s safety h a z a r d s w e r e e l i m i n a t e d ;
c l a s s e s In safety t r a i n i n g w e r e conducted for a p p r o x i m a t e l y 200
s u p e r v i s o r s ; 65 e m p l o y e e s of the t r a n s p o r t a t i o n unit c o m p l e t e d
safety t r a i n i n g with the r e s u l t t h a t t h e r e w e r e no a c c i d e n t s In this
g r o u p In 1954 as c o m p a r e d with 4.25 In 1953; the '^SatfetyNewsl e t t e r " was published p e r i o d i c a l l y to give r e c o g n i t i o n to s u c c e s s f u l
a p p l i c a t i o n of safety r u l e s ; f i r s t aid t r a i n i n g c l a s s e s w e r e c o n ducted continuously with the goal of t r a i n i n g t e n p e r c e n t of the
B u r e a u ' s p e r s o n n e l for civil defense; and f l r e fighting and civil
d e f e n s e I n f o r m a t i o n was m a d e a v a i l a b l e to all s t o r e k e e p e r s who
m a i n t a i n f l a m m a b l e m a t e r i a l s In t h e i r s t o r e r o o m s .
Long r a n g e r e s e a r c h p r o g r a m
Much of the future a d v a n c e m e n t In p r i n t i n g p r o c e s s e s In t h e
B u r e a u depends upon the s u c c e s s f u l d e v e l o p m e n t of s u i t a b l e
printing Inks. F o r the past y e a r numerous studies have been
m a d e to d e v e l o p h e a t - s e t Inks and to refine the f o r m u l a s which
could be u s e d In d r y p r i n t i n g . T h e s e Inks a r e being t e s t e d on
the web-fed and s h e e t - f e d r o t a r y e x p e r i m e n t a l p r e s s e s . A b r o a d
fleld of s y n t h e t i c m a t e r i a l s Is a l s o being e x p l o r e d In connection
with the d e v e l o p m e n t of Inks for t h e s e p r e s s e s . As a r e s u l t of
this r e s e a r c h , s e v e r a l p r o d u c t i o n jobs w e r e r u n u s i n g d r y p r i n t i n g
p r o c e s s e s d u r i n g f i s c a l 1954. F u r t h e r e x p e r i m e n t a t i o n will be
continued to p e r f e c t the d r y p r i n t i n g t e c h n i q u e s and to I m p r o v e
t h e o p e r a t i o n of the e x p e r i m e n t a l p r e s s e s .
P r e g u m m e d p a p e r was f i r s t u s e d s u c c e s s f u l l y d u r i n g this f i s c a l
y e a r In the d r y Intaglio p r i n t i n g of the b i c o l o r e i g h t - c e n t Statue of
L i b e r t y p o s t a g e s t a m p . P r e v i o u s a t t e m p t s to a c c o m p l i s h this had
m e t with f a i l u r e . The s u c c e s s a c h i e v e d In t h i s p r i n t i n g led to the
p r i n t i n g of the $ 2 . 0 0 m i g r a t o r y b i r d hunting s t a m p on d r y , p r e gummed paper.
S h o r t a g e of $160,000 In B u r e a u s t o c k
On J a n u a r y 4 , 1954, at a p p r o x i m a t e l y 9:20 a . m . , two of the
e m p l o y e e s of the c u r r e n c y o v e r p r i n t i n g s e c t i o n . S u r f a c e P r i n t i n g
Division, who w e r e engaged In unloading w r a p p e d p a c k a g e s of c u r r e n c y from s k i d s and p l a c i n g t h e m In bins In the v a u l t , d i s c o v e r e d
t h a t two of the p a c k a g e s w e r e light In weight. T h e s e two p a c k a g e s
b o r e l a b e l s Indicating t h a t e a c h contained 4,000 New York F e d e r a l
R e s e r v e n o t e s of t h e twenty d o l l a r d e n o m i n a t i o n .
IThe number of disabling injuries per 1,000,000 man-hours worked.
96
1954 REPORT OF THE SECRETARY OF THE TREASURY
An audit w a s u n d e r t a k e n I m m e d i a t e l y by the I n t e r n a l audit
s t a f f of a l l c u r r e n c y I n t h e c u r r e n c y o v e r p r i n t i n g s e c t i o n . A b o u t
12 h o u r s l a t e r , w h e n t h e a u d i t w a s c o m p l e t e d , It w a s d e t e r m i n e d
t h a t t h e r e w a s a n a c t u a l s h o r t a g e of t w o p a c k a g e s of t w e n t y d o l l a r
n o t e s , a g g r e g a t i n g 8 , 0 0 0 n o t e s , h a v i n g a t o t a l v a l u e of $ 1 6 0 , 0 0 0 .
T h e 8,000 n o t e s In q u e s t i o n w e r e In c o m p l e t e d f o r m , s i m i l a r In a l l
r e s p e c t s t o n o t e s I n c i r c u l a t i o n . Of t h i s a m o u n t , $ 1 3 4 , 2 1 0 h a s b e e n
recovered.
F o l l o w i n g t h e d e t e r m i n a t i o n of t h e s h o r t a g e t h e I n v e s t i g a t i o n
w a s c o n t i n u e d b y t h e U n i t e d S t a t e s S e c r e t S e r v i c e . ^ A n e m p l o y e e of
t h e B u r e a u w a s a p p r e h e n d e d a n d , u p o n a d m i s s i o n of h i s g u i l t ,
was d i s m i s s e d from the r o l l s and p r o s e c u t e d .
N e w I s s u e s of s t a m p s
O r d e r s w e r e r e c e i v e d and dies w e r e e n g r a v e d for new I s s u e s
of p o s t a g e s t a m p s a s f o l l o w s :
Denomination
(cents)
American Bar Association, Commemorative, Series 1953
Sagamore Hill, Home of Theodore Roosevelt, Commemorative,
Future Farmers of America, Commemorative, Series 1953
General George S. Patton, Jr., Commemorative, Series 1953
300th Anniversary of New York City, Commemorative, Series
50th Anniversary of the Trucking Industry, Commemorative,
100th Anniversary of the Gadsden Purchase, Commemorative,
Columbia University, Commemorative, Series 1954
Nebraska Territorial, Commemorative, Series 1954
Kansas Territorial, Commemorative, Series 1954
George Eastman, Coinmeraorative, Series 1954
Lewis and Clark Expedition, Commemorative, Series 1954
Series 1953.
,
1953
,
Series 1953.,
Series 1953.,
,
,
,
,
O t h e r new I s s u e s of s t a m p s p r o d u c e d d u r i n g the y e a r Include
the two d o l l a r F e d e r a l m i g r a t o r y b i r d hunting s t a m p . S e r i e s
1 9 5 4 - 5 5 . O r d e r s w e r e r e c e i v e d and new p l a t e s w e r e made^for
P u e r t o R i c a n bottle s t r i p s t a m p s for s p i r i t s . S e r i e s 1953, In a
d e n o m i n a t i o n of " M e n o s De l / 2 P l n t a " ( l e s s than l / 2 pint)
p r i n t e d In S p a n i s h .
FISCAL SERVICE
The F i s c a l S e r v i c e c o n s i s t s of the Office of the F i s c a l A s s i s t a n t
S e c r e t a r y , the B u r e a u of A c c o u n t s , the B u r e a u of the P u b l i c Debt,
and the Office of the T r e a s u r e r of the United S t a t e s . T h e i r o p e r a t i o n s
a r e u n d e r the g e n e r a l s u p e r v l s l o n o f the F i s c a l A s s i s t a n t S e c r e t a r y .
The F i s c a l A s s i s t a n t S e c r e t a r y , u n d e r the d i r e c t i o n of the Under
S e c r e t a r y for M o n e t a r y A f f a i r s , a d m i n i s t e r s the financing o p e r a t i o n s
of the T r e a s u r y and t h r o u g h the C o m m i s s i o n e r of Accounts s u p e r v i s e s the a d m i n i s t r a t i o n of accounting functions and a c t i v i t i e s of all
units of the T r e a s u r y D e p a r t m e n t . It Is the duty of the F i s c a l A s s i s t ant S e c r e t a r y to m a i n t a i n l i a i s o n with the o t h e r d e p a r t m e n t s ,
a g e n c i e s , and b r a n c h e s of the G o v e r n m e n t with r e s p e c t to t h e i r
financial o p e r a t i o n s and to c o o r d i n a t e s u c h o p e r a t i o n s with t h o s e
1 Further information is included in the report of the United States Secret Service.
ADMINISTRATIVE REPORTS
97
of the T r e a s u r y . The accounting a s p e c t of t h i s w o r k Is c a r r i e d out
t h r o u g h the C o m m i s s i o n e r of Accounts u n d e r the joint accounting
I m p r o v e m e n t p r o g r a m of the S e c r e t a r y of the T r e a s u r y , the
D i r e c t o r of the B u r e a u of the Budget, and the C o m p t r o l l e r G e n e r a l
of t h e United S t a t e s In a c c o r d a n c e with the Budget and Accounting
P r o c e d u r e s Act of 1 9 5 0 . '
The F i s c a l A s s i s t a n t S e c r e t a r y p r e p a r e s e s t i m a t e s of the future
c a s h p o s i t i o n of the T r e a s u r y for u s e of the D e p a r t m e n t In Its
financing; s u p e r v i s e s the c a s h p o s i t i o n of the T r e a s u r y and the
d i s t r i b u t i o n of funds b e t w e e n the F e d e r a l R e s e r v e Banks and o t h e r
G o v e r n m e n t d e p o s i t a r i e s ; p r e p a r e s c a l l s for the w i t h d r a w a l of
funds f r o m the s p e c i a l d e p o s i t a r i e s to m e e t c u r r e n t e x p e n d i t u r e s ;
d i r e c t s f i s c a l agency functions In g e n e r a l ; and Is r e s p o n s i b l e for
the a d m i n i s t r a t i o n of T r e a s u r y r e g u l a t i o n s governing the p u r c h a s e ,
c u s t o d y , t r a n s f e r , and s a l e of foreign exchange a c q u i r e d by the
United S t a t e s u n d e r v a r i o u s e x e c u t i v e a g r e e m e n t s with foreign
g o v e r n m e n t s In connection with United S t a t e s p r o g r a m s o p e r a t e d
abroad.
The s e v e r a l r e s p o n s i b i l i t i e s of the F i s c a l A s s i s t a n t S e c r e t a r y
a r e Indicated m o r e fully,In the o p e r a t i o n s d e t a i l e d In the following
r e p o r t s by the C o m m i s s i o n e r of A c c o u n t s , the C o m m i s s i o n e r of
the P u b l i c Debt, and the T r e a s u r e r of the United S t a t e s .
BUREAU OF ACCOUNTS
Accounting, Reporting, and Related Matters
C e n t r a l r e p o r t i n g and accounting c h a n g e s
C h a n g e s In the r e p o r t i n g of the r e c e i p t s and e x p e n d i t u r e s of
the G o v e r n m e n t w e r e m a d e In F e b r u a r y 1954; they w e r e adopted
In the I n t e r e s t of p r o v i d i n g m o r e effective b u d g e t a r y c o n t r o l and
b e t t e r public u n d e r s t a n d i n g of G o v e r n m e n t o p e r a t i o n s . On F e b r u a r y
17, 1954, a joint s t a t e m e n t was I s s u e d by the S e c r e t a r y of the
T r e a s u r y , t h e D i r e c t o r of the B u r e a u of the Budget, and the
C o m p t r o l l e r G e n e r a l of the United S t a t e s which explained the
n a t u r e of the c h a n g e s and t h e i r p u r p o s e s (exhibit 70). A n e w
b u d g e t a r y s t a t e m e n t , the ' ' M o n t h l y S t a t e m e n t of R e c e i p t s and
E x p e n d i t u r e s of the United S t a t e s G o v e r n m e n t " h a s - b e e n developed
and the content of the '*Dally S t a t e m e n t of t h e U n i t e d S t a t e s
T r e a s u r y " was r e v i s e d to b e c o m e a s t a t e m e n t of c a s h d e p o s i t s
and w i t h d r a w a l s affecting the g e n e r a l account of the T r e a s u r e r
of the United S t a t e s .
An I m p o r t a n t objective of the new r e p o r t i n g s y s t e m Is the
e s t a b l i s h i n g of the " M o n t h l y S t a t e m e n t of R e c e i p t s and E x p e n d i t u r e s
of the United S t a t e s G o v e r n m e n t " as the key s t a t e m e n t with which
all o t h e r G o v e r n m e n t r e p o r t s r e l a t i n g to r e c e i p t s and e x p e n d i t u r e s
should be c o n s i s t e n t . T h e s e r e p o r t s Include the " B u d g e t o f t h e
United S t a t e s G o v e r n m e n t , " p r e p a r e d In the B u r e a u of the Budget;
the " C o m b i n e d S t a t e m e n t of R e c e i p t s , E x p e n d i t u r e s and B a l a n c e s
of the United S t a t e s G o v e r n m e n t , " (in d e t a i l by a p p r o p r i a t i o n s
and funds) the " A n n u a l R e p o r t of the S e c r e t a r y of the T r e a s u r y
on the State of the F i n a n c e s , " and the monthly " T r e a s u r y B u l -
98
1954 REPORT OF THE SECRETARY OF THE TREASURY
l e t l n , " w h i c h a r e p r e p a r e d I n t h e B u r e a u of A c c o u n t s ; a n d o t h e r
r e p o r t s of G o v e r n m e n t a g e n c i e s sho^wlng c a s h r e c e i p t s a n d e x p e n d i t u r e s p r e p a r e d f o r u s e of t h e G o v e r n m e n t a n d t h e p u b l i c .
A n o t h e r I m p o r t a n t o b j e c t i v e I s t o p r o v i d e f o r t h e I n t e g r a t i o n of
a g e n c y - T r e a s u r y d a t a o n t h e c o m m o n b a s i s of c a s h t r a n s a c t i o n s .
T h i s I n t e g r a t i o n I n v o l v e s t h e e s t a b l i s h m e n t of p r o c e d u r e s f o r t h e
r e c o n c i l i a t i o n of t h e r e c e i p t s a n d e x p e n d i t u r e s of a g e n c i e s w i t h t h e
c h a n g e s In the T r e a s u r y ' s c a s h b a l a n c e and the public debt o u t s t a n d i n g t h r o u g h t h e u s e of s u c h f a c t o r s a s o u t s t a n d i n g c h e c k s ,
u n d e p o s i t e d c o l l e c t i o n s , d e p o s i t s In t r a n s i t , and c a s h h e l d by f i s c a l
officers outside the T r e a s u r e r ' s account. The Comptroller General
of t h e U n i t e d S t a t e s h a s a n I m p o r t a n t r o l e I n t h e n e w r e p o r t i n g
s y s t e m I n t h a t t h e r e l i a b i l i t y of t h e d a t a s u b m i t t e d t o t h e T r e a s u r y
w i l l b e t e s t e d b y t h e G e n e r a l A c c o u n t i n g O f f i c e I n t h e c o u r s e of
Its audit activities.
T h e c o n t e n t of t h e m o n t h l y a n d d a l l y s t a t e m e n t s I s s u m m a r i z e d I n
the p a r a g r a p h s which follow. The change I n t h e dally s t a t e m e n t took
p l a c e I n t h e I s s u e of F e b r u a r y 1 7 , 1 9 5 4 , a n d t h e f i r s t m o n t h l y
s t a t e m e n t c o v e r e d t h e p e r i o d f r o m J u l y 1, 1 9 5 3 , t h r o u g h F e b r u a r y
2 8 , 1 9 5 4 . T h e m o n t h l y s t a t e m e n t I s p u b l i s h e d r e g u l a r l y a s of t h e
e n d of e a c h m o n t h a n d I s r e l e a s e d I n t h e m i d d l e of t h e m o n t h
following. The monthly s t a t e m e n t for the complete fiscal y e a r
p u b l i s h e d In m i d - J u l y Is p r e l i m i n a r y and Is followed by a final
statement after all disbursing and collecting offices' accounts. Including t h o s e f r o m o v e r s e a s , h a v e b e e n r e c e i v e d . On F e b r u a r y 17,
1954, the T r e a s u r y I s s u e d D e p a r t m e n t C i r c u l a r No. 940, which
r e q u i r e s t h e s u b m i s s i o n of r e p o r t s f r o m a l l G o v e r n m e n t d i s b u r s i n g
officers (exhibit 71).
" M o n t h l y S t a t e m e n t of R e c e i p t s a n d E x p e n d i t u r e s o f t h e U n i t e d
States G o v e r n m e n t . " - - B u d g e t r e c e i p t s and expenditures and surplus
o r deficit a r e shown In the n e w nionthly s t a t e m e n t , o n t h e b a s i s
of r e p o r t s t o t h e T r e a s u r y b y c o l l e c t i n g a n d d i s b u r s i n g a g e n c i e s
throughout the G o v e r n m e n t . R e c e i p t s a r e r e p o r t e d on a collection
b a s i s o r o n t h e b a s i s of c o n f i r m e d d e p o s i t s I n T r e a s u r y a c c o u n t s .
E x p e n d i t u r e s a r e r e p o r t e d o n a u n i f o r m b a s i s of c h e c k s I s s u e d a n d
c a s h p a y m e n t s by d i s b u r s i n g o f f i c e r s . In a d d i t i o n to the t r a n s a c t i o n s
I n t h e g e n e r a l a c c o u n t of t h e T r e a s u r e r o f t h e U n i t e d S t a t e s , t h i s
s t a t e m e n t shows receipt and expenditure t r a n s a c t i o n s c o n s u m m a t e d
o u t s i d e t h e a c c o u n t of t h e T r e a s u r e r .
A s u m m a r y shows cumulative budget r e c e i p t s and expenditures
and s u r p l u s o r deficit In t h e c u r r e n t f i s c a l y e a r , the a n n u a l t o t a l s
for the t h r e e I m m e d i a t e l y p r e c e d i n g y e a r s , and c u r r e n t budget
e s t i m a t e s . A s of t h e e n d of e a c h of t h e s e p e r i o d s t h e r e a r e s h o w n
t h e p u b l i c d e b t o u t s t a n d i n g a n d t h e b a l a n c e In t h e g e n e r a l a c c o u n t
of t h e T r e a s u r e r of t h e U n i t e d S t a t e s .
A n e w f e a t u r e of t h e s t a t e m e n t s h o w s c u r r e n t l y t h e a c t u a l 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 c o m p a r e d with the P r e s i d e n t ' s p r o g r a m
as m o d i f i e d by the C o n g r e s s . T h i s affords u s e r s o f t h e s t a t e m e n t
a m e a n s of f o l l o w i n g t h e t r e n d of a c t u a l a s a g a i n s t p l a n n e d e x p e n d i t u r e s and e s t i m a t e d r e c e i p t s .
F o r t h e f i r s t t i m e t h e t r a n s a c t i o n s of t h e P o s t O f f i c e D e p a r t m e n t
a r e b e i n g I n c l u d e d In r e p o r t s on r e c e i p t s a n d e x p e n d i t u r e s ( i n cluding budget r e s u l t s ) on the s a m e b a s i s as o t h e r G o v e r n m e n t
a g e n c i e s . This w a s m a d e p o s s i b l e by t h e a c c o u n t i n g and r e p o r t i n g
ADMINISTRATIVE REPORTS
99
I m p r o v e m e n t s b e i n g I n s t a l l e d In t h e P o s t Office D e p a r t m e n t . A l s o ,
t h e b a s i s f o r r e p o r t i n g I n t e r n a l r e v e n u e r e c e i p t s of w i t h h e l d
I n c o m e , employment, and excise taxes has been Improved.
" D a l l y S t a t e m e n t of t h e U n i t e d S t a t e s T r e a s u r y . " - - T h e n e w f o r m
of t h e d a l l y T r e a s u r y s t a t e m e n t s h o w s a s r e c o r d e d e a c h d a y I n
t h e g e n e r a l a c c o u n t of t h e T r e a s u r e r of t h e U n i t e d S t a t e s c l a s s i f i e d
d e p o s i t s and w i t h d r a w a l s ; gold, s i l v e r , funds on hand and on
deposit, and c e r t a i n d i r e c t liabilities; and the closing c a s h b a l a n c e .
D e p o s i t s a r e o n t h e b a s i s of c o n f i r m e d c e r t i f i c a t e s of d e p o s i t
c r e d i t e d a n d w i t h d r a w a l s o n t h e b a s i s of p a i d c h e c k s c h a r g e d I n
t h e g e n e r a l a c c o u n t of t h e T r e a s u r e r of t h e U n i t e d S t a t e s .
In addition, t h e r e a r e shown the effect o f t h e d a y ' s o p e r a t i o n s on
the public debt, changes in the public debt, and total s a l e s and
r e d e m p t i o n s of U n i t e d S t a t e s s a v i n g s b o n d s . T h e l a s t I s s u e o f t h e
m o n t h I n c l u d e s a l s o a d e t a i l e d s t a t e m e n t of p u b l i c d e b t r e c e i p t s
and e x p e n d i t u r e s for the m o n t h and the fiscal y e a r to date with
c o m p a r a t i v e data for the y e a r p r e c e d i n g ; and s t a t e m e n t s o f t h e
p u b l i c d e b t a n d t h e g u a r a n t e e d o b l i g a t i o n s of t h e U n i t e d S t a t e s
o u t s t a n d i n g a s of t h e e n d of t h e m o n t h .
T h e d a l l y T r e a s u r y s t a t e m e n t Is r e g u l a r l y c o m p l i e d I n t h e Office
of t h e T r e a s u r e r of t h e U n i t e d S t a t e s . T h e B u r e a u of A c c o u n t s
p r o v i d e s s p e c i a l d a t a r e q u i r e d for the c o m p i l a t i o n and t e c h n i c a l
supervision.
P u r p o s e s of t h e m o n t h l y a n d d a l l y s t a t e m e n t s . - - I n g e n e r a l , t h e
" M o n t h l y S t a t e m e n t of R e c e i p t s a n d E x p e n d i t u r e s of t h e U n i t e d
States G o v e r n m e n t " was d e s i g n e d for t h o s e who h a v e r e s p o n s i b i l i t y
for, or an I n t e r e s t in, the execution o f t h e G o v e r n m e n t ' s financial
p r o g r a m , a n d t h e I m p a c t of s u c h o p e r a t i o n s o n t h e e c o n o m y . T h e
" D a l l y S t a t e m e n t of t h e U n i t e d S t a t e s T r e a s u r y " I s t h e p r i m a r y
s o u r c e of d a t a o n t h e c a s h f l o w of F e d e r a l f u n d s a n d I s d e s i g n e d
t o m e e t t h e r e q u i r e m e n t s of t h o s e w h o h a v e r e s p o n s i b i l i t y f o r t h e
m a n a g e m e n t pf o r I m m e d i a t e I n t e r e s t I n t h e c a s h p o s i t i o n of t h e
U n i t e d S t a t e s T r e a s u r y , a n d t h e m a n a g e m e n t of t h e p u b l i c d e b t .
T h e T r e a s u r y D e p a r t m e n t u s e s both the monthly and dally s t a t e m e n t s In m a n a g i n g t h e c a s h p o s i t i o n . In m a n a g i n g t h e p u b l i c d e b t ,
and In e s t i m a t i n g the r e v e n u e s :
R e p o r t i n g e c o n o m i e s . - - P r i n t i n g of t h e " D a l l y S t a t e m e n t o f t h e
U n i t e d S t a t e s T r e a s u r y " a n d t h e " M o n t h l y S t a t e m e n t of R e c e i p t s
a n d E x p e n d i t u r e s of t h e U n i t e d S t a t e s G o v e r n m e n t " b y t h e o f f s e t
p r o c e s s In f i s c a l 1954 c o s t $ 2 4 , 0 0 0 . T h i s c o m p a r e d with t h e c o s t
In f i s c a l
1 9 5 3 of $ 7 3 , 0 0 0 f o r p r i n t i n g a l l I s s u e s of t h e d a l l y
T r e a s u r y s t a t e m e n t by l e t t e r p r e s s .
A s a n o t h e r e c o n o m y m e a s u r e , t h e " D i g e s t of A p p r o p r i a t i o n s , "
w h i c h t h e T r e a s u r y D e p a r t m e n t h a d p u b l i s h e d f o r 81 y e a r s , w a s
d i s c o n t i n u e d . T h e l a s t I s s u e c o v e r e d t h e a p p r o p r i a t i o n s by C o n g r e s s
for the fiscal y e a r 1954.
P l a n s a n d p r o g r e s s . - - C o n s i d e r a b l e g r o u n d w k h a d b e e n l a i d In
e a r l i e r s t a g e s of t h e J o i n t A c c o u n t i n g P r o g r a m of w h i c h t h e n e w
r e p o r t i n g and accounting changes a r e a p a r t . ( F o r policy and obj e c t i v e s of t h e p r o g r a m , s e e A n n u a } R e p c : - t of 1 9 4 9 , p . 3 4 4 . ) C o n c e p t s had b e e n d e v e l o p e d c o n c e r n i n g the b a s i s for a c e n t r a l a c counting and r e p o r t i n g s y s t e m . P r o c e d u r e s for m a k i n g funds
available for d i s b u r s i n g and accounting for r e c e i p t s had been greatly
s i m p l i f i e d t h r o u g h v i r t u a l e l i m i n a t i o n of t h e w a r r a n t s y s t e m . T h e
100
1954 REPORT OF THE SECRETARY OF THE TREASURY
b a s i s had b e e n e s t a b l i s h e d for fundamental accounting I m p r o v e m e n t ,
a n d t h e o r g a n i z a t i o n of t h e B u r e a u of A c c o u n t s h a d b e e n r e a l i g n e d
t o e s t a b l i s h In t h e T r e a s u r y t h e n e c e s s a r y o p e r a t i n g c e n t e r f o r c o n s o l i d a t i o n of a c c o u n t i n g r e s u l t s . A n I m p o r t a n t c o n t r i b u t i o n h a d b e e n
m a d e by t h e I n d i v i d u a l G o v e r n m e n t a g e n c i e s In I m p r o v i n g t h e i r a c counting and r e p o r t i n g u n d e r s t a n d a r d s and p r i n c i p l e s c o n f o r m i n g
to the o v e r a l l p a t t e r n .
I n t h e r e a l i g n e d B u r e a u of A c c o u n t s ( A n n u a l R e p o r t f o r 1 9 5 3 ,
p . 106), w o r k Is p r o c e e d i n g s i m u l t a n e o u s l y t o w a r d two I n t e r d e p e n d e n t a l m s : t h e I m p r o v e m e n t of c e n t r a l f i n a n c i a l r e p o r t s a n d
t h e r e o r g a n i z a t i o n of t h e c e n t r a l a c c o u n t i n g a n d r e l a t e d p r o c e d u r e s
of d i s b u r s i n g a n d c o l l e c t i n g a g e n c i e s of t h e G o v e r n m e n t . T h e r e p o r t i n g I m p r o v e m e n t s put Into o p e r a t i o n In 1954 a r e only t h e f i r s t
p h a s e of t h e r e p o r t i n g p r o g r a j n , h o w e v e r , a n d m u c h r e m a i n s t o b e
d o n e In p e r f e c t i n g t h e r e p o r t i n g c h a n g e s a n d In c o o r d i n a t i n g a g e n c y T r e a s u r y a c c o u n t s . F u r t h e r p r o g r e s s In c e n t r a l r e p o r t i n g will d e p e n d l a r g e l y u p o n p r o g r e s s In t h e c e n t r a l a c c o u n t i n g p l a n .
The central accounting plan as currently formulated encompasses
t h e r e c e i p t s , e x p e n d i t u r e s , a n d c a s h o p e r a t i o n s of t h e G o v e r n m e n t .
I t c o n s i s t s of m a n y I n t e r r e l a t e d p a r t s , w h i c h , t a k e n t o g e t h e r , w i l l
r e s u l t I n a m a j o r r e v i s i o n of t h e a c c o u n t i n g s y s t e m . D u r i n g t h e
fiscal y e a r 1954, p r i n c i p l e s w e r e e s t a b l i s h e d and c e r t a i n details
w e r e w o r k e d out. T h e m a i n f e a t u r e s w e r e published In D e p a r t m e n t
C i r c u l a r N o . 9 4 5 , d a t e d M a y 1 1 , 1954 ( e x h i b i t 72). T h e following
s i m p l i f i c a t i o n s and p r o c e d u r e s w e r e e s t a b l i s h e d In 1954.
U n d e r t h i s c i r c u l a r a n d b y a u t h o r i t y of J o i n t R e s o l u t i o n N o . 4 ,
A c c o u n t i n g S y s t e m s M e m o r a n d u m N o . 34 w a s I s s u e d b y t h e G e n e r a l
A c c o u n t i n g O f f i c e t o e l i m i n a t e a s of J u l y 1, 1 9 5 4 , t h e r e q u i r e m e n t
t h a t d i s b u r s i n g o f f i c e r s r e n d e r a c c o u n t s s h o w i n g b a l a n c e s of I n d i v i d u a l a p p r o p r i a t i o n s and funds. T h i s r e s u l t e d In s u b s t a n t i a l l y
s i m p l i f y i n g . I n c e r t a i n a r e a s , p r o c e d u r e s c o n c e r n i n g t r a n s f e r s of
funds and r e l a t e d a c c o u n t i n g , and In e l i m i n a t i n g t h e s e t t l e m e n t
o f f i c e r s ' a c c o u n t s of t h e D e p a r t m e n t of D e f e n s e .
P r o c e d u r e s d e v e l o p e d I n 1 9 5 3 f o r t h e m a i n t e n a n c e of c h e c k i n g
a c c o u n t s by d i s b u r s i n g stations r a t h e r than by Incumbent d i s b u r s ing officers w e r e put Into o p e r a t i o n d u r i n g 1954. This r e d u c e s
t h e n u m b e r of a c c o u n t s r e q u i r e d t o b e m a i n t a i n e d b y t h e T r e a s u r e r
of t h e U n i t e d S t a t e s a n d a v o i d s t h e n e c e s s i t y of d e s t r o y i n g b l a n k
c h e c k s t o c k b e c a u s e of t u r n o v e r I n o f f i c e r s a t a g i v e n s t a t i o n .
( D e p a r t m e n t C i r c u l a r N o . 926,. d a t e d J u n e 30, 1953; s e e A n n u a l
R e p o r t for 1953, p . 307.)
In addition, o t h e r p r o c e d u r e s w e r e a d o p t e d for c u r r e n t a d j u s t m e n t I n t h e a c c o u n t s of d i s b u r s i n g o f f i c e r s of t h e a m o u n t s r e c e i v a b l e o r p a y a b l e d u e t o d i s c r e p a n c i e s I n a r n o u n t s of c h e c k s I s s u e d .
Steps w e r e t a k e n a l s o to e l i m i n a t e c e r t a i n checking a c c o u n t s
I n c l u d i n g 51 a c c o u n t s of t h e D i v i s i o n of D i s b u r s e m e n t f o r c e r t a i n
G o v e r n m e n t c o r p o r a t i o n s a n d b u s i n e s s - t y p e e n t e r p r i s e s ; 64 a c counts for the I n t e r n a l R e v e n u e S e r v i c e Incident to the t r a n s f e r
of d i s b u r s i n g a c t i v i t i e s f r o m D i s t r i c t D i r e c t o r s of I n t e r n a l R e v e n u e
t o t h e D i v i s i o n of D i s b u r s e m e n t , a n d 7 a c c o u n t s of t h e P o s t O f f i c e
D e p a r t m e n t . T h e a c t i v i t y In all t h e e l i m i n a t e d c h e c k i n g a c c o u n t s
w a s m e r g e d In o t h e r s .
A f u r t h e r s i m p l i f i c a t i o n was m a d e by r e q u i r i n g a g e n c i e s u n d e r
the c e n t r a l d i s b u r s i n g s y s t e m to deposit t h e i r collections for credit
t o t h e a c c o u n t of t h e T r e a s u r e r of t h e U n i t e d S t a t e s d i r e c t l y I n
ADMINISTRATIVE REPORTS
101
F e d e r a l d e p o s i t a r i e s r a t h e r t h a n t h r o u g h d i s b u r s i n g o f f i c e r s . This
new p r o c e d u r e was p r o v i d e d for In D e p a r t m e n t C i r c u l a r No. 937,
d a t e d J a n u a r y 18, 1954 (exhibit 73).
O t h e r G o v e r n m e n t a c c o u n t i n g and p r o c e d u r a l m a t t e r s
Accounting s y s t e m s and p r o c e d u r e s . - - W o r k I n t h e fleld of a c c o u n t ing s y s t e m s and p r o c e d u r e s continued d u r i -g the y e a r . T e c h n i c a l
a s s i s t a n c e and guidance to the v a r i o u s b u r e a u s and offices of the
T r e a s u r y D e p a r t m e n t r a n g e d f r o m the solution of s p e c i a l accounting
and r e p o r t i n g p r o b l e m s to m a j o r r e v i s i o n s In accounting s y s t e m s - all with a view to g r e a t e r efficiency, e c o n o m y , and u s e f u l n e s s of
accounting r e s u l t s . In addition, the B u r e a u p a r t i c i p a t e d a c t i v e l y
with the G e n e r a l Accounting Office and the B u r e a u of the Budget
In the G o v e r n m e n t - w i d e p r o g r a m to I m p r o v e accounting, r e p o r t i n g ,
and r e l a t e d f i s c a l p r o c e d u r e s u n d e r the Budget and Accounting
P r o c e d u r e s Act of 1950 (31 U.S.C. 6 6 - 6 6 c ) .
I n t e r n a l auditing In the T r e a s u r y D e p a r t m e n t . - - I n a c c o r d a n c e
with the r e g u l a t i o n s I s s u e d J u n e 24, 1953 ( D e p a r t m e n t C i r c u l a r
No. 924, Annual R e p o r t for 1953, p . 308), all T r e a s u r y b u r e a u s
had e s t a b l i s h e d I n t e r n a l audit units by the end of the f i s c a l y e a r .
The f i r s t r e p o r t c o n c e r n i n g the r e s u l t s of I n t e r n a l auditing In the
T r e a s u r y , which c o v e r e d the p e r i o d J u l y 1 t h r o u g h D e c e m b e r 3 1 ,
1953, was m a d e to the S e c r e t a r y of t h e T r e a s u r y on M a r c h 8, 1954.
The r e p o r t Indicated g e n e r a l l y s a t i s f a c t o r y p r o g r e s s In e s t a b l i s h i n g
an adequate audit s y s t e m for the D e p a r t m e n t .
C o n t r o l of foreign c u r r e n c i e s . - - M e a s u r e s to s t r e n g t h e n c o n t r o l
o v e r the u s e and a d m i n i s t r a t i o n of c e r t a i n foreign c u r r e n c i e s
a c q u i r e d by the G o v e r n m e n t without p u r c h a s e with d o l l a r s w e r e
t a k e n e a r l y In the f l s c a l y e a r . The U n i t e d S t a t e s a c q u i r e s s u b s t a n t i a l
a m o u n t s of foreign c u r r e n c i e s f r o m foreign g o v e r n m e n t s In c o n n e c t i o n with v a r i o u s e c o n o m i c , t e c h n i c a l a s s i s t a n c e , and m i l i t a r y
p r o g r a m s , and with r e s p e c t to a g r e e m e n t s for the s e t t l e m e n t of
debts ( l e n d - l e a s e , s u r p l u s p r o p e r t y , and r e p a r a t i o n s ) . Before
J u l y 1, 1953, executive d e p a r t m e n t s and a g e n c i e s g e n e r a l l y had
b e e n p e r m i t t e d In s u b s t a n t i v e l e g i s l a t i o n to u s e m o s t of t h e s e
c u r r e n c i e s without c h a r g e to t h e i r d o l l a r a p p r o p r i a t i o n s e i t h e r
a s a s u b s t i t u t e for o r as a s u p p l e m e n t to s u c h a p p r o p r i a t i o n s .
The act of July 15, 1952, S e c . 1415 (66 Stat. 662), p r o v i d e d t h a t
a f t e r J u n e 30, 1953, a g e n c i e s of the United S t a t e s could no l o n g e r
expend f o r e i g n c u r r e n c i e s belonging to the United S t a t e s except as
p r o v i d e d for annually In a p p r o p r i a t i o n a c t s . This l e g i s l a t i o n was
I m p l e m e n t e d by the act of August 7, 1953, S e c . 1313 (^7 S t a t . 438)
which r e q u i r e s e x e c u t i v e d e p a r t m e n t s and a g e n c i e s , with a few
e x c e p t i o n s , to r e i m b u r s e the T r e a s u r y In d o l l a r s for the foreign
c u r r e n c i e s they u s e . To c a r r y out the p r o v i s i o n s of the new law
the P r e s i d e n t I s s u e d E x e c u t i v e O r d e r No. 10488, dated S e p t e m b e r
23, 1953. This o r d e r p r o v i d e d for the I s s u a n c e of r e g u l a t i o n s by
the S e c r e t a r y of the T r e a s u r y g o v e r n i n g the p u r c h a s e , c u s t o d y ,
t r a n s f e r , o r s a l e of f o r e i g n exchange by the United S t a t e s .
A c c o r d i n g l y , T r e a s u r y r e g u l a t i o n s w e r e d r a f t e d In c o l l a b o r a t i o n
with the B u r e a u of the Budget, the G e n e r a l Accounting Office, and
d e p a r t m e n t s and a g e n c i e s a d m i n i s t e r i n g foreign p r o g r a m s and w e r e
I s s u e d on O c t o b e r 19, 1953, effective D e c e m b e r 1, 1953, as
D e p a r t m e n t C i r c u l a r No. 930. T h e s e r e g u l a t i o n s p r o v i d e d for
1 02
1954 REPORT OF THE SECRETARY OF THE TREASURY
t r a n s f e r of d e p a r t m e n t and agency foreign c u r r e n c y b a l a n c e s as
of N o v e m b e r 30, 1953, Into T r e a s u r y c u s t o d y and the flow of future
c o l l e c t i o n s t h r o u g h T r e a s u r y a c c o u n t s , and e s t a b l i s h e d r e q u i r e m e n t s with r e s p e c t to w i t h d r a w a l s f r o m T r e a s u r y a c c o u n t s , l i m i t a t i o n s on p u r c h a s e s and a m o u n t s of h o l d i n g s , the u s e of f o r e i g n
d e p o s i t a r i e s , and accounting for the c u r r e n c i e s (exhibit 74).
E x p e r i e n c e u n d e r the r e g u l a t i o n s h a s p r o v e d t h e i r e f f e c t i v e n e s s .
The T r e a s u r y knows for the f i r s t t i m e , f r o m official a c c o u n t s of
d i s b u r s i n g o f f i c e r s , the a m o u n t s of f o r e i g n c u r r e n c i e s a c q u i r e d
without p u r c h a s e for d o l l a r s and owned by the G o v e r n m e n t ; and
a l s o t h e i r d i s p o s i t i o n , both the a m o u n t s sold to G o v e r n m e n t
d e p a r t m e n t s and a g e n c i e s for d o l l a r s and the a m o u n t s r e q u i s i t i o n e d by d e p a r t m e n t s and a g e n c i e s p u r s u a n t to law without
r e i m b u r s e m e n t to the T r e a s u r y . The T r e a s u r y Is able to Identify
e x c e s s c u r r e n c i e s and I n i t i a t e action for t h e i r m a x i m u m u s e . F r o m
D e c e m b e r 1, 1953, t h r o u g h J u n e 30, 1954, t h e s e v e n m o n t h s o f t h e
f i s c a l y e a r 1954 d u r i n g which the T r e a s u r y had custody of all
f o r e i g n c u r r e n c i e s a c q u i r e d by the United S t a t e s without p u r c h a s e
for d o l l a r s , s a l e s of c u r r e n c i e s for d o l l a r s to d e p a r t m e n t s and
a g e n c i e s a m o u n t e d to the equivalent of $247 m i l l i o n . T h i s c o m p a r e d with foreign c u r r e n c i e s e q u i v a l e n t to $55 m i l l i o n sold for
d o l l a r s In the f i r s t five m o n t h s of the f i s c a l y e a r , b e f o r e t h e
T r e a s u r y a s s u m e d c u s t o d y . The r e p o r t s on f o r e i g n c u r r e n c i e s
c o m p l i e d s i n c e the T r e a s u r y D e p a r t m e n t took c o n t r o l of t h e
c u r r e n c i e s on D e c e m b e r 1, 1953, a r e shown In t a b l e s 113 and 114.
D e p a r t m e n t C i r c u l a r No. 799, d a t e d D e c e m b e r 27, 1946, p e r taining to f o r e i g n c u r r e n c i e s a r i s i n g f r o m s u r p l u s p r o p e r t y and
l e n d - l e a s e s e t t l e m e n t s , was r e v i s e d O c t o b e r 19, 1953 (exhibit 75),
to c o n f o r m to D e p a r t m e n t C i r c u l a r No. 930.
General Operations and Management Improvement
The o p e r a t i o n s and m a n a g e m e n t I m p r o v e m e n t s of t h e B u r e a u
d u r i n g the f i s c a l y e a r a r e s u m m a r i z e d as follows:
Federal depositary system
G o v e r n m e n t d e p o s i t a r i e s p r o v i d e the v a r i o u s d e p a r t m e n t s and
a g e n c i e s with c e r t a i n banking and financial s e r v i c e s o t h e r than
t h o s e p r o v i d e d by the Office of the T r e a s u r e r of the United States
and the Mint. In addition to the Office of the T r e a s u r e r of the
United S t a t e s and the 12 F e d e r a l R e s e r v e Banks and t h e i r b r a n c h e s ,
the d e p o s i t a r i e s c o n s i s t of m o r e than 11,000 c o m m e r c i a l banks
d e s i g n a t e d by the S e c r e t a r y of the T r e a s u r y . The s u p e r v i s i o n of
the d e p o s i t a r i e s , u n d e r the g e n e r a l d l r e c t l o n o f t h e F i s c a l A s s i s t a n t
S e c r e t a r y , Is e x e r c i s e d t h r o u g h the B u r e a u and Is a d m i n i s t e r e d
t h r o u g h D e p a r t m e n t r e g u l a t i o n s g o v e r n i n g the a u t h o r i t y , q u a l i f i c a t i o n s , and o t h e r r e q u i r e m e n t s a p p l i c a b l e to t h e d e p o s i t a r i e s . The
B u r e a u a l s o s u p e r v i s e s the p r o c e d u r e s for the d e p o s i t In d e p o s i t a r i e s for F e d e r a l t a x e s of c e r t a i n I n c o m e and e x c i s e t a x e s , and
withheld t a x e s c o l l e c t e d for o l d - a g e I n s u r a n c e and for r a i l r o a d
retirement.
In t h e i r r o l e as p r i n c i p a l f i s c a l a g e n t s of the Uriited S t a t e s
G o v e r n m e n t , e a c h of the F e d e r a l R e s e r v e Banks m a i n t a i n s an
o p e r a t i n g a c c o u n t In the n a m e of the T r e a s u r e r of the United
ADMINISTRATIVE REPORTS
103
S t a t e s . U l t i m a t e l y , n e a r l y all G o v e r n m e n t r e c e i p t s a r e c r e d i t e d
In t h e s e accounts and f r o m t h e m n e a r l y all p a y m e n t s a r e m a d e .
Before t a x e s r e c e i v e d by d e p o s i t a r i e s for F e d e r a l t a x e s and
p r o c e e d s from s a l e s (on o r i g i n a l I s s u e ) of public debt s e c u r i t i e s
go Into the F e d e r a l R e s e r v e Banks they flow t h r o u g h the " t a x and
l o a n " a c c o u n t s of t h e T r e a s u r y which a r e m a i n t a i n e d as d e m a n d
d e p o s i t s In the s p e c i a l d e p o s i t a r y banks throughout the c o u n t r y .
In effect, t h e b a l a n c e s In t h e s e a c c o u n t s t o g e t h e r c o n s t i t u t e t h e
g r e a t e r p a r t of the g e n e r a l fund of the T r e a s u r e r of the United
States.
In m a n a g i n g the c a s h p o s i t i o n of the T r e a s u r y , d e c i s i o n s m u s t
be m a d e on the amount and t i m i n g of the w i t h d r a w a l s of funds
n e e d e d for c u r r e n t G o v e r n m e n t e x p e n d i t u r e s . When the a m o u n t s
to be w i t h d r a w n have b e e n d e t e r m i n e d , the Office of the F i s c a l
A s s i s t a n t S e c r e t a r y notifies the F e d e r a l R e s e r v e Bank of the
a m o u n t s In t e r m s of p e r c e n t a g e s of b a l a n c e s In the t a x and loan
a c c o u n t s . The F e d e r a l R e s e r v e Bank In t u r n notifies the d e p o s i t a r y
b a n k s and c r e d i t s the amounts r e m i t t e d to the B a n k ' s g e n e r a l
account with the T r e a s u r e r of the United S t a t e s . ( T h e s e c a l l s
u s u a l l y a r e rnade s e m l w e e k l y on the d e p o s i t a r i e s with b a l a n c e s
of $ 1 5 0 , 0 0 0 o r m o r e , r e f e r r e d to as g r o u p " B b a n k s , " and biweekly
o r m o n t h l y on t h o s e with s m a l l e r b a l a n c e s , known as " A b a n k s . " )
This s y s t e m of g r a d u a l l y t r a n s f e r r i n g funds f r o m the s e c o n d a r y
a c c o u n t s In the d e p o s i t a r y banks to the F e d e r a l R e s e r v e Banks and
t h e n c e Into c i r c u l a t i o n as G o v e r n m e n t e x p e n d i t u r e s p r e c l u d e s t h e
a c c u m u l a t i o n of Idle funds In the R e s e r v e B a n k s , k e e p s the funds
In t h e l o c a l c o m m u n i t i e s of t h e i r o r i g i n as long as p o s s i b l e , and
m i n i m i z e s o r p r e v e n t s t h e d i s t u r b a n c e to bank r e s e r v e s and t h c
m o n e y and s e c u r i t y m a r k e t s which o t h e r w i s e would o c c u r if the
v a s t funds w e r e w i t h d r a w n and d e p o s i t e d In the R e s e r v e Banks
Immediately.
A s t a t e m e n t by the S e c r e t a r y of the T r e a s u r y on the keeping of
G o v e r n m e n t d e p o s i t s In banks which was m a d e b e f o r e the J o i n t
C o m m i t t e e on the E c o n o m i c R e p o r t on F e b r u a r y 2, 1934, a p p e a r s
as exhibit 56.
A significant change In p r o c e d u r e took p l a c e In the f i s c a l y e a r
1954 which affected T r e a s u r y d e p o s i t a r i e s . This p r o v i d e d for
e l i m i n a t i o n of the c e n t r a l p r o c e s s i n g of dally t r a n s c r i p t s of 600
g e n e r a l d e p o s i t a r i e s and s i m p l i f i e d r e l a t e d o p e r a t i o n s In the
Office of the T r e a s u r e r of the U n i t e d S t a t e s . The new p r o c e d u r e ,
p r o v i d e d for In the Seventh A m e n d m e n t , dated A p r i l 26, 1954, to
Diepartment C i r c u l a r No. 176, d a t e d D e c e m b e r 2 1 , 1945, as a m e n d e d
(exhibit 76) and F i s c a l M e m o r a n d u m No. 14, dated A p r i l 26, 1954,
was s c h e d u l e d to be In full o p e r a t i o n by t h e end of S e p t e m b e r 1954.
Disbursement operations
T h r o u g h Its D i v i s i o n of D i s b u r s e m e n t , the B u r e a u m a k e s p a y m e n t
of obligations and F e d e r a l benefits for all d e p a r t m e n t s and a g e n c i e s
of the e x e c u t i v e b r a n c h o f the G o v e r n m e n t except for the D e p a r t m e n t
of D e f e n s e , the P o s t Office D e p a r t m e n t , the U n i t e d S t a t e s m a r s h a l s ,
the P a n a m a C a n a l , and c e r t a i n c o r p o r a t i o n s . D i s b u r s e m e n t s a r e
m a d e f r o m a p p r o p r i a t e d , t r u s t , and s p e c i a l d e p o s i t funds; s u b s t i t u t e
c h e c k s a r e I s s u e d as r e p l a c e m e n t s for c h e c k s l o s t , d e s t r o y e d ,
s t o l e n , o r m u t i l a t e d a f t e r I s s u a n c e by d i s b u r s i n g officers o f t h e
104
1954 REPORT OF THE SECRETARY OF THE TREASURY
Government; and United States savings bonds a r e Issued to F e d e r a l
employees under the payroll savings plan. The Division through the
u s e of I t s m e c h a n i c a l e q u i p m e n t a n d f a c i l i t i e s w h i c h p r o d u c e c h e c k s
a l s o p r e p a r e s p a y r o l l s , v o u c h e r s , and r e c o r d c a r d s for the a g e n c i e s
for which p a y m e n t s a r e m a d e . D u r i n g f i s c a l 1954, c o l l e c t i o n s by
the civilian d e p a r t m e n t s and agencies w e r e r e c e i v e d , deposited,
and accounted for, which under the d i r e c t deposit p r o c e d u r e
m e n t i o n e d u n d e r c e n t r a l accounting and r e p o r t i n g will In the future
b e d e p o s i t e d d i r e c t l y In d e p o s i t a r i e s by t h e s e d e p a r t m e n t s a n d
agencies.
T h e s e s e r v i c e s w e r e p r o v i d e d by the Division during the fiscal
y e a r t h r o u g h 22 r e g i o n a l d i s b u r s i n g o f f i c e s I n t h e c o n t i n e n t a l U n i t e d
S t a t e s ; and offices In J u n e a u , A l a s k a ; Honolulu, Hawaii; San J u a n ,
P u e r t o Rico; and M a n i l a , P . I . D i s b u r s i n g and r e l a t e d functions
w e r e p e r f o r m e d f o r o v e r 1,900 c e n t r a l a n d f l e l d o f f i c e s of m o r e
than 40 G o v e r n m e n t d e p a r t m e n t s , a g e n c i e s , and c o r p o r a t i o n s .
M a t e r i a l s a v i n g s In o p e r a t i n g c o s t s w e r e m a d e t h r o u g h f u r t h e r
I m p r o v e m e n t I n m e c h a n i c a l p r o c e s s e s a n d s t r e a L m l l n l n g of p r o c e d u r e s , c a r r i e d out u n d e r the m a n a g e m e n t I m p r o v e m e n t p r o g r a m .
T h e n u m b e r of p a y m e n t s , c o l l e c t i o n s , a n d s a v i n g s b o n d s I s s u e d
b y t h e D i v i s i o n of D i s b u r s e m e n t d u r i n g t h e l a s t t w o f i s c a l y e a r s
w e r e as follows:
•
Number
Classification
1953
Payments
Social security
Veterans ' benefits
Veterans National service life insurance dividend
....•
Other
Collections
Savings bonds issued to Federal employees under payroll savings plan
Total
...i
1954
57,895,321
63,963,834
3,877,925
33,197,128
31,437,362
6,658,509
2,570,551
68 666 641
65,294,935
4 868 977
32,491 827
27 866 026
5 276 825
2,512,771
199,600,630
206,978,002
G o v e r n m e n t l o s s e s In s h i p m e n t c l a i m s
Allied with the o p e r a t i o n s of G o v e r n m e n t d e p o s i t a r i e s In p r o viding G o v e r n m e n t financial s e r v i c e s Is the s e l f - I n s u r a n c e plan
w h e r e b y the G o v e r n m e n t a s s i n n e s the r i s k on Its s h i p m e n t s of
v a l u a b l e s . Including m o n e y , bullion, and s e c u r i t i e s , while I n t r a n s i t
b e t w e e n the T r e a s u r y , o r b e t w e e n officials of the G o v e r n m e n t
d e p a r t m e n t s and a g e n c i e s , and d e p o s i t a r i e s . The plan, effective
J u l y 1, 1937, which was e s t a b l i s h e d by the p r o v i s i o n s o f t h e
G o v e r n m e n t L o s s e s In Shipment Act (5 U.S,.C. 134-134h), and
which supplanted c o n t r a c t s with p r i v a t e I n s u r a n c e c o m p a n i e s .
Is a d m i n i s t e r e d by the T r e a s u r y D e p a r t m e n t . The B u r e a u of
Accounts Is r e s p o n s i b l e for p a y m e n t of c l a i m s u n d e r the a c t ,
r e c e i v e s from G o v e r n m e n t d e p a r t m e n t s and a g e n c i e s c o n s o l i d a t e d
r e p o r t s of t h e i r s h i p m e n t s m a d e u n d e r c o v e r a g e of the act, and
p r e p a r e s s t a t i s t i c a l a n a l y s e s of the o p e r a t i o n of the p l a n .
S h i p m e n t s r e p o r t e d u n d e r the act In f i s c a l 1954, the l a r g e s t on
r e c o r d , w e r e valued at $561.2 billion as c o m p a r e d with t h o s e
valued at $495.2 billion In 1953. During 1954, c l a i m s amounting
to $32,514 w e r e paid f r o m the r e v o l v i n g fund e s t a b l i s h e d u n d e r
ADMINISTRATIVE REPORTS
105
the act. R e c o v e r i e s a m o u n t e d to $8,633 and w e r e deposited to the
c r e d i t of t h e f u n d , m a k i n g a n e t e x p e n d i t u r e of $ 2 3 , 8 8 0 f o r l o s s e s .
The e s t i m a t e d I n s u r a n c e p r e m i u m savings a c c r u e d to the Governm e n t f r o m t h e d a t e of t h e I n c e p t i o n of t h e a c t b a s e d o n r a t e s of
private I n s u r a n c e
c o m p a n i e s In effect at t h e t i m e , t o t a l e d
$ 4 8 , 4 0 5 , 0 0 0 t h r o u g h J u n e 30, 1954.
Surety companies
U n d e r t h e a c t a p p r o v e d J u l y 3 0 , 1947 (6 U . S . C . 8 ) , t h e S e c r e t a r y
of t h e T r e a s u r y I s s u e s c e r t i f i c a t e s of a u t h o r i t y t o c o r p o r a t e s u r e t y
c o m p a n i e s to qualify t h e m as s u r e t i e s on bonds and o t h e r obligations
I n f a v o r of t h e U n i t e d S t a t e s . A l i s t o f t h e c o m p a n i e s w h i c h a r e
a c c e p t a b l e a s s u r e t i e s I s p u b l i s h e d a n n u a l l y a s of M a y 1 b y t h e
T r e a s u r y D e p a r t m e n t . T h e B u r e a u of A c c o u n t s e x a m i n e s t h e
a p p l i c a t i o n s of c o m p a n i e s r e q u e s t i n g a u t h o r i t y t o w r i t e s u c h b o n d s
a n d c u r r e n t l y r e v i e w s t h e q u a l i f i c a t i o n s of t h e c o m p a n i e s s o
a u t h o r i z e d . It a l s o e x a m i n e s p r a c t i c a l l y a l l s u r e t y b o n d s I n f a v o r
of t h e U n i t e d S t a t e s e x c e p t P o s t O f f i c e D e p a r t m e n t a n d D e p a r t m e n t
of A r m y b o n d s , a n d h o l d s I n c u s t o d y a l a r g e p o r t i o n of t h e b o n d s
e x a m i n e d w i t h t h e e x c e p t i o n of c o n t r a c t b o n d s .
A s of J u n e 3 0 , 1 9 5 4 , t h e r e w e r e 148 c o m p a n i e s h o l d i n g c e r t i f i c a t e s of a u t h o r i t y q u a l i f y i n g t h e n i a s s o l e s u r e t i e s o n r e c o g n i z a n c e s ,
s t i p u l a t i o n s , b o n d s , and u n d e r t a k i n g s p e r m i t t e d o r r e q u i r e d by the
l a w s of t h e U n i t e d S t a t e s , t o b e g i v e n w i t h o n e o r m o r e s u r e t i e s .
I n a d d i t i o n t h e r e w e r e 10 c o m p a n i e s h o l d i n g c e r t i f i c a t e s of a u t h o r i t y
to a c t as r e i n s u r e r s only on bonds In f a v o r o f t h e United S t a t e s .
D u r i n g t h e y e a r c e r t i f i c a t e s of a u t h o r i t y t o a c t a s s o l e s u r e t i e s
w e r e I s s u e d t o s e v e n n e w c o m p a n i e s a n d t h e a u t h o r i t y of t h r e e
was revoked. A certificate was I s s u e d to one new company as an
a c c e p t a b l e r e i n s u r e r only u n d e r D e p a r t m e n t C i r c u l a r No. 297,
a s a m e n d e d , a n d t h e a u t h o r i t y of o n e r e i n s u r e r w a s e x t e n d e d t o t h a t
of a s o l e s u r e t y .
During the y e a r 59,647 bonds and consent a g r e e m e n t s e x a m i n e d
by the T r e a s u r y w e r e a p p r o v e d as to c o r p o r a t e s u r e t y .
I n v e s t m e n t s of t r u s t a n d o t h e r f u n d s
T h e S e c r e t a r y of t h e T r e a s u r y I s r e s p o n s i b l e , u n d e r v a r i o u s
p r o v i s i o n s of l a w , f o r t h e I n y e s t m e n t of c e r t a i n - t r u s t a n d o t h e r
f u n d s . T h e B u r e a u of A c c o u n t s h a n d l e s t h e I n v e s t m e n t a c c o u n t s of
t h e G o v e r n m e n t a n d d i r e c t s t h e c u s t o d y of I n v e s t m e n t s a n d s e c u r i t i e s
h e l d b y t h e T r e a s u r e r of t h e U n i t e d S t a t e s a n d b y F e d e r a l R e s e r v e
B a n k s f o r w h i c h t h e S e c r e t a r y of t h e T r e a s u r y I s r e s p o n s i b l e . A
s u m m a r y of t h e v a r i o u s I n v e s t m e n t a c c o u n t s f o r w h i c h t h e S e c r e t a r y
Is r e s p o n s i b l e Is shown In t a b l e 5 1 .
R e c e i p t s of I n t e r e s t c h a r g e d o n F e d e r a l R e s e r v e n o t e s
S i n c e 1947 t h e F e d e r a l R e s e r v e S y s t e m h a s m a d e a n n u a l p a y m e n t s
of a p p r o x i m a t e l y 9 0 p e r c e n t of t h e e a r n i n g s o f t h e F e d e r a l R e s e r v e
B a n k s t o t h e T r e a s u r y . O n A p r i l 2 4 , 1 9 4 7 , t h e B o a r d of G o v e r n o r s
of t h e F e d e r a l R e s e r v e S y s t e m s t a t e d I n p a r t t h a t a s a r e s u l t of
o p e r a t i o n s e s s e n t i a l to G o v e r n m e n t financing during and after the
w a r a n d o p e r a t i o n s r e q u i r e d b y t h e n e e d s of t h e p u b l i c f o r c r e d i t
a n d c u r r e n c y , n e t e a r n i n g s o f t h e 12 F e d e r a l R e s e r v e B a n k s w e r e
at r e l a t i v e l y high l e v e l s , e s t i m a t e d to a g g r e g a t e m o r e t h a n $ 6 0
106
1954 REPORT OF THE SECRETARY OF THE TREASURY
m i l l i o n for 1947. In view of t h e s e facts and the fact that at the end
of 1946 the s u r p l u s of e a c h Bank was equal to Its s u b s c r i b e d capital,,
the B o a r d adopted a p r o c e d u r e of e s t a b l i s h i n g q u a r t e r l y r a t e s of
I n t e r e s t on the o u t s t a n d i n g n o t e s of e a c h F e d e r a l R e s e r v e Bank,
so t h a t after p a y m e n t of e x p e n s e s and d i v i d e n d s , n i n e - t e n t h s of the
r e m a i n i n g e a r n i n g s a r e paid Into the T r e a s u r y . The p a y m e n t s have
b e e n m a d e u n d e r Section 16 of the F e d e r a l R e s e r v e Act (12 U.S.C.
414) which a u t h o r i z e s the B o a r d of G o v e r n o r s of the F e d e r a l
R e s e r v e S y s t e m tp c h a r g e I n t e r e s t on the amount of o u t s t a n d i n g
F e d e r a l R e s e r v e n o t e s which a r e In e x c e s s of the amount of the
gold c e r t i f i c a t e s h e l d a g a i n s t the n o t e s as c o l l a t e r a l .
In 1954 the a m o u n t d e p o s i t e d was $ 3 4 0 , 7 8 6 , 0 2 2 , c o m p a r e d with a
d e p o s i t of $297,715,406 In 1953. E x c e p t In 1951 the a m o u n t s have
I n c r e a s e d e a c h y e a r , as shown for 1952 a n d t h e e a r l i e r y e a r s In the
1952 Annual R e p o r t , page 555. In the eight y e a r s the d e p o s i t s have
aggregated $1,598,935,213.
Donations and c o n t r i b u t i o n s
D u r i n g the f i s c a l y e a r 1954, the T r e a s u r y D e p a r t m e n t d e p o s i t e d
In the g e n e r a l fund donations a m o u n t i n g to $ 106,598 and " C o n s c i e n c e fund" c o n t r i b u t i o n s amounting to $ 5 3 , 4 2 9 . A conditional
donation of $27,422 to the L i b r a r y of C o n g r e s s was d e p o s i t e d In
t h e L i b r a r y of C o n g r e s s T r u s t F u n d , P e r m a n e n t Loan Account.
Withholding of S t a t e I n c o m e t a x e s , a g r e e m e n t s
A g r e e m e n t s w e r e m a d e d u r i n g the y e a r with the States of D e l a w a r e , A r i z o n a , Kentucky, and C o l o r a d o t o withhold State Income
t a x e s f r o m the c o m p e n s a t i o n of F e d e r a l e m p l o y e e s . The a g r e e m e n t s w e r e m a d e u n d e r the act of J u l y 17, 1952 (5 U.S.C. 84b, 84c)
p r o v i d i n g for withholding of State and T e r r i t o r i a l I n c o m e t a x e s
f r o m s u c h c o m p e n s a t i o n . (See D e p a r t m e n t C i r c u l a r No. 918, Annual
R e p o r t for 1953, p . 310.) E a r l i e r , the S t a t e s of V e r m o n t and O r e gon, and t h e T e r r i t o r i e s of Hawaii and A l a s k a had qualified.
The G o v e r n m e n t A c t u a r y
A c t u a r i a l and a l l i e d t e c h n i c a l and m a t h e m a t i c a l a n a l y s e s a r e
p r e p a r e d by the G o v e r n m e n t A c t u a r y , Including a c t u a r i a l e s t i m a t e s
for F e d e r a l t r u s t funds as r e q u i r e d by s t a t u t e . The S e c r e t a r y of the
T r e a s u r y Is c h a r g e d with the duty of handling the I n v e s t m e n t s and
o t h e r o p e r a t i o n s of m o s t of t h e s e funds.
D u r i n g the f i s c a l y e a r 1954, for the u s e of the C o m m i t t e e on
R e t i r e m e n t P o l i c y for F e d e r a l P e r s o n n e l In Its study of F e d e r a l
r e t i r e m e n t s y s t e m s , a s c h e d u l e of e s t i m a t e d r e c e i p t s , e x p e n d i t u r e s ,
and fund b a l a n c e s of the Civil S e r v i c e R e t i r e m e n t S y s t e m was
p r e p a r e d . In addition for t h i s C o m m i t t e e , v a l u a t i o n s w e r e p r e p a r e d
of the five r e t i r e m e n t s y s t e m s c o v e r i n g r e s p e c t i v e l y the F o r e i g n
S e r v i c e , the F e d e r a l J u d i c i a r y , the J u d i c i a r y of T e r r i t o r i e s , the
P u b l i c School T e a c h e r s of the D i s t r i c t of C o l u m b i a , and the
P o l i c e m e n and F i r e m e n of the D i s t r i c t of C o l u m b i a .
F o r the S e c r e t a r y of t h e T r e a s u r y , t h e r e w e r e p r e p a r e d d u r i n g
1954 the r e g u l a r e s t i m a t e s of the annual a p p r o p r i a t i o n s r e q u i r e d
to be m a d e to the foreign s e r v i c e r e t i r e m e n t and d i s a b i l i t y fund
and to the D i s t r i c t of C o l u m b i a t e a c h e r s ' r e t i r e m e n t fund.
ADMINISTRATIVE REPORTS
107
Management Improvement
M a n a g e m e n t savings of the B u r eau In 1954, e s t i m a t e d at $ 9 0 4 , 0 0 0 ,
w e r e c l o s e to t h e t o t a l In 1953. This a m o u n t , a p p r o x i m a t e l y 5
p e r c e n t of a v a i l a b l e funds, was a v e r y I m p o r t a n t f a c t o r In enabling
t h e B u r e a u to c a r r y on Its r e s o o n s l b l l l t l e s within the l i m i t a t i o n s of
the funds a p p r o p r i a t e d for a d m i n i s t r a t i v e e x p e n s e s .
The p r i n c i p a l s a v i n g s w e r e m a d e In m e c h a n i c a l p r o c e s s e s and
m a c h i n e u t i l i z a t i o n . S u b s t a n t i a l savings w e r e r e a l i z e d a l s o t h r o u g h
b e t t e r u t i l i z a t i o n of p e r s o n n e l , c h a n g e s In o r g a n i z a t i o n , and I m p r o v e d a c c o u n t i n g , f i n a n c i a l r e p o r t i n g , and p a y m e n t p r o c e d u r e s .
T h e r e was a f u r t h e r r e d u c t i o n d u r i n g the y e a r of a p p r o x i m a t e l y
one-half cent In the unit c o s t of I s s u i n g c h e c k s . This was a c c o m p l i s h e d m a i n l y t h r o u g h the u s e of c e r t a i n new equipment which
Is f e a s i b l e only w h e r e l a r g e v o l u m e Is c o n c e n t r a t e d at one point.
A p p l i c a t i o n of e l e c t r o n i c equipment to c h e c k - w r i t i n g and r e c o n c i l i a t i o n of paid cliecks a r e being s t u d i e d .
The Incentive a w a r d s p r o g r a m , Including c a s h and efficiency
a w a r d s , continued p r o d u c t i v e , with e s t i m a t e d annual savings of
$ 2 7 , 7 0 0 . Of the t o t a l of 265 s u g g e s t i o n s s u b m i t t e d u n d e r the c a s h
a w a r d s p r o g r a m , 165 w e r e r e j e c t e d o r w i t h d r a w n , and 98 w e r e
adopted on which a w a r d s a g g r e g a t i n g $ 1 , 5 4 0 w e r e a p p r o v e d . T h e r e
w e r e a l s o 4 T i t l e X efficiency a w a r d s Involving 10 e m p l o y e e s ,
9 s u p e r i o r a c c o m p l i s h m e n t a w a r d s , 4 m e r i t o r i o u s civilian s e r v i c e
a w a r d s , and one e x c e p t i o n a l civilian s e r v i c e honor a w a r d .
A p r o g r a m of s u p e r v i s o r y d e v e l o p m e n t was r e a c t i v a t e d d u r i n g
the y e a r to e m p h a s i z e r e s p o n s i b i l i t i e s of s u p e r v i s o r s with r e s p e c t
to e m p l o y e e r e l a t i o n s and the efficiency of o p e r a t i o n s , and to t r a i n
t h e m In b e t t e r n i a n a g e m e n t p r a c t i c e s .
The B u r e a u ' s a c t i v i t i e s a r e Included In an o r g a n i z a t i o n and
m a n a g e m e n t s u r v e y of the F i s c a l S e r v i c e to be conducted u n d e r
a c o n t r a c t a w a r d e d J u n e 24, 1954, to a m a n a g e m e n t e n g i n e e r i n g
firm.
Treasury Loans, Capital Subscriptions, Interest, and Dividends
Among the duties of the B u r e a u of Accounts a r e the d e v e l o p m e n t
of a g r e e m e n t s r e l a t i n g to loans m a d e to G o v e r n m e n t c o r p o r a t i o n s
and o t h e r a g e n c i e s which a r e a u t h o r i z e d to b o r r o w f r o m the
T r e a s u r y , and the m a i n t a i n i n g of the r e c o r d s r e l a t i n g to the l o a n s ,
t h e c a p i t a l s u b s c r i p t i o n a c c o u n t s , and I n t e r e s t and d i v i d e n d s .
Commodity Credit Corporation
Under the a c t of M a r c h 8, 1938, as a m e n d e d (15 U.S.C. 7 1 3 a - l ) ,
the S e c r e t a r y of the T r e a s u r y Is r e q u i r e d to m a k e an annual
a p p r a i s a l as of J u n e 30 of the a s s e t s and l i a b i l i t i e s of the C o m m o d i t y C r e d i t C o r p o r a t i o n to d e t e r m i n e Its net w o r t h . In the event
that s u c h a p p r a i s a l s h a l l e s t a b l i s h that the net w o r t h Is l e s s than
$ 1 0 0 , 0 0 0 , 0 0 0 , t h e S e c r e t a r y of t h e T r e a s u r y Is to s u b m i t an
e s t i m a t e and r e c o m m e n d that the C o n g r e s s a p p r o p r i a t e the funds
n e c e s s a r y to r e s t o r e the c a p i t a l I m p a i r m e n t . In the event that any
a p p r a i s a l s h a l l e s t a b l i s h t h a t t h e net w o r t h Is In e x c e s s of
$ 1 0 0 , 0 0 0 , 0 0 0 , s u c h e x c e s s s h a l l be d e p o s i t e d by the C o r p o r a t i o n
In the T r e a s u r y as m i s c e l l a n e o u s r e c e i p t s . The act of M a r c h 20,
1 08
1954 REPORT OF THE SECRETARY OF THE TREASURY
1 9 5 4 , ( 6 8 S t a t . 30) a m e n d i n g t h e a c t of M a r c h 8, 1 9 3 8 , c h a n g e d t h e
a p p r a i s a l b a s i s f r o m t h e l o w e r of c o s t o r m a r k e t f o r t h e m o n t h of
J u n e to a c o s t b a s i s beginning with the f i s c a l y e a r ending J u n e 30,
1 9 5 4 . T h e a c t a l s o p r o v i d e d t h a t r e s t o r a t i o n of c a p i t a l f o r l o s s e s
I n c u r r e d s h a l l b e b y a p p r o p r i a t i o n I n s t e a d of n o t e c a n c e l l a t i o n s .
T h e G o v e r n m e n t C o r p o r a t i o n C o n t r o l A c t (31 U . S . C . 851) r e q u i r e s
t h e C o m p t r o l l e r G e n e r a l t o f u r n i s h a c o p y of t h e a n n u a l a u d i t
r e p o r t t o t h e S e c r e t a r y of t h e T r e a s u r y , a n d It I s t h e p o l i c y of t h e
S e c r e t a r y In a p p r a i s i n g t h e a s s e t s and l i a b i l i t i e s o f t h e C o r p o r a t i o n
to give c o n s i d e r a t i o n to the C o m p t r o l l e r G e n e r a l ' s findings.
A s t a t e m e n t s h o w i n g r e s t o r a t i o n of c a p i t a l I m p a i r m e n t b y a p p r o priations
o r b y c a n c e l l a t i o n of o b l i g a t i o n s of t h e C o r p o r a t i o n
c o v e r m g those y e a r s for which the a p p r a i s a l d e t e r m i n e d that the
n e t w o r t h of t h e C o r p o r a t i o n w a s l e s s t h a n $ 1 0 0 , 0 0 0 , 0 0 0 , t o g e t h e r
w i t h t h e a p p r a i s a l d a t e s a n d a m o u n t s of d e p o s i t s I n t h e T r e a s u r y
for those y e a r s when the a p p r a i s a l established that the net worth
w a s I n e x c e s s of $ 1 0 0 , 0 0 0 , 0 0 0 , a p p e a r s I n t a b l e 8 0 .
T h e l i a b i l i t i e s a n d c a p i t a l of t h e " C o r p o r a t i o n o n J u n e 3 0 , 1 9 5 3 ,
e x c e e d e d t h e v a l u e of a s s e t s a s d e t e r f n l n e d b y t h e S e c r e t a r y of t h e
T r e a s u r y b y $ 5 6 3 , 5 8 9 , 6 6 7 . Of t h i s a m o u n t t h e S e c r e t a r y r e s t o r e d
$ 5 5 0 , 1 5 1 , 8 4 8 , t h e a m o u n t s t i p u l a t e d by P u b l i c L a w 295, 83d
C o n g r e s s , a p p r o v e d F e b r u a r y 12, 1954 (68 S t a t . 14), by c a n c e l i n g
n o t e s I s s u e d by the C o r p o r a t i o n to the S e c r e t a r y , m a k i n g the net
c h a r g e a g a i n s t t h e T r e a s u r y f o r I m p a i r m e n t of c a p i t a l f r o m I n c e p t i o n of t h e C o r p o r a t i o n , $ 3 , 1 4 1 , 2 7 6 , 6 7 1 . I n f i s c a l 1 9 5 4 t h e
Corporation
paid
t o t h e T r e a s u r y I n t e r e s t I n t h e a m o u n t of
$ 2 , 5 0 0 , 0 0 0 on Its c a p i t a l s t o c k o u t s t a n d i n g and I n t e r e s t on b o r r o w i n g s f r o m t h e T r e a s u r y I n t h e a m o u n t of $ 8 8 , 3 4 5 , 5 6 6 .
The act a l s o d i r e c t e d the S e c r e t a r y to c a n c e l the C o r p o r a t i o n ' s
n o t e s I n t h e a m o u n t s of $ 1 2 9 , 5 5 3 , 7 9 5 a n d $ 2 , 0 6 4 , 0 6 0 , r e s p e c t i v e l y ,
to c o v e r t h e net c o s t d u r i n g f i s c a l 1953 u n d e r the I n t e r n a t i o n a i
W h e a t A g r e e m e n t A c t of 1 9 4 9 (7 U . S . C . 1 6 4 1 - 1 6 4 2 ) a n d f o r f u n d s
t r a n s f e r r e d a n d e x p e n s e s I n c u r r e d f o r , " E r a d i c a t i o n of f o o t - a n d m o u t h a h d o t h e r c o n t a g i o u s d i s e a s e s of a n i m a l s a n d p o u l t r y " p u r s u a n t t o a u t h o r i t y g r a n t e d I n t h e D e p a r t m e n t of A g r i c u l t u r e
A p p r o p r i a t i o n A c t , 1953 (66 S t a t . 354).
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 , national defense, w a r and
reconversion activities
I n a c c o r d a n c e w i t h t h e a c t of J u n e 3 0 , 1 9 4 8 ( 6 2 S t a t . 1 1 8 7 ) , t h e
C o r p o r a t i o n In 1954 d e p o s i t e d $ 1 8 4 , 9 2 1 , 3 2 1 in t h e T r e a s u r y a s
miscellaneous receipts. This deposit represented cash recoveries,
less related expenses made during the fiscal year from the Corpor a t i o n ' s national defense, w a r , and r e c o n v e r s i o n activities. T h e s e
activities r e l a t e d to the synthetic r u b b e r , tin, and abaca p r o g r a m s ,
a n d l i q u i d a t i o n p r i n c i p a l l y of a c t i v i t i e s r e l a t i n g t o r e n t a l a n d d i s p o s a l of W o r l d W a r II d e f e n s e p l a n t s a n d f a c i l i t i e s , t h e s e t t l e m e n t
of c l a i m s , a n d c o l l e c t i o n of r e c e i v a b l e s . T h e C o r p o r a t i o n a l s o
p a i d t o the T r e a s u r y In 1954 I n t e r e s t on Its b o r r o w i n g s f r o m t h e
T r e a s u r y I n t h e a m o u n t of $ 4 , 1 6 7 , 8 3 3 .
A s t a t e m e n t showing all c a n c e l l a t i o n s and r e c o v e r i e s by the
T r e a s u r y In c o n n e c t i o n with 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
n o t e s Is s h o w n In t a b l e 8 1 .
ADMINISTRATIVE REPORTS
109
Refugee Relief Act, regulations
U n d e r t h e R e f u g e e R e l i e f A c t of 1 9 5 3 , a p p r o v e d A u g u s t 7, 1 9 5 3 ,
S e c . 16 ( 5 0 U . S . C . A p p . 1 9 7 1 n , S u p p . I ) , t h e S e c r e t a r y o f t h e
T r e a s u r y was a u t h o r i z e d and d i r e c t e d to m a k e loans not to e x c e e d
$ 5 , 0 0 0 , 0 0 0 In t h e a g g r e g a t e to p u b l i c o r p r i v a t e a g e n c i e s o f t h e
U n i t e d S t a t e s t o f i n a n c e t h e t r a n s p o r t a t i o n bf c e r t a i n p e r s o n s r e c e i v i n g I m m i g r a n t v i s a s u n d e r t h e a c t f r o m p o r t s of e n t r y t o
p l a c e s of t h e i r s e t t l e m e n t I n t h e U n i t e d S t a t e s . R e g u l a t i o n s w e r e
I s s u e d I n D e p a r t m e n t C i r c u l a r N o . 9 3 2 , d a t e d D e c e m b e r 1, 1 9 5 3
(exhibit 77), and r e l a t e d o p e r a t i n g p r o c e d u r e s w e r e developed.
Internationai Obligations
D u r i n g t h e y e a r , t h e B u r e a u of A c c o u n t s c o n t i n u e d t o d i s c h a r g e
I t s d u t i e s I n c o n n e c t i o n w i t h c e r t a i n T r e a s u r y r e s p o n s i b i l i t i e s In
r e s p e c t to I n t e r n a t i o n a l obligations. The following p a r a g r a p h s
r e p o r t t h e p a y m e n t a n d s t a t u s of l o a n s , t h e p a y m e n t of v a r i o u s
c l a i m s , the accounting for Indebtedness a r i s i n g from World W a r s
I and II, and s o m e r e l a t e d m a t t e r s .
World War I Indebtedness
A s of J u l y 1, 1 9 5 4 , W o r l d W a r I I n d e b t e d n e s s of f o r e i g n g o v e r n m e n t s t o t h e U n i t e d S t a t e s , e x c l u d i n g t h e a m o u n t of I n d e b t e d n e s s of
G e r m a n y , a m o u n t e d t o $ 1 7 . 2 b i l l i o n , $ 1 1 . 4 b i l l i o n o n a c c o u n t of
p r i n c i p a l , a n d $ 5 . 9 b i l l i o n o n a c c o u n t of I n t e r e s t .
U n d e r t h e f u n d i n g a g r e e m e n t of M a y 1, 1 9 2 3 , a n d t h e m o r a t o r i u m
a g r e e m e n t s of M a y 1, 1 9 4 1 , a n d O c t o b e r 1 4 , 1 9 4 3 , t h e T r e a s u r y I n
f i s c a l 1 9 5 4 r e c e i v e d f r o m F i n l a n d $ 3 9 6 , 1 9 9 . 3 6 I n p a y m e n t of I t s
I n d e b t e d n e s s . I n a c c o r d a n c e w i t h t h e p r o v i s i o n s of t h e a c t o f
A u g u s t 2 4 , 1949 ( 2 0 U . S . C . 2 2 2 ) , t h i s a m o u n t w a s p l a c e d I n a d e p o s i t
f u n d a c c o u n t a n d w a s r n a d e a v a i l a b l e t o t h e D e p a r t m e n t of S t a t e f o r
f i n a n c i n g e d u c a t i o n a l and s c i e n t i f i c s t u d i e s In F i n l a n d and t h e
United States.
T a b l e s 115 a n d 116 s h o w t h e s t a t u s of W o r l d W a r I I n d e b t e d n e s s .
Mixed C l a i m s C o m m i s s i o n , United States and G e r m a n y . - - O n
F e b r u a r y 2 7 , 1 9 5 3 , t h e F e d e r a l R e p u b l i c of G e r m a n y , a s p a r t of
t h e G e r m a n s e t t l e m e n t of G e r m a n d e b t s , e n t e r e d I n t o a n a g r e e m e n t
w i t h t h e U n i t e d S t a t e s w h i c h p r o v i d e d f o r ( l ) t h e s e t t l e m e n t of t h e
o b l i g a t i o n s of t h e F e d e r a l R e p u b l i c w i t h r e g a r d t o t h e r e m a i n i n g
I n d e b t e d n e s s of G e r m a n y f o r a w a r d s m a d e b y t h e M i x e d C l a i m s
C o m m i s s i o n , U n i t e d S t a t e s a n d G e r m a n y , o n b e h a l f of n a t i o n a l s
of t h e U n i t e d S t a t e s , a n d (2) t h e d e f e r m e n t of s e t t l e m e n t of a l l o t h e r
I n d e b t e d n e s s u n d e r t h e 1930 a g r e e m e n t .
T h e a g r e e m e n t p r o v i d e d f o r t h e t o t a l p a y m e n t of $ 9 7 , 5 0 0 , 0 0 0 I n
26 a n n u a l I n s t a l l m e n t s b e g i n n i n g A p r i l 1, 1 9 5 3 , o n b e h a l f of t h o s e
n a t i o n a l s of t h e U n i t e d S t a t e s o n w h o s e b e h a l f a w a r d s of t h e M i x e d
C l a i m s C o m m i s s i o n had h e r e t o f o r e b e e n e n t e r e d but which h a d not
b e e n fully s a t i s f i e d . T h e a g r e e m e n t w a s r a t i f i e d O n S e p t e m b e r 16,
1953, and on S e p t e m b e r 24, 1953, the F e d e r a l R e p u b l i c m a d e the
f i r s t a n n u a l p a y m e n t of $ 3 , 0 0 0 , 0 0 0 . T h e s e c o n d p a y m e n t . I n l i k e
a m o u n t , w a s m a d e o n A p r i l 1, 1 9 5 4 . T h e a w a r d s w e r e d i s t r i b u t e d
I n a c c o r d a n c e w i t h t h e S e t t l e m e n t of W a r C l a i m s A c t of 1 9 2 8 , a s
a m e n d e d ( 5 0 U . S . C . A p p . 9 ) . D i s t r i b u t i o n t o h o l d e r s of C l a s s III
339256
0-55-9
110
1954 REPORT OF THE SECRETARY OF THE TREASURY
a w a r d s was m a d e on a b a s i s of 4.65 p e r c e n t of the I n t e r e s t which
had a c c r u e d f r o m J a n u a r y 1, 1928 to J a n u a r y 1, 1953. The s e c o n d
p a y m e n t , r e c e i v e d on A p r i l 1, 1954, was d i s t r i b u t e d on a b a s i s of
4.75 p e r c e n t of the I n t e r e s t which had ace r u e d f r o m J a n u a r y 1, 1928
to J a n u a r y 1, 1954.
A s t a t e m e n t showing t o t a l p a y m e n t s m a d e on a w a r d s u n d e r t h c
S e t t l e m e n t of War C l a i m s Act of 1928, by c l a s s e s , and t h e s t a t u s of
the a c c o u n t s as of J u n e 30, 1954, Is shown In t a b l e 109.
World War II I n d e b t e d n e s s
D u r i n g 1954 the B u r e a u of Accounts continued Its o p e r a t i o n s of
a c c o u n t i n g , b i l l i n g , and c o l l e c t i n g for l e n d - l e a s e a r t i c l e s t r a n s f e r r e d and s u r p l u s p r o p e r t y sold by the United S t a t e s to f o r e i g n
g o v e r n m e n t s In connection with World War II.^ T a b l e 117 shows the
s t a t u s of the I n d e b t e d n e s s by c o u n t r i e s for r e i m b u r s a b l e s u p p l i e s
and s e r v i c e s u n d e r l e n d - l e a s e and s u r p l u s p r o p e r t y s a l e s a g r e e m e n t s , and u n d e r o t h e r l e n d - l e a s e a c c o u n t s . As of J u n e 30, 1954,
the a c c o u n t s r e c e i v a b l e a m o u n t e d to $ 2 , 4 1 2 . 3 m i l l i o n . Included In
o t h e r l e n d - l e a s e a c c o u n t s Is $ 2 9 1 . 2 m i l l i o n due for s l i v e r t r a n s f e r r e d u n d e r the l e n d - l e a s e p r o g r a m , r e p a y m e n t of which Is to be
m a d e In s l i v e r of a like kind and q u a n t i t y .
Under the l e n d - l e a s e and s u r p l u s p r o p e r t y a g r e e m e n t s , t h e
T r e a s u r y D e p a r t m e n t In f i s c a l 1954 r e c e i v e d p a y m e n t s In United
S t a t e s d o l l a r s f r o m foreign g o v e r n m e n t s amounting to $ 5 8 . 1 m i l l i o n .
T h i s brought the t o t a l c o l l e c t e d In United S t a t e s d o l l a r s to $1,789.9
m i l l i o n as of J u n e 30, 1954. D u r i n g t h e y e a r , the l e n d - l e a s e and
s u r p l u s p r o p e r t y a c c o u n t s w e r e c r e d i t e d a l s o with p a y m e n t s In
f o r e i g n c u r r e n c i e s having a United S t a t e s d o l l a r equivalent of
$ 2 6 . 1 m i l l i o n . Such p a y m e n t s f r o m Inception of the l e n d - l e a s e and
s u r p l u s p r o p e r t y p r o g r a m s have r e d u c e d the a m o u n t s r e c e i v a b l e
by the United S t a t e s d o l l a r equivalent of $ 2 2 3 . 1 m i l l i o n .
C r e d i t to the United Kingdom
The United S t a t e s m a d e loans to the United Kingdom In the t o t a l
a m o u n t of $ 3 , 7 5 0 , 0 0 0 , 0 0 0 , u n d e r the t e r m s o f t h e financial a g r e e m e n t d a t e d D e c e m b e r 6, 1945. The a g r e e m e n t p r o v i d e s for r e p a y m e n t s on the l o a n s , t o g e t h e r with I n t e r e s t at the r a t e of 2 p e r c e n t ,
to be m a d e annually beginning D e c e m b e r 3 1 , 1951.
The t h i r d a n n u a l p a y m e n t i n t h e a m o u n t of $ 119,336,250, was
m a d e on D e c e m b e r 3 1 , 1953, of which $73,208,815.50 was applied
to I n t e r e s t , and the b a l a n c e of $46,127,434.50 applied to p r i n c i p a l .
The I n d e b t e d n e s s as of J u n e 30, 1954, a m o u n t e d to $ 3 , 6 1 4 , 3 1 3 , 3 4 0 . 5 0 .
G e r m a n e x t e r n a l debt
The a g r e e m e n t on G e r m a n e x t e r n a l debts signed on F e b r u a r y 27,
1953, by the F e d e r a l R e p u b l i c of G e r m a n y and the U n i t e d S t a t e s
p r o v i d e d for the s e t t l e m e n t of the c l a i m held by the United S t a t e s
G o v e r n m e n t for p o s t w a r e c o n o m i c a s s i s t a n c e f u r n i s h e d to G e r m a n y .
The a g r e e m e n t p r o v i d e d for the p a y m e n t to the United S t a t e s f r o m
t i m e to t i m e from J a n u a r y 1, 1953, of the p r i n c i p a l s u m of
lUnder Executive Order No. 9726, dated May 17, 1946; see Annual Report for 1947, p. 116.
ADMINISTRATIVE REPORTS
111
$1,000,000,000 and I n t e r e s t at t h c r a t e of 2 1/2 p e r c e n t p e r annum
on thc unpaid p r i n c i p a l b a l a n c e o u t s t a n d i n g , s u c h i n t e r e s t to bc
paid s e m i a n n u a l l y .
T h e f i r s t p a y m e n t of i n t e r e s t , in t h e amount of $ 1 2 , 5 0 0 , 0 0 0 , was
m a d e on J u l y 1, 1953, while a s i m i l a r p a y m e n t was m a d e J a n u a r y
1, 1954. T h e r e a f t e r , until and I ncluding J a n u a r y 1, 1958, $12,500,000
s h a l l be paid on J a n u a r y 1 and J u l y 1 of e a c h y e a r as I n t e r e s t .
Beginning J u l y 1, 1958, and s e m i a n n u a l l y t h e r e a f t e r , 59 i n s t a l l m e n t s of $23,790,000 and one f i n a l l n s t a l l m e n t of the unpaid b a l a n c e
s h a l l be paid, s u c h I n s t a l l m e n t s to be applied f i r s t to a c c r u e d
I n t e r e s t and t h e r e m a i n d e r to p r i n c i p a l .
I n t e r n a t i o n a i C l a i m s S e t t l e m e n t Act of 1949, a s a m e n d e d
The act of M a r c h 10, 1950, as a m e n d e d (22 U.S.C. 1622), e s t a b l i s h e d the I n t e r n a t i o n a i C l a i m s C o m m i s s i o n of the United S t a t e s In
the D e p a r t m e n t of State^ to r e c e i v e c l a i m s , conduct h e a r i n g s , and
adjudicate and r e n d e r final d e c i s i o n s with r e s p e c t to c e r t a i n c l a i m s
of the G o v e r n m e n t of the United S t a t e s , on Its own behalf and on t h c
behalf of the A m e r i c a n nationals a g a i n s t foreign g o v e r n m e n t s ,
a r i s i n g out of World War II. A w a r d s of t h e C o m m i s s i o n a r e c e r t i fied to the S e c r e t a r y of the T r e a s u r y for p a y m e n t to a w a r d e e s o r
t h e i r s u c c e s s o r s o r a s s i g n s In a c c o r d a n c e with the p r o v i s i o n s of
the a c t , as a m e n d e d .
Under the Yugoslav C l a i m s A g r e e m e n t of 1948, the G o v e r n m e n t
of Y u g o s l a v i a paid to the United S t a t e s t h e s u m of $17,000,000 In
full s e t t l e m e n t of c e r t a i n p e c u n i a r y c l a i m s of the United S t a t e s and
n a t i o n a l s of t h e United S t a t e s a g a i n s t t h e Yugoslav G o v e r n m e n t
a r i s i n g out of the n a t i o n a l i z a t i o n o r o t h e r taking of p r o p e r t y by
Y u g o s l a v i a . T h i s Is to bc paid out to t h e r e s p e c t i v e c l a i m a n t s
u n d e r the a f o r e s a i d a g r e e m e n t as t h e i r I n t e r e s t s m a y a p p e a r ,
p u r s u a n t to the a c t of M a r c h 10, 1950, as a m e n d e d (22 U.S.C.
1625-1626, Supp. I). As of J u n e 30, 1954, 153 a w a r d s In thc t o t a l
s u m of $690,217 have b e e n c e r t i f i e d to the T r e a s u r y for p a y m e n t .
O r g a n i z a t i o n for E u r o p e a n E c o n o m i c C o o p e r a t i o n , E u r o p e a n P r o ductivity Agency
The E u r o p e a n P r o d u c t i v i t y Agency was e s t a b l i s h e d within the
f r a m e of the O r g a n i z a t i o n for E u r o p e a n E c o n o m i c C o o p e r a t i o n
p u r s u a n t to S e c t i o n 115(k)(2) of t h e E c o n o m i c C o o p e r a t i o n Act of
1948, as a m e n d e d (22 U.S.C. 1513k) and Section 516(a) o f t h e
Mutual S e c u r i t y Act of 1951, as a m e n d e d (22 U.S.C. 1667).
The object of the p r o g r a m Is to s t i m u l a t e f r e e e n t e r p r i s e and t h c
e x p a n s i o n of t h e e c o n o m i e s of the m e m b e r c o u n t r i e s with e q u i t a b l e
s h a r i n g of the benefits «unong c o n s u m e r s , w o r k e r s , and o w n e r s . To
put the p r o g r a m Into o p e r a t i o n , the D i r e c t o r for Mutual S e c u r i t y ,
as a u t h o r i z e d by the law, t r a n s f e r r e d to the O r g a n i z a t i o n $ 2 , 5 0 0 , 0 0 0 ,
which was d e p o s i t e d Into a s p e c i a l account of the S e c r e t a r y of the
T r e a s u r y on J u n e 30, 1953. D u r i n g t h e f l s c a l y e a r 1954, w i t h d r a w a l s
w e r e m a d e In the amount of $ 5 0 0 , 0 0 0 .
iBy Reorganization Plan No. 1 of 1954, the name of this Commission was changed to the Foreign
Claims Settlement Commission of the United States, effective July 1, 1954.
112
1954 REPORT OF THE SECRETARY OF THE TREASURY
U n i t e d N a t i o n s R e l i e f and W o r k s A g e n c y for P a l e s t i n e R e f u g e e s In
the Near East
The United Nations Relief and Works Agency for P a l e s t i n e
R e f u g e e s I n t h e N e a r E a s t w a s e s t a b l i s h e d u n d e r a r e s o l u t i o n of t h e
G e n e r a l A s s e m b l y of t h e U n i t e d N a t i o n s o n D e c e m b e r 8, 1 9 4 9 .
U n d e r S e c t i o n 3 0 2 , T i t l e III of t h e F o r e i g n E c o n o m i c A s s i s t a n c e
A c t of 1 9 5 0 ( 2 2 U . S . C . 1 5 5 6 ; s e e a l s o 2 2 U . S . C . 1 5 5 6 S u p p . I n o t e ) ,
t h e S e c r e t a r y of S t a t e w a s a u t h o r i z e d t o m a k e c o n t r i b u t i o n s f r o m
t i m e t o t i m e to t h e A g e n c y f r o m a p p r o p r i a t e d funds u n d e r t h e
j u r i s d i c t i o n of t h e D e p a r t m e n t of S t a t e . P u r s u a n t t o a n a g r e e m e n t
w i t h t h e S e c r e t a r y of S t a t e , t h e r e w a s e s t a b l i s h e d a d e p o s i t fund
a c c o u n t I n t h e n a m e of t h e S e c r e t a r y of t h e T r e a s u r y . A s of J u n e
3 0 , 1 9 5 4 , t h e D e p a r t m e n t of S t a t e h a d t r a n s f e r r e d $ 3 5 , 0 0 0 , 0 0 0 a n d
the Agency had withdrawn $8,500,000.
I n d e b t e d n e s s of t h e G o v e r n m e n t of t h e R e p u b l i c of t h e P h i l i p p i n e s
B o n d s of t h e R e p u b l i c o f t h e P h i l i p p i n e s . - - T h e f i n a l p a y m e n t b y
the Philippines to the special t r u s t account established I n t h e
T r e a s u r y under the Philippine Independence Act, approved August
7 , 1939 ( 5 3 S t a t . 1 2 2 9 ) , w a s m a d e o n O c t o b e r 2 3 , 1 9 5 1 .
T h e act p r o v i d e s . In p a r t , that: " F r o m t i m e to t i m e after J u l y
4 , 1946, a n y m o n e y s In s u c h s p e c i a l t r u s t a c c o u n t found by t h e
S e c r e t a r y of t h e T r e a s u r y of t h e U n i t e d S t a t e s t o b e I n e x c e s s of a n
a m o u n t a d e q u a t e t o m e e t I n t e r e s t a n d p r i n c i p a l p a y m e n t s of a l l s u c h
b o n d s s h a l l b e t u r n e d o v e r t o t h e T r e a s u r e r of t h e I n d e p e n d e n t
G o v e r n m e n t of t h e P h i l i p p i n e s . " I n a c c o r d a n c e w i t h t h i s p r o v i s i o n ,
$ 1 , 0 0 0 , 0 0 0 w a s d e t e r m i n e d t o b e I n e x c e s s o f t h e s p e c i a l t r u s t fund
r e q u i r e m e n t s a n d w a s r e t u r n e d t o t h e T r e a s u r e r of t h e G o v e r n m e n t
of t h e P h i l i p p i n e s o n M a y 2 4 , 1 9 5 4 .
T h e s t a t u s of t h e s p e c i a l t r u s t a c c o u n t a s of J u n e 3 0 , 1 9 5 4 , f o r
t h e p a y m e n t of p r i n c i p a l a n d I n t e r e s t o n p r e - 1 9 3 4 P h i l i p p i n e
G o v e r n m e n t b o n d s , w i l l b e f o u n d In t a b l e 7 1 .
F u n d i n g a g r e e m e n t . - - O n J u n e 1, 1 9 5 4 , t h e T r e a s u r y D e p a r t m e n t
a l s o r e c e i v e d a p a y m e n t of $ 4 , 2 0 0 , 0 0 0 f r o m t h e G o v e r n m e n t of t h e
P h i l i p p i n e s r e p r e s e n t i n g p a y m e n t of p r i n c i p a l I n t h e a m o u n t of
$ 3 , 5 0 0 , 0 0 0 a n d I n t e r e s t I n t h e a m o u n t of $ 7 0 0 , 0 0 0 p u r s u a n t t o t h e
t e r m s of t h e P h i l i p p i n e r e f u n d i n g a g r e e m e n t of N o v e m b e r 6, 1 9 5 0
(Annual R e p o r t for 1951, p p . 553 and 601).
American-Mexican Claims Commission
D u r i n g t h e f i s c a l y e a r 1 9 5 4 , t h e G o v e r n m e n t of t h e U n i t e d M e x i c a n
S t a t e s m a d e I t s a n n u a l p a y m e n t I n t h e a m o u n t of $ 2 , 5 0 0 , 0 0 0 , r e p r e s e n t i n g a n I n s t a l l m e n t o n t h e $ 4 0 , 0 0 0 , 0 0 0 w h i c h M e x i c o , In t h e
C o n v e n t i o n of N o v e m b e r 1 9 , 1 9 4 1 , a g r e e d t o p a y I n f u l l s e t t l e m e n t
of t h e c l a i m s of A m e r i c a n n a t i o n a l s a s a d j u d i c a t e d b y t h e A m e r i c a n Mexican Claims Commission. The amount enabled a further d i s t r i b u t i o n of 6 . 1 p e r c e n t o n t h e p r i n c i p a l a m o u n t of . e a c h a w a r d ,
m a k i n g a t o t a l d i s t r i b u t i o n of 8 9 . 6 p e r c e n t . A s t a t e m e n t of t h e
M e x i c a n c l a i m s fund a p p e a r s a s t a b l e 1 0 8 .
Withheld foreign checks
P r o h i b i t i o n of t h e d e l i v e r y of G o v e r n m e n t c h e c k s t o p a y e e s
r e s i d i n g In c e r t a i n f o r e i g n a r e a s c o n t i n u e d d u r i n g 1954 u n d e r
T r e a s u r y D e p a r t m e n t C i r c u l a r N o . 6 5 5 , d a t e d M a r c h 19, 1 9 4 1 , a s
ADMINISTRATIVE REPORTS
113
a m e n d e d . This r e s t r i c t i o n applies to t h e following a r e a s : Albania,
B u l g a r i a , C o m m u n i s t - c o n t r o l l e d China, C z e c h o s l o v a k i a , E s t o n i a ,
H u n g a r y , L a t v i a , L i t h u a n i a , P o l a n d , R u m a n i a , the Union of Soviet
S o c i a l i s t R e p u b l i c s , the R u s s i a n Zone of Occupation of G e r m a n y ,
and the R u s s i a n S e c t o r of Occupatlonof B e r l i n . In addition, d e l i v e r y
of c h e c k s to n a t i o n a l s of C o m m u n i s t China and N o r t h K o r e a Is
p r o h i b i t e d by F o r e i g n A s s e t s C o n t r o l r e g u l a t i o n s I s s u e d by the
S e c r e t a r y of the T r e a s u r y on D e c e m b e r 17, 1950, except to the
extent t h a t d e l i v e r y h a s b e e n a u t h o r i z e d by a p p r o p r i a t e l i c e n s e .
L i q u i d a t i o n s of F e d e r a l Agencies
Although the o u t s t a n d i n g obligations of the Philippine War D a m a g e
C o m m i s s i o n w e r e liquidated and the a d m i n i s t r a t i v e accounts c l o s e d
d u r i n g the f i s c a l y e a r 1953, 5,673 I n q u i r i e s and o t h e r c o r r e s p o n d ence r e l a t i n g to p r o p e r t y d a m a g e c l a i m s and c l a i m s for the p r o c e e d s of I m p r o p e r l y negotiated w a r d a m a g e c h e c k s w e r e r e c e i v e d
d u r i n g the f i s c a l y e a r 1954.
E x e c u t i v e O r d e r No. 10494, dated O c t o b e r 14, 1953, p l a c e d upon
the S e c r e t a r y of the T r e a s u r y the a u t h o r i t y to liquidate the r e n i a l n Ing f i s c a l functions of the E c o n o m i c S t a b i l i z a t i o n Agency. T r e a s u r y
D e p a r t m e n t O r d e r No. 1 6 2 - 2 , dated N o v e m b e r 2, 1953, d e l e g a t e d
s u c h a u t h o r i t y to the C o m m i s s i o n e r of A c c o u n t s . During the fiscal
y e a r 1954, m o s t of the outstanding obligations w e r e liquidated and
various procedural matters were completed.
BUREAU OF THE PUBLIC DEBT
The B u r e a u of the P u b l i c Debt In c o n n e c t i o n with the m a n a g e m e n t
of the public debt, p e r f o r m s the a d m i n i s t r a t i v e work which Includes
the p r e p a r a t i o n of offering c i r c u l a r s . I n s t r u c t i o n s , and r e g u l a t i o n s
p e r t a i n i n g to e a c h I s s u e , the I s s u a n c e of s e c u r i t i e s and the conduct
o r d i r e c t i o n of t r a n s a c t i o n s In o u t s t a n d i n g I s s u e s , the final audit
and custody of r e t i r e d s e c u r i t i e s , the m a i n t e n a n c e of the c o n t r o l
a c c o u n t s c o v e r i n g all public debt I s s u e s , and the keeping of I n d i v i d u a l a c c o u n t s with o w n e r s of r e g i s t e r e d s e c u r i t i e s and the I s s u e
of c h e c k s In p a y m e n t of I n t e r e s t t h e r e o n .
Two p r i n c i p a l offices a r e m a i n t a i n e d , one In Washington, D. C.^
for all functions r e l a t i n g to the I s s u i n g , s e r v i c i n g , and r e t i r i n g
of public debt s e c u r i t i e s except t h o s e r e l a t i n g to s a v i n g s bonds
following t h e i r I s s u e to the public; the o t h e r In Chicago, 111., w h e r e
the functions c o n s i s t of t r a n s a c t i o n s r e l a t i n g to savings bonds after
t h e i r I s s u e to the p u b l i c . In addition to the two p r i n c i p a l offices,
t h r e e fleld r e g i o n a l offices, l o c a t e d In New Y o r k , Chicago, and
C i n c i n n a t i , a r e m a i n t a i n e d for t h e p u r p o s e of auditing r e t i r e d
s a v i n g s bonds and p r e p a r i n g r e c o r d s r e f l e c t i n g t h e i r r e t i r e m e n t .
Bureau administration
M a n a g e m e n t I m p r o v e m e n t . - - I n the p a s t s e v e r a l y e a r s the B u r e a u
of the P u b l i c Debt h a s b e e n highly s u c c e s s f u l In the p r o s e c u t i o n of
Its m a n a g e m e n t I m p r o v e m e n t p l a n . V a r i o u s flelds have b e e n p r o g r e s s i v e l y e m p h a s i z e d t h r o u g h c o o r d i n a t e d d e s i g n on the p a r t of
114
1954 REPORT OF THE SECRETARY OF THE TREASURY
t h e B u r e a u and a l s o a s a r e s u l t of d e p a r t m e n t a l p r o c e d u r a l r e c o m m e n d a t i o n s for the guidance and c o n s i d e r a t i o n of a l l T r e a s u r y
units.
D u r i n g 1954 the B u r e a u continued its p r o g r a m to r e d u c e c o s t s
w h e r e v e r such r e d u c t i o n could be m a d e without s a c r i f i c i n g s e c u r i t y
c o n t r o l s o r i m p a i r i n g t h e q u a l i t y of Its s e r v i c e . Noteworthy r e s u l t s
w e r e a t t a i n e d In s e v e r a l a r e a s . A s i m p l i f i e d m e t h o d of c o r r e c t i n g
s e q u e n c e e r r o r s on m i c r o f i l m r e c o r d s of s a v i n g s bonds r e g i s t r a tion s t u b s r e d u c e d r e p h o t o g r a p h l n g and film splicing to a mlnlmum.^
F o l l o w i n g s t u d i e s m a d e of the film r e v i e w i n g o p e r a t i o n s In conn e c t i o n with t h e filming of s a v i n g s bond s t u b s , a m e c h a n i c a l collating
s e q u e n c e check w a s I n s t i t u t e d I m m e d i a t e l y b e f o r e the n u m e r i c a l
filming which p r o d u c e d a m u c h h i g h e r d e g r e e of s e q u e n c e a c c u r a c y
on the f l l m s . T h i s m a d e p o s s i b l e a r e d u c t i o n In the film s e q u e n c e
r e v i e w of n u m e r i c a l stub r e e l s to a 5 p e r c e n t s a m p l i n g check,
r e s u l t i n g In a s u s t a i n e d I n c r e a s e In p r o d u c t i o n In t h i s o p e r a t i o n
of a p p r o x i m a t e l y 100 p e r c e n t . A s u r v e y of the frequency of d i s c r e p a n c y . In the I s s u e d a t e shown by o r i g i n a l I s s u e r e g i s t r a t i o n
s t u b s of s a v i n g s bonds and t h e r e l a t i o n of r e d e m p t i o n s t o s a l e s by
d e n o m i n a t i o n s , d e t e r m i n e d It was f e a s i b l e to dis continue In p a r t the
Is sue date v e r i f i c a t i o n ofthe s t u b s without I m p a i r i n g adequate quality
c o n t r o l . A r e v i s i o n of the p r o c e d u r e for p r o c e s s i n g c h a n g e s of a d d r e s s In connection with the r e g i s t e r e d a c c o u n t s of S e r i e s G s a v i n g s
bonds e l i m i n a t e d the typing of a p p r o x i m a t e l y 150,000 copies of f o r m s
and new a d d r e s s e s on account r e f e r e n c e c a r d s annually.
D u r i n g the y e a r the s a v i n g s bonds o p e r a t i o n s r e l a t i n g t o r e t i r e m e n t and r e i s s u e t r a n s a c t i o n s w e r e r e v i e w e d and c a r e f u l l y a n a lyzed, r e s u l t i n g In a d e c i s i o n to r e f i n e the b a s i c r e d e m p t i o n p r o c e d u r e s f u r t h e r . T h e r e v i s e d p r o c e d u r e Is a m a j o r change In t h e
s a v i n g s bonds r e t i r e m e n t p r o c e s s i n g o p e r a t i o n s In the F e d e r a l
R e s e r v e Banks and w a s p l a c e d In effect In t h e Banks on a s t a g g e r e d
b a s i s , beginning J u n e 1, 1954, for a p e r i o d of t h r e e m o n t h s . T h e
c h a n g e In p r o c e d u r e does not In any way affect thc r e l a t i o n s h i p of
paying a g e n t s with t h e F e d e r a l R e s e r v e Banks but It t r a n s f e r s
m o s t of the d e t a i l e d o p e r a t i o n s f r o m the F e d e r a l R e s e r v e Banks
to the t h r e e r e g i o n a l offices of the R e g i s t e r of the T r e a s u r y . A
u n i f o r m p r o c e d u r e for p r o c e s s i n g s a v i n g s bonds r e t i r e d on all t y p e s
of t r a n s a c t i o n s Is effected, t h e r e b y r e s u l t i n g In s u b s t a n t i a l e c o n o m i e s
In p e r s o n n e l , e q u i p m e n t , s p a c e , and o t h e r r e l a t e d I t e m s . T h i s
change In p r o c e d u r e a l s o l a y s the g r o u n d w o r k for facilitating thc
p r o c e s s i n g of r e d e e m e d s a v i n g s bonds by e l e c t r o n i c m e a n s If t h i s
proves feasible.
It was d e t e r m i n e d t h a t the final audit of r e t i r e d b e a r e r s e c u r i t i e s
and I n t e r e s t coupons could be d i s p e n s e d with and t h e r e f o r e the
F i n a l Audit Section of the Office of the R e g i s t e r of the T r e a s u r y was
a b o l i s h e d as of July 1, 1953.
A Machine Accounting S e c t i o n w a s e s t a b l i s h e d on N o v e m b e r 1,
1953, In the Office of the Deputy C o m m i s s i o n e r In C h a r g e of t h e
Washington Office, by c o n s o l i d a t i o n of the Machine O p e r a t i o n s
Unit of the D i v i s i o n of L o a n s and C u r r e n c y with the M a c h i n e
Accounting S e c t i o n of the Office of the R e g i s t e r of the T r e a s u r y ,
r e s u l t i n g In e c o n o m i e s In both m a c h i n e s and p e r s o n n e l .
Since the audit of unfit United S t a t e s p a p e r c u r r e n c y r e t i r e d
f r o m c i r c u l a t i o n was d e c e n t r a l i z e d t o t h e F e d e r a l R e s e r v e Banks
115
ADMINISTRATIVE REPORTS
and b r a n c h e s , the R e d e e m e d C u r r e n c y Unit of the Division of Loans
and C u r r e n c y was a b o l i s h e d N o v e m b e r 5, 1953.
P e r s o n n e l . - - O n J u n e 30, 1954, t h e r e w e r e 3,411 e m p l o y e e s on thc
r o l l s of t h c B u r e a u of the P u b l i c Debt excluding t h o s e on l e a v e
without pay, a s c o m p a r e d with ' 3 , 4 8 9 on J u n e 30, 1953. T h e p r i n c i p a l c h a n g e s c o n s i s t e d of d e c r e a s e s of 163 e m p l o y e e s In the Division
of Loans and C u r r e n c y and 24 e m p l o y e e s I n t h e Office of the R e g i s t e r , In Washington; and 91 e m p l o y e e s i n t h e Chicago D e p a r t m e n t a l
Office and an I n c r e a s e o f 180 e m p l o y e e s I n t h e t h r e e r e g i o n a l offices
of t h e R e g i s t e r of t h e T r e a s u r y , o c c a s i o n e d by a shift of work f r o m
the F e d e r a l R e s e r v e Banks and b r a n c h e s .
Bureau operations
The public d e b t . - - A s u m m a r y of public debt o p e r a t i o n s handled
by the B u r e a u a p p e a r s on p a g e s 22 to 35 o f t h i s r e p o r t , and a s e r i e s
of s t a t i s t i c a l t a b l e s dealing with the public debt will be found In
t a b l e s 14 to 4 9 .
The public debt of the U n i t e d S t a t e s falls Into two b r o a d c a t e g o r i e s :
( l ) P u b l i c I s s u e s , and (2) s p e c i a l I s s u e s . The public I s s u e s a r e
c l a s s i f i e d a s to m a r k e t a b l e o b l i g a t i o n s , c o n s i s t i n g chiefly of
T r e a s u r y b i l l s , c e r t i f i c a t e s of I n d e b t e d n e s s , T r e a s u r y n o t e s , and
T r e a s u r y bonds; and n o n m a r k e t a b l e o b l i g a t i o n s , c o n s i s t i n g chiefly
of United S t a t e s s a v i n g s bonds, T r e a s u r y bonds of the I n v e s t m e n t
s e r i e s , and T r e a s u r y s a v i n g s n o t e s . Special i s s u e s a r e i s s u e d by
the T r e a s u r y d i r e c t l y to v a r i o u s G o v e r n m e n t funds and p a y a b l e
only for account of such funds.
D u r i n g the f i s c a l y e a r 1954 the g r o s s public debt i n c r e a s e d by
$5,189 m i l l i o n and the g u a r a n t e e d obligations held o u t s i d e the
T r e a s u r y i n c r e a s e d by $29 m i l l i o n . The m o s t significant change In
the c o m p o s i t i o n of the outstanding debt d u r i n g the y e a r w a s the
i n c r e a s e of $ 3 , 0 2 0 m i l l i o n in m a r k e t a b l e o b l i g a t i o n s . T o t a l public
debt i s s u e s , including i s s u e s in exchange for o t h e r s e c u r i t i e s ,
a m o u n t e d to $ 1 8 1 , 9 7 9 m i l l i o n d u r i n g 1954, and r e t i r e m e n t s amounted
to $176,791 m i l l i o n . The following s t a t e m e n t g i v e s a c o m p a r i s o n of
the c h a n g e s d u r i n g the f i s c a l y e a r s 1953 and 1954 i n the v a r i o u s
c l a s s e s of public debt i s s u e s :
Increase, or decrease (-)
Classification
In millions of dollars
-Interest-bearing debt:
Treasury bonds, investment series,
Treasury savings notes
,
United States savings bonds
Marketable obligations
,
Special issues
pther
Total interest-bearing debt..,
Matured and debt bearing no interest,
Total
' Revised.
-758
-2,160
201
2,799
74
-513
626
176
3,020
1,691
-35
7,083
-117
4,964
225
6,928
5,189
116
1954 REPORT OF THE SECRETARY OF THE TREASURY
U n i t e d S t a t e s s a v i n g s b o n d s . - - I n t e r m s of v o l u m e of w o r k , t h e
I s s u e a n d r e d e m p t i o n of U n i t e d S t a t e s s a v i n g s b o n d s r e p r e s e n t t h e
l a r g e s t a d m i n i s t r a t i v e p r o b l e m of t h i s B u r e a u . S i n c e t h e s e b o n d s
a r e I n r e g i s t e r e d f o r m a n d I n t h e h a n d s of m i l l i o n s of p e o p l e ,
e s t a b l i s h i n g a n d m a i n t a i n i n g a l p h a b e t i c a l a n d n u m e r i c a l r e c o r d s of
m o r e t h a n 1.6 b i l l i o n of t h e s e b o n d s , r e p l a c i n g l o s t , s t o l e n , a n d
d e s t r o y e d bonds, and handling and r e c o r d i n g r e t i r e d bonds p r e s e n t
a d m i n i s t r a t i v e t a s k s of c o n s i d e r a b l e m a g n i t u d e .
R e c e i p t s f r o m t h e s a l e s of s a v i n g s b o n d s d u r i n g t h e y e a r w e r e
$5,494 million and a c c r u e d discount c h a r g e d tothe Interest account
and c r e d i t e d to the savings bond p r i n c i p a l account amounted to
$ 1 , 2 3 4 m i l l i o n , a t o t a l of $ 6 , 7 2 7 m i l l i o n . E x p e n d i t u r e s f o r r e d e e m i n g savings b o n d s . Including m a t u r e d bonds, amounted to
$ 6 , 5 1 5 m i l l i o n . T h e a m o u n t of s a v i n g s b o n d s of a l l s e r i e s o u t s t a n d ing on J u n e 30, 1954, Including a c c r u e d d i s c o u n t and m a t u r e d
b o n d s , w a s $ 5 8 , 1 8 9 m i l l i o n , a n I n c r e a s e of $ 2 1 2 m i l l i o n o v e r t h e
a m o u n t outstanding on J u n e 30, 1953. D e t a i l e d I n f o r m a t i o n r e g a r d i n g s a v i n g s b o n d s w i l l b e f o u n d I n t a b l e s 34 t o 3 9 , I n c l u s i v e , of t h i s
report.
D u r i n g the f i s c a l y e a r 1954, 88.2 m i l l i o n stubs r e p r e s e n t i n g
I s s u e d b o n d s of S e r i e s E w e r e r e c e i v e d f o r r e g i s t r a t i o n , m a k i n g a
t o t a l of 1 , 6 2 7 . 3 m i l l i o n . I n c l u d i n g r e i s s u e s , r e c e i v e d t h r o u g h J u n e
30, 1 9 5 4 . T h e s e o r i g i n a l s t u b s a r e f i r s t a r r a n g e d a l p h a b e t i c a l l y In
s e m i a n n u a l b l o c k s , b y n a m e of o w n e r , a n d m i c r o f i l m e d . T h e y a r e
t h e n a r r a n g e d I n n u m e r i c a l s e q u e n c e of t h e i r b o n d s e r i a l n u m b e r
In a full c a l e n d a r y e a r flle and m i c r o f i l m e d , after w h i c h t h e y a r e
destroyed. The microfilms serve as permanent registration r e c o r d s . Of t h e 1 , 6 2 7 . 3 m i l l i o n S e r i e s E b o n d s t u b s r e c e i v e d a s of
J u n e 30, 1954, 1,427.9 m i l l i o n h a v e b e e n c o m p l e t e l y p r o c e s s e d and
d e s t r o y e d , l e a v i n g a b a l a n c e of 1 9 9 . 4 m i l l i o n s t u b s I n p r o c e s s a t
v a r i o u s s t a g e s of c o m p l e t i o n . T h e f o l l o w i n g t a b l e s h o w s t h e p r o c e s s i n g , a t v a r i o u s s t a g e s , of t h e r e g i s t r a t i o n s t u b s of S e r i e s E
savings bonds.
Stubs of issued Series E savings bonds in Chicago office
(In millions of pieces)
Period
Cumulative through June 30, 1949
Fiscal year:
1950
1951
1952
1953
1954
Total
Stubs
received
Alphabetically
sorted
Alphabetically
filmed
Numeri- . Destroyed
cally
after
filmed
filming
Restricted
basis
sort^
Fine sort
prior to
1,247.0
1,210.2
1,186.9
1,139.2
1,223.3
1,061.5
67.8
65.5
76.0
82.8
88.2
91.1
60.5
72.2
84.0
89.0
88.1
66.2
67.3
59.8
82.0
115.3
63.8
57.1
62.3
82.2
.5
41.7
27.5
66.4
72.7
156.6
36.4
32.2
67.9
73.3
1,627.3
1,607.0
1,550.3
1,519.9
1,432.1
1,427.9
fi]jiiing2
^ Not in complete alphabetical arrangement but sorted to such a degree that individual stubs can be
located. Includes those stubs fine sorted.
^ Completely sorted.
117
ADMINISTRATIVE REPORTS
T h e audit of r e t i r e d savings bonds Is conducted In the r e g i o n a l
offices of t h e R e g i s t e r of t h e T r e a s u r y . T h e r e w e r e 97.3 m i l l i o n
r e t i r e d s a v i n g s bonds of all s e r i e s r e c e i v e d In the r e g i o n a l offices
d u r i n g the y e a r . R e t i r e d bonds a r e a u d i t e d and then m i c r o f i l m e d ,
a f t e r which the bonds m a y be d e s t r o y e d . The bonds of all s e r i e s
r e c e i v e d In t h e s e offices have b e e n audited, m i c r o f i l m e d , and
d e s t r o y e d to the extent I n d i c a t e d In the following t a b l e .
Retired savings bonds of all series in regional offices
(In millions'of pieces)
• Period
Bonds
received
Cumulative through June 30, 1949...
'Fiscal year:
1950
1951
1952
1953
1954
Audited
Microfilmed
Balance
unaudited
Balance
unfilmed
Destroyed
319.0
223.1
3.0
98.9
4.5
84.4
92.1
82.4
88.4
97.3
83.0
94.2
82.8
88.5
96.0
153.3
101.7
85.2
92.1
95.5
4.42.3
1.9
1.8
3.1
30.0
20.4
17.6
13.9
15.7
312.7
79 ?
88 6
111.0
81.6
^ 766.6
Total
322.0
763.5
750.9
3.1
15.7
677.6
• Includes 731.8 million pieces of redeemed Series A-E bonds.
^
After the r e t i r e d bonds h a v e b e e n audited in the r e g i o n a l offices,
a l i s t i n g of the s e r i a l n u m b e r s Is t r a n s m i t t e d to the Chicago d e p a r t m e n t a l office w h e r e the s e r i a l n u m b e r s a r e p o s t e d to n u m e r i c a l
r e g i s t e r s , and the p o s t i n g s a r e v e r i f i e d . The following s t a t e m e n t
shows the s t a t u s of the p o s t i n g of all s e r i e s of r e t i r e d savings b o n d s .
Retired savings bonds of all series recorded in Chicago
Office (In millions of pieces)
Period
Cumulative through June 30, 1949
Fiscal year:
1950
1951
•
.
1952
1953...
1954
Total
Number of •
retired
bonds
reported
,...
;
,..,.,
Status of posting
Posted
Verified
Unposted
Unverified
784.1
781.7
775.7
2.4
6.0
82.6
89.8
85.5
87.7
94.6
81.2
90.7
88.1
88.0
89.9
82.2
93.4
88.2
87.5
88.7
3.8
2.9
.3
4.7
5.0
2.3
2.2
2.7
3.9
1,224.3
1,219.6
1,215.7
4.7
3.9
Of the 90.5 m i l l i o n S e r i e s A - E s a v i n g s bonds r e d e e m e d p r i o r to
r e l e a s e of r e g i s t r a t i o n and r e c e i v e d In the r e g i o n a l offices during
the y e a r , 87.4 m i l l i o n , o r 96.6 p e r c e n t , w e r e r e d e e m e d by 17,500
paying a g e n t s , who w e r e r e i m b u r s e d for this s e r v i c e In each
q u a r t e r - y e a r at the r a t e of 15 cents e a c h for the f i r s t 1,000 bonds
paid and 10 c e n t s e a c h for all o v e r the f i r s t 1,000. The t o t a l a m o u n t
paid to a g e n t s on t h i s account d u r i n g the y e a r was $10,829,832,
which was at the a v e r a g e r a t e of 12.41 c e n t s p e r bond.
118
1954 REPORT OF THE SECRETARY OF THE TREASURY
On D e c e m b e r 29, 1953, the T r e a s u r y announced t h a t , as a f u r t h e r
s t e p t o w a r d s r e d u c i n g c o s t s of o p e r a t i o n s . It was w i t h d r a w i n g
s a v i n g s bonds f r o m s a l e at l o c a l p o s t offices In c o m m u n i t i e s w h e r e
o t h e r savings bonds a g e n t s , s u c h as banks o r o t h e r financial I n s t i t u t i o n s and b u s i n e s s f i r m s with p a y r o l l s a v i n g s p l a n s , p r o v i d e
a d e q u a t e I s s u i n g f a c i l i t i e s . The p o s t offices, c o m p r i s i n g 5 4 p e r c e n t
of the t o t a l n u m b e r of I s s u i n g a g e n t s , w e r e accounting for l e s s than
7 p e r c e n t of the a m o u n t of the annual s a l e s of s a v i n g s b o n d s . They
will continue to s e l l United S t a t e s s a v i n g s s t a n i p s and a l s o will
continue to p r o v i d e I n f o r m a t i o n as to w h e r e s a v i n g s bonds m a y be
purchased.
The following t a b l e shows the n u m b e r of I s s u i n g and paying
a g e n t s for S e r i e s A - E s a v i n g s b o n d s , by c l a s s e s .
Jujie 30
Post
offices
Banks
Building
and savings and
loan associations
Credit
unions
Companies
operating
payroll
plans
All
others
Total
Issuing agents
1950
1951
1952
1953
1954
25,060
24,720
24,434
24,415
^ 3,198
15,225
15,276
15,333
15,380
15,607
1,557
1,551
1,559
1,536
1,534
522
511
503
464
440
3,052
3,071
3,090
3,039
2,997
550
640
594
591
606
45,966
45,769
45,513
45,425
24,382
57
59
57
57
55
16,691
16,866
17,023
17,143
17,519
Paying agents
1953
15,623
15,747
15,851
15,906
16,220
874
922
976
1,042
1,106
137
138
139
138
138
Estimated by the Post Office Department.
D u r i n g the f i s c a l y e a r 1954, 8,034,094 I n t e r e s t c h e c k s w e r e I s s u e d
on c u r r e n t I n c o m e type s a v i n g s bonds with a v a l u e of $ 4 2 8 , 7 4 7 , 7 3 9 .
This was a d e c r e a s e of 380,294 c h e c k s f r o m the n u m b e r I s s u e d
d u r i n g 1953, and a d e c r e a s e of $ 3 5 , 3 2 8 , 4 3 7 . As of-June 30, 1954,
t h e r e w e r e 2,642,602 active a c c o u n t s with o w n e r s of t h i s type of s a v i n g s b o n d s , a d e c r e a s e of 41,218 a c c o u n t s f r o m the p r e v i o u s y e a r .
T h e r e w a s a r e d u c t i o n of 256,081 in a c c o u n t s of S e r i e s G bonds
w h i c h have b e e n m a t u r i n g since May 1, 1953, and an I n c r e a s e of
162,939 in a c c o u n t s of S e r i e s H b o n d s , which w e r e f i r s t sold on
June 1, 1952, and 51,924 in a c c o u n t s of S e r i e s K bonds which w e r e
f i r s t sold on May 1, 1952.
T h e r e w e r e 45,548 a p p l i c a t i o n s d u r i n g the y e a r for t h e I s s u e of
d u p l i c a t e s of l o s t , s t o l e n , o r d e s t r o y e d s a v i n g s b o n d s . In addition
to 1,546 c a s e s on hand at the beginning of the y e a r , m a k i n g a t o t a l
of 47,094 c a s e s . In 28,207 c a s e s the bonds w e r e r e c o v e r e d , and In
17,080 c a s e s the I s s u a n c e of d u p l i c a t e s e c u r i t i e s was a u t h o r i z e d .
On J u n e 30, 1954, 1,807 c a s e s r e m a i n e d u n s e t t l e d .
R e g i s t e r e d a c c o u n t s o t h e r t h a n s a v i n g s b o n d s . - - D u r i n g the y e a r
25,400 Individual a c c o u n t s c o v e r i n g publicly held r e g i s t e r e d s e c u r i -
ADMINISTRATIVE REPORTS
119
t i e s o t h e r than s a v i n g s bonds w e r e opened and 56,000 w e r e c l o s e d .
T h i s r e d u c e d the t o t a l of open accounts on J u n e 30, 1953, to 278,400
s u c h a c c o u n t s open on J u n e 30, 1954, c o v e r i n g r e g i s t e r e d s e c u r i t i e s
In t h e p r i n c i p a l amount of $ 2 0 . 8 billion. I n t e r e s t c h e c k s t o t a l i n g
541,000 w e r e I s s u e d to o w n e r s of r e c o r d d u r i n g t h c y e a r , a d e c r e a s e
of 44,000 f r o m 1953.
R e d e e m e d c u r r e n c y . - - O n J u l y 1, 1953, the D i v i s i o n of Loans and
C u r r e n c y (Washington) had on hand 23,752 unaudited bundles (4,000
h a l f - n o t e s each) of United S t a t e s c u r r e n c y t h a t had b e e n r e t i r e d
f r o m c i r c u l a t i o n as unfit. During J u l y 1953, 1,508 bundles w e r e
r e c e i v e d , m a k i n g a t o t a l of 25,260 bundles to be audited. The audit
was c o m p l e t e d by t h e m i d d l e of August, which ended t h i s o p e r a t i o n
In the Division of L o a n s and C u r r e n c y .
OFFICE OF THE TREASURER OF THE UNITED STATES
The T r e a s u r e r of the United S t a t e s Is the officer of thc G o v e r n m e n t c h a r g e d by law with t h c r e c e i p t , custody, and d i s b u r s e m e n t
upon p r o p e r o r d e r of the public m o n e y s . The T r e a s u r e r Is r e q u i r e d
to k e e p a c c u r a t e r e c o r d s as to the s o u r c e , location, and d i s p o s i t i o n
of the funds and to m a k e p e r i o d i c r e p o r t s t h e r e o f as r e q u i r e d by
law and a d m i n i s t r a t i v e a u t h o r i t y .
Although the T r e a s u r e r m a i n t a i n s no b r a n c h o r field offices,
f a c i l i t i e s for c e r t a i n o p e r a t i o n s a r e p r o v i d e d G o v e r n m e n t offices
by the F e d e r a l R e s e r v e B a n k s , acting a s agents of and u n d e r the
s u p e r v i s i o n of the T r e a s u r e r . T h r o u g h t h e s e m e a n s m i l l i o n s of
financial t r a n s a c t i o n s involved in the d a y - t o - d a y b u s i n e s s life of
the Nation a r e handled p r o m p t l y and efficiently. The p r o c e d u r e s
followed by the Banks In the p e r f o r m a n c e of t h e s e o p e r a t i o n s a r e
e s s e n t i a l l y the s a m e a s t h o s e in the Washington office.
Specifically, the T r e a s u r e r m a i n t a i n s c u r r e n t accounts of a l l
r e c e i p t s and e x p e n d i t u r e s ; pays t h c p r i n c i p a l and I n t e r e s t on the
public debt; p r o v i d e s c h e c k i n g account f a c i l i t i e s for G o v e r n m e n t
d i s b u r s i n g o f f i c e r s , c o r p o r a t i o n s , and a g e n c i e s ; pays c h e c k s d r a w n
on the T r e a s u r e r of the United S t a t e s ; p r o c u r e s , s t o r e s . I s s u e s ,
and r e d e e m s Unltfed S t a t e s c u r r e n c y ; audits r e d e e m e d F e d e r a l
R e s e r v e c u r r e n c y ; e x a m i n e s and d e t e r m i n e s the value of m u t i l a t e d
c u r r e n c y ; a c t s as s p e c i a l agent for the p a y m e n t of p r i n c i p a l and
I n t e r e s t on c e r t a i n obligations of c o r p o r a t i o n s of the United S t a t e s
G o v e r n m e n t , P u e r t o R i c o , and t h e P h i l i p p i n e I s l a n d s ; and m a i n t a i n s
f a c i l i t i e s In the Main T r e a s u r y building for (a) the deposit of public
m o n e y s by G o v e r n m e n t o f f i c e r s , (b) the c a s h i n g of United States
s a v i n g s b o n d s , and c h e c k s d r a w n o n t h e T r e a s u r e r , (c) the r e c e i p t
of e x c e s s a n d / o r unfit c u r r e n c y and coins f r o m l o c a l c o n c e r n s and
b a n k s , and (d) the conduct of c e r t a i n t r a n s a c t i o n s In public debt
s e c u r i t i e s for the p u b l i c . Including s a f e k e e p i n g of United S t a t e s
s a v i n g s b o n d s . The Office of the T r e a s u r e r p r e p a r e s the " D a l l y
S t a t e m e n t of the United S t a t e s T r e a s u r y , " the monthly S t a t e m e n t
of the P u b l i c Debt, arid the m o n t h l y " C i r c u l a t i o n S t a t e m e n t of
United States M o n e y . "
120
1954 REPORT OF THE SECRETARY OF THE TREASURY
U n d e r a u t h o r i t y d e l e g a t e d b y t h e C o m p t r o l l e r G e n e r a l of t h e
United States, the T r e a s u r e r p r o c e s s e s c l a i m s arising from the
f o r g e r y of e n d o r s e m e n t s a n d o t h e r I r r e g u l a r i t i e s I n v o l v i n g c h e c k s
p a i d b y t h e T r e a s u r e r a n d , i n t h e c a s e of u n p a i d c h e c k s w h i c h a r e
l o s t o r d e s t r o y e d . I n s t r u c t s t h e c l a i m a n t s a s t o t h e m a n n e r of
obtaining substitute checks.
T h e T r e a s u r e r of t h e U n i t e d S t a t e s I s a l s o T r e a s u r e r o f t h e B o a r d
of T r u s t e e s of t h e P o s t a l S a v i n g s S y s t e m , t r u s t e e f o r b o n d s h e l d t o
s e c u r e p u b l i c d e p o s i t s In c o m m e r c i a l b a n k s a n d bonds h e l d to
s e c u r e p o s t a l s a v i n g s o n d e p o s i t I n s u c h b a n k s , a n d c u s t o d i a n of
m i s c e l l a n e o u s s e c u r i t i e s and t r u s t funds.
M a n a g e m e n t I m p r o v e m e n t . - - T h e O f f i c e of t h e T r e a s u r e r c o n tinued its active p a r t i c i p a t i o n In the m a n a g e m e n t I m p r o v e m e n t
p r o g r a m d u r i n g t h e f i s c a l y e a r 1954 a n d m a d e n u m e r o u s c h a n g e s
r e s u l t i n g In I m p r o v e m e n t s In o p e r a t i o n s and m o r e efficient s e r v i c e
to the Government and to the public. Although practically all funct i o n s of t h e O f f i c e h a v e b e e n p e r f o r m e d s i n c e 1 7 7 8 , a s s p e c i f i e d
b y l e g i s l a t i o n , It h a s b e e n p o s s i b l e b y c o n t i n u o u s a p p l i c a t i o n of
m a n a g e m e n t t e c h n i q u e s a n d t h e I n t r o d u c t i o n of m o d e r n m e t h o d s a n d
e q u i p m e n t t o k e e p p a c e w i t h t h e e v e r I n c r e a s i n g n u m b e r of f i n a n c i a l
t r a n s a c t i o n s of t h e G o v e r n m e n t .
N u m e r o u s p r o c e d u r a l c h a n g e s h a v e r e s u l t e d In I n c r e a s e d effic i e n c y In t h e c h e c k p a y m e n t o p e r a t i o n . D i s b u r s i n g a c c o u n t s I n v o l v i n g
t h e I s s u a n c e of a p p r o x i m a t e l y 2 , 0 0 0 , 0 0 0 c h e c k s a n n u a l l y w e r e c o n v e r t e d d u r i n g the y e a r f r o m p a p e r to c a r d c h e c k f o r m . C a r d c h e c k s
a r e c o n s i d e r a b l y m o r e e c o n o m i c a l to p r o c e s s . The r e p l a c e m e n t
of v a r i o u s m a c h i n e s b y m o r e m o d e r n a n d f a s t e r e q u i p m e n t a l s o
c o n t r i b u t e d t o w a r d t h e I n c r e a s e d e f f i c i e n c y a n d s p e e d of t h e c h e c k
p a y m e n t o p e r a t i o n both In W a s h i n g t o n and t h e F e d e r a l R e s e r v e
Banks.
T h e c r e a t i o n of t w o s e p a r a t e d i v i s i o n s t o p e r f o r m t h e c h e c k
p a y m e n t and check c l a i m s functions p r e v i o u s l y p e r f o r m e d by a
s i n g l e d i v i s i o n h a s r e s u l t e d I n c l e a r e r d e f i n i t i o n of l i n e s of a u t h o r i t y
and responsibility and m o r e efficient o p e r a t i o n s .
T h e r e c o r d s a d m i n i s t r a t i o n p r o g r a m of t h e O f f i c e w a s r e v i e w e d
t h o r o u g h l y d u r i n g the y e a r . A r e v i s e d flling s y s t e m , the e l i m i n a t i o n
of c o n s i d e r a b l e n o n r e c o r d m a t e r i a l f r o m t h e p e r m a n e n t f i l e s ,
e l i m i n a t i o n of d u p l i c a t e f i l e s , ' a n d t h e e s t a b l i s h m e n t of a c o m p l e t e
r e t e n t i o n s c h e d u l e h a v e r e s u l t e d In s o m e r e d u c t i o n In p e r s o n n e l
and s u b s t a n t i a l s a v i n g s In s u p p l i e s and e q u i p m e n t .
The m a n a g e m e n t Improvement p r o g r a m has been supplemented
b y s u p e r v i s o r y t r a i n i n g a h d s t i m u l a t i o n of t h e w o r k s i m p l i f i c a t i o n
and Incentive awards p r o g r a m s .
Money r e c e i v e d and d i s b u r s e d by the T r e a s u r e r . - - M o n e y s c o l ic ctednby^Tjov^¥nrn^rS~offi
T r e a s u r e r at
W a s h i n g t o n , In F e d e r a l R e s e r v e B a n k s , a n d In d e s i g n a t e d G o v e r n m e n t d e p o s i t a r i e s f o r c r e d i t of t h e a c c o u n t of t h e T r e a s u r e r of t h e
United States, and all payments a r e charged against this account.
T o t a l m o n e y s r e c e i v e d and d i s b u r s e d for t h e f i s c a l y e a r s 1953 and
1954 a r e s h o w n In t h e following t a b l e on t h e b a s i s o f t h e " F i n a l
S t a t e m e n t of R e c e i p t s a n d E x p e n d i t u r e s of t h e U n i t e d S t a t e s G o v e r n m e n t " for the f i s c a l y e a r 1954.
121
ADMINISTRATIVE REPORTS
Receipts, expenditures, and general fund balance
Receipts:
Budgetary (net)^
1953
1954
$64,825,04^,026
8,929,289,228
158,877,189,562
$64,655,386,989
9,155,358 424
181,979 465 460
Subtotal
232,631,522,816
6,968,827,603
255 790 PIO 873
4,670,248,248
Total
239,600,350,419
260,460 459 121
74,274,257,484
5,168,818,039
3,300,585,125
67 772 353 245
6,769,321,623
2,054,365,867
25,214,084
249,920,729'
(5)
151,911,306,710
3,908,850
46,437,531
256,588,953
176 790 927 991
234,930,102,171
4,670,248,248
253,694,004,060
6,766,455,061
239,600,350,419
260,460,459,121
Public debt-'
Expenditures:
Budgetary^
.
-
Investments of Government agencies in public debt securities (net)..
Sales and redemptions of obligations of Government agencies in
raeirket (net)
Changes in accounts necessary to reconcile to Treasury cash
Increase in balance of cash held outside the Treasury
Public debt"'
Subtotal
Balance in general fund at close of year
Total
NOTE.—This table is based on the- "Final Statement of Receipts and Expenditures of the United States Government" for the period from July 1, 1953, through June 30, 1954, which was released on November 29, 1954.
^ Total budget receipts less appropriations of receipts to the Federal old-age and survivors insurance trust
fund and the railroad retirement account and refunds of receipts. For details of receipts for 1954, see table 3.
^ For details for 1954, see table 4.
^ For details for 1954, see table 28.
" See table 1, footnote 3. For details for 1954, see table 3.
^
' Not available.
A s s e t s and l i a b i l i t i e s o f t h e T r e a s u r e r ' s a c c o u n t s . - - T h e a s s e t s
of the T r e a s u r e r c o n s i s t of gold and s i l v e r bullion, coin and p a p e r
c u r r e n c y , d e p o s i t s In F e d e r a l R e s e r v e B a n k s , and d e p o s i t s in the
c o m m e r c i a l banks d e s i g n a t e d as G o v e r n m e n t d e p o s i t a r i e s .
A s u m m a r y of the a s s e t s a n d i i a b i l i t i e s I n t h e T r e a s u r e r ' s a c c o u n t s at the c l o s e of the f i s c a l y e a r s 1953 and 1954 Is shown In
t a b l e 50.
G o l d . - - G o l d r e c e i p t s d u r i n g 1954 a m o u n t e d to $67.4 m i l l i o n and
d i s b u r s e m e n t s t o t a l e d $ 6 0 3 . 3 m l l l l o n , a net d e c r e a s e of $535.9
m i l l i o n . This d e c r e a s e b r o u g h t the t o t a l gold a s s e t s to $21,926.7
m i l l i o n on J u n e 30, 1954. L i a b i l i t i e s a g a i n s t t h e s e a s s e t s w e r e
$21,274.0 m i l l i o n of gold c e r t i f i c a t e s and c r e d i t s payable In gold
c e r t i f i c a t e s and $ 1 5 6 . 0 m i l l i o n for gold r e s e r v e a g a i n s t c u r r e n c y .
The gold b a l a n c e In the g e n e r a l fund on J u n e 30, 1954, was $ 4 9 6 . 7 .
C r e d i t s during the y e a r on account of I n c r e m e n t r e s u l t i n g f r o m
the r e d u c t i o n In weight of the gold d o l l a r in 1934 amounted to
$ 6 9 , 0 5 8 . 4 3 . This m a k e s a t o t a l I n c r e m e n t from 1934 t h r o u g h the
f i s c a l y e a r 1954 of $ 2 , 8 1 9 , 4 5 5 , 8 9 5 . 8 9 .
S l i v e r . - - D u r i n g the y e a r 24.2 m i l l i o n ounces of s i l v e r buillon,
which had b e e n c a r r i e d In the g e n e r a l fund at a c o s t of $ 2 1 . 9
m i l l i o n , w e r e m o n e t i z e d at a m o n e t a r y value of $ 31.3 m i l l i o n . This
$ 3 1 . 3 m i l l i o n I n c r e a s e In s l i v e r a s s e t s was offset by a d e c r e a s e o f
$ 1 0 . 5 m i l l i o n In holdings of s i l v e r d o l l a r s , m a k i n g a net I n c r e a s e
of $ 2 0 . 8 m i l l i o n In a s s e t s d u r i n g the y e a r . As of J u n e 30, 1954, the
1954 REPORT OF THE SECRETARY OF THE TREASURY
122
s i l v e r a s s e t s of the T r e a s u r e r ( e x c l u s i v e of s u b s i d i a r y coin and
bullion held In the g e n e r a l fund at cost) a m o u n t e d to $ 2 , 4 3 3 . 6
million.
L i a b i l i t i e s a g a i n s t s l i v e r at the end of the y e a r a m o u n t e d to
$ 2 , 3 9 3 . 9 m i l l i o n for s l i v e r c e r t i f i c a t e s outstanding and $ 1 . 1
m i l l i o n for T r e a s u r y n o t e s of 1890 o u t s t a n d i n g , leaving a net
b a l a n c e of $ 3 8 . 5 m i l l i o n In t h e g e n e r a l fund.
The s i l v e r bullion held in the g e n e r a l f u n d at c o s t value (exclusive
o f t h e $38.5 m i l l i o n at m o n e t a r y value) d e c r e a s e d f r o m $ 3 3 . 5 m i l l i o n
on J u n e 30, 1953, to $ 1 3 . 7 m i l l i o n on J u n e 30, 1954. This d e c r e a s e
of $ 1 9 . 9 m i l l i o n Is a c c o u n t e d for as follows: $33.6 m i l l i o n net p u r c h a s e s of s l i v e r l e s s $ 2 1 . 9 m i l l i o n of s l i v e r m o n e t i z e d and l e s s
$ 3 1 . 6 m i l l i o n of s l i v e r u s e d for c o i n a g e .
P a p e r c u r r e n c y . - - U n d e r the laws of the United States the T r e a s u r e r Is t h e agent for the I s s u e and r e d e m p t i o n of United States
c u r r e n c y and c o i n .
Table 89 shows by c l a s s and d e n o m i n a t i o n the v a l u e of p a p e r
c u r r e n c y I s s u e d and r e d e e m e d d u r i n g t h e f i s c a l y e a r 1954, and t h e
a m o u n t s outstanding at the end of the f i s c a l y e a r .
A c o m p a r i s o n of t h e a m o u n t s of p a p e r c u r r e n c y of all c l a s s e s
I s s u e d , r e d e e m e d , and o u t s t a n d i n g , follows:
Fiscal year 1953
Pieces
Outstanding at beginning of,year...
Issues during year
Redemptions during year
Outstanding at end of year
3,117,981,620
1,926,560,815
1,847,822,336
3,196,720,099
Amount
$31,621,651,824
9,182,608,000
8,236,669,767
32,567,590,057
Fiscal year 1954
Pieces
3,196,720,099
1,804,647,078
1,826,580,083
3,174,787,094
Amount
$32,567,590,057
9,057,038,000
9,220,725,519
32,403,902,538
F o r f u r t h e r d e t a i l s on s t o c k and c i r c u l a t i o n of m o n e y In the
United S t a t e s , s e e t a b l e s 84 to 8 8 .
D e p o s i t a r i e s . - - T h e following t a b l e shows t h e n u m b e r of e a c h
c l a s s of d e p o s i t a r i e s and b a l a n c e s a s of J u n e 30, 1954.
Deposits to the
credit of the
Treasurer, U. S.,
June 30, 1954
Federal Reserve Banks and branches
;
Other-banks in continental United States:
General depositaries
Special depositaries. Treasury tax and loan accounts
Insular and territorial depositaries
'
.
Foreign depositaries^
Total
,
$1,149,307,761.11
383,322,175.89
4,835,898,773.57
49,290,949.06
87,611,420.83
6,505,431,080.46
• Does not include limited depositaries which have been designated for the sole purpose of receiving de'
•
posits made by Government officers for credit in their official checking accounts with such depositaries and
which are not authorized to accept deposits for credit of the Treasurer of the United States.
^ Principally branches of institutions in the United "States.
F o r d e t a i l s on t h e a d m i n i s t r a t i v e w o r k r e l a t i n g to d e s i g n a t i o n
of d e p o s i t a r i e s , s e e page 102.
Checking a c c o u n t s of d i s b u r s i n g officers and a g e n c i e s . - - A s of
J u n e 30, 1954, the T r e a s u r e r m a i n t a i n e d 4,081 checking a c c o u n t s
ADMINISTRATIVE REPORTS
123
of d i s b u r s i n g o f f i c e r s and F e d e r a l a g e n c i e s . The n u m b e r of d i s b u r s i n g o f f i c e r s ' a c c o u n t s by c l a s s e s as of J u n e 30, 1953 and 1954,
and thc n u m b e r of c h e c k s paid d u r i n g the f i s c a l y e a r s 1953 and
1954 w e r e as follows:
1953
Disbursing
officers
Treasury
Army
Navy
Air Force
Other
Total...
Number of
disbursing
officers'
accounts
1954
Number
of
checks
paid
Number of
disbursing
officers'
accounts
Nvimber
of
checks
paid
429
497
1,938
421
1,402
193,803,082
39,151,883
37,020,703
20,115,182
25,276,723
370
440
1,595
362
1,314
203,120,050
34,120,687
35,824,413
19,125,543
28,011,508
4,687
315,367,573
4,081
320,202,201
O f t h e 320,202,201 c h e c k s paid I n t h e l a s t f i s c a l y e a r , 255,577,741
w e r e paid by the F e d e r a l R e s e r v e Banks and the Manila B r a n c h
of the N a t i o n a l City Bank of New Y o r k acting as f i s c a l agents of
t h e T r e a s u r e r and the r e m a i n i n g 64,624,460 c h e c k s w e r e paid by
t h e T r e a s u r e r In Washington.
The eimount to t h c c r e d i t of the c h e c k i n g a c c o u n t s of d i s b u r s i n g
officers and a g e n c i e s on the books o f t h e T r e a s u r e r of the United
S t a t e s on J u n e 30, 1954, was $83,661,459,976 as c o m p a r e d with
$89,170,018,085 on J u n e 30, 1953.
Check c l a i m s . - - D u r i n g che y e a r the T r e a s u r e r of the United
S t a t e s I s s u e d 20,634 c h e c k s totaling $1,847,484 In s e t t l e m e n t of
c l a i m s for the p r o c e e d s of c h e c k s which had b e e n paid b e a r i n g
f o r g e d o r u n a u t h o r i z e d e n d o r s e m e n t s . Outstanding check c l a i m s
w e r e p r o c e s s e d , r e s u l t i n g In the Chief D i s b u r s i n g O f f i c e r ' s I s s u a n c e of 43,586 s u b s t i t u t e c h e c k s t o t a l i n g $29,067,542 to r e p l a c e
c h e c k s which had not b e e n r e c e i v e d , o r w e r e l o s t o r d e s t r o y e d .
Under an additional d e l e g a t i o n of a u t h o r i t y f r o m the C o m p t r o l l e r
G e n e r a l of the United S t a t e s , dated O c t o b e r 1, 1953, all paid check
c l a i m s now a r e p r o c e s s e d , u n l e s s o t h e r w i s e specifically p r o v i d e d
by law, f r o m Inception to final c o n c l u s i o n by the T r e a s u r e r o f t h e
United S t a t e s . C a s e s Involving f o r g e r i e s a r e I n v e s t i g a t e d by t h e
United S t a t e s S e c r e t S e r v i c e ; I n f o r m a t i o n r e l a t i v e to such c a s e s Is
c o n t a i n e d In t h e r e p o r t of t h a t S e r v i c e .
On July 1, 1953, the T r e a s u r e r of the United S t a t e s a s s u m e d the
duty of developing and adjudicating c l a i m s for the p r o c e e d s of paid
P h i l i p p i n e w a r dajnage and V e t e r a n s A d m i n i s t r a t i o n d e p o s i t a r y
c h e c k s d r a w n by the Chief D i s b u r s i n g Officer payable to r e s i d e n t s
of the P h i l i p p i n e s In Indigenous c u r r e n c y . D u r i n g the y e a r , 1,455
d i s b u r s e m e n t s w e r e c e r t i f i e d In t h e t o t a l s u m of 629,212 p e s o s .
In addition to the c l a i m s p r o c e s s e d to final s e t t l e m e n t by the
T r e a s u r e r , m a n y o t h e r c l a i m s w e r e w i t h d r a w n o r w e r e not h o n o r e d
b e c a u s e they w e r e not well founded.
T r e a s u r e r ' s Cash Room.--The commercial checks, drafts, postal
e x p r e s s m o n e y o r d e r s , e t c . , d e p o s i t e d by G o v e r n m e n t officers with
t h c T r e a s u r e r ' s C a s h R o o m In Washington for collection a g g r e g a t e d
4,938,834 I t e m s for t h c f i s c a l y e a r 1954, as c o m p a r e d with 4,040,506
I t e m s for the f i s c a l y e a r 1953.
124
1954 REPORT OF THE SECRETARY OF THE TREASURY
S e c u r i t i e s held In s a f e k e e p i n g . - - T h e face value of s e c u r i t i e s held
by the T r e a s u r e r In s a f e k e e p i n g as of J u n e 30, 1953 and 1954, Is
shown In the following t a b l e .
Purpose for which held
June 30, 1954
June 30, 1953
To secure deposits of public moneys in depositary banks
To secure deposits of postal savings funds
For the Board of Trustees, Postal Savings System
For District of Columbia:
Sinking fund
Teachers• retirement and annuity fund
Relief and rehabilitation fund
Other
For the Secretary of the Treasury:
Foreign obligations
Capital stock and obligations of Government corporations and
agencies
Other
For Federal Deposit Insurance Corporation
Indian trust funds
United States savings bonds held for various depositors
Miscellaneous
$439,809,100
30,911,450
1,703,927,080 '
$478,410,800
33,728,600
1,972,552,340
104,420
23,460,000
827,375
8,729,700
12,118,237,852
12,001,497,132
11,780,188,096
3,290,288,868
1,336,700,000
34,076,405
45,223,845
104,573,951
12,609,775,006
3,423,957,757
1,376,870,000
,31,831,105
44,276,460
• 123,028^376
31,223,479,327
Total
104,420
21,810,000
757,950
6,826,200
31,819,004,961
Savings bonds p l a c e d In safekeeping with the T r e a s u r e r and t h o s e
w i t h d r a w n w e r e as follows:
Number
1953
1954
594,796
57,335
570,831
54,000
652,131
81,300
624,831
72,869
570,831
In safekeeping at beginning of year
Placed in safekeeping
551,962
S e r v i c i n g of s e c u r i t i e s for F e d e r a l a g e n c i e s a n d f o r c e r t a i n o t h e r
g o v e r n m e n t s . - - I n a c c o r d a n c e with a g r e e m e n t s b e t w e e n the S e c r e t a r y of the T r e a s u r y and v a r i o u s G o v e r n m e n t c o r p o r a t i o n s and
a g e n c i e s and P u e r t o R i c o , the T r e a s u r e r of the United S t a t e s a c t s
as s p e c i a l agent for the p a y m e n t of p r i n c i p a l of and I n t e r e s t on
t h e i r s e c u r i t i e s (including p r e - 1 9 3 4 bonds of the Philippine G o v e r n m e n t ) . The a m o u n t s of s u c h p a y m e n t s d u r i n g the f i s c a l y e a r 1954,
on the b a s i s of the dally T r e a s u r y s t a t e m e n t , w e r e as follows:
Principal
Federal home loan banks
Federal farm loan bonds
Federal Farm Mortgage Corporation
Federal Housing Administration
Home Owners' Loan Corporation
Philippine Islands
Puerto Ri CO
Total.
..
Interest paid
in cash
Registered
interest
Coupon
interest
$593,440,000
49,900
51,400
16,818,700
116,250
145,000
378,500
$9,319,350.38
45.00
131.26
109,280.22
57.50
4,285.00
5,490.00
75,247.50
10 756 20
173,032 50
317,877.50
610,999,750
9,433,149.36
3,005,152.53
20,678,715.11
$795,418.96
$20,174,340.57
2,708 34
2,128,996.07
125
ADMINISTRATIVE R E P O R T S
INTERNAL REVENUE SERVICE^
The I n t e r n a l R e v e n u e S e r v i c e Is r e s p o n s i b l e for the c o l l e c t i o n
of the I n t e r n a l r e v e n u e and for the e n f o r c e m e n t of the I n t e r n a l
r e v e n u e laws and c e r t a i n o t h e r s t a t u t e s . T h e s e o t h e r s t a t u t e s I n clude the F e d e r a l Alcohol A d m i n i s t r a t i o n Act ( 2 7 U . S . C. 201-212);
t h e L i q u o r E n f o r c e m e n t Act of 1936 (18 U. S. C. 1261, 1262, 3615);
the F e d e r a l F i r e a r m s Act (15 U. S. C. 9 0 1 - 9 0 9 ) , and the National
F i r e a r m s Act (26 U. S. C. 2721).
R e v i e w of o p e r a t i o n s
C o l l e c t i o n s . - - I n t e r n a l r e v e n u e c o l l e c t i o n s for the f l s c a l y e a r 1954
t o t a l e d a l m o s t $ 7 0 billion, a slight I n c r e a s e o v e r the p r e c e d i n g y e a r ,
and the l a r g e s t amount of I n t e r n a l r e v e n u e e v e r c o l l e c t e d d u r i n g any
year.
C o l l e c t i o n s by t a x s o u r c e s for the f i s c a l y e a r s 1929-54 a r e shown
In d e t a i l in t a b l e 10 in the t a b l e s s e c t i o n of t h i s r e p o r t . A c o m p a r i s o n
of c o l l e c t i o n s f r o m the p r i n c i p a l s o u r c e s of t a x r e v e n u e for the f i s c a l
y e a r s 1953 and 1954 follows:
Comparison of collections from the principal sources of tax revenue for the fiscal years 1953 and 1954
1953
1954
Source
In thousand of dollars
Income and prpfits taxes:
Corporation
Individual:
Withheld by employer^
Other^
21,594,515
21,546,322
r 21,132,275
11,403,942
22,076,329
10,736 578
^ 54,130,732
54,359,229
3,816,252
^ 273,182
628,969
4,219,304
283,882
605,221
Total employment taxes
" 4,718,403
^
5,108,407
Miscellaneous internal revenue:
Estate and gift taxes
Alcohol taxes
Tobacco taxes
,
Stamp taxes;
Memufacturers' excise taxes
Retailers' excise taxes
Miscellaneous taxes^
891,284
2,780,925
1,654,911
90,319
2,862,788
r 496,009
^ 2,061,164
935 121
2,783,012
1,580,229
90,000
2,688,262
438,332
1,937,399
•
Total income and profits taxes
Employment taxes:
Old-age insurance^
.
•
Carriers taxes—old-age benefits
Total miscellaneous internal revenue
;.
^ 10,837,401
10,452 354
^ 69,686,535
69,919,991
NOIE.—These figures are from Iuternal Revenue Service reports of collections and are not directly comparable to budget receipts from internal revenue as reported in other tables. The differences arise chiefly
because certain taxes paid currently into Treasury depositaries were not taken into account by the Internal
Revenue Service until the quarterly returns supported by the depositary receipts were received in internal
revenue offices. Under revised accounting procedures effective July 1, 1954, this practice will no longer
be followed and tax payments made to Treasury depositaries will be included in Internal Revenue Service reports for the month in which the depositary receipts are issued. As of June 30, 1954, the amount of depositary receipts issued by Federal Reserve Banks, but not taken into account by internal revenue offices,
totaled $3,944 million. No allowance is made in this table' for the difference between these depositary receipts and those outstanding at the beginning of the year.
^ Revised.
^ Estimated, for purposes of comparison with earlier years. Beginning January 1951, collections of tax
witliheld are not separated as between income tax and old-age insurance. The collections of old-age insurance
tax imposed in self-employment income for taxable years beginning after December 31, 1950, are reported in
combination with individual income tax other than tax withheld. The figures shown reflect the estimated components of the combined amounts.
^ Includes repealed taxes.
iMore detailed information will be found in the separate Annual Report of the Commissioner of Internal Revenue for the fiscal year 1954. The Bureau of Internal Revehue was designated as the "Internal Revenue Service" by Treasury Department Order No. 150-29, dated July 9, 1953.
339256 O - 55 - 10
1954 REPORT OF THE SECRETARY OF THE TREASURY
126
Workload. - - The I n t e r n a l Revenue S e r v i c e w o r k l o a d continued at
the high l e v e l s of r e c e n t y e a r s as 89 m i l l i o n t a x r e t u r n s of all t y p e s
w e r e flled d u r i n g the f i s c a l y e a r 1954, In addition to 230 m i l l i o n
d i r e c t l y r e l a t e d I n f o r m a t i o n d o c u m e n t s . The t a x e s r e p o r t e d on t h e s e
r e t u r n s w e r e a s s e s s e d and accounting o p e r a t i o n s w e r e p e r f o r m e d
In c o n n e c t i o n with the a m o u n t s paid In. In addition, the I n c o m e t a x
liability was c o m p u t e d for 11 m i l l i o n t a x p a y e r s flling r e t u r n s on
F o r m 1040A, and I n c o m e t a x refunds and c r e d i t s w e r e s c h e d u l e d
for the m o r e t h a n 32 m i l l i o n Individuals whose p r e p a y m e n t s e x c e e d e d
their liabilities.
V e r i f i c a t i o n of t h e m a t h e m a t i c a l s t e p s shown In the t a x p a y e r s '
c o m p u t a t i o n s on 48,857,246 I n c o m e t a x r e t u r n s r e s u l t e d In t a x
c h a n g e s on 1,276,355 r e t u r n s , with t a x I n c r e a s e s a g g r e g a t i n g
$78,487,849 and t a x d e c r e a s e s totaling $ 1 8 , 9 9 5 , 0 9 5 . F o l l o w i n g the
m a t h c n ^ a t l c a l v e r i f i c a t i o n a p r e l i m i n a r y I n s p e c t i o n of the r e t u r n s
was m a d e for t h e p u r p o s e of Identifying and s e g r e g a t i n g the r e t u r n s
which a r e b e l i e v e d to be m o s t In n e e d of c o r r e c t i o n f r o m the s t a n d point of n o n c o m p l i a n c e with I n t e r n a l r e v e n u e l a w s . T h e s e r e t u r n s ,
t o g e t h e r with t h o s e r e q u i r i n g I n v e s t i g a t i o n b e c a u s e of t a x p a y e r s '
c l a i m s , offers In c o m p r o m i s e , o r o t h e r f e a t u r e s which m a d e e x a m i n a t i o n m a n d a t o r y , w e r e r e f e r r e d to e x a m i n i n g officers for m o r e
thorough consideration.
Enforcement a c t i v i t i e s . - - T h e additional tax, penalty, a n d i n t e r e s t
r e s u l t i n g f r o m audits and I n v e s t i g a t i o n s of all c l a s s e s of r e t u r n s ,
Including fraud and r a c k e t e e r I n v e s t i g a t i o n s , and m a t h e m a t i c a l v e r i fications t o t a l e d $1,454,539,247 for the f l s c a l y e a r 1954. C o l l e c t i o n s
on w a r r a n t s for d i s t r a i n t d u r i n g f i s c a l
1^54 a m o u n t e d to
$ 5 3 6 , 3 3 1 , 4 0 2 . T h i s aunount r e p r e s e n t s p r i m a r i l y c o l l e c t i o n s of u n d i s p u t e d a m o u n t s of o r i g i n a l t a x a s s e s s e d on r e t u r n s as flled,
which t a x p a y e r s have failed to pay when due and on which It was
n e c e s s a r y to I s s u e w a r r a n t s for d i s t r a i n t to e n f o r c e c o l l e c t i o n . O c c a s i o n a l l y , it a l s o b e c o m e s n e c e s s a r y to c o l l e c t additional a s s e s s m e n t s by d i s t r a i n t w a r r a n t , but t h e s e c a s e s r e p r e s e n t only a s m a l l
p o r t i o n of t h e t o t a l w a r r a n t c o l l e c t i o n s .
The amount of a d d i t i o n a l t a x r e s u l t i n g f r o m e n f o r c e m e n t efforts
and a m o u n t c o l l e c t e d on w a r r a n t s for d i s t r a i n t d u r i n g the f i s c a l
y e a r s 1949 t h r o u g h 1954 a r e s u m m a r i z e d In the following t a b l e .
Amount of
additional
tax, interest,
and penalty
Fiscal year
Amount
collected
on warrants
for distraint
In thousands of dollars
1949
1950
1951
1952
1953
1954
,
.
...
....
1,891,679
1,747,592
1,856,603
1,840,162
1,555,962
1,454,539
346,509
368,385
376,506
455,752
505,592
536,331
The d e c r e a s e In additional t a x . I n t e r e s t , and p e n a l t y for 1954
was o c c a s i o n e d by a n u m b e r of f a c t o r s , a m o n g which w e r e : ( l ) The
I n c r e a s e In t h e n u m b e r of c l a i m s r e q u i r i n g audit c o n s i d e r a t i o n
(the r e v e n u e r e s u l t s shown In the p r e c e d i n g t a b l e do not t a k e Into
a c c o u n t the r e d u c t i o n of c l a i m e d refunds r e s u l t i n g f r o m s u c h c o n -
ADMINISTRATIVE REPORTS
127
s i d e r a t i o n ) ; (2) heavy p e r s o n n e l t u r n o v e r and the t r a n s f e r of e x p e r i e n c e d e x a m i n e r s to o t h e r work Including s u p e r v i s i o n , a n a l y s i s ,
r e v i e w , and t r a i n i n g ; and (3) the lag In r e c r u i t m e n t of new r e v e n u e
a g e n t s d u r i n g t h e e a r l y p a r t of the y e a r due to l a c k of eligible c a n d i d a t e s . The fact t h a t all p r o p o s e d deficiency a s s e s s m e n t s a r e now
h a n d l e d u n d e r p r o c e d u r e s d e s i g n e d to give full c o n s i d e r a t i o n to
a p p e l l a t e r i g h t s of t a x p a y e r s h a s a l s o had Its effect.
Total fraud Investigations completed during 1954numbered4,057,
Including t h o s e r a c k e t e e r c a s e s In which fraud was s u s p e c t e d . P r o s e c u t i o n was r e c o m m e n d e d In 1,956 c a s e s , while p e n a l t i e s of a civil
n a t u r e without p r o s e c u t i o n w e r e r e c o m m e n d e d In 828 c a s e s . D u r i n g
the y e a r I n d i c t m e n t s w e r e r e t u r n e d a g a i n s t 1,561 defendants. I n d i c t m e n t s w e r e r e f u s e d In c a s e s Involving 14 d e f e n d a n t s . I n t h e
c a s e s r e a c h i n g t r i a l s t a g e , 1,291 defendants w e r e convicted o r
e n t e r e d p l e a s of guilty o r nolo c o n t e n d e r e . The following t a b l e
p r e s e n t s t h e r e c o r d of c o n v i c t i o n s . Including p l e a s of guilty o r nolo
c o n t e n d e r e , for the y e a r s 1946 t h r o u g h 1954, In c a s e s Involving
all c l a s s e s of I n t e r n a l r e v e n u e t a x e s e x c e p t alcohol o r t o b a c c o t a x e s .
Number of
individuals
convicted
Fiscal year
J
1946
19^1
1945
1949
1950
149
182
315
346
r 458
Number of
individuals
convicted
Fiscal year
1951
1952
1953
1954.
324
563
^ 929
1,291
D u r i n g 1954, the e n f o r c e m e n t of I n t e r n a l r e v e n u e liquor laws r e s u l t e d In the s e i z u r e of 11,266 Illicit s t i l l s , t o g e t h e r with 6,722,900
gallons of m a s h j 186,447 gallons of Illicit l i q u o r s , and 2,409 a u t o m o b i l e s and t r u c k s . T h e r e w e r e 9,058 p e r s o n s a r r e s t e d for v i o l a t i o n s o f t h e I n t e r n a l r e v e n u e l i q u o r l a w s ; I n d i c t m e n t s w e r e obtained
a g a i n s t 6,144 p e r s o n s ; and 5,005 w e r e c o n v i c t e d . The following t a b l e
c o m p a r e s 1954 r e s u l t s with t h o s e for 1953 and c e r t a i n e a r l i e r y e a r s .
Wine gallons
Number of
stills seized of mash seized
Fiscal year
1940
1945
1950
1951
1952
1953
1954
,
:
Number of
arrests made-*^
6,480,200
2,945,000
4,892,600
5,545,400
5,700,600
6,151,100
6,722,900
25,638
11,104
10,236
10,384
9,851
9,370
9,344
10,663
8,34A
10,030
10,177
10,269
10,699
11,266
^ Includes arrests for firearras violations and, beginning 1952, tobacco tax violations. Arrests during 1954
numbered 245 and 41, respectively.
R e f u n d s . - -Refunds of I n t e r n a l r e v e n u e t a x e s and the I n t e r e s t
t h e r e o n , as r e q u i r e d by law, a r e paid out of an a p p r o p r i a t i o n s e p arate from that covering the Internal Revenue Service a d m i n i s t r a tive e x p e n s e s . The t o t a l amount of t h e s e p a y m e n t s for the f i s c a l
y e a r 1954 was $ 3 , 4 6 8 , 6 2 4 , 6 8 2 as c o m p a r e d with $3,204,663,235
In the p r e c e d i n g y e a r , with p r a c t i c a l l y all t y p e s of t a x e s showing
I n c r e a s e s . I n t e r e s t p a y m e n t s on refunds (included In t h e s e t o t a l s ;
I n c r e a s e d from $74,363,186 In 1953 to $82,631,074 In 1954.
128
1954 REPORT OF THE SECRETARY OF THE TREASURY
S e t t l e m e n t of d i s p u t e s . - - A t a x p a y e r w h o d o e s n o t a g r e e w i t h t h e
f i n d i n g s of a d i s t r i c t d i r e c t o r w i t h r e g a r d t o h i s t a x l i a b i l i t y m a y
flle a f o r m a l p r o t e s t r e q u e s t i n g a c o n f e r e n c e to c o n s i d e r t h e s e
f i n d i n g s . F o r m a l p r o t e s t s by t a x p a y e r s a r e c o n s i d e r e d by the A p p e l l a t e D i v i s i o n of t h e S e r v i c e I n a n a t t e m p t t o r e a c h a g r e e m e n t
with the t a x p a y e r s , t h e r e b y avoiding e x p e n s i v e and t i m e c o n s u m ing litigation.
T h e t o t a l n u m b e r of p r o t e s t e d c a s e s d i s p o s e d of b y t h e A p p e l l a t e
D i v i s i o n d u r i n g t h e y e a r w a s 2 1 , 5 9 5 , of w h i c h 1 4 , 7 3 7 c a s e s w e r e
s e t t l e d and 6,858 c a s e s w e r e a p p e a l e d to the T a x C o u r t . As a r e s u l t
of f u r t h e r h e a r i n g s c o n d u c t e d I n c a s e s p e n d i n g b e f o r e t h e T a x
C o u r t (including c a s e s not p r e v i o u s l y c o n s i d e r e d by the A p p e l l a t e
D i v i s i o n ) , s e t t l e m e n t by s t i p u l a t i o n w a s e f f e c t e d In 5,367 c a s e s out
of 6 , 8 5 8 c a s e s d i s p o s e d of, a n d t h e b a l a n c e c o n s i s t e d of 300 c a s e s
c l o s e d b y d i s m i s s a l o r d e f a u l t a n d 1,191 c a s e s t r i e d o n t h e i r m e r i t s
b e f o r e t h e T a x C o u r t . T h e b a c k l o g of d i s p u t e d c a s e s r e q u i r i n g A p p e l l a t e D i v i s i o n c o n s i d e r a t i o n w a s r e d u c e d 27 p e r c e n t d u r i n g t h e
year.
R u l i n g s a n d o t h e r t e c h n i c a l func t i o n s . - - T h e t e c h n i c a l f u n c t i o n s of
the Internal Revenue Service Include the p r e p a r a t i o n and I s s u a n c e
of r u l i n g s a n d a d v i s o r y s t a t e m e n t s t o t h e p u b l i c a n d r e v e n u e off i c i a l s , t h e p r e p a r a t i o n of r e g u l a t i o n s a n d o t h e r t a x g u i d e m a t e r i a l s ,
t e c h n i c a l a d v i c e a n d a s s i s t a n c e I n t h e p r e p a r a t i o n a n d I s s u a n c e of
t a x f o r m s , a n d t h e d e v e l o p m e n t of p r o g r a m s f o r c l a r i f i c a t i o n a n d
s i m p l i f i c a t i o n of t a x r u l e s . T e c h n i c a l a s s i s t a n c e a l s o I s p r o v i d e d I n
p r o g r a m s for l e g i s l a t i v e r e v i s i o n and In c o n d u c t i n g t h e n e g o t i a t i o n
of t a x t r e a t i e s .
D u r i n g t h e y e a r a t o t a l of 5 1 , 0 6 0 r e q u e s t s f o r r u l i n g s a n d t e c h n i c a l
a d v i c e w e r e p r o c e s s e d . I n c l u d i n g t h e I s s u a n c e of 4 5 , 8 4 8 r u l i n g s t o
t a x p a y e r s a n d 5 , 2 1 2 r e p l i e s t o r e q u e s t s of f l e l d o f f i c e s f o r t e c h n i c a l
advice.
M u c h t i m e and effort In t h e t a x l e g i s l a t i v e fleld w a s c e n t e r e d In
t h e d e v e l o p m e n t of t w o m a j o r t a x b i l l s , t h e I n t e r n a l R e v e n u e C o d e
of 1 9 5 4 ( P u b l i c L a w 5 9 1 , a p p r o v e d A u g u s t 1 6 , 1954) a n d t h e E x c i s e
T a x R e d u c t i o n A c t of 1 9 5 4 ( P u b l i c L a w 3 2 4 , a p p r o v e d M a r c h 3 1 ,
1954). A s s i s t a n c e w a s a l s o given o t h e r G o v e r n m e n t a g e n c i e s In c o n n e c t i o n w i t h t h e S o c l a l S e c u r l t y A c t A m e n d m e n t s of 1 9 5 4 ( P u b l i c L a w
7 6 1 , a p p r o v e d S e p t e m b e r 1, 1954) a n d t h e F e d e r a l U n e m p l o y m e n t
T a x A c t A n i e n d m e n t s ( P u b l i c L a w 7 6 7 , a p p r o v e d S e p t e m b e r 1, 1 9 5 4 ) .
Six tax t r e a t i e s with foreign nations w e r e ratified by the S e n a t e
during fiscal 1954, and t h r e e o t h e r s w e r e r e f e r r e d to the Senate for
consideration.
P e r s o n n e l . - - T h e e m p l o y e e s on I n t e r n a l R e v e n u e S e r v i c e r o l l s at
t h e c l o s e of t h e y e a r ( J u l y 3 , 1954) n u m b e r e d 5 1 , 4 1 1 , c o n s i s t i n g of
2,707 e m p l o y e e s In the N a t i o n a l Office and 48,704 In t h e r e g i o n a l
a n d d i s t r i c t o f f i c e s . A t t h e c l o s e of t h e p r e c e d i n g y e a r ( J u l y 4 , 1 9 5 3 ) ,
t h e n u m b e r of p e r s o n s e m p l o y e d t o t a l e d 5 3 , 4 6 3 , c o m p r i s i n g 3 , 8 3 4
n a t i o n a l office e m p l o y e e s a n d 4 9 , 6 2 9 r e g i o n a l and d i s t r i c t office
employees.
T h e n u m b e r of e m p l o y e e s I n t h e v a r i o u s b r a n c h e s of t h e I n t e r n a l
R e v e n u e S e r v i c e a t t h e c l o s e of t h e f i s c a l y e a r s 1 9 5 3 a n d 1 9 5 4 I s
s h o w n In the following t a b l e .
129
ADMINISTRATIVE REPORTS
Branch of service
Number on payroll at
close of fiscal ye ar
1953
1954
3,834
2 707
514
National office.
470
Regional and d i s t r i c t offices:
Enforcement personnel:
Collection officers
Office auditors
Revenue agents
Special agents (tax fraud)
Total enforcement personnel
9,037
3,064
1,002
7,617
1,200
581
832
1,294
6
2
1
10
1
877
430
141
605
277
473
824
1 208
24,627
24 835
271
2,786
20,422
1,009
2 387
20 679
Total regional and d i s t r i c t officfes
24,488
49,629
23 399
48 704
Grand t o t a l
53,463
Other personnel:
Legal
Other technical
Temporary employees
Total, other personnel
270
63
'
C o s t of a d m i n i s t r a t i o n . - - T h e e n t i r e c o s t of I n t e r n a l Revenue S e r v
Ice o p e r a t i o n s d u r i n g the y e a r . Including all I t e m s of e x p e n s e except
the a m o u n t s refunded to t a x p a y e r s , was $ 2 6 8 , 9 6 9 , 1 0 7 . The amount
a v a i l a b l e for a d m i n i s t r a t i v e e x p e n s e s was $269,637,435 m i l l i o n ,
l e a v i n g an unobligated b a l a n c e of $ 6 6 8 , 3 2 8 .
Management Improvements
D u r i n g the f i s c a l y e a r 1954 the I n t e r n a l R e v e n u e S e r v i c e continued
Its r e a l i g n m e n t of functions and d e c e n t r a l i z a t i o n of o p e r a t i o n a l
r e s p o n s i b i l i t y In f u r t h e r a n c e of Its efforts t o w a r d s g r e a t e r economy
and efficiency. The functional r e a l i g n m e n t s v i s u a l i z e d In the r e o r g a n i z a t i o n plan w e r e c o m p l e t e d and o p e r a t i o n a l r e s p o n s i b i l i t i e s
w e r e d e c e n t r a l i z e d to the g r e a t e s t extent c o m p a t i b l e with good
. m a n a g e m e n t at this t i m e , m a k i n g It p o s s i b l e for the national office
to c o n c e n t r a t e m o r e effectively on Its p r i m a r y r e s p o n s i b i l i t i e s of
policy planning and p r o g r a m m i n g . Some of the specific m e a s u r e s
I n s t i t u t e d In working t o w a r d t h e s e goals a r e outlined In the following
paragraphs.
F u n c t i o n a l and p e r s o n n e l r e a l i g n m e n t s . - - O n e of the m a j o r a c c o m p l i s h m e n t s In this a r e a was the s e p a r a t i o n of audit and c o l l e c tion functions and the t r a n s f e r of delinquent a c c o u n t s and r e t u r n s
w o r k to the c o l l e c t i o n a r e a . All audit functions w e r e c o n s o l i d a t e d
within the audit a r e a u n d e r c e n t r a l i z e d a u t h o r i t y , and qualified p e r s o n n e l w e r e t r a n s f e r r e d f r o m the collection a r e a to the audit a r e a
In a n u m b e r c o m m e n s u r a t e with the work t r a n s f e r r e d . The d e t a i l
of a n u m b e r of qualified p e r s o n n e l ffom the audit a r e a to the a p p e l late a r e a enabled the A p p e l l a t e Division to r e d u c e Its backlog of
c a s e s r e q u i r i n g c o n s i d e r a t i o n to m o r e m a n a g e a b l e p r o p o r t i o n s . The
r e v e n u e accounting activity I n t h e n a t i o n a l office was c o n v e r t e d from
130
1954 REPORT OF THE SECRETARY OF THE TREASURY
one t h a t h a d b e e n l a r g e l y o p e r a t i o n a l In c h a r a c t e r to one c o n c e r n e d
p r i n c i p a l l y w i t h p r o v i d i n g d i r e c t i o n a n d c o n t r o l of r e v e n u e a c c o u n t i n g
a c t i v i t i e s n o w p e r f o r m e d In d i s t r i c t o f f i c e s .
The Inspection p r o g r a m , which p r o v i d e s for the Independent a p p r a i s a l of S e r v i c e o p e r a t i o n s , w a s r e v i s e d t o c o n f o r m t o t h e n e w
organizational and n i a n a g e m e n t concepts and to provide top m a n a g e m e n t with a m o r e effective t o o l with w h i c h It c a n a c h i e v e b e t t e r s u p e r v i s i o n a n d m a i n t a i n t h e I n t e g r i t y of t h e S e r v i c e ' s o p e r a t i n g s y s t e m a s w e l l a s of I t s e m p l o y e e s .
In t h e t e c h n i c a l a r e a n a t i o n a l office r e s p o n s i b i l i t i e s w e r e r e a l l o c a t e d s o a s t o c o n c e n t r a t e I n s e p a r a t e g r o u p s t h e I s s u a n c e of
r u l i n g s , t h e s t u d y of t e c h n i c a l t a x p r o b l e m s , a n d t h e m a i n t e n a n c e
of r e f e r e n c e m a t e r i a l .
In p e r s o n n e l a d m i n i s t r a t i o n t h e w o r k p e r t a i n i n g t o t h e n a t i o n a l
office w a s e s t a b l i s h e d In a b r a n c h s e p a r a t e f r o m that p e r t a i n i n g t o
t h e fleld o f f i c e s , and g r e a t e r e m p h a s i s w a s p l a c e d on the b a s i c
f u n c t i o n of d e v e l o p i n g p o l i c i e s , p r o g r a m s , a n d p r o c e d u r e s .
In the a l c o h o l and t o b a c c o t a x a r e a the r e t a i l l i q u o r d e a l e r p r o g r a m was c o n v e r t e d f r o m an I n s p e c t i o n function to a law e n f o r c e m e n t a c t i v i t y , w i t h s p e c i a l e m p h a s i s o n t h e p e r f e c t i o n of c a s e s f o r
c r i m i n a l p r o s e c u t i o n a n d t h e r e f e r r a l of w i l l f u l v i o l a t i o n s t o S t a t e
a u t h o r i t i e s . A c o m m i t t e e was established to conduct basic studies
w i t h a v i e w t o t h e d e v e l o p m e n t of m o d e r n i z e d a n d s i m p l i f i e d s y s t e m s
of c o l l e c t i n g l i q u o r t a x e s a n d c o n t r o l l i n g l i q u o r p r o d u c t i o n . A s a
r e s u l t of t h e s e s t u d i e s a s t a r t w a s m a d e I n t h e d i r e c t i o n of I n d u s t r y
c o n t r o l t h r o u g h a u d i t s of p r o p r i e t o r s ' r e c o r d s r a t h e r t h a n t h r o u g h
direct supervision.
I n t h e l a t t e r p a r t of t h e y e a r , a l l of t h e f l e l d l e g a l f u n c t i o n s a n d
duties f o r m e r l y p e r f o r m e d by the Appellate, E n f o r c e m e n t , and
C i v i l A d v i s o r y C o u n s e l s , and t h e A t t o r n e y In C h a r g e ( A l c o h o l and
T o b a c c o Tax) w e r e consolidated under the Regional Counsel with
p o w e r t o r e d e l e g a t e . In t h e n a t i o n a l office, t h e o r g a n i z a t i o n a l s t r u c t u r e of t h e C h i e f C o u n s e l ' s o f f i c e w a s r e a l i g n e d t o e x p e d i t e t h e
h a n d l i n g of c a s e s .
D e c e n t r a l i z a t i o n of a c t i v i t i e s a n d d e l e g a t i o n of a u t h o r i t y . - - D u r i n g
t h e y e a r all o p e r a t i o n a l a c t i v i t i e s In t h e n a t i o n a l office w e r e , to t h e
extent p r a c t i c a b l e at this t i m e , d e c e n t r a l i z e d to fleld offices. S u b s t a n t i a l r e d u c t i o n s I n t h e n u m b e r of n a t i o n a l o f f i c e p e r s o n n e l w e r e
m a d e a s a r e s u l t of t h e s h i f t I n o p e r a t i n g f u n c t i o n s .
A s p a r t of t h e f u n c t i o n a l r e o r g a n i z a t i o n I n t h e n a t i o n a l o f f i c e , a d d i t i o n a l a u t h o r i t y w a s d e l e g a t e d t o d i r e c t o r s of I n t e r n a l r e v e n u e .
I n c l u d i n g a p p r o v a l of a s s e s s m e n t l i s t s , s c h e d u l i n g of t h o s e o v e r a s s e s s m e n t s I n e x c e s s of $ 1 0 , 0 0 0 w h i c h d o n o t r e q u i r e r e v i e w b y
t h e J o i n t C o m m i t t e e o n I n t e r n a l R e v e n u e T a x a t i o n , c o n t r o l of
t r a n s f e r o r - t r a n s f e r e e c a s e s , p r o c e s s i n g of r e c e i v e r s h i p c a s e s a n d
I n f o r m a n t s ' c l a i m s f o r r e w a r d s , c l a s s i f i c a t i o n a n d s e l e c t i o n of gift
t a x r e t u r n s f o r e x a m i n a t i o n , a n d t h e h o u s i n g of r e t u r n s e x c e p t t h o s e
In c e r t a i n c a t e g o r i e s for e a r l i e r y e a r s .
Authority a l s o was delegated to d i s t r i c t d i r e c t o r s ' offices to
d e t e r m i n e t h o s e c a s e s r e q u i r i n g full s c a l e f r a u d I n v e s t i g a t i o n s . A l l
o p e r a t i o n a l p h a s e s p e r t a i n i n g t o t h e e n r o l l m e n t of t a x p r a c t i t i o n e r s
l i k e w i s e w e r e m a d e a fleld r e s p o n s i b i l i t y . In the a p p e l l a t e a r e a
w i d e r d e l e g a t i o n s of s e t t l e m e n t a u t h o r i t y w e r e m a d e t o t h e f l e l d
offices. N u m e r o u s alcohol and t o b a c c o t a x o p e r a t i n g functions w e r e
ADMINISTRATIVE REPORTS
131
d e c e n t r a l i z e d f r o m the n a t i o n a l office to fleld offices In o r d e r to
a c h i e v e g r e a t e r e c o n o m y In the e n f o r c e m e n t and a d m i n i s t r a t i o n of
l i q u o r and t o b a c c o t a x l a w s . Most l e g a l work not r e q u i r i n g d i r e c t
a f f i r m a t i v e action by the S e c r e t a r y o f t h e T r e a s u r y , the C o m m i s s i o n e r of I n t e r n a l R e v e n u e , o r n a t i o n a l office officials was t r a n s f e r r e d to r e g i o n a l c o u n s e l s ' offices.
I n c r e a s e d a u t h o r i t y with r e g a r d to p e r s o n n e l m a t t e r s was d e l e gated to r e g i o n a l offices. Including the handling of m o s t d i s c i p l i n a r y
c a s e s , the p r o c e s s i n g of longevity and s t e p - I n c r e a s e s for all p o s i t i o n s , a n d t h e h a n d l l n g o f c o m p e n s a t i o n c a s e s d i r e c t l y with the United
States Employees Compensation Commission. Other decentralized
functions r e l a t i n g to a d m i n i s t r a t i v e m a t t e r s Included p a y m e n t of
obligations for p u r c h a s e of equipment, t r a v e l , c l a i m s , e t c . ; d i s p o s i t i o n of s u r p l u s p r o p e r t y ; and the a d m i n i s t r a t i o n of p r o g r a m s for the
m i c r o f i l m i n g and d i s p o s i t i o n of r e c o r d s .
A d m i n i s t r a t i o n of p a y r o l l t a x e s . - - F u r t h e r p r o g r e s s was m a d e
d u r i n g the y e a r on plans for I m p r o v e d a d m i n i s t r a t i o n of p a y r o l l
t a x e s . E s s e n t i a l l y , t h e s e plans a r e b a s e d upon combined r e p o r t i n g
of w a g e s and t a x e s for I n c o m e t a x withholding and o l d - a g e and s u r v i v o r s I n s u r a n c e p u r p o s e s . The D e p a r t m e n t s o f t h e T r e a s u r y and
of Health, Education, and Welfare h a v e b e e n working t o g e t h e r In
developing t h e s e p l a n s , with the e x p e c t a t i o n of m a k i n g r e c o m m e n d a tions for l e g i s l a t i o n .
R e v i s e d accounting s y s t e m . - - A new r e v e n u e accounting s y s t e m
was developed and a pilot I n s t a l l a t i o n m a d e I n a d i s t r i c t office. The
new s y s t e m ( r e p l a c i n g one In effect s i n c e 1919) will p r o v i d e m o r e
c o m p l e t e . I n f o r m a t i v e , and useful financial and m a n a g e m e n t r e p o r t s ,
and Its I n t e r n a l c h e c k and c o n t r o l f e a t u r e s will f a c i l i t a t e both
I n t e r n a l and e x t e r n a l a u d i t s . The s y s t e m w a s scheduled for i n s t a l l a tion t h r o u g h o u t the S e r v i c e by the end of 1954.
S e r v i c e s to t a x p a y e r s . - - T h e t a x p a y e r a s s i s t a n c e p r o g r a m h a s
b e e n r e v i s e d to p r o v i d e b e t t e r s e r v i c e to t h e public with a m i n i m u m
of I n t e r f e r e n c e with the audit and c o l l e c t i o n w o r k . Additional e m p h a s i s was p l a c e d on the policy of conducting d u r i n g one e x a m i n a t i o n , w h e r e v e r p o s s i b l e , a o n e - p a c k a g e audit of the t a x p a y e r ' s
books and r e c o r d s to d e t e r m i n e his I n c o m e t a x l i a b i l i t y and his
l i a b i l i t y for o t h e r F e d e r a l t a x e s r a t h e r t h a n s u b j e c t i n g t h e t a x p a y e r
to the Inconvenience and annoyance of two o r m o r e s e p a r a t e
e x a m i n a t i o n s at different t i m e s .
The publication In the '*Internal R e v e n u e B u l l e t i n " of r u l i n g s affecting t a x p a y e r s ' r i g h t s o r d u t i e s was expanded. The f i r s t c o m p l e t e
r e v i s i o n of I n c o m e t a x r e g u l a t i o n s (Regulatlo.ns 118) s i n c e 1943 was
p u b l i s h e d , as was a c o m p l e t e r e v i s i o n of the I n c o m e t a x withholding
r e g u l a t i o n s (Regulations 120). A p r o g r a m was f o r m u l a t e d for I s s u ing r e g u l a t i o n s u n d e r the I n t e r n a l R e v e n u e Code of 1954, p r o v i d i n g
for: ( l ) The continuance In effect of r e g u l a t i o n s I s s u e d u n d e r the
1939 Code which a r e a p p l i c a b l e to c o r r e s p o n d i n g p r o v i s i o n s of the
new code; (2) I n t e r i m I n t e r p r e t a t i o n of new p r o v i s i o n s for the Inform a t i o n of t a x p a y e r s ; and (3) final r e g u l a t i o n s u n d e r the 19.54 C o d e .
A s y s t e m h a s b e e n e s t a b l i s h e d to Identify t a x laws and r e g u l a tions which g e n e r a t e c o n t r o v e r s y . I n e q u i t i e s , and a d m i n i s t r a t i v e
difficulties, and which p e r m i t t a x a v o i d a n c e .
The r e v i e w of m o r e than 250 t a x f o r m s and I n s t r u c t i o n s d u r i n g
t h e y e a r r e s u l t e d In a n u m b e r of I m p r o v e m e n t s , among which w e r e
1 32
1954 REPORT OF THE SECRETARY OF THE TREASURY
a n e w F o r m 1 0 4 2 , * ' A n n u a l R e t u r n of I n c o m e t o b e P a i d a t S o u r c e " ;
s i m p l i f i c a t i o n of e s t a t e a n d gift t a x f o r m s ; a n d r e p l a c e m e n t of
F o r m W - 3 , * ' R e c o n c i l i a t i o n of Q u a r t e r l y R e t u r n s of I n c o m e T a x
W i t h h e l d o n W a g e s " , b y t h e a d d i t i o n of a s c h e d u l e t o F o r m 9 4 1 ,
*'Employer's Quarterly Tax R e t u r n " . The procedures
relating
t o e x t e n s i o n s of t i m e f o r f l l i n g I n c o m e t a x r e t u r n s of c o r p o r a t i o n s
w e r e s i m p l i f i e d by c o m b i n i n g In one f o r m t h e a p p l i c a t i o n for e x t e n s i o n of t i m e a n d a s t a t e m e n t w h i c h I s a c c e p t e d I n l i e u of a t e n t a t i v e r e t u r n , a n d b y p r o v i d i n g f o r t h e a u t o m a t i c g r a n t i n g of t h e e x tension where all r e q u i r e m e n t s have been m e t .
A p o l i c y w a s I n s t i t u t e d t o e f f e c t f i n a l d i s p o s i t i o n of d i s p u t e d I s s u e s a t t h e e a r l i e s t p o s s i b l e s t a g e t h r o u g h m a x l m i n n u s e of t h e I n formal conference p r o c e d u r e . Another policy adopted Involves
p a r t i a l a l l o w a n c e s of r e f u n d s o r c r e d i t s I n c a s e s w h e r e c o m p l e t e
a g r e e m e n t h a s not b e e n r e a c h e d . P a r t i a l a l l o w a n c e s a r e m a d e In
s u c h I n s t a n c e s t o p r o v i d e t h e t a x p a y e r w i t h e a r l i e r u s e of t h e f u n d s
and to reduce the G o v e r n m e n t ' s Interest obligations.
Internal Revenue Service Advanced Training C e n t e r . - - P l a n s were
d e v e l o p e d f o r t h e e s t a b l i s h m e n t of a n A d v a n c e d T r a i n i n g C e n t e r f o r
I n t e r n a l r e v e n u e a g e n t s t o b e c o n d u c t e d a t t h e U n i v e r s i t y of M i c h i g a n . T h e p u r p o s e of t h e C e n t e r I s t o b r o a d e n t h e t r a i n i n g of t h e
a g e n t s b y I n s t r u c t i n g t h e m I n t h e k n o w l e d g e a n d t h i n k i n g of l e a d e r s
of t h e a c a d e m i c , p r o f e s s i o n a l , a n d b u s i n e s s w o r l d s . T e n t a t i v e p l a n s
c a l l f o r i n s t r u c t i o n a t t h e g r a d u a t e l e v e l in a d v a n c e d a n a l y t i c a l
accounting, tax law, tax p r o c e d u r e s , e c o n o m i c s , and finance, plus a
l i m i t e d n u m b e r of o t h e r c o u r s e s d e s i g n e d t o m e e t t h e i r n e e d s . A p p r o x i m a t e l y 100 s t u d e n t s w e r e s e l e c t e d f o r t h e f i r s t s e m e s t e r o f t h e
t r a i n i n g c e n t e r . I n t h e f a l l of 1 9 5 4 , a n d a l i k e n u m b e r w i l l a t t e n d t h e
second s e m e s t e r . Ultimate plans envision providing similar training
for o t h e r p r o f e s s i o n a l and s e m l p r o f e s s i o n a l e m p l o y e e s ofthe S e r v ice.
P o s t s - o f - d u t y s u r v e y . - - A s u r v e y w a s m a d e of t h e S e r v i c e ' s a p p r o x i m a t e l y 1,400 p o s t s - o f - d u t y f o r t h e p u r p o s e of a p p r a i s i n g t h e
n e e d f o r t h e p r e s e n t n u m b e r a n d l o c a t i o n s of t h e s e s u b o f f i c e s I n
t e r m s of t h e S e r v i c e ' s p r o g r a m o b j e c t i v e s a n d u t i l i z a t i o n of a v a i l a b l e m a n p o w e r . As t h e f i s c a l y e a r e n d e d , t h e n a t i o n a l office was
f o r m u l a t i n g a b r o a d p o l i c y g o v e r n i n g r e a l i g n m e n t of s u b o f f i c e s .
Other I m p r o v e m e n t s . - - A regional audit m a n a g e m e n t p r o g r a m
w a s I n s t a l l e d w h i c h p r o v i d e s f o r t h e u s e of u n i f o r m a u d i t r e v i e w
p r o c e d u r e s a n d f o r r e g i o n a l c o n t r o l of a u d i t a c t i v i t i e s I n d i s t r i c t
d i r e c t o r s ' , o f f i c e s In o r d e r t o a s s u r e m a x i m u m u n i f o r m i t y I n t h e
a p p l i c a t i o n of t h e t a x l a w s a n d I n t h e a t t a i n m e n t of a u d i t g o a l s . E f f o r t s w e r e m a d e to develop a m o r e b a l a n c e d fraud I n v e s t i g a t i o n
p r o g r a m b y s t r e s s i n g t h e I n v e s t i g a t i o n of r e t u r n s a t a l l e c o n o m i c
l e v e l s a h d I n a l l g e o g r a p h i c a l a r e a s f o r a l l t y p e s of t a x l a w v i o l a t i o n s . In k e e p i n g w i t h t h i s p o l i c y , t h e " r a c k e t e e r " p r o g r a m w a s
r e d e f i n e d to focus a t t e n t i o n on m a j o r v i o l a t o r s .
T h e r e was also developed an Internal m a n a g e m e n t documents
s y s t e m which p r o v i d e s for the d e s i g n a t i o n and c u r r e n t m a i n t e n a n c e
of a s i n g l e a u t h o r i t a t i v e r e f e r e n c e s o u r c e f o r R e v e n u e p o l i c i e s a n d
p r o c e d u r e s . A c o m p r e h e n s i v e p r o g r a m of r e v i e w a n d r e v i s i o n of
m a n a g e m e n t r e p o r t s w a s u n d e r t a k e n d u r i n g t h e y e a r . In o r d e r to
p r o v i d e the e s s e n t i a l d a t a n e e d e d In planning and o r g a n i z i n g w o r k ,
Identifying b a c k l o g s , evaluating p r o g r e s s , p e r f o r m i n g other related
ADMINISTRATIVE REPORTS
133
d u t i e s , and, at the s a m e t i m e , to r e d u c e the r e p o r t i n g b u r d e n to
the m i n i m u m consistent with this objective.
The m a n a g e m e n t I m p r o v e m e n t p r o g r a m was expanded to m e e t the
needs a r i s i n g from a greatly r e o r g a n i z e d and extensively d e c e n tralized Internal Revenue Service. A reporting system covering the
p r o g r a m was e s t a b l i s h e d , as w e r e p r o c e d u r e s for the evaluation
a n d d i s s e m i n a t i o n of I n f o r m a t i o n a n d I d e a s r e s u l t i n g f r o m t h e
program.
N e w I n s t r u c t i o n s f o r t h e c o n d u c t of I n t e r n a l a u d i t s e l i m i n a t e d
many detailed p r o c e d u r e s . Unwarranted or unproductive Investigations h a v e b e e n e l i m i n a t e d by a t h o r o u g h and c a r e f u l s c r e e n i n g
of c o m p l a i n t s .
S i g n i f i c a n t a c c o m p l i s h m e n t s I n t h e f l e l d of a d m i n i s t r a t i o n I n c l u d e d : E s t a b l i s h m e n t of r e v i s e d q u a l i f i c a t i o n s t a n d a r d s f o r c o l l e c t i o n o f f i c e r p o s i t i o n s ; I m p r o v e m e n t s I n a n d e x t e n s i o n of t r a i n i n g
p r o g r a m s ; e s t a b l i s h m e n t of a m a n a g e m e n t d e v e l o p m e n t p r o g r a m t o
Identify and t r a i n e m p l o y e e s with l e a d e r s h i p potential; Introduction
of n e w f i s c a l m a n a g e m e n t m e t h o d s ; I m p r o v e m e n t s I n p r i n t i n g f a c i l i t i e s , m e t h o d s , a n d c o n t r o l s ; d e v e l o p m e n t of a c o m p r e h e n s i v e
s c h e d u l e f o r r e t e n t i o n a n d d i s p o s a l of r e c o r d s ; a n d t h e e x p a n s i o n
of t h e p u b l i c I n f o r m a t i o n p r o g r a m .
OFFICE OF INTERNATIONAL FINANCE
The Office of I n t e r n a t i o n a i F i n a n c e a s s i s t s the officers o f t h e
D e p a r t m e n t In the f o r m u l a t i o n and e x e c u t i o n of p o l i c i e s and p r o g r a m s In I n t e r n a t i o n a l financial and m o n e t a r y m a t t e r s .
By d i r e c t i o n of the S e c r e t a r y , the r e s p o n s i b i l i t i e s of the Office
of I n t e r n a t i o n a i F i n a n c e Include the T r e a s u r y ' s a c t i v i t i e s In r e l a tion to I n t e r n a t i o n a l financial and m o n e t a r y p r o b l e m s . Including
s u c h m a t t e r s as the c o n v e r t i b i l i t y of c u r r e n c i e s , exchange r a t e s
and r e s t r i c t i o n s , a n d . t h e e x t e n s i o n of s t a b i l i z a t i o n c r e d i t s ; gold
and s i l v e r policy; the B r e t t o n Woods A g r e e m e n t s Act and the
p p e r a t i o n s of the I n t e r n a t i o n a i M o n e t a r y F u n d and the I n t e r n a t i o n a i
Bank for R e c o n s t r u c t i o n and D e v e l o p m e n t ; foreign lending and a s s i s t a n c e ; the N o r t h Atlantic T r e a t y O r g a n i z a t i o n ; the a c t i v i t i e s of
the National A d v i s o r y Council on I n t e r n a t i o n a i 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 ; the A n g l o - A m e r i c an F i n a n c i a l A g r e e m e n t ; the
United S t a t e s E x c h a n g e S t a b i l i z a t i o n Fund; and the F o r e i g n A s s e t s
Control.
The Office a c t s for the T r e a s u r y o n t h e financial a s p e c t s of I n t e r national t r e a t i e s , a g r e e m e n t s , and o r g a n i z a t i o n s In which the United
S t a t e s p a r t i c i p a t e s , and It t a k e s p a r t In negotiations with foreign
g o v e r n m e n t s with r e g a r d to m a t t e r s Included within Its r e s p o n s i b i l i t i e s . It a s s i s t s the S e c r e t a r y o n t h e I n t e r n a t i o n a l financial a s p e c t s
of p r o b l e m s a r i s i n g In c o n n e c t i o n with his r e s p o n s i b i l i t i e s u n d e r
the Tariff A c t . The Office a l s o r e p r e s e n t s the T r e a s u r y In the w o r k
of the s u b o r d i n a t e o r g a n s of the National A d v i s o r y Council 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 , of which the S e c r e t a r y
of the T r e a s u r y Is c h a i r m a n .
1 34
1954 REPORT OF THE SECRETARY OF THE TREASURY
The Office of I n t e r n a t i o n a i F i n a n c e a d v i s e s T r e a s u r y officials
and o t h e r d e p a r t m e n t s and a g e n c i e s of the G o v e r n m e n t c o n c e r n i n g
exchange r a t e s and o t h e r f i n a n c i a l p r o b l e m s e n c o u n t e r e d In o p e r a t i o n s Involving f o r e i g n c u r r e n c i e s . In p a r t i c u l a r . It a d v i s e s the State
D e p a r t m e n t and t h e D e p a r t m e n t of Defense on financial m a t t e r s r e l a t e d to t h e i r n o r m a l o p e r a t i o n s In f o r e i g n c o u n t r i e s and on t h e
s p e c i a l financial p r o b l e m s a r i s i n g f r o m d e f e n s e p r e p a r a t i o n and
m i l i t a r y o p e r a t i o n s . In conjunction with Its o t h e r a c t i v i t i e s , t h e
Office s t u d i e s the f i n a n c i a l p o l i c i e s of f o r e i g n c o u n t r i e s , exchange
r a t e s , b a l a n c e s of p a y m e n t s , the flow of c a p i t a l , and o t h e r r e l a t e d
problems.
The Division of F o r e i g n A s s e t s C o n t r o l a d m i n i s t e r s c e r t a i n r e g u l a t i o n s and o r d e r s I s s u e d u n d e r S e c t i o n 5(b) o f t h e T r a d i n g with t h e
E n e m y Act. The F o r e i g n A s s e t s C o n t r o l R e g u l a t i o n s block all p r o p e r t y In the United S t a t e s In which any C o m m u n i s t C h i n e s e o r N o r t h
K o r e a n I n t e r e s t e x i s t s and p r o h i b i t all t r a d e o r o t h e r financial t r a n s a c t i o n s with t h o s e c o u n t r i e s o r t h e i r n a t i o n a l s . The C o n t r o l c a r r i e s
on l i c e n s i n g a c t i v i t i e s In c o n n e c t i o n with t r a n s a c t i o n s o t h e r w i s e
p r o h i b i t e d , t a k e s action to enforce the r e g u l a t i o n s , and h a s t a k e n a
c e n s u s of C h i n e s e and K o r e a n a s s e t s l o c a t e d In t h e United S t a t e s .
The C o n t r o l a l s o a d m i n i s t e r s r e g u l a t i o n s which p r o h i b i t p e r s o n s
In the United S t a t e s f r o m p u r c h a s i n g , s e l l i n g , o r a r r a n g i n g the
p u r c h a s e o r s a l e of s t r a t e g i c c o m m o d i t i e s o u t s i d e the United S t a t e s
for u l t i m a t e s h i p m e n t to the Soviet b l o c . T h e s e l a t t e r r e g u l a t i o n s
s u p p l e m e n t the e x p o r t c o n t r o l laws a d m i n i s t e r e d by the D e p a r t m e n t
of C o m m e r c e . In addition, the C o n t r o l h a s r e s p o n s i b i l i t i e s with r e s p e c t to b l o c k e d a c c o u n t s of a p p r o x i m a t e l y $9,000,000 r e c e i v e d f r o m
the s a l e to A r g e n t i n e I n t e r e s t s of a C z e c h o s l o v a k - o w n e d s t e e l m i l l
s o l d p u r s u a n t to an o r d e r I s s u e d by the S e c r e t a r y on M a r c h 25,
1954.
o
BUREAU OF THE MINT^
T h e B u r e a u of the Mint m a n u f a c t u r e s d o m e s t i c coins and a l s o
f o r e i g n coins for o t h e r g o v e r n m e n t s when o r d e r s can be m e t w i t h out Impeding the r e q u i r e d c o i n a g e of the United S t a t e s .
O t h e r p r i n c i p a l functions Include p h y s i c a l c u s t o d y of the G o v e r n m e n t ' s holdings of gold and s i l v e r , and t h e i r p u r c h a s e and s a l e .
Bullion Is r e c e i v e d In v a r i o u s f o r m s , r e q u i r i n g a s s a y i n g , m e l t i n g ,
r e f i n i n g , and o t h e r f o r m s of p r o c e s s i n g , m o v e m e n t , and s t o r a g e .
In addition, the B u r e a u a d m i n i s t e r s In p a r t F e d e r a l laws and r e g u l a t i o n s p e r t a i n i n g to the m o n e t a r y m e t a l s , and p e r f o r m s c e r t a i n
s e r v i c e s on a r e i m b u r s a b l e b a s i s for t h e public and for o t h e r
Government agencies.
The n u m b e r of e m p l o y e e s r a n g e d f r o m 1,011 at the beginning
of the f i s c a l y e a r 1954 to 883 at the c l o s e of the y e a r In s e v e n
fleld I n s t i t u t i o n s and t h e Office of t h e D i r e c t o r In Washington. I n s t i t u t i o n s c o n s i s t of t h r e e coinage m i n t s l o c a t e d In P h i l a d e l p h i a ,
P a . , San F r a n c i s c o , Calif., and D e n v e r , Colo.; two a s s a y offices
iMore detailed information concerning the Bureau of the Mint is contained in the separate Annual.
Report of the Director of the Mint.
135
ADMINISTRATIVE REPORTS
In New York, N. Y., and S e a t t l e , Wash.; and two d e p o s i t o r i e s for
the s t o r a g e of bullion, one for gold In F o r t Knox, Ky., and one for
s i l v e r In West P o i n t , N . Y., which o p e r a t e s as an adjunct pf the
New York A s s a y Office. The m i n t s , as well as the a s s a y offices,
r e c e i v e , p r o c e s s , and s t o r e gold and s l i v e r . E l e c t r o l y t i c r e f i n e r i e s
a r e l o c a t e d In the D e n v e r and San F r a n c i s c o m i n t s and the New
Y o r k A s s a y Office.
Coinage
The t h r e e m i n t s m a n u f a c t u r e d a t o t a l of 1,452 m i l l i o n United
S t a t e s coins with a face value of $100 m i l l i o n d u r i n g t h e f i s c a l
y e a r 1954, as follows:
Number of
pieces
produced
Denomination
Face value
Gross weight^
Short tons
In millions
;....
Xotal
.. .
835
162
284
121
50
$8
8
29
30
25
2 862
1,452
5-cent pieces
Dimes
Quarter dollars
Half dollars
100
6 062
894
781
835
690
^ Includes 2,076 tons silver; 3,620 tons copper; 223 tons nickel; and 143 tons zinc and tin.
In addition to d o m e s t i c c o i n a g e , t h e P h i l a d e l p h i a Mint m a n u f a c t u r e d 18 m i l l i o n f o r e i g n coins containing 78 tons of m e t a l s for thc
G o v e r n m e n t s of C o s t a R i c a , Cuba^ and t h e D o m i n i c a n R e p u b l i c . The
San F r a n c i s c o Mint m a n u f a c t u r e d 20 m i l l i o n coins containing 76
t o n s of m e t a l s for the G o v e r n m e n t of E l S a l v a d o r .
The B u r e a u of t h e Mint was a s s i g n e d additional duties In c o n n e c tion with the d i s t r i b u t i o n of United S t a t e s coins d u r i n g the y e a r .
T r e a s u r y D e p a r t m e n t O r d e r No. 179, effective D e c e m b e r 1, 1953,
t r a n s f e r r e d f r o m thc T r e a s u r e r of the United S t a t e s to the B u r e a u
of t h e Mint functions p e r t a i n i n g to d i s t r i b u t i o n and t r a n s f e r of c u r r e n t and u n c u r r e n t c o i n s among t h e m i n t s , F e d e r a l R e s e r v e B a n k s ,
F e d e r a l R e s e r v e b r a n c h e s , t h e T r e a s u r e r of t h e United S t a t e s , and
such o t h e r p e r s o n s o r I n s t i t u t i o n s a s n e c e s s a r y .
R e q u i s i t i o n of c o i n s for c i r c u l a t i o n t o t a l e d 1,213 m i l l i o n p i e c e s
d u r i n g the f i s c a l y e a r . D e t a i l s a r c as follows:
Denomination
Number of
pieces
shipped
Gross weight
In millions
1-cent pieces..,
5-cent pieces..,
Dimes
,
Quarter dollars.
Half dollars...
Silver,dollars.
Total^....
Includes 180,322 sets of proof coins sold.
813
132
171
. 70
18
9
2,786
725
471
486
251
273
4,992
136
The
sions.
hands
fiscal
1954 REPORT OF THE SECRETARY OF THE TREASURY
e s t i m a t e d s t o c k of coins In the United States and Its p o s s e s Including coins held In the T r e a s u r y , In b a n k s , and In the
of the p u b l i c . Is c o m p a r e d at the beginning and c l o s e of the
y e a r 1954 In t h e following s t a t e m e n t .
Face value (in millions)
Stock of coins
July 1, 1953 June 30, 1954
Increase, or
decrease (-)
$491.5
1,193.8
418.7
$491.0
1,275.7
434.7
-$0.5
81.9
16.0
2,104.0
2,201.4
97.4
Gold
Gold holdings of the m i n t Institutions r a n g e d from 641.8 m i l l i o n
fine ounces valued at $22,462.7 m i l l i o n at the beginning of the f i s c a l
y e a r 1954 to 626.5 m i l l i o n fine ounces v a l u e d at $21,926.9 m i l l i o n
at the c l o s e of the y e a r , a net d e c r e a s e of 15.3 m i l l i o n ounces
v a l u e d at $535.8 m i l l i o n . T r a n s a c t i o n s , exludlng I n t e r m i n t t r a n s f e r s , a r e s u m m a r i z e d for the f l s c a l y e a r 1954In the following t a b l e .
Gold transactiens, excluding intermint transfers
Ounces
Value
In millions
Gold received:
Newly "mined domestic gold
Secondary gold from domestic sources
U.S. coin, foreign deposits, operative recoveries, etc
Total
Gold withdrawn:
Sold for domestic industry, profession, or art
Withdrawn by the Treasury for monetary purposes
Total
1.5
.2
.2
$51.0
7.7
8 8
1.9
1 57 5
.
1.0
.1
16.1
33.8
4 4
565.1
17.2
603 3
• Include $370.32 increment on gold coin and bullion received at ^20.67/ per fine ounce.
'
•
Silver
S i l v e r bullion holdings of the B u r e a u of the Mint r a n g e d f r o m
1,339.1 m i l l i o n fine ounces v a l u e d at $1,685.0 m i l l i o n at the b e g i n ning of the f i s c a l y e a r 1954 to 1,437.4 m i l l i o n fine ounces valued at
$ 1 , 8 5 0 . 9 m i l l i o n at the c l o s e of the y e a r , a net I n c r e a s e of 98.3
m i l l i o n ounces v a l u e d at $ 165.9 m i l l i o n . T r a n s a c t i o n s , excluding
I n t e r m i n t t r a n s f e r s , a r e s u m m a r i z e d for the f i s c a l y e a r I n t h e
following t a b l e .
137
ADMINISTRATIVE REPORTS
Silver transactions, excluding intermint transfers
Ounces
Value
In millions
Silver received:
Newly mined domestic silver
33.8
.5
$30.5
1.3
1.7
119.4
4.2
.1
154.4
159.3
199.5
.4
Recoinage bullion from uncurrent United States coins withdravm from
Leased Treasury silver returned by other agencies of the Federal
Foreign deposits, operative recoveries, etc
Seigniorage on bullion revalued as security for silver certificates
Total
3.0
.1
9.4
Silver disposed of:
60.5
.5
Sold in medals, sweeps, etc
Total
33.2
.4
(1)
(1)
61.0
33.6
• Less than 50,000 ounces or dollars.
•
•
R e v e n u e s d e p o s i t e d by the B u r e a u of the Mint in the g e n e r a l
fund of t h e T r e a s u r y d u r i n g the f i s c a l y e a r 1954 t o t a l e d $ 7 3 . 8
m i l l i o n and w e r e c o m p o s e d p r i n c i p a l l y of s e i g n i o r a g e . S e i g n i o r a g e
on s i l v e r s u b s i d i a r y coinage a m o u n t e d to $50.4 m i l l i o n , on m i n o r
coinage $13.5 m i l l i o n and on s i l v e r bullion r e v a l u e d from c o s t to
m o n e t a r y v a l u e as s e c u r i t y for s i l v e r c e r t i f i c a t e s , $ 9 . 4 m i l l i o n .
I n t e r n a l audit
The s c o p e of the I n t e r n a l audit p r o g r a m was expanded during the
f i s c a l y e a r and Included the following:
(1) A p p r a i s a l and r e v i e w In the Washington office of financial
s t a t e m e n t s and r e p o r t s s u b m i t t e d p e r i o d i c a l l y by the fleld I n s t i t u tions;
(2) Audit s u r v e y s of the fleld I n s t i t u t i o n s ; and
(3) Annual s e t t l e m e n t s at the m i n t s and a s s a y offices and I n s p e c tion of *'joint s e a l s " at the bullion d e p o s i t o r i e s .
T y p i c a l auditing a c t i o n s Included:
(1) R e v i e w of accounting p r o c e d u r e s and p r a c t i c e s at the fleld
plants;
(2) R e v i e w and e x a m i n a t i o n of s t o r e k e e p l n g and Inventory
procedures;
(3) Spot check of s t o r e s I n v e n t o r i e s , by p h y s i c a l count, of a
r e p r e s e n t a t i v e n u m b e r of s e l e c t e d I t e m s ;
(4) R e v i e w of d e p o s i t p r o c e d u r e s for c o m p l i a n c e with m i n t
regulations;
(5) Audit of c a s h t r a n s a c t i o n s and v e r i f i c a t i o n of c a s h b a l a n c e s
u n d e r the c o n t r o l of m i n t c a s h i e r s ;
138
1954 REPORT OF THE SECRETARY OF THE TREASURY
(6) R e v i e w of I m p r e s t - f u n d t r a n s a c t i o n s and v e r i f i c a t i o n of
c a s h b a l a n c e s u n d e r the c o n t r o l of I m p r e s t - f u n d c a s h i e r s ;
(7) Audit of proof coin and m e d a l s a l e s at P h i l a d e l p h i a and
v e r i f i c a t i o n of m e d a l Inventory;
(8) R e v i e w and a p p r a i s a l of p r o t e c t i o n and s e c u r i t y m e a s u r e s
In effect at the v a r i o u s fleld I n s t a l l a t i o n s ; and
(9) P h y s i c a l v e r i f i c a t i o n by weight a n d / o r count of all gold and
s l i v e r buillon, coin, c a s h and all o t h e r m o n e t a r y a s s e t s not u n d e r
*'jolnt s e a l . "
The r e s u l t s of the I n t e r n a l audit w o r k p e r f o r m e d Indicate that:
(1) The accounting r e c o r d s a r e r e l i a b l e and afford a full d i s c l o s u r e of the financial r e s u l t s of o p e r a t i o n s at the fleld p l a n t s ;
(2) R e p o r t s s u b m i t t e d by the fleld e s t a b l l s h m e n t s to the W a s h ington office a r e In a g r e e m e n t with and s u p p o r t e d by the accounting
records;
(3) P r e s c r i b e d accounting p r o c e d u r e s a r e g e n e r a l l y being o b served;
(4) Mint r e g u l a t i o n s with r e s p e c t to the r e c e i p t , p r o c e s s i n g , and
p a y m e n t of bullion d e p o s i t s a r e being o b s e r v e d ;
(5) C o n t r o l o v e r m o n e t a r y a s s e t s , s t o r e s , e q u i p m e n t , and o t h e r
v a l u e s a r e s a t i s f a c t o r y and a d e q u a t e ; and
(6) P r o t e c t i v e and s e c u r i t y m e a s u r e s In f o r c e a r e effective and
p r o v i d e a d e q u a t e p r o t e c t i o n for the v a l u e s In c u s t o d y of thc v a r i o u s
mint establlshrnents.
Management Improvement
The m a n a g e m e n t I m p r o v e m e n t p r o g r a m of the B u r e a u of the Mint
continued a c t i v e l y d u r i n g the f i s c a l y e a r 1954. M a n a g e m e n t s u r v e y s
of the coinage m i n t s and the New Y o r k A s s a y Office, with e m p h a s i s
on changes In o r g a n i z a t i o n and p r o c e d u r e s for the p u r p o s e of r e ducing c o s t s , w e r e c o m p l e t e d . E s t i m a t e d annual savings r e s u l t i n g
f r o m the p r o g r a m a r e s u m m a r i z e d In the following s t a t e m e n t .
139
ADMINISTRATIVE REPORTS
Management improvement program. Bureau of the Mint, fiscal year 1954
Estimated
annual savings
Description
1. Shipment of rainor coins in truckload lots by motor carrier and silver coins by armored
truck where available, instead of Railv/ay Express or parcel post
2. Elimination of unnecessary guard postc
3. Elijnination of repeated weighing of coinage metals between processes
4. Eliraination of transfer weighing of coinage metals between melting and refining and
coining divisions
5. Consolidation of cashier's and deposits divisions
6. Installation of overhead cranes handling 500-pound containers to deliver blanks to
presses and remove finished coins from presses at Philadelphia. Eliminates manual
handling and number • of operators
7. Construction of underground bins for copper and improved coin storage and loading
facilities at Denver
8. Design and construction of conveyor layout for handling silver bullion after casting
operation at New York Assay Office. Eliminates manual handling of 1,000 ounce bars .
during stamping, cleaning, and inspection operations
•
9. Installation of new annealing furnace and cleaning and drying equipraent at San
Francisco. Reduces cost of cleaning agents and number of operators
10. Transfer to New York Assay Office of gold sales from Denver and mail deposit transactions from Philadelphia, and elimination of excess work connected with gold deposits
and sales
11. Construction and use of grapple lifting 24 gold bars at one time by New York Assay
Office. Eliminates manual lifting of bars one at a time on and off truck or scale.
Also decreases possibility of injury to employees
$250,000
38,000
38,000
36,000
20,000
15,000
9,000
5,000
5,000
4,300
4,000
Total recurring annual savings to Mint operating appropriation and funds^
In addition, a warehouse formerly used by the Philadelphia Mint was released with annual savings of
$5,700 to the General Services Administration, and a total of $32,898 was deposited as general fund receipts
from the sale of surplus and obsolete supplies and equipraent.
The e s t i m a t e s of United S t a t e s gold and s i l v e r p r o d u c t i o n and
I s s u e of gold and s i l v e r for d o m e s t i c I n d u s t r i a l , p r o f e s s i o n a l , and
a r t i s t i c u s e , m a d e annually by the Washington office, a r e on a
c a l e n d a r y e a r b a s i s . E s t i m a t e s for the c a l e n d a r y e a r s 1952 and
1953 a r c s u m m a r i z e d as follows:
Total fine ounces
1952
Refinery production of newly mined domestic gold
•
1,927,000
39,840,300
2,752,873
96,500,000
1953
1,970,000
37,735,500
2,142,860
106,000,000
BUREAU OF NARCOTICS 1
The B u r e a u of N a r c o t i c s was e s t a b l i s h e d by the act of J u n e 14,
1930 (5 U.S.C. 282-282a) as the p r i n c i p a l agency for the e n f o r c e m e n t of F e d e r a l laws p e r t a i n i n g to n a r c o t i c s . Its functions, as
b r o a d e n e d by s u b s e q u e n t l e g i s l a t i o n , a r e c o n c e r n e d chiefly with:
1. Regulation of p r o d u c t i o n and d i s t r i b u t i o n of all n a r c o t i c d r u g s
and m a r i h u a n a subject to the s t a t u t e s , and synthetic d r u g s and s u b 1 Further mformation concerning narcotic drugs is available in the separate Annual Report of the
Commissioner of Narcotics.
140
1954 REPORT OF THE SECRETARY OF THE TREASURY
s t i t u t e s d e t e r m i n e d b y t h e S e c r e t a r y of t h e T r e a s u r y t o h a v e p r o p e r t i e s c o m p a r a b l e t o t h o s e of m o r p h i n e o r c o c a i n e ;
2. E n f o r c e m e n t of the s t a t u t e s and r e g u l a t i o n s p r o h i b i t i n g
I l l e g a l traffic In n a r c o t i c d r u g s ; and. In c o o p e r a t i o n with o t h e r
a g e n c i e s , the p r e v e n t i o n and c u r t a i l m e n t of the Illicit d r u g t r a d e
within the States and l o c a l c o m m u n i t i e s ; and
3. P r i m a r y r e s p o n s i b i l i t y for c a r r y i n g out the United S t a t e s '
obligations u n d e r I n t e r n a t i o n a l a g r e e m e n t s looking t o w a r d s the
effective c o n t r o l of p r o d u c t i o n . I m p o r t , and e x p o r t of n a r c o t i c d r u g s .
The work of the B u r e a u of N a r c o t i c s falls t h e r e f o r e Into r e g u l a t o r y a c t i v i t i e s having to do with the l e g a l though r e s t r i c t e d t r a d e In
and e m p l o y m e n t of n a r c o t i c d r u g s r e c o g n i z e d as having beneficial
m e d i c i n a l p r o p e r t i e s ; and the c u r t a i l m e n t of traffic c a r r i e d on for
the I l l e g a l p u r p o s e of satisfying addiction, w h e t h e r by the l e g i t i m a t e
d r u g s o r o t h e r s (notably heroin) without r e c o g n i z e d p h a r m a c e u t i c a l
efficacy. I n c r e a s i n g public a w a r e n e s s of the s o c i a l as well a s
Individual h a r m which r e s u l t s f r o m the a b u s e of the n a r c o t i c d r u g s
h a s b r o u g h t State and l o c a l a g e n c i e s into the field of e n e r g e t i c e n f o r c e m e n t a c t i v i t i e s . As a r e s u l t , the B u r e a u of N a r c o t i c s is m o r e
frequently c a l l e d upon for a s s i s t a n c e and t e c h n i c a l guidance to State
and m u n i c i p a l a u t h o r i t i e s . A s i m i l a r b r o a d e n i n g of the r e c o g n i tion of the p r o b l e m of n a r c o t i c s and I n t e r e s t In r e g u l a t o r y m e a s u r e s ,
h a v e t a k e n p l a c e at t h e I n t e r n a t i o n a l l e v e l . The Opium Conventions
of 1912, 1925, and 1931, and the I n t e r n a t i o n a i P r o t o c o l of N o v e m b e r
19, 1948, have led to the adoption of m e a s u r e s s i m i l a r In m a n y
respects
to t h o s e p r o v i d e d by United S t a t e s l e g i s l a t i o n . M o r e
r e c e n t l y , the I n t e r n a t i o n a i Opium P r o t o c o l signed at the United
Nations on J u n e 2 3 , 1953 ( a p p r o v e d by the United S t a t e s Senate In
August 1954) will m o v e m o r e d i r e c t l y to l i m i t the p r o d u c t i o n of the
b a s i c m a t e r i a l for a m a j o r i t y of n a r c o t i c d r u g s , within the p r o ducing c o u n t r i e s . T u r k e y , which h a s In the p a s t been one o f t h e
p r i n c i p a l p r o d u c e r s of o p i u m , s i g n e d that a g r e e m e n t e a r l y In 1954.
With I n c r e a s e d c o n c e r n o v e r the d a n g e r s I n h e r e n t In a b u s e of the
n a r c o t i c d r u g s , t h r o u g h o u t the w o r l d , the p a s t y e a r h a s s e e n the
adoption of m o r e s e v e r e p e n a l t i e s for t h o s e engaged In the Illicit
t r a f f i c , both In o t h e r c o u n t r i e s a n d i n s e v e r a l of the S t a t e s . T h r o u g h
c o o p e r a t i o n with the F r e n c h and I t a l i a n G o v e r n m e n t s , agents of the
B u r e a u of N a r c o t i c s have r e d u c e d the q u a n t i t i e s of h e r o i n and opium
a v a i l a b l e to the Illicit traffic In the United S t a t e s . This t r e n d In
I n t e r n a t i o n a l c o o p e r a t i o n h a s unfortunately not extended to C o m m u n i s t China, which Is at the p r e s e n t t i m e the l a r g e s t single s o u r c e
of c o n t r a b a n d d r u g s .
D u r i n g the f i s c a l y e a r 1954 the t o t a l quantity of n a r c o t i c d r u g s
s e i z e d In Illicit traffic within the United S t a t e s a m o u n t e d to 5,109
o u n c e s . In c o m p a r i s o n with 4,383 ounces s e i z e d In 1953. S e i z u r e s
of m a r i h u a n a a m o u n t e d to 1,416 pounds bulk, and 7,536 c i g a r e t t e s ,
a s c o m p a r e d with 939 pounds bulk and 16,702 c i g a r e t t e s in 1953.
Many p r i n c i p a l d e a l e r s in illicit d r u g s w e r e convicted, and heavyp r i s o n s e n t e n c e s w e r e i m p o s e d u n d e r the act of N o v e m b e r 2, 1951
(21 U . S . C . 174).
141
ADMINISTRATIVE REPORTS
D u r i n g the f i s c a l y e a r t h e r e w e r e a p p r o x i m a t e l y 275,000 p e r s o n s
r e g i s t e r e d with d i r e c t o r ' s of I n t e r n a l r e v e n u e u n d e r the F e d e r a l
n a r c o t i c and m a r i h u a n a laws to engage In l e g i t i m a t e n a r c o t i c and
m a r i h u a n a t r a n s a c t i o n s . Thefts of n a r c o t i c s f r o m p e r s o n s a u t h o r i z e d
to handle the d r u g s d e c r e a s e d s l i g h t l y In n u m b e r d u r i n g 1954 as
the quantity r e p o r t e d s t o l e n was 1,764 ounces as c o m p a r e d with
2,178 ounces In 1953.
The following table shows for the f i s c a l y e a r the n u m b e r of
v i o l a t i o n s o f t h e n a r c o t i c and m a r i h u a n a laws by p e r s o n s r e g i s t e r e d
to engage In l e g i t i m a t e n a r c o t i c and m a r i h u a n a a c t i v i t i e s and by
p e r s o n s who have not qualified by r e g i s t r a t i o n to engage In such
a c t i v i t i e s , as r e p o r t e d by F e d e r a l n a r c o t i c e n f o r c e m e n t o f f i c e r s .
N u m b e r of v i o l a t i o n s of t h e n a r c c t i c a n d m a r i h u a n a l a w s r e p o r t e d d u r ing t h e f i s c a 1 y e a r 1954 w i t h t h e i r
d i s p o s i t i o n s and p e n a l t i e s
N a r c o t i c laws •
Federal
Court
state
Court
Marihuana iawc
Nonregistered
Registered persons
.
persons
state
Court
Federal
Court
State
Court
Federal
Court
Nonregistered persons
203
1,408
517
171
13
1,626
268
565
188
384-
P e n d i n g J u l y 1, 1953
R e p o r t e d d u r i n g 1954:
Federal^
Joint^
3,302
1,270
T o t a l t o be d i s p o s e d of
Convicted:
Federal
Joint
Acquitted:
Federal
Joint
Dropped:
Federal
Joint
Compromised:
Federal
Joint
154
2
1,045
147
209
104
348
152
94
48
27
7
4
2
39
5
6
6
10
8
8
3
358
43
49
40
137
63
34
13
3
1
11
221
S e n t e n c e s irapQsed:
Federal
Joint
Total
•.
•.
•
•.
'
918
1,256
352
Mos. Yrs.
8
7
3
98 •
F i n e s imposed:
Federal
Total
Yrs.
90
8
2,046
163
T o t a l d i s p o s e d of
8
10
Mos.
-r
Y r s . Mos.
3,314
9
597 10
3,912
7
Y r s . Mos.
442 5
198 8
641
1
Y r s . Mos.
1,018 5
. 4 2 1 11
1,440
4
Yrs.
179
99
Mos.
1
2
278
3
$20,585
555.
$1,523
1,600
$173,805
16,012
$7,406.
6,656
$28,937
7,333
;S54,715
495
21,140
3,123
189,817
14,062
36,270
5,210
• Federal cases are made by Federal officers working independently while joint cases are raade by Federal.
'
•
and state officers working in cooperation.
^ Represents 11 cases which were compromised in the sum of $2,220.
339256 O - 55 - II
142
1954 REPORT OF THE SECRETARY OF THE TREASURY
The I m p o r t a t i o n , m a n u f a c t u r e , and d i s t r i b u t i o n of opium and Its
d e r i v a t i v e s a r e r e g u l a t e d by a s y s t e m of quotas and a l l o c a t i o n s d e s i g n e d to l i m i t t h e i r d i s t r i b u t i o n to v e r i f i e d m e d i c a l n e e d s . A d d i t i o n a l q u a n t i t i e s of opium w e r e I m p o r t e d d u r i n g the y e a r ; c o c a
leaf I m p o r t s w e r e sufficient both for m e d i c i n a l p u r p o s e s and for
t h e m a n u f a c t u r e of n o n n a r c o t i c f l a v o r i n g e x t r a c t s . The quantity
of n a r c o t i c d r u g s e x p o r t e d In 1954 was s l i g h t l y l o w e r than In 1953;
h o w e v e r , the e x p o r t t o t a l Is not significant In c o m p a r i s o n with the
quantity u s e d d o m e s t i c a l l y . The m a n u f a c t u r e of opium d e r i v a t i v e s
continued at a r e l a t i v e l y high l e v e l , p r i n c i p a l l y b e c a u s e of the
m e d i c a l r e q u i r e m e n t s for codeine and p a p a v e r i n e .
P r o g r e s s continued d u r i n g t h e f i s c a l y e a r 1954 In the fleld of
m a n a g e m e n t I m p r o v e m e n t . The B u r e a u ' s p r o c e d u r e s for handling
and accounting for n a r c o t i c s have b e e n f u r t h e r I m p r o v e d and a d d i t i o n a l s e c u r i t y h a s b e e n p r o v i d e d for the w o r k r o o m of the D r u g s
Disposal Committee. Improved legislation has been recommended
to the S t a t e s for t r e a t m e n t of a d d i c t s . P r o c e d u r e s have b e e n w o r k e d
out for the expeditious p r o c u r e m e n t of n a r c o t i c s In c i v i l d e f e n s e
emergencies.
UNITED STATES COAST GUARD
General
The b a s i c duties of t h e United S t a t e s C o a s t G u a r d , as p r e s c r i b e d
In T i t l e 14 of the United S t a t e s Code, e m b r a c e the following: To
e n f o r c e o r a s s i s t In the e n f o r c e m e n t of all a p p l i c a b l e F e d e r a l laws
on the high s e a s and w a t e r s o v e r which the United S t a t e s h a s j u r i s d i c t i o n , with p a r t i c u l a r r e f e r e n c e to t h o s e laws r e l a t i n g to n a v i g a t i o n , shipping, and o t h e r m a r i t i m e aictlvltles; to p r o m o t e the safety
and efficiency of m e r c h a n t v e s s e l s , with the object of p r e v e n t i n g
a v o i d a b l e c a s u a l t i e s , t h r o u g h the a p p r o v a l of p l a n s , m a t e r i a l s , and
e q u i p m e n t u s e d In t h e i r c o n s t r u c t i o n , r e p a i r , and a l t e r a t i o n , the
p e r i o d i c I n s p e c t i o n of m e r c h a n t v e s s e l s and the l i c e n s i n g of t h e i r
c r e w s , and the e n f o r c e m e n t of r e g u l a t i o n s for o p e r a t i o n of m o t o r b o a t s ; to d e v e l o p , e s t a b l i s h , m a i n t a i n , and o p e r a t e aids to m a r i t i m e
n a v i g a t i o n such as l i g h t h o u s e s , l i g h t s h i p s , l i g h t s , r a d i o b e a c o n s ,
l o r a n and r a d i o d i r e c t i o n finder s t a t i o n s , buoys and unlighted
b e a c o n s , as r e q u i r e d to s e r v e t h e n e e d s of c o m m e r c e and the
a r m e d f o r c e s ; to p e r f o r m any and all a c t s n e c e s s a r y to r e s c u e
and aid d i s t r e s s e d p e r s o n s , v e s s e l s , and a i r c r a f t , and to p r o v i d e
m a x i m u m p r o t e c t i o n to life and p r o p e r t y on the high s e a s and
w a t e r s o v e r which the United S t a t e s h a s j u r i s d i c t i o n . Including
o p e r a t i o n of o c e a n s t a t i o n v e s s e l s and the I n t e r n a t i o n a i Ice P a t r o l ;
to m a i n t a i n a s t a t e of r e a d i n e s s to function as a s p e c i a l i z e d s e r v i c e
In the Navy In t i m e of w a r ; and to m a i n t a i n and t r a i n an a d e q u a t e
r e s e r v e force.
A p r i m a r y objective of the C o a s t G u a r d Is the p r e v e n t i o n of l o s s
of life and p r o p e r t y due to I l l e g a l o r unsafe p r a c t i c e s . The m a i n t e n a n c e of safety and o r d e r In m a r i t i m e a c t i v i t y Is not l i m i t e d to the
s t r i c t e n f o r c e m e n t of l a w s , but e n c o m p a s s e s a p r o g r a m of education
ADMINISTRATIVE REPORTS
143
for ship o p e r a t o r s and b o a t m e n , and the e n l i s t m e n t of t h e i r c o o p e r a tion and s e l f - r e g u l a t i o n t o w a r d p r e v e n t i o n of m a r i n e c a s u a l t i e s .
The extent of C o a s t G u a r d o p e r a t i o n s d u r i n g the p a s t f i s c a l y e a r
w a s m a t e r i a l l y r e d u c e d b e c a u s e of the t e r m i n a t i o n of h o s t i l i t i e s In
K o r e a . D e c r e a s e d r e q u i r e m e n t s for s e a r c h and r e s c u e facilities
and o c e a n w e a t h e r s t a t i o n c o v e r a g e In the P a c i f i c O c e a n , and for
p o r t s e c u r i t y a c t i v i t y , r e s u l t e d In I n a c t l v a t l o n of 12 c u t t e r s and 11
a i r c r a f t , and a m a r k e d d e c r e a s e In m i l i t a r y and civilian p e r s o n n e l .
Law e n f o r c e m e n t
The s c o p e of the p o r t s e c u r i t y p r o g r a m conducted u n d e r E x e c u t i v e O r d e r 10173, as a m e n d e d by E x e c u t i v e O r d e r s 10277 and 10352,
was l i m i t e d to the following: C o n t r o l l i n g the e n t r y of m e r c h a n t
v e s s e l s Into d e s i g n a t e d p o r t a r e a s ; s u p e r v i s i n g the loading of C l a s s
A e x p l o s i v e s and a d m i n i s t e r i n g the r e g u l a t i o n s r e l a t i v e to d a n g e r o u s
and h a z a r d o u s c a r g o e s ; s c r e e n i n g m e r c h a n t s e a m e n e m p l o y e d on
c e r t a i n c a t e g o r i e s of United S t a t e s v e s s e l s and w a t e r f r o n t w o r k e r s
for a d m i t t a n c e to w a t e r f r o n t f a c i l i t i e s u n d e r c e r t a i n specified
c o n d i t i o n s ; and p r o t e c t i n g specified c a t e g o r i e s of v e s s e l s and
w a t e r f r o n t f a c i l i t i e s In d e s i g n a t e d p o r t a r e a s f r o m the w a t e r s i d e
and, by spot c h e c k s only, f r o m the s h o r e s i d e .
L i t i g a t i o n Involving the c o n s t i t u t i o n a l i t y of the m e r c h a n t s e a m e n
s c r e e n i n g p r o g r a m r e s u l t e d In a d e c l s l o n b y t h e Ninth C i r c u i t C o u r t
of A p p e a l s , c o n f i r m i n g the d e c i s i o n of the D i s t r i c t C o u r t at S e a t t l e ,
W a s h . , holding t h a t the r e q u i r e m e n t s of due p r o c e s s had not b e e n
m e t to the extent t h a t the notice o f t h e r e a s o n s for r e j e c t i o n was
not sufficiently p a r t i c u l a r i z e d to enable the r e j e c t e e to p r e p a r e his
d e f e n s e a d e q u a t e l y . This s i t u a t i o n h a s b e e n r e m e d i e d by a p p r o p r i a t e
a m e n d m e n t s to the r e g u l a t i o n s r e q u i r i n g that specific I n f o r m a t i o n
be f u r n i s h e d as to rieasons for r e j e c t i o n s ; all r e j e c t e e s who had
b e e n denied c l e a r a n c e u n d e r the p r i o r r e g u l a t i o n s w e r e afforded an
opportunity to h a v e t h e i r c a s e s r e p r o c e s s e d .
During the y e a r , 34,037 m e r c h a n t m a r i n e r s ' d o c u m e n t s b e a r i n g
e v i d e n c e of s e c u r i t y c l e a r a n c e w e r e I s s u e d . A t o t a l of 171 s e c u r i t y
a p p e a l h e a r i n g s w e r e g r a n t e d to t h o s e c l a s s e d as p o o r s e c u r i t y
r i s k s , and 85 of t h e s e w e r e r e j e c t e d .
In the c a t e g o r y of l o n g s h o r e m e n , w a r e h o u s e m e n , p i l o t s , and
o t h e r w a t e r f r o n t w o r k e r s , 67,654 p e r s o n s w e r e s c r e e n e d , 67,227
p o r t s e c u r i t y c a r d s w e r e I s s u e d , and 219 h e a r i n g s w e r e g r a n t e d
upon a p p e a l by p e r s o n s who had b e e n found to be poor s e c u r i t y
r i s k s . A t o t a l of 54 w e r e r e j e c t e d as p o o r s e c u r i t y r i s k s .
The following s t a t i s t i c s r e f l e c t the v o l u m e of e n f o r c e m e n t
a c t i v i t y taiken by the C o a s t G u a r d d u r i n g the y e a r .
Vessels and motorboats boarded
Reports of violations of the Motorboat Act, 1940 (46 U.S.C. 526)
Reports of violations of the Oil Pollution Act, 1924 (33 U.S.C. 431 - 437) - Reports of violations of Port Security Regulations
Permits issued to load or discharge explosives
Total tonnage of explosives covered by above permits
Explosive loadings supervised
Inspections of other hazardous cargoes
-Regattas patrolled
71,631
4,642
163
5,855
1,440
1,088,756
1,420
16,152
931
144
1954 REPORT OF THE SECRETARY OF THE TREASURY
The C o a s t G u a r d a l s o a s s i s t e d o t h e r F e d e r a l a g e n c i e s having
p r i m a r y r e s p o n s i b i l i t y for the e n f o r c e m e n t of the Oil P o l l u t i o n
Act (33 U.S.C. 431 - 437), a n c h o r a g e r e g u l a t i o n s , laws r e l a t i n g to
I n t e r n a l r e v e n u e , c u s t o m s . I m m i g r a t i o n , q u a r a n t i n e , a n d t h e cons e r v a t i o n and p r o t e c t i o n of wildlife and the f i s h e r i e s .
Assistance operations
In d i s c h a r g i n g Its r e s p o n s i b i l i t i e s for t h e p r o m o t i o n of m a r i n e
safety, the C o a s t G u a r d o p e r a t e s r e s c u e f a c i l i t i e s which c o m p r i s e
a s y s t e m of lifeboat s t a t i o n s , r a d i o s t a t i o n s , b a s e s , v e s s e l s , and
a i r c r a f t at s t r a t e g i c points along the c o a s t and Inland w a t e r w a y s .
It a l s o o p e r a t e s the I n t e r n a t i o n a i Ice P a t r o l In the N o r t h Atlantic
Ocean; p r o v i d e s Ice b r e a k i n g s e r v i c e In r i v e r s , h a r b o r s , and the
G r e a t L a k e s ; and m a i n t a i n s o p e r a t i o n s and c o m m u n i c a t i o n s c e n t e r s
In Its s e v e r a l d i s t r i c t s within the c o n t i n e n t a l U n i t e d S t a t e s , A l a s k a ,
P u e r t o R i c o , and Hawaii, and In B e r m u d a and Newfoundland.
A s s i s t a n c e r e n d e r e d d u r i n g f i s c a l y e a r 1954 Is s u m m a r i z e d In
the following s t a t i s t i c s .
Number of assistance calls responded to^
Number of instances of major assistance^ •
Number of instances of minor assistance
Value of vessels and aircraft assisted (including cargo) - Lives saved or persons rescued from peril
Number of vessels towed
Number of vessels refloated- Miles disabled vessels towed
-
-
19,402
2,096
8,984
$ 333,790,343
3,407
7,972
1,192
92,236
IThe difference in the number of calls responded to and the number of instances of
assistance rendered represents those cases in which the Coast Guard responded but in
which assistance was given by some other source or was no longer needed or possible.
^"Major cases" are those wherein immediate danger to mariners, marine and air
commerce was involved and which without Coast Guard assistance probably would have
resulted in death, serious injury to persons, aircraft, or vessels, or great financial
loss from damage to the craft.
T y p i c a l e x a m p l e s of a s s i s t a n c e r e n d e r e d by the C o a s t G u a r d
d u r i n g the y e a r a r e as follows:
C o a s t G u a r d a i r c r a f t and s u r f a c e craft of t h e S e a r c h and R e s c u e
G r o u p at Wake I s l a n d on J u l y 12, 1953, joined with a l a r g e n a v a l
t a s k unit In conducting an I n t e n s i v e s e a r c h for a T r a n s o c e a n A i r
L i n e s D C - 6 a i r c r a f t l a s t r e p o r t e d about 300 m i l e s e a s t of Wake
I s l a n d . The s c e n e of the c r a s h was l o c a t e d and 14 bodies w e r e
recovered.
A s s i s t a n c e which C o a s t G u a r d p a t r o l v e s s e l s a r e r e n d e r i n g to
the A m e r i c a n fishing fleet In the C a m p e c h e Banks a r e a off Mexico
Is I l l u s t r a t e d by an Incident which Involved the fishing v e s s e l
J e a n n e M. This v e s s e l r e p o r t e d t h a t s h e was sinking off C a m p e c h e
Banks on J u l y 9, 1953. The C o a s t G u a r d C u t t e r C a r t l g a n , on p a t r o l ,
p l a c e d a p u m p - a n d - b u c k e t b r i g a d e a b o a r d , pumped the v e s s e l free
of w a t e r , and c o m p l e t e d n e c e s s a r y r e p a i r s so that the J e a n n e M
could r e s u m e h e r r e g u l a r fishing o p e r a t i o n s .
ADMINISTRATIVE REPORTS
145
A n I n s t a n c e of t h e u s e of C o a s t G u a r d e q u i p m e n t d e p l o y e d I n t h e
Pacific to m e e t a Navy r e q u l r e n i e n t for r e s c u e facilities due to
e x t e n d e d o p e r a t i o n s I n t h a t a r e a w a s t h e c a s e of a N a v y a i r c r a f t
f o r c e d t o l a n d I n t h e o p e n s e a , 100 m i l e s w e s t of L u z o n , P h i l i p p i n e
I s l a n d s , b e c a u s e of a n e n g i n e f l r e . A C o a s t G u a r d s e a p l a n e s t a t i o n e d
at Sangley P o i n t p r o c e e d e d to the a r e a , landed In the open s e a ,
p i c k e d up five N a v y m e n f r o m l i f e r a f t s , and r e t u r n e d t h e m to the
N a v a l Station at Sangley P o i n t .
L i f e b o a t s t a t i o n s on the M a s s a c h u s e t t s c o a s t w e r e e m p l o y e d In
r e s c u e o p e r a t i o n s f o l l o w i n g t h e g r o u n d i n g of t h e P a n a m a n i a n v e s s e l
S / S E u g e n i a o n S e p t e m b e r 7, 1 9 5 3 , a s a r e s u l t of t h e h e a v y w e a t h e r
g e n e r a t e d off C a p e C o d b y H u r r i c a n e C a r o l . T h e C a p e C o d L i f e b o a t
S t a t i o n r e m o v e d 13 c r e w m e n f r o m t h e v e s s e l b y b r e e c h e s b u o y , a n d
4 v i a t h e D U K W , a n a m p h i b i o u s t y p e of s u r f a c e c r a f t .
A n u n u s u a l I n s t a n c e of r e m o v i n g p e r s o n n e l f r o m a v e s s e l o c c u r r e d w h e n t h e 6000 ton S/S M a r y l a n d , an o r e c a r r i e r , g r o u n d e d
off M a r q u e t t e , M i c h . , o n S e p t e m b e r 1 2 . A c o o r d i n a t e d r e s c u e w a s
effected using b r e e c h e s buoy and h e l i c o p t e r . A Coast G u a r d h e l l c o p t e r . I n t h e f a c e of d r i v i n g w i n d a n d r a i n , r e m o v e d 12 c r e w
m e m b e r s from the v e s s e l . The weather was so violent during this
o p e r a t i o n t h a t t h e c o m b i n e d e f f o r t s of b o t h p i l o t s w e r e r e q u i r e d t o
hold the c o n t r o l s and s t a b i l i z e the a i r c r a f t . T h e r e w e r e no c a s u a l ties.
O n S e p t e m b e r 14 t h e C o a s t G u a r d C u t t e r Y a k u t a t , p a t r o l l i n g
O c e a n Station D E L T A , a s s i s t e d the Spanish m e r c h a n t m a n S/S M a r t e ,
d e a d In t h e w a t e r with a g a p i n g h o l e at t h e w a t e r l i n e . In p o s i t i o n
7 5 0 m i l e s s o u t h e a s t of A r g e n t i a , N e w f o u n d l a n d . T h e Y a k u t a t p l a c e d
a r e p a i r and s a l v a g e p a r t y a b o a r d the d i s a b l e d v e s s e l , and by
p u m p i n g t h e b i l g e s a n d c o n s t r u c t i n g a b u l k h e a d of c o n c r e t e , t e m p o r a r y r e p a i r s w e r e m a d e which e n a b l e d the S/S M a r t e to p r o c e e d at
r e d u c e d s p e e d to St. J o h n s , Newfoundland.
H e a v y r a i n s f r o m N o v e m b e r 18 t o 2 3 , 1 9 5 3 , I n t h e C o q u i l l e , C o o s ,
a n d W i l l a m e t t e R i v e r V a l l e y s of w e s t e r n O r e g o n c a u s e d f l o o d i n g of
t h e l o w l a n d a r e a s a n d I s o l a t i o n of s o m e t o w n s , n e c e s s i t a t i n g t h e
e v a c u a t i o n of f a m i l i e s a n d l i v e s t o c k . H i g h w a y s w e r e b l o c k e d b y
s l i d e s a n d h i g h w a t e r , a n d a C o a s t G u a r d f l o o d r e l i e f d e t a i l of b o a t s ,
m e n , a n d a i r c r a f t p a r t i c i p a t e d . In r e l i e f a s s i s t a n c e m e a s u r e s ,
cooperating with the Red C r o s s and civil a u t h o r i t i e s .
On M a y 27, 1954, the a i r c r a f t c a r r i e r Bennington; with about 2,000
p e r s o n s a b o a r d , s u f f e r e d a n e x p l o s i o n a n d f l r e 35 m i l e s s o u t h of
B r e n t o n R e e f L i g h t s h i p . A b o u t 100 p e r s o n s w e r e I n j u r e d . A i r c r a f t
from S a l e m A i r Station and Quonset Point p r o c e e d e d to the s c e n e ,
a s s i s t e d In t r a n s p o r t i n g m e d i c a l p e r s o n n e l to t h e B e n n i n g t o n , and
p r o v i d e d air c o v e r for all helicopter o p e r a t i o n s . Une Coast Guard
helicopter m a d e 7 landings aboard the Bennington and t r a n s p o r t e d
a t o t a l of 18 I n j u r e d ; a n o t h e r t r a n s p o r t e d 14 I n j u r e d t o t h e h o s p i t a l .
Many commercial passenger-carrying transoceanic
aircraft
e x p e r i e n c i n g engine trouble or failure w e r e I n t e r c e p t e d and e s c o r t e d
to safety by C o a s t G u a r d a i r c r a f t . T h e v o l u m e o f this w o r k l o a d w a s
l a r g e , e s p e c i a l l y at the m a i n t e r m i n i and m a j o r waypolnts along the
ocean air r o u t e s , such as New York, San F r a n c i s c o , Honolulu,
B e r m u d a , and Argentia. T h e s e p r e c a u t i o n a r y Intercepts contributed
m a t e r i a l l y t o t h e s a f e t y of a i r c o m m e r c e .
146
1954 REPORT OF THE SECRETARY OF THE TREASURY
M a r i n e I n s p e c t i o n and safety m e a s u r e s
No I n s p e c t e d and c e r t i f i c a t e d A m e r i c a n p a s s e n g e r v e s s e l was
Involved In any s e r i o u s c a s u a l t y d u r i n g t h e y e a r , n o r did any
p a s s e n g e r l o s e his life b e c a u s e of a m a r i n e c a s u a l t y Involving
an Inspected p a s s e n g e r v e s s e l .
The duties p e r f o r m e d by the C o a s t G u a r d In p r o m o t i n g safety of
life and p r o p e r t y on v e s s e l s s u b j e c t to navigation and v e s s e l I n s p e c tion laws of the United S t a t e s Include p r o m u l g a t i o n and r e l a t e d
e n f o r c e m e n t of r e g u l a t i o n s r e l a t i n g to I n s p e c t i o n of v e s s e l s and
t h e i r e q u i p m e n t , c o n s t r u c t i o n and r e p a i r of v e s s e l s . I n v e s t i g a t i o n
of m a r i n e c a s u a l t i e s , m a n n i n g and c i t i z e n s h i p r e q u i r e m e n t s ,
m u s t e r i n g and d r i l l i n g of c r e w s , p r o t e c t i o n of m e r c h a n t s e a m e n ,
l i c e n s i n g of officers and pilots and c e r t i f i c a t i n g of s e a m e n , load
line r e q u i r e m e n t s , pilot r u l e s , t r a n s p o r t a t i o n of d a n g e r o u s c a r g o e s
on v e s s e l s , outfitting and o p e r a t i o n of m o t o r b o a t s , l i c e n s i n g of
n a o t o r b o a t o p e r a t o r s , and r e g a t t a s and m a r i n e p a r a d e s .
Of p r i m a r y I m p o r t a n c e to m a r i t i m e nations was the c o m i n g Into
effect on J a n u a r y 1, 1954, of the **Regulatlons for P r e v e n t i n g C o l l i s i o n s at S e a , 1 9 4 8 " which a r e c o m m o n l y known as the **Revlsed
I n t e r n a t i o n a i R u l e s of the R o a d . " T h e s e r u l e s a r e an o u t c o m e of
the I n t e r n a t i o n a i C o n f e r e n c e on the Safety of Life at Sea, 1948, and,
upon a c c e p t a n c e by m a r i t i m e c o u n t r i e s Including the United S t a t e s ,
b e c a m e law. One h u n d r e d and t h i r t y t h o u s a n d c o p i e s of the C o a s t
G u a r d p u b l i c a t i o n , " R u l e s to P r e v e n t C o l l i s i o n s of V e s s e l s and
P i l o t Rules for C e r t a i n Inland W a t e r s , E t c . " which I n c o r p o r a t e d
these changes, were distributed.
Effort was d i r e c t e d t o w a r d solution of the oil pollutlpn p r o b l e m
d u r i n g the y e a r . Although pollution In United S t a t e s w a t e r s Is l e s s
c r i t i c a l t h a n It was a q u a r t e r c e n t u r y ago, the s h a r p r i s e In d o m e s t i c c o n s u m p t i o n of oil h a s m a d e It of continuing I m p o r t a n c e . Cons i d e r a b l e I n t e r e s t h a s b e e n shown In the p r o b l e m a b r o a d , p a r t i c u l a r l y by the N o r t h Atlantic and w e s t e r n E u r o p e a n n a t i o n s . The
United S t a t e s p a r t i c i p a t e d d u r i n g A p r i l and May I n t h e I n t e r n a t i o n a i
C o n f e r e n c e for the P r e v e n t i o n of P o l l u t i o n of the Sea by O i l , and
although It did not b e c o m e a p a r t y to the Convention t h e r e d e v i s e d ,
a s s u r a n c e s w e r e given by t h i s c o u n t r y that r e s e a r c h and education
would be r e d o u b l e d to h e l p e l i m i n a t e t h i s p r o b l e m , t h a t t e c h n i c a l
I n f o r m a t i o n would b e m a d e a v a i l a b l e to o t h e r I n t e r e s t e d n a t i o n s
t h r o u g h the m e d i u m of the United N a t i o n s , and t h a t s e r i o u s study
and c o n s i d e r a t i o n would be given to t h e Convention of 1954.
T h e r e w e r e 2,677 m a r i n e c a s u a l t i e s r e p o r t e d , of which 1,760
r e c e i v e d d e t a i l e d I n v e s t i g a t i o n . Of the c a s u a l t i e s r e c e i v i n g d e t a i l e d
I n v e s t i g a t i o n , 14 w e r e by m a r i n e b o a r d s of I n v e s t i g a t i o n . T h e r e
w e r e 287 l i v e s l o s t In 149 o f t h e s e c a s u a l t i e s . The I n v e s t i g a t i o n s
w e r e h e l d to d e t e r m i n e c a u s e s of s u c h c a s u a l t i e s , p l a c e r e s p o n s i bility t h e r e f o r , and I n s t i t u t e c o r r e c t i v e safety m e a s u r e s w h e r e
I n d i c a t e d . The m o s t s e r i o u s c a s u a l t y t h a t o c c u r r e d d u r i n g the y e a r
was the c o l l i s i o n of the t a n k e r s A t l a n t i c D e a l e r and A t l a n t i c E n g i n e e r In the D e l a w a r e R i v e r on D e c e m b e r 30, 1953, when nine c r e w
members perished.
The m a r i n e safety r e c o r d on t h e n a v i g a b l e w a t e r s was m a r r e d by
t h e l o s s of life r e s u l t i n g from o u t b o a r d m o t o r b o a t a c c i d e n t s . While
c a s u a l t i e s s u c h as the c a p s i z i n g of a 12-foot o u t b o a r d m o t o r b o a t
ADMINISTRATIVE REPORTS
147
on H a u s e r Dam Lake In Montana on May 3, 1954, with the l o s s of
nine l i v e s , and t h e c a p s i z i n g of an 1 8 - f o o t k l t - b u l l t o u t b o a r d m o t o r boat on Lake St. C l a i r on May 16, 1954, with the l o s s of eight l i v e s
w e r e u n u s u a l , c a s u a l t i e s Involving o u t b o a r d m o t o r b o a t s with the
l o s s of one to five l i v e s have b e e n f r e q u e n t .
A new C o a s t G u a r d I n s p i r e d nonprofit o r g a n i z a t i o n known as t h e
" A m i e r i c a n Boat and Yacht C o u n c i l " was r e c e n t l y I n c o r p o r a t e d
u n d e r the l a w s of the S t a t e of N e w Y o r k . The objective of the council
Is to m a k e the k n o w l e d g e , e x p e r i e n c e , and s k i l l s of s m a l l c r a f t
t e c h n i c i a n s a v a i l a b l e to I n d u s t r y , g o v e r n m e n t , e d u c a t i o n a l I n s t i t u t i o n s , boating o r g a n i z a t i o n s , and the g e n e r a l p u b l i c . To a c c o m p l i s h
t h i s o b j e c t i v e , t h e Council Intends to develop and m a k e a v a i l a b l e
r e c o m m e n d e d p r a c t i c e s and e n g i n e e r i n g s t a n d a r d s for I m p r o v i n g
and p r o m o t i n g the d e s i g n , c o n s t r u c t i o n , equipage, and m a i n t e n a n c e
of s m a l l c r a f t . By f o s t e r i n g this a t t e m p t at s e l f - r e g u l a t i o n . It Is
hoped that the s e r i o u s m o t o r b o a t a c c i d e n t e x p e r i e n c e of r e c e n t
y e a r s m a y be r e d u c e d .
The M e r c h a n t M a r i n e Council h e l d 20 r e g u l a r c o m m i t t e e m e e t i n g s
and 3 public h e a r i n g s to c o n s i d e r p r o p o s e d a m e n d m e n t s to r e g u l a t i o n s , and p r o p o s e d l e g i s l a t i o n affecting m a r i t i m e s a f e t y . Among
o t h e r m a t t e r s , specific c o n s i d e r a t i o n was given to: The r e v i s i o n
of r e g u l a t i o n s defining b o u n d a r y l i n e s of Inland w a t e r s f r o m M o b i l e ,
A l a . , w e s t w a r d to the Rio G r a n d e ; new r e g u l a t i o n s dealing with
m a n n i n g r e q u i r e m e n t s for v e s s e l s s u b j e c t to the Officers C o m p e t e n c y C e r t i f i c a t e s Convention; r e v i s i o n of the " R u l e s G o v e r n i n g
the T r a n s p o r t a t i o n of M i l i t a r y E x p l o s i v e s " ; p r o m u l g a t i o n of new
p o l i c i e s with r e s p e c t to the r e v i e w of e x a m i n e r s ' d e c i s i o n s In
s u s p e n s i o n and r e v o c a t i o n p r o c e e d i n g s a g a i n s t m e r c h a n t m a r i n e r s '
d o c u m e n t s and l i c e n s e s ; and c o m p l e t e l y r e v i s e d s p e c i f i c a t i o n s for
life p r e s e r v e r s , e m e r g e n c y d r i n k i n g w a t e r , and c o m b i n a t i o n h o s e
n o z z l e s . P a n e l s of c o n s u l t a n t s and a d v i s e r s f r o m the I n d u s t r y
a s s i s t e d the Council In p r e p a r i n g t h e s e r e g u l a t i o n s .
A d i g e s t of c e r t a i n p h a s e s of the m a r i n e I n s p e c t i o n a c t i v i t i e s
follows:
Gross tonnage
of vessels
Annual inspections completed^
Dry dock examinations
Reinspections.
Special examinations by traveling inspectors of passenger, tank, and
dry cargo vessels
•
Miscellaneous inspections
Undocumented vessels numbered under provisions of act of June 7, 1918,
as amended (46" U.S.C. 28)^
Violations of navigation and vessel inspection laws.....
,
Factory "inspections-'
;
Merchant vessel plans reviewed
17,704,437
19,353,728
• Includes 279 vessels, totaling 604,198 gross tons, which were conversions or new construction completed
"
•
during the year.
^ The total of vessels numbered is 1,018 less than that reported for the fiscal year 1953, mainly because
of removal from the records of 7,629 vessels which are exerapt from the numbering requirements. This represents a net gain of 6,611 numbered vessels. During the past three years a total of 133,971 vessels v/hich are
exempt from the numbering act have been removed from the records.
^ There were factory inspections of 461,445 items of equipment.
148
1954 REPORT OF THE SECRETARY OF THE TREASURY
M e r c h a n t m a r i n e p e r s o n n e l . - - T h e l i c e n s i n g and c e r t i f i c a t i n g of
m e r c h a n t m a r i n e p e r s o n n e l Included I s s u a n c e of 791319 d o c u m e n t s .
Of this n u m b e r 22,695 w e r e I s s u e d to p e r s o n s without p r i o r s e a
s e r v i c e and 1,121 w e r e l i c e n s e s I s s u e d to r a d i o officers u n d e r the
p r o v i s i o n s of the act of May 12, 1948 (46 U.S.C. 229(c)). In t h e
I n t e r e s t of n a t i o n a l defense 110 Individual w a i v e r s of m a n n i n g
r e q u i r e m e n t s for m e r c h a n t v e s s e l s w e r e I s s u e d . Shipping c o m m i s s i o n e r s s u p e r v i s e d the e x e c u t i o n of 12,522 s e t s of shipping
a r t i c l e s In connection with the s h i p m e n t and d i s c h a r g e of s e a m e n .
M e r c h a n t m a r i n e I n v e s t i g a t i n g units In m a j o r United S t a t e s p o r t s
and m e r c h a n t m a r i n e d e t a i l s In London, A n t w e r p , B r e m e r h a v e n ,
N a p l e s , T r i e s t e , P i r a e u s , and Y o k o h a m a continued to o p e r a t e In the
a d m i n i s t r a t i o n of d i s c i p l i n e In the m e r c h a n t m a r i n e In a c c o r d a n c e
with t h e p r o v i s i o n s of Section 4450 of the R e v i s e d S t a t u t e s , as
a m e n d e d (46 U.S.C. 239(d)). During the y e a r a t o t a l of 12,160 I n v e s t i g a t i o n s of c a s e s Involving n e g l i g e n c e . I n c o m p e t e n c e , and
m i s c o n d u c t w e r e c o n d u c t e d . As a r e s u l t of t h e s e I n v e s t i g a t i o n s ,
c h a r g e s w e r e p r e f e r r e d and h e a r i n g s held on 1,227 c a s e s by civilian
e x a m i n e r s . D i s c i p l i n a r y action was t a k e n on 1,101 of the c a s e s
heard.
Aids to navigation
On J u n e 30, 1954, a t o t a l of 38,451 aids to navigation w e r e m a i n t a i n e d In the navigable w a t e r s of the United S t a t e s , Its T e r r i t o r i e s
and p o s s e s s i o n s , the T r u s t T e r r i t o r y of t h e P a c i f i c I s l a n d s , and at
o v e r s e a s m i l i t a r y b a s e s . T h e s e aids c o n s i s t e d of l o r a n s t a t i o n s ,
r a d a r b e a c o n s t a t i o n s , light s t a t i o n s , fog s i g n a l s t a t i o n s , r a d i o b e a c o n s t a t i o n s , l i g h t s h i p s , lighted and unlighted b u o y s , m i n o r
l i g h t s , and d a y b e a c o n s .
D u r i n g the y e a r , 1,443 new aids w e r e e s t a b l i s h e d and 1,248 a i d s
w e r e d i s c o n t i n u e d , r e s u l t i n g In a net I n c r e a s e of 195. In g e n e r a l ,
the m a j o r i t y of the c h a n g e s In a i d s to navigation w e r e m a d e to
m a r k c o m p l e t e d r i v e r and h a r b o r I m p r o v e m e n t s In the p r i n c i p a l
h a r b o r s of the United S t a t e s and the I n t r a c o a s t a l W a t e r w a y f r o m
Norfolk, Va., to the M e x i c a n b o r d e r . H o w e v e r , additional changes
w e r e m a d e In aids b e c a u s e of changes In n a t u r a l channels In o r d e r
to p r o v i d e the m a r i n e r with adequate aids to I n s u r e safety of n a v i gation.
As a r e s u l t of a continuing r e v i e w of the need for aids and the
changing o r r e l o c a t i n g of aids to effect e c o n o m i e s and I m p r o v e the
s y s t e m , s i x r a d a r b e a c o n s t a t i o n s w e r e d i s e s t a b l i s h e d and one was
t r a n s f e r r e d to the Navy D e p a r t m e n t .
The w o r l d - w i d e l o r a n s y s t e m of J u n e 30, 1954, c o m p r i s e d 53
s t a t i o n s , of which 40 w e r e o p e r a t e d by the C o a s t G u a r d . During
the y e a r , t h r e e s t a t i o n s In Newfoundland and L a b r a d o r w e r e t r a n s f e r r e d to C a n a d a , and four new C o a s t G u a r d o p e r a t e d s t a t i o n s
w e r e p l a c e d In s e r v i c e In the P h i l i p p i n e and C a r o l i n e I s l a n d s .
Ocean stations
The C o a s t G u a r d m a i n t a i n e d five o c e a n s t a t i o n s In the N o r t h
A t l a n t i c O c e a n and two In the P a c i f i c t h r o u g h o u t the y e a r . T h r e e
additional s t a t i o n s w e r e m a i n t a i n e d In the P a c i f i c for a p p r o x i m a t e l y
the f i r s t s i x m o n t h s of the y e a r . One additional North Atlantic
ADMINISTRATIVE REPORTS
149
s t a t i o n was o p e r a t e d by the C o a s t G u a r d t w o - t h i r d s of the t i m e ,
and by the N e t h e r l a n d s the r e m a i n d e r .
O c e a n s t a t i o n v e s s e l s p r o v i d e d s e a r c h ahd r e s c u e , c o m m u n i c a t i o n s , a i r navigation f a c i l i t i e s , and m e t e o r o l o g i c a l s e r v i c e s In the
o c e a n a r e a s r e g u l a r l y t r a v e r s e d by a i r c r a f t of the United S t a t e s
and o t h e r c o o p e r a t i n g g o v e r n m e n t s . D u r i n g 1953, C o a s t G u a r d
v e s s e l s t r a n s m i t t e d o v e r 60,000 w e a t h e r r e p o r t s , m a d e a p p r o x i m a t e l y 40,000 r a d i o c o n t a c t s with a i r c r a f t , r e n d e r e d a s s i s t a n c e In
36 c a s e s , and c r u i s e d a p p r o x i m a t e l y 700,000 m i l e s In c o n n e c t i o n
with this p r o g r a m .
I n t e r n a t i o n a i Ice P a t r o l
The p o s t - s e a s o n a c t i v i t i e s of the I n t e r n a t i o n a i Ice O b s e r v a t i o n
and Ice P a t r o l S e r v i c e In the N o r t h Atlantic O c e a n for the 1953
s e a s o n c o n s i s t e d of an o c e a n o g r a p h i c s u r v e y m a d e by the C o a s t
G u a r d C u t t e r E v e r g r e e n from J u l y 7, to J u l y 27, 1953, In the a r e a
n o r t h e r l y froni the G r a n d Banks to Cape F a r e w e l l , G r e e n l a n d .
P r e l i m i n a r y a e r i a l Ice r e c o n n a i s s a n c e for 1954 by a i r c r a f t o p e r a t ing f r o m A r g e n t i a , Newfoundland, c o m m e n c e d on F e b r u a r y 5, 1954,
and r o u t i n e a e r i a l Ice r e c o n n a i s s a n c e was begun F e b r u a r y 16,
1954. Although the N o r t h A t l a n t i c shipping lane then In effect was
m e n a c e d by Ice In late May and e a r l y J u n e , a s u r f a c e p a t r o l was
not I n a u g u r a t e d as the p o s i t i o n s of the Ice w e r e a c c u r a t e l y known
and the d a n g e r to shipping was t e m p o r a r y . The C o a s t G u a r d C u t t e r
E v e r g r e e n m a d e four c r u i s e s c a r r y i n g out the p r o g r a m pf o c e a n o g r a p h i c s u r v e y s In the v i c i n i t y of the G r a n d Banks of Newfoundland.
B e r i n g Sea P a t r o l
The B e r i n g Sea P a t r o l was c a r r i e d out by the C o a s t G u a r d C u t t e r
S t o r i s from J u l y 6 to S e p t e m b e r 28, 1953. The p u r p o s e s o f t h i s
p a t r o l a r e the p r o t e c t i o n of life and p r o p e r t y , p r o t e c t i o n of the
s e a l h e r d s and o t h e r wildlife, law e n f o r c e m e n t and t r a n s p o r t a t i o n
of a floating c o u r t in the a d m i n i s t r a t i o n of j u s t i c e , the furnishing
of m e d i c a l and d e n t a l a s s i s t a n c e to n a t i v e s and o t h e r s In r e m o t e
l o c a l i t i e s In the a r e a s contiguous to the B e r i n g Sea and A r c t i c
O c e a n , and the l o g i s t i c s s u p p o r t of I s o l a t e d C o a s t G u a r d f a c i l i t i e s .
D u r i n g the p a t r o l the S t o r i s c r u i s e d 8,824 m i l e s , c a r r i e d 12 p a s s e n g e r s on m i s s i o n s In the public I n t e r e s t , t r a n s p o r t e d 143.6 tons
of f r e i g h t , and r e n d e r e d nxedlcal t r e a t m e n t to 1,687 p e r s o n s and
d e n t a l t r e a t m e n t to 697 p e r s o n s .
Operational training
In p u r s u a n c e of the C o a s t G u a r d ' s r e s p o n s i b i l i t y to function a s a
s p e c i a l i z e d s e r v i c e in the Navy in t i m e of w a r , 180 v e s s e l s and 50
a i r c r a f t p a r t i c i p a t e d in C o a s t G u a r d o r Navy t r a i n i n g e x e r c i s e s . The
m o s t a d v a n c e d e x e r c i s e s w e r e t h o s e conducted a t Navy fleet t r a i n i n g
c o m m a n d s by the 30 l a r g e c u t t e r s . T h e s e v e s s e l s , which t r a i n u n d e r
the Navy c u r r i c u l u m for s i m i l a r t y p e s , p e r f o r m e d v e r y c r e d i t a b l y in
this t r a i n i n g and a r e g e n e r a l l y c l a s s i f i e d by the Navy a s " r e a d y for
fleet o p e r a t i o n s , " T h e s m a l l e r v e s s e l s a n d a i r c r a f t have b e e n t r a i n e d
to a d e g r e e c o n s i s t e n t with t h e i r p e a c e t i m e o p e r a t i o n a l d u t i e s in unit
e x e r c i s e s such a s a n t i s u b m a r i n e , - g u n n e r y , d a m a g e c o n t r o l , s e a r c h
and r e s c u e , and defense a g a i n s t u n c o n v e n t i o n a l w e a p o n s .
1954 REPORT OF THE SECRETARY OF THE TREASURY
150
Facilities, equipment, construction, and development
F l o a t i n g u n i t s . - - T h e l a r g e r s h i p s iri a c t i v e c o m m i s s i o n a t t h e e n d
of t h e y e a r c o n s i s t e d of 183 c u t t e r s a n d b u o y t e n d e r s of v a r i o u s
t y p e s , 7 4 p a t r o l b o a t s , 36 l i g h t s h i p s , 39 h a r b o r t u g s , a n d 12 b u o y
boats. During the y e a r they c r u i s e d 3,076,650 m i l e s a s c o m p a r e d
w i t h 3 , 2 9 9 , 2 1 5 m i l e s t h e p r e v i o u s y e a r . I n c l u d e d i n t h e 183 c u t t e r s
are two special units, the Coast Guard Cutter Courier and the Coast
Guard Cutter Eagle. The C o u r i e r , a 339-foot v e s s e l equipped with
radio broadcasting facilities, is manned and operated by the Coast
Guard for the United States Information Agency. T h e Eagle, a 2 9 5 foot b a r k , i s u s e d e x c l u s i v e l y f o r t r a i n i n g p u r p o s e s a n d i s p l a c e d
in c o m m i s s i o n e a c h y e a r f o r t h e C o a s t G u a r d C a d e t p r a c t i c e c r u i s e .
C o n s t r u c t i o n of t h e n e w C o a s t G u a r d - d e s i g n e d , d i e s e l - p o w e r e d ,
s t e e l , s e a g o i n g 9 5 - f o o t p a t r o l b o a t s w a s c o m p l e t e d in J a n u a r y 1954.
O p e r a t i o n a l p e r f o r m a n c e of t h e s e b o a t s h a s b e e n e x c e l l e n t .
T h e c o n v e r s i o n of t w o s t e a m - p r o p e l l e d b u o y t e n d e r s w a s s t a r t e d
d u r i n g t h e y e a r . C o n v e r s i o n c o n s i s t s of r e p l a c i n g t h e s t e a m p l a n t
with diesel reduction gear installations having pilothouse control,
r e p l a c i n g o l d b u o y - h a n d l i n g e q u i p m e n t w i t h t h e l a t e s t a n d m o s t efficient gear, and m o d e r n i z i n g t h e living a c c o m m o d a t i o n s . This conv e r s i o n a n d m o d e r n i z a t i o n w i l l e x t e n d t h e u s e f u l l i f e of t h e t e n d e r s
an e s t i m a t e d fifteen y e a r s , a s well a s i n c r e a s e e c o n o m y and effic i e n c y in o p e r a t i o n .
Eleven d e s t r o y e r escort vessels w e r e deactivated, p r e s e r v e d by
dehumidification, d e c o m m i s s i o n e d , and r e t u r n e d to the Navy. One
d e s t r o y e r e s c o r t i s i n p r o c e s s of b e i n g p r e s e r v e d . T h i s d e a c t i v a t i o n of v e s s e l s o n l o a n f r o m t h e N a v y i s d u e t o t h e c u r t a i l m e n t of
the ocean station p r o g r a m .
Shore establishments
S h o r e e s t a b l i s h m e n t s a t t h e e n d of t h e f i s c a l y e a r
included:
12
2
4
4
25
23
2
10
1
1
1
9
11
1
d i s t r i c t offices
46 m a r i n e i n s p e c t i o n offices
a r e a offices
7 merchant marine
details
inspection offices
l o c a t e d in f o r e i g n p o r t s
section offices
11 e x a m i n e r offices
bases
34 g r o u p offices
depots
1 shipyard
supply c e n t e r s
311 m a n n e d light s t a t i o n s
57 light a t t e n d a n t s t a t i o n s
supply d e p o t s
1 fog s i g n a l s t a t i o n
receiving center
3 radio beacon stations
training station
1 electronic engineering staacademy
tion
air stations
27 r e c r u i t i n g s t a t i o n s
air detachments
a i r c r a f t r e p a i r and
5 ship t r a i n i n g d e t a c h m e n t s
supply base
13 e l e c t r o n i c r e p a i r s h o p s
15 r a d i o s t a t i o n s
1 field t e s t i n g and d e v e l o p 144 lifeboat s t a t i o n s
m e n t unit
38 l o r a n t r a n s m i t t i n g s t a t i o n s 9 m o o r i n g s
C a p t a i n of the P o r t offices, s u p p l e m e n t e d by p o r t s e c u r i t y u n i t s ,
c o n t i n u e d t o be m a i n t a i n e d in m a j o r s h i p p i n g c e n t e r s .
Six of the s e a r c h and r e s c u e g r o u p s p r e v i o u s l y e s t a b l i s h e d to m e e t
ADMINISTRATIVE REPORTS
151
the n e e d s of the i n c r e a s e d m i l i t a r y o p e r a t i o n s in c e r t a i n s t r a t e g i c
a r e a s w e r e d i s e s t a b l i s h e d d u r i n g thc y e a r a s a r e s u l t of d e c r e a s e d
requirements.
C o n s t r u c t i o n p r o j e c t s w e r e c o m p l e t e d on l o r a n t r a n s m i t t i n g s t a t i o n s at Nantucket, M a s s . , F o l l y Island, S. C , Hobe Sound, F l a . ,
Cape B l a n c o , O r e g . , P o i n t G r e n v i l l e , Wash., Point A r e n a , Calif.,
Point A r g u e l l o , Calif., and at four l o c a t i o n s in the W e s t e r n Pacific
a r e a . Work w a s c o m p l e t e d on the e x t e n s i o n or r e p l a c e m e n t of s e a plane r a m p s , t o g e t h e r with paving r e i n f o r c e m e n t , at a i r s t a t i o n s in
St. P e t e r s b u r g , F l a . , E l i z a b e t h City, N . C , and San F r a n c i s c o ,
Calif,, to a c c o m m o d a t e new P5M1 a i r c r a f t . O t h e r w o r k c o m p l e t e d
included an i n d u s t r i a l shop a t the C o a s t G u a r d B a s e , Sault S t c .
M a r i e , Mich., and the r e b u i l d i n g of the launchway at Point A r g u e l l o
Lifeboat Station.
C o n s t r u c t i o n p r o j e c t s begun d u r i n g the y e a r and still In p r o g r e s s
a r e l o r a n t r a n s m i t t i n g s t a t i o n s at t h r e e l o c a t i o n s i n t h e A r c t i c a r e a ;
c o n s t r u c t i o n of a s t e e l pile bulkhead at the Coast Guard B a s e , Woods
Hole, M a s s . , and r e s t o r a t i o n of the Elbow of the C r o s s Ledge Light,
D e l . , which w a s d a m a g e d by a p r i v a t e v e s s e l . Other w o r k in p r o g r e s s
includes the c o n s t r u c t i o n of the St. Johns R i v e r Light Station, F l a . ,
to r e p l a c e the St. Johns L i g h t s h i p , and the c o n s t r u c t i o n of a wharf
and buoy s l a b at the Coast G u a r d Base„ Key West, F l a ,
A i r c r a f t . - - T h e n u m b e r of fixed and r o t a r y wing a i r c r a f t o p e r a t e d
by the C o a s t G u a r d w a s g r a d u a l l y r e d u c e d f r o m 137 to 126 d u r i n g
the y e a r . T h i s r e d u c t i o n w a s the r e s u l t of the c u r t a i l m e n t of c e r t a i p
s e a r c h and r e s c u e functions In the P a c i f i c . The a i r c r a f t w e r e d e ployed f r o m nine a i r s t a t i o n s and f o u r t e e n a i r d e t a c h m e n t s , of which
two of the l a t t e r w e r e d e c o m m i s s i o n e d d u r i n g the y e a r . The a i r
d e t a c h m e n t s r e m a i n i n g In o p e r a t i o n outside the United S t a t e s w e r e
l o c a t e d at A r g e n t i a , Newfoundland; B e r m u d a ; San Juan, P u e r t o R i c o ;
Honolulu, T . H . ; . G u a m , M. I.; Sangley P o i n t , R. P . ; Annette Island,
T . A.; and Kodiak, T . A.
In c a r r y i n g out v a r i o u s d u t i e s , 18,617 s o r t i e s w e r e flown for a
t o t a l of 44,443 h o u r s . A i r c r a f t flew 1,458,035 t o n - m i l e s of supplies
and equipment In l o g i s t i c s u p p o r t of Isolated Coast Guard s h o r e
units not s e r v e d by r e g u l a r c o m m e r c i a l a i r or s u r f a c e t r a n s p o r t a tion.
T h i r t y fixed wing and e l e v e n r o t a r y wing a i r c r a f t w e r e a c q u i r e d
a s r e p l a c e m e n t s for o v e r a g e a i r c r a f t , enabling the l a s t o f t h e
P B Y - 5 A a m p h i b i a n s which had b e e n used by the Coast Guard
throughout World War II to be r e t i r e d f r o m s e r v i c e .
C o m m u n i c a t i o n s . - - A n u m b e r of C o a s t Guard s t a t i o n s have I n s t i tuted a r a d i o watch on the new I n t e r n a t i o n a i Survival Craft f r e quency 8364 k c / s , which c a m e Into w o r l d - w i d e effect on S e p t e m b e r
1, 1953, In c o n f o r m a n c e with the Atlantic City Radio R e g u l a t i o n s ,
r e p l a c i n g the United States c a l l i n g and d i s t r e s s frequency 8280 k c / s .
The g u a r d i n g of 8280 k c / s w a s discontinued July 1, 1954.
New d e v e l o p m e n t s . - - T h e s u c c e s s f u l o p e r a t i o n of s e m i a u t o m a t i c
l o r a n t r a n s m i t t i n g s t a t i o n s h a s b e e n a significant d e v e l o p m e n t In
e l e c t r o n i c a i d s to n a v i g a t i o n . F l e l d t r i a l s and I n - s e r v l c c o p e r a t i o n
have p r o v e n the f e a s i b i l i t y and p r a c t i c a b i l i t y of o p e r a t i n g l o r a n
t r a n s m i t t i n g s t a t i o n s with m i n i m u m s u p e r v i s i o n . The I n c r e a s e d
c o m p l e x i t y of e l e c t r o n i c s I n s t a l l a t i o n s h a s b e e n offset by a r e d u c t i o n
In o p e r a t i n g p e r s o n n e l w h e r e s e m i a u t o m a t i c I n s t a l l a t i o n s have b e e n
made.
1 52
1954 REPORT OF THE SECRETARY OF THE TREASURY
S e v e r a l a u t o m a t i c d i r e c t i o n finder Installations, d e s i g n e d by the
C o a s t G u a r d f o r m a r i n e u s e , w e r e p l a c e d In o p e r a t i o n f o r e v a l u a t i o n .
T h i s e q u i p m e n t . In a d d i t i o n t o c o v e r i n g t h e m a r i n e r a d i o b e a c o n
band, w a s e s p e c i a l l y designed to c o v e r s m a l l boat radiotelephone
frequencies.
A p r o g r a m of e l e c t r o n i c e q u i p m e n t m o d e r n i z a t i o n h a s b e e n
v i g o r o u s l y p r o s e c u t e d . I n c l u d i n g t h e r e p l a c e m e n t of r a d a r , c o m m u n i c a t i o n , and h o m i n g e q u i p m e n t for a i r c r a f t . F o r v e s s e l s , the
p r o g r a m I n c l u d e s I n s t a l l a t i o n of I m p r o v e d e c h o - s o u n d i n g a n d e c h o ranging e q u i p m e n t , a u t o m a t i c d i r e c t i o n f i n d e r s , and I m p r o v e d
communication equipment. F o r units a s h o r e , a r e m o t e controlled
r e c e i v e r h a s been developed to Improve radio r e c e p t i o n w h e r e
r e q u i r e d , and a r e m o t e - c o n t r o l l e d radio direction finder has been
developed which will provide m o r e a c c u r a t e b e a r i n g s without r e quiring additional manned facilities.
I n s t a l l a t i o n of a n I n t e g r a t e d s p a r e p a r t s s y s t e m f o r e l e c t r o n i c
e q u i p m e n t h a s b e e n u n d e r w a y on l a r g e r C o a s t G u a r d v e s s e l s , and
at r a d i o , r a d i o - b e a c o n , and l o r a n t r a n s m i t t i n g s t a t i o n s . T h i s s y s t e m
b a s e s t h e a l l o w a n c e of e l e c t r o n i c s p a r e p a r t s r e q u i r e d f o r m a i n t e n a n c e p u r p o s e s u p o n t h e o v e r a l l I n s t a l l a t i o n , I n s t e a d of u p o n a
s e p a r a t e a l l o w a n c e f o r e a c h p i e c e of e q u i p m e n t . I n a s m u c h a s
m a n y s p a r e p a r t s a r e c o m m o n t o s e v e r a l p i e c e s of e q u i p m e n t ,
a c o n s i d e r a b l e r e d u c t i o n In I n v e n t o r i e s a n d s t o r a g e s p a c e w i t h
n o l o s s In r e l i a b i l i t y of o p e r a t i o n h a s b e e n r e a l i z e d .
Ship S t r u c t u r e C o m m i t t e e . - - T h e Ship S t r u c t u r e C o m m i t t e e c o n t i n u e d i t s r e s e a r c h p r o g r a m t o i m p r o v e t h e h u l l s t r u c t u r e s of
s h i p s . U n d e r t h e c h a i r m a n s h i p of t h e E n g i n e e r i n C h i e f of t h e
C o a s t G u a r d , t h e C o m m i t t e e c o n s i s t s of m e m b e r s of t h e v a r i o u s
a g e n c i e s principally c o n c e r n e d with ships. I.e., Navy D e p a r t m e n t ,
M a r i t i m e A d m i n i s t r a t i o n , t h e A m e r i c a n B u r e a u of S h i p p i n g , a n d
t h e C o a s t G u a r d . T h e N a t i o n a l A c a d e m y of S c i e n c e s - - N a t i o n a l
Research
Council continues to contribute Important technical
a s s i s t a n c e and a d v i c e .
Personnel
O n J u n e 3 0 , 1 9 5 4 , t h e m i l i t a r y p e r s o n n e l s t r e n g t h of t h e C o a s t
G u a r d o n a c t i v e d u t y w a s 2 9 , 1 5 4 , c o n s i s t i n g of 2 , 6 5 3 c o m m i s s i o n e d
o f f i c e r s , 7 0 0 c o m m i s s i o n e d w a r r a n t o f f i c e r s , 3 0 3 c a d e t s , 156 w a r r a n t o f f i c e r s , a n d 2 5 , 342 e n l i s t e d m e n . T h e c i v i l i a n f o r c e c o n s i s t e d
of 2 , 1 9 9 s a l a r i e d p e r s o n n e l , 2 , 2 5 3 w a g e b o a r d e m p l o y e e s a n d 5 1 1
p a r t - t i m e l a m p l i g h t e r s . T h i s Is a r e d u c t i o n of 8 7 9 b e l o w t h e c i v i l i a n
f o r c e o n J u n e 3 0 , 1 9 5 3 , e x c l u s i v e of v a c a n c i e s .
O n M a y 2 8 , 1 9 5 4 , 88 c a d e t s w e r e g r a d u a t e d f r o m t h e C o a s t G u a r d
A c a d e m y a n d w e r e c o m m i s s i o n e d a s e n s i g n s . In t h e 1954 n a t i o n wide c o m p e t i t i v e e x a m i n a t i o n for a p p o i n t m e n t a s c a d e t s , 463 r e c e i v e d p a s s i n g g r a d e s f r o m a m o n g t h e 1,024 p e r s o n s w h o t o o k t h e
e x a m i n a t i o n . F r o m t h i s n u m b e r 2 0 0 w e r e a p p o i n t e d a s t h e C l a s s of
1958.
T h e c o m m i s s i o n e d o f f i c e r s t r e n g t h w a s d e c r e a s e d by 524 offic e r s d u r i n g t h e y e a r . N e w a p p o i n t m e n t s c o n s i s t e d of 88 A c a d e m y
g r a d u a t e s , 10 o f f i c e r s f r o m t h e M e r c h a n t M a r i n e u n d e r t h e a u t h o r i t y
of t h e a c t of A u g u s t 4 , 1949 ( 1 4 U . S . C . 2 2 5 ) , a n d 2 4 7 g r a d u a t e s of
the officer candidate school f r o m a m o n g qualified c o m m i s s i o n e d
w a r r a n t a n d w a r r a n t o f f i c e r s a n d e n l i s t e d m e n of t h e C o a s t G u a r d .
ADMINISTRATIVE REPORTS
153
T h e s e a d d i t i o n s w e r e m o r e t h a n o f f s e t b y t h e r e l e a s e of r e s e r v e
o f f i c e r s f r o m a c t i v e d u t y , a n d t h e r e t i r e m e n t o r r e s i g n a t i o n of
r e g u l a r officers. The w a r r a n t officer s t r e n g t h w a s d e c r e a s e d by
50 d u r i n g t h e y e a r In o r d e r t o m e e t t h e n u m b e r a u t h o r i z e d f o r 1 9 5 5 .
D u r i n g t h e y e a r , 1 0 , 4 9 2 m e n a p p l i e d f o r e n l i s t m e n t In t h e C o a s t
G u a r d . Of t h e s e , 3 , 7 3 8 w e r e e n l i s t e d ; 2 , 6 3 7 w e r e r e j e c t e d f o r
p h y s i c a l r e a s o n s ; 3,324 w e r e r e j e c t e d for o t h e r r e a s o n s ; 472 w e r e
a c c e p t e d but f a i l e d to e n l i s t ; and 321 a p p l i c a t i o n s w e r e p e n d i n g on
J u n e 3 0 , 1 9 5 4 . A t o t a l of 2 , 3 2 8 m e n w e r e e n l i s t e d in t h e C o a s t
Guard Reserve.
I n M a r c h of 1 9 5 4 a n e a r l y r e l e a s e p r o g r a m w a s a d o p t e d w h e r e b y
nonrated m e n were released six months prior tothe n o r m a l expirat i o n of e n l i s t m e n t . T h e p u r p o s e of t h i s p r o g r a m w a s t w o f o l d : T o
l e s s e n t h e h e a v y a t t r i t i o n e x p e c t e d In t h e m i d d l e of f i s c a l 1 9 5 5 ;
and to p e r m i t m o r e uniform r e c r u i t i n g quotas throughout the y e a r ,
t h e r e b y p r o m o t i n g g r e a t e r e f f i c i e n c y In r e c r u i t t r a i n i n g .
In f i s c a l 1954, e n l i s t e d r e s e r v i s t s w i t h o u t p r e v i o u s a c t i v e d u t y
w e r e v o l u n t a r i l y • c a l l e d t o a c t i v e d u t y u n d e r t h e p r o v i s i o n s of
S e c t i o n 4 ( c ) ( 2 ) of t h e U n i v e r s a l M i l i t a r y T r a i n i n g a n d S e r v i c e A c t ,
a s a m e n d e d (50 A p p . U . S . C . 4 5 1 - 4 7 3 ) . On J u n e 30, 1954, t h e r e w e r e
1,994 r e s e r v e s o n a c t i v e d u t y .
T h e r e w e r e 316 v o l u n t a r y e n l i s t e d r e t i r e m e n t s d u r i n g f i s c a l
1 9 5 4 . T h e m i n i m u m l e n g t h of s e r v i c e c o m p l e t e d w a s 2 4 y e a r s a n d
4 m o n t h s . One h u n d r e d and e i g h t y - t w o m e n w e r e r e t i r e d for age,
30 y e a r s s e r v i c e , o r p h y s i c a l d i s a b i l i t y .
A c o m p r e h e n s i v e p r o g r a m of s p e c i a l i z e d p o s t g r a d u a t e t r a i n i n g
for officers w a s continued d u r i n g the y e a r . F o r t y - f i v e officers
c o m p l e t e d t r a i n i n g , 37 c o n t i n u e d In a d v a n c e d s t a g e f s , a n d 33 c o m m e n c e d t r a i n i n g . A t o t a l of 47 o f f i c e r s c o m p l e t e d b a s i c f l i g h t
t r a i n i n g a n d s p e c i a l i z e d c o u r s e s In h e l i c o p t e r a n d I n s t r u m e n t f l i g h t s .
In a d d i t i o n , s h o r t r e f r e s h e r c o u r s e s w e r e a r r a n g e d t h r o u g h t h e
c o o p e r a t i o n of t h e N a v y t o e n a b l e c r e w s of C o a s t G u a r d v e s s e l s
t o m a i n t a i n t h e h i g h , s t a n d a r d of m i l i t a r y r e a d i n e s s n e c e s s a r y f o r
m o b i l i z a t i o n . A t o t a l of 3 6 6 o f f i c e r s c o m p l e t e d t h e s e a n d o t h e r s h o r t
technical c o u r s e s during the y e a r .
The a d v a n c e d t r a i n i n g p r o g r a m for petty officers w a s c u r t a i l e d
d u r i n g t h e f i s c a l y e a r . T h e a v e r a g e n u m b e r of p e r s o n s I n . t r a i n i n g
p e r m o n t h w a s 8 6 5 ; a t o t a l of 1,679 w e r ^ g r a d u a t e d f r o m C o a s t
G u a r d p e t t y o f f i c e r s c h o o l s ; a n d 1,108 w e r e g r a d u a t e d f r o m N a v y
a n d o t h e r s e r v i c e s c h o o l s . E n r o l l m e n t s In C o a s t G u a r d I n s t i t u t e
c o u r s e s t o t a l e d 10,325, and 3,193 p e r s o n s c o m p l e t e d c o u r s e s d u r i n g
t h e f i s c a l y e a r . E n r o l l m e n t of C o a s t G u a r d p e r s o n n e l In c o r r e spondence c o u r s e s , self-teaching c o u r s e s , and university extension
c o u r s e s through the A r m e d F o r c e s Institute totaled 2,293.
In J u l y 1 9 5 3 , a c o m p r e h e n s i v e o f f i c e r p r o m o t i o n e x a m i n a t i o n
p r o g r a m was Inaugurated. Examinations were scheduled every
f o u r m o n t h s . O f f i c e r s In e a c h g r a d e b e l o w t h a t of p e r m a n e n t
c a p t a i n w e r e r e q u i r e d t o t a k e a n e x a m i n a t i o n In a p a r t i c u l a r
s u b j e c t e v e r y f o u r m o n t h s . T w o of t h e s e s e r i e s of e x a m i n a t i o n s
h a v e b e e n c o m p l e t e d , w i t h 1,460 o f f i c e r s p a r t i c i p a t i n g in 7 e x a m i n a t i o n s in J a n u a r y , a n d 1,647 o f f i c e r s p a r t i c i p a t i n g in 14 e x a m i n a t i o n s in M a y .
The Coast Guard continued
i t s p r o g r a m of c o o p e r a t i o n i n t h e
t r a i n i n g of f o r e i g n n a t i o n a l s . D u r i n g 1 9 5 4 , v a r i o u s t r a i n i n g p r o g r a m s
1 54
1954 REPORT OF THE SECRETARY OF THE TREASURY
w e r e a r r a n g e d for 27 v i s i t o r s f r o m J a p a n , F o r m o s a , the P h i l i p p i n e s ,
P a n a m a , Haiti, Iceland, Thailand, G r e e c e , Turkey, I s r a e l , Sweden,
and Gerniany. T h e s e t r a i n i n g p r o g r a m s c o v e r e d aids to navigation,
port s e c u r i t y , v e s s e l Inspection, w e a t h e r p a t r o l , and s e a r c h and
rescue activities.
P u b l i c H e a l t h S e r v i c e s u p p o r t . - - O n J u n e 30, 1954, 4 0 d e n t a l offic e r s , 35 m e d i c a l o f f i c e r s , 9 n u r s e s , 1 s c i e n t i s t o f f i c e r , a n d 1 s a n i t a r y e n g i n e e r officer w e r e a s s i g n e d to duty with the Coast Guard.
Adequate c o v e r a g e by m e d i c a l officers w a s maintained during the
y e a r for ocean station v e s s e l s .
C o a s t G u a r d R e s e r v e . - - T h e p u r p o s e of t h e C o a s t G u a r d R e s e r v e
Is t o p r o v i d e a t r a i n e d f o r c e of o f f i c e r s a n d e n l i s t e d p e r s o n n e l t o
augment the r e g u l a r forces and enable the Coast Guard to p e r f o r m
I t s f u n c t i o n s a n d d u t i e s a t t h e t i m e of m o b i l i z a t i o n . S i g n i f i c a n t
s t r i d e s w e r e m a d e during the past y e a r toward Increasing the size
of t h e R e s e r v e a n d t h e n u m b e r of p e r s o n n e l t r a i n e d . A s of J u n e
3 0 , 1 9 5 4 , t h e t o t a l s t r e n g t h of t h e C o a s t G u a r d R e s e r v e w a s 3 , 6 6 9
o f f i c e r s and 16,132 e n l i s t e d p e r s o n n e l , r e p r e s e n t i n g a n o v e r a l l
I n c r e a s e of 1 2 . 5 p e r c e n t f o r t h e y e a r . T h e r e w e r e 1,227 o f f i c e r s
and 5,377 e n l i s t e d m e n
receiving training, an Increase
of 1 8 . 6
percent. Seventeen new organized r e s e r v e units w e r e established,
a n d o n J u n e 3 0 , 1 9 5 4 , t h e r e w e r e a t o t a l of 94 o r g a n i z e d r e s e r v e
t r a i n i n g u n i t s i n c o m m i s s i o n . A n e x t e n s i v e p r o g r a m of a c t i v e d u t y
t r a i n i n g w a s c a r r i e d out, and a p p r o x i m a t e l y 3,831 p e r s o n n e l r e ceived such training.
M i l i t a r y j u s t i c e . - - T h e n u m b e r of c o u r t s - m a r t i a l c a s e s c o n t i n u e d
t o d e c l i n e w i t h a t o t a l of 8 5 0 r e c o r d s r e c e i v e d d u r i n g t h e y e a r a s
a g a i n s t 1,342 i n t h e p r e v i o u s y e a r . T w e n t y - o n e w e r e g e n e r a l c o u r t s m a r t i a l I n v o l v i n g 2 5 d e f e n d a n t s , of w h o m t w o w e r e c o m m i s s i o n e d
o f f i c e r s a n d t w o w a r r a n t o f f i c e r s . T h e r e w e r e 189 s p e c i a l c o u r t s m a r t i a l and 640 s u m m a r y c o u r t s - m a r t i a l . P u r s u a n t t o p r o v i s i o n s
of t h e U n i f o r m C o d e of M i l i t a r y J u s t i c e , 13 g e n e r a l c o u r t s - m a r t i a l
a n d 50 s p e c i a l c o u r t s - m a r t i a l w e r e s u b m i t t e d for r e v i e w t o the
T r e a s u r y D e p a r t m e n t B o a r d of R e v i e w . O n e c a s e w a s c e r t i f i e d t o
t h e U n i t e d S t a t e s C o u r t of M i l i t a r y A p p e a l s .
P e r s o n n e l safety p r o g r a m . - - D u r i n g the y e a r , no civilian e m p l o y e e f a t a l i t i e s o c c u r r e d a n d 24 m i l i t a r y f a t a l i t i e s w e r e r e p o r t e d .
T h e C o a s t G u a r d h a d a n e x p o s u r e of 1 1 , 6 6 3 , 5 9 2 m i l i t a r y m a n d a y s w i t h 1,111 d i s a b l i n g I n j u r i e s ; 9 , 8 9 5 , 3 8 7 c i v i l i a n m a n - h o u r s
with 90 d i s a b l i n g I n j u r i e s ; 12,873,540 v e h i c l e m i l e s with 4 d i s a b l i n g
I n j u r i e s . A t o t a l of 2 , 0 0 3 a c c i d e n t s w e r e r e p o r t e d .
Administration
F i s c a l a n d s u p p l y m a n a g e m e n t . - - T h e e f f e c t i v e n e s s of t h e a c c o u n t i n g p r o g r a m of t h e C o a s t G u a r d w a s I m p r o v e d b y a n u m b e r of
m o d i f i c a t i o n s . T h e n i o s t s i g n i f i c a n t of t h e s e w e r e : S i m p l i f i c a t i o n
of a c c o u n t i n g c l a s s i f i c a t i o n of e x p e n d i t u r e s ; p u b l i c a t i o n of o p e r a t i o n c o s t r e p o r t s o n a q u a r t e r l y b a s i s I n s t e a d of m o n t h l y ; e x t e n s i o n
of p u n c h e d c a r d c h e c k s t o c o v e r p a y m e n t of C o a s t G u a r d Y a r d
p e r s o n n e l ; I n s t a l l a t i o n of a s i m p l i f i e d a c c o u n t i n g a n d p a y m e n t
p r o c e d i u r e f o r s m a l l p u r c h a s e s ; e x t e n s i o n of m e c h a n i c a l a c c o u n t i n g
p r o c e s s e s t o a u d i t s ; a n d I m p r o v e m e n t s In o p e r a t i n g c o s t r e p o r t
f o r m s to provide m o r e useful r e p o r t s to m a n a g e m e n t . The p r o g r a m
ADMINISTRATIVE REPORTS
155
of I n t e r n a l audit w a s Intensively c a r r i e d on to m e a s u r e the p e r f o r m a n c e of m a n a g e m e n t a g a i n s t e s t a b l i s h e d s t a n d a r d s and to
reveal a r e a s where Improvement was n e c e s s a r y .
I m p r o v e m e n t s In the supply p r o g r a m Included the following: The
r e l o c a t i o n of the C o a s t G u a r d Supply Depot, Cleveland, Ohio, to the
Naval Supply Depot, G r e a t L a k e s , n l . , to effect e c o n o m i e s In
o p e r a t i o n , p r o c u r e m e n t , and d i s t r i b u t i o n ; d e c l a r a t i o n s of e x c e s s
stock totaling o v e r $5,000,000, t h e r e b y e l i m i n a t i n g f r o m Invent o r i e s o b s o l e t e , e x c e s s , and n o n u s u a b l e I t e m s ; the d i s p o s a l by
s a l e of e x c e s s and s c r a p m a t e r i a l s valued at $ 1,212,732 that
f o r m e r l y w e r e c o n t a i n e d In r e p o r t e d I n v e n t o r i e s ; and the addition
to i n v e n t o r y of I t e m s r e q u i r e d for r e p e t i t i v e u s e a s d e t e r m i n e d
by u s a g e f i g u r e s a c c u m u l a t e d at e a c h a u t h o r i z e d i s s u i n g unit.
Efforts w e r e continued t o w a r d the m o d e r n i z a t i o n of the Coast
G u a r d ' s fleet of v e h i c l e s . S e v e n t e e n p a s s e n g e r v e h i c l e s , 79 t r u c k s ,
89 t r a i l e r s , and 2 p i e c e s of s p e c i a l e q u i p m e n t w e r e e l i m i n a t e d .
T h e n u m b e r of different t y p e s of v e h i c l e s w a s a l s o r e d u c e d .
C o a s t Guard A u x i l i a r y
The p r i m a r y a c t i v i t y of t h i s v o l u n t a r y , n o n m i l i t a r y o r g a n i z a t i o n
which Is a c t i v e In 328 c o m m u n i t i e s , Is the p r o m o t i o n of safety
and efficiency In the o p e r a t i o n of s m a l l b o a t s . D u r i n g the f i s c a l
y e a r , the A u x i l i a r y c o m p l e t e d e x a m i n a t i o n s of 25,262 m o t o r b o a t s ,
p a t r o l l e d 236 r e g a t t a s , * and a n s w e r e d 1,892 c a l l s for a s s i s t a n c e .
Additionally, the A u x i l i a r y h a s p r o m o t e d publicity d i r e c t e d at
safety upon the w a t e r . At thc end of the f i s c a l y e a r 1954, the
A u x i l i a r y had 12,920 m e m b e r s and 7,647 f a c i l i t i e s .
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
T h e following t a b l e shows the a m o u n t of funds a v a i l a b l e for the
C o a s t G u a r d d u r i n g the f i s c a l y e a r 1954, a n d t h e a m o u n t s of o b l i g a t i o n s and unobligated b a l a n c e s .
Funds
available
Appropriated funds:
, Operating expenses
Reserve training..;
Retired pay
Acquisition, construction and improvements....
Total reimbursements
'.....
,
.•
$5,143,604
16,946
118,544
3,171,745
215,340,250
8,450,839
1,314 656
73,335
Working fiinds established by advances from other
agencies:
Department of Defense:
Department of the Navy........
Department of the Army
.
"
Department of Health, Education, and Welfare..
United States Information Agency
Executive Office of the President
$183,106,396
2,483,054
18,481,456
11,269,344
223,791,089
Total appropriated funds
Grand total
Unobligated
balances
$188,250,000
2,500,000
18,600,000
^ 14,441,089
Reimbursements:
Operating expenses.
Reserve training
Total working funds
Net total
obligations
1,314,656
73,335
1,387,991
1,387,991,
560,349
73,440
656,785
465,000
874
26,183
33,822
1,212
383
168
534,166
39,618
655,573
464,617
706
1,756,448
1,694,680
226,935,528
218,422,921
•
61,768
8,512,607
^ Funds available Under "Acquisition, Construction and Improvements" include unobligated balances brought
forward from prior year appropriations in the amount of $3,820,589, and $8,120,500 transferred from the appropriation "Maintenance and Operation, Air Force, 1954," by the Second Supplemental Appropriation Act,
1954, Public Law No. 304, approved March 6, 1954.
156
1954 REPORT OF THE SECRETARY OF THE TREASURY
UNITED STATES SAVINGS BONDS DIVISION
The f i s c a l y e a r 1954 m a r k e d the t w e n t i e t h y e a r the T r e a s u r y
h a s been continuously offering s a v i n g s bonds for i n v e s t m e n t . The
c a s h value of all s e r i e s of t h e s e bonds o u t s t a n d i n g at the c l o s e of
the y e a r t o t a l e d $58.2 billion of which $ 4 9 . 6 billion w a s held by
m o r e than forty m i l l i o n p e r s o n s and the r e s t by i n s t i t u t i o n s and
miscellaneous investors.
United S t a t e s s a v i n g s bonds a r e an i m p o r t a n t p a r t o f the G o v e r n m e n t ' s p r o g r a m to give A m e r i c a a sound d o l l a r . Selling s a v i n g s
bonds to individuals is one of the b e s t w a y s to p l a c e m o r e of the debt
in the h a n d s of l o n g - t e r m i n v e s t o r s . At the c l o s e of f i s c a l 1954,
m o r e than 20 p e r c e n t of the public debt c o n s i s t e d of n o n m a r k e t a b l e
s a v i n g s bonds of all s e r i e s .
The Savings Bonds Division c o n c e n t r a t e d i t s p r o m o t i o n a l a c t i v i t i e s
throughout fhe y e a r on s e l l i n g m o r e E and H b o n d s , the two s e r i e s
which m a y be p u r c h a s e d only by i n d i v i d u a l s . T h i s a c t i v i t y i s the c o r e
of the T r e a s u r y ' s p r o g r a m to e n c o u r a g e thrift g e n e r a l l y a m o n g the
people and e s p e c i a l l y to e n c o u r a g e t h e m to adopt r e g u l a r s y s t e m a t i c
s a v i n g s h a b i t s . As o u r people s t o r e up s a v i n g s for future n e e d s ,
it h e l p s a s s u r e the continued g r o w t h and p r o s p e r i t y of o u r c o u n t r y .
In the f i s c a l y e a r 1954 a new p e a c e t i m e r e c o r d w a s a c h i e v e d in
g r o s s s a l e s of savings b o n d s . I n v e s t o r s p u r c h a s e d $ 4 . 7 billion E
and H bonds, the h i g h e s t amount in any f i s c a l y e a r s i n c e 1946. The
s a l e s gain w a s 15 p e r c e n t o v e r 1953 and 41 p e r c e n t o v e r 1952.
C a s h s a l e s in f i s c a l 1954 e x c e e d e d t o t a l r e d e m p t i o n s (including
r e t i r e m e n t s of m a t u r e d E bonds a s well a s E and H bonds c a s h e d
p r i o r to m a t u r i t y ) by $308 m i l l i o n . At the c l o s e of f i s c a l 1954, the
c a s h value of S e r i e s E and H bonds o u t s t a n d i n g , including i n t e r e s t
a c c r u a l s , r e a c h e d the a l l - t i m e r e c o r d to date of $ 3 7 . 5 billion. The
i n c r e a s e d u r i n g the y e a r a m o u n t e d to $ 1 . 4 billion.
Throughout the y e a r 1954 the r a t e of holding E bonds a f t e r m a t u r i t y
continued to r e m a i n a l m o s t c o n s t a n t at about t h r e e - q u a r t e r s of
m a t u r i t y v a l u e . In the t h r e e y e a r s from May 1951 t h r o u g h June 1954,
a p p r o x i m a t e l y $ 1 3 billion in E bonds c a m e d u e . About o n e - q u a r t e r
of that amount w a s t u r n e d in for c a s h ; the b a l a n c e , n e a r l y $10
billion, i s being r e t a i n e d for a l o n g e r p e r i o d u n d e r the a u t o m a t i c
e x t e n s i o n option. D u r i n g the e x t e n s i o n p e r i o d , up to ten additional
y e a r s , E bonds m a t u r i n g May 1952 and t h e r e a f t e r e a r n i n t e r e s t at
the r a t e of a p p r o x i m a t e l y 3 p e r c e n t p e r annum compounded s e m i annually. E bonds which m a t u r e d before May 1952 yield only slightly
l e s s . The i m p o r t a n c e of p u b l i c i z i n g the E bond e x t e n s i o n p r i v i l e g e
i s r e a d i l y s e e n when it i s r e a l i z e d that m o r e than $18 billion of this
type of s e c u r i t y p r o b a b l y will have r e a c h e d m a t u r i t y in the f i v e - y e a r
p e r i o d ending in f i s c a l 1958.
In f i s c a l 1954, r e d e m p t i o n s of S e r i e s E and H bonds p r i o r to
m a t u r i t y w e r e the lowest in 10 y e a r s . They w e r e 2 p e r c e n t l e s s than
in 1953, and 14 p e r c e n t l o w e r than the r e d e m p t i o n s of u n m a t u r e d
E bonds in 1952.
A new p r o m o t i o n a l a c t i v i t y w a s begun d u r i n g the second half of
f i s c a l 1954 to u r g e E bond b u y e r s to p u r c h a s e b i g g e r d e n o m i n a t i o n s
i n s t e a d of $25 bonds. E x p e r i e n c e h a s shown that the p e r s p n who buys
a l a r g e r d e n o m i n a t i o n bond i s m o r e i n c l i n e d to hold it l o n g e r .
ADMINISTRATIVE REPORTS
157
A t t h e c l o s e of f i s c a l 1 9 5 4 , It w a s e s t i m a t e d t h a t m o r e t h a n
8 m i l l i o n p e r s o n s e m p l o y e d In In'^.ustry a n d G o v e r n m e n t w e r e s i g n e d
u p o n t h e p a y r o l l s a v i n g s p l a n a n d w e r e b u y i n g a b o u t $ 1 6 0 m i l l i o n In
E b o n d s e a c h m o n t h . T h e S a v i n g s B o n d s D i v i s i o n s u c c e e d e d In
s i g n i n g u p a s u f f i c i e n t n u m b e r of n e w s a v e r s t o m o r e t h a n o f f s e t
t h o s e who d r o p p e d out d u r i n g the y e a r . I n d u s t r y - w i d e d r i v e s w e r e
m a d e In t h e a i r c r a f t a n d s t e e l I n d u s t r i e s ; b o n d p r o m o t i o n s w e r e
c o n d u c t e d In 30 o f t h e c o u n t r y ' s 4 8 m a j o r r a i l r o a d s ; a n d c a n v a s s e s
w e r e c o m p l e t e d o r b e g u n In a l ! F e d e r a l a g e n c i e s .
F o r e c o n o m y In t h e b o n d o p e r a t i o n , 2 , 6 9 5 c o m m e r c i a l p a y r o l l
savings a c c o u n t s f o r m e r l y handled by post offices w e r e t r a n s f e r r e d
t o o t h e r i s s u i n g a g e n t s . P o s t o f f i c e s w e r e a l s o r e l i e v e d of t h e
i s s u a n c e of E b o n d s t o t h e p u b l i c e x c e p t in c o m m u n i t i e s w h e r e t h e r e
a r e no other i s s u i n g a g e n t s .
D u r i n g f i s c a l 1954, the D i v i s i o n ' s h e a d q u a r t e r s and field staffs
u n d e r w e n t f u r t h e r r e o r g a n i z a t i o n in l i n e w i t h r e c o m m e n d a t i o n s of
t o p - l e v e l c o n s u l t a n t s in s a l e s m a n a g e m e n t . T h e c h a n g e s r e s u l t e d
In f u r t h e r e l i m i n a t i o n of p r o g r a m s p e c i a l i z a t i o n , t h e s t r e n g t h e n i n g
of t h e a r e a p l a n of S t a t e o p e r a t i o n s , a n d a r e d u c t i o n in t h e n u m b e r
of p o s i t i o n s .
T h e D i v i s i o n s t r e n g t h e n e d Its v o l u n t e e r o r g a n i z a t i o n at State
and local levels this past y e a r through i n c r e a s i n g l y effective use
of v o l u n t e e r s w i t h l e a d e r s h i p q u a l i t i e s , a n d t h r o u g h a p l a n n e d
p r o g r a m of r e c o g n i t i o n of v o l u n t e e r s f o r l e n g t h of s e r v i c e a n d f o r
o u t s t a n d i n g c o n t r i b u t i o n s t o t h e s a l e of b o n d s .
D u r i n g f i s c a l 1954, the D i v i s i o n r e c e i v e d o v e r $ 5 3 m i l l i o n s
w o r t h of d o n a t e d s p a c e a n d t i m e In p r i n t e d a n d b r o a d c a s t m e d i a f o r
s a v i n g s b o n d s a d v e r t i s i n g . S u p p o r t In n e w s , e d i t o r i a l , a n d c a r t o o n
p a g e s , while not m e a s u r a b l e in d o l l a r s , was equally g e n e r o u s .
Donated n e w s p a p e r a d v e r t i s e m e n t s amounted to m o r e than 8 million
l i n e s I n m e t r o p o l i t a n d a l l i e s , a n d 25 m i l l i o n l i n e s I n w e e k l i e s . M o r e
t h a n 300 b u s i n e s s a n d I n d u s t r i a l m a g a z i n e s c a r r i e d b o n d a d v e r t i s e m e n t s to m o r e than 5 million b u s i n e s s m e n r e a d e r s each m o n t h .
F i n a n c i a l j o u r n a l s c a r r i e d special S e r i e s H bond a d v e r t i s e m e n t s
to b a n k e r s and f i n a n c i e r s .
E v e r y m o n t h a p p r o x i m a t e l y 800 m a g a z i n e s with g e n e r a l d i s t r i b u t i o n a n d a n a v e r a g e c i r c u l a t i o n of o v e r 150 m i l l i o n c o p i e s ,
supported the bond p r o g r a m through donated space for advertising.
S o m e 50 f a r m j o u r n a l s w i t h a c i r c u l a t i o n of o v e r 15 r n i l l i o n g a v e
t h e s a m e k i n d of s u p p o r t . F o r a n a g g r e g a t e of f o u r m o n t h s ( i u r i n g
the y e a r , bond a d v e r t i s e m e n t s a p p e a r e d on m o r e t h a n 3,000 fullc o l o r o u t d o o r p o s t e r s . T w i c e d u r i n g t h e y e a r , f o r p e r i o d s of t w o
or t h r e e months each, s o m e 90,000 s t r e e t c a r s and b u s s e s c a r r i e d
car-cards advertising bonds.
M o r e t h a n 2,900 r a d i o s t a t i o n s c a r r i e d w e e k l y the s p e c i a l bond
. p r o g r a m " G u e s t S t a r , " featuring the country's leading stage, s c r e e n ,
r a d i o , and t e l e v i s i o n s t a r s . O v e r 3,100 r a d i o s t a t i o n s b r o a d c a s t
spot a n n o u n c e m e n t s for bonds on a r e g u l a r s c h e d u l e . All r a d i o
n e t w o r k s a v e r a g e d 12 o n e - h a l f - h o u r b o n d p r o g r a m s w e e k l y f e a t u r i n g
the country's leading o r c h e s t r a s . Similar support was given the
D i v i s i o n ' s p r o g r a m by the r a p i d l y expanding t e l e v i s i o n I n d u s t r y ,
which channeled the bond m e s s a g e to the v i e w e r s o f t h e c o u n t r y ' s
m o r e t h a n 25 m i l l i o n t e l e v i s i o n s e t s .
T h e D i v i s i o n w a s effectively a i d e d In r e a c h i n g t h e banking and
339256 O - 55 - 12-
1 58
1954 REPORT OF THE SECRETARY OF THE TREASURY
I n v e s t m e n t m a r k e t t h r o u g h a c o m p r e h e n s i v e p r o g r a m developed by
the Savings Bonds C o m m i t t e e of the A m e r i c a n B a n k e r s A s s o c i a t i o n .
The I n v e s t m e n t B a n k e r s A s s o c i a t i o n of A m e r i c a aided the D i v i s i o n
with a p r o g r a m d e s i g n e d p a r t i c u l a r l y to stlriiulate the p u r c h a s e of
H bonds.
S p e c i a l c r o p p r o m o t i o n s . In t o b a c c o , wheat, c o r n , and cotton
w e r e d e v e l o p e d by the D i v i s i o n to e n c o u r a g e I n v e s t m e n t In s a v i n g s
bonds at the t i m e s the g r o w e r s r e c e i v e d c a s h for t h e i r c r o p s . T h e
Division a l s o continued to p r o m o t e t h r i f t t r a i n i n g for youth In the
Nation's schools.
UNITED STATES SECRET SERVICE
The m a j o r functions of the United S t a t e s S e c r e t S e r v i c e , u n d e r
d i r e c t i o n of the S e c r e t a r y of the T r e a s u r y , a r e p r o t e c t i o n of t h e
p e r s o n of the P r e s i d e n t of the United S t a t e s and m e m b e r s of his
I m m e d i a t e f a m i l y , of the P r e s i d e n t - e l e c t , and ofthe Vice P r e s i d e n t
at h i s r e q u e s t ; the d e t e c t i o n and a r r e s t of p e r s o n s c o m m i t t i n g any
offenses a g a i n s t o b l i g a t i o n s and s e c u r i t i e s of the United S t a t e s and
of f o r e i g n g o v e r n m e n t s ; and the d e t e c t i o n and a r r e s t of p e r s o n s
violating c e r t a i n laws r e l a t i n g to the F e d e r a l Deposit I n s u r a n c e
C o r p o r a t i o n , F e d e r a l land b a n k s , j o i n t - s t o c k land b a n k s , and
n a t i o n a l f a r m loan a s s o c i a t i o n s . T h e s e and o t h e r d u t i e s o f t h e
S e c r e t S e r v i c e a r e defined In 18 U.S.C. 3056.
Management Improvement
As a p a r t of Its continuing m a n a g e m e n t I m p r o v e m e n t p r o g r a m ,
the S e c r e t S e r v i c e I n a u g u r a t e d a c o u r s e of s p e c i a l i z e d t r a i n i n g for
s p e c i a l a g e n t s , p l a n s for which had b e e n c o m p l e t e d In f i s c a l 1953.
T h o s e a g e n t s s e l e c t e d f o r t r a i n i n g w e r e given an I n t e n s i v e f o u r - w e e k
p r a c t i c a l c o u r s e In applied c r i m i n a l I n v e s t i g a t i o n t e c h n i q u e s with
p a r t i c u l a r r e f e r e n c e to the s u p p r e s s i o n of c o u n t e r f e i t i n g and
f o r g e r y , and to s e c u r i t y functions r e l a t e d to the p r o t e c t i o n of the
President.
The m a n a g e m e n t p r o g r a m continued to be c l o s e l y c o o r d i n a t e d
with the I n s p e c t i o n s y s t e m In which r e g i o n a l I n s p e c t o r s m a k e
r e g u l a r and t h o r o u g h I n s p e c t i o n of all S e c r e t S e r v i c e fleld offices,
d u r i n g which they r e v i e w pending c a s e s , confer with all p e r s o n n e l .
I n s p e c t office and m o t o r v e h i c l e e q u i p m e n t , and o t h e r w i s e m a i n t a i n
c l o s e l i a i s o n b e t w e e n the fleld and the Washington h e a d q u a r t e r s .
To a s s u r e p r o p e r m a i n t e n a n c e of official m o t o r v e h i c l e s , one
I n s p e c t o r d e v i s e d a unique f o r m which c o n s i s t s of s m a l l p e r f o r a t e d
coupons bound In a booklet the s i z e of an Individual checkbook, with
four coupons to e a c h p a g e . T h e r e Is one coupon for e v e r y t h o u s a n d
m i l e s , f r o m 1,000 to 100,000, m a r k e d to show the l u b r i c a t i o n o r
o t h e r s e r v i c e r e q u i r e d at e a c h t h o u s a n d . S e c r e t S e r v i c e a g e n t s
d r i v i n g official c a r s a r e m a d e r e s p o n s i b l e for obtaining the w o r k
c a l l e d for on the c o u p o n s , and m u s t s i g n and s u b m i t coupons with
r e p o r t s to t h e i r s u p e r i o r s as evidence t h a t the w o r k h a s b e e n
a c c o m p l i s h e d . Unquestionably this s y s t e m will h e l p to k e e p m o t o r
v e h i c l e s In b e t t e r condition and p r o l o n g t h e i r u s e f u l n e s s .
ADMINISTRATIVE REPORTS
159
P r o t e c t i v e and s e c u r i t y activities
O n M a r c h 1, f o u r f a n a t i c a l m e m b e r s of t h e N a t i o n a l i s t P a r t y of
P u e r t o Rico from New Y o r k City, a r m e d with automatic weapons,
e n t e r e d t h e V i s i t o r s ' G a l l e r y o f t h e H o u s e of R e p r e s e n t a t i v e s a n d ,
at a s i g n a l f r o m a w o m a n In t h e g r o u p , f i r e d Into the a s s e m b l e d
C o n g r e s s m e n , f i v e of w h o m w e r e w o u n d e d . T h e m e n a n d t h e w o m a n
w e r e a r r e s t e d , a n d s p e c i a l a g e n t s of t h e S e c r e t S e r v i c e w e r e
p r e s e n t while t h e y w e r e I n t e r r o g a t e d by p o l i c e , s i n c e t h i s q u a r t e t
belonged to the s a m e group which t r i e d to a s s a s s i n a t e the P r e s i d e n t
a t B l a i r H o u s e o n N o v e m b e r 1, 1 9 5 0 . L a t e r a l l f o u r w e r e s e n t e n c e d
to long p r i s o n t e r m s .
D u r i n g t h e y e a r , s p e c i a l a g e n t s of t h e S e c r e t S e r v i c e p r o t e c t e d
t h e V i c e P r e s i d e n t of t h e U n i t e d S t a t e s d u r i n g h i s g o o d - w i l l t r i p
around the world.
I n c o n n e c t i o n w i t h t h e p r o t e c t i o n of €b.e M a i n T r e a s u r y B u i l d i n g
and t h e T r e a s u r y A n n e x by t h e T r e a s u r y G u a r d F o r c e , t h e S e c r e t
S e r v i c e , I n c o o p e r a t i o n w i t h t h e O f f i c e of A d m i n i s t r a t i v e S e r v i c e s ,
a r r a n g e d to have the T r e a s u r y electronic b u r g l a r - a l a r m s y s t e m
completely overhauled.
Enforcement activities
T h e S e c r e t S e r v i c e w a s n o t i f i e d J a n u a r y 4 b y o f f i c i a l s of t h e
B u r e a u of E n g r a v i n g a n d P r i n t i n g t h a t $ 1 6 0 , 0 0 0 I n c o m p l e t e d $ 2 0
F e d e r a l R e s e r v e notes apparently had been stolen from the B u r e a u .
W i t h i n 24 h o u r s , on J a n u a r y 5, S e c r e t S e r v i c e a g e n t s h a d In c u s t o d y
a B u r e a u e m p l o y e e r e s p o n s i b l e for the theft, and one m a l e a c c o m p l i c e . O n J a n u a r y 6, a g e n t s a r r e s t e d t w o m o r e m a l e a n d t w o
f e m a l e a c c o m p l i c e s w h o h a d s p e n t s o m e of t h e s t o l e n m o n e y . R e c o n s t r u c t i n g the c r i m e , agents e s t a b l i s h e d that the thief had
c a r r i e d $ 1 2 8 , 0 0 0 o u t of t h e B u r e a u o n D e c e m b e r 3 0 , a n d h i d d e n
t h e b a l a n c e of $ 3 2 , 0 0 0 u n d e r a s k i d o n t h e fifth f l o o r of t h e M a i n
B u i l d i n g , I n t e n d i n g t o t a k e It o u t l a t e r . T h e $ 3 2 , 0 0 0 w a s r e c o v e r e d
b y a g e n t s , t o g e t h e r w i t h $ 9 5 , 8 4 0 of t h e $ 1 2 8 , 0 0 0 s m u g g l e d o u t of
the Bureau.
T h e t o t a l a m o u n t r e c o v e r e d on w h i c h t h e r e w a s no l o s s to t h e
Government was $127,840. F u r t h e r r e c o v e r i e s reduced the potential
l o s s to $ 2 5 , 7 9 0 . All stblen bills w e r e accounted for except for the
s u m of $ 1 5 , 2 0 0 a s of J u n e 3 0 .
All s i x d e f e n d a n t s p l e a d e d guilty In F e d e r a l c o u r t and w e r e
s e n t e n c e d to p r i s o n t e r m s , except for one w o m a n who w a s p l a c e d
on p r o b a t i o n .
A f t e r t h i s t h e f t , b y d i r e c t i o n of t h e S e c r e t a r y , t h e S e c r e t S e r v i c e m a d e a t h o r o u g h s e c u r i t y s u r v e y of t h e B u r e a u of E n g r a v i n g
a n d P r i n t i n g a n d s u b m i t t e d a c o m p r e h e n s i v e r e p o r t of I t s f i n d i n g s
and r e c o m m e n d a t i o n s .
I n t h e c o u r s e of t h e y e a r . S e c r e t S e r v i c e a g e n t s c a p t u r e d 17
p l a n t s f o r t h e m a n u f a c t u r e of c o u n t e r f e i t p a p e r m o n e y a n d $ 3 4 8 , 1 4 5
I n c o u n t e r f e i t b i l l s . Of t h a t t o t a l , $ 1 4 0 , 1 0 6 w a s s u c c e s s f u l l y p a s s e d
o n s t o r e k e e p e r s a n d o t h e r s , a n d $ 2 0 8 , 0 3 9 w a s s e i z e d b e f o r e It
c o u l d b e p u t I n t o c i r c u l a t i o n . A l t h o u g h t h e r e p r e s e n t a t i v e v a l u e of
the total amount seized was g r e a t e r than the $287,715 captured
d u r i n g t h e p r e v i o u s y e a r , t h e n u m b e r of c o u n t e r f e i t b i l l s a c t u a l l y
p a s s e d to m e r c h a n t s and others was s m a l l e r . The r e p r e s e n t a t i v e
160
1954 REPORT OF THE SECRETARY OF THE TREASURY
v a l u e of c o u n t e r f e i t c o i n s s e i z e d t o t a l e d $ 7 , 1 5 5 , of w h i c h $ 5 , 8 2 8 w a s
successfully passed.
T h e r e w e r e 63 n e w c o u n t e r f e i t n o t e I s s u e s a n d v a r i a t i o n s t h e r e o f
d u r i n g t h e y e a r , a n I n c r e a s e of 1 3 , a n d 2 1 0 p e r s o n s w e r e a r r e s t e d
f o r v i o l a t i n g t h e c o u n t e r f e i t i n g l a w s , a s c o m p a r e d w i t h 193 a r r e s t e d
the previous y e a r .
T h e f o l l o w i n g t a b l e s u m m a r i z e s s e i z u r e s of c o u n t e r f e i t m o n e y
d u r i n g t h e f i s c a l y e a r s 1953 and 1954.
Counterfeit money seized - fiscal years 1953 and 1954
Percentage
increase, or
decrease (-)•
1953
Total
-$32,679.50
93,108.50
-18.9
81 0
348,144.75
60,429.00
21.0
5,598.99
807.12
•
$140,106.00
208,038.75
287,715.75
Total
Counterfeit coins seized:
After being circulated
Increase,
or
decrease (-)
$172,785.50
114,930.25
Counterfeit and altered notes:
After being circulated
1954
5,827.71
1,326.86
228.72
519.74
4.1
64.4
6,406.11
Grand total
,
7,154.57
748.46
11.7
294,121.86
355,299.32
61,177.46
20.8
T h e r e w e r e 31,931 forged G o v e r n m e n t c h e c k s r e c e i v e d for I n v e s t i g a t i o n , an I n c r e a s e of 4 , 2 1 1 , and 9,045 w e r e on hand at the
beginning of the y e a r . Agents c o m p l e t e d I n v e s t i g a t i o n s of 28,837
forged c h e c k s w o r t h $ 2 , 3 3 9 , 6 6 0 but on J u n e 30 t h e r e was a backlog
of 12,139 f o r g e d c h e c k s awaiting I n v e s t i g a t i o n . Agents a r r e s t e d
2,609 p e r s o n s for f o r g e r y of G o v e r n m e n t c h e c k s , as c o m p a r e d
with 2,284 a r r e s t e d the p r e v i o u s y e a r .
A l s o r e c e i v e d for I n v e s t i g a t i o n w e r e 4,034 forged United S t a t e s
s a v i n g s b o n d s . T h e r e w e r e 1,571 forged bonds awaiting I n v e s t i g a tion at the beginning of the y e a r . Agents c o m p l e t e d I n v e s t i g a t i o n s of
3,542 forged bonds w o r t h $326,852 and a r r e s t e d 84 p e r s o n s for
bond f o r g e r y .
The following t a b l e shows the n u m b e r of c r i m i n a l and n o n c r i m i n a l c a s e s c o m p l e t e d d u r i n g the f i s c a l y e a r s 1953 and 1954.
Numbor of investi<;ations of criminal and noncriminal activiiies - fiscal years 1953 and 1954
Cases closed
1953
1954
Increase,
or
decrease (-)
Percentage .
increase, or
decrease (-)
Criminal cases:
1,405
26,179
4,526
1,679
397
Forged Government checks
Stolen or forged bonds
Protective research
:
Miscellaneous (criminal)
Total
Noncriminal
Grand total
•
1,277
28,837
3,542
1,020
420
-128
2,658
-984
-659
23
-9.1
10.2
. -21.7
-39.2
5.8
34,186
3,329
35,096
2,316
• 910
-1,013
-30.4
37,515
37,412
-103
-.3
2.7
The S e c r e t S e r v i c e a r r e s t e d 209 p e r s o n s for c r i m e s o t h e r than
c o u n t e r f e i t i n g and f o r g e r y , m a k i n g a t o t a l of 3,112 p e r s o n s a r r e s t e d ,
an I n c r e a s e of 313 or 11.2 p e r c e n t o v e r the p r e v i o u s y e a r . T h e r e
w e r e 2,912 c o n v i c t i o n s , r e p r e s e n t i n g 98.6 p e r c e n t of convictions
161
ADMINISTRATIVE REPORTS
I n a l l c a s e s p r o s e c u t e d , s o m e of w h i c h w e r e p e n d i n g f r o m t h e
previous year.
P r i s o n s e n t e n c e s d u r i n g the y e a r t o t a l e d 3,123 y e a r s , and a d d i t i o n a l s e n t e n c e s of 2 , 7 7 6 y e a r s w e r e s u s p e n d e d o r p r o b a t e d . F i n e s
In c r i m i n a l c a s e s t o t a l e d $ 5 9 , 4 2 9 '
C a s e s of a l l t y p e s r e c e i v e d f o r I n v e s t i g a t i o n , I n c l u d i n g c o u n t e r f e l t i n g a n d f o r g e r y c a s e s , a g g r e g a t e d 4 1 , 3 6 3 , a n I n c r e a s e of 2 , 5 2 9
c a s e s o r 6.5 p e r c e n t o v e r t h e p r e v i o u s y e a r , a n d 11,271 c a s e s w e r e
p e n d i n g a t t h e b e g i n n i n g of t h e y e a r . A l t h o u g h 3 7 , 4 1 2 c a s e s w e r e
c l o s e d d u r i n g the y e a r , 15,222 c a s e s w e r e awaiting I n v e s t i g a t i o n
a s of J u n e 3 0 .
T h e f o l l o w i n g t a b l e c o n s t i t u t e s a s t a t i s t i c a l s u m m a r y of S e c r e t
S e r v i c e I n v e s t i g a t i o n s , a r r e s t s , and dispositions for the fiscal
y e a r s 1953 and 1954.
N u m b e r of arrests and cases dis posed of, fiscal years 1953 and 1954
1953
Arrests for:
Counterfeiting. .
•
•
Forged Government checks
Violations of Gold Reserve Act
Stolen or forged bonds
Protective research
False claims
Miscellaneous
Total
Cases disposed of:
Convictions in connection with:
Counterfeiting
Forged Government checks
Violations of Gold Reserve"Act
Stplen or forged bonds
Protective research
False claims
Miscellaneous
Total
;
Acquittals
Dismissed, not indicted or died before trial.
Total cases disposed of
1954
Percentage
Increase,
increase, or
or
decrease (-) decrease (-)
193
2,284
63
91
105
4
59
210
2,609
14
84
88
7
100
17
325
-49
-7
-17
3
41
8.8
14.2
-77.8
-7.7
-16.2
75 0
69.5
2,799
3,112
313
11.2
168
1,993
14
85
97
2
50
190
2,434
15
83
80
24
86
22
441
1
-2
-17
22
36
13.1
22.1
7.1
-2.4
-17.5
1100.0
72.0
2,409
42
188
2,912
40
222
503
-2
34
20.9
-4.8
18.1
2,639
3,174
535
20.3
EXHIBITS
PUBLIC DEBT OPERATIONS
TREASURY CERTIFICATES OF INDEBTEDNESS,
TREASURY NOTES, AND TREASURY BONDS
Exhibit l.--01ffering of 2-1/2 percent tax anticipation certificates of Series C-1954 and allotments
[Department Circular No. 925. Public Debt]
TREASURYDEPARTMENT,
Washington, July 6, 1953.
I. OFFERING OF CERTIFICATES
1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty
Bond Act, as amended, invites subscriptions from the people of the United States for
tax anticipation certificates of indebtedness ofthe United States, designated 2i percent
Treasury certificates of indebtedness of Series C-1954. The amount of the offering
is $5,500,000,000, or thereabouts.
II. DESCRIPTION OF CERTIFICATES
1. The certificatCiS will be dated July 15,1953, and will bear interest from that date
at the rate of 2{ percent per annum, payable with the principal at maturity on March 22,
1954. They will not be subject to call for redemption prior to maturity.
2. The income derived from the certificates shall be subject to aU taxes, now or
hereafter imposed under the Internal Revenue Code, or laws amendatory or supplementary thereto. Tlie certificates shall be subject to estate, inheritance, gift, or other
excise taxes, whether Federal or State, but shall be exempt from aU 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 ofpublic moneys. They
will be accepted ai: par plus iaccrued interest to maturity in payment of income and
profits taxes due on March 15,1954.
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.
HL SUBSCRIPTION AND ALLOTMENT
1. Subscriptions will be received at the Federal Reserve Banks and branches and
at the Office of the Treasurer of the United States, Washington. Commercial banks,
which for this purjpose are defined as banks accepting demand deposits, may submit
subscriptions for account of customers, but only the Federal Reserve Banks and the
Treasury Department are authorized to act as official agencies. Others than commercial banks will not be permitted to enter subscriptions except for their own account.
Subscriptions from commercial banks for their own account wiU be received without
deposit. Subscriptions from all others must be accompanied by payment of 10 percent
of the amount of certificates applied for.
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
165
166
1954 REPORT OF THE SECRETARY OF THE TREASURY
for amounts up to and including $ 100,000 wiU be allotted in fuU, and subscriptions for
amounts over $100,000 will be allotted on an equal percentage basis to be publicly
announced when allotments a r e made, but not less than $100,000 on any one subscription. Allotment notices will be sent out promptly upon allotment.
IV. PAYMENT
1. Payment at par and accrued interest, if any, for certificates allotted hereunder
must be made on or before July 15, 1953, or on later allotment. In every case where
payment is not so completed, the payment with application up to 10 percent of the
amount of certificates applied for shall, upon declaration made by the Secretary of the
Treasury in his discretion, be forfeited to the United States. Any qualified depositary
will be permitted to make payment by credit for certificates allotted to it for itself
and its customers up to any amount for which it shall be qualified in excess of existing
deposits, when so notified by the Federal Reserve Bank of its district.
V. GENERAL PROVISIONS
1. As fiscal agents of the United States, Federal Reserve Banks a r e authorized and
requested to receive subscriptions, to make allotments on the basis and up to the
amounts uidicated 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.
G. M. Humphrey,
Secretary of the Treasury.
Allotments of 2 1/2 p e r c e n t tax anticipation c e r t i f i c a t e s of indebtedness of S e r i e s C-1954
[in thousands of dolleirs]
Subscriptions
allotted
Federal Reserve district
Philadelphia
.
*
-
Plf^vpland
Pittsburgh
,
Charlotte
Birmingham
Nashville
Little Rock
.
196,967
2,509,338
214,577
205,404
37,660
127,849
108,152
62,952
31,294
54,945
20,366
87,343
30,117
57,031
857,842
105,262
5,816
Federal Reserve district
Subscriptions
allotted
St. Louis—Continued
.
Kansas City
Dallas
El Paso
Portland
Salt Lake City
Seattle
Total
32,596
20,403
131,812
163,986
93 864
4,034
19,562
10,035
349,055
157,643
34,09l
25,677
145,962
1
5,901,636
EXHIBITS
167
Exhibit 2. --Offering of 1-1/8 percent certificates of
Series B-1955
[Department Circular No. 943. Public Debt]
TREASURY DEPARTMENT,
Washington, May 4, 1954.
L OFFERING OF CERTIFICATES
1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty
Bond Act, as amencied, invites subscriptions from the people of the United States for
certificates of indebtedness of the United States, designated 1-1/8 percent Treasury
certificates of indebtedness of Series B-1955, in exchange for which any of the following
listed securities, singly or in comblnaticMis aggregating $1,000 or multiples thereof,
may be tendered:
2-5/8 percent Treasury certificates of indebtedness of Series B-1954, maturing
June 1, 1954
2 percent Treasujry bonds of 1952-54 (dated June 26,1944), maturing June 15,1954
2-1/4 percent Treasury bonds of 1952-55, called for redemption on June 15,1954
2-1/4 percent Tnjasury bonds of 1954-56, called for redemption on June 15,1954
Exchanges will be made at par with an adjustment of interest as set forth in secticHi IV
hereof. The amount of the offering under this circular will be limited to the amount of
the certificates and bonds of the four issues enumerated above tendered in exchange
and accepted. The hooks will be open only an. May 5 through May 7 for the receipt of
subscripticHis for thii> issue.
2. In addition to the offering under this circular, holders of the certificates maturing
June 1, 1954, are allso offered the privilege of exchanging all or any part of such certificates for 1-7/8 percent Treasury notes of Series A-1959, which offering is set
forth in Department Circular No. 944, issued simultaneously with this circular.
IL DESCRIPTION OF CERTIFICATES
1. The certificates will be dated May 17,1954, and wUl bear interest from that date
at the rate of 1-1/8 percent per annum, payable at the maturity of the certificates on
May 17,1955. They vfill not be subject to call for redemption prior to maturity.
2. The income deprived from the certificates shall be subject to aU taxes, now or
hereafter imposed under the Internal Revenue Code, or laws amendatory or supplementary thereto. The certificates shall be subject to estate, inheritance, gift, or other
excise taxes, whetb^r Federal or State, but shall be exempt from aU taxation now or
hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the Uniteid States, or by any local taxing authority.
3. The certificateis will be acceptable to secure deposits ofpublic moneys. They
will not be acceptable in payment of taxes.
4. Bearer certificates with one interest coupon attached 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.
in. SUBSCRIPTION AND ALLOTMENT
1. Subscriptions will be received at the Federal Reserve Banks and branches and
at the Office of the Treasurer of the United States, Washingtcm. Banking institutions
168
1954 REPORT OF THE SECRETARY OF THE TREASURY
generaUy 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 or reduce any subse riptidn, and to aUot less than the amount of certificates applied for; and any action
he may take in these respects shaU be final. Subject to these reservations, aU subscriptions wiU be aUotted in fiiU. AUotment notices wiU be sent out promptly upon
aUotment.
IV. PAYMENT
1. Payment at par for certificates aUotted hereunder must be made on or before
May 17, 1954, or on later aUotment, and may be made only in the securities of the
four issues enumerated in section I hereof, which wUlbe accepted at par, and should
accompany the subscription. Accrued interest on the securities surrendered wiU be
credited, and accrued interest on the new certificates from May 17,1954, wiU be
charged, as shown in the table below, to the respective maturity and caU dates of
the securities to be exchanged. AU coupon bonds should be surrendered with June 15,
1954, coupons attached, and subsequent coupons as weU in the case of the two 2-1/4
percent issues. Accrued interest due subscribers wiU be paid, in the case of bearer
securities, foUowing their acceptance, and in the case of registered bonds, following
discharge of registration.
Interest adjustments per $1,000
Securities surrendered .
2-5/856 certificates of indebtedness, Series B-1954...
2 6 bonds of 1952-54 (dated June 26, 1944)
5
2-1/456 bonds of 1952-55
2-1/456 bonds of 1954-56
Accrued interest
to be credited
$26.25
10.00
11.25
11.25
Accrued interest
to be charged
$0.46233
0.89384
0.89384
0.89384
Net amount
to be paid
subscribers •
$25.78767
9.10616
10.35616
10.35616
V„ ASSIGNMENT OF REGISTERED BONDS
1. Treasury bonds of the three eUgible issues in registered form tendered in
payment for certificates offered hereunder should be assigned by the registered
payees or assignees thereof to **The Secretary of the Treasury for exchange for
1-1/8 percent Certificates of Indebtedness of Series B-1955 to be deUvered to,
^, in accordance with the general regulations of the Treasury Department
governing assignments for transfer or exchange, and thereafter should be presented
and surrendered with the subscription to a Federal Reserve Bank or branch or to
the Office of the Treasurer of the United States, Washington. The bonds must be
deUvered at the expense and risk of the holders.
VI. GENERAL PROVISIONS
1. As fiscal agents of the United States, Federal Reserve Banks are authorized and
requested to receive subscriptions, to make aUotments 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 aUotment notices, to receive payment for c e r tificates aUotted, to make deUvery of certificates on fiiU-paid subscriptions aUotted,
and they may issue interim receipts p ^ d i n g deUvery 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 wiU
be communicated promptly to the Federal Reserve Banks.
A. N. Overby,
Acting Secretary of the Treasury.
EXHIBITS
169
Exhibit 3. —Details of certificate issues and allotments
Circulars pertaining to other issues of Treasury certificates of indebtedness during
the fiscal year 1954 are simUar in form to the circular shown as exhibit 2 and therefore are not reproduced in this report. However, the essential details regarding each
issue are summarized in the foUowing table, andthe final aUotments of new certificates
in exchange for maturing or caUed securities are shown in the succeeding table.
Summary of information contained in c i r c u l a r s pertaining to T r e a s u r y certificates of indebtedness
issued during the fiscal year 1954
Number
Date of
of
circucircular
lar
1953
Aug. 5
Sept. 2
1954
Feb. 1
May 4
Certificates of indebtedness issued and
securities exchanged for new issues
2 5/8 percent Series D-1954
,
Exchanged for 2 percent Series C-1953
certificates maturing Aug. 15, 1953.
Date of
issue
Date of
maturity
1953
Aug. 15
1954
Aug. 15
1 1/8 percent Series B-1955
Exchanged f o r —
2 5/8 percent Series B-1954 certificates
raaturing June 1, 1954.
2 percent Treasury bonds of 1952-54 (dated
June 26, 1944) maturing June 15, 1954.
2 1/4 percent Treasury bonds of 1952-55,
called June 15, 1954.
2 1/4 percent Treasury bonds of 1954-56,
called June 15, 1954.
1954
Feb. 15
1955
Feb. 15
1953
Aug. 7
1953
Aug. 17
Sept. 4
2 5/8 percent Series E-1954
Exchanged for 2 percent Treasury bonds of
i951-53 (dated Sept. 15, 1943) maturing
Sept. 15, 1953.
1 5/8 percent Series A-1955
Exchanged f o r —
2 1/4 percent Series A-1954 certificates
maturing Feb. 15, 1954.
1 3/8 percent Series A-1954 Treasury notes
maturing Mar. 15, 1954.
Allotment
Date sub- payment
scription date on or
before (or
books
on later
closed
allotment)
^ Sept. 15
1954
Feb. 3
1954
2 Feb. 15
May
7
' May 17
• Following acceptance of the surrendered bonds, final interest due Sept. 15, 1953, was paid as follows:
'
•
On coupon bonds by payment of the Sept. 15 coupon, and on registered bonds by checks drawn in accordance
with assignments on the surrendered bonds.
^ Following acceptance of the surrendered certificates, the full amount of interest due was paid, and
following acceptance of the surrendered notes, the accrued interest from Sept. 15, 1953, to Feb. 15, 1954
($5.81146 per $1,000) was paid.
• See exhibit 2, section IV, for accrued interest credited on the surrendered securities, and accrued
'
interest charged on the new certificates.
T r e a s u r y c e r t i f i c a t e s of i n d e b t e d n e s s i s s u e d in e x c h a n g e for m a t u r e d or c a l l e d s e c u r i t i e s , by F e d e r a l R e s e r v e d i s t r i c t s , f i s c a l y e a r 1954
o
[ i n thousands of d o l l a r s ]
Federal
Reserve
district
Boston
New York
Philadelphia
Cleveland
Cincinnati....
Pittsburgh....
Richmond
Baltimore.»...
Charlotte
Atlanta
Birmingham....
Jacksonville..
Nashville
New Orleans...
Chicago
Detroit
St. Louis
Little Rock...
Louisville....
Memphis
Minneapolis
Kansas City
Denver
Oklahoma City.
Omaha
Dallas
El Paso
Houston
San Antonio...
San Francisco....
Los Angeles...
Portland
Salt Lake City
Seattle
Treasviry
Total allotments on
exchanges..
2-5/8 percent
Series D-1954
certificates
exchanged for
2 percent
Series 0-1953
certificates
mat v r ing
i
Aug. 15, 1953
2-5/8 percent
Series E-1954
eertificates exchanged for 2
percent Treasury bonds of
1951-53 (dated
Sept. 15, 1943)
maturing
Sept. 15, 1953^
87,475
1,237,181
61,653
103,843
23,498
30,937
27,025
9,481
• 9,711
42,128
9,926
12,237
9,889
31,210
430,780
180,705
2,773,999
126,384
90,708
29,770
35,777
24,836
35,261
12,165
41,869
5,863
9,431
18,433
'26,676
504,592
67,038
6,518
50,841
18,898
94,231
129,995
102,810
2,869
20,795
10,596
86,972
129,030
38,710
2,306
18,772
5,853
99,175
96,437
8,203
2,416
13,305
8,554
51,557
1,338
19,189
33,097
285,439
37,691
6,975
2,948
9,439
6,795
2,788,226
1-5/8 percent Series A-1955
certificates exchanged for—
2-1/4 percent
Series A-1954
certificates
maturing
Feb. 15, 1954^
59,862
4,486,959
36,807
40,369
18,383
31,748
12,201
31,746
5,465
36,112
12,082
21,664
7,931
47,771
239,242
25,520
33,696
12,211
28,293
10,576
72,882
94,527
21,568
9,844
19,156
22,112
4,738
20,013
14,963
88,841
20,956
7,285
19,670
6,849
24,795
1-3/8 percent
Series A-1954
Treasiiry notes
mat v ? ing
u
Mar. 15, 1954^
78,681
18,819
690,687 5,177,646
61,972
25,165
95,682
55,313
37,4^6
19,063
57,912
26,164
20,337
8,136
37,468
5,722
1,147
6,612
18,827
54,939
16,994
4,912
26,048
4,384
15,909
7,978
59,059
11,288
486,313
247,071
46,603
21,083'
57,980
24,284
13,199
988
40,080
11,787
12,519
1,943
96,390
23,508
108,720
14,193
36,200
14,632
17,267
7,423
27,154
7,998
29,704
7,592
182
4,920
5,225
25,238
19,781
4,818
125,041
36,200
51,273
30,317
1,055
8,340
20,157
487
7,761
912
25,442
647
1-1/8 percent Series B-1955'certificates exchanged for—
2 pefcent Treas2-5/8 percent
ury bonds of
Series B-1954
1952-54 (dated
certificates
June 26, 1944)
maturing
maturing
June 1, 1954June 15, 19542
10,163
.,389,113
13,081
30,216
3,519
7,788
2,692
3,647
1,104
9,852
2,048
2,228
781
7,661
104,888
2,533
18,204
3,029
13)165
1,392
33,989
20,633
7,939
5,244
9,809
5,021
368
7,435
1,763
8,064
47,627
1,757
1,566
5,765
1,927
2-1/4 percent
Treasury bond's
of 1952-55,
called for
redemption on
June 15, 19542
2-1/4 percent
Treasury bonds
of 1954-56,
called for
redemption on
June 15, 19542
8,832
1,040,492
49,433
43,587
1,606
4,328
4,755
2,398
393
4,330
2,637
1,466
5,352
12,570
136,154
1,234
22,195
1,004
4,514
1,899
32,584
7,972
4,789
4,202
2,725
1,964
370
750
6,551
65,467
5,370
1,537
638
20,226
735
1,926
215,093
22,442
11,725
2,107
743
1,500
524
102
1,926
551
177
97
348
21,100
1,945
3,494
20
774
436
5,904
2,649
377
875
734
1,942
5
128
249
20,017
1,502
20
89
365
335
12,987
194,711
2,023
618
677
7,956
188
38
13
2,568
24
1
82
606
23,000
1,288
2,208
166
330
12
1,332
2,358
148
597
8,927
86
350
63
137
4,124
1,403
1,670
6
50
2,013
1,505,058
322,222
^ Treasury 2 7/8 percent notes. Series A-1957, also issued in exchange for this maturity; see table on page 24 .
2 Treasury 2 1/2 percent bonds of 1961, also issued in exchange for this security; see table on page 24 .
^ Treasury 1 7/8 percent notes. Series A-1959, also issued in exchange for this security; see table on page 24 .
33,908
2,839,409
86,979
86,146
7,909
20,815
9,134
6,607
1,612
18,676
5,260
3,872
6,312
21,185
285,143
7,000
46,101
4,219
18,783
3,739
73,809
33,612
13,253
10,918
22,195
9,013
1,093
8,376
8,700
97,672
• 55,902
4,984
2,299
26,406
5,010
EXHIBITS
171
Exhibit 4.--Offering of 2-7/8 percent Treasury notes of
Series A-1957
[Department Circular No. 929. PubUc Debt]
TREASURY DEPARTMENT,
Washington, September 2,1953.
L OFFERING OF NOTES
1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty
Bond Act, as amendetd, invites subscriptions, at par, from the people of the United
States for notes of the United States, designated 2-7/8 percent Treasury notes of
Series A-1957, in exchange for 2 percent Treasury bonds of 1951-53, dated September
15, 1943, and maturing September 15, 1953. The amount of the offering under this
circular wiU be limited to the anKJunt of maturing bcMids tendered in exchange and
accepted,
2. In addition to the offering under this circular, holders of the maturing bonds
are offered the privilege of exchanging aU or any part of such bonds for 2-5/8 percent
Treasury certificates of indebtedness of Series E-1954, which offering is set forth in
Department Circular No. 928, issued simultaneously with this circular.
IL DESCRIPTION OF NOTES
1. The notes wiU be dated September 15, 1953, and wiU bear interest from that
date at the rate of 2-7/8 percent per annum, payable semiannuaUy on March 15 and
September 15 in each year untU the principal amount becomes payable. They wiU
mature March 15, 1957, and wUl not be subject to caU for redemption prior to maturity.
2. The Income derived from the notes shaU be subject to aU taxes now or hereafter
imposed under the Internal Revenue Code, or laws amendatory or supplementary
thereto. The notes shaU be subject to estate, inheritance, gift, or other excise taxes,
whether Federal or State, but shaU be exempt from aU 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 notes wiU l)e acceptable to secure deposits of pubUc moneys. They wUlnot
be acceptable in payment of taxes.
4. Bearer notes with interest coupons attached wiU be issued in denominations of
$1,000, $5,000, $10„000, $100,000, and $1,000,000. Thenotes wiU not be issued in
registered form.
5. The notes will l>e subject to the general regulations of the Treasury Department,
now or hereafter prescribed, governing United States notes,
IIL SUBSCRIPTION AND ALLOTMENT
1. Subscriptions wiU be received at the Federal Reserve Banks and branches and
at the Office of the Treasurer of the United States, Washington. Banking institutions
generaUy 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 ofnotes applied for, and to close
the books as to any or aU subscriptions at any time without notice; and any action
he may take in these respects shaU be final. Subject to these reservatiais, aU subscriptions wiU be aUotted in fiiU. AUotment notices wiU be sent out promptly upon
allotment.
172
1954 REPORT OF THE SECRETARY OF THE TREASURY
IV. PAYMENT
1. Payment at par for notes allotted hereunder mustbe made on or before September
15, 1953, or on later aUotment, and may be made only in Treasury bonds of 1951-53,
dated September 15, 1943, maturing September 15, 1953, which wiU be accepted at
par, and should accompany the subscription. Final interest due September 15 on the
maturing bonds surrendered wiU be paid, in the case of coupon bonds, by payment of
September 15, 1953, coupons, which should be detached by holders before presentation
of the bonds, and in the case of registered bonds, by checks drawn in accordance with
the assignments on the bonds surrendered.
V. ASSIGNMENT OF REGISTERED BONDS
1. Treasury bonds of 1951-53 in registered form tendered in payment for notes
offered hereunder should be assigned by the registered payees or assignees thereof
to **The Secretary of the Treasury for exchange for Treasury Notes of Series A-1957
td*be deUvered to
_**, in accordance with the general regulations
of the Treasury Department governing assignments for transfer or exchange, and
thereafter should be presented and surrendered with the subscription to a Federal
Reserve Bank or branch or to the Office of the Treasurer of the United States, Washington. The bonds must be deUvered at the expense and risk of the holders.
VI. GENERAL PROVISIONS
1. As fiscal agents of the United States, Federal Reserve Banks are authorized and
requested to receive subscriptions, to make aUotments 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 aUotment notices, to receive payment for notes
aUotted, to make delivery of notes on fiiU-paid subscriptions aUotted, and they may
issue interim receipts pending deUvery of the definitive notes.
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 wiU
be communicated promptly to the Federal Reserve Banks.
G. M. Humphrey,
Secretary of the Treasury.
Exhibit 5.--Offering of 1-7/8 percent Treasury notes of
Series B-1954
[Department Circular No. 936. Public Debt]
TREASURY DEPARTMENT,
Washington, November 18,1953.
L OFFERING OF NOTES
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 notes of the United States, designated 1-7/8 percent Treasury notes of
Series B-1954, in exchange for Treasury notes of Series A-1953, maturing December
1, 1953.
2. In addition to the offering under this circular, holders of the maturing notes are
offered thc privilege of exchanging aU or any part of such notes for 2-1/2 percent
Treasury bonds of 1958, which offering is set forth in Department Circular No. 935,
issued simultaneously with this circular.
EXHIBITS
17 3
IL DESCRIPTION OF NOTES
1. The notes wiU. be dated December 1, 1953, and wiU bear interest from that date
at the rate of 1-7/8 percent per annum, payable on a semiannual basis on June 15
and December 15, 1954. They wiU mature December 15,1954, and wiU not be subject
to caU for redemption prior to maturity.
2. The income derived from the notes shaU be subject to aU taxes now or hereafter
imposed under the Intemal Revenue Code, or laws amendatory or supplemenury
thereto. The notes shaU be subject to estate, inheritance, gift, or other excise taxes,
whether Federal or State, but shaU be exempt from aU 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 notes wiU be acceptable to secure deposits of pubUc moneys. They wiU
not be acceptable in [payment of taxes.
4. Bearer notes with interest coupons attached wiU be issued in denominations of
$1,000, $5,000, $10,000, $100,000, and $1,000,000. The notes will not be issued in
registered form.
5. The notes wiU be subject to the general regulations of the Treasury Department,
now or hereafter prescribed, governing United States notes.
m. SUBSCRIPTION AND ALLOTMENT
1. Subscriptions ^^iU be received at the Federal Reserve Banks and branches and
at the Office of the; Treasurer of the United States, Washington. Banking institutions
generaUy 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 or reduce any subscription, to close title books as to any or aU subscriptions at any time without notice,
and to aUot less ithan the amount of notes applied for; and any action he may take
in these respects sliaU be final. Subject to these reservations, aU subscriptions wiU
be aUotted in fiiU. AUotment notices will be sent out promptly upon allotment.
rv. PAYMENT
1. Payment at par for notes allotted hereunder must be made on or before December 1, 1953, or on later aUotment, and may be made only in Treasury notes of Series
A-1953, maturing December 1, 1953, which wiU 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 aUotments 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 r^:etve payment for notes
aUotted, to make deUvery of notes on fiiU-paid subscriptions aUotted, and they may
issue interim receipts; pending deUvery of the definitive notes.
2. The Secretary of the Treasury may at any time, or from time to time, prescribe
supplemaital or amendatory rules and regulations governing the offering, which wiU
be communicated promptly to the Federal Reserve Banks.
G. M, Humphrey,
Secretary of the Treasury,
339256 O - 55 - 13
174
1954 REPORT OF THE SECRETARY OF THE TREASURY
Exhibit 6. --Offering of 1-7/8 percent Treasury notes of
Series A-1959
[Department Circular No. 944. Public Debt]
TREASURY DEPARTMENT,
Washington, May 4,1954.
I. OFFERING OF NOTES
1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty
Bond Act, as amended, invites subscriptions, from the people of the United States
for notes of the United States, designated 1-7/8 percent Treasury notes of Series
A-1959.
2. Cash offering.--Subscriptions are invited at par and accrued interest. The amount
of the offering is $2,000,000,000, or thereabouts. The books wiU be open only on May 4
for the receipt of cash subscriptions.
3. Exchange offering.--Exchange subscriptions are invited at par with an adjustment
of interest as set forth in section IV hereof, from holders of 2-5/8 percent Treasury
certificates of indebtedness of Series B-1954, maturing June 1, 1954. The books will
be open only on May 5 through May 7 for the receipt of exchange subscriptions for this
issue.
4. In addition to the exchange offering under this circular, holders of the maturing
certificates a r e also offered the privUege of exchanging aU or any part of such c e r tificates for 1-1/8 percent Treasury certificates of indebtedness of Series B-1955,
which offering is set forth in Department Circular No. 943, issued simultaneously
with this circular.
IL DESCRIPTION OF NOTES
1. The notes wiU be dated May 17, 1954, and wtU bear interest from that date at
the rate of 1-7/8 percent per annum, payable on a semiannual basis on February 15
and August 15, 1955, and thereafter on February 15 and August 15 in eachyear untU
the principal amount becomes payable. They wiU mature February 15, 1959, and
wiU not be subject to caU for redemption prior to maturity.
2. The income derived from the notes shaU be subject to aU taxes now or hereafter
imposed under the Internal Revenue Code, or laws amendatory or supplementary
thereto. The notes shaU be subject to estate, inheritance, gift, or other excise taxes,
whether Federal or State, but shaU be exempt from aU 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 notes wiU be acceptable to secure deposits of pubUc moneys. They wiU
not be acceptable in payment of taxes.
4. Bearer notes with interest coupons attached wiU be issued in denominations of
$1,000, $5,000, $10,000, $100,000, and $1,000,000. Thenotes wiU not be issued in
registered form.
5. The notes wiU be subject to the general regulations of the Treasury Department,
now or hereafter prescribed, governing United States notes.
m . SUBSCRIPTION AND ALLOTMENT
1. Subscriptions wUl be received at the Federal Reserve Banks and branches and
at the Office of the Treasurer of the United States, Washington. Only the Federal
Reserve Banks and the Treasury Department are authorized to act as official agencies.
Cash subscriptions.--Commercial banks, which for this purpose are defined as
banks accepting demand deposits, may submit subscriptions for account of customers.
EXHIBITS
175
Others than commercial banks wiU not be permitted to enter cash subscriptions
except for their own account. Subscriptions from commercial banks for their own
account wiU be received without deposit, but wiU be restricted in each case to an
amount not exceeding one-half of the combined capital, surplus, and undivided profits,
of the subscribing bank, as of December 31, 1953, Subscriptions from aU others must
be accompanied by payment of 10 percent of the amount of notes appUed for, not subject
to withdrawal untU after aUotment. FoUowing aUotment, any portion of the 10 percent
payment in excess of 10 percent of the amount of notes aUotted may be released upon
the request of the subscribers.
Exchange subscriptions.--Banking institutions generaUy may submit exchange subscriptions for account of customers.
2. The Secretary of the Treasury reserves the right to reject or reduce any subscription, and to aUot less than the amount of notes appUed for; and any action he
may take in these respects shaU be final. Subject to these reservations, cash subscriptions for amounts up to and including $10,000 wiU be allotted in fuU, and larger
subscriptions wiU be aUotted on an equal percentage basis, but not less than $10,000
on any one subscription, and exchange subscriptions wiU be aUotted in fuU. AUotment
notices wiU be sent out promptly upon aUotment.
IV. PAYMENT
1. Payment at par and accrued interest, if any, for notes aUotted hereunder must be
made or completed on or before May 17, 1954, or on later aUotment.
Cash subscriptions.--In every case where payment is not so completed, the payment
with application up to 10 percent of the amount of notes aUotted shaU, upon declaration
made by the Secretary of the Treasury in his discretion, be forfeited to the United
States. Any qualified depositary wiU be permitted to make payment by credit for
notes aUotted to it for itself and its customers up to any amount for which it shaU
be qualified in excess of existing deposits, when so notified by the Federal Reserve
Bank of its district.
Exchange subscriptions..--Payment of the principal amount may be made only in
Treasury certificates of indebtedness of Series B-1954, which wiU be accepted at
par, and should accompany the subscription. The fuU year's interest on certificates
exchanged hereunder wiU be credited, accrued interest on the new notes from May 17,
1954, to June 1, 1954 ($ 0.77693 per $1,000) wiU be charged, and the difference
($25.47307 per $1,000) wiU be paid to subscribers foUowing acceptance of the c e r tificates.
V. GENERAL PROVISIONS
1. As fiscal agents of the United States, Federal Reserve Banks are authorized and
requested to receive subscriptions, to make aUotments 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 aUotment notices, to receive payment for notes
aUotted, to make delivery of notes on fuU-paid subscriptions aUotted, and they may
issue interim receipts pending deUvery of the definitive notes.
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 wiU
be communicated promptly to the Federal Reserve Banks.
A. N. Overby,
Acting Secretary of the Treasury.
T r e a s u r y n o t e s i s s u e d for c a s h and in e x c h a n g e for m a t u r e d or c a l l e d s e c u r i t i e s , by F e d e r a l R e s e r v e d i s t r i c t s , f i s c a l y e a r 1954
[ i n thousands of d o l l a r s ]
Federal Reserve d i s t r i c t
Boston
New York
,
Philadelphia
Cleveland
Cincinnati
Pittsburgh
Richmond
Baltimore
,
Charlotte
Atlanta
Birmingham
Jacksonville..,
Nashville
New Orleans....
Chicago...
Detroit
St. Louis
Little Rock....
Louisville.....
Memphis
Minneapolis
Kansas City
Denver
Oklahoma City..
Omaha
Dallas
,
El Paso
Houston
San Antonio....
San Francisco.....
Los Angeles....
Portland
Salt Lake City.
Seattle
Treasury
Total
• Treasury
^
^ Treasury
the Treasury
^ Treasury
,
2-7/8 percent Series
A-1957 Treasury n o t e s
exchanged for 2 p e r c e n t
Treasury bonds of 195153 (dated S e p t . 15,
1943)1
118,973
,249, 581
83,913
100, 54-6
22,213
36,028
34,688
20,899
9,792
19,703
4,769
7,979
13,251
16,735
595,436
1-7/8 p e r c e n t S e r i e s
B-1954 Treasury notes
exchanged for 2 - 1 / 8
p e r c e n t S e r i e s A-1953^
Treasury notes'^
1-7/8 p e r c e n t S e r i e s A-1959 Treasury notes issued—
I n exchange f o r
2-5/8 percent Series
B-1954 c e r t i f i c a t e s ^
29,073
1,770
15,646
13,924
102,137
147,611
4,122
3,314
9,698
3,060
18,801
7,515,743
27,477
27,858
13,618
30,180
12,528
14,431
10,291
17,716
5,490
4,244
3,420
19,840
147,360
10,766
29,441
3,178
16,542
3,148
45,234
31,186
7,570
9,900
16,519
15,410
2,227
27,823
5,974
29,384
18,545
5,286
895
5,362
21,756
. 95,164
1,000,133
76,163
60,344
29,008
54,137
38,328
31,895
13,386
26,175
9,342
22,436
21,858
14,133
256,419
33,029
45, 611
1,969
10,015
8,184
37,603
25,035
10,461
17,274
9,760
43,027
2, 582
13,480
7,438
92,675
52,303
13,855
10, 974
20,821
54
75,513
1,341,153
101,900
85,872
22,438
32,988
15,089
5,311
26,205
38,272
11,774
9,262
9,235
32,730
434,584
26,841
89,585
5,974
27,104
10,699
55,943
63,415
41, 925
22,470'
13,091
48,772
1,635
23,883
6,270
92,500
93,715.
5,867
3,625
6,126
15,440
170,677
2,341,286
178,063
146,216
51,446
87,125
53,417
37,206
39,591
64,447
21,116
31,698
31,093
46,863
691,003
59,870
135,196
7,943
37,119
18,883
93,546
88,450
52,386
39,744
22,851
91,799
4,217
37,363
13,708
185,175
146,018
19,722
14,599
26,947
15,494
,574
8,175,143
2,205,071
2,897,206
5,102,277
108, 906
2,064
15,914
3,281
75,307
126,241
2,9
2-5/8 percent certificates. Series E-1954, also issued in exchange for this maturity; see table on page 24.
2-1/2 percent bonds of 1958 (additional issue) also issued in exchange for this maturity; see table on page 24. Prior to the exchange offering,
purchased from the Federal Reserve System and retired $500 million of the maturing notes.
1-1/8 percent certificates. Series B-1955, also issued in exchange for this security; see table on page 24.
^
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EXHIBITS
177
Exhibit 7. --Offering of 2-3/4 percent Treasury bonds of
1961
[Department Circular No. 933. Public Debt]
TREASURY DEPARTMENT,
Washington, October 28, 1953.
I. OFFERING OF BONDS
1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty
Bond Act, as amended, invites subscriptions, at par and accrued interest, from the
people of the United States for bonds of the United States, designated 2-3/4 percent
Treasury bonds of 1961. The amount of the offering is $2,000,000,000, or thereabouts.
In addition to the amount offered for pubUc subscription, the Secretary of the Treasury
reserves the right to aUot limited amounts of these bonds to Government investment
accounts.
II. DESCRIPTION OF BONDS
1. The bonds wiU be dated November 9, 1953, and wiU bear interest from that date
at the rate of 2-3/4 percent per annum, payable on a semiannual basis on September
15, 1954, and thereafter on March 15 and September 15 in each year untU the principal
amount becomes payable. They wiU mature September 15, 1961, and wiU not be subject
to caU'for redemption prior to maturity.
2. The income derived from the bonds shaU be subject to aU taxes now or hereafter
imposed under the Internal Revenue Code, or laws amendatory or supplementary
thereto. The bonds .shaU be subject to estate, inheritance, gift, or other excise taxes,
whether Federal or State, but shaU be exempt from aU taxation now or hereafter
imposed bn 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 bonds wiU be acceptable to secure deposits of public moneys.
4. Bearer bonds with interest coupons attached, and bonds registered as to principal
and interest, wiU be issued in denominations of $500, $1,000, $5,000, $10,000,
$100,000, and $1,000,000. Provision wiU be made for the interchange of bonds of
different denominations and of coupon and registered bonds, and for the transfer of
registered bonds, under rules and regulations prescribed by the Secretary of the
Treasury.
5. The bonds wiU be subject to the general regulations of the Treasury Department,
now or hereafter prescribed, governing United States bonds.
HI. SUBSCRIPTION AND ALLOTMENT
1. Subscriptions wiU be received at the Federal Reserve Banks and branches and
at the Office of the Treasurer of the United States, Washington. Commercial banks,
which for this purpose are defined as banks accepting demand deposits, may submit
subscriptions for account of customers, but only the Federal Reserve Banks andthe
Treasury Department are authorized to act as official agencies. Others than commercial banks wUl not be permitted to enter subscriptions except for their own account.
Subscriptions from commercial banks for their own account wiU be received without
deposit. Subscriptions from aU others must be accompanied by payment of 10 percent
of the amount of bonds applied for, not subject to withdrawal until after aUotment.
FoUowing aUotment, any portion of the 10 percent payment in excess of 10 percent
of the amount of bonds aUotted may be released upon the request of the subscribers..
2. The Secretary of the Treasury reserves the right to reject or reduce any subscription, to close the books as to any or aU subscriptions at any time without notice,
178
1954 REPORT OF THE SECRETARY OF THE TREASURY
to aUot less than the amount of bonds appUed for, and to make different percentage
aUotments to various classes of subscribers; and any action he may take in these
tespects shaU be final. The basis of the aUotment wiU be publicly announced, and
aUotment notices wiU be sent out promptly upon aUotment.
IV. PAYMENT
1. Payment at par and accrued interest, if any, for bonds aUotted hereunder must
be made or completed on or before November 9,1953, or on later aUotment. In every
case where payment is not so completed, the payment with appUcation up to 10 percent
of the amount of bonds aUotted shaU, upon declaration made by the Secretary of the
Treasury in his discretion, be forfeited to the United States. Any quaUfied depositary
wiU be permitted to make payment by credit for bonds aUotted to it for itself and its
customers up to any amount for which it shaU be quaUfied in excess of existing deposits, when so notified by the Federal Reserve Bank of its district.
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 aUotment notices, to receive payment for bonds
aUotted, to make deUvery of bonds on fuU-paid subscriptions aUotted, and they may
issue interim receipts pending delivery of the definitive bonds.
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 wUl
be communicated promptly to the Federal Reserve Banks.
G. M> Humphrey,
Secretary of the Treasury.
Exhibit 8. --Offering of 2-1/2 percent Treasury bonds of
1958 (additional issue)
[Department Circular No. 935. Public Debt]
TREASURY DEPARTMENT,
Washington, November 18, 1953.
L OFFERING OF BONDS
1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty
Bond Act, as amended, invites subscriptions, at par and accrued interest, from the
people of the United States for bonds of the United States, designated 2-1/2 percent
Treasury bonds of 1958, in exchange for 2-1/8 percent Treasury notes of Series
A-1953, maturing December 1, 1953. The amount of the offering under this circular
wiU be limited to the amount of maturing notes tendered in exchange and accepted.
2. In addition to the offering under this circular, holders ofthe maturing notes are
offered the privUege of exchanging aU or any part of such notes for 1-7/8 percent
Treasury notes of Series B-1954, which offering is set forth in Department Circular
No. 936, issued simultaneously with this circular.
U. DESCRIPTION OF BONDS
1. The bonds now offered wiU be an addition to and wiU form a part of the series
of 2-1/2 percent Treasury bonds of 1958 issued pursuant to Department Circular No.
EXHIBITS
179
920, dated February 2, 1953, wiU be freely interchangeable therewith, and are identical
in aU respects therewith except that interest on the bonds to be issued under this
circular wiU accrue from June 15, 1953. Subject to the provision for the accrual of
interest from June 15, 1953, on the bonds now offered, the bonds are described in
the foUowing quotation from Department Circular No. 920:
••1. The bonds wiU be dated February 15, 1953, and wiU bear interest from that
date at the rate of 2-1/2 percent per annum, payable on a semiannual basis on June 15
and December 15 in each year untU the principal amount becomes payable. They wiU
mature December 15, 1958, and wiU not be subject to caU for redemption prior to
mamrity.
" 2 . The income derived from the bonds shaU be subject to aU taxes now or hereafter imposed under the Internal Revenue Code, or laws amendatory or supplementary
thereto. The bonds shaU be subject to estate, inheritance, gift, or other excise taxes,
whether Federal or State, but shaU be exempt from aU 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 bonds wiU be acceptable to secure deposits of pubUc moneys.
••4. Bearer bonds with interest coupons attached, and bonds registered as to principal and interest, wUl be issued in denominations of $500, $1,000, $5,000, $10,000,
$100,000, and $1,000,000. Provision wiU be made for the interchange of bonds of
different denominations and of coupon and registered bonds, and for the transfer of
registered bonds, under rules and regulations prescribed by the Secretary of the
Treasury.
" 5 . The bonds wiU be subject to the general regulations of the Treasury Department,
now or hereafter prescribed, governing United States bonds.*'
UL SUBSCRIPTION AND ALLOTMENT
1. Subscriptions wiU be received at the Federal Reserve Banks and branches and
at the Office of the Treasurer of the United States, Washington. Banking institutions
generaUy 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 or reduce any subscription, to close the books as to any or aU subscriptions at any time without notice,
and to aUot less than the amount of bonds appUed for; and any action he may take in
these respects shaU be final. Subject to these reservations, aU subscriptions wUl be
aUotted in fiiU. AUotment notices wiU be sent out promptly upon aUotment.
IV. PAYMENT
1. Payment at pair and accrued interest from June 15, 1953, to December 1, 1953
($11.54372 per $1,000) for bonds aUotted hereunder must be made on or before
December 1, 1953, or on later aUotment. Payment of the principal amount may be
made only in Treasury notes of Series A-1953, maturing December 1, 1953, which
wiU be accepted at par and should accompany the subscription. Payment of accrued
interest on the bonds should be made when the subscription is tendered. Final interest
due on December 1 on notes surrendered wUl be paid by payment of December 1, 1953,
coupons, which shouldl be detached by holders before presentation of the notes.
V. GENERAL PROVISIONS
1. As fiscal agent; of the United States, Federal Reserve Banks are authorized and
requested to receive subscriptions, to raake aUotments 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 aUotment notices, to receive payment for bonds
180
1954 REPORT OF THE SECRETARY OF THE TREASURY
aUotted, to make deUvery of bonds on fliU-paid subscriptions aUotted, and they may
issue interim receipts pending deUvery of the definitive bonds.
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 wiU
be communicated promptly to the Federal Reserve Banks.
G. M. Humphrey,
Secretary of the lireasury.
Exhibit 9. --Offering of 2-1/2 percent Treasury bonds of
1961
[Department Circular No. 939. PubUc Debt]
TREASURY DEPARTMENT,
Washington, February 1, 1954.
L OFFERING OF BONDS
1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty
Bond Act, as amended, invites subscriptions from the people of the United States for
bonds of the United States, designated 2-1/2 percent Treasury bonds of 1961, in
exchange for which any of the foUowing Usted securities, singly or in combinations
aggregating $500 or multiples thereof, may be tendered:
2-1/4 percent Treasury certificates of indebtedness of Series A-1954, maturing
February 15, 1954
1-3/8 percent Treasury notes of Series A-1954, maturing March 15, 1954
2 percent Treasury bonds of 1952-54 (dated June 26, 1944), maturing June 15, 1954
2-1/4 percent Treasury bonds of 1952-55, to be caUed for redemption on June 15,
1954
2-1/4 percent Treasury bonds of 1954-56, to be called for redemption on June 15,
1954
Exchanges wiU be made par for par in the case of the maturing certificates and at par
with an adjustment of interest as of February 15, 1954, in the case of the other issues
eUgible for exchange. The amount of the offering under this circular wiU be Umited
to the amount of the eligible securities of the five issues enumerated above tendered
in exchange and accepted.
2. In addition to the offering under this circular, holders of the maturing certificates and notes are offered the privUege of exchanging aU or any part of such certificates and notes for 1-5/8 percent Treasury certificates of indebtedness of Series
A-1955, which offering is set forth in Department Circular No. 938, issued simultaneously with this circular.
. II. DESCRIPTION OF BONDS
1. The bonds wiU be dated February 15,1954, and wiU bear interest from that date
at the rate of 2-1/2 percent per annum, payable on a semiannual basis on November 15,
1954, and thereafter on May 15 and November 15 in each year untU the principal amount
becomes payable. They will mature November 15, 1961, and wiU not be subject to
caU for redemption prior to maturity.
2. The income derived from the bonds shaU be subject to aU taxes now or hereafter
imposed under the Internal Revenue Code, or laws amendatory or supplementary
EXHIBITS
181
thereto. The bonds shaU be subject to estate, inheritance, gift, or other excise taxes,
whether Federal or State, but shaU be exempt from aU 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 bonds wiU be acceptable to secure deposits of pubUc moneys.
4. Bearer bonds with interest coupons attached, and bonds registered as to principal
and interest, wiU be issued in denominations of $500^ $1,000, $5,000, $10,000,
$100,000, and $1,000,000, Provision wUl be made for the interchange of bonds of
differ Olt denominations and of coupon and registered bonds, and for the transfer of
registered bonds, under rules and regulations prescribed by the Secretary of the
Treasury.
5. The bonds wUl be subject to the general regulations of the Treasury Department,
now or hereafter pn^scribed, governing United States bonds,
III. SUBSCRIPTION AND ALLOTMENT
1. Subscriptions wiU be received at the Federal Reserve Banks and branches and
at the Office of the Treasurer of the United States, Washington. Banking institutions
generaUy 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 or reduce any subscription, to close the books as to any or aU subscriptions at any time without notice,
and to allot less than the amount of bonds appUed for; and any action he may take in
these respects shaU be final. Subject to these reservations, aU subscriptions wiU be
aUotted in fiUl. AUotment notices wiU be sent out promptly upon aUotment.
IV. PAYMENT
1. Payment at par for bonds allotted hereunder must be made on or before February
15, 1954, or on later aUotment, and may be made only in the securities of the five
issues enumerated in section I hereof, which wiU be accepted at par, and should
accompany the subscription. The fiiU amount of interest due on the maturing certificates surrendered wiU be paid following acceptance of the certificates. Coupons
dated March 15, 1954, must be attached to the notes when surrendered, and accrued
interest from September 15, 1953, to February 15, 1954 ($5.81146 per $1,000), wiU
be paid foUowing acceptance of the notes. Coupons dated June 15,1954, must be
attached to coupon bonds of each of the three eUgible issues when surrendered, and
accrued interest from December 15, 1953, to February 15,1954 ($3,40659 per $1,000
in the case of the 2 percent bonds and $3.83242 per $1,000 in the case of the 2-1/4
percent bonds), wiU be paid following acceptance of the bonds. In the case of registered
bonds, accrued interest from December 15, 1953, to February 15,1954, wiU be paid
by check drawn in accordance with the assignments on the bonds surrendered, or by
credit in any account maintained by a banking institution with the Federal Reserve
Bank of its district.
V. ASSIGNMENT OF REGISTERED BONDS
1. Treasury bonds of the three eligible issues in registered form tendered in
payment for bonds offered hereunder should be assigned by the registered payees
or assignees thereof to "The Secretary of the Treasury for exchange for 2-1/2 percent
Treasury Bonds of 1961 to be deUvered to
_ ' * , in accordance with
the general regulations of the Treasury Department governing assignments for transfer
or exchange, and thereafter should be presented and surrendered with the subscription
to a Federal Reserve Bank or branch or to the Office ofthe Treasurer of the United
States, Washington. The bonds must be deUvered at the expense and risk of the holders.
182
1954 REPORT OF THE SECRETARY OF THE TREASURY
VI. 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 aUotment notices, to receive payment for bonds
aUotted, to make deUvery of bonds on ftiU-paid subscriptions aUotted, and they may
issue interim receipts pending deUvery of the definitive bonds.
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.
G, M. Humphrey,
Secretary of the Treasury.
Treasury bonds issued for cash and in exchange for matured or called securities, by Federal Reserve districts, fiscal year 1954
[in thousands of dollars]
Federal
Reserve
district
Boston
New York
Philadelphia..
Cleveland
Cincinnati
Pittsburgh
Richmond
Baltimore
Charlotte
Atlanta
Birmingham
Jacksonville
Nashville
New Orleans
Chicago
Detroit
St. Louis
Little Rock
Louisville
Memphis
Minneapolis
Kansas City
Denver
Oklahoma City.i...
Omaha
Dallas
.El Paso
Houston
San Antonio
San Francisco
Los Angeles
Portland
Salt Lake City
Seattle
Treasury
Government investment
accounts
Total
2-3/4 percent
Treasury bonds
of 1961 issued
for cash
131,543
902,970
73,275
60,940
19,432
38,551
41,368
28,073
17,264
30,527
11,510
23,720
27,144
20,965
254,170
49,088
49,145
1,730
12,840
12,012
40,233
32,;104
8,242
12,234
14,630
51,498
2,977
15,298
8,310
59,585
73,012
19,726
11,344
33,752
2,239,262
2-i/2 percent
Treasury bonds
of 1958 (additional issue)
exchanged for
2-1/8 percent
Series A-1953
Treasury notes^
44,674
683,714
45,960
81,326
30,923
14,704
22,757
8,323
12,139
24,653
4,895
7,966
8,965
11,106
325,111
17,876
41,935
2,269
22,914
11,288
46,584
62,720
11,230
15,991
15,481
36,576
2,466
19,758
10,942
44,609
28,144
3,030
2,498
5,409
19,302
1,748,238
2-1/2 percent Treasury bonds of 1961 exchanged for—
2-1/4 percent
Series A-1954
certificates
maturing
Feb. 15, 19542
101,451
821,946
65,365
105,522
54,353
32,982
20,407
12,547
11,112
35,046
4,473
8,962
12,931
37,499
342,687
54,498
92,646
2,556
28,005
15,059
79,434
61,005
10,011
23,611
12,946
27,420
12,697
28,677
11,333
125,701
66,349
2,306
5,742
12,411
19,823
2,359,513
2-1/4 percent
2-1/4 percent
2 percent Treasury
1-3/8 percent
Treasury bonds of Treasury bonds of
bonds of 1952-54
Series A-1954
1952-55 (dated
1954-56 (dated
(dated June 26,
Treasury notes
July 22, 1940)
Feb. 22, 1942)
1944) maturing
maturing
called for redemp- called for redempMar. 15, 1954^ June 15, 1954^
tion June 15,1954^ tion June 15,1954'
74,835
1,522,851
79,457
106,907
21,908
53,399
25,809
15,847
1,105
40,183
6,141
10,534
14,336
7,127
510,663
72,525
81,511
1,310
20,277
4,973
67,554
61,661
18,114
22,044
16,790
61,669
3,992
9,836
11,397
135,910
124,208
8,098
6,862
8,054
9,519
166,912
1,726,161
134,370
94,938
47,208
70,856
37,900
55,705
8,393
32,304
5,148
11,383
18,181
29,151
537,945
28,350
83,867
3,056
22,136
9,783
90,549
64,328
20,736
19,916
26,466
47,152
3,182
35,512
21,164
457,869
147,207
5,356
2,571
12,096
5,057
4,082,910
102,122
452.242
44^180
21,869
23,037
19,068
13,963
10,102
1,619
5,342
1,536
2,739
1,883
4,523
128,428
7,407
24,364
1,506
5,098
1,507
18,772
21,039
3,722
11,508
5,351
8,666
964
4,149
3,677
147,746
18,787
1,607
702
5,211
3,410
1,127,846
14,748
164,683
12,778
8,912
8,191
4,392
3,188
847
192
581
213
726
2,118
1,286
65,254
6,285
19,013
77
1,246
5,292
6,575
7,522
353
1,020
875
1,402
339
6,060
1,253
3,523
16,288
302
217
1,992
1,730
369,479
460,068
4,687,888
336,150
338,148
154,697
180,696
. 101,267
95,048
22,420
113,456
17,511
34,344
49,449
79,586
1,584,976
169,066
301,402
8,504
76,763
36,614
262,884
215,555
52,936
78,100
62,428>
146,310
21,174
84,234
48,824
870,748
372,839
17,670
16,094
39,764
39,540
11,177,154
^ Treasury 1-7/8 percent notes. Series B-1954, also issued in exchange for this maturity; see table on page 24. Prior to the exchange offering, the Treasury purchased from the Federal Reserve System and retired $500 million of the maturing notes,
2 Treasury 1-5/8 percent certificates. Series A-1955, also issued in exchange for this security; see table on page 24.
^ Treasury I-I/8 percent certificates. Series B-1955, also issued in exchange for this security; see table on page 24.
DO
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184
1954 REPORT OF THE SECRETARY OF THE TREASURY
Exhibit 10.--Call, February 9, 1954, for redemption on
June 15, 1954, of 2-1/4 percent Treasury bonds of
1952-55, dated February 25, 1942 (Federal Register,
February 12, 1954)
NOTICE OF CALL FOR REDEMPTION
To Holders of 2-1/4 Percent Treasury Bonds of 1952-55, and Others Concerned:
lo PubUc notice is hereby given that aU outstanding 2-1/4 percent Treasury bonds
of 1952-55, dated February 25, 1942, due June 15, 1955, are hereby called for r e demption on Jiine 15, 1954, on which date interest on such bonds wiU cease.
2. Holders of these bonds may, in advance of the redemption date, be offered the
privilege of exchanging aU or any part of their caUed bonds for other interest-bear ing
obligations of the United States, in which event pubUc notice wiU hereafter be given
and an official circular governing the exchange offering wiU be issued.
3. FuU information regarding the presentation and surrender of the bonds for cash
redemption under this caU wiU be found in Department Circular No. 666, dated July 21,
1941.
G. M. Humphrey,
Secretary of the Treasury.
Exhibit 11.--Call, February 9, 1954, for redemption on
June 15, 1954, of 2 - 1 / ^ percent Treasury bonds of
1954-56, dated July 22, 1940 (Federal Register,
February 12, 1954)
NOTICE OF CALL FOR REDEMPTION
To Holders of 2-1/4 Percent Treasury Bonds of 1954-56, and Others Concerned:
1. PubUc notice is hereby given that aU outstanding 2-1/4 percent Treasury bonds
of 1954-56, dated July 22, 1940, due June 15, 1956, are hereby caUed for redemption
on June 15, 1954, on which date interest on such bonds wiU cease.
2. Holders of these bonds may, in advance of the redemption date, be offered the
privilege of exchanging aU or any part of their called bonds for other interest-bearing
obligations of the United States, in which event pubUc notice wiU hereafter be given and
an official circular governing the exchange offering wUl be issued.
3. FuU information regarding the presentation and surrender of the bonds for cash
redemption under this caU wiU be found in Department Circular No. 666, dated July 21,
1941.
G, M. Humphrey,
Secretary of the Treasury.
EXHIBITS
185
TREASURY BILLS
Exhibit 12.--Inviting tenders for Treasury bills dated
June 24, 1954 (press release of June 17, 1954)
The Treasury Department, by this pubUc notice, invites tenders for $1,500,000,000,
or thereabouts, of 91-day Treasury bUls, for cash and in exchange for Treasury biUs
maturing June 24, 1954, in the amount of $1,501,190,000, to be issued on a discount
basis under competitive and noncompetitive bidding as hereinafter provided. The bUls
of this series wiU be dated June 24, 1954, and wiU mature September 23, 1954, when
the face amount wiU be payable without interest. They wiU 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 wiU be received at Federal Reserve Banks and branches up to the closing
hour, two o'clock p. m., eastern dayUght saving time, Monday, June 21,1954. Tenders
wiU not be received at the Treasury Department, Washington. Each tender must be
for. an even multiple of $1,000, and in the case of competitive tenders 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 s;pecial envelopes which wiU be supplied by Federal Reserve Banks
or branches on application therefor.
Others than banking institutions wiU not be permitted to submit tenders except for
their own account. Tenders wiU 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 appUed 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 wiU be opened atthe Federalreserve
Banks and branches,, following which pubUc announcement wiU be made by the Treasury
Department of the amount and price range of accepted bids. Those submitting tenders
wUl be advised of the acceptance or rejection thereof. The Secretary ofthe Treasury
expressly reserves; the right to accept or reject any or aU tenders in whole or in
part, and his action in any such respect shaU be final. Subject to these reservations,
noncompetitive tenders for $200,000 or less without stated price from any one bidder
wiU be accepted in liiU at the average price (in three decimals) of accepted competitive
bids. Settlement for accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on June 24,1954, in cash or other immediately
available funds or in a like face amount of Treasury bills maturing June 24, 1954.
Cash and exchange tenders wiU receive equal treatment. Cash adjustments wiU 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, shaU not have any exemption, as such, and loss from
the sale or other disposition of Treasury bills shaU not have any special treatment,
as such, under the Internal Revenue Code, or laws amendatory or supplementary
thereto. The bills shaU be subject to estate, inheritance, gift, or other excise taxes,
whether Federal or State, but shaU be exempt from aU taxation now or hereafter
imposed on the prmcipal 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 bills are originaUy sold by the United States
shaU 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 biUs issued hereunder are sold shaU not be considered to accrue
until such bills sliaU be sold, redeemed, or otherwise disposed of, and such bUls
are excluded from consideration as capital assets. Accordingly, the owner of Treasury
186
1954 REPORT OF THE SECRETARY OF THE 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 actuaUy 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, revised, and this notice, prescribe the
terms of the Treasury bUls and govern the conditions of their issue. Copies of the
circular may be obtained from any Federal Reserve Bank or branch.
Exhibit 13.—Acceptance of tenders for Treasury bills
dated June 24, 1954 (press release of June 22, 1954)
- The Treasury Department announced last evening that the tenders for $1,500,000,000,
or thereabouts, of 91-day Treasury bUls to be dated June 24 and to mature September
23, 1954, which were offered on June 17, were opened at the Federal Reserve Banks
on June 2 1 .
The details of this issue are as follows:
Total appUed for
$2,207,297,000
Total accepted (includes $224,335,000 entered on a noncompetitive
basis and accepted in fuU at the average price shown below)
1,500,973,000
Average price, equivalent rate of discount approximately 0.635%
per annum
99.840
Range of accepted competitive bids:
High, equivalent rate of discount approximately 0.613% per
annum
99.845
Low, equivalent rate of discount approximately 0.649% per
annum
99.836
(14 percent of the amount bid for at the low price was accepted)
Federal Reserve district
Boston
,
NewYork
r^ni laueipnia ....••.•.•.•.•.......•...•......••••»
Cleveland
Richmond
Atlanta
,
Chicago
St. Louis
Minneapolis
Kansas Citv.....
«
Dallas
San Francisco
Total
Total applied for
Total accepted
$29,051,000
1,569,696,000
31,067,000
49,888,000
15,847,000
30,552,000
237,575,000
19,603,000
15,386,000
44,891,000
46.955,000
116,786,000
$25,051,000
898,156,000
16,067,000
49,888,000
15.847,000
29,522.000
230,695,000
19,603,000
15,286.000
44.547.000
46,955.000
109.356.000
2,207,297,000
1,500,973,000
Exhibit 14.--Inviting tenders for the Tax Anticipation
Series of Treasury bills dated April 27, 1954 (press
release of April 16, 1954)
The Treasury Department, by this pubUc notice, invites tenders for $1,000,000,000.
or thereabouts, of 52-day Treasury bUls, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series
EXHIBITS
187
wiU be designated Tax Anticipation Series, they wiU be dated April 27, 1954, and they
wiU mamre June 18, 1954, They wiU be accepted at face value in payment of income
and profits taxes due on June 15, 1954, and to the extent they are not presented for
this purpose the face amount of these bills wiU be payable without interest at maturity.
Taxpayers desiring to apply these bills in payment of June 15, 1954, income and profits
taxes have the privilege of surrendering them to any Federal Reserve Bank or branch
not more than fifteen days before June 15,1954, and receiving receipts therefor showing the face amount of the bUls so surrendered. These receipts may be submitted in
Ueu of the biUs on or before June 15, 1954, to the District Director of Internal Revenue
for the district in which such taxes are payable. They wiU 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 wiU be received at Federal Reserve Banks and branches up to the closing
hours, two o'clock p. m., eastern standard time, Wednesday, AprU 21, 1954. Tenders
wiU not be received at the Treasury Department* Washington. Each tender must be
for an even multiple of $ 1,000, and in the case of competitive tenders 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 forwardeid in the special envelopes which wiU be supplied by Federal Reserve Banks or branches on appUcation therefor.
Others than banking institutions wiU not be permitted to submit tenders except
for their own account. Tenders wiU 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 appUed 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 wiU be opened at ths Federal Reserve
Banks and branches, foUowing which pubUc announcement wiU be made by the Treasury
Department of the amount and price range of accepted bids. Those submitting tenders
wiU be advised of the acceptance or rejection thereof. The Secretary ofthe Treasury
expressly reserves the right to accept or reject any or aU tenders, in whole or in
part, and his action in any such respect shaU be finaL Subject to these reservations,
noncompetitive tenders for $200,000 or less without stated price from any one bidder
wiU be accepted in fuU at the average price (in three decimals) of accepted competitive
bids. Settlement for accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on AprU 27,1954, in cash ot other immediately
available funds, provided, however, any qualified depositary wiU be permitted to make
payment by credit in its Treasury tax and loan account for Treasury bills allotted to it
for itself and its customers up to any amount for which it shaU be quaUfied in excess of
existing deposits when so notified by the Federal Reserve Bank of its district.
The income derived from Treasury bills, whether interest or gain from the sale or
other disposition of ithe bills, shaU not have any exemption, as such, and loss from the
sale or other disposition of Treasury bills shaU not have any special treatment, as
such, under the Internal Revenue Code, or laws amendatory or supplementary thereto.
The bills shaU be subject to estate, inheritance, gift, or other excise taxes, whether
Federal or State, but shaU be exempt from aU taxation now Or hereafter imposed on
the principal or interest thereof by an 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 bills are originaUy sold by the United States shaU be considered
to be interest. Under Sections 42 and 117 (a) (1) of the Intemal Revenue Code, as amended
by Section 115 of the Revenue Act of 1941, the amount of discount at Which bills issued
hereunder are sold shaU not be considered to accrue until such bills shaU be sold,
redeemed, or othervfise disposed of, and such bills are excluded from consideration
as capital assets. Accordingly, the owner of Treasury bills (other than Ufe 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 actuaUy received either upon sale or redemption at maturity.
188
1954 REPORT OF THE SECRETARY OF THE TREASURY
or the amount of income or profits taxes paid by means of the bills, during the taxable
year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418, Revised, and this notice, prescribe the terms
of the Treasury bUls and govern the conditions of their issue. Copies of the circular
may be obtained from any Federal Reserve Bank or branch.
Exhibit 15.--Acceptance of tenders for the Tax Anticipation Series of Treasury bills dated April 27, 1954 (press
release of April 22, 1954)
The Treasury Department announced last evening that the tenders for $1,000,000,000,
or thereabouts, of Tax Anticipation Series 52-day Treasury bills to be dated AprU 27
and to mature June 18, 1954, which were offered on AprU 16, were opened at the
Federal Reserve Banks on April 21,
The details of this issue are as follows:
Total applied for
$2,986,820,000
Total accepted (includes $207,595,000 entered on a noncompetitive
basis and accepted in fuU at the average price shown below)
1,000,883,000
Average price, equivalent rate of discount approximately 0.7216%
per annum
99.895 +
Range of accepted competitive bids:
High, equivalent rate of discount approximately 0,672% per
annum
99.903
Low, equivalent rate of discount approximately 0.748% per
annum
99.892
(21 percent of the amount bid for at the low price was accepted)
Federal Reserve district
Boston
New York
PhUadelphia,.
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
DaUas
San Francisco
Total
Total appUed for
0
.,o
Total accepted
$143,996,000
1.428,380,000
124,738,000
166,585,000
108,162,000
81,344,000
331,602,000
67,678,000
56,086,000
99,645,000
89,370,000
289,234,000
$43,802,000
281,165,000
23.600.000
45,320,000
34,176,000
39,444,000
257,640,000
33,347,000
30,478,000
47,672,000
44,555,000
119,684,000
2,986,820,000
1,000,883,000
Exhibit 16. --Summary of information pertaining to
Treasury bills.
Press releases pertaining to the Weekly Series of Teasury biU issues during the
fiscal year 1954 were similar in form to exhibits 12 and 13 of this report. The press
releases pertaining to the March 22,'1954, Tax Anticipation Series were similar in
form to exhibits 14 and 15, except that payment by credit in Treasury tax and loan
accounts was not permitted. The releases are not reproduced in this report but the
essential details regarding each issue are summarized in the foUowing table.
Summary of information pertaining to Treasury bills^ issued during the fiscal year 1954
Prices and rates
Maturity value (in thousands of dollars)
Tenders accepted
Date
of
maturity
Date
of
Days
to
maturity
Total
applied
for
Total
accepted
On competitive
basis
competitive
basis^
Total bids accepted
For
cash
In
exchange
Average
price
per
hundred
Equivalent
average
rate^
(percent)
Competitive bids accepted
High
Low
EquivaPrice
Price
lent
per •
per
rate^
himdred
(percent) hundred
Equivalent
rate^
(percent)
Weekly Series
1953
July
Aug.
Sept.
Oct.
Nov.
Dec.
1953
1
2 Oct.
9
8
16
15
23
22
29
30
5
6 Nov.
13
12
20
19
27
27
3 Dec.
3
10
10
17
17
24
24
1
31
8
15
22
29
5
12
19
27
3
10
17
24
31
1954
Jan.
7
14,
21
28
Feb.
4
11
18
25
Mar.
4
11
18
25
Apr.
1
1954
Jan.
7
14
21
28
Feb.
4 May
11
18
25
8
15
22
29
• 6
13
20
27
91
91
91
91
91
91
91
91
92
91
91
91
91
91
2,191,999
2,166,893
2,276,662
2,380,316
2,262,226
2,409,502
2,363,148
2,494,735
2,545,560
2,368,175
2,023,108
2,555,793
2,149,975
2,366,939
91
91
91
91
91
91
91
90
91
91
91
91
91
91
91
91
91
91
91
91
91
1,500,319 , 1,296,425
1,501,179
1,274,703
1,500,280
1,232,736
1,218,473
1,500,620
1,239,794
1,500,110
1,500,309
1,238,928
1,202,927
1,500,702
1,501/28
1,201,068
1,501,518
1,252,302
1,500,482
1,270,514
1^500,508
1,278,487
1,500,290
1,169,235
1,499,948
1,213,247
1,500,943
1,279,595
203,894
226,476
267,544
282,147
260,316
261,381
297,775
300,360
249,216
229,968
222,021'
331,055
286,701
221,348
1,411,995
1,381,878
1,268,738
1,310,273
1,389,125
1,318,554
1,292,665
1,347,193
1,308,852
1,324,804
1,407,773
1,306,877
1,241,775
1,260,231
88,324
119,301
231,542
190,347
110,985
181,755
208,037
154,235
192,666
175,678
92,735
193,413
258,173
240,712
99.468
99.493
99.468
99.462
99.455
99.460
99.465
99.469
99.489
99.504
99.506
99.505
99.587
99.600
2.106
2.007
2.106
2.127
2.157
2.136
2.116
2.101
2.001
1.961
1.953
1.957
1.634
1.583
2,541,651
2,219,628
2,366,509
2,096,073:
2,066,298
2,198,251
2,265,098
2,168,957
2,024,857
1,999,149
2,216,421
• 2,290,302
•2,334,702
1,500,820
1,501,444
1,500,749
1,499,879
1,500,621
1,500,066
1,501,687
1,501,170
1,500,262
1,500,689
1,500,538
1,501,272
1,502,270
1,273,910
1,276,071
1,241,963
1,277,376
1,318,609
1,244,631
1,240, 938
1,269,909
1,286,390
1,269,163
1,224,603
1,259,380
1,295,662
226,910
225,373
258,786
222,503
182,012
255,435
260,749
231,261
213,872
231,526
275,935
241,892
206,608
1,369,789
1,263,302
1,322,722
1,387,710
1,331,977
1,301,211
1,343,571
1,262,738
1,295,134
1,345,922
1,285,811
1,201,862
1,185,382
131,031
238,142
178,027
112,169
168,644
198,855
158,116
238,432
205,128
154,767
214,727
299,410
316,888
99.647
99.637
99.653
99.692
99.670
99.626
99.638
99.628
99.598
99.595
- 99.575
99.569
99.602
2,607,857
2,321,010
2,558,901
2,140,313
2,296,202
2,252,689
2,139,807
2,189,260
1,500,289
1,500,428
1,501,961
1,500,313
1,500,318
1,501,294
1,499,945
1,500,726
1,281,418
1,234,732
1,242,609
1,283,210
1,318,895
1,279,847
1,293,558
1,325,243
218,871
265,696
259,352
217,103
181,423
221,447
206,387
175,483
1,308,775
1,379,701
1,364,472
1,265,035
1,318,742
1,291,254
1,308,976
1,276,024
191,514
120,727
137,489
235,278
181,576
210,040
190,96?
224,702
99.668
99.662
99.695
99.748
99.739
99.774
99.741
99.751
99.524
- 99.499 •
^
99.519
99.507
99.494
99.451
99.494
99.452
99.490
99.507
99.519
99.520
99.596
99.605
1.883
1.982
1.903
1.950
2.002
2.053
2.002
2.049
1.996
1.950
1.903
1.899
1.598
1.563
99.457
99.486
99.462
99.459
99.452
99.459
99.464
99.468
99.487
99.503
99.502
99.505
99.575
99.598
2.148
2.033
2.128
2.140
2.168
2.140
2.120
2.105
2.007
1.966
1.970
1.958
1.681
1.590
1.397
1.438
1.372
1.220
1.306
1.481
, 1.433
1.488
1.589
1.603
1.682
1.704
1.574
99.651
99.684
5 99.656
99.697
99.710
99.700
99.655
99.675
99.638
^ 99.615
99.621
99.610
99.607
1.381
1.250
1.361
1.199
1.147
1.187
1.365
1.300
1.432
1.523
1.499
1.543
1.555
99.644
99.634
99.652
99.688
99.663
99.621
99.635
99.625
99.592
99.589
99.570
99.566
99.601
1.408
1.448
1.377
1.234
1.333
1.499
1.444
1.500
1.614
1.626
1.701
1.717
1.578
• 1.314
1.336
1.208
0.998
1.031
0.893
1.024
0.986
99.670
99.697
99.701
99.756
99.775
99.780
99.795
99.795
1.305
1.199
1.183
0.965
0.890
0.870
0.811
0.811
99.666
99.659
99.692
99.736
99.734
99.770
99.736
99.748
•
1.321
1.349
1.218
1.044
1.052
0.910
1.044
0.997
00
Footnotes at end of table.
S u m m a r y of i n f o r m a t i o n p e r t a i n i n g to T r e a s u r y bills^
i s s u e d d u r i n g the f i s c a l y e a r
1954--Continued
Tenders accepted
Date
of
issue
Date
of
maturity
Days
to
maturity
Total
applied
for
Total
accepted
On
competitive
basis
On noncompetitive
basis^
o
Prices and rates
Mattirity value (in thousands of dollars)
Total bids accepted
For
cash
In
exchange
Average
price
per
himdred
Equivalent
average
rate^
(percent)
Competitive bids accepted
High
Price
per
hundred
Low
EquivaPrice
lent
per
rate^
hundred
(percent)
Equivalent
rate^
(percent)
3
V/eekly S e r i e s
1954
1954
Mar.
3
4 June
10
11
17
18
25
24
Apr.
1
1 July
8
8
15
15
22
22
29
29
May
5
6 Aug.
13
12
19
20
26
27
June
3 Sept.
2
9
10
16
17
23
24
91
91
91
91
91
91
91
.91
91
91
91
91
91
91
91
91
91
2,221,041
2,268,989
2,531,185
2,371,597
2,339,935
2,137,884
2,214,164
2,364,533
2,493,521
2,289,953
2,285,019
2,227,635
2,327,116
2,200,412
•2,068,900
2,225,753
2,207,297
1,500,998
1,501,139
1,501,048
1,501,190
1,500,672
1,499,953
1,501,274
1,501,452
1,502,532
1,502,208
1,500,849
1,501,427
1,502,782
1,500,502
1,500,190
1,500,603
1,500,973
1,298,848
1,287,669
1,244,091
1,257,073
1,309,111
1,305,808
1,259,607
1,270,631
1,286,554
1,302,882
1,289,237
1,294,372
1,329,743
1,341,422
1,312,853
1,296,390
1,276,638
202,150
213,470
256,957
24^,117
191,561
194,145
241,667
230,821
215,978
199,326
211,612
207,055
173,039
159,080
187,337
204,213
224,335
1,314,186
1,385,378
1,300,398
1,292,623
1,316,349
1,359,692
1,354,998
1,348,976
1,292,026
1,323,374
1,274,134
1,334,770
1,252,537
1,224,659
1,406,474
1,320,331
1,462,513
186,812
115,761
200,650
208,567
184,323
140,261
146,276
152,476
210,506
178,834
226,7-15
166,657
250,245
275,843
93,716
180,272
38,460
99.732
99.731
99.733
99.740
99,731
99.744
99.731
99.740
99.776
99.805
99.792
99.795
99.818
99.820
99.844
99.840
99.840
1.060
1.065
1.056
1.030
1.063
1.013
1.066
1.027
0.886
0.773
0.824
0.812
0.718
0.714
0.616
0.633
0.635
• 99.752
^
99.752
99.740
^ 99.747
5 99.750
10 99.747
11 99.750
12 99.743
99.778
99.808
99.835
13 99.800
99.822
i ^ 99.825
'
99.846
99.850
99.845
0.981
0.981
1.029
1.001
0.989
1.001
0.989
1.017
0.878
0.760
0.653
0.791
0.704
0.692
0.609
0.593
0.613
99.728
99.728
99.731
99.737
99.729
99.742
99.728
99.739
99.775
99.803
99.789
99.793
99.817
99.818
99.842
99.837
99.836
1.076
1.076
1.064
1.040
1.072
1.021
1.076
1.033
0.890
0.779
0.835
0.819
0.724
0.720
0.625
0.645
0.649
22
27
June
June
94
52
2,717,273
2,987,020
1,500,659
1,001,083
1,345,295
793,288
155,364
207,795
1,500,659
1,001,083
X
m
GO
m
n
>
o
H
X
m
H
Tax Anticipation Series
Mar.
Apr.
O
H
99.750
99.895
0.956
0.726
99.775
99.903
0.862
0.672
99.747
99.892
0.969
0.748
>
GO
Note.—^Amount of inatured issues will be found in table 23.
1 The usual timing with respect to issues of Treasury bills is: Press release inviting tenders, 7 days before date of issue; closing date on which tenders are accepted,
3 days before date of issue; and press release announcing acceptance of tenders, 2
days before date of issue. Figures are final and differ in many instances from those
shown in press releases announcing details of particular issue.
2 Noncompetitive tenders for $200,000 or less without stated price from any one
bidder were accepted in full at average price for accepted competitive bids.
^ Bank-discount basis.
^ Except $200,000 at 99.524.
^ Except
^ Except
'^ Except
^ Except
^ Except
1° Except
11 Except
12 Except
I ' Except
i ^ Except
'
1200,000 at 99.684.
$300,000 at 99.638.
$85,000 at 99.775.
$127,000 at 99.775.
$200,000 at 99.765.
$300,000 at 99.760.
$325,000 at 99.765.
$200,000 at 99.747.
$100,000 at 99.820
$200,000 at 99.900.
c
5
EXHIBITS
191
Exhibit 17. --Eighth amendment, July 3, 1953, to Department Circular No. 418, regulations governing Treasury
bills
TREASURYDEPARTMENT.
Washmgton, July 3, 1953.
Paragraph 6 of Department Circular No. 418, as amended (31 CFR 309.6), is hereby
revised to read as follows:
PUBLIC NOTICE
•*6. When Treasury bills are to be offered, tenders therefor will be invited through
public
notice given by the Secretary of the Treasury. Such public notices may be
issued by the Secretary of the Treasury in thename of *'the Treasury Department**
with the same force and effect as if issued in the name of the Secretary of the Treasury.
In such notice there will be set forth the amount of Treasury bills for which tenders
are then invited, tb^ date of issue, the date or dates when such bills will become due
arid payable, the date and closing hour fpr the receipt of tenders at the Federal Reserve
Banks and branches, and the date on which payment for accepted tenders must be
made or completed.**
G. M. Humphrey,
Secretary of the Treasury.
Exhibit 18. --Revision, February 23, 1954, of Department
Circular No. 418, regulations governing Treasury bills
TREASURY DEPARTMENT,
Washington, February 23,1954.
Department Circular No. 418, dated February 28, 1941 (31 CFR 309), as amended,
is hereby issued as a revision to read as follows:
Sec. 309.1 Authority for issue and sale.--The Secretary of the Treasury is authorized by the Second Liberty Bond Act, as amended, to issue Treasury bills of the United
States on an interest-bearing basis, on a discount basis, or on a combination interestbearing and discount basis, at such price or prices and with interest computed in
such manner and payable at such time or times as he may prescribe; and to fix the
form, terms, and conditions thereof, and to offer them for sale on a competitive or
other basis, under such regulations and upon such terms and conditions as he may
prescribe. Pursuant to said authorization, the Secretary of the Treasury may, from
time to time, by public notice, offer Treasury bills for sale, and invite tenders therefor, through the F'ederal Reserve Banks. The Treasury bills so offered, and the
tenders made, will Ibe subject to the terms and conditions and to the general rules and
regulations herein set forth, except as they may be modified in the public notices
issued by the Secretary of the Treasury in connection with particular offerings. ^
Sec. 309.2 Description of Treasury bills (general).--Treasury bills are bearer
obligations of the United States promising to pay a specified amount on a specified date.
They will be payable at maturity upon presentation to the Treasurer of the United
States, in Washington, or to any Federal Reserve Bank. Treasury bills are issued
only by Federal Reserve Banks pursuant to tenders accepted by the Secretary of the
Treasury, and shall not be valid unless the issue date and the maturity date are entered
thereon. Treasury bills bearing the same issue date and the same maturity date shall
constitute a series.
1 Accordingly, these regulations do not constitute a specific offering of Treasury bills.
192
1954 REPORT OF THE SECRETARY OF THE TREASURY
Sec. 309.3 Denominations and exchange.--Treasury bills will be issued in denominations (maturity value) of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000.
Exchanges from higher to lower denominations of the same series (bearing the same
issue and maturity dates) will be permitted at Federal Reserve Banks. Insofar as
applicable, the general regulations of the Treasury Pepartment governing transactions
in bonds and notes will govern trarisactions in Treasury bills.
Sec. 309.4 Taxation.--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 the Internal Revenue Code, or laws amendatory
or supplementary thereto. 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 bills are originally sold by the United
States shall be considered to be interest.
Sec. 309.5 Acceptance as security for public deposits and in payment of taxes (when
specifically provided for by the Secretary of the Treasury).—Treasury bills will be
acceptable at maturity value to secure deposits of public moneys; they wiU not bear the
circulation privilege. The Secretary of the Treasury, in his discretion, when inviting
tenders for Treasury bills, may provide that Treasury bills of any series will be acceptable at maturity value, whether at or before maturity, under such rules and regulations
as he shall prescribe or approve, in payment of income and profits taxes payable under
the provisions of the Internal Revenue Code. Any Treasury bills which by the terms of
their issue may be accepted in payment of income and profits taxes may be surrendered
to any Federal Reserve Bank or branch, acting as fiscal agent of the United States, fifteen
days or less before the date on which the taxes become due. The Federal Reserve Bank
or branch will issue receipts to tbs owners showing the face amount of the bills so surrendered. These receipts may be submitted in lieu of the bills on or before the specified
tax payment dates to the District Director of Internal Revenue, with the owners* tax returns. Notes secured by Treasury btUs a re eligible for discount or rediscount at Federal
Reserve Banks by member banks, as are notes secured by bonds and notes of the United
States, under the provisions of Section 13 of the Federal Reserve Act. They will be
acceptable at maturity, but not before, in payment of interest or of principal on account
of obligations of foreign governments held by the United States.
Sec. 309.6 Public notice of offer ing.--When lireasury biUs are to be offered, tenders
therefor will be invited through public notice given by the Secretary of the Treasury.
Such public notices may be issued by the Secretary of the Treasury in the name of
**the Treasury Department** with the same force and effect as if issued in the name
of the Secretary of the Tireasury,. In such notice there will be set forth the amount of
Treasury bills for which tenders are then invited, the date of issue, the date or dates
when such bills will become due and payable, the date and closing hour for the receipt
of tenders at the Federal Reserve Banks and branches, and the date on which payment
for accepted tenders must be made or completed.
Sec. 309.7 Tenders; submission through Federal Reserve Banks.—Tenders in response to any such public notice will be received only at the Federal Reserve Banks,
or branches thereof, and unless received before the time fixed for closing will be disregarded. Tenders will not be received at the Treasury Department. Each tender must
be for an amount in an even multiple of $ 1,000 (maturity value). In the case of competitive
tenders the price or prices offered by the bidder for the amount or amounts (at maturity
value) applied for must be stated» and must be expressed on the basis of 100, with not
more than three decimals, e. g., 99.925. Fractions may not be used.
Sec. 309.8 Tenders; when cash deposit is required.—Tenders should be submitted
on the printed forms and forwarded in the special envelopes which wiU be supplied on
application to any Federal Reserve Bank, or branch. If a special envelope is not available, the inscription "Tender for Treasury Bills** should be placed on the envelope
used. The instructions of the Federal Reserve Banks with respect to the submission
EXHIBITS
193
of tenders should be observed. Others than banking institutions will not be permitted
to submit tenders etxcept for their own account. Tenders from incorporated banks and
trust companies, and from responsible and recognized dealers in investment securities
will be received without deposit. Tenders from all others must be accompanied by a
payment of such percent of the face amount of the Treasury bills applied for as the
Secretary of the Treasury may from time to time prescribe: Provided, however, That
such deposit will not be required if the tender is accompanied by an express guaranty
of payment in full by an incorporated bank or trust company. Forfeiture of the prescribed payment may be declared by the Secretary ofthe Treasury, if payment is not
completed, in the case of accepted tenders, on the prescribed date.
Sec. 309.9 Tenders; acceptance by the Secretary of the Treasury.—At the time fixed
for closing, as specified in the public notice, all tenders received by the Federal
Reserve Banks, or branches, will be opened. The Secretary of the Treasury will determine the acceptable prices offered and will make public announcement thereof. Those
submitting tenders will be advised by the Federal Reserve Banks of the acceptance or
rejection thereof, and payment on accepted tenders must be made or completed on the
date specified in the public notice.
Sec. 309.10 Tenders; reservation of right to rejecto--In considering the acceptance
of tenders, the hiighest prices offered will be* accepted in full down to the amount
required, and if the same price appears in two or more tenders and it is necessary
to accept only a part of the amount offered at such price, the amount accepted at such
price will be prorated in accordance with therespective amounts applied for. However,
the Secretary of thu Treasury expressly reserves the right on any occasion to accept
noncompetitive tenders entered in accordance with specific offerings, to reject any
or all tenders or parts of tenders, and to award less than the amount applied for; and
any action he may take in any such respect or respects shall be finaL
Sec, 309.11 Tenders; payment of accepted tenders.--Settlement for accepted tenders
in accordance with the bids must be made or completed at the appropriate Federal
Reserve Bank in cash or other immediately available funds on or before the date
specified, except tliat the Secretary of the Treasury, in his discretion, when inviting
tenders for Treasury bUls, may provide: (a) that any qualified depositary may make
such settlement by credit, on behalf of itself and its customers, up to any amount for
which it shall be qualified in excess of existing deposits, when so notified by the Federal
Reserve Bank of its district or (b) that such settlement may be made in maturing
Treasury bills accepted in exchange. Whenever the Secretary provides for settlement
in maturing Treasury bills, cash adjustments wiQ be made for differences between
the par value of the maturing bills and the issue price of the new bills.
Sec. 309.12 Relief on account of loss, theft,or destruction, etc.--(a) Relief on account
of the loss, theft, destruction, mutilation, or defacement of Treasury biUs may be given
only under the authority of, and subject to the conditions set forth in section 8 of the act
of July 8,1937 (50 Sitat. 481), as amended (31 U. S. C 738a) and the regulations pursuant
thereto in Treasury Department Circular No. 300 insofar as applicable.
(b) In case of the loss, theft, destruction, mutilation, or defacement of Treasury
bills, immediate advice, with a Ml description ofthe bill or bills involved, should be
sent to the Division of Loans and Currency, Treasury Department, Washington 25,
D. C , either direct or through any Federal Reserve Bank, and, if relief under the
statutes may be given, instructions and necessary blank forms will be fumished.
Sec. 309,13 Functions of Federal Reserve Banks.—Federal Reserve Banks, as fiscal
agents of the United States, are authorized to perform all such acts as may be necessary
to carry out the provisions of this circular and of any public notice or notices issued
in connection with any offering of Treasury bills.
Sec, 309.14 Reservation as to terms of circular.—The SecretaryoftheTreasury
reserves the right Ifurther to amend, supplement, revise, or withdraw all or any of the
provisions of this circular at any time, or from time to time.
A. N. Overby,
Acting Secretary of the Treasury.
194
1954 REPORT OF THE SECRETARY OF THE TREASURY
TREASURY SAVINGS NOTES AND UNITED STATES
SAV][NGS BONDS
Exhibit 19. - - F i r s t amendment, September 25, 1953, to
Department Circular No, 922, withdrawal of Treasury
savings notes of Series B.
TREASURY DEPARTMENT,
Washington, September 25, 1953.
WITHDRAWAL OF SERIES B NOTES
The sale of Treasury savings notes. Series B, offered under Department Circular
No. 922, dated May 11, 1953, is hereby terminated at the close ofbusiness September
25, 1953. Applications placed in the mails addressed to a Federal Reserve Bank or
branch or the Treasurer of the United States, or authorizations to banking institutions
by their customers requesting that applications be submitted on their behalf, and postmarked prior to seven o*clock p. m., eastern daylight saving time, on that date, and
those received from depositaries qualified pursuant to the provisions of Treasury
Department Circular No. 92, Revised, as amended, for which payment is made by
credit before the close of business on that date in accordance with Section 334.12 of
Department Circular No. 922, will be considered as having been received before the
sale of the notes terminated.
M. B. FOLSOM,
Acting Secretary of the Treasury.
Exhibit 20. —Offering of Treasury savings notes of
Series C
[Department Circular No, 931, Public Debt]
TREASURY DEPARTMENT,
Washington, October 1, 1953,
SUBPART A: OFFERING OF NOTES
Sec, 335.1. The Secretary of the Treasury, pursuant to the authority of the Second
Liberty Bond Act, as amended, offers for sale to the people of the United States, at par
and accrued interest as provided in section 335.11 hereof, an issue of notes of the
United States designated Treasury savings notes. Series C, which notes, if inscribed
in the name of a Federal taxpayer, will be receivable as hereinafter provided at par
and accrued interest in payment ofincome, estate, and gift taxes imposed by the Internal
Revenue Code, or laws amendatory or supplementary thereto. The notes may also be
redeemed for cash at par and accrued interest, with certain exceptions applicable to
banking institutions, as provided in section 335.15 hereof.
Sec. 335.2. Duration of offer.--The sale ofnotes of Series C offered by this circular
wiQ begin on October 1, 1953, and wiQ continue until terminated by the Secretary of the
Treasury.
Sec. 335.3. Definitions,--(a) The word "month** as used herein means the period
from and including the 15th day of any one calendar month to but not including the 15th
day of the next succeeding month.
(b) The words "issue date*' mean the date as of which a note is issued and will always
be the 15th day of a calendar month.
(c) The words "interest accrual date'* or "accrual date" mean the date upon which a
month's interest accrues on a note, the first accrual date being the 15th day of the
calendar month next following the issue date.
EXHIBITS
195
SUBPART B: DESCRIPTION OF NOTES
Sec. 335.4. General.--Treasury savings notes. Series C, will in each instance be
dated as of the 15th day of a calendar month. The issue date will be determined by the
day of the month on which payment at par and accrued interest, if any, is received
and credited by an agency authorized to issue the notes. For example, payment received
and credited on any day during the period from and including October 1, 1953, to and
including October 14, 1953, would result in the issue of notes dated September 15, 1953.
They will mature two years from that date and may not be caUed by the Secretary of
the lireasury for redemption before maturity. All notes bearing issue dates within any
one calendar year sliall constitute a separate series indicated by the letter " C " followed by the year of maturity. At the time of issue the issuing agency will inscribe
on the face of each note the name and address of the owner, will enter the issue date
and will imprint its dating stamp (with current date). The notes wiQ be issued in
denominations of $100, $500, $1,000, $5,000, $10,000, $100,000, $500,000, and
$1,000,000. Exchange of authorized denominations from higher to lower, but not from
lower to higher, may be arranged at any agency that issues Treasury savings notes.
Series C.
Sec. 335.5. Acceptance for taxes or cash redemption.--If inscribed in the name of
an individual, corporation, or other entity paying income, estate, or gift taxes imposed
under the Internal Revenue Code, or laws amendatory or supplementary thereto, the
notes wiU be receivable, subject to the provisions of section 335.14 of this circular,
at par and accrued interest, ia payment of such income, estate, or gift taxes assessed
against the owner or Ms estate. If not presented in payment of taxes, or if not inscribed
in the name of a taxpayer liable to the above-described taxes, and subject to the provisions of section 335.15 of this circular, the notes will be payable at maturity, or
at the owner *s option and request they will be redeemable before maturity at par and
accrued interest.
Sec. 335.6. Interest.--Interest on each $1,000 principal amount of Treasury savings
notes. Series C, wiU accrue monthly on the 15th calendar day of each month after the
issue date on a graduated scale. Interest accruals on the notes first issued hereunder
shall be as follows:
First to sixth months, inclusive
Seventh to twelfth months, inclusive
Thirteenth to eighteenth months, inclusive
Nineteenth to twenty-fourth months, inclusive
,
$1.30
1,90
„.
2.10
2.20
each
each
each
each
month
month
month
month
The Secretary of the Treasury may at any time terminate the issuance of notes hereunder with interest accruals as provided above, and may at any time, or from time to
time, authorize the issuance of additional notes hereunder with such other interest
accruals as he may prescribe. The table appended to this circular shows for notes of
each denomination, for each consecutive month after issue date to maturity, (a) the
amount of interest accrual, (b) the principal amount of the note with accrued uiterest
(cumulative) added, and (c) the approximate investment yields. Subject to the provisions
of sections 335.14 and 335,15 hereof, when Treasury savings notes. Series C, are to
be paid on an interest accrual date, the payment wiQ include interest accruing on that
date; otherwise, interest will be paid only to the interest accrual date next preceding
the date of payment. Interest wUl be paid only with the principal amount, and will not
accrue beyond the maturity date of the note.
Sec. 335.7. Forirus of inscription.—Treasury savings notes. Series C, may be inscribed in the name of an individual, corporation, unincorporated association or society,
or a fiduciary (including trustees under a duly established trust where the notes would
not be held as security for the performance of a duty or obligation), whether or not
the inscribed owner is subject to taxation under the Internal Revenue Code, or laws
amendatory or supplementary thereto. They may also be inscribed in the name of a
town, city, county, or State or other governmental body and ui the name of a partnership.
196
1954 REPORT OF THE SECRETARY OF THE TREASURY
but notes in the name of a partnership are not acceptable in payment of taxes, since a
partnership is not a taxpaying entity under the Internal Revenue Code. The notes will
not be inscribed in the names of two or more persons as joint owners or coowners;
or in the name of a public officer, whether or not named as trustee, where the notes
would in effect be held as security for the performance of a duty or obligation.
Sec. 335,8, Restrictions on transfer.--Except as otherwise specifically provided
herein, . the notes may not be transferred, reissued, hypothecated, or pledged as
security, may not be paid to any person other than the owner, and may not be accepted
in payment of Federal income, estate, or gift taxes assessed against any person
other than the owner. The notes will not be acceptable to secure deposits of public
moneys.
Sec. 335.9. Taxation. —Income derived from the notes shall be subject to all taxes
now or hereafter imposed under the Internal Revenue Code or laws amendatory or
supplementary thereto. The notes shall be subject to estate, inheritance, gifti or other
excise taxes, whether Federal or State, but shaU 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.
SUBPART C: PURCHASE OF NOTES
Sec. 335.10. Official agencies.--In addition to the Treasury Department, the Federal
Reserve Banks and their branches are hereby designated agencies for the issue and
redemption of Treasury savings notes. Series C. The Secretary ofthe Treasury, from
time to time, in his discretion, may designate other agencies for the issue of the
notes, or for accepting applications therefor, or for making payments on account of the
redemption thereof.
Sec, 335,11, Applications and payment.--Applications wiU be received by the Federal
Reserve Banks and branches and by the Treasurer of the United States, Washington,
D. C. Banking institutions generally may submit applications for the account of customers but only the Federal Reserve Banks, their branches and the Treasury Department are authorized to act as official agencies. The use of an official application form
is desirable but not necessary. Such forms may be obtained upon request from any
Federal Reserve Bank or branch or the Treasurer of the United States. Every application must be accompanied by payment in full, at par and accrued interest, if any. The
amount of accrued interest payable by the purchaser wiU be computed at the rate at
which interest accrues on the notes ($1.30 per month per $1,000 par amount) for the
actual number of days from but not including the issue date to and including the date
funds a r e credited to the account of the Treasurer ofthe United States. For example,
if funds are credited on the 20th day of January the issue date will be January 15, and
five days* accrued interest must be paid by the purchaser. If collection is delayed so
that credit is not given until February 15, the issue date will be February 15, and no
accrued interest will be collectible. One day's accrued interest for a thirty-one day
period is $0.04194 per $1,000, for a thirty day period $0.04333 per $1,000, for a
twenty-nine day period $0.04483 per $1,000, and for a twenty-eight day period $0.04643
per $ 1,000. Any form of exchange, including personal checks, wiQ be accepted, subject
to collection, and should be drawn to the order of the Federal Reserve Bank or the
Treasurer of the United States, as payee, as the case may be. Any depositary qualified pursuant to the provisions of Treasury Department Circular No. 92, Revised, as
amended, wQl be permitted to make payment by credit for notes applied for on behalf
of itself or its customers up to any amount for which it shall be qualified in excess of
existing deposits.
Sec. 335.12. Reservations.--The Secretary of the Treasury reserves the right to
reject any application in whole or in part, and to refuse to issue or permit to be issued
hereunder any notes in any case or in any class or classes of cases if he deems such
action to be in the public interest, and his action in any such respect shall be final. If
an application is rejected, in whole or in part, any payment received therefor wUl
be refunded.
EXHIBITS
197
Sec. 335.13. Delivery of notes.--Upon acceptance of a full-paid application, notes
will be duly inscribed and, unless delivered in person, wiQ be delivered, at the risk
and expense of the United States at the address given by the purchaser, by maQ, but
only within the United States, its Territories and island possessions, and the Canal
Zone. No deliveries elsewhere will be made.
SUBP^ilT D: PRESENTATION IN PAYMENT OF TAXES
Sec. 335.14. At any time after two months from the issue date, during such time and
under such rules and regulations as the Commissioner of Internal Revenue, with the
approval of the Secretary of the Treasury, may prescribe, notes issued hereunder in
the name of a Federal taxpayer, may be presented by such taxpayer, his agent or his
estate for credit against any income (current and back, personal and corporation taxes,
and excess profits taxes) or any estate or gift taxes (current and back) imposed by
the Internal Revenue Code, or laws amendatory or supplementary thereto, assessed
against the inscribed owner or his estate. For example, a note dated January 15 may
be presented for creidit against taxes due March 15. The notes will be receivable by
the District Director of Internal Revenue at par and accrued interest to the day (but
no accrual beyond maturity) when the taxes are due, if such day falls on the 15th day
of a calendar month, whether the notes are received on or before that day. If the taxes
are due on any other day of the month than the 15th, accrued interest wQl be credited
to the accrual date next preceding the day when the taxes are due. Notes are receivable
only in payment of taxes equal to or exceeding the entire value of the notes, including
accrued interest. The; notes may be forwarded to the District Director at the risk and
expense of the owner and, for his protection, should be forwarded by registered maQ,
if not presented in i^erson. The notes, may also be deposited with a Federal Reserve
Bank or branch and a receipt obtained therefor which may be forwarded to the District
Director in lieu of the notes.
SUBPART E: CASH REDEMPTION AT OR BEFORE MATURITY
Sec. 335.15. Generjil.-^-Any Treasury savings note, Series C, not presented in payment of taxes wUl be paid at maturity, or, at the option and request of the owner, and
without advance notice, will be redeemed before maturity at any time after four months
from the issue date. For example, a note dated January 15 may be redeemed for cash
on or after May 15. L redemption prior to maturity is requested on an interest accrual
f
date the redemption will include interest accruing on that date, otherwise redemption
will be at par and accrued interest to the interest accrual date next preceding the
redemption date, except in the case of a note inscribed ui the name of a bank that
accepts demand deposits, in which case payment, whether ator before maturity, will
be made only at par, with a refund of any accrued interest which may have been paid
at the time of purchase of the note. If a note is acquired by a banking institution through
forfeiture of a loan, payment will be made at par and the accrued interest payable as
of the date of acquisition.
Sec. 335.16. Execution of request for pavment.--The owner in whose name the note
is inscribed must appear before one of the officers authorized by the Secretary of the
Treasury to wimess and certify requests for payment, establish his identity, and in
the presence of such officer sign and complete the request for payment appearing on
the back of the note. After the request for payment has been executed, the witnessing
officer should execute the certificate provided for his use.
Sec. 335.17. Officers authorized to certify requests for payment.--AU officers authorized to certify requests for payment of United States savings bonds, as set forth
in Treasury Department Circular No. 530, Seventh Revision, as amended, are hereby
authorized to certify requests for cash redemption of Treasury savings notes issued
under this circular. Such officers include, among others. United States postmasters,
certain other post office officials, officers of all banks and trust companies incorporated
in the United States or its Territories, including officers at branches thereof, and
commissioned and warrant officers of the Armed Forces of the United States.
198
1954 REPORT OF THE SECRETARY OF THE TREASURY
Sec. 335.18. Presentation and surrender.—Notes bearing properly executed requests
for payment must be presented and surrendered to any Federal Reserve Bank or branch
or to the Treasurer of the United States, Washington 25, D, C , at the expense and
risk of the owner. For the owner*s protection, notes should be forwarded by registered
maQ, if not presented in person.
Sec. 335.19. Partial redemption.--Partial cash redemption of a note, corresponding
to an authorized denomination, may be made in the same manner as fiill cash redemption, appropriate changes being made in the request for payment. In case of partial
redemption of a note, the remainder will be reissued in the same name and with the
same issue date as the note surrendered.
Sec. 335.20. Payment.--Payment of any note, either at maturity or on redemption
before maturity, will be made by any FederalReserve Bank or branch or the Treasurer
of the United States, following clearance with the agency of issue, which wQl be obtained
by the agency to which the note is surrendered. Payment will be made by check drawn
to the order of the owner, and mailed to the address given in his request for payment,
or by credit in any account maintained by a banking institution with the Federal Reserve
Bank of its district.
SUBPART F : PAYMENT OR REISSUE TO OTHER THAN INSCRIBED OWNER
Sec. 335.21, Presentation and surrender,--A note may be paid or reissued in accordance with any of the provisions of this subpart only upon the presentation and surrender
of the note at the risk and expense of the owner to the issuing agency, accompanied by
an appropriate request for the particular transaction.
Sec. 335.22. Authorized transfers.—
(a) Between husband and wife.--A note inscribed in the name of a married man may
be reissued in the name of his wife, and a note inscribed in the name of a married
woman may be reissued in the name of her husband.
(b) Between affiliated corporations.—A note inscribed in the name of a parent corporation, which is hereby defined as a corporation owning more than 50 percent of the
stock, with voting power, of another corporation, may be reissued in the name of a
subsidiary, and a note registered in the name of a subsidiary may be reissued in the
name of the parent corporation.
Sec. 335.23. Authorized pledge.--A note may be pledged as coUateral for a loan
from a banking institution, and if title thereto is acquired by the institution because
of default in the payment of the loan, the notes will be redeemed at par and accrued
interest to the interest accrual date next preceding the date of such acquisition, unless
acquired on an interest accrual date, in which case redemption will be made at par
and accrued interest to that date. Proof of the date of acquisition must be fumished,
and payment must be requested by the pledgee under a power of attorney given by the
pledgor in whose name the note is inscribed. The note will not be transferred to the
Sec. 335.24. Payment to represoitatives of deceased or incompetent owners and
payment or reissue to heirs or legatees of deceased owners.--In case of the death or
disability of an individual owner, if the notes are not xo be presented in payment of
taxes, payment will be made to the duly constituted representative of his estate, or
they may be paid or reissued to one or more of his heirs or legatees upon satisfactory
proof of their right; but no reissue wiU be made in the names of two or more persons
jointiy or as coowners.
Sec, 335,25. Payment or reissue to successors of corporations, unincorporated associations, or partnerships,--If a corporation or unincorporated body in whose name
notes are inscribed is dissolved, consolidated, merged or otherwise changes its
organization, the notes may be paid to, or reissued in the name of, those persons or
organizations lawfuUy entitied to the assets of such corporation or body by reason of
such change in organization.
Sec. 335.26. Payment to representatives of bankrupt or insolvent owners.—If an
owner of notes is declared bankrupt or insolvent, payment, but not reissue, will be
EXHIBITS
199
made to the duly qualified trustee, receiver, or similar representative if the notes are
submitted with satisfactory proof of his appointment and qualification.
Sec. 335.27. Payment as a result of judicial proceedings.--Payment, but not reissue,
will be made as a result of judicial proceedings in a court of competent jurisdiction,
if the notes are subnriitted with proper proof of such proceedings and their finality.
Sec. 335.28. Instructions and information.--Before executing the request for payment
or submitting the notes under the provisions of this subpart, instructions should be
obtained from a Federal Reserve Bank or branch or from the Treasury Department,
Division of Loans and Currency, Washington 25, D, C.
SUBPART G: GENERAL PROVISIONS
Sec. 335.29. Regulations. - -Except as provided in this circular, the notes issued
hereunder will be subject to the general regulations of the Treasury Department, now
or hereafter p r e s c r i W , governing bonds and notes ofthe United States; the regulations
currentiy in force are contained in Department Circular No, 300, as amended.
Sec. 335.30. Loss, theft, or destruction,--In case of the loss, theft, or destruction
of a savings note immediate notice (which should include a full description of the note)
should be given the agency which issued the note and instructions should be requested
as to the procedure necessary to secure a duplicate.
Sec. 335.31. Fiscal agents.—Federal Reserve Banks and their branches, as fiscal
agents of the United States, are authorized to perform such services or acts as may
be appropriate and necessary under the provisions of this circular and under any
instructions given by the Secretary of the lireasury, and they may issue interim
receipts pending delivery of the definitive notes.
Sec. 335.32. Amendments.- -The Secretary of the Treasury may at any time or from
time to time supplement, or amend the terms ofthis circular, or of any amendments
or supplements theretto, and may at any time or from time to time prescribe amendatory
rules and regulations governing the offering of the notes, information as to which wiU
promptiy be furnished to the Federal Reserve Banks.
G. M. Humphrey,
Secretary of the Treasury.
Treasury savings notes--Series C
t>J
o
o
Table of tax-payment or redemption values and investment yields on notes issued from October 1, 1953 until further notice
The table below shows for each month from issue date to maturity date the amount of interest accrual; the principal amount with accrued interest added, for notes of
each denomination; the approximate investment yield on the par value from issue date to the 15th of each month following the issue date; and the approximate investment
yield on the current redemption value from the 15th of the month indicated to the maturity date.
$100.00
Amount of interest accrual each
month after issue month
Interest accrues at rate
per $1,000 par amount:
First month
Second month
Third month
Fourth month
Fifth month
Sixth month
Interest accrues at rate
per $1,000 par amount:
Seventh month
Eighth month
Ninth month
Tenth month
Eleventh month
Twelfth month
Interest accrues at rate
per $1,000 par amount:
Thirteenth month
Fourteenth month
Fifteenth month
Sixteenth month
Seventeenth month
Eighteenth month
Interest accrues at rate
per $1,000 par amount:
Nineteenth month
Twentieth month
Twenty-first month
Twenty-second month
Twenty-third month
MATURITY
$500.00
$1,000.00 $5,000.00
$10,000.00
$100,000.00
$500,000.00
$1,000,000.00
of $1.30 per month
$100.13
100.26
100.39
100.52
100.65
100.78
•
$500.65 $1,001.30 $5,006.50 $10,013.00
10,026.00
501.30 .1,002.60
5,013.00
501.95
5,019.50 10,039.00
1,003.90
502.60
5,026.00 10,052.00
1,005.20
503.25
1,006.50 ' 5,032.50 10,065.00
503.90
1,007.80 5,039.00 10,078.00
Approximate
investment
yield on
current
tax-payment
or redemption values
from beginning of
each monthly period
to maturity
Percent
Tax-payment or redemption values during each monthly period after issue month^
Approximate
investment
yield on par
value from
issue date to
beginning of
each monthly period
thereafter
Percent
$100,130.00 $500,650.00 $1,001,300.00
1,002,600.00
100,260.00
501,300.00
1,003,900.00
100,390.00
501,950.00
1,005,200.00
100,520.00
502,600.00
1,006,500.00
100,650.00
503,250.00
1,007,800.00
100,780.00
503,900.00
1.56
1.56
1.56
1.56
1.56
1.56
2 2.21
2.2A
2.21
2.31
2.34
2.38
2.43
of $1.90 per month'
100.97
101.16
101.35
101.54
101.73
101.92
504.85
505.80
506.75
507.70
508.65
509.60
1,009.70
1,011.60
1,013.50
1,015.40
1,017.30
1,019.20
5,048.50
5,058.00
5,067.50
5,077.00
5,086.50
5,096.00
10,097.00
10,116.00
10,135.00
10,154.00
10,173.00
10,192.00
100,970.00
101,160.00
101,350,00
101,540.00
101,730.00
101,920.00
504,850.00
505,800.00
506,750.00
507,700.00
508,650.00
509,600.00
1,009,700.00
1,011,600.00
1,013,500.00
1,015,400.00
1,017,300.00
1,019,200.00
1.66
1.7-;
1.80
1.84
1.88
1.91
2.44
2.45
2.46
2.48
2.50
2.52
102.13
102.34
102.55
102.76
102.97
103.18
510.65
511.70
512.75
513.80
514.85
515.90
1,021.30
1,023.40
1,025.50
1,027.60
1,029.70
1,031.80
5,106.50
5,117.00
5,127.50
5,138.00
5,148.50
5,159.00
10,213.00
10,234.00
10,255.00
10,276.00
10,297.00
10,318.00
102,130.00
102,340.00
102,550.00
102,760.00
102,970.00
103,180.00
^10,650.00
511,700.00
512,750.00
513,800.00
514,850.00
.515,900.00
1,021,300.00
1,023,400.00
1,025,500.00
1,027,600.00
1,029,700.00
1,031,800.00
1.95
1.99
2.02
2.05
2.08
2.10
2.52
2.52
2.53
2.53
2.54
2.56
103.40
103.62
103.84
104.06
104.28
104.50
517.00
518.10
519.20
520.30
521.40
522.50
1,034.00
1,036.20
1,038.40
1,040.60
1,042.80
•1,045.00
5,170.00
5,181.00
5,192.00
5,203.00
5,214.00
5,225.00
10,340.00
10,362.00
10,384.00
10,406.00
10,428.00
10,450.00
103,400.00
103,620.00
103,840.00
104,060.00
104,280.00
104,500.00
517,000.00
518,100.00
519,200,00
520,300.00
521,400.00
522,500.00
1,034,000.00
1,036,200.00
1,038,400.00
1,040,600.00
1,042,800.00
1,045,000.00
2.12
2.15
2.16
2.18
2.20
2.21
2.56
2.55
2.55
2.55
2.55
of $2.10 per month
•
PO
s
?
o
H
X
GO
n
tn
H
>
o
of $2.20 per month
NOTE.—The word "month" as used in this table means the period from and including the 15th day of any one calendar month to but not including the 15th day of the
next succeeding month.
^ Not acceptable in payment of taxes until after the second month from issue date, and not redeemable for cash until after the fourth month from issue date.
2 Approximate investment yield for entire period from issue date to maturity.
H
X
m
s
G
EXHIBITS
201
Exhibit 21.—Suspension of sale of Treasury savings notes
of Series C (press release of October 23, 1953)
The Treasury today announced that sale of Series C Treasury savings notes is
suspended as of 7:00 p. m., eastern standard time, Friday, October 23, 1953.
In answer to press queries regarding the suspension of the sale of Series C savings
notes today, the Treaisury said: The suspension is due to two related reasons.
The first is that determining the amount of the Treasury financing to be decided next
week would be difficult in view of the uncertainties of future daily sales of Treasury
savings notes under present conditions. Second the savings note, being one of the
•*open windows,'* could create a problem in connection with the debt limit on the
basis of present sales.
Exhibit 22.--Exchange of Series F and G savings bonds at
maturity for other series of savings bonds (press r e lease of December 11, 1953)
The Treasury today invited holders of the Series F and G savings bonds which will
begin to mature in January to exchange them at maturity for other series of savings
bonds.
Individual owners of the Series F and G bonds maturing beginning next month may
make reinvestment in Series E and H bonds up to the $20,000 annual limits on each
of these series. Not only individuals, but any other holders of these maturing bonds
may reinvest in Series J and K bonds, which have a combined annual limitation of
$200,000 issue price, These transactions will be handled at Federal Reserve Banks
and branches and at the Office of the Treasurer of the United States in Washington.
Holders of the maturing bonds may submit them, for either exchange or cash payment,
direct or through their banks after having the request for payment certified, which
can be done at any bank or post office.
In the case of Series G bonds, the final interest due on the maturity date will be paid
with the principal. No interest will accrue on bonds of either Series F or G after
maturity. In order to avoid loss of interest on their investment, holders should submit
the bonds from twenty to thirty days in advance of their maturity dates, whether for
cash redemption or for new bonds.
The Treasury is not offering at this time to holders of these maturing bonds any
Treasury issue other than savings bonds.
Exhibit 23.--Withdrawal of United States savings bonds
from sale at local post offices in communities where
other savings bond agents provide adequate facilities
(press release of December 29, 1953)
As a further step towards reducing costs of operation, the Treasury is withdrawing
United States savings bonds from sale at local post offices in communities where other
savings bonds agents such as banks, other financial institutions and business firms
with payroll savings plans provide adequate facilities.
Savings bond sales by post offices will be continued in those communities where
issuing agents such as banks or savings and loan associations are not locally available.
2 02
1954 REPORT OF THE SECRETARY OF THE TREASURY
The new procedure was worked out in discussions between representatives of the
Treasury and Post Office Departments.
Post offices will continue to sell United States savings stamps and also will continue
to provide information as to where savings bonds may be purchased.
The Treasury paid tribute to the post offices of the country for pioneering in the
inauguration and development of the savings bond program since 1935 when savings
bonds could be bought only at post offices or by direct mail. In 1941 financial institutions and other organizations came in to serve as volunteer agents for bond sales.
There are now more than 20,000 sales agencies other than post offices where bonds
may be purchased by the public. Today these volunteer agencies account for more
than 93 percent of the nearly $4^ billion worth of bonds Americans buy every year.
Exhibit 24.--Offset printing of $25 denomination Series E
savings bonds (press release of February 13, 1954)
The Treasury Department announced today a permanent change-over to offset
printing in the production of Series E savings bonds of the $ 25 denomination, at an
estimated yearly saving in excess of $400,000.
Engraved printing of higher denomination E bonds and all Series H, J, and K bonds,
as well as all marketable bonds, will be continued.
Application of the offset printing method to savings bonds production was tested
at the Bureau of Engraving and Printing in January, and the results carefully analyzed.
It was found that it would permit maximum production of about 480,000 bonds per
press per 8-hour day, compared with about 28,000 for the engraving process. This
program will require a reduction in plate printers and other employees, totaling about
40 persons.
The United States Secret Service concluded that no counterfeiting problem would be
involved in adoption of the offset plan in view of the conditions under which savings
bonds are issued and redeemed. Savings bonds are not transferable, and the Treasury
records detailed information concerning each bond sold, such as the name and address
of the buyer, serial number, date of issue, and name of the issuing agent. Holders of
savings bonds must submit them to qualified paying agents for redemption. The holders
are required to identify themselves to these agents.
In the unlikely event that counterfeit savings bonds are presented to a paying agent
and escape detection and payment is made to the owners named on the bonds, the
agent will not be held liable for the erroneous payments provided the regular, required
payment procedure has been observed.
The Bureau will fill future vacancies in plate printer positions by reinstating, in the
order of their seniority as apprentices, members of the Bureau's former apprentice
training program before hiring plate printers from the outside. The training program
was ended last July because engineering improvements in the Bureau made it unlikely
that there would be work for the 70 apprentices participating in it. Other positions in
the Bureau were offered to the 70 apprentices and all accepted. The policy of reinstating them as apprentice plate printers will apply to all former apprentices still
in the Bureau's employ.
EXHIBITS
203
Exhibit 2 5 . - - F i r s t amendment, February 23, 1954, to
Department Circular No. 653, Third Revision, authorizing issuance of Series E savings bonds to trustees of
an employees' savings plan, and authorizing an additional denomination of $100,000 of Series E savings
bonds.
TREASURY DEPARTMENT,
Washington, February 23, 1954.
Department Circular No. 653, Third Revision (31 CFE^ 1952 Supp., 316), is amended,
effective as of January 1, 1954, to revise Sections 316.6, 316.7, 316.10 (a), and 316.18
and to add Section 316.6a to read as follows:
Sec. 316.6 Registration--(a) Authorized forms.--Bonds of Series E maybe registered
only in the names of natural persons (that is, individuals), whether adults or minors,
in their own right, as follow^: (1) In the name of one person; (2) in the names of two
(but not more than two) persons, as coowners; and (3) in the name of one person payable on death to one (but not more than one) other designated person, except that the
Treasurer of the United States may be designated as coowner or beneficiary, and
except further that such bonds may be registered in the name and title of the trustee
or trustees of an employees' savings plan as provided in section 316.6a. Sections
316.2 and 316.9 hereof are hereby amended to authorize the issuance of Series E
bonds in the denomination of $100,000 (maturity value) at the issue price of
$75,000. Full information regarding authorized forms of registration and rights
thereunder will be found in the regulations currently in force governing United States
savings bonds.
(b) Restrictions. - -Only residents of the United States (which for the purposes of this
section shall include the Commonwealth of Puerto Rico, the Territories, insular
possessions, and the Canal Zone), citizens of the United States temporarily residing
abroad, and nonresident aliens employed in the United States by the Federal Government or an agency thereof may be named as owners, coowners, or designated beneficiaries of bonds of Series E issued pursuant to this circular, or of authorized reissues
thereof, except that such persons may name as coowners or beneficiaries of their
bonds American citizens permanently residing abroad or nonresident aliens who are
not residents of are^is with respect to which the Treasury Department has restricted
or regulated the delivery of checks drawn against funds of the United States, or any
agency or instrumentality thereof. ^ American citizens permanently residing abroad
and nonresident aliens who become entitled to bonds under the regulations governing
United States savings bonds,^ by right of survivorship or otherwise, will not have
the right to reissue but may hold the bonds without change of registration with the
right to redeem them at any time in accordance with their terms.
Sec. 316.6a Registration in name and title of the trustee or trustees of an employees'
savings plan.
(a) Definition of plan and conditions of eligibility.--Bonds of Series E may be registered in the name and title of the trustee or trustees of an employees' savings plan
or any similar trust for the accumulation of employees' savings established by the
employer for the exclusive and irrevocable benefit of his employees or their beneficiaries which affords employees the means of making regular savings from their
wages through payroll deductions, provides for employer contributions to be added
to such savings, and provides in effect that:
^See Department Circular No. 655 as amended (31 CFR 211).
^See Department Circular No. 530, current revision.
204
1954 REPORT OF THE SECRETARY OF THE TREASURY
(1) The entire assets thereof must be credited to the individual accounts of participating employees and assets credited to the account of an employee may be distributed
only to him or his beneficiary, except as otherwise provided herein.
(2) Bonds of Series E may be purchased only with assets credited to the accounts of
participating employees and only if the amount taken from any account at any time for
that purpose is equal to the purchase price of a bond or bonds in an authorized denomination or denominations, and shares therein are credited to the accounts of the
individuals from which the purchase price thereof was derived, in amounts corresponding with their shares. For example, if $37.50 credited to the account of John
Jones is commingled with funds credited to the accounts of other eniployees to make
a total of $7,500, with which a bond of Series E in the denomination of $10,000 (maturity value) is purchased in June 1954 and registered in the name and title of the
trustee or trustees, the plan must provide, in effect, that John Jones'account shall
be credited to show that he is the owner of a bond of Series E in the denomination of
$50 (maturity value) bearing issue date of June 1, 1954.
(3) Each participating employee shall have an irrevocable right at any time to
demand and receive from the trustee or trustees all assets credited to his account,
or the value thereof, if he so prefers, without regard to any condition other than
the loss or suspension of the privilege of participating further in the plan, except
that a plan will not be deemed to be inconsistent herewith, if it limits or modifies
the exercise of any such right by providing that the employer's contribution does
pot vest absolutely until the employee shall have made contributions under the plan
in each of not more than sixty calendar months succeeding the month for which the
employer's contribution is made. Provided, however, that in any such exceptional
case the employee shall have the right to demand and receive cash in an amount
equal to the redemption value of all bonds of Series E credited to his account (see
(2)) less the amount of the employer's unvested contribution to the purchase price
thereof.
(4) Upon the death of an employee, his beneficiary shall have the absolute and
unconditional right to demand and receive from the trustee or trustees all assets
credited to the account of the employee, or the value thereof, if he so prefers.
(5) When settlement is made with an employee or his beneficiary with respect
to any bond of Series E registered in the name and title of the trustee or trustees
in which the employee has a share (see (2) hereof), the borid must be submitted for
redemption or reissue to the extent of such share; if an employee, or his beneficiary,
elects to receive distribution in kind, bonds bearing the same issue dates as those
credited to the employee's account will be reissued in the name of the distributee
to the extent to which he is entitled, in authorized denominations, in any authorized
form of registration, upon the request and certification of the trustee or trustees
in accordance with the provisions of the regulations governing United States savings
bonds.3
(b) Definitions of terms used in this section and related provisions.
(1) The term ''savings plan" includes any regulations issued under the plan
with regard to bonds of Series E; a copy of the plan and any such regulations,
together with a copy of the trust agreement certified by a trustee to be true
copies, must be submitted to the Federal Reserve Bank of the district in order to
establish the eligibility of the trustee or trustees to purchase such bonds under this
section.
(2) The term " a s s e t s " means all funds, including the employees' contributions
and the employer's contributions and assets purchased therewith as well as accretions
thereto, such as dividends on stock, the increment in value on bonds and all other
income; but, notwithstanding any other provision of this section, the right to demand
and receive "all a s s e t s " credited to the account of an employee shall not be construed
to require the distribution of assets in kind when it would not be possible or practicable
to make such distribution; for example, bonds of Series E may not be reissued in
3See Department Circular No. 530, current revision. Sec. 315,50 (a).
EXHIBITS
205
unauthorized denominations, and fractional shares of stock are not readily distributable
in kind.
(3) The term "beneficiary" means the person or persons, if any, designated by the
employee in accordance with the terms of the plan to receive the benefits of the trust
upon his death or the estate of the employee, and the t e r m ' ' d i s t r i b u t e e " means the
employee or his beneficiary.
Sec. 316.7. Limitations on holdings.
(a) General limitation. - - The amount of bonds of Series E originally issued during
the calendar year 1952 (and each calendar year thereafter) that may be held by any
one person at any one time is $20,000 (maturity value), except as provided in subsection (b) of this section.
(b) Special limitation applicable to trustees of employees' savings plans.--The
amount of bonds of Series E originally issued during each calendar year that may be
held by the trustee or trustees of an employees' savings plan (as described in section
316.6a) is $2,000 (maturity value) multiplied by the highest number of employees
participating in such plan at any time during the year in which the bonds are issued.
(c) Regulations. - - For full information concerning the limitations on and methods
of computing holdings, see the regulations currently in force governing United States
savings bonds.
Sec. 316.10. Purchase of bonds. * * *
(a) Over-the-counter for cash: (1) For individuals (natural persons) only (i) at
such incorporated banks, trust companies, and other agencies as have been duly
qualified as issuing agents, and (ii) at selected United States post offices; and (2) for
individuals (natural persons) or trustees of employees' savings plans (see section
316.6a) at Federal Reserve Banks and branches and at the Treasury Department,
Washington 25, D. C.
Sec. 316.18. Payment or redemption (in general).--A bond of Series E may be
redeemed at the option of the owner at any time after two months from the issue
date at the appropriate redemption value as shown in the tables of redemption values
at the end of this circular, table A for bonds (other than the $100,000 denomination)
dated on and after May 1, 1952, table B for those dated May 1, 1941, through April 1,
1942, and table C for those dated May 1, 1942, through April 1, 1952.* The redemption
values of bonds in the denomination of $100,000 (maturity value) dated on and after
January 1, 1954, will be equal to the total redemption values of ten $10,000 bonds
bearing the same issue dates (see table A).^ A bond of Series E in a denomination
higher than $25 (maturity value) may be redeemed in part but only in the am.ount of
an authorized denomination or multiple thereof. Payment of a bond of Series E will
be made upon presentation and surrender of the bond by the owner to authorized
paying agencies as follows:
(1) Federal Reserve Banks and branches and Treasurer of the United States,-Owners of bonds of Series E may obtain payment upon presentation of the bonds to
a Federal Reserve Bank or branch or to the Treasurer of the United States, Washington 25, D. C , with the requests for payment on the bonds duly executed and certified
in accordance with the provisions of the regulations governing savings bonds.
(2) Incorporated banks, trust companies, and other financial institutions,--An individual (natural person) whose name is inscribed on the face of a bond of Series E
either as owner or coowner in his own right may also present such bond (unless
marked "DUPLICATE ") to any incorporated bank or trust company or other financial
institution which is qualified as a paying agent under the provisions of Department
^Tables A, B, and C not printed here, were published on pp. 280-282 of the 1952 annual report.
SBonds of Series E in the denomination of $100,000 (maturity value) are available for
purchase only by trusteies of employees' savings plans.
339256 O - 55 - 15
206
1954 REPORT OF THE SECRETARY OF THE TREASURY
Circular No. 750 or any revision of or amendment thereto. If such bond is in order
for payment by the paying agent, the owner or coowner, upon establishing his identity
to the satisfaction of the paying agent and upon signing the request for payment and
adding his home or business address, may receive immediate payment of the current
redemption value.
A. N. Overby,
Acting Secretary of the Treasury.
Exhibit 26.--Second amendment, February 23, 1954, to
Department Circular No. 530, Seventh Revision, regulations governing United States savings bonds
TREASURY DEPARTMENT,
Washington, February 23, 1954.
To Owners of United States Savings Bonds, and Others Concerned:
Sections 315.3, 315.4 (a), 315.8 (a), 315.10, 315.32(d), and 315.50 (a) of Department
Circular No. 530, Seventh Revision, dated May 21, 1952 (31 CFR, 1952 Supp., 315), as
amended, are hereby amended, effective as of January 1, 1954, to read as follows:
Sec. 315.3 Restrictions. - -Only residents (whether individuals or others) of the
United States (which for the purposes of this section shall include the Commonwealth
of Puerto Rico, the Territories, insular possessions, and the Canal Zone), citizens
of the United States temporarily residing abroad and nonresident aliens employed
in the United States by the Federal Government or an agency thereof may be named
as owners, coowners or designated beneficiaries of savings bonds, whether on original
issue or authorized reissue, except that such persons may name as coowners or
beneficiaries of their bonds citizens of theUnited States permanently residing abroad
or nonresident aliens who are not residents of areas with respect to which the Treasury
Department has restricted or regulated the delivery of checks drawn against funds of
the United States or any agency or instrumentality thereof. * Citizens of the United
States permanently residing abroad and nonresident aliens who become entitled to
bonds under these regulations, by right of survivorship or otherwise, will not have
the right to reissue but will have the right (1) to retain the bonds without change of
registration, (2) to receive interest on current income bonds, and (3) to redeem any
bonds in accordance with their terms. *
Sec. 315.4 Authorized forms of registration. Series E and H, and general provisions
relating to their use.
(a) Forms of registration.--Except as provided in subparagraphs (4) and (5) hereof,
bonds of Series E and H may be registered only in the names of individuals (natural
persons), whether adults or minors, in their own right in one of the following forms:
(1) ONE PERSON: In the name of one person, for example:
"John A. Jones."
(2) TWO PERSONS—COOWNERSHIP FORM: In the names of two (but not more
than two) persons in the alternative as coowners, for example:
"John A. Jones OR Mrs. Ella S. Jones."
No other form of registration establishing coownership is authorized.
iSee Department Circular No. 655, as amended (31 CFR 211).
2 Payment of bonds to nationals of blocked countries^ will in all cases be subject to
the terms of any law, executive order or regulations issued pursuant to such law or
order.
EXHIBITS
207
(3) TWO PERSONS—BENEFICIARY FORM: In the name of one (but not more
than one) person, payable on death to one (but not more than one) other person,
for example:
"John A. Jones, payable on death to Miss Mary E. Jones."
"Payable on daith to'' may be abbreviated " p . o. d." The first person named is
hereinafter referred to as the owner or registered owner, and the second person
named as the beneficiary or designated beneficiary.
(4) TREASURI-R OF THE UNITED STATES AS COOWNER OR BENEFICIARY:
In the name of the owner with the Treasurer of the United States as coowner or
as beneficiary. A bond so registered may not be reissued to eliminate or change
the coowner or the beneficiary, and upon the death of the owner will become the
property of the United States.
(5) TRUSTEES OF AN EMPLOYEES' SAVINGS PLAN: In the name and title of
the trustee or trustees of an employees' savings plan or any similar trust for
the accumulation of employees' savings (see Sec. 316.6a of Department Circular
No. 653, Third Revision, as amended), substantially in accordance with the
provisions of Sec. 315.5 (b).
Sec. 315.8 Amount v/hich may be held.--The limits on the amounts of savings bonds
of Series E, F, G, H, J, and K issued during any one calendar year that may be held by
any one person at any one time follow:
(a) Series E.--For individuals in their own right, $5,000 (maturity value) each year
up to and including the year 1947, $10,000 (maturity value) for eachyear from 1948
to 1951, Inclusive, and $20,000 (maturity value) for the year 1952 and each year
thereafter; for trustees of an employees' savings plan (see sec. 315.4(a)(5)), $2,000
(maturity value) multiplied by the highest number of employees participating in the
plan at any time during the calendar year in which the bonds a r e issued.
Sec. 315.10 Disposition of excess.--If any person at any time acquires savings
bonds issued during any one calendar year in excess of the prescribed amount, the
excess must be surrendered for refund of the purchase price, less (in the case of
current income bonds) any interest which may have been paid thereon, or for such
adjustment as may be possible, except that for good cause found the Secretary of
the Treasury may permit excess holdings to stand in any particular case or class
of cases.
Sec. 315.32 General reissue provisions.--Reissue of a savings bond will be restricted to a form of registration permitted by the regulations in effect on the date
of original issue of the bond and will be made only upon surrender of the bond and
only in accordance with the provisions of those regulations. Reissue of a savings
bond is authorized only as follows: * * *
(d) As otherwise sjpecifically provided in these regulations; except that in any
case (1) a request for reissue received after the maturity date of a bond will not
be recognized or given any effect whatever, and (2) actual reissue will not be made
if the request therefor is received less than one full calendar month before the ma^
turity date of a bond, but a request for reissue so received will otherwise be treated
as effective. The term "maturity date" as used herein, as applied to bonds of Series
E, means the date on which the authorized extension period expires.^
Sec. 315.50 Reissue or payment to person entitled.
(a) Distribution of trust estate in kind,--A savings bond to which a beneficiary of
a trust estate has become lawfully entitled in his own right or in a fiduciary capacity.
^Owners have the option of retaining bonds of Series E for a further period of not
ore
more than 10 years after maturity and earning interest upon the maturity values
ereof.
thereof.
208
1954 REPORT OF THE SECRETARY OF THE TREASURY
in whole or in part, under the terms of the trust instrument, will be reissued in his
name to the extent of his interest as a distributipn in kind upon the request of the
trustee or trustees and their certification that such person is entitled and has agreed
to reissue in his name. The trustee or trustees of an employees' savings plan, when
requesting reissue in the name of a distributee, may request reissue in beneficiary
or coownership form, in accordance with instructions received from the distributee,
and will be recognized as his representatives for that purpose.
A. N. Overby,
Acting Secretary of the Treasury,
Exhibit 27.--Third amendment. May 25, 1954, to Department Circular No. 530, Seventh Revision, regulations
governing United States savings bonds.
TREASURY DEPARTMENT,
Washington, May 25,1954.
To Owners of United States Savings Bonds, and Others Concerned:
Department Circular No. 530, Seventh Revision, dated May 21, 1952 (31 CFR,
1953 Supp,, 315), as amended, is hereby amended to add sections 315,13a and 315.60a
and to revise sections 315.21 (a) and 315.32 to read as follows:
Sec. 315.13a. Gift causa mortis.--Payment or reissue will be made to the donee
of a gift causa mortis of a savings bond if the donor was not survived by a coowner
or beneficiary and the gift is established to the satisfaction of the Secretary of the
Treasury by judicial proceedings or otherwise. ^
Sec. 315.21 (a). Method of interest payments.--The interest due before maturity
on a current income bond will be paid on each interest payment date by check drawn
to the order of the owner or coowners in whose names the bond is inscribed, in the
same form as their names appear in the inscription on the bond, until the Bureau of
the Public Debt, Division of Loans and Currency, 536 South Clark Street, Chicago 5,
Illinois, receives notice of death, as hereinafter provided. Upon receipt of notice of
the death of the owner of a bond in beneficiary form ("A, payable on death to B"), the
payment of interest will be suspended until such time as the bond is presented for
payment or reissue. Interest so withheld will be paid to the person found to be entitled
to the bond. Checks issued in payment of interest dn a bond registered in the names
of coowners ("A or B") will be mailed to the address of record of the payee first
named unless otherwise specifically directed or until receipt of notice of his death.
Upon receipt of notice of the death of the coowner to whom interest is being mailed,
the interest will be mailed to the other coowner, if living, or, if not, will be held
subject to the claim of the representatives of or persons entitled to the estate of
the last surviving coowner. The interest due at maturity will be paid with the principal
and in the same manner, except that if the registered owner of a bond in beneficiary
form dies on or after the due date without having presented and surrendered the
bond for payment or authorized reissue, and is survived by the designated beneficiary,
the interest will be paid to the legal representatives of or the persons entitled to the
estate of the registered owner.
^The above section is declaratory of the fact that within the conditions set forth
therein the transfer of a savings bond by gift causa mortis is not prohibited by the
savings bond regulations.
EXHIBITS
209
Sec. 315.32. General reissue provisions,--Consistent with other provisions ofthese
regulations, a savings bond may be reissued in a form of registration authorized by
the regulations in ctffect on the date of original issue or on the date of reissue. If
reissue* is requested under this section in a form of registration not authorized on the
date of original issue, the issuance of the new bonds shall be subject to the limitation
on holdings in effect on the date of reissue. Actual reissue will not be made if the
request therefor is received on or after the maturity date of the bond or less than
one full calendar month before that date, but a request for reissue so received will
be treated as effective to establish ownership except as provided in subsection (d) of
this section. The term "maturity date" as used herein as applied to bonds of Series
E means the date on which the authorized extension period expires.' Reissue of
a savings bond is authorized only upon surrender of the bond as follows: * * *
(d) As otherwise Sjpecifically provided in these regulations, except that a request
for reissue of a bond to name a coowner or beneficiary or to promote a beneficiary
to a coowner receiv(3d after the maturity date of the bond will not be recognized or
given any effect whatever.
Sec. 315.60a. Waiver of regulations. - - The Secretary of the Treasury reserves the
right, in his discretion, to waive or modify any provision or provisions of these
regulations in any particular case or class of cases for the convenience of the United
States or in order to relieve any person or persons of unnecessary hardship, if such
action would not be inconsistent with law and would not impair any existing rights,
and if he is satisfie<!l that such action would not subject the United States to any substantial expense or liability,
A, N. Overby,
Acting Secretary of the Treasury,
* Owners have the option of retaining bonds of Series E for a further period of not
more than ten years after maturity and earning interest upon the maturity values
thereof.
OBLIGATIONS GUARANTEED BY
THE UNITED STATES
Exhibit 28.--Supplemental regulations governing Federal
Housing Administration debentures
[Department Circular No. 941, Public Debt]
TREASURYDEPARTMENT.
Washington, April 1, 1954.
Sec, 337.0. Scope of regulations.--The United States Treasury Department is the
agent of the Federal Housing Administration for transactions in any debentures which
have been or may be issued pursuant to the authority conferred by the National Housing
Act (48 Stat, 1246), as amended; 12U.5. C. 1701 et seq.), as amended from time to
time, including mutual mortgage insurance fund debentures, housing insurance fund
debentures, war housing insurance fund debentures, military housing insurance fund
debentures, and national defense housing insurance fund debentures. In accordance
with the regulations adopted by the Federal Housing Commissioner and approved by
the Secretary of the Treasury, such transactions are governed by the general regulations of the Treasury Department governing United States bonds and notes (31 CFR
306^) so far as applicable. The following rules and regulations are prescribed to
supplement such general regulations.
iSee also 31 CFR 307.
210
1954 REPORT OF THE SECRETARY OF THE TREASURY
Sec. 337.1. Transportation charges and risks.--Debentures presented for redemption at call or maturity, or for authorized prior purchase, must be delivered to a
Federal Reserve Bank or branch or to the Bureau of the Public Debt, Division of
Loans and Currency, Washington 25, D. C , at the expense and risk of the holder.
Debentures bearing restricted assignments may be forwarded by registered mail,
but for the owner's protection debentures bearing unrestricted assignments should
be forwarded by registered mail insured or by express prepaid.
Sec. 337.2. Termination of transfers and denominational exchange transactions.-Debentures, which by their ternis are subject to call, may be called for redemption,
in whole or in part, at par and accrued interest, on any interest date on three months'
notice. No transfers or denominational exchanges in debentures covered by a given
call will be made on the books of the Treasury Department on or after the announcement of such call. However, this does not affect the right of a holder of such debenture
to sell and assign it on or after the announcement of the call date.
Sec, 337.3, Presentation and surrender.--(a) For redemption.--To facilitate the
redemption of called or maturing debentures, they may be presented and surrendered
in the manner herein prescribed, in advance (but not more than one month in advance)
of the call or maturity date, as the case may be. Early presentation by holders will
insure prompt payment of principal and interest when due. The debentures must first
be assigned by the registered payee or his assignee, or by his duly constituted representative, in the form and manner indicated in section 337.4 hereof, and should then
be submitted to any Federal Reserve Bank or to the Bureau of the Public Debt, Division of Loans and Currency, Washington 25, D. C , accompanied by appropriate written
advice. A form for this purpose will be printed on the reverse of the notice of call.
(b) For purchase.--Debentures, the purchase of which has been authorized prior
to call or maturity, may be assigned and immediately submitted as instructed in
(a) above, accompanied by written instructions.
Sec. 337.4. Assignments of matured or called debentures or debentures submitted
for purchase.--(a) If the registered payee, or an assignee holding under proper assignment from the registered payee, desires that payment be made to himself, the debentures should be assigned by such payee or assignee, or on his behalf 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 upon call, or at maturity, or for
purchase prior to call if purchase is offered. If the owner desires for any reason
that payment be made to another, 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.
(b) An assignment in blank or other assignment having similar effect will be recognized, but in that event the debenture would be, in effect, payable to bearer, and
payment will be made in accordance with the instructions received from the person
surrendering the debenture for redemption or purchase. For the owner's protection,
such assignments should be avoided unless the owner is willing to lose the protection
afforded by registration.
(c) Upon call or at maturity a debenture registered in the name of or assigned to a
corporation or unincorporated association will be paid on or after the call or maturity
date, upon appropriate assignment for that purpose executed on such organization's
behalf by a duly authorized officer thereof. An assignment so executed and duly witnessed in accordance with Treasury Department general bond regulations will ordinarily be accepted without proof of the officer's authority. In such cases payment will
be made only by check drawn to the order of the corporation or unincorporated association. If debentures registered in the name of or assigned to a corporation or unincorporated association are presented upon call or at maturity and payment is to be
made to some other person, or are presented for purchase prior to the call date if
authorized, proof of the authority of the officer assigning on behalf of such organization
will be required in accordance with the general regulations.
EXHIBITS
'
211
(d) All assignments must be made on the debentures themselves unless otherwise
authorized by the Treasury Department.
Sec. 337.5. Payment of final interest.--Final interest on any debenture, whether
purchased prior to or redeemed on or after the call or the maturity date, will be paid
with the principal in accordance with the assignments on the debentures surrendered.
In all cases the check in payment of principal and final interest will be mailed to the
address given in the Form of Advice accompanying the debentures surrendered.
Sec. 337.6. Address for further information.--Any further information which may be
desired regarding the redemption of called or matured debentures, or purchase if
authorized, may be obtained from any Federal Reserve Bank or branch or from the
Bureau of the Public Debt, Division of Loans and Currency, Washington 25, D. C.
Sec. 337.7. General provisions.--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 amendatory regulations governing the matters covered
by this circular, which shall be communicated promptly to the registered owners of
the debentures.
A. N. Overby,
Acting Secretary of the Treasury.
Exhibit 29.--Notices of call for partial redemption, before
maturity, of 2-3/4 percent mutual mortgage insurance
fund debentures. Series E (eleventh call)
[Federal Register, March 31, 1954]
To Holders of 2-3/4 Percent Mutual Mortgage Insurance Fund Debentures, Series E:
NOTICE OF CALL FOR PARTIAL REDEMPTION, BEFORE MATURITY,
OF 2-3/4 PERCENT MUTUAL MORTGAGE INSURANCE FUND DEBENTURES,
SERIES E
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
2-3/4 percent mutual mortgage insurance fund debentures, Series E, of the denominations and serial numbers designated below, are hereby called for redemption, at
par and accrued interest, on July 1, 1954, on which date interest on such debentures
shall cease:
2-3/4 Percent Mutual Mortgage Insurance Fund
Debentures, Series E
Serial numbers
(All numbers inclusive)
Denomination
$50
$100
-
>
---
$ 500
-
$ 1,000
$ 5»000
$ 10,000
--
-
'
-
327 to
1,293 to
2,101 to
383 to
649 to
1,099 to
2,150 to
493 to
805 to
138 to
934
1,527
2,495
606
651
1,288
2,440
678
806
177
212
1954 REPORT OF THE SECRETARY OF THE TREASURY
The debentures first issued as determined by the issue dates thereof 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, 1954. This does not affect the right of the holder of a debenture to sell and
assign the debenture on or after April 1, 1954, and provision will be made for the
payment of final interest due on July 1, 1954, 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, 1954, to June 30, 1954,
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, 1954, or for purchase prior to that date will be given by the Secretary
of the Treasury,
Guy T. O. Hollyday,
Commissioner, Federal Housing Administration,
APPROVED: March 29, 1954
A. N. Overby,
Acting Secretary of the Treasury.
April 2, 1954,
Reference is made to the notice of call mailed to you under date of March 29, 1954.
If you desire to take advantage of the offer of the Commissioner of the Federal Housing
Administration to purchase your debentures at par and accrued interest from April 1
to June 30, 1954, inclusive, you are advised that the rate of interest will be $0,075967
per $ 1,000 per day from January 1, 1954, to date of purchase. If you elect to send your
debentures in for redemption on or after July 1, 1954, redemption will be at par with
interest at the rate of $ 13.75 per $ 1,000 in full to that date.
Exhibit 30.—Summary of information contained in the
notices of call for partial redemption, before maturity,
of insurance fund debentures
During the fiscal year 1954 there were seven calls on March 29, 1954, for partial
redemption, before maturity, of insurance fiind debentures. The notice of call, and
supplemental notice dated April 2. 1954, covering the eleventh call of Series E mutual
mortgage insurance fund debentures are shown as exhibit 29. Since the notices covering
the other called debentures are similar to exhibit 29, they have been omitted but the
essential details are summarized in the following table.
S u m m a r y of information contained in the n o t i c e s of call for p a r t i a l redennption of i n s u r a n c e fund d e b e n t u r e s during the fiscal y e a r 1954
2-3/'4 percent mutual
mortgage insurance
fund debentures.
Series E,
eleventh call
2-1/2 percent war housing
insurance fund debentures
Series H,
twelfth call
Series J,
third call
2-1/2 percent housing insurance
fund debentures
2-1/2 percent mutual 2-1/2 percent Title I
houjsing insurance
mortgage insurance
f\md debentures.
fund debentures.
Series K, third call Series L, first call
Series M,
first call
Series Q,
first call
•
Notice of call
Supplemental
notice
Redemption
date
Serial numbers
called by denominations :
$50
$100
Mar. 29, 1954
Mar. 29, 1954
Mar. 29, 1954
Mar. 29, 1954
Mar. 29, 1954
Mar. 29, 1954
Mar. 29, 1954
Apr. 2, 1954
Apr. 2, 1954
Apr. 2, 1954
Apr. 2, 1954
Apr. 2, 1954
Apr. 2, 1954
Apr. 2, 1954
July 1, 1954
July 1, 1954
July 1, 1954
July 1, 1954
July 1, 1954
July 1, 1954
July 1, 1954
4-30.
5-103
1-3, 53
1-13
1-3
1-4
1-3
1
4-77
5-179
1-54
1-206
1
1-6
1-3..
1-38
5-28
1-27
Apr. 1, 1954
1^ 51
Apr. 1, 1954
1-2
1-88
Apr. 1, 1954
1-316
Apr. 1, 1954
$12.50 per $1,000...
$12.50 per $1,000...
$12.50 per $1,000...
$12.50 per $1,000...
327-934
921-3004,3526-3571..
1293-1527,2101-2495.. 2803-6605, 1092838'-Ao'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.
11097
383-606, 649-651
986-1409, 1810-2810.
$500
1099-1288, 2150-2440. 4525-5389, 5397-5399, 47-49
$1,000
5402-6054, 6339-8703
1252-2439, 2580-2849
493-678, 805-806
$5,000
8502-22051
$10,000.... 138-177.
Apr. 1, 1954
Apr. 1, 1954
Final date for Apr. 1, 1954
transfers or
denominational exchanges (but
not for sale
or assignment) .
Rederaption on $13.75 per $1,000... $12.50 per $1,000... $12.50 per $1,000...
call date.
amount paid
at par with
interest in
full at rate
of.
Presentation
for purchase
prior to call
date:
Apr. 1-June 30, 1954 Apr. 1-June 30, 1954 Apr. 1-June 30, 1954
Period
Amount paid $0.075967 per $1,000 $0.069061 per $1,000 $0.069061 per $1,000
per day from Jan.l,
per day from Jan.l,
per day from Jan.l,
at par and
1954, to date of
1954, to date of
1954, to date of
accrued
purchase.
pvir chase.
purchase.
interest
at rate
of.
1-3
Apr. 1-June 30, 1954 Apr. 1-June 30,. 1954 Apr. 1-June 30, 1954 Apr. 1-June 30, 1954
$0.069061 per $1,000 $0.069061 per $1,000 $0.069061 per $1,000 $0.069061 per $1,000
per day from Jan.l,
per day from Jan.l,
per day from Jan.l;
per day from Jan.l,
1954, to date of
1954, to date of
1954, to date of
1954, to date of
purchase.
purchase.
purchase.
purchase.
X
X
214
1954 REPORT OF THE SECRETARY OF THE TREASURY
TAXATION DEVELOPMENTS
Exhibit 31.—Extract from the Budget Message of the P r e s i dent, January 21, 1954, transmitting proposals for tax
legislation
Tax proposals
Our whole system of taxation needs revision and overhauling. It has grown haphazardly
over many years. The tax system should be completely revised.
Revision of the tax system is needed to make tax burdens fairer for millions of
individual taxpayers. It is needed to restore normal incentives for sustained production
and economic growth. The country's economy has continued to grow during recent years
with artificial support from recurring inflation. This is not a solid foundation for
prosperity. We must restore conditions which will permit traditional American initiative and production genius to push on to ever higher standards of living and employment.
Among these conditions, a fair tax system with minimum restraints on small and growing businesses is especially important.
I believe that this proposed tax revision is the next important step we should take in
easing our tax burdens. After it is completed, further reductions in expenditures can
be applied to our two objectives of balancing the budget and reducing tax rates.
A year ago I asked the Secretary of the Treasury to undertake a complete review of
the tax system and make recommendations for changes. The Committee on Ways and
Means of the House of Representatives had already started constructive examination
of the tax laws with the same objectives. Extensive hearings were held by the committee during the late spring and summer.
The proposed revisions are the result of a year's intensive work. The collaboration
between congressional and Treasury staffs in the development of a tax revision bill
has been very close. It may, I hope, provide a precedent for similar collaboration in
other fields of legislation.
I shall not list here all the detailed points developed for the revision of the tax laws.
The following recommendations cover the major points.
They will substantially reduce the more glaring inequities, thereby helping vast
numbers of our people in their individual tax burdens. They will reduce the more
serious restraints on production and economic growth. They will promote investment,
which provides new and better methods of production and creates additional payrolls
and more jobs.
The revisions will also make the law simpler and surer, with benefits to both taxpayers and the Government. They will in many ways prevent abuses by which some
taxpayers now avoid their rightful share of tax burdens by taking unfair advantage of
technicalities.
1. Children earning over 600 dollars.--At present, parents cannot claim as a dependent any child who earns over 600 dollars a year. This discourages children in school
or college from earning as much as they can to help in their support. I recommend that
a parent should be permitted to continue to claim a child as a dependent regardless of
the child's earnings if he is under 18 or away from home at school, as long as he is in
fact still supported by the parent. Such dependents should, of course, continue to pay
their own income tax on earnings above 600 dollars.
2. Heads of families.--At present, a widow or widower with dependent children is
denied the full benefit of income-splitting available to married couples. It seems unfair
to tax the income of a surviving parent with dependent children at higher rates than
were applied to the family income before the death of one of the parmers in a marriage.
I recommend that widows and widowers with dependent children be allowed to split their
income as is now done by married couples.
This same tax treatment should be authorized for single people supporting dependent
parents. Furthermore, the present requirement that dependent parents must live with
EXHIBITS
215
their children for the children to qualify for this tax treatment should be removed. It
is often best for elderly people to be able xo live in their own homes, and the tax laws
should not put a penalty on family arrangements of this sort.
3. Foster children as dependents.—At present, foster children and childroi in
process of adoption may not be claimed as dependents. I recommend that such children
be allowed as dependents.
4. Expenses of child care.--Some tax allowance can properly be given for actual
costs of providing care for the small children of widows or widowers who have to work
outside the home. The same tax privilege should be given to working mothers who,
because their husbands are incapacitated.providetheprincipalsupport of their families.
5. Medical expentses.—The present tax allowances for unusual medical expenses are
too limited to cover the many tragic emergencies which occur in too many families.
I recommend that a tax allowance be given for medical expenses in excess of 3 percent
of income instead of 5 percent as at present. I recommend further that the present
ceiling of 1,250 doillars for a single person with a maximum ceiling of 5,000 dollars
for a family should he doubled so that the maximum for a family will be 10,000 dollars.
However, to avoid abuses in medical deductions, I recommend that the definition of
medical expenses he tightened to exclude both ordinary household supplies and certain
indirect travel expenses.
6. Medical insurance and sick benefits for employees.—Insurance and other plans
adopted by employers to protect their employees against the risks of sickness should
be encouraged by removing the present uncertainties in the tax law. It should be made
clear that the employer's share ofthe costs of providing such protection on a group
basis wiU not be treated as income on which the employee is liable for tax. This principle
should be applied to medical and hospital insurance as well as to a fiill or partial
continuation of earnirigs during a sickness.
There should be no tax discrimination betwe^i plans insured with an outside insurance company and those financed directly by the employer. At present, payments
received by a person while sick are entirely nontaxable if made under an insured plan.
This makes it possible for a person subject to high tax rates to have a much larger
net income while on sick leave than while at work. To prevent abuses, I recommend
that a limit of 100 dollars a week be placed on tax-free benefits, but this exemption
should be extended only to plans meeting certain general standards.
7. Pension and profit-sharing plans for employees.—The conditions for qualification
for special tax treatment of employers' pension plans are too involved. Such plans are
desirable. I recommend that the rules be simplified and that greater discretion be given
in establishing plans for different groups of employees, so long as there is no discrimination in favor of key executives or stockholders.
Under present law, the value of a future pension to a surviving widow or child of an
employee is included in the husband's taxable estate, even though the survivors may
not live to receive xhe full benefits and there may be no cash available to pay the tax.
I recommend that such value should not be included in an estate but that the survivors
continue to pay tax on the pension in the same manner that it was taxed to the person
first receiving it.
At the same time,, to avoid unfair competition with ordinary taxpaying businesses,
I recommend that pension trusts be restricted in the same manner as tax-exempt
foundations. They should also be subject to rules in regard to percentage distribution
of their assets comparable to those applying to regulated investment companies.
8. Taxation of annuities.—Under the present tax law, a person buying an annuity
is taxed on a relatively large part of each payment until his cost is fiiUy recovered,
at which time the fiiU amount becomes taxable. The tax rule is so strict that often a
person is nbt likely to get his capital back tax free unless he lives beyond his life
expectancy. I recommend that the tax treatment of annuities be determined on the basis
of the life expectancy of the person receiving it. This will permit the hundreds of
thousands of people who buy annuities to recover their capital free of tax over their
life expectancies and will avoid any change in the tax status of an annuity during a
person's lifetime.
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1954 REPORT OF THE SECRETARY OF THE TREASURY
9. Double taxation of dividends.--At present, business income is taxed to both the
corporation as it is earned and to the millions of stockholders as it is paid out in
dividends. This double taxation is bad froni two standpoints. It is unfair and it discourages investment. I recommend that a start be made in the removal of this double
taxation by allowing stockholders a credit against their own income taxes as a partial
offset for the corporate tax previously paid. This will promote investment which in
turn means business expansion and more production and jobs.
Specifically, I recommend, that the credit be allowed on an increasing scale over
the next 3 years. For this year, I recommend that a credit of 5 percent be allowed;
for 1955, a credit of 10 percent; and, in 1956 and later years, 15 percent. To avoid
shifts in the payment dates of corporation dividends, these credits should apply to
dividends received after July 31 of each year. To give the full benefit immediately to
small stockholders, I recommend that the first 50 dollars of dividends be completely
exempted from tax in 1954 and that the first 100 dollars be exempted in 1955 and later
years.
10. Estimated returns.--The burden on those required to file estimated tax retums
should be reduced by increasing the number of optional ways in which an individual
can estimate his tax without being subject to penalty for an underestimate. I recommend
also that the penalties resulting from underestimates be simplified by being stated as
a 6 percent interest charge on deficiencies.
11. Filing date.--To reduce the burdens of preparing and filing returns in the early
months of the year, I recommend that the March 15 filing date for individuals be
changed to April 15.
In the taxation of business the same objectives of fairness, simplicity, and reduction
of tax barriers to production and normal economic growth are important. The present
tax law should be revised on the basis of these standards.
Particular attention should be given in the revision of the law to the problems of
small and growing business concerns. I cannot emphasize too stongly the social and
economic importance of an environment which will encourage the formation, growth,
and continued independent existence of new companies.
12. Depreciation.—A liberalization of the tax treatment of depreciation would have
far-reaching effects on all business and be especially helpful in the expansion of small
business whether conducted as individual proprietorships, partnerships, or corporations. At present, buildings, equipment, and machinery are usually written off unifor maiy
over their estimated useful lives. The deductions allowed, especially in the early
years, are often below the actual depreciation. This discourages long-range investment on which the risks cannot be clearly foreseen. It discourages the early replacement of old equipment with new and improved equipment. And it mak^s it more difficult
to secure financing for capital investment, particularly for small business organizations.
I recommend that the tax treatment of depreciation be substantially changed to reduce
these restrictions on new investment, which provides a basis for economic growth,
increased production, and improved standards of living. It wiU help the manufacturer
in buying new machinery and the storekeeper in expanding and modernizing his establishment. It will help the farmer get new equipment, AU of this means many more jobs.
Specifically, I recommend that business be allowed more freedom in using straightline depreciation and in selecting other methods of depreciation. Larger depreciation
charges should be allowed in the early years of life of property by the use of the
declining-balance method of depreciation at rates double those permitted under the
straight-line method. Other methods which give larger depreciation in early years
should be accepted, so long as they do not produce deductions which exceed those
available under the declining-balance method.
The new methods of depreciation should be allowed for all investments in buildings,
equipment, and machinery made after January 1, 1954. This would include farm
buildings and equipment and new construction of commercial and industrial buildings
and rental housing.
Faster depreciation, it should be noted, will merely shift the tax deductions from
later to earlier years. It will not increase total deductions. The change should, in
EXHIBITS
217
fact, increase Government revenues over the years because of the stimulation which
it will give to enterprise and expansion.
In addition to the tax treatment of depreciation, which is important for all business,
there are other features of the tax law which are of special importance to small
business.
13. Research and development expenses.—At present, companies are often not
permitted to deduct currently for research or development expenses. This rule is
especially burdensome to small concerns because large companies with established
research laboratories can usually get iinmediate deductions. I recommend that aU
companies be given an option to capitalize or to write off currently their expenses
arisuig, from research and development work. Our tradition of initiative and rapid
technical improvements must not be hampered by adverse tax rules.
14. Accumulation of earnings.—At present, the penalty tax on excessive accumulations of corporate earnings operates to discourage the growth of small companies which
are peculiarly dependent on retained earnings for expansion. The tax in some form is
necessary to prevent avoidance of individual taxes by stockholders, but I recommend
that the law be changed to make the Govemment assume the burden of proof that a
retention of earnings is unreasonable.
15. Taxation of partnerships.—The tax law applicable to partnerships is complex
and uncertain. I recommend that it be simplified and made definite. It should be possible
to form parmerships and make changes in them without undue tax complications.
16. Optional tax tireatment for certain corporations and parmerships.—Small businesses should be able to operate under whatever form of organization is desirable for
their particular circumstances, without incurring unnecessary tax penalties. To secure
this result, I recommend that corporations with a small numher of active stockholders
be given the option to be taxed as parmerships and that certain parmerships be given
the option to be taxed as corporations.
17. Corporate re<3rganlzations.--The tax law applicable to reorganizations and
recapitalizations of corporations is also complex and uncertaino This part of the law
should be simplified and made sufficiently definite to permit people to know in advance
the tax consequences of their actions.
The owners of smaU corporations frequently find it necessary to rearrange their
interests in a corporation in anticipation of estate taxes, to secure new capital, or to
make stock available for a new management group. I recommend that the tax law
permit tax-free rearrangements of stockholders' interests in corporations, so long as
no corporate earnings are withdrawn. Such changes wiU remove some of the tax
pressures which force the sale of independent companies to larger corporations. At
the same time, the law should be tightened to prevent abuses by which corporate
earnings are withdrawn through the issuance and redemption of corporate securities..
It should also be amended to avoid abuses through the purchase of corporations to
acquire their rights to loss carryovers.
18. Loss carryback.--At present, losses may be carried back and offset against
prior earnings for 1 year and carried forward to be offset against fiimre earnings for
5 years. I recommend that the carryback be extended to 2 years. This wiU benefit
estabUshed companieis which become distressed. The 5-year carryforward should be
continued to permit new businesses to offset their early losses against later profits.
19. Soil conservation expenses.- -At present, only limited and uncertain tax deductions
are aUowed for soU conservation expenses on farms. I recommend that such deductions
be aUowed up to 25 percent of the farmer's gross income,
20. Accounting definitions.—Tax accounting should be brought more nearly in line
with accepted business accounting by allowing prepaid income to be taxed as it is
earned rather than as it is received, and by aUowing reserves to be established for
known fumre expenses.
21. Multiple surtax exemptions, consoUdated remrns, and inter corpor ate dividends.—
I recommend that the law be tightened to remove abuses from the use of multiple
corporations in a sijigle enterprise. I also recomm^id that the penalty tax on consoUdated remrns and intercorporate dividends be removed over a 3-year period.
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1954 REPORT OF THE SECRETARY OF THE TREASURY
22. Business income from foreign sources.--I recommoid that the taxation of
income from foreign business investments be modified in several respects. The iiivestment climate and business environment abroad are much more important than our own
tax laws in influencing the intemational flow of capital and business. Nonetheless, our
capital and management know-how can be helpful in furthering economic development
in other countries, and is desired by many of them. Our tax laws should contain no
penalties against United States investment abroad, and within reasonable limits should
encourage private investment which should supplant Government economic aid.
SpecificaUy, I recommend the following new provisions in our taxation of business
income from foreign sources:
(a) Business income from foreign subsidiaries or from segregated foreign branches
which operate and elect to be taxed as subsidiaries should be taxed at a rate 14 percentage points lower than the regular corporate rate. This lower rate of tax should
apply only to earnings after January 1, 1954.
(b) The present definition of foreign taxes which may be credited against the United
States income tax should be broadened to include any tax other than an income tax which
is the principal form of taxation on business in a country, except mmover, general sales
or excise taxes, and social security taxes. This country, by its tax laws, should not bring
indirect pressure on other countries to adapt their tax systems and rates to ours.
(c) The overaU limitation on foreign tax credits should be removed. This Umitation
discourages compames operating profitably in one foreign country from starting business in another foreign country where operations at a loss may be expected in the first
few years.
(d) Regulated investment companies concentrating on foreign investments should be
permitted to pass on to their stockholders the credit for foreign taxes which would be
available on direct individual investments.
23. Payment dates of corporation income tax.—Over the past several years, corporation income tax payments have been graduaUy shifted forward into the first two of the
regular quarterly dates. By 1955, the entire tax wfll be due in two equal installments
in March and June.
The irregularity of tax receipts increases the problems in managing the pubUc debt
and is an unsettling influence in the money markets. The irregularity of tax payments
also may make it harder for corporations to manage their own financing.
I recommend that, beginning in the faU of 1955, a start be made in smoothing out
corporation income tax payments by requiring advance payments in September and
December before the end of the taxable year. Each of these payments should be made
at 5 percent of the amount due for the entire year in 1955, rising to 25 percent each
in 1959 and later years.
These advance payments wiU require estimates of income for the year somewhat
comparable to those now required of individuals. Though estimates of profits are difficult to make accurately, no payments wiU be required before the middle of the ninth
month of a business year,
24. Administrative provisions.—The administrative feamres of the tax laws are
unnecessarUy complex. Different provisions have been adopted over the years to deal
with particular problems, with Uttle regard to consistency. SpecificaUy, I recommend
that the parts of the law covering assessments, coUections, interest and penalties, the
stamte of Umitations, and other administrative provisions be simpUfied and brought
together in one place. This wiU result in savings to both taxpayers and the Government,
An effective and fair administration of the tax laws is vital to every individual in the
country. The Internal Revenue Service has been revitalized during the past year and is
being organized and managed on a basis that wiU assure fair and equal treatment to aU
taxpayers, maximum realization of taxes from revenue laws, and the contribution by
each taxpayer of the share of the cost of Government that Congress intends that he
should make.
The regulations and administration of the tax laws are being tightened to prevent
abuses by which a smaU minority of taxpayers avoid their fair share of taxes by misuse
of expense accounts and other improper practices.
EXHIBITS
219
25. General simpUflcation of tax laws and other revisions.--The revision of the tax
laws should be comprehensive. Many unnecessary compUcations have developed over
the years. The entire Internal Revenue Code needs rewriting and reorganization.
Jointly, the Treasury Department and the staff of the congressional committees have
developed many recommendations for changes other than those which I have described
here. Some of these relate to the estate and gift tax, and the administrative provisions
of the excise taxes.
The review of the present tax system in the Treasury Department has not yet led
to final conclusions iii many other simations that require further smdy before any
recommendations for change can be properly made. These subjects include the tax
treatment of capital gains and losses, the special problems of the oU and mining
industries, the tax treatment of cooperatives and organizations which are whoUy or
partiaUy tax exempt, as weU as the provision of retirement income for people not
covered by pension plans.
The tax reforms and revisions covered by the foregoing 25 recommendations make
the income tax system fairer to individuals and less burdensome on production and
continued economic growth. After their adoption, further reductions in Government
expendimres wUl make possible additional reductions in the deficit and tax rates.
I do not beUeve that the budgetary simation justifies any tax reductions beyond those
involved in the proposed tax revision and in the tax changes which occurred on January
1. Accordingly, I repe^it my recommendation of last May that the reduction in the general
corporate income tax rate be deferred for another year.
Excise taxes provide a relatively smaU proportion of our total tax revenues. In the
fiscal year 1955, they are estimated to produce 10 biUion dollars at existing rates as
compared with 20 bilUon dollars from corporation income taxation and 30 biUion
dollars from individual income taxes. Of this 10 biUion doUars, more than half comes
from the excise taxes on Uquor, tobacco, and gasoline.
Because of the prestait need for revenue, I reconunend that the excise taxes scheduled
to be reduced on April 1, including those on Uquor, tobacco, automobiles, and gasoline,
be continued at present rates; and that any adjustments in the other excise taxes be
such as to maintain xhii total yield which we are now receiving from this source.
Exhibit 32.—Statement by S e c r e t a r y o f t h e Treasury
Humphrey before the Joint Committee on the Economic
Report, February 2, 1954
I am pleased to have the opportunity to appear before your committee this morning
to discuss the 1954 Economic Report of the President which was submitted to the
Congress last week.
I subscribe to the conclusion of the report to the effect that this Nation can make
the transition to a period of less costiy miUtary preparedness without serious inter mption in our economic growth. As the President says in the letter of transmittal, there
is much that justifies confidence in the fiimre.
Changes which this administration has put into effect, as weU as others which have been
recommended in the tax stmcmre, contribute greatiy to our confidence in the fiimre.
As you gentlemen weU know, this administration in the past twelve months has cut
more than $ 12 biUion in anticipated Government spending. This reduction in proposed
spending made possible the tax cuts on January 1. These cuts now are leaving with
the taxpayers over $ 5 biUion a year which formerly was spent by the Govemment,
We are cutting taxe;;, even though we have not arrived at a budget balance. There is
a very good reason for this. We must always anticipate the reduction of Government
expendimres and beg;in to transfer biUions of dollars which the Government wfll not
be spending back to the taxpayers so that there wiU not be any suddai dislocation
resulting from the lack of those doUars l)eing available to be put into the Nation's
spending stream. In ttiat way we help to maintain stabiUty.
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1954 REPORT OF THE SECRETARY OF THE TREASURY
It is important to notice that we expect to almost reach a cash balance this year,
and a smaU cash surplus in fiscal 1955. We are thus eliminating the necessity for cash
deficit financing from the pubUc which is inflationary particularly in times of high
levels of activity. At the same time we are naoving closer each year to an administrative budget balance, which is a goal we are determined to reach.
In addition to the $5 biUion tax cuts of January 1, we are recommending a general
revision of the tax system. It wfll do two principal things:
(1) It wiU make the tax burden fairer for miUions of individuals by removing the
more serious tax inequities and compUcations.
(2) It wiU stimulate production and create bigger payrolls and more and better jobs
by reducing restraints and by encouraging initiative and investment.
MiUions of Americans wiU benefit from better tax treatment for working children,
chUd care expenses, for doctors' bills, for annuities, and from easier procedures
in filing remrns.
And these same miUions wUl benefit even more from such revisions as Uberalization of the tax treatment of depreciation and partial reUef from double taxation of
dividends. Everyone wiU benefit because the economy wfll benefit with the resulting
creation of more jobs with better tools and machinery to produce higher payrolls
and cheaper, better things for pubUc consumption.
The tax revision program, by helping the economy to grow and expand, wiU benefit
every citizen with steadier employment and higher standards of Uving.
In this connection the proposal for some relief from the double taxation of dividends
may not be weU understood. Under present law, earnings of a corporation are taxed
twice, once as corporation income and again as individual income when they are paid
out in dividends to the miUions of shareholders in American industry. This has r e stricted the market for shares of stock in companies which want to expand and has
forced them to borrow money instead of seUing shares in their fumre. In the past
ten years better than 75 percent of private-Indus try financing has been done by going
Ul debt instead of selling shares. What does this mean? It means simply that we have
enterprise heavUy in debt so that it doesn't develop as weU or as quickly as it would
without heavy debts hanging over it. Should business m m down, a company in heavy
debt is, of course, easfly drawn into trouble.
Better prospects for enabling companies to get shareholder financing instead of
going into debt--this means better prospects for aU Americans who work, for increasingly better jobs come more surely out of companies that are moving forward
and expanding.
There has also been some misunderstanding about what we are proposing in depreciation. Depreciation is reaUy the wrong word. Bufldings and machinery not only wear
out but they become old fashioned and neither the workman using them nor the business
owning them can do as weU either in earning wages or in decreasing costs as more
modern, up-to-date equipment would make possible. Depreciation is simply the method
by which the original cost of a buflding or piece of machinery is recovered over the
years during which it is being used up and worn out. At the moment these deductions
must usuaUy be spread out evenly over the years for tax purposes. But if the cost of
a piece of machinery has not been written off by the time it should be replaced with
the better machinery, there is less inclination to buy a new piece of machinery that
wiU do the job better and cheaper than keeping the old machinery stiU in use. Our
proposal to let more depreciation be taken in early years does not increase the total
that may be taken as tax deduction by one cent. It simply recognizes the facts and allows
more of the deduction in earlier years. Doing so helps our economy to stay modern
and up-to-date, and so to grow and expand faster. And again repeating the obvious,
out of this growing economy come more and better jobs. It also is very helpful to the
smaU and growing concern in arranging its finances for new purchases of additional
or more modern equipment and so aids smaU business to forge ahead.
Nothing can so add to our national strength and preparedness as modernization of
the whole industrial plant in American and nothing wfll make more sure more jobs
at which miUions of people can earn high wages by producing more and better goods
at less cost.
EXHIBITS
221
These revisions, as they help our economy expand and reduce the taxes required
wfll also result in more personal income to be spent by taxpayers for their own account and in their omi way and so wfll provide more money for the purchase of those
better goods and services.
Additional tax cuts; for aU the taxpayers wiU of course benefit them. But untfl more
reductions in Government expendimres are in sight, further cuts in taxes wiU only
add to the deficit. However as rapidly as reduced expendimres can be seen, fiirther
tax reductions wfll promptiy be made. In the meanwhfle, putting first things first,
we must make sure we are doing the things that by restoring initiative wiU keep our
economy expanding. More tax cuts from the pay check wiU be of Uttle value if there
is no job to make the pay check in the first place.
As long as Americans know there is adequate change for gain they wiU save and
invest. They wfll try new things that wfll bring forward new business, growing business, more jobs, better jobs, and higher and better standards of Uving.
In the past decade the growth of American industry was stimulated by debt and war
and inflation. With these unwanted pressures fading, we need to again make initiative
and enterprise more compeUing if our economy is to continue to grow.
That growth stimulated by tax reUef and reduction to almost every taxpayer in the
Nation is the basic purpose of our tax program.
We beUeve that thiis tax program wiU help to bufld a firm foundation for the fiimre
health pf our economy and that we can look to the fiimre with great confidence.
Exhibit 33.--Address telecast and broadcast by the President, March 15, 1954, on the tax program
I would like to talk with you tonight about something that concerns each of us personaUy and directiy, especiaUy on March 15th. I want to talk about our taxes and about
the new tax program that the Congress wiU debate this week.
We recognize, of course, that taxes are necessary. We know that through taxes our
Governmait gets the money to carry on its necessary functions. The most costiy is
defense.
Only at our perfl may we pursue a penny-wise, pound-foolish poUcy in regard to the
Nation's security. In the past year, we have been able to make real savings in defense
costs. But despite these savings, seventy cents out of each dollar spent by your Government stfll go for defense purposes.
The remaining thirty cents go for many things: To meet our obUgations to veterans,
to carry on import^int activities overseas, to pay the interest on the gigantic pubUc
debt, and to do within our country what Abraham LincoLi described as "those things
which the individual cannot do at all or so weU do for himseU."
I know how burdensome your taxes have be^i and continue to be. We are watching
every expendimre of 'Government: to eliminate waste, dupUcation, and luxury. But whfle
we are insisting upon good management and thrift in Government, we have, at the same
time, asked the Congress to approve a great program to build a stronger America for
aU our people.
Thus:
We want to improve and expand our social security program.
We want a broader and stronger system of unemployment insurance.
We want more and better homes for our people.
We want to do away with slums in our cities.
We want to foster a much improved health program.
We want a better and a lasting farm program, with better reclamation and conservation.
We want an improv^ed Taft-Hartiey Act to protect workers and employers.
We want wider markets overseas for our products.
339256 O - 55 - 16
222
1954 REPORT OF THE SECRETARY OF THE TREASURY
We want, above all, maximum protection of freedom and a strong and growing
economy--an economy free from both inflation and depression.
Most of these things cost money. Without adequate revenue, most of them would be
abandoned or curtailed. That is why our tax proposal is the cornerstone of our whole
effort. It is a tax plan designed to be fair to all. I am sure you join me in the hope that
the Congress, before it adjourns, will approve this entire program.
Along with this great plan for America, we want also to reduce your taxes so you can
save or spend more of your own money, as you personally desire.
Now, to reduce taxes, we had to find some way of saving money, for despite many
years of heavy taxation, our Government has been running deeper and deeper into debt.
A year ago, this administration inherited a budget calling for a spending program that
we have since reduced by twelve billion dollars. Of this total saving, seven billion
dollars is being made this year.
Now, seven billion dollars is so much money, even in Washington, that it's hard to
know what it really means. Let*s see if we can get some idea of how much i | is.
The money American farmers got last year for all the corn and all the wheat grown
in our entire country was seven billion dollars.
The money Americans paid in all of last year for household utilities and for fuel
amounted to seven billion dollars.
The money Americans pay each year for doctor, dentist, medical and hospital bills
is seven billion dollars.
I think you will agree that we have, indeed, saved a lot of money. Without these
savings, there could have been no tax relief for anyone. Because of these savings, your
tax cuts were possible.
On January 1st this year your taxes were cut by five billion dollars. The tax revision
program now in Congress will cut taxes by over one and a half bilUon dollars more.
The total may be nearly seven billion dollars. Thus the Government is mrning back to
you about all that we expect to save this year. Meanwhile, we a r e seeing to it that the
Government deficit, instead of growing, may continue to shrink.
Now, in the light of all this, let's look at the tax program now in Congress.
To start with, it is the first time in half a cenmry that our tax laws have been completely overhauled. This long overdue reform of old tax laws brings you benefits
which go beyond the tax reductions I have just mentioned. Millions of individual taxpayers, many of you listening, will benefit. Here are some examples:
You will have larger deductions for your medical expenses.
There will be special deductions for the cost of child care for those among you who
are widows who work.
Fairer tax treatment for the widows of policemen and firemen and others who have
fraternal or private pension plans.
Fairer tax consideration for those of you who a r e retired.
Deductions of up to $ 100 a week for those of you receiving sickness or accident
benefits.
There are, in addition, important provisions to encourage the growth and expansion
of industry, the creation of jobs, and the starting of new and small businesses.
One of these provisions is of particular interest to those among you who have made
or want to make investments to help meet the expenses of a growing family or of old
age. We propose to reduce double taxation by exempting this year the first $ 50 and
deducting 5 percent of the balance of dividend income, and double those amounts thereafter.
This will be important to all of us, whether our savings are large or small. It will
encourage Americans to invest in their country's fumre. And let us remember this:
The average investment needed to buy the tools and facilities to give one of our people
a job runs about eight to ten thousand dollars. The more we can encourage savings and
investments, the more prosperous will be 160 million American citizens.
Just as we need more spending by consumers, so we need buyers for items produced
by heavy industry: for lathes and looms and giant generators. The making of these
things gives jobs to millions of our people. This carefully balanced tax program will
EXHIBITS
223
encourage this kind of production. It will make new jobs, larger payroUs, and improved
products. It will give us lower price tags on many of the things we want and need.
And here is another important part of this program. It concerns the income tax on
corporations. Under the law, this tax would be reduced two weeks from today. I have
asked the Congress to keep this tax at 52 percent and not to permit it to go down to
47 percent at this time. The extension of this extra tax on corporations will provide
enough money to pay the costs of the benefits this tax revision program will bring to
individuals and business.
So, there you have, in broad outline, the new tax revision program. I most earnestly
hope that the Congress will pass it.
But this is an election year. Some think it is good politics to promise more and more
Government spending, and at the same time, more and more tax cuts for all. We know,
from bitter experience, what such a policy would finally lead to. It would make our
dollars buy less. It would raise the price of rent, of clothing, and of groceries. It
would pass on still larger debts to our children.
Some have suggest(3d raising personal income tax exemptions from $600 to $800, and
soon to $ 1,000, even though the Federal budget is not in balance. You've seen this kind
of deal before. It looks good on the surface but it looks a lot different when you dig
into it.
The $1,000 exemption would excuse one taxpayer in every three from aU Federal
income taxes. The share of that one-third would have to be paid by the other two-thirds.
I think this is wrong. I am for everybody paying his fair share.
When the time comes to cut income taxes still more, let*s cut them. But I do not
believe that the way to do it is to excuse millions of Americans from paying any income
tax at all.
The good American doesn't ask for favored position or treatment. Namrally he wants
all fellow citizens to pay their fair share of the taxes, and he wants every cent coUected
to be spent wisely and economically. But every real American is proud to carry his
share of the burden. In war and peace, I have seen countless examples of American
pride and of the unassuming but inspiring courage of young American citizens. I simply
don't believe for one second that anyone privileged to live in this country wants someone
else to pay his own fair and just share of the cost of his Government.
Aside from that, let's just be practical. The loss of revenue involved in this proposal
would be a serious blow to your Government.
A $100 increase in the exemption would cost the Government two and a half billion
dollars. To increase the personal exernption to one thousand dollars would cost eight
billion dollars. This, of course, would be on top of the large tax cuts our savings have
already made possible this year.
I must and will oppose such an unsound tax proposal. I most earnestly hope that it
will be rejected by the Congress. I hope you feel the same.
Every dollar spent by the Government must be paid for either by taxes or by more
borrowing with greater debt. To make large additional savings in the cost of Government at this moment means seriously weakening our national defense. I do not know
any friend of the United States who wants that, under present world conditions. The
only other way to make more tax cuts now is to have bigger and bigger deficits and to
borrow more and more money. Either we or our children will have to bear the burden
of this debt. This is one kind of chicken that always comes home to roost. An unwise
tax cutter, my fellow citizens, is no real friend ofthe taxpayer.
Now, this evening I mustn't overlook those among us who are professionally fainthearted. They have been arguing lately that we are on the very brink of economic
disaster. Viewing with gloom is only to be expected in the spring of an election year.
The truth is, we do not have a depression. And what's more, as I have said time and
time again, your Government will continue to use its full powers to make sure that
we don't have one.
A month ago, I expressed to the Congress my belief that we would be able to go from
wartime to peacetime conditions without serious economic trouble. Nothing has happened
since to change my mind.
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1954 REPORT OF THE SECRETARY OF THE TREASURY
Some unemployment has developed in different parts of the country, but the Nation
as a whole continues to be prosperous. Unemployment has reached about the level it
was in the spring of 1950. The broad program I have proposed to the Congress will
strengthen our economy. When it is approved by Congress, it will both increase the
number of jobs and make every man secure in the job that he has.
Of course, everyone wants tax reductions of the right kind, at the right time. That
specifically includes this administration. This has been proved by the large tax cuts
we have already made possible this year. But economic conditions do not call for an
emergency program that would Justify larger Federal deficits and further inflation
through large additional tax reductions at this time.
My friends, a cenmry and a half ago, George Washington gave us some good advice.
He said we should keep a good national defense. He also said we should not ungenerously
impose upon our children the burden which we ourselves ought to bear.
I know you and I agree with him on these points.
We agree, too, on efficiency in Government, and a forward-looking program for a
stronger America--an America whose people know good health and prosperity--and
who are secure, day and night, from fear at home or abroad. That is the aim of this
tax program.
That goal, my fellow citizens, is a goal worthy of our people.
Exhibit 34, --Letter of Secretaryof the Treasury Humphrey,
March 17, 1954, to Speaker of the House of Representatives, Joseph W. Martin, J r , , urging enactment of the
tax revision bill
My dear Speaker Martin: The House of Representatives is now debating the tax
revision bill granting relief to millions of taxpayers as well as the extending of the
52 percent rate on corporations. I want to reemphasize some of my thoughts as to the
vital importance of this bill. I feel as strongly as I can that it is in the long-run interests
of the American people that this bill be enacted substantially in its present form.
This program has been developed by the House Ways and Means Committee, under
Chairman Daniel A. Reed, working with the administration after months of smdy,
hearings, and careful analysis.
There is a substantial amount of misinformation circulating about one proposal in
the revision bill. This is the proposal to reduce by a modest amount or percentage
the existing double taxation on dividend income.
This is not something new. Both major political parties have for almost twenty
years recognized the unfairness of double taxation of dividends.
1. President Roosevelt recognized the inequity of double taxation of dividends in
his tax message of March 1936.
2. The House Committee on Postwar Policy and Planning recommended consideration
of the elimination of double taxation in its reports of both 1944 and 1946. This committee, under Democratic chairmanship and composed of 10 Democrats, including
Congressman Cooper, the ranking Democrat on thepresent committee, and 8 Republicans,
said that "consideration should be given to the elimination of the present double
taxation of dividend income" and that this tax reform "would not only correct an inequity
in the present tax structure but also provide an important stimulus to risk capital."
3. The Committee for Economic Development, in its November 1947 tax report,
described double taxation of dividends as "gross inequity," and pointed out that its
existence encourages business financingby borrowing rather than the issue of securities,
which "increases the vulnerability of the economy to serious deflation and unemployment."
4. The minority report of the House Ways and Means Committee in 1948, a minority
which then included many of the present Democratic members of the Ways and Means
Committee, supported relief from double taxation of dividends. Their report suggested
EXHIBITS
225
a comprehensive revision of the entire Federal tax system and listed "such important
matters as the double taxation of dividends" as among "needed amendments."
5. Organizations ranging from the American Farm Bureau Federation to the Investors
League and the American Retail Federation have opposed double taxation of dividends
in hearings before the Congress from 1947 to the present.
As President Eisenhower told the Nation Monday night, the relief provisions for
double taxation of dividends "will be important to allof us, whether our savings are
large or small."
There are 6-1/2 million stockholders among the 47 million people now on the Federal
income tax rolls, so the number of taxpayers who will benefit from the removal of
this inequity is large, both in numbers and in percentage. But the most important thing
is what encouraging incentive to invest means to the fumre of our economy. Somebody
has to provide between eight and ten thousand dollars to provide the tools and facilities
to give one American a job. As tax inequities discourage people from investing their
savings, there is just that much less money to provide those tools and facilities.
Investments make jobs. It keeps millions of workers now engaged in heavy industry
at work at their present jobs and it creates new jobs with the tools which heavy industry
makes. To encourage investment is in the best interests of all Americans and not a
selfish short-sighted advantage to a few.
This well balanced tax program is the cornerstone of the entire program of this
administration as proposed by President Eisenhower in his State of the Union and
other messages. It is designed to make America more secure, both from without and
from within, and a better, safer, more really prosperous country for us all to live in.
I am sure that every Congressman in voting on this vital bill will be guided by his
highest sense of the national interest.
Sincerely,
G. M. HUMPHREY,
Secretary of the Treasury.
Exhibit 35.--Statement by Secretary of the Treasury Humphrey before the Senate Finance Committee, April 7,
1954, on the tax revision bill (H, R, 8300)
The Treasury appreciates the opportunity to tell in open session here today why
we think the tax revision bill now before your committee is so tremendously important
to the future of this country. Before I go into details of the revision bill and the reasons
why it should be enact(2d, I would like to look for just a minute with you at the hodgepodge.
which is our present tax system and how it got to be that way.
Our tax laws were last completely rewritten in 1874. It is obvious that some of the
tax laws of 80 years ago, when the total Federal tax take was $266 million, might very
well not be proper tax laws in 1954, when the tax take is upwards of $60 billion. And
it is also true of many later provisions.
Many of the specific provisions of the present Internal Revenue Code have outlived
their usefulness. They now work hardships on millions of individuals. They also reduce
the incentive for those in business to try new things or tp improve the way they are
doing things at present. We realize that some of the present provisions of the code
were adopted to raise money quickly during periods of heavy spending for war purposes.
But we have wound up with an overall tax system which has many defects.
The fact that our tax system needs revision is not something, incidentally, that the
Republican Party has just suddenly proposed.
For years, congressional committees, with Democratic Chairmen and Democratic
majority membership, have recommended revision. And Democratic minority members
of the House Ways and Means Committee in 1947-48, when the Republicans were the
226
1954 REPORT OF THE SECRETARY OF THE TREASURY
majority in Congress, also recommended revision and specifically listed double taxation
of dividends and more flexible depreciation as items needing prompt consideration.
The general tax revision bill now before you, in other words, is not an arbitrary
proposal of this administration. Most of its major provisions have been developed
after long objective smdy and--in the absence of compelUng political reasons to the
contrary--have, over the years, been supported on both sides ofthe aisle in both the
House and the Senate.
With most sincere conviction, I say that a modernization of our tax structure, as
provided in part by the present tax revision bill, is something which this Nation must
have for continued growth and prosperity.
The terrific importance of the tax strucmre upon our economy is obvious when we
stop to think that 25 percent of the national income now goes for Federal taxes. With
this larger proportion of our national income going into Federal Government, it is only
sensible that the tax laws provide the fewest possible hardships for individual taxpayers.
It is also important that the tax laws include the fewest possible drags on the wheels
of American ingenuity and business in going ahead with new and better things under
the free enterprise system which has made this country great.
For the future of our country, we must get out of our tax system as many of the
inequities to individuals and barriers to economic growth as we possibly can. That
is the purpose of the tax revision bill before you. There a r e many other changes in
the code which we will continue to smdy and make further recommendations on in the
years ahead. But this is a good start in cleaning up what at present is a very messy
and stifling national tax structure.
In addition to straightening out the many inequalities of the tax code, we will keep
working toward further cuts in total taxes required. And when we have cut spending
so that we can cut taxes even further, we will then recommend that these tax cuts
be made in rates, because it is in rates that the principal increases have been made
in the past 15 years.
The general revision bill is only a part, but a very vital part, of our entire tax program. And this tax program, as the President said in his March 15 tax broadcast, is
"the cornerstone" of the administration's entire effort. It is a whole tax program
which, when we include some excise cuts to which we were opposed, will make effective
tax cuts of $ 7.4 billion this year.
As the President pointed out at his news conference last week, this is the largest
total tax cut made in any year of our history.
The spending program of this administration's 1955 budget is $12 billion less than
called for by the 1954 budget we found when we arrived. And it is $8.5 bilUon less than
was acmally spent in fiscal 1953.
Without these savings, there could have been no tax relief for anyone. Because of
these savings, tax cuts of more than $ 7 billion have been possible.
On January 1, taxes were cut by $5 billion by the reduction in individual income
taxes and the expiration of the excess profits tax. The tax revision bill which we are
discussing specifically today, while reforming the tax strucmre. will also result in
reductions of $1.4 billion. We should note, also, that attached to this tax revision bill
is the continuation of the corporation income tax at the 52 percent rate, an extension
which will net $1.2 billion this year, or almost enough to pay for the entire cost of
the revision bill. This hardly makes the bill a "giveaway to business" as some have
called it.
The cost of the revision bill was provided for in the Budget Message (page M28),
with a net loss from individual taxes of $ 585 million and a net increase in collections
from corporate income taxation of $570 million, reflecting both the continuation of the
52 percent rate and revision measures. Additional items adopted in the House increase
the revenue loss from individual income taxes by $ 193 million.
There are three main points about the general revision bill:
First, it is designed as a reform of the tax strucmre and not a tax reduction bill.
We must keep this in mind as we hear the arguments against it which are based on the
EXHIBITS
227
misinformation that it is cutting taxes in what some people think is the wrong way. It
is a reform program which has been proposed for years and years as needed reform.
Second, it helps millions upon millions of taxpayers who have been plagued by unjust
and unfair hardships over many, many years.
Third, and most important of all, it will help our economy to grow; it will help new
businesses to start, old businesses to expand, all businesses to modernize, and so
help the creation of more and better jobs and better living for everyone.
A few specific provisions wiU show how millions of various types of Americans will
be benefited by specific proposals.
Some 1,300,000 taxpayers will benefit by a change which allows a child to be continued
as a dependent even if he earns more than $ 600 a year.
Some 1,500,000 people will benefit from fairer treatment for retired persons on
pensions.
Some 8,500,000 ;people will benefit from larger deductions for medical expenses.
Some 1,600,000 {)eople will benefit from allowing more liberal deduction of interest
under installment pjrchase contracts.
Some 500,000 farmers will benefit from more liberal allowance for soil conservation
expense.
Some 6-1/2 million of the 47 million taxpayers will benefit from the partial relief
from double taxation of dividends.
Some 9,600,000 individuals, as well as 600,000 corporations, will benefit from more
flexible provisions for depreciation..
The main purpose, as I said, is to help the economy expand and provide more jobs
and better living.
The tax structure in this country has reached the point where initiative is seriously
stifled.
The feamres in this tax revision bill which make it more attractive for the man who
saves money to invest, or more attractive for the businessman to replace his present
inefficient machinery, are the sort of things which can help this economy keep growing.
Let's look at two of these controversial so-called business provisions for a moment.
The recommendation to reduce double taxation of dividend income will encourage
the investment of savings so that business can expand and create more jobs. Largely
because of tax restrictions, the trend in recent years has been sharply away from
equity financing towards borrowing. This is the wrong way for America's economy
to finance its expansion.
Tax relief which will encourage investors to invest in the growth and development
of old and new American businesses is in the interests of all the citizens.
A great many Americans receive dividends. Three-fourths of all individuals who
get dividends earn less than $10,000 a year. A recent United States Steel Corporation
survey showed that 56 percent of its 280,000 stockholders earn less than $5,000 a
year. Relief to stockholders is not limited to just a few wealthy individuals.
The method of relief proposed in this bill is a partial restoration of the treatment
originally accorded dividends in 1913 and kept in the law until 1936. During that entire
period dividends were exempt from the normal individual tax which was typically the
first bracket tax. The 10 percent credit against tax contained in the present bill will,
in effect, exempt dividends from one-half of the present first bracket rate of 20 percent. This is the same general method of relief adopted in Canada in 1949, but goes
only half as far, except in the case of the small stockholder who by the terms of this
bill gets the first $ 100 of dividend income completely exempt.
It is pne of the provisions which will help the expansion of business and the making
of more jobs. We only need to remember that the average cost of providing plant and
equipment for one job in America is between $8,000 and $10,000. It is certainly in
the interest of all Americans that the incentive to provide the money to create more
and more jobs is stimulated so that our increasing numbers of available workers can
have the oppormnity for employment and wages at the American high standards.
Another provision of this bill allows more flexible changes for depreciation. This
proposal will benefit 9,600,000 individuals, farmers, small businessmen, etc., as well
228
1954 REPORT OF THE SECRETARY OF THE TREASURY
as 600,000 corporations. Here again, the purppse is to stimulate employment, plant
expansion, and modernization.
The total deduction over the life of the property will not be increased and only the
same total sum will be given as a tax deduction, but less restrictive rules than at
present for writing off the investment in machinery or plant will encourage modernization and rebuilding of more efficient plant equipment and the creation of more jobs
for the production of better and cheaper things for living.
Other countries have used special depreciation allowances with great advantage to
encourage investment in new equipment and modernization of old plant and equipment.
The change in tax allowances for depreciation in this bill are quite limited compared
to depreciation treatment in countries such as Canada, Great Britain, Sweden, and
Germany.
Nothing can so add to our national strength and preparedness as modernization of
the whole industrial plant in America. There is nothing that can make more sure more
jobs at which millions of people can earn high wages by producing more and better
goods at less cost.
Our tax program has two objectives:
(1) Revision to reduce hardships on individuals and barriers to incentive; and
(2) Reduction of excessively high taxation as rapidly as it is justified by cuts in
Government spending.
About 70 percent of all we spend is for security. We have made some savings in
this area and we will make more, but no one wants to endanger our security by cutting
expenses unwisely.
The only way the Government can save money is to reduce its spending. This means
either reduction of people from the Government payroll or buying less material, which
in turn means that the people who produced that material are temporarily out of work.
The dollars that are saved in Government spending reduce work for the man who
used to get those dollars. So that big reductions cannot be made quickly without seriously
dislocating the economy.
As we cut Government spending, we must remrn to the people in tax cuts, as we are
now doing, the billions of dollars in Government money saved, so that it can then be
put to making new jobs for the people who previously received their income from
Government spending.
People who have been making things for the Government for killing must, in this
period of transition, now get jobs making things for living. Those who were making
tanks and guns must now make washing machines and automobiles. A great transition
must take place.
To have real prosperity in America, we cannot stimulate consumer buying alone.
Large tax cuts to millions of individuals just to buy consumer goods is not enough.
Millions of people in this country earn their living making heavy things--big lathes,
generators, heavy steel, and machinery that consumers do not buy. Such things are
purchased by investors. Our tax program not only returns billions of dollars to consumers but also seeks to stimulate the investment of savings to buy the products of
heavy industry, in the production of which so many millions of Americans get their
livelihood.
This administration is opposed at this time to any further tax cuts than those proposed in this bill. We are particularly opposed to any increase in personal exemptions,
for two simple reasons:
First, we cannot stand any further loss of revenue. An increase in exemptions of
$100 would cost about $2.4 billion. An increase to $1,000 would cost nearly $8 billion.
Secondly, it would entirely remove millions of taxpayers from the tax rolls. The
President said in his broadcast that "thegood American doesn't ask for favored position
or treatment. . . . Every real American is proud to carry his share of the burden. ... I
simply don't believe for one second that anyone privileged to live in this country wants
EXHIBITS
229
someone else to pay his own fair and just share of the cost of his Government." When
a further reduction in taxes is justified it should be made by reducing the rates.
It has been suggested that the current economic simation requires some type of tax
action different from that proposed in this tax revision bill.
Just what is the status of our economy at the moment? There is frequent discussion
about unemployment and how things are mrning down. We can be misled about how bad
business really is and how much pickup can be niade. This doesn't mean that I do not
realize that a man who is out of a job is in serious trouble. I do not discount his difficulties in any way. lliis administration is concerned to see that everyone who wants to
work can have employment. But let me call your attention to these plain facts:
In January and February of this year, there were more people employed in America
than in any January and February in the whole history of this country except in January
and February of last year. In January of 1953 there were 60.8 million people employed,
and in February of 1953, 61 million. In January of this year there were 59.8 million
employed, and in February, 60.1 million. I repeat this. Except for one year, 1953,
January and Februairy of this year had more people employed than any January and
February in our history.
Some economic indicators show downward trends in comparison with this same time
last year, which was the highest year in our history. The index of industrial production
is down 8 percent; civilian employment is down a little, as we have said; and the gross
national production is down about 1 percent.
Yet construction is running ahead of 1953. Business plant and equipment plans for
1954 are at a very high level. Personal income is running a very little higher than a
year ago. And the general price level has been exceptionally stable.
Some people, fearing further downward trends, ask when the Government is going
to get " i n " and do something about it.
The fact is that the Government is always " i n . " There are so many things that the
Government does or does not do that have a very real bearing on the state of the economy.
There are many things that the Government has already done; things recommended
which are now before the Congress; and things which the administration has proposed
either for the future or for action by executive agencies, all of which have and will help
strengthen our economy.
First, in things already done, we should look at an area of Government action very
close to us at Treasury: the area of flexible debt management and monetary policy.
The Federal Reserve Board, with its responsibility for monetary policy, reduced
reserve requirements of member banks substantially as early as last June to make
sure that there would be no bar to the proper volume of bank credit necessary to a
growing economy. The Federal Reserve has purchased short-term Government securities in the market, to increase bank reserves, for a considerable period. The rate at
which bankers can borrow from the Federal Reserve was reduced in February.
Treasury debt management also has been a positive factor, and Government interest
rates have fallen to the lowest point in many years. Last July the Treasury had to pay
2-1/2 percent for a 8-month loan. In February we paid the same rate for a loan running
almost 8 years. And our last one-year money borrowing was at 1-5/8 percent. Ninetyone-day bills cost close to 2; 1/2 percent last June; now they are down to 1 percent.
In the current economic environment the Treasury has purposely done its financing
in a way that would not interfere with the availability of long-term investment funds
to corporations. State and local governments, and for mortgages to home owners. We
want to be. sure that plant and equipment, home building, and other construction all
have ample available funds. The fact that construction thus far this year is running so
high demonstrates hov^ effective these policies are.
We have the Small Business Administration to ease the proper handling of credit
in this particular and vital part of our economy.
Perhaps the biggest way that the Government is continually " i n " the economy is in
this matter of taxes. We have noted that tax cuts effected this year will total $7.4
billion, the largest total dollar tax cut in history. This saving of such huge amounts
230
1954 REPORT OF THE SECRETARY OF THE TREASURY
of money for peacetime use should have a tremendously beneficial effect in stimulating
the economy.
Some of the things recommended by the administration and now before the Congress
which will have considerable bearing upon the economy are as follows:
The President has asked legislation to broaden the base and benefits of old-age
insurance. This legislation is currently before the House Ways and Means Committee.
In the housing bill, which is currently before the Senate, are two administration
proposals affecting the building of homes. We have asked that the Government be allowed
to change the terms of governmentally insured loans and mortgages as circumstances
require. We have asked that a secondary home mortgage market be established.
The administration has urged that the highway construction program be increased
and a record sum has already been voted by the House.
The administration is recommending a positive program for flexible price supports
for the American farmer. The President's program is being actively considered by
both the House and the Senate.
The administration has taken specific actions within the executive departments and
with other governmental bodies to do things that will help strengthen our economy.
We have recommended legislation to improve unemployment insurance and the
administration has asked the governors of the various States to study the possibility
of making payment scales more realistic.
A committee for State, local, and Federal planning has been appointed and is now
at work.
The President has asked the Office of Defense Mobilization to redirect its stockpiling
program, which will help distressed mining areas.
The administration is going ahead with improved planning of its public works programs which can be available for any emergency.
Last but far from least, the tax revision bill which we are specifically considering
today, will upon enactment have a tremendously helpful effect upon the economy. While
it is basically a long-overdue tax reform bill, it can help greatly the current economic
transition.
There are many business projects around the country which are being held up pending
final decision on this revision bill. It is imperative that the earliest possible action
should be taken. When the bill is enacted, these new or expanding businesses can go
ahead with their plans, which will result in the creation of thousands of jobs and the
vital expansion of our economy.
The Government is always " i n " the economy. That is one ofthe facts of life today.
But we must remember the fundamental principle that the best government is the least
government.
It is the citizens of our free economy who, through their initiative and ingenuity,
must make sure that we keep moving ahead with higher employment, higher pay, and
better living for all. The steps the administration has thus far taken, tax cuts, monetary
and debt management operations, as well as the other items outside the fiscal field,
are steps in the direction of restoring more freedom to our economy. And in more
freedom in our economy is the strength of our Nation--not only in the current transition
period but in the long run as well.
Exhibit 36, --Letter of Secretary of the Treasury Humphrey,
Aprils, 1954, to the Chairman of the Senate Finance Committee relative to the Treasury* s participation in resolving
technical suggestions concerning the tax revision bill
Dear Mr. Chairman: I am glad that you have announced that technical representatives
of the Joint Congressional Committee on Internal Revenue Taxation, and technical
people from the Treasury staff will constimte a working group to consider all technical
criticisms or suggestions regarding the tax revision bill which may be made.
The Treasury is very glad to participate in this method of resolving technical
suggestions concerning this bill. As you said this morning, in revising anything as
EXHIBITS
231
complicated as this lengthy measure, there were bound to be some technical, clerical
or even printing errors. We all want to get these things corrected to provide the best
possible final biU.
The earliest possible enactment of this bill is imperative to assist in the vital expansion of our economy and creation of thousands of jobs. Straightening out of minor
technical defects by this group which you have announced should materially help in
prompt consideration of this vital bill as a whole.
With best personal regards.
Sincerely,
G. M. Humphrey,
Secretary of the Treasury.
Exhibit 37.—Remarks by Deputy to the Secretary Burgess
before the Subcommittee on Economic Development of
Committee on Economic Matters, Tenth Inter-American
Conference, Caracas, Venezuela, March 13, 1954
Mr. Chairman and Delegates, I ask permission to say a few words, particularly in the
matter of our tax programs, which might be of interest to the delegates.
This is the first opportunity I have had as a representative of the United States
Treasury to speak for our delegation, and I should like to pay my respects to the
presentations which have been made here by the several delegates. It has been a liberal
education for us to sit here and hear the discussions. As an old smdent of economics,
I have been greatly impressed by the economic analysis contained in your presentations.
I should like also to express appreciation for the frankness that the delegates have shown
from time to time in telling us what they really thought about these matters. For in that
way, we shall continue to make progress.
I think you might all be/inte rested in an announcement which I wish to make on behalf
of General Edgerton, Managing Director of the Export-Import Bank. A loan of $12
million has been authorized by the Export-Import Bank to the Cuban Electric Company.
This is additional evidence that the Export-Import Bank is continuing its lending
activities.
When the new administration took office in Washington a little over a year ago, all
of us were determined that we should have a very thorough review of our entire tax
program. We, therefore, gathered together a group of the best experts that we could
find and for more than a year they have been working in close consultation with our
congressional committees. They have been making a complete revision of our entire
revenue code. It means a rewriting of something like 1,000 pages of our tax law.
The President in his message to Congress suggested some 25 major changes in the
tax laws. Since that message, the representatives of the Treasury have been working
with the Ways and Means Committee of the House of Representatives and, as a consequence, the committee has reported a biU which embodies substantially all of the
recommendations of the administration. The bill should be up for consideration of the
House of Representatives during the coming week. Ihave gone into some detail on the
background to indicate the amount of thought and smdy that has been given to the entire
tax simation.
The most important part of this smdy for this Conference is the proposals dealing
with taxation of foreign income. The following is a quotation from President Eisenhower's message to the Congress:
"22. Business income from foreign sources: I recommend that the taxation of
income from foreign business investments be modified in several respects. The investment climate and business environment abroad are much more important than our
own tax laws in influencing the international flow of capital and business. Nontheless,
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1954 REPORT OF THE SECRETARY OF THE TREASURY
our capital and management know-how can be helpful in furthering economic development in other countries, and is desired by many of them. Our tax laws should contain
no penalties against United States investment abroad, and within reasonable Umits
should encourage private investment which should supplant Government economic aid.
"SpecificaUy, I recommend the foUowing new provisions in our taxation ofbusiness
income from foreign sources:
"(a) Business income from foreign subsidiaries or from segregated foreign branches
which operate and elect to be taxed as subsidiaries should be taxed at a rate 14 percentage points lower than the regular corporate rate. This lower rate of tax should
apply only to earnings after January 1, 1954.
"(b) The present definition of foreign taxes which may be credited against the United
States income tax should be broadened to include any tax other than an income tax
which is the principal form of taxation of business in a country, except mrnover, general sales or excise taxes, and social security taxes. This country, by its tax laws,
should not bring indirect pressure on other countries to adapt their tax systems and
rates to ours.
"(c) The overall limitation on foreign tax credits should be removed. This Umitation
discourages companies operating profitably in one foreign country from starting business in another foreign country where operations at a loss may be expected in the
first few years.
"(d) Regulated investment companies concentrating on foreign investments should
be permitted to pass on to their stockholders the credit for foreign taxes-which would
be avaflable on direct individual investments."
If these recommendations are enacted by the Congress, business income derived by
United States corporations from sources abroad wiU be taxable at a rate equal to 14
percentage points less than the rate prevailing at the time with respect to corporate
income in the United States.
For illustration, instead of the present normal 52 percent tax on corporate income,
the rate applied to earnings from foreign operations wiU be only 38 percent. At the
same time, the long established poUcy of granting a tax credit for certain taxes paid
abroad wfll reduce the effective rate in most cases to something much less than 38
percent.
These tax benefits wiU be made avaflable to United States corporations operating
abroad either through a branch or through a corporate entity of the foreign country,
as may be appropriate under local conditions. When the operation is conducted through
a foreign corporation, it is proposed to permit the United States corporation to hold
as littie as ten percent of the stock of the operating company and stiU obtain these
tax benefits.
Another proposal of the President would recognize, for tax credit purposes, the tax
regimes of countries which rely on taxes other than income taxes as the principal
source of revenue from a particular business activity. This would reduce the burden
of the United States tax even further below the level I mentioned earUer.
We beUeve that, unilateraUy, the United States is taking aU steps it could reasonably
take within the effective limits of tax incentives to induce its capital to seek ouflets
in countries in which conditions are such as to offer attractive and profitable uses
for foreign capital.
BilateraUy, there are further steps the United States is prepared to take. I refer
to tax treaties for the aUeviation of double taxation. These treaties a r e an integral
part of the United States program to create a favorable tax cUmate for international
trade and business. As of today, the United States is a party with foreign countries
to fifteen treaties relating to income taxes, ten treaties relating to estate taxes and
death duties, and one treaty relating to the taxation of gifts. Income and estate tax
treaties with three other countries are now in the closing stages of negotiations.
Unformnately, we have no treaty with any Latin American republic. Several promising
negotiations failed to materialize to the point of execution of an agreement. We trust
that, in fiirtherance of their desires for the inflow of private capital, the Latin American
EXHIBITS
233
republics wiU be reiceptive to our offer to meet and attempt to work out mumaUy
equitable arrangements for clarifying international tax relationships andfor minimizing
double taxation. Such action would afford business and investors further assurance of
our desire to create conditions conducive to a free flow of investment and trade.
We have with us on our staff, Mr. Walter Sauer, Legal Adviser of the Treasury
on International Tax Problems. He is ready to have discussions with any of the delegations which would Uke to explore these matters further.
I cannot conclude these few remarks without again expressing appreciation of so
many of the statements which have been made here. As a central banker, may I, in
particular, express appreciation for the statements which so many of you, have made
so effectively as to the necessity for sound, internal policies with respect to budgets
and with respect to monetary measures as a necessary basis for economic development and for the stimulation of the investment of adequate funds to carry forward
such development.
I believe, gentlemen, we are buflding a soUd and sound basis for the progress which^
we are destined to make working together.
Exhibit38.--Statement by the President, August 16, 1954,
upon signing H . R , 8300, the Internal Revenue Code of
1954
This biU which today becomes law is the exceUent result of cooperative efforts by
the Congress and the Department of the Treasury to give our tax code its first complete
revision in seventy-five years. It is a good law. It wiU benefit aU Americans.
This law brings uix reUef to large numbers of our citizens. It is, in fact, part of
a comprehensive tax program which, since January 1 of this year, wiU have provided
for tax cuts totaling $7,400,000,000, the largest doUar tax cut in any year in the
Nation's history.
It is a law which wiU help miUions of Americans by giving them fairer tax treatment than they now receive. For example:
The parents of dependent children who work can continue to claim their children as
dependents, no matter how much the children earn.
Retired people and widows living on retirement income other than social security
wiU receive a tax credit which wfll in effect be equal to the tax credit now given to
people Uving on social security income.
Taxpayers wiU now be able to claim as dependents people who are not related to
them, so long as they provide more than one-half of such dependents' support.
Farmers active in. soil and water conservation wiU be able to deduct from their
income the cost of such conservation work, up to 25 percent of their gross income.
People with large medical expenses wiU now be able to deduct from their income
aU such expenses which exceed three percent (rather than five percent) of their incomes, and the maximum amounts deductible wfll be twice as large as they were in the
past.
Working widows and many other mothers, with chfld-care expenses wiU be able to
deduct from their income up to $600 a year for the costs of taking care of their
children.
People receiving sick benefits paid by employers wiU not have to pay any tax on such,
income up to $ 100 a v/eek.
Jn addition to removing inequities in our tax system, this law wiU help our economy
expand and thus add materiaUy to the strength of our Nation. It wiU help our people
produce better goods at cheaper prices--and it wfll help to create more jobs.
This economic growth wiU be fostered by such provisions as more flexible depreciation and better tax treatment.of research and development costs, thus encouraging
aU business, large and smaU, to modernize and expand. And, partial reduction ofthe
2 34
1954 REPORT OF THE SECRETARY OF THE TREASURY
double taxation of income from dividends wfll stimulate the investment of savings by
our private citizens and so make available the thousands of doUars that provide the
plant tools and power needed for each new job in America.
Numerous other provisions wiU also help to expand the economy. These include the
easing of the so-caUed penalty tax on accumulated eamings when necessary for
legitimate business purposes; the extension of the carryback of net operating losses;
and the greater flexibflity of the tax treatment of recapitalizations and reorganizations.
Almost balancing the revenue lost through these tax reductions is additional revenue
of $ 1.2 bflUon gained by an extension of the 52 percent tax on corporation profits. The
new law also closes more than fifty loopholes through which, in the past, some taxpayers may have attempted to avoid their fair share of the tax burden.
And, at long last, the American people wiU have, because ofthis law, much needed
clarification of many tax provisions which previously have been subject to controversy.
I congramlate the Congress and its leaders for having enacted this monumental
tax revision. Its passage is a tribute to a Congress which in this session has made
so many major contributions to the prosperity and security of the people of our country.
Exhibit 39.—Remarks by Under Secretary of the Treasury
Folsom before the American Management Association,
New York City, August 19, 1954, on the philosophy of
the new tax bill
PHU-OSOPHY OF THE NEW TAX BILL
On Monday of this week, the President signed the tax revision bfll which constimtes
the first complete overhaul of the Federal tax system since long before the mm of the
cenmry. Tax revision, as you know, has had an important place in the President's
program.
The document, which emerged from the Congress undei: the titie "An act to revise
the internal revenue laws of the United States," is a new point of deparmre in the
evolution of our tax system. I should like to discuss some of the principles basic to
this legislation.
In his Budget Message to the Congress early this year, the Presid^t stated his
philosophy of tax revision as foUows:
"Revision of the tax system is needed to make tax burdens fairer for miUions of
individual taxpayers. It is needed to restore normal incentives for sustained production
and economic growth. The country's economy has continued to grow during recent years
with artificial support from recurring inflation. This is not a solid foundation for
prosperity. We must restore conditions which wiU permit traditional American initiative and production genius to push on to ever higher standards of Uving and employment. Among these conditions, a fair tax system with minimum restraints on small
and growing businesses is especiaUy important."
The job was to translate these guiding principles into the many detailed provisions
of the law.
I.
The background
This task has been under way since the spring of 1953 when the Treasury, acting at
the President's direction, joined with the congressional tax committees and their staffs
in a comprehensive review of the entire Internal Revenue Code.
General tax revision was long overdue. The tremendous development of our tax
system during the periods of depression, war, and defense bufldup had been haphazard.
EXHIBITS
235
Inequities and inconsistencies crept in. Substantial impediments to economic development appeared. The law itseU became complex, cumbersome, and, in many cases,
unclear.
These conditions produced a vast number of smdies and suggestions for reform by
individuals, professional groups, and congressional committees. An extensive accumulation of materials of this type existed in the ffles of the Treasury Department and the
congressiCHial tax st^iffs. The answers to a questionnaire sent out by the Joint Committee on Internal Revenue Taxation and the hearings of the Committee on Ways and
Means in the summer of 1953 brought into focus most of the problems with which we
had to deal and provided additional valuable material for our smdies.
Throughout our work on the revision biU, we consulted extensively with the individuals
and groups best informed on the specific problems under review. We made a particular
effort to seek out criticism immediately after the House of Representatives had acted
on the proposed new code. We were aware of the dimensions of the job, as weU as the
fact that in a good miany areas we were proposing substantial innovations. The advice
received at that time from professional associations and weU-informed individuals
was most helpfiil in revising certain sections of the biU while it was before the Senate.
II.
The basic
objectives
The basic purpose of our work was tax revision, not tax reduction. Indeed, the bulk
of the administration's tax reduction program was already in effect when the revision
biU was passed by the House. Tax reductions made during 1954 total $7.4 biUion. This
is the largest total doUar reduction during a single year in the country's history, and
reflects the administration's poUcy of passing on to taxpayers the savings currentiy
being made in governm^ital expendimres. Since it would have been unwise and irresponsible to make reductions in excess of budgetary economies, the revenue loss which
could be absorbed under the revision biU was limited. At the same time, the continued
high level of taxation necessitated by our defense needs made it extremely important
that the revised law he as sound as we could make it.
The revenue losing provisions of the revision biU iQVolve a loss of about $ 1.4 bfllion
in the fiscal year 1955. However, the biU also extends for one year the 52 percent
corporate rate which cuts the net loss in 1955 to less than $200 miUion.
In addition, the bfll reduces the Treasury's debt management problem by providing
for a further gradual acceleration over a five-year period in the tax payments of
corporations with tax UabiUties in excess of $100,000. Although less than 5 percent
of the corporations are subject to the new schedule, tbey account for 85 percent of
the total corporate income tax UabiUty. When the transition to the new system is
completed, these large corporations wiU be paying haU of their taxes in the second
haU of the year durilng which the liabiUty arises and the balance during the first haU
df the foUowing year. This wfll reduce materiaUy the excessive concentration of the
Federal Government's receipts during the first 6 months of the calendar year.
The chief purposi^s of the revision were to: (1) Remove inequities, (2) reduce
restraints on economic growth and the creation of jobs, (3) close loopholes, and (4) clarify
the law. I want to fllustrate how each of these purposes has been achieved in the new
code.
A . T h e r e m o v a l of i n e q u i t i e s
Our efforts to remove inequities have brought fairer treatment and reduced hardship for milUons of t^ixpayers.
Parents need no longer be on guard lest a chfld be disquaUfied as a dependent because
his vacation or part-time earnings exceed $600. The new law waives this income test
where the dependent is the taxpayer's child under the age of 19, or is a smdent.
A widow or widower who must maintain a home for dependent chfldren wfll not be
deprived abruptiy of the benefits of income splitting because of the death of the other
236
1954 REPORT OF THE SECRETARY OF THE TREASURY
spouse. Instead, the tax remrn of the survivor wiU, for a period of 2 years, continue
to be treated as though it were the joint remrn of husband and wife and, therefore,
eligible for the fiiU benefits of income splitting.
Widows, widowers, and working wives in low income famiUes wfll be permitted to
deduct expenses, incurred whfle at work, for child care. Widows and widowers may
deduct amounts paid up to a maximum of $ 600 a year for the care of chfldren under
12 or any incapacitated person. In the case of working wives, the deduction is reduced
by the amount by which the combined incomes of the husband and wife exceed $4,500.
Taxpayers with heavy medical, dental, or hospital bills wiU receive more generous
treatment. The excess of such expenses over 3 rather than 5 percent of the taxpayer's
income^wiU be deductible, and the maximum deduction aUowed is doubled.
Restrictions on the deductibiUty of charitable contributions have been eased. In
addition to the 20 percent of the taxpayer's income aUowed under the previous law, an
extra 10 percent is aUowed for contributions to hospitals, churches, or educational
instimtions.
Discrepancies between the tax treatment of social security benefits and other forms
of retirement income have been reduced. Retired persons receiving income from
pensions, annuities, interest, r ^ i t s , or dividends wiU be entitied to a 20 percent credit
against tax on as much as $1,200 of such income. This wfll exempt many elderly r e tired persons of modest means from the income tax. The credit is reduced for the
amount of social security benefits and other exempt forms of retirement income in
order to prevent dupUcation of exemptions and equalize the tax treatment of various
types of benefits.
Under the old law, taxpayers were denied deductions for the interest included in
carrying charges on installment purchases unless the interest element was separately
stated. The new law specificaUy permits the deduction as interest of a portion of the
carrying charges, up to 6 percent of the unpaid balance.
The new law makes it clear that premiums paid by employers for health and accident
plans are not to be taxed as income of the employee.
Under prior law, sickness and accident benefits financed by the employer were
exempt if paid under an insured plan but were taxed if provided under a noninsured
plan. Under the new law, benefits paid under both types of plans wiU receive the same
treatment. Thus, reimbursements for medical expenses and for permanent injury
are excluded from income. Sickness benefits paid in lieu of wages are exempt up to
$ 100 a week.
The new law eUminates inequities in the treatment of annuities which existed under
the 1939 code. The purchaser of an annuity wiU be aUowed a uniform annual exclusion
sufficient to permit him to recover his entire capital tax free over the period of his
Ufe expectancy.
Farmers are given the option to deduct the costs of sofl and water conservation as
a current expense up to 25 percent of their gross income. Under the old law these
costs generaUy had to be capitalized and could be recovered for tax purposes only upon
sale of the land. This change wiU be of direct benefit to farmers and wfll benefit aU
of us indirectiy by encouraging sound conservation practices.
These measures are iUustrative of the reUef given individual income taxpayers under
the new legislation. Substantial assistance has been provided in unusual hardship cases
at a relatively modest cost. A great deal has been done to make the law more certain.
Moreover, the taxpayer has been given an additional 30 days in which to ffle his
remrn; about a miUion people have been reUeved of the responsibflity of filing declarations of estimated tax; for those who must stfll file this remrn, the rules have been
made more reasonable and the penalties, when imposed, less compUcated and severe.
B.
T h e r e m o v a l of d e t e r r e n t s t o b u s i n e s s e x p a n s i o n
The second objective of our work was the reduction of tax deterrents to the expansion
of investment in private business. This expansion is necessary for the production of
better goods at lower prices and the creation of more and better jobs. A number of
the provisions in the new law are focused on this objective. The most important of
these is a new and more realistic treatment of depreciation.
EXHIBITS
237
1. Depreciation.--The provision in the 1939 code relating to depreciation was brief
and general. It merely provided * 'a reasonable aUowance for the exhaustion, wear and
tear (including a reasonable aUowance for obsolescence) (1) of property used in a trade
or business, or (2) of property held for the production of income." The specific rules
governing aUowable deductions and procedures were left to regulations,and administrative practice. While various methods of apportioning the cost of the property over its
service life were periTiitted, limitations imposed upon alternate methods resulted in
the general use of the straight-line formula. This system, which spreads the cost
evenly over the asset's life, is simple, but the deductions which it aUows are frequentiy
at odds with the acmal facts. For instance, as everyone knows, a. large portion of the
value of a new automobfle disappears during the first year or two of its Ufe.
The failure of tax deductions under the straight-line formula to keep pace with t m e
depreciation was discouraging to plant modernization and economic progress, particularly when the investment was of a long-range character and involved a considerable
business risk. The unrealisticaUy slow write-off also aggravated the problem of financing expansion.
The new code wiU give taxpayers much greater latimde in the selection of methods
of depreciation and aUow a more rapid write-off of the tax basis of the property.
The taxpayer wiU be permitted to compute depreciation under the declining-balance
method at twice the straight-line rate. This wiU conform the aUowable deductions
more closely to t m e depreciation since about two-thirds of the cost wfll be written
off during the first half of the asset's Ufe, as compared with only one-half under the
straight-line formula.
While discussions concerning the new provisions have tended to concentrate upon
this declining-balance formula, specific provision has also been made for the use of
the sum-of-the-years'-digits method which in some respects is more Uberal than the
200 percent declining-balance formula. Moreover, any other consistent method wfll
be acceptable so long as it does not produce larger deductions than those aUowable under
the 200 percent decUning-balance formula during the first two-thirds of the service
Ufe of the asset. Systems of depreciation which were proper under the 1939 code are
specificaUy recognized under the new law.
A taxpayer who elects the 200 percent declining-balance method is given the option
to switch to straight-:Line depreciation at any time during the Ufe of the property. This
wiU assure recovery of the fuU cost over the seryice Ufe of the asset, a result which
would not always be obtained under the decUning-balance method. Hence, this option
removes a possible imipediment to the adoption of the declining-balance formula.
2. Double taxation of dividends.--The new law provides a degree of reUef from
double taxation of corporate dividends. This double taxation is a major injustice, a
penalty on equity financing, and a serious obstacle to business expansion.
We depend on risk capital for the development of new enterprises and the growth of
old ones. Large sums are needed to create new jobs. It is estimated that the average
cost of providing one job is weU over $10,000. Double taxation of dividends makes it
difficult to attract the risk capital necessary to create these jobs. It also encourages
corporations to finance themselves by bonded indebtedness, because interest can be
deducted for tax purposes.. In recent years over three-quarters of the outside financing
of industry has taken the form of bonded indebtedness. This makes the economy more
vulnerable in periods of business unsettiement.
Under the new code each stockholder wfll be permitted to exclude from his gross
income up to $ 50 of dividends and wfll be aUowed a credit against tax equal to 4 percent
of the dividends in excess of the exclusion. The amount of the credit is limited to 2
percent of the stockholder's total taxable income in 1954 and to 4 percent in later years.
The new law is a partial restoration of the treatment accorded dividends prior to
1936. When the first income tax law was enacted in 1913, a normal tax was imposed on
individuals at the rate of 1 percent. In addition, a tax was imposed on corporations at
the rate of 1 percent. At that time, dividends were completely free of the normal tax
in the hands of the individual because, as the committee reports on that act state, the
339256 O - 55 - 17
238
1954 REPORT OF THE SECRETARY OF THE TREASURY
corporation was merely the coUecting agent for the shareholder, and the income should
be taxed only once. This principle continued to be recognized in the income tax law
untfl 1936 with dividends being exempt from the normal tax but subject to surtax.
In 1936, in the confiision attending the enactment of the undistributed profits tax,
the exemption of dividends from the normal tax on individuals was aboUshed.
Our new law restores the historical concept of avoiding double taxation by adjusting
the tax of the individual dividend recipient, .but the amount of the reUef is comparatively
modest. It is by no means the equivalent of the pre-1936 normal tax exemption and is
much smaUer than either the 20 percent credit allowed under the Federal income tax
law in Canada pr the adjustment made under the British law.
Our new provisions are, nevertheless, a significant step in the right direction. The
$ 50 exclusion is a particularly important feamre because it wiU give smaU taxpayers
a proportionately greater incentive to invest in equity securities. It is extremely important for the growth and stabiUty ofthe Nation that equity fimds be more readfly available
to new and growing businesses and that the ownership of corporate enterprise be spread
even more widely among aU our citizens.
3. Research and experimental expendimres.—The 1939 code made no specific provision for the research and experimental expendimres which are so vital to the growth .
and increasing efficiency of American business. As a practical matter, large businesses
with regular research and experimental budgets have been able to deduct most of these
expenses currentiy. However, in the case of many smaU businesses unable to afford a
regular budget for research, doubt has existed concerning the deductibiUty of such expendimres. Moreover, when they were capitalized,, there was no assurance that they
could be amortized over a definite period or that an abandonment loss could be estabUshed. The new code gives aU taxpayers the option to deduct such expenses currentiy
or to capitalize them and write them off over a period of not less than 5 years.
4. Carryback of operating losses.—The new code wfll be fairer and less burdensome to businesses with irregular and flucmating earnings.. The period for the carryback of losses is extended from 1 to 2 years, thus providing, in combination with the
5-year carryforward, a total span of 8 years for absorbing a loss. The additional
carryback increases the possibflity of immediate reUef through tax refiinds when
business is losing money and needs the reUef most.
The new law also eUminates the requirement that the loss carryover be decreased
by an adjustment for the intercompany dividend credit, the excess of percentage over
cost depletion, and tax-exempt interest. These changes cut down substantiaUy the tax
disadvantages of businesses with uneven earnings, which are apt to be the unusuaUy
risky enterprises that are of such critical importance to the development of the economy.
5. Tax on unreasonable accumulation of surplus.—The changes in the tax on the
unreasonable accumulation of surplus wfll also contribute to the expansion of the
economy. Under the old law, the appUcation of the tax was uncertain, and its impact,
when imposed, extremely harsh. If the Government beUeved that the retained earnings
of a corporation were excessive, the taxpayer was required to demonstrate that this
was not the case. The necessary evidence was not always easy to assemble even when
the retention served a legitimate business purpose, particularly because the taxpayer
had to show that there was an immediate and specific use for the retained earnings.
The tax was therefore greatiy feared especiaUy by smaU business and tended to impede
and distort investment programs.
The continuance of this tax is necessary in order to prevent the use of the corporation
for avoiding the surtax on individual shareholders. However, under the new code the
taxpayer, by supplying information, can shift to the Government the burden of proof as
to reasonableness. Instead of having to show an immediate and specific need for the
retained earnings, the taxpayer wfll be required to show that the retained earnings are
necessary to meet "reasonably anticipated" business requirements. An accumulation
of $60,000 can be made without threat of penalty; and the tax, when imposed, wiU apply
only to the portion of the retained earnings found to be unreasonable.
EXHIBITS
239
By Uberalizing the law and clarifying the taxpayer's position, these changes wiU
eliminate the dismrbing influence which the penalty tax has had upon dividend and
investment poUcies.
The new depreciation rules, the dividends-received credit and its accompanying
exclusion, and other important revisions have removed or reduced serious obstacles
to new investment. ITie Nation wfll foUow with keen interest the way business avails
itseU of this opportunity to modernize and expand its plant and equipment.
C.
Loopholes
Our third objective was to close loopholes. This involves repairing more than 50
provisions in the old law which enabled taxpayers to avoid their share of the burden by
taking advantage of technicaUties.
1. Preferred stock bafl-out.—For example, taxpayers were able to use a device
commonly known as the "preferred stock bafl-out" to siphon off large accumulated
earnings from a corporation at capital gains rates. This was done by having the corporation issue to common stockholders a nontaxable dividend of preferred stock which was
later redeemed. The revised code taxes as ordinary income the proceeds of the sale
or redemption of preferred stock acquired in such transactions.
2. Purchase of a loss corporation.—The new code wiU also curb the trafficking in
net operating loss carryovers. Under the old law it was frequentiy possible for a successful business to reduce its tax UabiUty by purchasing a corporation which had lost money.
The new law eliminates the carryover when more than 50 percent of the stock of the loss
corporation is purchased by new owners within a 2-year period and the loss corporation
thereafter does not continue in the same business.
3. Collapsible corporations and parmerships.—The old law curbed the use of socaUed collapsible corporations which were Uquidated in a manner that at one time
restricted the tax liabflity to a capital gains tax on the shareholders. The new law
makes these curbs more rigorous, and also iraposes restrictions on collapsible parmerships which had been overlooked under the earUer law.
4. Sickness benefits.—At the individual income tax level, sickness benefits or
continuance of salary payments during periods of illness were previously exempt
without Umit if paid under an insured type of plan. This was especiaUy advantageous
for some taxpayers in the higher tncome brackets. The new law prevents abuse by
limiting the exemption of salary continuance benefits to $ 100 a week. At the same
time the law is made fairer by extending this limited exemption to aU salary continuance benefits whether or not paid under an insured plan.
5. Proceeds of life insurance paid in installments.--Another means of avoidance
under the old law was to arrange to have life insurance proceeds paid in installments
after the death of the insured. The old law exempted not only the Ufe insurance proceeds
but also the interest earned after the death of the insured. This enabled beneficiaries
of large amounts of insurance to receive substantial interest incomes tax free. The
new law requires that the interest earned after the death of the insured on life insurance
proceeds paid in installments be subject to tax with the exception of $1,000 a year
paid to a surviving spouse. Of course, life insurance proceeds themselves continue
to be exempt.
6. Exemption of multiple employee death benefits. - - The provision of the old law which
exempted $5,000 of death benefits paid by an employer to beneficiaries of a deceased
employee had also been used to avoid tax. The $5,000 limit appUed to payments by any
one employer. Some persons employed by several corporations arranged for each
employer to pay a $5,000 death benefit, thus providing the beneficiary with exempt
benefits many times $5,000. The new law closes this loophole by aUowing only one
$5,000 exemption for each employee.
These are examples pf the way the tax revision biU prevents businesses and
individuals from avoiding their share of the tax burden. These loophole closing provisions wiU save revenue, make the tax system fairer, and eliminate economic distortion
which has been due to arrangements adopted merely for purposes of tax avoidance.
240
1954 REPORT OF THE SECEETARY OF THE TREASURY
D.
Clarification
A fourth objective was the clarification of the tax law. For years taxpayers have been
pleading that the law be made clear and simple so as to Ughten the burden of compUance
and reduce the amount of paperwork.
In the revision, the provisions of the law have been arranged in a more logical order,
obsolete material has been deleted, and the language has been made more certain and
understandable. In some important areas where the taxpayer had previously been forced
to rely upon court decisions and administrative rulings, clear stamtory guidance has
been provided. We have tried to reduce to a minimum the simations in which heavy
reliance is placed on the judgment of the internal revenue agent.
Clarification was one of the principal objectives of the work done with respect to
corporate reorganizations, recapitalizations, and distributions. A new set of simple,
clear, and internaUy consistent rules has been developed. Itis anticipated that they
wiU make it possible for the businessman to know with reasonable certainty, and in
advance, the tax consequences of alternative courses of action. So far as possible,
unnecessary tax barriers to desirable business practices have been removed. The
tax-free rearrangement of stockholders' interests wfll be permitted so long as earnings
are not withdrawn from the corporation. We beUeve, therefore, that this portion of
the new law wfll also reduce materiaUy the distorting effect of tax considerations upon
sound business policy.
Clarification was also one of the primary objectives of the extensive revision of the
law dealing with the tax treatment of estates and trusts. Some of the most troublesome
portions of the old law have been eUminated, and a very simple set of rules has been
introduced which wiU govern the treatment of the vast majority of trusts.
The new provisions dealing with parmers and parmership transactions are other
outstanding examples of clarification. On such matters the old stamte was whoUy
inadequate. Most of the important issues depended upon a confusing accumulation of
case law and administrative mlings. Taxpayers found it difficult to determine the
consequences of many everyday transactions such as the transfer of assets into and
out of a parmership, sales of parmership interests, and noncash distributions to
parmers. The new code contains a rational and reasonably flexible set of rules which
wfll not only clarify the pruicipal tax problems in this area but also minimize the
dismrbing effects of tax considerations upon business done in the parmership form.
In the clarification of the law the income tax provisions have been brought into
closer conformity with generaUy accepted accoimting principles. The differences
between tax and business accounting which existed under the old law were irritating
and sometimes required businessmen to keep more than one set of books. These
differences related chiefly to the timing of the receipt of income and the deduction of
expenses. Under the new law each item of income or expense will be counted only once,
but the timing wfll accord with generaUy accepted accounting principles.
E . B a l a n c i n g of o b j e c t i v e s
These were the principal objectives we sought to achieve by tax revision, within the
Umitation on the loss of revenue to which I have already aUuded.
No doubt we have not been able to achieve aU our primary objectives to the extent
that some taxpayers desired. One fact which emerged clearly from our work is that
objectives frequentiy conflict with one another. For instance, clarity is not always
consonant with simpUcity or brevity, and at many points our efforts to make the new
law clear and easy to work with have necessarily resulted in more detafled provisions
than those contained in the 1939 code.
SimpUcity and.fairness are also sometimes incompatible.JThose who seek simpUcity
frequentiy raise other problems which defy simple solutions.
Our work with the pension, profit-sharing, and stock bonus provisions iUustrates
this type of confUct. The regulations under the old law had been subject to widespread
criticism as being overcompUcated, restrictive, and uncertain. There were many
complaints that taxpayers had to wait a long time for individual rulings from the
Internal Revenue Service to know whether their particular plans quaUfied.
EXHIBITS
241
To meet these criticisms and after consultation with many experts outside the Government, the House biU sought to speU out certain clear-cut rules which would enable
taxpayers to determine whether particular plans quaUfied without submitting them xo
Internal Revenue for approval. Ambiguity was to be removed, leaving no doubt as to
which plans were acceptable.
No sooner were the proposed simple rules made pubUc than criticisms began to
come in. Many found the new provisions too inflexible and questioned whether it was
possible to prescribe mechanical rules which would cover adequately the wide variety
of plans in use. Some maintained that these provisions discriminated against smaU
firms and disquaUfied plans which could qualify under the old law. Others felt that the
new rules were too lax and would permit the quaUfication of discriminatory plans.
In this instance. Congress abandoned the new provisions and rem rned to the basic
outlines of the old law. SimpUfication was deferred pending further smdy.
F.
The task before us
There are other areas where much work remains to be done. As you know, some
important sections of old law, including some widely criticized provisions, were carried
over into the new code largely unchanged. This is true of most of the excise provisions.
Moreover, some income tax provisions which would have been changed under the
House biU were restored to their old form in the Senate. The time available was too
short for working out several problems which developed after the bfll had the benefit
of public scrutiny.
This, for example, was the fate of most of the proposed changes in the tax treatment of income obtained from foreign sources. The House biU contained a substantial
group of proposals foUowing the President's recommendations and designed to encourage United States investment abroad. Among them was a 14-point reduction in the
tax on income from production abroad.
Critics of these proposals made a strong plea to the Senate Committee on Finance
for fiirther UberaUzation. However, no agreement could be reached by those concerned with respect to the types of income which were to be taxed at the reduced rate.
As a result, this provision, together with certain aUied proposals, was stricken from
the biU. Since the basic problem remained unsolved at the time the biU was in conference, most of the proposed changes in the treatment of foreign income do not appear
in the new law, the principal exceptions being the elimination of the overaU limit on
the foreign tax credit and the extension of the credit to shareholders of regulated investment companies specializing in foreign securities. The taxation of foreign income,
therefore, requires fiirther smdy.
The President's proposals also included the elimination over a 3-year period of
the penalty taxes on intercorporate dividends and consolidated remrns. However,
the action taken in the final bfll was confined to the lowering of the afffliation requirements to an 80 percent of stock ownership test and the eUmination of the 2 percent
tax on consoUdated remrns in the case of regulated pubUc utiUties.
FinaUy, a number of important areas were deliberately reserved for fiirther smdy.
In his Budget Message, the President specificaUy placed' in this category the treatment of capital gains and losses, the problems of the ofl and mining industries, the
tax treatment of cooperatives and tax-exempt organizations, and the retirement
income of people not covered by pension plans. These important subjects were r e served for fumre legislation.
We know that the job of tax revision is not complete. In a growing and changing
economy it is necessarily a continuing task. However, as the President said when he
signed the bfll, this law "is the exceUent result of cooperative efforts by the Congress
and the Department of the Treasury to give our tax code its first complete revision
in seventy-five years. It is a good law. It wfll benefit aU Americans."
We beUeve also that it can make a major contribution to America's increasing
strength and prosperity.
For many years businessmen and others have urged removal of tax restraints. We
beUeve that this bfll goes far in that direction. The tax system, however, cannot itseU
242
1954 REPORT OF THE SECRETARY OF THE TREASURY
provide the growth. Much wiU depend upon the response of businessmen and investors
to this improvement in our economic climate.
Exhibit 40.—Statement by Secretary of the Treasury
Humphrey, March 2, 1954, on proposed reductions in
excise taxes
We have nothing but the very highest praise for the splendid cooperation between
the Ways and Means Committee, its staff, and the Treasury Department, in the months
and months of smdy that have gone into the preparation of the tax revision program.
We fiiUy support that part of the bfll introduced by Chairman Reed today extending
at present rates those excise taxes which would otherwise be reduced on Aprfl 1 next.
But we cannot support that part of the biU which wiU reduce other excise taxes in the
amount of approximately $ 1 bfllion.
The Treasury has been prepared for some time to concur in selective reductions of
excises in particular hardship cases where industries were being badly hurt by especiaUy high rates. But the broad reduction in excise taxes now proposed in the biU
is more than the Treasury can afford at the present time.
The carefuUy developed reUef provisions of the general tax revision biU which the
Ways and Means Committee, now has under consideration, have the fuU and complete
concurrence of the Treasury. MiUions of taxpayers wfll receive benefits where reUef
is most needed, and in the manner best calculated to encourage initiative and make
more and better peace-time jobs.
The reduction of revenue which this involves is provided for in the budget, and is
aU that the Treasury can now afford.
Exhibit 41.--Summary of the Excise Tax ReductionAct of
1954
The Excise Tax Reduction Act of 1954, approved on March 31,1954, reduced a number of excise tax rates and made other adjustments in these taxes effective Aprfl 1,
1954. The reductions are estimated to reduce revenues by approximately $ 1 bflUon.
EXHIBITS
E s t i m a t e d e f f e c t of 1 9 5 4 e x c i s e t a x
243
reductions
[ In milUons of dollarsj
Amount of
revenue
decrease
Luggage
„
.,
Furs
,
Toilet articles
Jewelry
Admissions, exclusive of cabarets
Lease of safe deposit boxes
Photographic apparams
Electric Ught bulbs and mbes
F i r e a r m s , shells, cartridges
Mechanical jpencfls, pens, and lighters,
Local telephone service
Domestic telegraph, cable, and radio.,.
Long distance telephone service
Transportation of persons......
Lubricating oils (cutting ofls)
Matches
,
Refrigerators, freezers
„
Electric, gas, and ofl appliances
Pistols and revolvers.
Total revenue decreases,
$45.0
24.0
64.0
101.0
200.0
5.0
14.0
19.0
.9
4.0
132.0
11.0
220.0
95.0
(1)
4.0
29.0
53.0
.1
1,021.0
^ NegUgible.
Manufacturers' excise taxes
Substantial changes were made in the rates appUcable to certain rnanufacmrers'
excise taxes. The taxes on cameras, lenses, and films, and on electric Ught bulbs
and mbes were reduced from 20 percent to 10 percent. The taxes on mechanical pencils,
pens, and lighters, and those on sporting goods (other than fishing tackle already taxed
at 10 percent) were reduced from 15 to 10 percent. The 10 percent rate appUcable to
refrigerators, quick freeze units, and refrigerating and freezing apparams, and the
10 percent rate appUcable to electric, gas, and ofl appUances were cut to 5 percent.
The tax on pistols and revolvers was reduced from 11 percent to 10 percent, and the
6 cents per gallon tax on cutting ofls was retained at the 6-cent rate but may not exceed
10 percent of the price for which sold. The same Umitation was imposed on the 2-cents
tax per one thousand paper or plain woodeii matches.
In connection with the reduction of the taxes on refrigerators, quick freeze units,
refrigerator components, electric, gas, and ofl appUances, and electric Ught bulbs
and mbes, a floor stock refimd or credit is aUowed under specified conditions to
manufacturers if they have reimbursed wholesalers, jobbers, distributors, and retailers, holding stocks of these articles on April 1, 1954. for the difference between
tbe tax paid by xhe manufacmrer at the old rate and the amount payable under the
new rate.
T a x e s on c o m m u n i c a t i o n s , transportation, and facilities
The tax rate appUcable to amounts paid for transportation of persons and for the use
of seats, berths, etc., was reduced from 15 percent to 10 percait, AU taxes on communications have been reduced to 10 percent. Previously, the tax was 25 percent on
244
1954 REPORT OF THE SECRETARY OF THE TREASURY
telephone toU services in excess of 24 cents and on leased wire services, and 15 percent on domestic telegraph, cable, and radio dispatches, and local telephone service.
Tax on the use of safe deposit boxes was reduced from 20 to 10 percent.
Retailers' excise taxes
The 20 percent rate on sales at retafl of luggage, jewelry, furs, and toflet preparations was reduced to 10 percent. An article is not considered sold before April 1,
1954, unless possession or the right to possession passed to the purchasers before
such date.
In the case of (1) a lease, (2) certain installment contracts, (3) a conditional sale,
or (4) a chattel mortgage installment arrangement entered into prior to Aprfl 1, 1954,
the tax rate in effect on Aprfl 1,1954, appUes to payments made on br after that date.
T a x e s on a d m i s s i o n s , dues, and c a b a r e t s
The admissions tax on single or season tickets was reduced from 1 cent for each
5 cents or major fraction thereof to 1 cent for each 10 cents or major fraction thereof.
For this purpose, 5 cents is not considered a major fraction. In general, this represents a reduction from a 20 percent to a 10 percent tax rate. The legislation exempts
admissions of 50 cents or less from tax. Admissions in excess of 50 cents are subject
to tax on the total admissions charge. This exemption also appUes to a season ticket
or subscription if the amount which would be charged for a single admission is 50
cents or less.
On admissions to horse and dog race tracks the tax rate remains 20 percent.
The 20 percent tax on charges for admissions, refreshments, services, and merchandise at cabarets, roof gardens, and simflar estabUshments, as weU as the 20 percent tax on club dues and fees, is continued unchanged.
The exemption provided under prior law for admissions to athletic games between
two elementary or secondary schools, where the proceeds inure to the benefit of a
hospital for crippled children, has been broadened so as to apply to athletic games
between teams composed of smdents from elementary or secondary schools. This
permits an exemption for admissions to " a U - s t a r " games in which the teams are made
up of smdents from different elementary or secondary schools, provided that the
proceeds go to a hospital for crippled children.
The new law also exempts admissions to athletic games and exhibitions, including
wrestiing and boxing matches, between educational instimtions provided they are held
during the regular athletic season for the particular activity involved and the proceeds
inure to the benefit of the participating educational instimtions. Admissions to postseason games, such as "bowl" games, continue to be subject to tax.
The exemption applicable to admissions to historic sites, houses, shrines, and
associated museums, maintained and operated by certain nonprofit societies and
organizations, has been broadened to include history, art, or science museums and
planetariums, including specificaUy those maintained and operated by governmental
units.
A new exemption is provided amateur performances presaited by civic or community theater groups provided that no part of the earnings inures to thie benefit of
private individuals.
Automatic rate reductions postponed
^
A number of excise tax rates enacted in the Revenue Act of 1951 and scheduled to
expire on Aprfl 1, 1954, were continued for another year. Included in this group are
the excises on automobfles, trucks, motorcycles, automotive parts and accessories,
gasoline, diesel fuel, cigarettes, distiUed spirits, stiU wines,sparkling wines, Uqueurs,
cordials, and fermented malt Uquors. The extension of these taxes for another year
is estimated to add $ 980 mflUon to fiscal year 1955 revenues.
245
EXHIBITS
Excise tax rates p r i o r to and after amendment by the Excise Tax Reduction Act of 1954
Rates as amended by Excise Tax Reduction Act of 1954
Prior rates
Effective April 1, 1954
Alcohol taxes;
Distilled spirits
Distilled spirits, rectification tajc
Wines, cordials, etc
Fermented malt liquors...
•Tobacco taxes:
Cigars (large)
Cigars (small)
Cigarettes (large)
Cigarettes (small)
Manufactured tobacco
Stamp taxes:
Issue of stocks and bonds
Transfer of stocks and
bonds
Deeds of conveyance
Playing cards
Manufacturers' excise taxes:
Gasoline
Lubricating oils
$10.50 per gallon.
No change
30(^ per gallon
Still wines, Yli, t l i ,
No change
No change
$2.25 per gallon;
sparkling wines, \ 2 i
and 17/ per half pint
$9 per barrel
No change
No change
Still wines, 15/, 60/,
$2.00 per gallon; sparkling wines, $2.00 and
$3.00 per gallon^
per barrel
No change.
No change
No
No
No
No
No
No change
No change
No change
$3.50 per 1,000
No change
$2.50 to $20.00 per
1,000 according to
retail price
n ^ i per 1,000
$8.40 per 1,000
$4.00 per 1,000'
V^i per pound
No change
5/ and 6/ per $100
55/ per $500
13/ per pack
No change
No change
No change
No change
No change
No change
2/ per gallon
6/ per gallon
No change
6/ per gallon; 10^ for
cutting oils;
Fancy wooden, 5 1/2/ per
1,000. All others, 2/ per
1,000 but not in excess
of 10^ of price.
105t
No'change
Pistols and revolvers
Tires and tubes
11^
Tires, 5/ per pound;
tubes, 9/ per pound
8^
Furs
Toilet preparations.,
Footnote at end of table.
change.
change.
change.
change.
change.
No change.
Fancy wooden, 5 1/2/
per 1,000; all others
2/ per 1,000
Electric, gas, and oil
appliances
Business and store
machines
Cameras, lenses, and film.
Electric light bulbs
and tubes
Firearms, shells, and
cartridges
Mechanical pencils, pens,
and lighters
Retailers' excise taxes:
Luggage
,
Jewelry
) per gallon.
11/ per $100; 3/ per
$20 or fraction of
actual, value on no
par stock valued at
less than $100
Matches
Automobile trucks and
busses
Passenger automobiles
Automobile parts and
accessories
Radio and television sets
and components
Phonographs and records...
Musical instruments
Mechanical refrigerators,
quick-freeze units
Air conditioners
Sporting goods, fishing
rods, creels, etc.
Effective April 1, 1955
1 1/2/ per gallon
No change.
No change.
No change.
No change.
No change
IO5G
No change.,
8^
No change
10^
No change
10^
1(^
•
10^
1036
Sporting goods, 15^;
fishing rods, creels,
etc. 10^
10^
No change
No change
5^.......
No change
10^
lOjt
No change
No change.
20^
10^..-.
No change.
No change.
2C^
No change.
No change.
No change.
No change.
No change.
%
10^
No change.
..
'
No change.
11^
;
No change
JNo change.
15^
10^
20^.
20^, except watches retailing for $65 or
less and alarm clocks
retailing for $5.00
or less, 10^
|2C^.;
2(^.;
IO3&
10^
10^
10^
No change.
change.
IINO
No change.
No change.
,
246
1954 REPORT OF THE SECRETARY OF THE TREASURY
Excise tax r a t e s p r i o r to and after amendment by the Excise Tax Reduction Act of 1 954--Continued
Rates as araended by Excise Tax Reduction Act of 1954
Prior rates
Effective April 1, 1954
TsLxes on facilities and
services;
Adraissions to theaters,
concerts, etc.:
Not over 50/
Over 50/
Cabarets, roof gardens,
• etc.
Club dues and initiation
fees
Long distance telephone;
leased wires
Local telephone; domestic
telegraph, cable, radio
Wire and equipment
service
Transportation of oil by
pipeline
Transportation of persons
Transportation of
property
Leases of safe deposit
boxes
Miscellaneous;
Coin-operated devices...
Bowling alleys, pool
tables, etc.
Wagering—occupational
tax
Wagering—excise
Sugar
Diesel fuel, special
Effective April 1, 1955
1/ for each 5/ or major
fraction thereof
1/ for each 5/ or major
fraction thereof
20^ of amount paid for
service, food, etc.
Exempt
No change
1/ for each 10/ or major
fraction thereof
No change
No change
20$.
No change
No change
1(^
No change
25^
15^
..T
,
IQfjo
No change
No change
^.^^.^..
8^
4 1/2^
No change
No change
No change
No change
10^
No change
205t
10^
No change
Annual rate: $10 per
amusement device,
$250 per gaming de-.
vice
Annual rate: $20 per
alley or table
$50 per year.
,
No change
No change
IC^
About 1/2/ per pound
2/ per gallon
No change
.
No change
No change
15^
3 $ : coal, 4/ per- ton .
,
No change
No change
No change
No change
No change
No change
No change
No change
1 1/2/ per gallon.
fuels
Rates for sparkling wines as restated by "Internal Revenue Code of 1954." Effective rates were not
cJianged, but unit of taxation was changed from half pint unit to a gallon.
Exhibit 42.—Summary of the act to revise the internal
revenue laws of the United States ^
I. INTRODUCTION
The act to revise the internal revenue laws of the United States, approved by the
President on August 16, 1954, made far-reaching changes in the structure of the
Federal tax system.
The combined effect of these changes on the Government's tax revenues in fiscal
year 1955 is estimated a t a loss of $ 163 miUion. A reduction of $ 827 miUion in the
taxes on individuals and $ 536 miUion in the taxes on corporations is largely offset
by an increase of $1,200 miUion from the extension ofthe 52 percent corporate rate
for another year. The revenue effect of the more important revisions effected by the
1954 code is shown in Table I.
The 1954 revenue revisions wiU affect a large proportion of taxable individuals and
corporations. The number of taxpayers estimated to be affected by the more important
changes is shown in Table II.
The rates of the individual income tax remain at the level which has been in effect
since January 1, 1954. On that date these rates reverted to those which prevailed
1 This summary describes only selected portions of the legislation. Statements contained herein may not be considered as interpretation of law to be applied in any particular case.
247
EXHIBITS
before the increases enacted by the Revenue Act of 1951. However, in carrying the
pre-1951 rates into the new code, the normal tax and surtax rate schedules have been
combined into a single individual income tax rate schedule.
The 5 percent increase in the corporation normal tax rate (from 25 percent to 30
percent) imposed by the Revenue Act of 1951 and scheduled to expire on April 1, 1954,
is extended for another year. The maximum combined normal and surtax rate appUcable
to corporations therefore remains at 52 percent.
The new code combines the separate **basic*' and "tentative** estate tax rates into
a single rate schedule and thus eUminates the necessity of separately computing the
basic estate tax in determining the maximum credit aUowed against Federal tax
liability for death taxes paid to States. This is accompUshed by expressing the maximum
credit as a percent of the taxable estate of the decedent.
The new code leaves excise tax rates unchanged. A number of these had been reduced by the Excise Tax Reduction Act of 1954.
TABLE I. - - E s t i m a t e d revenue effect of the 1954 changes in the Revenue Code for the fiscal year 1955
[in millions of dollars]
Estiraated revenue
loss or gain (+)
Individuals;
Head of family:
Full split income for 2 years after death of spouse and 1/2 split incorae for
taxpayers who support parents regardless of their place of abode
Dividends received;
Exclusion:
$50 in 1954 and subsequent years
Tax credit;
4 percent of taxable dividends received after July 31, 1954
Total, dividends received
46
158
Taxation of annuities on life expectancy
.
'
Deduction for dependents regardless of earnings.
Dependent deduction for members of taxpayer's household who meet the support test..
Retirement income credit
Deduction of interest charge on installment contracts
,
10
75
10
141
10
Medical expense deduction;
Increase in maximum liraitation
Reduction in exclusion from 5 to 3 percent
Limitations on drugs and medicines to excess of 1 percent of adjusted gross
incorae
10
115
Total, medical expense deduction
Child-care deduction
Exemption for distributable trusts (increased from $100 to $300)
Preraiim payment test on life insurance
Increase charitable contribution limitation from 20 to 30 percent
Deduction for soil and water conservation expenditures
Depreciation
Partnerships and proprietorships taxed as corporations
.•..>.*.....
Effect on individuals
Corporations;
Natural resources:^
Depletion
..;...
Foreign income;
Removal of over-all limitation on foreign tax credit.^.»..
Depreciation
Net' operating loss:
Extend carryback to two years
...iAdjustments for dividends received and depletion
Total, net operating loss
Reraoval of 2 percent surtax on consolidated returns of regulated public utilities..
Tax. on earnings improperly accumulated
,
Continuation of 26 percent capital gains rate to April 1, 1955.........
Accounting provisions
^
Declarations and payraent of estiraated tax
Alcohol, distilled spirits, strip stamps
Effect on corporations, exclusive of rate extension
Extension of 52 percent corporate, rate
Grand total
,
.=..
A small part of this estimate applies to individuals but cannot be clearly segregated.
^ Excludes estimate for uranium, thorium, and vanadium.
^ No revenue effect in fiscal year 1955.
130
3
25
25
10
73
20
90
30
35
10
+ 9
47
{')
6
1954 REPORT OF THE SECRETARY OF THE TREASURY
248
TABLE I I . - - N u m b e r of taxpayers affected by the 1954 changes in the Revenue Code
Individuals:
Full split income for head of family
"
Dividends received
,
Taxation of annuities on life expectancy
Deduction for certain dependents regardless of earnings
Dependent deduction for members of taxpayer's household who meet support test....,
Retirement income credit
Deduction of interest charge on installment contracts
Medical expense deduction
Child-care-deduction
;
. Premium payment test on life insurance
,....
Increase charitable contribution limitation frora 20 to 30. percent
Soil and water conservation expenditures
Depreciation
Taxing partnerships and proprietorships as corporations
,
Corporations:
Natural resources, depletion
,
,
Treatment of income from foreign sources
Depreciation
Net operating los.s
Removal of 2 percent surtax on. consolidated returns of regulated public utilities,
Tax on earnings improperly accumulated
Continuation of 26 percent capital gains rate to April 1, 1955
Accounting provisions
Declaration payments of corporation tax
Extension of the 52 percent rate
Alcohol, distilled spirits, strip stamps
160,000
7,100,000
800,000
1,300,000
100,000
1,800,000.
1,600,000
8,500,000
2,100,000
10,000
160,000
500,000
9,600,000
60,000
4,000
1,000
600,000
50,000
(h
60,000
600,000
20,000
600,000
(1)
^ Less than 500.
The new Revenue Code is very different from its predecessor, the 1939 code. The
entire code has been reorganized to bring together in the same place aU materials
pertaining to the same and related subject matter. The provisions relating to the taxation of individual income, business income, income from estates and trusts, gift and
estate taxes, and some of the excises have been revised to remove inequities, reduce
restraints on economic growth, close loopholes, and clarify the laws. Credits on: account of dividend income and retirement income have been introduced into the individual
income tax, and certain unincorporated businesses have been given the option to be
taxed as if they were corporations. The provisions relating to administrative and
procedural matters have been standardized and integrated.
The more important changes effected by the act to revise the internal revenue laws
are summarized below.
U. TAXATION OF INDIVIDUAL INCOME
'
The changes made by the 1954 code in individual income taxation affect the inclusion
and exclusion of income items and the allowable deductions and credits, as weU as the
definition of some of the more basic tax concepts.
A. C h a n g e s in b a s i c d e f i n i t i o n s
1^ I n c o m e c o n c e p t s for t a x p u r p o s e s
The new law reduces the,variety and complexity of the income concepts used for tax
purposes and employs terminology more meaningful to taxpayers. It eUiriinates the
concepts of (a) "net income,'* which in the old law was income after deductions but
before credits for exemptions, (b) "normal tax net income,*' which was income after
deductions and exemptions but before the credit for partiaUy tax-exempt interest, and
(c) "surtax net income,*' which was the income to which the graduated rates appUed.
In place of these, the new law substitutes the concept "taxable income,*' which means
gross income less deductions or, where the standard deduction is used, adjusted gross
income less the standard deduction and the deduction for personal exemptions. This
change is made possible by providing a deduction for personal exemptions instead of the
prior law*s credit against net income, and a credit against tax for partiaUy tax-exempt
interest in place of the prior credit against normal tax income.
The concept of "adjusted gross income,*' which is used for determining the standard
deduction and the limits on the deduction for medical expenses, charitable contributions
EXHIBITS
249
and, in some instances, child care, has been carried forward from the prior law, with
certain modifications in the case of employees. Adjusted gross income means gross
income less trade or business expenses or, in the case of employees, reimbursed
expenses, expenses for travel while away from home, transportation expenses, and
expenses of salesmen whose trade or business is to solicit business for the employer
away from the employer's place of business. The old law did not permit employees to
deduct from gross income their nonreimbursed transportation expenses or their expenses
as "outside salesmen" in determining adjusted gross income.
2.
H e a d of h o u s e h o l d a n d s u r v i v i n g w i d o w a n d w i d o w e r
The new law revises the concept of "head of household," which accords some taxpayers half the benefits of income spUtting available to married couples. Prior law
defined "head of household" as a single individual who maintains in his home a child,
grandchild, or any person whom he claims as a dependent. Under the new law, a taxpayer may also qualify as a "head of household" through his support of his dependent
father or mother, even though they do not live in his home, if he provides over half the
cost of maintaining the household which constitutes his parent*s principal place of
abode.
In addition, the new law provides that a single taxpayer may obtain the fuU benefits
of income splitting (instead of one-half of these benefits, as in the case of a head of
household) for two years foUowing the death of his spouse. Qualification for this "surviving widow or widower" status depends on the taxpayer*s maintaining a household
as his home which is the principal place of abode for the child or stepchfld for whom he
is entitled to claim a deduction for personal exemption. Under prior law,, upon the death
of husband or wife, the surviving spouse was treated as a single individual or, if
qualified, as a head of household, receiving one-half the benefits'of income splitting.
3.
Dependents
The concept of a dependent has been changed in several important respects. The new
law eliminates the $ 600 gross income test for a child or stepchild of the taxpayer who
has not attained the age of 19 or who is a student at an educational institution or pursuing an "on-farm*' training program supervised by an accredited school. In addition,
the new law adds' to the list of those who may quaUfy as a dependent of the taxpayer any
individual supported by the taxpayer whose principal place of abode is the home of the
taxpayer and who is a member of the taxpayer's household.
Individuals may not be claimed as dependents if they are not citizens or residents of
the United States. The old law provided an exception to this rule in the case of residents
of contiguous foreign countries. The 1954 code expands this exception to qualify as
dependents those who are residents of the Canal Zone or Panama. United States citizens
who are also citizens of another country may also quaUfy as a taxpayer*s dependent.
Moreover, the taxpayer may now claim as a dependent a chfld who is a resident of the
Philippines and who was born to or adopted by the taxpayer in the Phflippines before
July 5, 1946, when the taxpayer was a member of the armed forces.
Two changes have been made in the support test for determining dependency. In cases
where over one-haU the support of an individual is contributed by a group of taxpayers,
no one of whom contributes over haU the support, the dependency deduction may be
assigned to any one of the group. This can be done if each member of the group would
have been entitied to the exemption except for the support test, if the person designated
has contributed more than 10 percent of the dependent's support, and if aU other persons
who have contributed more than 10 percent of the support agree in a written statement
that they wiU not claim the exemption for that year.
In the case of a child or stepchfld of the taxpayer, amounts received as scholarships
wiU not be taken into account in determining whether or not the taxpayer provided over
half the child's support.
250
1954 REPORT OF THE SECRETARY OF THE TREASURY
B.
C o m p o n e n t s of g r o s s i n c o m e
The 1954 legislation made various changes affecting the inclusion in gross income of
a number of income items, notably annuities, alimony payments, Ufe insurance proceeds,
and prizes and awards. It modified also the treatment of income earned over a period
of years.
1.
Annuities
The old code taxed annuitants on that part of the annual annuity equal to 3 percent of
the amount paid for the contract. The excess over this 3 percent was considered a return
of capital and excluded for tax purposes until the cumulative amount of the exclusions
equaUed the amount paid for the annuity. Thereafter the entire annuity was taxable.
The new law replaces the "3-percent mle** with the Ufe expectancy method under
which an annual exclusion is determined by relating the amount paid for the annuity to
the number of years the annuitant is expected to live when the annuity payments begin.
This provides for the tax-free return of capiul during the annuitant*s normal lifetime,
and produces an excludable amount which remains coristant regardless of the actual
length of the annuitant*s Ufe.
In the case of an annuity contract with a refund feature, annual exclusions are based
on the amount paid for the annuity, reduced by the average anticipated refund. To avoid
duplicate exclusions, the investment taken into consideration in computing annual exclusions for 1954 and succeeding years is reduced by the total exclusions in years prior
to 1954,
To avoid lengthy calculations where smaU exclusions are involved, an employee
receiving a pension financed in part by his employer's contributions is not taxed under
the life expectancy method if the annuity payable in the first three years equals or
exceeds his own contributions. Such individuals wiU exclude aU annuity payments untfl
they have recovered their capital tax free; thereafter, the annuity payments wiU be
taxable in fuU.
Joint and survivor annuities are governed by the same general rules as single Ufe
annuities and annual exclusions are determined by prorating the total cost of the contract
over the combined Ufe expectancy of the annuitants.
Where the survivor's annuity is sub ject to estate tax at the death of the first annuitant,
the survivor is given a deduction from income tax to avoid double taxation under both
the income and estate taxes. Under prior law, such income tax deductions were not
granted but if the survivor's annuity was subject to estate tax, the survivor received a
new income tax basis equal to the value for estate tax purposes.
Under prior law, amounts received on the redemption or maturity of an annuity or
endowment contract were generaUy taxed to the extent that they exceeded the investment
not previously recovered free of tax. Under the new law, dividends and proceeds (other
than annuity payments) which do not constitute a complete discharge of the contractual
obUgation under the annuity contract are taxed in fiiU without any exclusions if received
on or after the date annuity payments begin. This avoids recomputation of the yearly
annuity exclusions under the Ufe expectancy method which would be necessary if part
of such proceeds were excluded.
Proceeds received either before the annuity payments begin or in fiiU discharge of
the contractual obUgation continue to be taxed only to the extent that they exceed the
consideration, as under prior law. If proceeds are received in a lump sum in one year,
the tax cannot exceed that which would be payable if the proceeds had been received in
three equal instaUments: one in the year of receipt and the other two in the two preceding
years. Proceeds received from face-amount certificates are specificaUy eUgible for
this averaging treatment.
2 . P r o c e e d s of l i f e i n s u r a n c e
As under old law, life insurance proceeds payable at death are generaUy exempt.
Proceeds paid on contracts which have been transferred for a valuable consideration
before the death of the insured continue to be exempt only up to the amount of the
EXHIBITS
251
consideration and the premiums paid by the transferee. However, the new law makes
such proceeds completely exempt if the transfer is made to the insured person, to a
parmer of the insured, to a partnership in which the insured is a partner, or to a
corporation in which the insured is a shareholder or officer of the corpor ation,,or as a
result of certain tax-free reorganizations. This change recognizes that such transfers
are generaUy motivated by legitimate business reasons.
The old law exempted the proceeds of life insurance paid by reasons of death even
though such proceeds were paid in installments and included iriterest earned after the
death of the insured. The new law provides that when Ufe irisurance is paid in instaUments, the interest portion of such installment earned after the death of tte insured is
to be taxed. However, the spouse of the insured is granted an annual exclusion of $1,000
of such interest.
3.
Alimony and s e p a r a t e maintenance payments
Prior law taxed periodic alimony and separate maintenance payments to the recipient
and aUowed the payments to be deducted by the payor provided that they constituted a
legal obUgation imposed by a court decree or by a written agreemerit incident to a decree.
The new code extends this treatment to (1) periodic paynifents made by a husband to his
wife under a written separation agreement (executed after tte date of enactment of the
new code), even though they are not separated under a court decree, if they are Uving
apart and ffle separate returns; and (2) payments received after August 16,1954, for
a wife's support under a court decree (entered after March 1, 1954), even though such
payments have not been called separate maintenance payments.
4.
P r i z e s and a w a r d s
The new code specificaUy includes in income subject to tax aU prizes and awards
except those made in recognition of past achievements of a reUgious, charitable,
scientific, educational, artistic, literary, or civic nature where the recipient was selected
without any action on his part and is not required to render substantial future services.
Prior law contained no specific provision regarding prizes and awards. Administrative
practice generaUy included them in income but court decisions had held certain prizes
(on give-away programs and essay contests) not to be income.
5.
I n c o m e e a r n e d o v e r a p e r i o d of y e a r s
The new law makes several changes in the treatment of income earned over a period
of years. It increases from 36 to 60 months the maximum tiine over which income from
an invention may be spread back. In addition, it reduces from 36 to 24 months the
minimum period during which work must be performed by the taxpayer on an invention
or artistic production in order to quaUfy for spreading back the income.
Another change requires a partner to have been a member or an employee of the
parmership for a period of 36 months or the period during which the job was performed,
to entitle him to spread back over the period of the job his share of the partnership
income. In no case may the partner spread back this income to years prior to his
becoming a member of the partnership or an employee of the partnership,
C. E x c l u s i o n s f r o m g r o s s i n c o m e
The 1954 legislation clarified and in restricted areas extended the categories of
income excluded from gross income for purposes of income taxation.
1. S i c k n e s s a n d a c c i d e n t b e n e f i t s p r o v i d e d b y e m p l o y e r s
The new code specifies that premiuras and contributions paid by employers under a
plan to finance sickness and accident benefits are not taxed currentiy to the employees.
This eUminates uncertainty as to whether such payments are taxable.
Hitherto, benefits paid to employees under insured plans were exempt from tax,
whfle similar benefits paid under noninsured plans were taxable. The new law accords
insured and noninsured employer-financed benefits identical tax treatment.
252
1954 REPORT OF THE SECRETARY OF THE TREASURY
Payments to reimburse the employee for expenses incurred for the medical care of
the employee, his spouse, and dependents are exempt provided the employee does not
claim a medical expense deduction for such expenses. FuU exemption is also granted
payments received for the permanent loss or loss of use of a member or function of the
body or the permanent disfigurement of the employee, his spouse, or a dependent, provided such payments are not related to the period the employee is absent from work.
Payments received by an employee under a wage continuation plan for loss of wages
due to iUness or injury are exempt up to a weekly rate of $100. However, such payments
received during the first seven days of illness are exempted only if the employee is
hospitalized for at least one day during the period of iUness. No corresponding waiting
period is prescribed where the absence is caused by injury or accident.
Payments received during retirement by members of the Coast and Geodetic Survey
and the PubUc Health Service on account of service-connected injuries are exempt. This
equalizes the treatment accorded members of these services with that already accorded
members of the Armed Services receivingpensions on retirement for physical disabiUty.
2.
Employee death benefits
Prior law provided a special exclusion of up to $5,000 for death benefits paid by an
employer to the beneficiaries of a deceased employee. The exclusion appUed only where
the employer was under a contractual obUgation to pay the benefits and was denied if
the employee had a nonforfeitable right to the benefit before his death.
Under the new law, the amount excludable because of the death of any employee is
limited to a total pf $5,000 to prevent individuals from increasing the exclusion by
arranging to have two or more employers each pay $5,000 of death benefits. In addition,
the death benefits are excludable regardless of whether the employer had a contractual
obUgation to pay them. The exclusion is also extended to lump-sum distributions paid
by reason of death under a quaUfied pension, profit-sharing or stock-bonus plan, or
qualified annuity contract, even though the employee had a nonforfeitable right to the
amounts while Uving.
3.
Scholarship and fellowship g r a n t s
The new code excludes frorn gross income, with certain limitations, scholarship and
feUowship grants. The exclusion extends to the value of services and accommodations,
such as room, board, and laundry, which are received as part of the grant. It also
extends to amounts received for travel, research, clerical help, or equipment to the
extent that they are expended for these purposes.
The exclusion, however, does not apply to that portion of any amount received which
represents payment for teaching, research, or other services in the nature of part-time
employment required as a condition for receiving the grant. Services required of aU
candidates for a particular degree are not to be considered as part-time employment.
In the case of individuals who are not candidates for degrees (typicaUy recipients of
postdoctoral feUowships), the exclusion is limited to $300 pej month for a maximum
period of 36 months and is aUowed only if the grantor is a tax-exempt organization
or a Government agency.
Prior law contained no specific provision regarding scholarship and feUowship
grants, and the status of such items, particularly feUowship grants, was not clear.
4.
M e a l s and lodging furnished by the e m p l o y e r
The new code clarifies the so-caUed "convenience of the employer" rule which
hitherto has been covered in rulings and regulations. It provides a clear-cut rule that
meals furnished to an employee on the business premises of the employer for the
convenience of an employer are exempt from tax. It provides further that lodging
furnished to an employee on the business premises of the employer for the convenience
of the employer is exempt provided the employee is required to accept the lodging as
a condition of employment.
The new code also eliminates variations in the treatment of simflar benefits due to
technicaldifferences in State legislation. It specifies thatthe provisions of an employment
EXHIBITS
253
contract or a State statute fixing the terms of employment are not to determine whether
meals or lodging are intended as compensation.
5.
C o m b a t pay
The new law continues the provision of prior law which excludes combat pay of
members of the Armed Forces serving in combat zones or hospitalized as a result of
wounds, disease, or injury incurred while serving in such a zone, and extends it to any
period during which individuals are Uable for induction into the Armed Forces of the
United States for training and service. Under prior law, this exclusion was available
only for service in a combat zone between June 24, 1950, and January 1, 1955.
6.
Other exclusions
The new law provides an exclusion from gross income not to exceed $5 per day for
subsistence aUowances paid to officers of a police department of a State, Territory,
the District of Columbia, or a possession. The prior law contained no provision for the
exclusion of these subsistence aUowances.
The new law also extends the provision of prior law which excluded from the gross
income of a minister of the gospel, the rental value of a home furnished him as part
of his salary, to permit the exclusion of any rental aUowance included in his salary,
to the extent used to rent or provide a home.
D. D e d u c t i o n s f r o m g r o s s i n c o m e
The 1954 revisions made far-reaching"changes in a number of the deductions allowed
from gross income in arriving at taxable income, including those for medical expenses,
interest charges on installment contracts, and charitable contributions. A deduction
for chfld-care expenses is provided for the first time.
1. M e d i c a l e x p e n s e s
The new law allows the deduction of medical expenses in excess of 3 percent of
adjusted gross income instead of those in excess of 5 percent permitted by prior law.
The upper limits on the amount of the deductions for single persons and married
persons filing separate returns are increased from $1,250 to $2,500 per exemption,
with a maximum deduction of $5,000 instead of $2,500. In the case of joint returns,
the maximum Umitation is raised from $5,000 to $10,000 and for a head of household
or surviving spouse, from $2,500 to $10,000.
The new law permits the inclusion in medical expenses of amounts spent for dmgs
and medicines only to the extent they exceed 1 percent of the taxpayer's adjusted gross
income. New language in the code also clarifies the deduction of travel expenses incurred in connection with receiving medical care by limiting the deduction to expenses
for transportation essential for medical care. Expenses for food and lodging are not
deductible.
In the case of the final income tax return of a decedent, the new law permits the
deduction of medical expenses paid out of his estate within one year from the date of
his death. This deduction is not permitted where the amount is also aUowable in computing the net estate of the decedent for estate tax purposes, unless a statement is
filed that it is not in fact being so deducted.
2.
Child-care expenses
A new deduction is allowed on account of expenses paid by a working woman or widower
for the care of a dependent chfld or stepchild under 12 years of age, or for the care of
any dependent who is physicaUy or mentaUy incapable of caring for himseU. The care
must be for the purpose of enabling the taxpayer to be employed. The deduction, which
may be claimed only if the taxpayer itemizes his deductions, is limited to $ 600. It is not
aUowed for amounts paid to a person whom the taxpayer claims as a dependent.
In the case of a working wife, the deduction is aUowed only if she files a joint return
with her husband, and the deduction is reduced by the amount by which the combined
339256
0 - 5 5 - 1 8
2 54
1954 REPORT OF THE SECRETARY OF THE TREASURY
adjusted gross income of husband and wife exceeds $4,500, except where the husband
is incapable of seU-support because physicaUy or, mentaUy incapacitated.
3.
I n t e r e s t on i n s t a l l m e n t p u r c h a s e s
The new code provides specificaUy a deduction for interest included in carrying
charges on installment purchases. Prior law contained no specific reference to interest
on installment purchases, and administrative practice allowed a deduction for such
interest only if the interest element was separately stated under the purchase contract.
The new provision permits the deduction of such amounts even though the actual
interest is not separately stated, provided the carrying charges are separately stated;
however, in such cases the deduction is limited to 6 percent of the average unpaid
balance due under the contract during the taxable year.
4.
Real estate taxes and special a s s e s s m e n t s
In the case of a sale of real property, the new law requires the deduction of property
taxes paid to be apportioned between the seller and the buyer on the basis of the proportionate part of the property tax year during which each held the property. Under
prior law, the deduction for property taxes was permitted to the owner of record on
the lien date, even though, in the case of sale during the year, the tax was apportioned
by the sales contract between the buyer and seUer. This sometimes had the effect of
denying the purchaser of real property a current deduction for property taxes which he
assumed and paid.
The new code provides an exception to the general rule that taxes assessed against
local benefits of a kind tending to increase the value of the property (special assessments) are deductible only if levied for interest charges or maintenance costs. It
extends the deduction to any type of assessments (including those levied for debt
retirement and capital purposes as weU as those levied for interest charges or maintenance costs) made by a special improvement district meeting specified requirements.
The special district must cover the whole of at least one county, the assessments must
be levied on at least 1,000 persons, and they must be levied anhuaUy at a uniform
rate on the same assessed valuation of real property, including improvements, as
that used for general property tax purposes.
5.
Hobby l o s s e s
The new law includes several additional limitations on the appUcation of the socalled "hobby loss" provision, which in certain cases denies individuals the deduction
of operating losses from a trade or business. Where deductions with respect to a
trade or business have exceeded gross income by more than $50,000 for each of
five consecutive years, the old law required that income be recomputed disaUowing
deductions in excess of gross income plus $50,000. In computing the amount of the
taxpayer's loss for purposes of determining whether the $50,000 Umitation appUes,
the new code excepts from deductions taken into account not only taxes and interest
(as under prior law), but also casualty and abandonment losses connected with the
trade or business, losses and expenses of farming directiy attributable to drought,
the net operating loss deduction, and expenditures which the taxpayer may elect to
expense or capitalize.
6.
I n t e r e s t on a s i n g l e - p a y m e n t annuity
The deduction of interest on indebtedness incurred to purchase a single-premium
annuity contract is now disaUowed. This new provision extends to a single-premium
annuity contract the treatment provided under prior law for interest on indebtedness
incurred to purchase a single-premium life insurance or endowment contract.
The new code also treats as a single-premium contract an amount deposited with
an insurer for payment of a substantial number of future premiums on a Ufe insurance,
endowment, or annuity policy, and aUows np interest deduction on indebtedness to
purchase or carry such a contract.
EXHIBITS
7.
255
Charitable contributions
The new code raises the Umit on the amount of the deduction aUowed individuals
on account of charitable contributions. Prior law limited the amount of the deduction
to 20 percent of the taxpayer's adjusted gross income. The new provision aUows the
20 percent limitation to be exceeded to the extent that this excess represents contributions to hospitals, churches, or educational institutions. However, this excess may
itseU not exceed in the aggregate 10 percent of adjusted gross income.
8.
Cooperative housing
Prior law treated tenant stockholders in a cooperative apartment corporation as
homeowners and aUowed them to deduct property taxes and interest paid to the cooperative apartment corporation. The new code extends this treatment to stockholder-tenants
in a cooperative development of houses.
E.
Credits against tax
A new feature of the individual income tax is the provision of credits against tax
UabiUty on account of retirement and dividend income.
1. C r e d i t for r e t i r e m e n t i n c o m e
The new law permits a credit against tax liability on account of retirement income.
The credit is equal to 20 percent of the amount of the retirement income up to $1,200
and may not exceed $240 (20 percent of $ 1,200) or the tax otherwise due. To qualify for
the credit, the taxpayer or the deceased spouse of a widow or widower must have received earned income in excess of $ 600 in each of any ten calendar years before the
beginning of the taxable year. The code expresses the rate of the credit (20 percent) as
equivalent to the first bracket tax rate and it will, therefore, increase and decrease
with any future increase or decrease in the tax rate applicable to the first bracket of
taxable income.
In the case of an individual over 65 years of age, "retirement income" is defined as
income, to the extent included in gross income, from pensions, annuities, interest,
rents, and dividends. For a taxpayer under 65, it is defined as income, to the extent
included in gross income, from pensions and annuities received under a pubUc retirement system (but not including one established by the United States for members
of the Armed Forces).
The amount of the retirement income which may be taken into account for inirposes
of the credit computation must be reduced by any amount excluded from gross income
as a pension or annuity under the Social Security Act or Railroad Retirement Act, and
any other tax-exempt pensions or annuities. (This reduction does not apply to that
part of a pension or annuity which is excluded from gross income as a return of
capital nor to amounts excluded as Ufe insurance or as compensation for sickness
or injuries.) Retirement income for an individual under 75 years of age must also be
reduced by the amount of earned income in excess of $ 900. The operation of the
credit for retirement income is illustrated by the foUowing example:
An individual who is 70 receives:
Interest and rental income
Social security benefits
Earned income
•
•
•
$1,300
500
1,200
Credit computed as foUows:
Retirement income for purposes of credit computation (first $1,200 of
$ 1,300 of interest and rent)
Less: Reduction for social security benefits
Reduction for earned income in excess of $ 900
Base for computation of credit ($ 1,200-$ 800)
Credit against tax UabiUty (20 percent of $ 400)
,
,
1,200
500
300
400
80
256
1954 REPORT OF THE SECRETARY OF THE TREASURY
2. C r e d i t for
tions
dividends
received from domestic
corpora-
The new law permits individual taxpayers to exclude from gross income the first
$50 of dividends received annuaUy from domestic quaUfying corporations. If a joint
return is filed and both husband and wife have dividend income, each may exclude up
to $50 of his dividends.
In addition, the new law provides a credit against income tax in an amount equal to
4 percent of the dividends above the $50 exclusion received from quaUfying corporations after July 31, 1954, and included in gross income. The credit may not exceed
the lesser of (a) the total income tax (reduced by any foreign tax credit which may be
claimed) or (b) 4 percent of taxable income (2 percent for taxable years ending in
1954).
The dividend exclusion and credit do not apply in the case of dividends received
from .(a) Ufe insurance companies, (b) mutual insurance companies, (c) China Trade
Act corporations, (d) tax-exempt organizations, (e) regulated investment companies
(except to the extent of a distribution that the company is required to designate as an
amount to be taken into account as a dividend), (f) mutual savings banks and savings
and loan associations, (g) foreign corporations, and (h) corporations in general deriving
80 percent or more of their income from United States possessions and 50 percent
or more of their income from business activity therein. Patronage dividends from
cooperatives are also ineUgible for the credit. The exclusion and the credit are not
available, in general, to nonresident aliens not enaged in trade or business in the United
States and with gross income not over $15,400.
III. TAXATION OF BUSINESS INCOME
The 1954 legislation made important changes in the taxation of business income. It
Uberalized and clarified the provisions relating to several important deduction items
including depreciation, research and experimental expenditures, sofl and water conservation expenditures, loss carryovers, and organizational expenses. It also recast
the structure of depletion and related aUowances for the mining and natural resource
industries. The provisions relating to pension, profit-sharing, and stock-bonus plans,
consolidated retums, and surplus accumulations have been modified. Changes have
also been made in the tax treatment of regulated investment companies, personal
holding companies, and tax-exempt organizations. The tax treatment of corporate
distributions, Uquidations, and reorganizations has been substantiaUy revised and
integrated. The accounting provisions of the code have been brought more nearly into
line with business practice and the mles governing the taxation of parmerships have
been revised. Unincorporated business has been granted for the first time the option
to be taxed as if it were a corporation. The temporary Ufe uisurance company tax
provisions in effect since 1951 have been continued for 1954. The 1954 changes in the
capital gains and loss provisions appUcable to both individuals and businesses are
described in another section (V.) of this summary.
A.
1.
I t e m s affecting the m e a s u r e m e n t o f b u s i n e s s
income
Depreciation
The new code provides greater latitude in the selection of methods of depreciation
to be used for tax purpose with the iresult that a more rapid write-off of the tax basis
of property may be taken in the earUer years of its useful Ufe. Express provision is
made for use of the straight-Une method, the declining-balance method at a rate not
in excess of 200 percent of the corresponding straight-line rate, the sum-of-the-yearsdigits method, or any other consistent method which at the end of each year during the
first two-thirds of the useful Ufe of the asset does not result in accumulated aUowances
in excess of those under the 200 percent declining-balance method.
AUowances under three methods of depreciation permitted under the new code are
iUustrated in table IU.
257
EXHIBITS
Taxpayers using the declining-balance method may change at any time to the straightline method, using as a basis therefor the unrecovered cost less estimated salvage
and the remaining Ufe of the asset at the time of the switch. This provision is designed
to offset the relatively slow accumulation of aUowances in the latter years of an asset's
useful Ufe and the relatively high salvage value attributed to an asset which is inherent
in the use of the declining-balance system.
TABLE III. - - C o m p a r i s o n of depreciation deductions and accunnulated r e s e r v e resulting from (1) s t r a i g h t line, (2) 200 p e r c e n t declining balance (10)percent), and (3) sum o f t h e y e a r s ' digits method, for an
a s s e t costing $10,000 with estimated salvage value of $500 and estimated life of 20 y e a r s
Straight-line 5 percent
200 percent declining
balance - 10 percent
Sum ofthe years' digits
year
Armual
deduction
1
2
3
4
5
16
17
18
19
20
Cumulative
Fraction '
Annual
deduction
Cumulative
20/210
19/210
18/210
17/210
16/210
$905
860
814
769
724
$905
1,764
2,579
3,348
4,072
591
531
478
431
387
4,686
5,217
5,695
6,126
6,513
15/210
14/210
13/210
12/210
11/210
679
633
588
543
498
4,750
5,384
5,972
6,515
7,012
5,225
5,700
6,175
6,650
7,125
349
314
282
254
229
6,862
7,176
7,458
7,712
,7,941
10/210
9/210
8/210
7/210
6/210
452
407
. 362
317
.271
7,465
7,872
8,234
8,550
8,822
7,600
8,075 .
8,550
9,025
9,500
206
185
167
150
135
8,147
8,332
8,499
8,649
8,784
5/210
4/210
3/210
2/210
1/210
$475
950
1,425
1,900
2,375
475
475
475
475
475
2,850
3,325
3,800
4,275
4,750
475
475
475
475
475
475
475
475
475
475
-
Annual
deduction
$1,000
1,900
2,710
3,439
4,095
$475
. 475
475
475
475
6
7
S
9
10
11
12
13
14
15
Cumulative
$1,000
900,
810
729
656
226
181
136
90
45
9,048
9,229
9,364
9,455
9,500
The new depreciation rules are restricted to tangible assets with a useful Ufe of
three years or more and to new assets constructed or acquired after December 31,
1953. In the case of property partiaUy constructed prior to January 1, 1954, the Uberalized methods may be appUed only to that portion of the basis attributable to constructiori after December 31, 1953, except in the case of a taxpayer who acquires the
completed property after this date and who is also the original user of the property.
Used or secoridrhand property may not be depreciated iinder the new methods.
Prior law provided for a depreciation allowance but prescribed no specific method
of depreciation. The most frequentiy used method was the straight-Une method, but
other methods were aUowed by regulation and mling, including the unit-of-production
method. The declining-balance method was also permitted if the rate did not exceed
150 percent of the corresponding straight-line rate.
In order to provide taxpayers with greater certainty in regard to aUowable deductions, the new code provides that if the taxpayer and the Internal Revenue Service
enter into a written agreement as to the rate of depreciation for any property, the
rate agreed on shaU be binding on both parties in the absence of facts or circumstances not taken into account in making the agreement. Any party wishing to change
the agreenient is responsible for estabUshing the existence of facts not previously
taken into account and any changes are to be prospective only. Prior law contained
no provision for such agreements, but the policy was to make adjustments to estabUshed rates, of deductions only if there was a clear and convincing basis for a change.
2. L o s s c a r r y o v e r s
Under prior law, operating losses not absorbed by incoriie derived in the current year
could be carried back for one year and any additional operating losses not offset by
258
1954 REPORT OF THE SECRETARY OF THE TREASURY
the carryback could be carried forward for five years. The new law increases the
carryback period to two years, so that operating losses can now be spread over an
eight-year period.
The new code also changes the computation of the amount of loss carried back or
forward, and of the amount of income against which the loss may be offset in the years
to which it is carried. Under prior law, a net operating loss was reduced by certain
adjustments in both the loss year and the year to which carried. Thus, tax-exempt
interest received in the year of a net operating loss was taken into account to reduce
the amount of the carryover. Similarly, tax-exempt interest received in the year to
which a net operating loss was carried over increased the income of that year for
purposes of determining whether there was any residual net loss to be carried over
to another year. Prior law required similar adjustments for the excess of percentage
depletion over cost depletion, and for dividends received by one corporation from
another. The new law eliminates or modifies these adjustments. However, adjustments for certain other items, such as capital gains and losses (of individuals), and
personal exemptions, are required with respect to the loss year and with respect to
each year through which the loss is carried.
In addition, the new law permits losses incurred by an individual from the sale of
a business or from the sale of part ofthe assets of a business, such as depreciable
property or land, to be carried over against income of other years. Preyiously, this
was not allowed.
3.
R e s e a r c h and experimental expenditures
The new code gives taxpayers the option to deduct research and experimental
expenditures as an expense or to treat them as deferred expenses and amortize them.
Where the useful Ufe of the results is determinable, as in the case of patents, the old
provision permitting amortization over the useful life is retained. Where the useful
Ufe is not determinable, the new code permits amortization over not less than 60 months
beginning with the month in which benefits from the expenditures are first realized.
The option to expense or amortize is not appUcable to land or depreciable or depletable
assets used in experimentation work. Prior law contained no specific statutory rifles
on the treatment of research and experimental expenses.
4.
Soil and w a t e r c o n s e r v a t i o n e x p e n d i t u r e s
Expenditures made by farmers for permanent improvement of land have in the past
not been deductible as current expenses. They were required to be capitalized, and
since land is not depreciable were recoverable only on sale of the land.
Under the new law farmers may elect to deduct as current expense amounts spent
for sofl and water conservation and for the prevention of land erosion. The expensing
provision appUes to a wide range of expenditures on land used for farming but not
for improvements subject to an aUowance for depreciation. Such expensing is also
aUowed with respect to special assessments levied by a sofl or water conservation
or drainage district to finance expenditures made by such district for purposes which
would qualify for the deduction if made by the farm operator himseU.
The deduction in any year is limited to 25 percent of gross income derived from
farming in that year. However, any excess expenditures may be carried over to
succeeding years.
5.
Accounting provisions
The new code, as weU as prior law, contains sections devoted to accounting periods
and methods of accounting. Whfle certain provisions are carried over from prior law,
a number of changes were made to remove divergencies between computation of income
for tax purposes and for business purposes that had grown up in the past. These differences related chiefly to the timing of the receipt of income and of the deduction of
expenses.
EXHIBITS
259
The new tax mles permit a taxpayer to use a 52-53 week fiscal year,if in keeping
his books he regularly computes income on the basis of a period which is either 52
or 53 weeks always ending on the same day of the week. Previously, use ofthe 52-53
week fiscal period had been denied to taxpayers although many used it in keeping their
financial records.
Taxpayers also are permitted to use a combination of accounting methods in keeping
their records for tax purposes provided such combination results in a clear reflection
of income. Prior law and regulations made no provision for hybrid accounting methods.
Three significant new options are given accrual-basis taxpayers. The first permits
them to spread prepaid income related to liabiUties of future years over the period
of the UabiUty, but generaUy for a period of npt more than five years beyond the year
of receipt. The second permits deduction of reasonable additions to reserves for
estimated future expenses related to current year income. The reserve method is
aUowed only for costs and expenses which can be estimated with a reasonable degree
of certainty. FinaUy, accrual taxpayers may deduct real property taxes ratably over
the period for which the tax is levied.
Previously, prepaid income generally had to be accounted for in the year of receipt
or accrual and, except for bad debts, reserves for future expenses were not permitted.
Prior law required the deduction of real estate taxes on the date liability therefor
accrued, even though Uabflity accrued prior to the period to which the tax was related.
Permission to use the installment method of reporting income in the case of sales
of real property, or casual sales of personal property for a price in excess of $1,000,
is granted even though there is no payment made in the year of sale. Previously, even
though the sales price was paid in installments, the seller had to report the income
in its entirety in the year of sale if no payments were made in that year. Both the
new code and prior law restrict the installment method for these sales to cases
where the payments during the year of sale do not exceed 30 percent of the selling
price.
Where a taxpayer changes from one accounting method to another, except in the
case of a change from the accrual to the installment method, the new rules provide
for transitional adjustments to be made in the year of the change to prevent items
from being dupUcated or omitted from taxable income. The rules, however, bar any
part of these adjustments which are based on incorrect accounting methods appUed
in years not covered by the new biU. If the change in method results in an increase
in the taxable income in theyear of change of more than $3,000, the taxpayer may,
if such computation is to his advantage, recompute the additional tax due under one
of two alternatives, depending on past accounting practices or figures available. Under
one option, he may spread the adjustments equaUy over the year of change and the
two preceding years. Under the second alternative, he may compute the tax due on
the additional income as though it had been earned in prior years to which it is properly
aUocated under the method of accounting to which the change is made.
Previously, taxpayers who desired to change their accounting methods were required
to make adjustments to prevent double deductions or inclusions and some of these
changes resulted in a "bunching" of income. But where the change in accounting
method was involuntary, certain court cases denied the right of the InternalRevenue
Service to require adjustments.
Taxpayers changing from the accrual to the instaUment method of accounting in the
past have been faced with double taxation because they had to report installment receipts
as income after the changeover even though they had already been reported as income
when on the accmal method. Under the new code, the income must be reported twice,
as before, but the double taxation is aUeviated by a tax credit in the year in which
the installment income is included the second time.
6.
Organizational expenses
The new code gives corporations the option to amortize certain organizational expenses over a period of not less than 60 months, beginning with the month in which
260
1954 REPORT OF THE SECRETARY OF THE TREASURY
the corporation first begins business. Previously, expenses incurred on behaU of a
corporation prior to the date ofits charter were not deductible. They could be amortized
when their useful Ufe could be determined by reference to a limited term of existence
for the corporation as specified in the corporation charter. Where the corporate
charter was perpetual, organizational expenses generaUy could be recovered for tax
purposes only in the year of Uquidation. The new provision, however, is not appUcable
to the professional fees and other expenses incurred in connection with stock issues
or transfers of corporate assets in reorganizations.
7. N a t u r a l r e s o u r c e s
The new code generaUy continues the prior law methods of treating income from
natural resources, but extends the coverage of percentage depletion to include aU
minerals, increases a number of percentage depletion rates, and broadens some
definitions of terms used in the appUcation of such rates.
Percentage depletion is aUowed at rates indicated below on the gross income from
the mineral property but, as under prior law, percentage depletion may not exceed
50 percent of the net income from the property. The extension of percentage depletion
to aU depletable mineral properties permitted the elimination from the new code of
discovery value depletion provisions which previously provided an alternative to cost
depletion for some mines. In aU cases, the owner of a depletable mineral property wiU
now be entitled to deduct the larger of the aUowances computed on the basis of cost
or percentage depletion.
(a) Percentage depletion rates on gross income.—The new code increases a number
of the percentage depletion rates aUowed on gross income. The new schedule is as
foUows:
i. The 27-1/2 percent rate for oil and gas wells is continued unchanged,
u. A 23 percent rate is aUowed sulfiir and uranium, and if from deposits in the
United States, to anor thos ite (to the extent alumina and aluminum compounds are
extracted therefrom), asbestos, bauxite, beryl,celestite,chromite,corundum,fluorspar,
graphite, ilmenite, kyanite, mica, oUvlne, quartz crystals (radio grade), rutfle, block
steatite talc, and zircon, and ores of the foUowing metals: antimony, bismuth, cadmium,
cobalt, columbium, lead, Uthium, manganese, mercury, nickel, platinum and platinum
group metals, tantalum, thorium, tin, titanium, tungsten, vanadium, and zinc.
Under the earUer law, only sulfur received the 23 percent rate. Uranium and sulfur
now receive this rate irrespective of where produced, but the other minerals listed
in (u) above receive this rate only if produced domesticaUy. Of the other minerals
listed in (ii) above, anorthosite, celestite, chromite, corundum, ilmenite, kyanite,
olivine, mtfle, and zircon were not specificaUy named in the law as being entitled to
percentage depletion. However, any of such minerals were entitied to depletion at
the 15 percent rate if reduced to metaUic uses. The other minerals listed above in (ii)
had been entitled to 15 percent, except that in the case of graphite only flake graphite
was eligible; quartz crystals and block steatite talc were not specificaUy Usted but
the 15 percent rate appUed to quartzite and talc generaUy; and asbestos was entitied
to only 10 percent depletion.
iii. A 15 percent rate is continued for baU clay, bentonite, china clay, sagger clay,
metal mines (if not included in ii above), rock asphalt and vermicuUte.
iv. A 10 percent rate is aUowed asbestos not from domestic mines, bmcite, coal,
Ugnite, perUte, sodium chloride, and wollastonite.
Under prior law sodium chloride received 5 percent depletion, and Ugnite was
covered only by an interpretation that it is a grade of coal. The others in this group
were entitled to the same 10 percent rate.
V. A 5 percent rate is allowed (1) brick and tile clay, gravel, moUusk sheUs (including
clam shells and oyster sheUs), peat, pumice, sand, scoria, shale, and stone, except
stone used as dimension stone or ornamental stone, and (2) if from brine wells, to
bromine, calcium chloride, and magnesium chloride.
With two exceptions, aU of these materials received the 5 percent rate urider prior
law. Peat is an addition to the list. The general term moUusk shells is also new.
EXHIBITS
261
giving broader coverage than the previous specific listing of only clam and oyster
shells. While the 5 percent rate is unchanged for stone put to general use, the higher
rate is appUcable if it meets the new use test discussed below.
vi. A 15 percent rate is aUowed aU other minerals (including but not limited to apUte,
barite, borax, calcium carbonates, refractory and fire clay, diatomaceous earth,
dolomite, feldspar, fuUers earth, garnet, gflsonite, granite, limestone, magnesite,
magnesium carbonates, marble, phosphate rock, potash, quartzite, slate, soapstone,
thenardite, tripoli, trona, and (if not included in ii above) bauxite, beryl, flake graphite,
fluorspar, lepidolite, mica, spodumene, and talc, (including pyrophylUte), except that,
unless sold on bid in competition with a mineral Usted in iii above, the percentage is
5 percent for any such other mineral when used, or sold for use, by the mine owner
or operator as riprap, ballast, road material, rubble, concrete aggregates, and similar
purposes.
The term "aU other minerals" excludes sofl, sod, turf, water, mosses or minerals
from sea water, the air, or similar inexhaustible sources.
AU of the minerals covered under vi are subject to a use test. Those used or sold
for use by the mine owner or operator as coarse stone for purposes such as road
buflding or fills or for uses commonly competitive with sand and gravel, are aUowed
only 5 percent depletion, which is the rate formerly aUowed stone. But stone which
is used for dimension or omamental purposes or any of the other minerals enumerated
under vi when used for purposes for which their chemical or mineralogical properties
are a major requirement, are aUowed 15 percent.
Most of the specified nonmetaUics in this last category were entitied to the 15 percent
rate under the old law. The exceptions were calcium carbonates, dolomite, magnesite,
and magnesium carbonates, which had received 10 percait, and granite, marble, and
slate, which had received 5 percent. MetaUurgical and chemical grade limestone,
which had been specificaUy entitied to 15 percent, is now included within the general
category of limestone, and soapstone and dimension or ornamental stone are Usted
for the first time. Any mineral not specificaUy granted percentage depletion is also
covered by this subsection and, subject to the stone lise test, is generaUy eUgible for
the 15 percent rate.
(b) Definition of income from property.—As under prior law, the gross income rates
referred to above are applied to the "gross income from the property." This is defined
as gross income from mining, and "mining" in turn is defined as the extraction of
minerals, the "ordinary treatment processes" normaUy appUed by mine owners or
operators to obtain commerciaUy marketable products, and certain transportation.
The new code makes the following amendments in these definitions: (a) Ordinary
treatment processes include burning of magnesite, fine pulverizing of talc, dust allaying and treating to prevent freezing of coal, and sintering and noduUzing of phosphate
rock, (b) Sulfur processing is specificaUy related to the Frasch process, so that the
general mle for ordinary treatment processes is to be available for sulfur produced
in other ways, (c) Income from mining is giv^n a wider meaning of defining mining to
include the extraction by mine owners or operators of minerals from waste or residue
of prior mining. Thus, depletion allowances are made avaflable for the first time
on production fromdumps or mine tailings which belong to the mine owners or operators.
(c) Definition of mineral property.—The new code provides for the first time a
statutory definition of a mineral property. In general, administrative regulations under
prior law had stated that each separate interest owned by the taxpayer in each mineral
deposit in each separate tract or parcel of land constituted a property. Taxpayers
could combine separate properties if included in a single tract or parcel. The new
law adopts this former administrative definition for a general rule and provides
special rules for the aggregation of mineral interests into one property. A taxpayer
owning operating mineral interests which constitute part or aU of an operating unit
may elect to form one aggregation of any two or more of such interests and treat the
aggregation as a single property whether or not in a single tract or parcel of land.
Owners of separate nonoperating mineral interests, such as royalties, in a single
262
1954 REPORT OF THE SECRETARY OF THE TREASURY
tract or contiguous tracts of land are permitted to treat aU such interests as one
property, provided the owners show the aggregation to be necessary to prevent undue
hardship. These aggregations of interests are effective for income tax purposes generaUy and may not be altered without consentof the Secretary of the Treasury.
(d) Exploration expenses.--The new code raises from $75,000 to $100,000 the
limitation on annual exploration expenses which a taxpayer may elect to deduct currentiy or to defer to be deduced ratably when the mineral is sold. As under prior law,
the privflege of so treating mine exploratiori expenses continues to be available only
in any four years.
(e) Gain or loss on timber.—Under prior law a taxpayer who owned or had contract
rights to cut timber could elect to treat the cutting of timber as a sale or exchange.
Simflarly, a taxpayer who owned timber could treat his receipts from its disposition
as capital^gain. This treatment is continued in the new law with the following changes:
(i) the date of disposal for timber is to be the date the timber is cut unless the timber
is paid for prior to cutting, and in the latter case the taxpayer may elect to treat
either the date of payment or of cutting as the date of disposal; (ii) a sublessor may
be treated as an owner; and (iu) capital gains treatment is extended to gains from
the sale of evergreen trees more than six years old when severed from the roots and
sold for ornamental purposes.
(f) Gain or loss on coal.--The new code continues to treat the receipt of coal royalties
as capital gains. However, a new provision identifies (i) certain expenses in connection
with making and administering leases which are to be treated as an adjustment to the
basis and an offset against capital gains, and (ii) certain other expenses which are
properly deductible from ordinary income. The capital gains treatment is also extended
to include a sublessor.
B.
Special structural
features
1. P a r t n e r s a n d p a r t n e r s h i p s
The new code contains a detailed statutory treatment of the tax consequences of
doing business in the parmership form. The provisions contained in the old law were
fragmentary in nature. In most cases reliance was placed upon regulations, rulings,
and court decisions which did not completely cover the field and were sometimes
contradictory.
As under prior law, parmerships as such are not subject to tax. The individual
members are taxed on their respective shares of the income realized by the parmership. In continuing this general practice for the future, the new law lays down a body
of statutory rules with respect to such matters as: whether there has been realization
of income in transactions between a parmership and a parmer, how income should be
apportioned, and when it should be reported.
In general, the income of a parmership is computed, as Jsefore, in accordance with
the usual inclusions in gross income and the ordinary business deductions, and the
resulting income or loss is aUocated among the parmers on the basis of the parmership agreement. However, some items now have to be segregated on the parmership
books, and the transactions involving them are treated as if they were carried out by
the individual parmer in proportion to his interest without the intervention of a parmership. This is necessary in cases where the extent of a deduction, an exclusion, or a
credit is based on the parmer's status. Options affecting parmership incomes which
are generaUy aUowed taxpayers, except with respect to the foreign tax credit, now
have to be exercised at the parmership level.
(a) Taxable year and termination.--Partnerships and parmers (subject to Umiutions
affecting individual taxpayers generaUy) may adopt or change to any tax year they choose
provided the principal parmers (those owning a 5 percent interest or more) and the
parmership use the same year. Departures from this rule must have a business purpose satisfactory to the Secretary of the Treasury.
EXHIBITS
263
A partnership will not be considered as having ended merely because a partner
terminates his interest or because a new partner has been admitted. If a partnership
discontinues operations, or if 50 percent or moreof the total interest in the partnership
changes hands within a year, then it will be considered to have been terminated.
(b) Partner's distributive share.--A partner's distributive share of partnership income, loss, deduction, or credit is to be determiried by the terms ofthe partnership
agreement. But if the provision in the agreement is for the purpose of tax avoidance
or evasion, then the distributive share is to be determined by the method used to
allocate income generally.
As a general rule, the allocation of deductions or of gain or loss with respect to
property contributed by a partner is to be made as if the property had been purchased
by the partnership. Thus, suppose property with a tax basis of $50 is contributed by
one of two equal partners to a partnership at a time when the property has a market
value of $100. Suppose also that the property is subsequently sold for $150. The gain
of $100 would be allocated equally between the two partners, even though the property
had a basis of only $50 to the contributing partner and hence a basis of only $50 to the
partnership for depreciation and capital gains purposes. However, if the partnership
agreement so provides, and in accordance with regulations prescribed by the Secretary,
the gain in such a case may be allocated on other than a fifty-fifty basis, to reflect the
fact that there was difference between the market value and the tax basis of the property,
and that the gain arising from the transaction was greater to one partner than to the
other by virtue of that difference in value.
(c) Basis of a partner's interest.--The basis of a parmer's interest in a partnership,
for purpose of determining gain or loss on the transfer of his interest or on dissolution
of the partnership, is to be determined as in the past by adding to his contributions his
share of the partnership income and subtracting his share of the partnership loss and
distributions. Partnership income, for this purpose, includes income which may not
have been taxable to the partner, such as the excess of percentage depletion over cost
depletion. Where his contributions include property, it is to increase the basis of his
interest by its adjusted basis at the time of the contribution.
An alternative method permits a partner to ascertain the basis of his interest by
reference to his share of the adjusted basis of the partnership property upon termination
of the partnership.
(d) Transactions between partner and partnership.--Transactions between a partner
and a partnership are generally treated as if they were between two unrelated entities.
However, as a safeguard against some types of manipulation, a rule was adopted which
has been in use in connection with transactions between a corporation and its stockholders. Under this rule, a capital gain is not recognized in a transaction involving
depreciable property with a partner when he has an interest of 80 percent or more in
the partnership. Instead the gain is treated as ordinary income. Where the transaction
produces a loss, a deduction for the loss is disallowed if the partner involved in the
transaction has a partnership interest of more than 50 percent.
Where a partner is guaranteed payment for services or the use of capital, independently of partnership income, such payments are considered as having been made to
a person who is not a partner.
(e) Distributions bv a partnership.--The income of a partnership is taxed to the
partners currently, irrespective of any distribution of profits by the partnership. However, problems may arise when a distribution is made by a partnership and the new
law establishes rules for determining the taxable status of such distributions.
Distributions of money by a partnership to a partner in excess of his basis are
taxable to the recipient. Losses are not recognized upon a distribution, except in liquidation of the partner's interest where the distribution consists only of money, receivables and inventory. When a distribution is made in liquidation of a partnership interest,
the recognized gains and losses are generally to be treated as arising from the sale or
exchange of capital assets.
Property received by a partner in a nonliquidating distribution retains the same
basis as it had in the hands of the partnership, except that it may not exceed the adjusted
.264
1954 REPORT OF THE SECRETARY OF THE TREASURY
basis of the partner's interest in the partnership. Where a distribution of property is
made to a partner in liquidation of his interest, the property acquires the same basis
as his interest in the partnership. However, inventory and receivables are carried over
at the partnership basis.
If the interest in a partnership is acquired by purchase or exchange, the basis of
partnership property may be adjusted to reflect the difference between the basis of the
transferor's interest and the basis ofthe transferee's interest in the partnership. Such
an adjustment, however, affects the transferee partner only. The partnership property
retains its former basis with respect to the other partners.
The partnership, as such, may also adjust the basis of property which it holds, if it
has made a distribution of property to a partner, in partial or complete liquidation of
his interest, to reflect a recognized gain or loss to the distributee.
(f) Transfer of partnership interest.--Generally the gain or loss on sale or exchange
of an interest in a partnership is to be treated as a capital gain or loss. However, to
the extent that payment for the interest is attributable to (a) unrealized receivables of
the partnership and (b) inventory items which haye appreciably increased in value, it
is to be treated as ordinary income.
Amounts paid to a retiring partner (or to his estate) are to be considered a distributive
share of partnership income, if based upon partnership income, or a guaranteed payment
if payable irrespective of partnership income, and are taxable in accordance with the
rules applicable to such income. However, a payment made to liquidate a partner's
interest in the partnership is considered a distribution rather than a distributive share
of partnership income or a guaranteed payment.
2. Taxation of partnership as a corporation
An important innovation of the new law is to offer an election to certain unincorporated
business enterprises to be taxed as a corporation. The objective of this provision is to
reduce the differential tax consequences of different forms of business organizations.
To qualify for the election, an unincorporated business must be owned either by a
sole proprietor or by a partnership with 50 or fewer individual members. It must be
one in which capital is a material income-producing factor or it must derive at least
50 percent of its income from selling property or Jrom brokerage commissions. To
restrict this optional tax treatment to operating business profits, personal holding
company income such as dividends, interest, and royalties is excluded from the corporate
tax treatment and is taxed directly to the proprietors as if an election had not been
made.
Once made, the option to be taxed as a corporation is irrevocable unless there is a
change in the membership of a partnership by more than 20 percent.
3.
Corporations improperly accumulating surplus
The new code continues the special tax on corporations formed or availed of for the
purpose of avoiding income tax with respect to their shareholders by accumulating
earnings or profits. The operation of the provision, however, is liberalized as compared with prior law.
The. new law allows all corporations a minimum accumulation of $60,000 free of
penalty tax.
Where improper accumulation has been determined, the tax is applicable only to that
portion of the retained earnings considered to be unreasonably accumulated. Previously,
the tax was applicable to all retained earnings if any part thereof was found to exceed
the reasonable needs of the business. The tax rates continue to be 27^ percent on the
first $100,000 of accumulated taxable income and 3 8 | percent on the excess.
A significant change was made in the concept to be applied in determining unreasonable
accumulation. Under prior law, accumulation beyond the "resonable needs" of the business was determinative of intent to avoid tax on shareholders, and the burden of proof
as to the reasonableness of accumulations was upon the taxpayer. Under the new code,
accumulation of earnings or profits is determinative of intent to avoid tax only if profits
EXHIBITS
265
are accumulated beyond the "reasonably anticipated needs" of the business. Furthermore, in any proceedings before the Tax Court, the burden of proof as to reasonableness is now on the Government, provided the taxpayer submits a timely statement
of reasons why the accumulations have not been beyond the reasonable needs of the
business. Moreover, a credit is allowed for dividends paid within 2-1/2 months after
the close of the taxable year and an allowance is made for the foreign tax credit to the
extent not allowed in computing taxable income. Previously, only dividends paid during
the taxable year were deductible, and the foreign tax credit was not recognized.
4. Consolidated r e t u r n s
Under prior law, an affiliated group of corporations was permitted to file a consolidated return for thetaxableyear in lieu of separate returns provided all corporations
within the group consented to the regulations prescribed by the Secretary. For the
privilege of filing a consolidated return, the affiliated group was subject to an additional
tax of 2 percent except that the 2 percent tax did not apply to income attributable to
Western Hemisphere trade corporations included in the affiliated group. The affiliation
test was based on a 95 percent stock ownership.
The 1954 code pontinues to leave to the regulations the establishment of appropriate
rules governing the filing of consolidated returns. The 2 percent tax for the privilege
of filing consolidated returns is no longer applied to certain regulated public utilities.
The stock ownership test is reduced from 95 percent to 80 percent.
5. Pension, profit-sharing, and stock-bonus plans
The new code retains the basic provisions of the old law governing pension, profitsharing, and stock-bonus plans. However, it gives greater encouragement to the growth
bf qualified plans by clarifying and removing inconsistencies in the treatment of contributions made by employers and benefits received by employees. Safeguards are also
provided against the misuse of funds set aside in such plans.
(a) Lump-sum distributions from qualified plans.--To give insured plans equal treatment with trusteed plans, lump-sum distributions from qualified insured plans made
to an employee because he is separated from service are taxed as capital gains.
Capital gains treatment is also accorded to lump-sum distributions made by both
insured and trusteed plans to the beneficiary of an employee who dies after retirement
and to lump-sum distributions made in 1954 by a plan terminated because the employer
corporation was liquidated in a merger or reorganization before the enactment of the
new Revenue Code.
(b) Tax on unrelated business income.--Employees' pension, profit-sharing, and stockbonus trusts are now made subject to the tax on unrelated business income including
rental income from real estate leased for more than 5 years and carried with borrowed
funds. The tax on rental revenue is imposed in proportion to indebtedness incurred to
acquire or improve the leased property. However, for purposes of the tax on rental
income, loans made by one employees' trust to another trust of the same employer
generally are not treated as indebtedness. Also, debt incurred by an employees' trust
in connection with real property leased before March 1, 1954, is not considered as
indebtedness if (a) the debt is incurred before March 1, 1954, or (b) after March 1, 1954,
in order to carry out the terms of the lease.
(c) Prohibited transactions.--Employees' trusts aredenied exemptionifafter March 1,
1954, they engage in certain prohibited transactions such as lending funds to the employer
without adequate security and at less than a reasonable rate of interest, or purchasing
property from him for more than adequate value.
(d) Certain negotiated plans.--As a general rule, employers continue to lose deductions
for contributions to nonqualified pension, profit-Sharing, and stock-bonus plans where
employees' rights are forfeitable. However, employers are permitted to deduct currently
as business expenses contributions to nonqualified plans if (a) the plan was established
before January 1, 1954, as a result of an agreement between employee representatives
and the United States Government during a period of Government operation of a major
266
1954 REPORT OF THE SECRETARY OF THE TREASURY
portion of the facilities of the industry, and (b) the contributions are held in a welfare
trust providing at least payments for medical or hospital care and pensions.
(e) Affiliated corporations.--Members of an affiliated group of corporations (as
defined for purposes of filing consolidated remrns) are permitted to take deductions
for contributions to the profit-sharing plan (or stock-bonus plan based on profits) of
an affiliated member when the latter cannot make the Contributions because it has no
profits.
(f) Foreign sims trust.--Under the old law, foreign sims employees' trusts were
generally denied exemption. The new code denies all foreign sims trusts the privilege
of qualification and exemption. However, to prevent hardship, employers, may deduct
currently contributions to foreign situs trusts that ofherwise would have qualified.
In addition, lump-sum distributions from such foreign situs trusts may receive capital
gains treatment under the same conditions as qualified trusts.
(g) Deduction for employers on accrual basis.--Taxpayers on accrual basis who make
payments of contributions to a plan within the time allowed for filing remrns after the
close of the taxable year are considered to have made the contribution during the
taxable year. Previous law allowed only 60 days after the close of the taxable year for
this purpose.
(h) Distributions in employer secu rities.--The new code modifies the conditions under
which payment of tax on the gains on employer securities distributed by an employees'
trust may be postponed. Securities of the employer have been defined to include
securities of another corporation if either corporation ownecl more than 50 percent of
the other's voting stock. The new code changes the " m o r e than 50 percent" ownership
requirement to "50 percent or more," in order to grant relief where two corporations
each own exactly half ofthe stock of a third corporation.
(i) Information returns.--Qualified employees' trusts, like other tax-exempt organizations, are required to file annual information returns showing shch item3 as income,
expenses, and distributions. However, at the discretion of the SecretaryoftheTreasury,
such a trust may be relieved from the obligation to state in its returns any information
reported on remrns filed by the employer corporation.
6.
Corporate distributions, liquidations,
and other adjustments
(a) C o r p o r a t e
reorganizations
distributions
D i s t r i b u t i o n s of p r o p e r t y
The new code continues to tax individuals on the value of property received as dividends, but taxes corporate dividend recipients on the lesser of the market value or the
adjusted basis of the property in the hands of the distributing corporation. Past law
taxed corporate recipients of such property on its fair market value but limited the
intercorporate dividend credit to the basis ofthe property in the hands of the distributing
corporation. New stamtory rules correlate the basis of the property in the hands of the
recipient corporation with the amount taxed to it.
R e d e m p t i o n s of s t o c k
Nonpro rata redemptions.--In the case of nonpro rata distributions in redemption of
stocks, the new law provides, in general, that to qualify for capital gains treatment an
individual shareholder's proportionate ownership of voting stock after the distribution
must be less than 80 percent of the proportion of his holdings before the distribution
and he must not have control of the corporation after distribution.
To pay death taxes.--The new law broadens the provision which allows a redemption
of stock in the corporation to pay death taxes without the distribution being taxed as a
dividend in certain cases. Under the old law the stock redeemed had to constimte 35
percent of the gross estate in order to be eligible. The new law provides as an alternative
test of eligibility that the stock constimte 50 percent of the net estate. It also allows
the stock of more than one corporation to meet the percentage test if 75 percent or
EXHIBITS
267
more of the stock of each corporation is owned by the estate. The new law permits the
receipt of an additional amount in redemption of stock equal to the amount of funeral
and administrative expenses as well as death taxes without dividend consequences and
extends the time for redemption to 60 days after a decision of the Tax Court with respect
to the estate b x has become final.
Sale of stock to subsidiary.--The provision of the old code, under which the sale of a
parent corporation's stock to a subsidiary may be taxed as a redemption equivalent to
a dividend, is extended to include the sale of the stock of one corporation to another
when the persons selling the stock are in control of both corporations.
D i s t r i b u t i o n of s t o c k o r s t o c k r i g h t s
Distributions of stock and stock rights are now generally nontaxable. Exception is
made where the stock received as a dividend is in lieu of dividends on preferred stock
currently owing or for the preceding taxable year, or where any shareholder has an
option to receive property or money. Under prior law, stock dividends were taxed when
the proportionate interest of the shareholders in the corporation was disturbed; in
general, all stock dividends paid on preferred stock were taxable.
The proceeds of the sale or redemption of dividend preferred stock is treated as
ordinary income rather than capital gain to the extent of an amount equal to such
stock's allocable share of corporate earnings and profits at the time of issuance of
such stock, if sold, or at the time of redemption, if redeemed. No reduction of earnings
and profits is provided, however, in the case of a sale of such stock. This provision
is designed to close a loophole known as the preferred stock "bail out." It does not
apply where it is established to the satisfaction of the Secretary that the distribution
and redemption or disposition were not for tax avoidance purposes.
Nontaxable stock rights which are exercised or sold are provided a zero basis so as
to avoid the necessity for allocating the basis of the old stock. However, the basis of
such stock or rights may be allocated, as under prior law, at the election ofthe taxpayer and must be allocated if the value of the stock dividend or rights is 15 percent
or more of the value of the old stock.
E f f e c t of d i s t r i b u t i o n s o n t h e
corporation
The 1954 code, following the rule in General Utilities and Operating Company v.
Helvering (296 U. S. 200), provides that a corporation does not realize gain by reason
of a distribution of its property, the value of which exceeds its cost to the corporation.
Two exceptions are made: (1) If LIFO inventory is distributed, tax is imposed on the
amount of any inventory profits which has been postponed; and (2) if property subject
to a liability is distributed, the excess of the debt over the basis of the property is
subject to tax.
The new code also provides, in general, that earnings and profits are to be charged
with the cost of appreciated or depreciated assets distributed by the corporation. If,
for example, property worth $100 but costing the corporation $50 is distributed out of
earnings and profits of $75, earnings and profits would be reduced by $50. If inventory
type assets are distributed, however, earnings and profits are increased by the excess
of their fair market value over cost (and charged by the fair market value of the distribution), but the corporation is not taxed onthe difference between cost and value (except
in the two types of simations noted in the preceding paragraph).
The new act also taxes as a dividend any distribution of the proceeds of any outstanding
loans guaranteed by the United States, such as loans guaranteed by the Federal Housing
Administration, which exceed the cost of property by which such loans are secured.
(b) C o r p o r a t e
liquidations
Effect on the liquidating
corporation
In general, the 1954 code provides that if a corporation adopts a plan of complete
liquidation and, within a 12-month period beginning on the date of the adoption of such
plan, distributes all of its assets, except assets retained to meet claims, it will not be
taxed on sales or exchanges of property by it within such 12-month period. Possible
268
1954 REPORT OF THE SECRETARY OF THE TREASURY
double taxation of the shareholders and the corporation under the decision in Commissioner V. Court Holding Company (324 U. S. 33) may thereby be avoided. However,
the determination of whether the sale actually occurred before or after the adoption
of the plan of liquidation is a question of fact in each case. Special rules governing
inventory liquidation are adopted.
The new code also makes permanent the provision of the old law by which the shareholders may elect to liquidate a corporation without being taxed on the unrealized
appreciation of its property. In such a case the shareholder is taxed on the accumulated
earnings and profits of the corporation as ordinary income (to the extent of the gain).
Where the liquidating corporation is a subsidiary and the parent adopts a plan of
liquidation within two years following the purchase (within 12 months) of 80 percent of
the stock of the subsidiary, the basis of the assets in the hands of the parent is to be
the amount paid for the stock. This provision follows the general principle of KimbellDiamond MiUing Company v. Commissioner (14 T.C. 74 (1950) atfd 187 Fed. 2d 718).
Partial
liquidations
In general, distributions not essentially equivalent to a dividend are to be taxed at
capital gains rates, as under the old code. A partial liquidation now includes a distribution arising out of the termination of a business of a corporation which has been in
existence for more than five years.
(c) C o r p o r a t e o r g a n i z a t i o n s a n d
Corporate
reorganizations
organizations
The new code provides that in the organization of a new corporation any substantial
shift in interest of the stockholders and security holders having the effect of a gift or
compensation is to be taxed according to its true nature. Under the old code, the interest
of the shareholders or security holders in a corporation after the transfer of property
to it had to be substantially the same as their respective interests before the transfer
in order to avoid realization of gain or loss on the entire transaction.
Divisive
reorganizations
The rules of the old statute governing corporate spin-offs, split-offs. and split-ups
are modified.
A newly created subsidiary may be distributed tax-free to shareholders of the parent
corporation provided that both the business retained by the distributing company and
the business of the corporation the stock of which is distributed have been actively
conducted for five years preceding the distribution, and the distribution is not used
as a device for distributing earnings and profits. The provision does not apply if the
business is acquired by purchase within such five-year period.
A new section provides that a corporation may be divided into two or more corporations, the control of each of which may be transferred to separate shareholders
of the transferor corporation. For example, if A and B originally transferred their
separate sole proprietorships to a corporation in which each receiyed 50 percent of
the stock, these businesses may be separated into two corporate entities one of which
is wholly owned by A and one by B.
Other reorganizations
The new code extends the provisions of the former law governing the tax treatment
of reorganizations. The old statute had no rules covering gain or loss on the exchange
of securities of different principal amounts. The new act provides that no gain or loss
is realized if the securities received are of the same face amount as the securities
transferred. If a security of a greater face amount is received, the value of the excess
face amount is subject to tax as additional consideration.
The new act also provides that a transaction may be a reorganization when a corporation, which is the subsidiary of another, acquires substantially all the assets of a
third corporation in exchange for the stock of the acquiring corporation's parent. This
modifies the rule in Groman v. Commissioner (302 U.S. 82) and Helvering v. Bashford
(302 U.S. 454).
EXHIBITS
269
C a r r y o v e r s in c e r t a i n c o r p o r a t e a c q u i s i t i o n s
The new code provides for the carryover from one corporation to another, in a
corporate reorganization, of certain tax benefits, privileges and elective rights which
were not generally available under prior law. These provisions will enable a successor
corporation to step into the "tax shoes" of a predecessor corporation with respect to
loss carryovers, earnings and profits, certain elections, and other specified items.
The new code eliminates the carryover of a net operating loss when more than 50
percent of the stock of the loss corporation is purchased by new owners within a twoyear period and the loss corporation does not continue in substantially the same trade
or business. If shareholders of a loss corporaton acquire less than 20 percent of the
stock of the new corporation in a tax-free reorganization, the loss carryover is reduced
proportionately. For example, if they acquire 10 percent of the stock of the new corporation, only one-half of the loss carryover is preserved.
7.
Foreign
income
(a) F o r e i g n t a x c r e d i t
Taxpayers are allowed a credit against their United States tax liability for income
taxes paid to foreign countries. In prioryears,the credit was subject to two limitations:
A "per-country limitation" restricted the credit for taxes paid in any one foreign
country to an amount which bears the same proportion to the taxpayer's total United
States tax liability as his income from the foreign country bears to his total income.
An "overaU limitation" restricted the credit for all income taxes paid abroad to that
proportion of the taxpayer's United States liability which his income from all foreign
sources bears to his total income.
The new law removes the overall limitation but retains the per-country limitation.
As a result, taxpayers who incur losses in one foreign country while realizing profits
in another foreign country are now entitled to a foreign tax credit computed as if they
had not incurred any losses abroad.
(b) W e s t e r n H e m i s p h e r e T r a d e
corporations
Western Hemisphere Trade corporations are taxed at a rate of 14 percent below the
corporation tax rate generally applicable. One of the requirements which a domestic
corporation must meet to qualify for this reduced tax rate is that all its business be
done in the Western Hemisphere. There has been some uncertainty as to the effect of
incidental purchases made outside the Western Hemisphere upon the eligibility, of a
corporation for the reduced tax rate. The new law provides that such incidental purchases
shall not result in disqualification.
(c) C h i n a T r a d e A c t
corporations
China Trade Act corporations were formerly allowed a credit against their taxable
income, based upon the amount of income derived from sources within China and the
amount of stock in the corporation owned by persons resident in China, the United States,
and possessions of the United States, and by individuals Vho were citizens of the United
States or of China, irrespective of residence. The new law substimtes "Hongkong arid
Formosa" for the term "China" (except that only United States citizenship, irrespective
of residence, qualifies for the special deduction in lieu of the former credit).
In addition, residents of Formosa and Hongkong (instead of residents of China) are
permitted to exclude from gross income dividends received from China Trade Act
corporations.
8. Income taxes paid by lessee corporation
Long-term leases sometimes provide that the lessee shall pay to the lessor a specified
amount, free of tax. Under prior law, the amounts paid by the lessee to the lessor as
reimbursement for taxes on the rental income, were in turn considered to be income to
the lessor corporation, and subject to income tax. Under the terms of the lease, the
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27 0
1954 REPORT OF THE SECRETARY OF THE TREASURY
lessee was obligated to reimburse further the lessor corporation, and so on. This
pyramiding of tax liability upon a lessee has been eliminated under the new law, insofar
as corporations are concerned. Reimbursement of taxes paid by a lessee, which is
attributable to rental payments, is excluded from the lessor's gross income. In addition,
it is not allowed as a deduction by the lessee. This provision is applicable only to leases
entered into before January 1, 1954.
9. Discharge of indebtedness
The old law permitted corporations to exclude from income any income arising from
discharge of indebtedness evidenced by securities if they elect a corresponding reduction
in thebasis of their property. Tlie new law removes the requirement that the indebtedness
be evidenced by securities and extends to individuals the same exclusion privilege with
respect to discharge of indebtedness incurred in connection with property used in their
trade or business. Railroads may exclude income attributable to cancellation oMndebtedness pursuant to bankruptcy or receivership proceedings without making a corresponding reduction in the basis of their property if the cancellation occurs in taxable
years beginning before January 1, 1956. Under prior law, this privilege was applicable
only to taxable years beginning before January 1, 1955.
10.
I n v o l u n t a r y l i q u i d a t i o n of L I F O
inventories
Retroactive adjustment of income is permitted where the taxpayer has an involuntary
liquidation of LIFO inventory in taxable years ending after June 30, 1950, and ending
before January 1, 1955, and the inventory is replaced in a subsequent taxable year
ending before January 1, 1956. Prior law covered liquidations only through taxable
years ending before January 1, 1954.
11.
Collapsible
corporations
Under prior law, profits derived by a stockholder in a so-called collapsible corporation were taxed as ordinary income. A collapsible corporation was defined as one
formed, or availed of, for the production or purchase of property with a view toward
the sale or exchange of the stock (in liquidation or otherwise) of the corporation, or a
distribution by the corporation before it realized the bulk of the taxable income attributable to the goods produced or purchased.
The new law retains this device to prevent the conversion of ordinary income into
capital gains, but makes the provision more stringent by making it applicable to stockholders owning more than 5 percent, instead of 10 percent, of the stock of the corporation.
In addition it establishes a presumption that a corporation is a collapsible corporation
if at the time of the sale or exchange of stock, or of a distribution, 50 percent or more
of the total assets consist of inventory and similar assets which have appreciated by
20 percent or more.
The use of collapsible partnerships for the same purpose as collapsible corporations
is precluded by the rules (described elsewhere) which apply to distributions by partnerships and the sale of partnership interests.
12.
Acquisitions to evade or avoid tax
The new code carries over the previous authority of the Secretary of the Treasury
to disallow a deduction, credit, or allowance not otherwise available to a taxpayer
where he has acquired another corporation or. its property principally for purposes of
tax evasion or avoidance.
The Secretary's authority is strengthened by a new provision which establishes a
prima facie presumption that the principal purpose is tax evasion or avoidance where
the consideration paid in acquiring a corporation or its property is substantially disproportionate to the tax basis of property acquired plus the tax value of other benefits,
such as loss carryovers.
EXHIBITS
271
C. Special c l a s s e s of corporations
1. Regulated investment companies
Under prior law and the new code, regulated investment companies meeting specified
requirements as to asset diversification, capital strucmre, sources of income, and
operations are treated as "conduits" and taxed only on their undistributed income if
they distribute at least 90 percent of their ordinary income. The diversification tests
require that at least 50 percent of the company's portfolio consist of holdings, no one
of which exceeds 10 percent of the voting securities of the issuer or 5 percent of the
value of the assets of the regulated investment company. The tests also require that
not more than 25 percent of the value of the total assets of the company be invested in
any one company or group of companies inthe same line of business which the regulated
investment company controls.
(a) Venmre capital companies.--In the case of certain venture capital companies
principally engaged in furnishing capital to development corporations which are exploiting new inventions, products, or processes, the asset diversification requirements
were relaxed under prior law so that the company could hold more than 10 percent of
the outstanding voting securities of a single issuer for as long as 10 years. This special
rule for the benefit of venmre capital companies is liberalized in the new code. The
requirement that not more than 5 percent of the value of an investment company's
assets may be invested in a single development company need be met only on the basis
of cost at the time of the investment.
(b) Treatment of shareholders.--Under prior law the credit for foreign taxes allowed
corporations was of little, if any, value to regulated investment companies. They were
subject to tax only on undistributed income which constituted a minor portion of their
total income, and much of the tax credit to which they would otherwise be entitled was
wasted. The new code allows a foreign tax credit to be passed through to the shareholders
of a regulated investment company. The credit may be claimed only with respect to
income and profits taxes paid by the investment company (by withholding or otherwise)
and only if (a) the investment company elects not to claim either a deduction or credit
for foreign income taxes, and (b) if the investment company has more than 50 percent
of its assets in the securities of foreign corporations.
Where dividends from domestic corporations represent less than 75 percent of the
gross income of an investment company, the intercorporate dividends deduction and the
individual dividends-received credit and exclusion are available only with respect to the
portion of its dividends which represents dividends received by the company. Furthermore, capital gains dividends ofan investment company are not eligible for the div id endsreceived allowances. Under prior law, when a dividends-received credit was available
only to corporations, corporate shareholders in investment companies could take the
dividends-received credit for all dividends received from such companies and thereby
receive interest and other income at the lower tax rate applicable to intercorporate
dividends.
2, P e r s o n a l holding companies
The new law retains the special tax of 75 to 85 percent that has applied to the undistributed income of personal holding companies, which is designed to discourage the
retention of investment income by a corporation to avoid personal income tax on stockholders. The new law, however, makes changes in the tax to relieve certain inequities,
produce more effective administration, and provide greater certainty for the taxpayers.
A personal holding company is defined as a corporation which (a) receives 80 percent
or more of its gross income in the taxable year in the form of specified types of investment income, and (b) which is owned, to the extent of at least 50 percent, by five
individuals or fewer. The old law contained substantially the same definition, except
that a corporation which fell within the 80 percent rule in one year was subject to a
70 percent rule in the following years. In addition, a tax-exempt organization or trust
was not taken into account in ascertaining whether 50 percent of the stock was owned
by five or less individuals. Under the new law such organizations or trusts are treated
as individuals for purposes of the ownership test.
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1954 REPORT OF THE SECRETARY OF THE TREASURY
In the case of a group of affiliated corporations filing a consolidated return, the
income test is applicable to the consolidated income as a whole, provided no member
of the group with income from outside the group equal to 10 percent or more of total
income, meets the definition of a personal holding company with respect to its income
from outside the group. Under prior law, only railroad companies filing consolidated
returns were permitted to apply the income test on a consolidated basis.
Under previous law, income received by a corporation from the rental of property
to a stockholder owning 25 percent or more of its stock was included in the definition
of personal holding company income. The new law excludes rental income derived from
stockholders, provided the company does not receive other personal holding company
income amounting to 10 percent or moreof its gross income. In applying this 10 percent
rule, rentals received from persons other than shareholders are to be ignored.
Although capital gains were not subject to the personal holding company tax under
prior law, taxes paid on capital gains were allowed as a deduction in determining the
income subject to tax. The new law disallows this deduction.
A personal holding company was permitted to declare deficiency dividends with
respect to past tax years in cases where negligence to file a personal holding company
return was not involved and thus to eliminate any liability for personal holding company
tax. The new law expands this provision by allowing deficiency dividends in all cases
except those involving fraud. It also simplifies the procedures associated with deficiency
dividends.
Income tax and personal holding company tax were regarded as separate levies for
purposes of filing, the statute of limitations, and assessments procedures. Under the
new law, the two taxes are integrated so that a single return with a supplemental
schedule will fulfill the requirements for both levies. The stamte of limitations is
increased to six years in cases where a corporation fails to provide necessary personal
holding company information.
3. Life insurance companies
The temporary lifeinsurancecompanytax provisions ineffect since 1951 are continued
for 1954. These provide for a tax of 3-3/4 percent on the flrst $200,000 and 6-1/2
percent on amounts in excess of $200,000 of net investment income, with certain adjustments. These reduced rates are equivalent to the application of the ordinary corporate
rates of 30 percent on the first $25,000 and 52 percent on income above $25,000, after
deduction of 87-1/2 percent of the net investment income. The 87-1/2 percent figure
reflects the deduction for the industry's average policy reserve interest needs which
would have applied in 1951 under the 1949-50 stop-gap formula previously in effect.
4.
Tax-exempt organizations
The new code makes several changes in the provisions governing tax-exempt organizations. Nonprofit organizations devoted to testing products for public safety are added
to the organizations entitled to exemption. The restrictions governing the exemption of
charitable, religious, and educational organizations are increased. Prior law denied
exemption to these organizations if a substantial part of their activity was the carrying
on of propaganda, or otherwise attempting to influence legislation. The new code adds
to this restriction by denying exemption if the organization participates in any political
campaign on behalf of any candidate.
The new code also subjects pension, profit-sharing, and stock-bonus plans'to the
prohibited transactions rules, previously applicable only to charitable and certain
educational organizations, and makes them taxable on income from unrelated business
activities and from rental income of real estate carried with borrowed funds. (See
HI. B. .5. above.)
Where loans are made by one trust to another trust of the same employer to carry
real estate, such borrowing is not treated as indebtedness for purposes of the tax on
rental income, unless the first trust incurs indebtedness to make the loan.
EXHIBITS
27 3
Agricultural research organizations are added to the list of organizations not subject
to the prohibited transactions rules.
The new code retains the provision of the old law which denies tax exemption to
charitable and certain educational organizations if amounts accumulated out of income
were unreasonable in amount or duration to carry out the functions constituting the
basis for the exemption. However, it exempts from the provision income from property
of a decedent dying before January 1, 1951, which is transferred under his will to a
trust created by such will. It also permits unlimited accumulation for the duration of
lives of persons designated in the trust instrument plus 21 years in the case of a trust
created by will of a decedent dying after December 31, 1950, if the will creating the
trust requires accumulation.
Under prior law, a portion of income from rental real estate was taxed where the
property was leased for more than five years and carried with borrowed funds. Tax
did not apply where more than 50 percent of property was leased under short-term
leases, provided no lessee occupied over 10 percent of the property on a long-term
lease. The new code carries over the general provisions on taxation of rental income
but amends the lease rules to make the tax applicable in the sixth and succeeding years
where the tenant has not had a lease for more than five years but occupies the property
for more than five years. The rule of a constructive long-term lease after five years,
of occupancy is not applied in determining whether for purposes of the exemption from
the section less than 50 percent of the property is under long-term lease. Furthermore,
in determining whether less than 50 percent of property is under long-term lease, if
a lease of less than five years is renewed during the last half of its term, the unexpired
portion of the first lease will not be added to the second to determine whether or not
the second lease is a long-term lease.
IV. TAXATION OF ESTATES AND TRUSTS
The new law combines in one place the substantive rules governing the income tax
on estates and trusts and their beneficiaries and contains a number of substantive
changes which are intended to eliminate uncertainties, plug loopholes, simplify tax
procedures, and cure inequities which are present under existing law.
A. General provisions
In general, estates and trusts, although regarded as separate taxable entities, are
treated as conduits through which income flows to the beneficiaries. Under the new
law, in general, all distributions regardless of source are deductible by the estate
or trust and includable in the income of the beneficiaries, but the amount so includable
cannot exceed the "distributable net income" of the trust. This treatment is accomplished through a new concept of "distributable net income" which is also utilized to
determine the character of the items of income distributed to beneficiaries or retained
by the trust, such as dividends and tax-exempt interest. The new law thus eliminates
the necessity for tracing income under the so-called 65-day and 12-month rules of
prior law.
The adoption of taxable income as the foundation for distributable net income also
eliminates wastage of allowable deductions. Under prior law, deductions allowable to a
trust which did not reduce income received by a beneficiary were not allowed as a
deduction to the beneficiary. Moreover, if on termination of an estate or trust, the
trust or estate had a net operating loss carryover, a capital loss carryover, or deductions in excess of gross income for its last taxable year, they could not be availed
of by beneficiaries succeeding to the property of the trust or estate. These deductions
will now be available to beneficiaries.
For the sake of simplicity, separate rules are established for simple trusts and
complex trusts, thus confining the more complicated provisions, to complex trusts.
274
1954 REPORT OF THE SECRETARY OF THE TREASURY
B.
Simple
trusts
A trust may qualify under the simple trust provisions of the new law if all of its income is required to be distributed currently to beneficiaries other than charitable,
educational, and similar organizations, and the trust does not distribute principal in the
years involved. If a trust does qualify as a simple trust, in general, it may deduct
amounts required to be distributed to the extent of the distributable net income; and its
beneficiaries are required to include these amounts in their income for tax purposes to
the extent of distributable net iricome. Essentially, the treatment provided for simple
trusts is the same as that provided by present law except that the deduction for personal
exemption is increased from $ 100 to $ 300 to eliminate taxing small amounts of capital
gains realized by them.
C. Complex t r u s t s
AU estates and trusts not qualifying as simple trusts are subject to more complicated
provisions contained in separate sections of the new law.
Under the new law, an estate or trust is aUowed a deduction in computing taxable
income for the sum of the amount of income for the taxable year .which is required to
be distributed currentiy and any other amount distributed (with certain exceptions),
but not in excess of the distributable net income for the year. The beneficiaries are
required to include the amounts distributed to them in their income, up to the distributable net income. As in the case of simple trusts, the income in the hands ofthe
beneficiary retains the same character it had in the hands of the fiduciary.
To prevent a shift in the tax burden from the beneficiaries of a trust to the fiduciary,
the new law, in general, taxes the beneficiaries on the amount of the distributions made
to them in any year to the extent of the trust income for that year, plus the undistributed
income of the trust for the five preceding taxable years. To the extent that the distributions in a given year exceed the distributable net income during the year, they wiU
be reaUocated to prior years in inverse order but wiU be reaUocated to a particular
year only to the extent that there remains distributable net income for that year which
was not in fact distributed. In order to prevent double taxation, the beneficiaries are
allowed as a credit a ratable portion of the taxes imposed on the trust for the previous
years. Exceptions are provided from the appUcation of these rules for certain simations
where tax avoidance was not considered a serious factor.
D.
••Clifford" type t r u s t s
Prior law contained stamtory provisions taxing to the grantor income of a trust where
he retained in effect a power to revest title to the trust property in himself, or where
the income was accumulated or used for his benefit. In addition, regulations (commonly
known as the Clifford Regulations) provided rules taxing the grantor on income of an
irrevocable trust, if the trust was such as to constimte him substantial owner of the
property, as, for example, if the trust property or income could remrn to him after a
relatively short term of years, or he retained in effect powers to control the beneficial
enjoyment or certain broad administrative powers. The new law contains the stamtory
provisions of prior law and also incorporates the basic provisions ofthe regulations,
but with variations in the precise standards applied. An important provision in the new
law is that a grantor may be taxed on income of an irrevocable trust if the trust property
may revert to him within ten years, but if the beneficiary is a designated school,
hospital or church, the grantor wiU be taxable only if the reversion wiU occur within
less than two years.
E. Income in r e s p e c t of decedents
Income which accrues to a recipient by reason of the death of an individual is taxed
to the recipient at the time the income is received, but he receives a deduction for the
estate tax which is attributable to the inclusion of that income in the estate of the
EXHIBITS
275
decedent. This provision was in the prior law and is retained by the new law, but it is
expanded to include subsequent recipients of the income after the first. In addition,
the new law treats certain additional items as items of income accruing by reason of
the death of the decedent, as, for example, installment obUgations.
V. CAPITAL GAINS AND LOSSES
The new code leaves unchanged the tax rate and the basic principles applicable to
capital gains and losses. The 1954 changes were confined principaUy to technical and
definitional problems.
A.
P e r s o n a l r e s i d e n c e and i n v o l u n t a r y c o n v e r s i o n s
The new code makes some revisions in the provision which aUows the taxpayer who
sells his principal residence and acquires a new one within a specified period to defer
the tax on any resulting capital gain. For purposes of computing gain on the old residence, the new code substimtes for the term "seUing price" a new term "adjusted sale
price," which is defined as the amount realized, reduced by expenses for fixing up the
house if incurred and paid within specified periods. This change has the effect of aUowing
the deduction of both the seUing expenses (including a broker's commission) and cost of
fixing up the old residence in computing gain.
In the case of an involuntary conversion of a personal residence, the regular involuntary conversion provisions now apply. This gives the taxpayer a longer replacement
period than the one year, or 18 months, available in the case of the sale of a principal
residence generaUy.
In addition to extending the involuntary conversion provisions to personal residences,
the new code treats as an involuntary conversion (1) the sale of property lying within
an irrigation projct where the sale is made in order to conform to the acreage Umitation provisions of Federal reclamation laws; and (2) the destruction or sale of livestock by or because of disease.
B.
Sale of subdivided r e a l estate
The new code provides new rules under which an individual who holds real property
for investment can subdivide the property to dispose of it and stiU be eligible for capital
gains treatment. Under prior law, such an individual was likely to be considered a dealer
solely on account of such subdivision activity and be subjected to ordinary income tax
rates on his long-term gains.
If the taxpayer makes no more than five sales of lots from a single tract of real
property through the end of the taxable year, the entire proceeds are now treated as
realized from the sale of a capital asset. In the year in which the sixth sale is made,
and on subsequent property sales, the gain, up to 5 percent of the seUing price, must
be reported as ordinary income; any gain remaining is treated as a capital gain. In
determining taxable income, seUing expenses may be taken as deductions from gross
income but only to the extent that the gain is reported as ordinary income. The remainder
of the selling expense may be appUed to reduce the portion of the proceeds treated as a
capital gain.
To qualify for the special treatment, the taxpayer must not be a dealer in real estate,
must not have made a substantial improvement on the property, and must have held the
property for five years. If the lot or parcel was acquired by inheritance or devise, no
holding period is imposed. Property does not qualify for this treatment if a major
improvement substantiaUy enhancing the value of the particular lot sold has been made,
directiy or indirectiy, by the taxpayer or his relatives. If the taxpayer has held the
property over ten years, he may make certain necessary improvements without disquaUfying the sale for capital gains treatment. These include installation of water or
sewer facilities or roads, if local market conditions require such improvements, provided the taxpayer makes no adjustment reflecting any of the cost of such improvements
in the basis of the property or of any other property he owns.
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1954 REPORT OF THE SECRETARY OF THE TREASURY
C.
Inventions
The new law permits income from the transfer by the holder of a patent of all the
substantial rights under a patent (regardless of whether the purchase price takes the
form of royalty payments) to be treated as a capital gain. This treatment will apply to
professional as well as amateur inventors. Under prior law, amateur inventors could
claim capital gains treatment on the proceeds from the sale of patents, but professional
inventors could not. Moreover, if a sale arrangement resulted in royalty income, rather
than installment payments, even an amateur inventor faced uncertainty as to whether
he received capital gains or ordinary income treatment.
In addition, the new law accords capital gains treatment to any individual who sells an
interest in the invention acquired before the time it is acmally reduced to practice,
except where the individual is the employer or a close relative of the inventor.
D. N o t e s and a c c o u n t s r e c e i v a b l e
Proceeds realized on the sale of accounts or notes receivable are also given new treatment. Where these accounts or notes have been acquired by tl^e taxpayer in the sale of
inventory or stock in trade or in rendering services, their value must be taken into
income. If they are subsequently sold, the difference between the proceeds of the sale
and the value at which they were previously taken into income is treated as ordinary
income or loss. Prior law prescribed capital gain or loss treatment in these cases,
unless the notes or accounts were held until maturity or unless the taxpayer is a dealer
in such notes or accounts.
E . Bonds
The new law provides that any gain realized by the holder of a bond (other than taxexempt bonds) issued after December 31, 1954, and attributable to the original issue
discount will be taxed as ordinary income upon redemption. Also, the discount is spread
over the entire period to maturity, and where the bond is sold prior to maturity, that
portion of the gain which corresponds to the prorata portion of this discount is treated
as ordinary income. Any gain in excess of this prorated discount is treated as capital
gain. These rules are applicable whether the bond is in registered form, with coupons
attached, br otherwise. Where such bonds are not issued at a discount, any gain on
redemption will be treated as a capital gain.
The treatment noted above clarifies problems raised under prior law when nonregistered or noncoupon bonds were redeemed, or when registered or coupon bonds
were issued at a discount.
In the case of bonds sold with a number of coupons detached, other than the coupons
covering the succeeding 12 months, the new law provides that any gain realized by the
holder on the subsequent sale or redemption of the bond will be treated as ordinary
income up to the amount of the artificial discount created by detaching coupons.
In the case of so-called face-amount certificates, the difference between the lump
sum received at the end of a period of time and the series of payments made by the
investor to receive this lump sum is now treated as an original issue discount and
subjected to the riew rules, subject to the possible right to spread the gain over three
years.
F.
E x c h a n g e of i n s u r a n c e p o l i c i e s
The new law provides that no gain or loss will be recognized on the exchange of (1) a
life insurance contract for another life insurance contract or for an endowment or
annuity contract; (2) an annuity contract for another annuity contract; and (3) an endowment contract for an annuity contract or for another endowment contract, but only
where the endowment contract received will not have a maturity later than that of the
contract exchanged.
EXHIBITS
277
The contract received in any of these three types of exchanges will take the basis of
the contract exchanged for it, with adjustments for other payments accompanying the
transfer. Under prior law, taxation of the excess of the value of the policy received
over the premiums paid for the exchanged policy was not deferred.
G.
Termination payments
The new code continues the provision of prior law which treats as a long-term capital
gain certain amounts received by an individual in exchange for his rights to receive,
following retirement after more than 20 years' employment, a percentage of his employer's profits for a period of at least five years or until death. To qualify, the
individual's rights must have been included in the terms of his employment for not less
than 12 years and the amounts received in exchange for his rights must be received
in one taxable year after his retirement. This provision is now limited to contracts
entered into before the date of enactment of the new code.
H. S h o r t s a l e s and o p t i o n s
The new law provides that the treatment of gains or losses resulting from short
sales other than hedging transactions in comrtiodity fum res will depend upon the nature
of the assets used to close the sale. If these assets are capital assets, capital gains or
loss treatment will result; if the assets do not fall within the statutory definition of
capital assets, ordinary income or loss treatment Will be accorded. Prior law, by
treating all short sales as sales of capital assets, permitted a dealer in commodities
or securities to obtain long-term capital gains treatment by selling short his stock in
trade, a noncapital asset, rather than by selling it outright.
The new law provides consistent treatment for sales and failure to exercise options,
and in the case of the option-holder, makes the treatment depend on the nam re of the
underlying asset. Thus, if a taxpayer acquires an option relating to a noncapital asset,
he will receive an ordinary gain or loss when he sells the option and ordinary loss if
it expires without his exercising it; if the underlying asset is a capital asset, he will
receive capital gains or loss treatment, regardless of how he disposes of the option.
The grantor of the option, however, will always receive ordinary income on the failure
to exercise the option.
Under prior law, the holder of an option always realized a short-term capital loss
upon failure to exercise the option and the grantor received a short-term capital gain.
Where the option was sold, the holder (other than a dealer in options) realized a longer short-term capital gain or loss, depending on how long he had held the option.
Under the new law, a "put" (an option to sell an asset at a fixed price) is not to be
presumed to be a short sale if, among other things, it is purchased on the same day as
the stock to be used to exercise the option. Thus, a "put," purchased on the same
day as the stock which is to be used to exercise it in order to hedge against a decline
in the stock's value, will not fall within the special rules governing certain short sales
which limit the oppormnity to convert what are substantially short-term capital gains
into long-term gains.
I. Holding p e r i o d
The new law provides that the holding period of a commodity accepted under a commodities future contract will date from the time the contract was acquired, rather than
from the time of delivery of the commodity. Under prior law, a new holding period was
provided for the commodity in such cases, even though the taxpayer would have received
long-term capital gains or loss treatment had he sold the future contract itself after
holding it for more than six months.
The new law permits a taxpayer to "tack on" to the holding period of an asset acquired
in a tax-free exchange the holding period of the asset given up in the exchange only where
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1954 REPORT OF THE SECRETARY OF THE TREASURY
both assets are capital assets or where the property exchanged was depreciable
property used in the trade or business. This limitation Was not provided in the prior
law which, therefore, permitted long-term capital gains treatment for the proceeds
of sale of a capital asset acquired less than six months prior to such sale in a tax-free
exchange for a noncapital asset held for a sufficient period.
J. Cancellation of lease or d i s t r i b u t o r ' s a g r e e m e n t
Under the new code, amounts received by a lessee for the cancellation of a lease or
by a distributor on the cancellation of a distributorship agreement (where the distributor
has a substantial capital investment in the distributorship) are treated as received on
a sale or exchange. The prior law, as a result of a recent court decision, was uncertain
as to whether such cancellations were to be treated as sales or exchanges, which could
give rise to capital gain or loss.
K. Basis of property acquired from a decedent
Under the new law, the basis of virmally all property includable in the gross estate
of a decedent will be the value of the property at the date of death, or if the optional
valuation date is used, one year later. Under prior law, this change in basis was not
available with respect to property included in the decedent's gross estate for estate
tax purposes if it had been transferred in contemplation of death, acquired by the surviving tenant of a joint tenancy or tenancy by the entirety, or included in the gross
estate as a reserved income transfer.
The only exceptions to the new rule are income in respect of a decedent, including
unexercised restricted stock options, and the interest element in a survivor's interest
in a joint and survivor's annuity accruing since the annuity was purchased. When the income is reported for income tax purposes by the estate or beneficiary, a deduction will
be allowed for any estate tax attributable to the values included in the decedent's gross
estate.
In the case of depreciable or depletable property, acquired inter vivos, the new rule
provides that the value at date of death (or one year later) will be reduced by the total of
the taxpayer's deductions for depreciation, depletion, and amortization taken between
the date of gift and the date of the decedent's death.
L.
Employee
stock
options
The new law removes ambiguities in the tax treatment of restricted stock options.
Special rules are provided to govern the effects of different types of reorganizations of
employer corporations on the rights of employees holding restricted stock options.
Moreover, whereas under the old law stock options on which the option price was not
specified were difficult to qualify as restricted stock options, these options, with certain
limitations, may now qualify. Likewise, where the old law was in doubt on the tax treat-,
ment of a restricted stock option exercised by the estate or beneficiary of a decedent
employee, the new law specifically grants the estate or beneficiary the right to exercise
a restricted stock option.
Prior law made no provision for adjusting the option price if the stock subject to a
restricted stock option had substantially declined in value. Under the new law, if the
stock decUnes at least 20 percent over a 12-month period, restricted stock options
may be repriced, within the qualifying limitations.
The old law placed no time limit on the exercise of a restricted stock option. To
insure that the appreciation in the value of the option is due to the employee's efforts
(as distinguished from the mere passage of time), the new law limits the exercise
period to ten years.
VL ESTATE AND GIFT TAXES
The new code simplifies the computation of estate and gift taxes, eliminates certain
procedural complexities in the preparation of returns, relieves taxpayers of the obligation
EXHIBITS
279
to file remrns for certain transfers which in many cases would result in little or no
tax liability, clarifies the taxation of annuities, liberalizes certain deductions, revises
the treatment of previously taxed property, and makes a major change in the taxation of
life insurance.
(
A. P r o p e r t y previously taxed
The new code makes extensive changes in the tax treatment of property previously
taxed. Under the old law, the value of property received from a prior decedent (or by a
gift subject to tax) within five years of the death of the current decedent and either still
in his possession or traceable was deductible from his gross estate. The 1954 code
replaces the deduction with a eredit based on the amount of tax acmally paid on the
property in the estate of the prior decedent. The credit is aUowed in full where the
current decedent died within two years before or within two years following the death
of the prior decedent, and then decreases by 20 percent every two years until no credit
is allowed after the tenth year. The credit, which is based on the value of the property
and the tax paid in the prior estate, is Umited to the tax attributable to the property in
the estate of the current decedent. The credit is available for property passing as a
result of the exercise or nonexercise of powers of appointment and for inter vivos
taxable transfers to a person who predeceased the transferor by less than two years.
The new law also extends the credit for property previously taxed to transfers from
spouses to the extent that the marital deduction has not been taken against the property.
Under prior law, deduction was not allowed for transfers between spouses.
B. P r o c e e d s of life insurance
The premium payment test for life insurance proceeds has been eliminated. Under
the new law, life insurance proceeds continue to be includable in the decedent's estate
if the decedent retains at his death incidents of ownership with respect to such policy.
Where, however, the decedent previously transferred ownership of the policy and does
not possess more than a 5 percent reversionary interest at his death, it is not includable
in his estate eyen though he paid the premiums. Under previous law, the decedent was
taxable on the policy if he paid premiums on it.
C.
Expenses
Under prior law, deductions for expenses under the estate tax could not exceed the
value of the property subject to claims, that is, the probate estate. The 1954 code allows
as deductions expenses in connection with property not in the probate estate if they are
of the type which would have been allowed if the property were in the probate estate
and if they are paid within the period provided for assessment of estate tax. Moireover,
expenses of administering property included in the probate estate are now allowed
without regard to the total probate estate if paid before the estate tax remrn is filed.
D. Joint and survivor annuities
As under prior law, joint and survivor annuities purchased by a decedent annuitant
are.subject to estate tax at the death of the decedent. However, joint and survivor
annuities provided under pension, stock-bonus, profit-sharing or retirement plans are
exempted from estate tax (to the extent that they are financed by employers' contributions) if furnished under qualified plans and are subject to estate tax if furnished
under nonqualified plans.
E.
The m a r i t a l d e d u c t i o n
The conditions under which certain property interests passing to a surviving spouse
qualify for the marital deduction have been clarified. It is now made clear that a legal
280
1954 REPORT OF THE SECRETARY OF THE TREASURY
life interest on property as well as trust property over which the spouse has virtual
ownership may qualify for the deduction. In addition, where a surviving spouse does not
receive the entire income for life from the interest, the marital deduction is granted
for the specific portiori of property from which she gets income for life provided she
has a general power of appointment over an equivalent portion.
F.
Tenancies by the entirety
Under prior law, the creation or termination of a tenancy by an entirety could result
in a gift by one spouse to the other. Married couples who purchase real property and hold
it under a tenancy by the entirety frequently are not aware of the possible gift tax consequences. The new code meets this situation by providing that a transfer of real
property to a tenancy by the entirety Will not be regarded as a gift at that time, unless
the spouse who furnishes the major part of the consideration for the property elects
otherwise. However, if such a tenancy is terminated other than by death, a gift is considered as occurring at termination to. the extent the proceeds are divided between
husband and wife in different proportions to their contributions. The provision applies
also to the creation by husband and wife of a joint tenancy with right of survivorship in
real property.
G. Transfers taking effect at death
Under the new law, lifetime transfers of property which take effect at death wiU be
includable in the decedent's estate only if he retained at death a reversionary interest
in the property exceeding 5 percent of its value. Under the old law, such property was
includable in the gross estate even though the decedent had retained no interest in the
property so long as possession or enjoyment of the property could be obtained only by
surviving the decedent:
H.
Charitable bequests
The scope of the deduction of bequests of char itable contributions is extended to include
bequests to Veterans' organizations incorporated by acts of Congress, including the
American Legion, the Disabled American Veterans, the Veterans bf Foreign Wars,
AMVETS, and the United Spanish-American War Veterans. The deduction was also
broadened to include property passing to charity as the result of a termination of a
power to invade, if the termination took place prior to the filing bf the remrn.
I. Exemption for m e m b e r s of Armed Services
The new code extends for an indefinite period the exemption from additional estate
tax available to members of the Armed Forces dying in the combat zone during the
period persons are subject to induction under the Universal Military Training or Service
Act.
J.
Gifts to m i n o r s
The new code provides that gifts to minors will not be considered as gifts of a fumre
interest but will be eligible for the $3,000 exclusion if the income and property can be
spent by or for the child prior to his attaining the age of 21, and if not so spent, passes
to the child when he reaches age 21 or to his estate or appointee, if deceased. Under
the old law, the exclusion was usually not available for such gifts because they were
treated as gifts of a fumre interest.
K.
P r o p e r t y s e t t l e m e n t s i n c i d e n t to d i v o r c e
The new code specifically provides that most property settlements between spouses
followed by divorce within two years after the settlement do not constimte taxable gifts.
EXHIBITS
281
Under the old law, this was the treatment with respect to property settlements incorporated in the decree of divorce; but where settlements were not so incorporated, the
gift tax stams was uncertain.
L. Revaluation of gifts for prior y e a r s
The new code provides that the value of a gift as reported on the taxable gift tax remrn for a prior year on which the stamte of limitations has run is to be conclusive in
determining the tax rate to be applied to subsequent gifts. Under prior law, the tax on
a gift made during the current year could vary depending upon whether the valuation of
a gift made in an earlier year for which the stamte of limitations had run was accepted
as previously reported or was altered. In view of the accumulative namre of the gift
tax and the progressive character ofthe rate schedule, an upward revision of the earlier
valuation could increase andadownward revision could decrease the tax due on a current
gift.
M. Gifts of nonresident aliens
Under the new law, nonresidentaliens engaged in business in the United States continue
to be taxable on all gifts of property located within the United States. However, nonresident aliens not engaged in business here are now taxable only on gifts of tangible
property located in the United States and are not taxable on gifts of intangible property.
The old law taxed nonresident aliens on all gifts of property located within the United
States. The tax could readily be avoided by removing intangible property from the United
States prior to making a gift, thus depriving United States financial instimtions of the
depository business of nonresident aliens contemplating gifts.
VIL EXCISE TAXES
The Revenue Code of 1954 makes changes in the provisions relating tb the taxes on
alcoholic beverages, tobacco, machine guns and other firearms, and general admissions.
A. Alcoholic beverages and tobacco
The provisions relating to alcoholic beverages and tobacco are revised by eliminating
obsolete provisions, removing unnecessary record-keeping requirements and granting
producers and the Treasury Department greater freedom to adjust tax procedures to
accord with changing commercial practice. The tax rates are left unchanged.
1.
U s e of r e t u r n s f o r p a y m e n t of t a x
Under prior law, taxes on alcoholic beverages and tobacco were paid for by the
purchase of stamps required to be affixed to packages or containers prior to or at the
time of removal of the products from the factory or other bonded premises. The 1954
code authorizes the payment of these taxes by remrns, but provides forthe continued
use of stamps until such time as the Secretary provides by regulations for the use of
returns.
2.
Penalties
Under prior law, the provisions imposing penalties for violation of the law with
respect to the taxes on alcoholic beverages and tobacco products often provided for
minimum as well as maximum fines and jail sentences. The mandatory miriimum
requirements are omitted in the new code.
3. Stamps to evidence compliance with law
Under prior law, the stamps purchased in payment of taxes on alcoholic beverages
and tobacco were sold for their tax value. No charge was made for the stamps as such.
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1954 REPORT OF THE SECRETARY OF THE TREASURY
The law also required that strip stamps be placed on individual bottles of distilled
spirits to evidence payment of tax. These stamps cost producers 1 cent per bottle (onefourth cent for bottles of less than one-half pint).
The required use of strip stamps on distilled spirits containers is continued in the
new code. In addition, it is provided that when the return system for Hquor and tobacco
taxes is instituted, the Secretary or his delegate may require stamps to be affixed to
containers of beer and tobacco products to indicate compliance with the law, but all
stamps are to be furnished to rnanufacmrers without cost.
B. Distilled spirits
A nuriiber of changes were made in the provisions of the code relating to distiUed
spirits.
1. Authorization is provided for voluntary destruction of distilled spirits prior to
withdrawal from bond. Prior law provided for the collection of tax on distilled spirits
voluntarily destroyed unless such spirits were unfit for beverage purposes.
2. DistiUeries may be authorized by regulation to conduct other businesses (except
specifically prohibited businesses) on distillery premises, when it is found by the
Secretary of the Treasury or his delegate that such operations will not jeopardize the
revenue. Previously, only operations connected with the production of distilled spirits
could be conducted on distillery premises.
3. The requirement that all stills, for whatever purposes intended (except stills for
refining petroleum), be registered has been modified. Registration is to be required
only of stills intended to be used for the distillation, redistillation, or recovery of
distilled spirits.
C. F e r m e n t e d nnalt beverages
A number of changes were made in the provisions relating to fermented malt beverages.
1. All brewers may be authorized, under regulations, to use their premises for
producing and bottling soft drinks and for such other businesses as the Secretary, by
regulation, may find will not jeopardize the revenue. Under prior law, only breweries
which on June 26, 1936, were bottling soft drinks were allowed to carry on such business.
2. A refund or credit is provided for tax paid on beer belonging to a brewer if it is
remrned to the brewery for reconditioning, for use as materials, or destroyed under
required supervision. Provision also is made for credit or refund of tax paid if beer
belonging to a brewer is lost by casualty (other than by theft). No claim for casualty
loss will be allowed, however, if the brewer is indemnified by insurance or otherwise.
Under prior law, there was no provision for such credits or refunds.
3. A brewer owning two or more breweries is authorized to transfer beer without
payment of tax from one of his breweries to another. Prior law did not permit such
transfers, but comparable tax-free transfers under bond were permitted for wines and
distilled spirits.
D. Wines
Substantial changes are made in the laws relating to the taxation of wine.
1. Winery operators may, under regulations, be granted permission to carry on
certain operations in wineries besides the making of wine, if these operations are
conducted in a manner which will not jeopardize the revenue. This will permit wineries
to be used for making fruit juice, jellies, and jams.
2. The definitions of wines, the methods of preparation permitted, and the required
standards of quality are revised. A new provision permits use of methods acceptable in
"good commercial practice" to correct and stabilize wine. Prior law prescribed that
only "usual cellar treatment" might be used.
EXHIBITS
283
3. The law provides that tax-paid wine bottling houses will now operate under Government supervision. Under prior law, the Government could not supervise the bottling
of tax-paid wine.
4. Provision is made for the allowance of all losses of wine while in bond, except
losses by theft occurring because of negUgence or collusion. No allowance will be perniitted where the claimant is indemnified by insurance or otherwise. Allowance also is
made for voluntary destruction of wine in bond. Under prior law, tax was levied in all
cases of loss by theft, and destruction without payment of tax was permitted only for
wine unfit for use as wine.
5. Refund or credit is authorized for the tax paid on unmerchantable sparkling or
artificially carbonated wine which is remrned to bonded premises. The old law contained
no corresponding provision.
6. Sparkling and artificially carbonated wines are now taxed on a wine gallon basis
instead of the prior base of each one-half pint or fraction thereof in each container. The
rates for these wines are restated to make them the practical equivalent of the prior
rates. For example, the rate on champagne or other sparkling wines is changed from
17 cents on each half pint or fraction thereof in each bottle or other container to $3.40
per wine gallon. The rate per wine gallon is set at 20 times the rate per half pint
because most such wine is bottled in fifths, and each fifth has been taxed at 4 times
the half pint unit rate.
7. The exemption from tax for hard cider (usually sold during season by farmers
at roadside stands) is clarified by providing that the exemption applies when the cider
is not preserved by any process or by the addition of any material and is not offered
for sale as wine or a substimte for wine. Such cider was not taxable prior to 1936, but
the amendment of the law in that year to refer specifically to "apple wine" raised
some question as to whether hard cider might be taxable.
E. Tobacco products
The revision of the provisions relating to cigars, cigarettes, chewing and smoking
tobacco, snuff, and cigarette papers and mbes includes the foUowing:
1. Detailed stamtory provisions specifying the permitted sizes of packages and the
exact wording of notices and labels to be put on packages have been removed. The new
law gives authority for more flexible regulatory control.
2. Credits or refunds are authorized to be made to the manufacmrer for tax paid
on articles lost by casualty (except by theft) while in his possession. Prior law was
not specific in this matter.
3. Every person before commencing business as a manufacmrer of tobacco products
must obtain a permit to engage in such business. The permit may be refused if it is
deemed that the applicant is unlikely to comply with the tobacco tax provisions. Once
issued, permits may be suspended or revoked after hearing before proper authority.
Under prior law, these persons were required to register before commencing business,
but such registration had only informational value.
F . Machine guns and s h o r t - b a r r e l l e d f i r e a r m s
Three major changes are made in the taxes on machine guns and short-bar relied
firearms.
1. The terms "rifle," "shotgun," and "any other weapon" are now defined in the
law. This definition excludes from the scope of the taxes and registration provisions
ancient or antique guns subject to tax under prior law.
2. Doubled-bar relied shotguns with barrels less than 18 inches in length are made
subject to the $200 transfer tax and dealers or rnanufacmrers thereof to the $200 or
$500 annual taxes. Under an amendment to the prior law, approved in 1938 to afford
tax relief to sporting type firearms, the taxes on such shotguns were inadvertently
reduced to $1 for transfers and $1 and $25 per annum for dealers and manufacmrers,
respectively.
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1954 REPORT OF THE SECRETARY OF THE TREASURY
3. Forfeimre of weapons subject to tax is provided in the case of possession, importation, transfer, or production in violation of the law. Prior law provided only for forfeiture
for transfers or production in violation of the law.
G. General admissions
The tax on general admissions is amended to exempt admissions to: (a) Rodeos and
historical pageants if the proceeds a r e used exclusively for the improvement, maintenance, and operation of such rodeo or pageant; (b) athletic games between teams
composed of college smdents if the entire proceeds inure to the benefit of a hospital
for crippled children; and (c) baseball games if aU the players.have amateur or semiprofessional stams and the game is not primarily conducted for profit. In the case of
(a) and (c), the exemption applies only if no part of the net earnings of such events
inures to the benefit of any private shareholder or individual.
VUL PROCEDURAL AND ADMINISTRATIVE MATTERS
The new code substantially simplifies and brings together in one place (subtitle F) the
parts of the law relating to tax procedure and tax administration.
A. Filing date
For calendar-year taxpayers, the filing date for individual income tax returns and
for payment of tax is extended from March 15 to April 15. A similar one-month extension is provided for taxpayers fiUng on the basis of other fiscal years.
The filing date of the first declaration of estimated tax and the first quarterly installment payment by individuals is also extended from March 15 to April 15. However, no
change is made in the dates for payment of the last three quarterly installments of
estimated tax.
The alternative filing date for final individual income tax remrns in lieu of declarations available to farmers is moved from January 31 to February 15. Other taxpayers
are given the option of filing a final remrn on January 31, which relieves them of the
requirement of a fourth installment on January 15.
The date for filing gift tax remrns is postponed from March 15 to April 15.
B. Declarations of estimated tax
The 1954 code simplifies the system of declarations of estimated tax and eliminates
the filing of such remrns for about one million taxpayers.
Prior law required a declaration from an individual whose income was primarily
from wages or salaries subject to withholding if this income was expected to be more
than $4,500, plus $600 for each exemption. An individual with over $ 100 of income
from sources not subject to withholding was also required to file a declaration of estimated tax if he expected his gross income to be $ 600 or more.
The new code requires a declaration from a single individual with no more than $ 100
of gross income from sources other than wages and salaries subject to withholding only
if his total gross income is expected to exceed $5,000. In the case of a married person
with no more than $100 of gross income from sources not subject to withholding, no
declaration is required if the combined gross income of the two spouses is not expected
to exceed $10,000. The $10,000 exemption also applies to heads of households. An
individual who expects to receive more than $ 100 of gross income from sources not
subject to withholding is required to file a declaration only if his gross income is
expected to be more than $ 600 per exemption plus $ 400.
The new code also replaces the old system of penalties for underestimate and underpayment of estimated tax with a uniform charge at the rate of 6 percent per annum of
the amount of underpayment of an installment.
285
EXHIBITS
This charge is not imposed if the installment paid is at least equal to the installment
which would be required if the estimated tax were equal to 70 percent (66-2/3 percent
for farmers) of the tax shown on the final remrn. No charge is levied if the installment
paid, together with the previous installments, equals the amount which would have been
required if the estimated -tax were equal to (1) the preceding year's tax, (2) a tax based
on the preceding year's income with the current rates and exemptions, or (3) 70 percent
(66-2/3 percent for farmers) of a tax computed by annualizing the experience of the
portion of the year preceding the installment.
No additional charge will be imposed where the amount paid as an installment,
together with previous installment payments, is equal to 90 percent of a tax computed
on the income received from the beginning of the year up to the month in which installment is required to be paid as if that were a full year's income.
C. P a r t i a l current payment of corporation income tax
Under a plan adopted in 1950, corporation tax payments were accelerated from four
quarterly installment payments tb two 50 percent installments, payable in the third and
sixth month after the close of the taxable year. The transition to this system was
accomplished over a five-year period beginning with 1950 and ending with 1954 tax
liabilities. As a result of this transition, calendar year corporations paid 45 percent
of their 1953 tax liabilities each in March and June of 1954, and 5 percent in September
and December. Their 1954 tax liabilities will be paid in two 50 percent installments in
March and June 1955.
The 1954 code adopts a new system of current tax payment applicable to the larger
corporations. They will file a declaration of estimated tax and make a partial payment
in the middle of the ninth month of the current taxable year and again in the middle
of the last month of the ydar. When the transition to the new plan is completed, calendar
year corporations will pay one-fourth of their estimated tax each on September 15 and
December 15 of the current year, and the balance of their tax liability in two equal
installments on March 15 and June 15 following the taxable year.
The transition to the new system will start in 1955, when 5 percent of the estimated
tax for 1955 will be payable on September 15 and December 15, 1955. About 45 percent
of the 1955 tax liability will then be payable each in March and June of 1956. The esti-.
mated tax payments will step up by 5 percent each year, with a corresponding reduction
in the two final payments until 1960, when the four quarterly installment system will
be fully operative.
Schedule of a p p r o x i m a t e tax payments for c a l e n d a r y e a r c o r p o r a t i o n s under 1950 law (1949-54) and under
1954 code (1955-59)
[percent of tax liability due in each installment]
Income
yeax
Follovd.ng year
Income year
• Total
September
Deceraber
September
June
March
December
25
30
35
40
19^9
1950
1951
1952..
• 25
30
35
40
25
20
15
10
25
20
15
10
100
100
100
100
5
5
100
100
100
100
1953
1954
1955^
1956^
5
10
5
10
45
50
45
40
45
50
45
40
1957^
1958^
I959I
15
20
25
15
• 20
• 25
35
30
25
35
30
25
100
100
100
^ Since the percentages listed in the September and December columns for income year are based on the estimated tax which is coraputed by excluding $100,000 from the anticipated tax liability, the percentages
listed in the March and June colurans for the following year are approximate. The amount of corporation income tax remaining unpaid at the end of the taxable year must be paid in two equal installments on dr before March 15 and. June 15.
339256
0-55-20
286
1954 REPORT OF THE SECRETARY OF THE TREASURY
Corporations with tax liability under $100,000 are exempt from the current payment
requirements, and continue to pay their tax in two equal installments. In the case of
those with tax liability in excess of $100,000, such requirements apply only to the
portion of tax liability in excess of $ 100,000.
To insure compliance with the current payment plan, the provisions applicable to
individuals prescribing a 6 percent charge for underpayment are, for the most part,
made applicable to corporations as well. As in the case of corporations, exceptions
are provided to allow for the fact that in the early part of theyear taxpayers may not
know what their income will be over the year.
D. Information r e t u r n s
The 1954 code eliminates the prior law requirement for information remrns from
persons making payments to another person, not in the course of a trade or business,
where the payments are $600 or more and consist of rents, salaries, wages, premiums,
annuities, compensations, remunerations, emoluments, or other fixed or determinable
gains, profits, and income. These information returns are now required only from
persons engaged in a trade or business. The provisions of prior law with respect to
information returns by persons in the business of collecting foreign items and by corporations making interest payments are retained.
E. Payment of taxes in foreign currency
A new provision of the 1954 code gives the Secretary or his delegate discretionary
authority to allow payment of taxes in the currency of a foreign country under such
circumstances and subject to such conditions as may be prescribed by regulations.
F . P r o c e d u r a l and administrative m a t t e r s
Other provisions clarify, simplify, and standardize the rules governing the assessment and collection of taxes, as well as abatements, credits, refunds, and penalties.
G. Effective dates
The income tax provisions of the 1954 code, generally, a r e applicable to taxable
years beginning after December 31, 1953, and ending after the date of its enactment,
August 16, 1954. The estate tax provisions are effective with respect to estates of
decedents dying after the date of enactment of the 1954 code. The gift tax provisions
are applicable to gifts made in the calendar year 1955 and subsequent years. The
miscellaneous excise tax provisions are effective for taxable periods beginning on or
after January 1, 1955.
Procedural and administrative provisions relative to taxes imposed by the 1954 code
are effective the day after enactment. Many general administrative provisions of the
1954 code are made applicable to taxes imposed by the 1939 code and are effective
the day after enactment. The provisions ofthe 1954 code relating to assessment (general
rules), collection and abatements, credits and refunds will become applicable to taxes
under both the 1939 code and the 1954 code on January 1, 1955, and prior to such date
the corresponding provisions of the 1939 code will remain in effect whether the taxes
were imposed by the 1939 or the 1954 code.
Any provisions of the 1954 code not otherwise provided for became effective on the
day after its enactment.
EXHIBITS
287
Exhibit 43. ---Letter of SecretaryoftheTreasury Humphrey,
April 26, 1954, to the Chairman of the Senate Committee
on the Judiciary, on a proposed constitutional amendment
relative to taxes on incomes, inheritances, and gifts
My dear Mr. Chairman: In response to your letter of April 22, we a r e glad to have
the oppormnity to present the Department's views on S.J. Res. 23, * Proposing an
*
amendment to the Constitution of the United States relative to taxes on incomes,
inheritances, and gifts."
The constimtional amendment proposed by this joint resolution would repeal the
sixteenth article of amendment to the Constimtion and in its stead would give the
Congress the power to tax income only under certain restrictions. The proposed
amendment would also deprive the Congress of power to lay or collect any taxes on
transfers of property at death or by gift.
With respect to income taxes, the general rule under the proposed amendment would
allow the Congress to impose levies only up to a maximum rate of 25 percent. The
amendment would further provide, however, that by a vote of three-fourths of all
members of each House the Congress might fix a maximum top rate above 25 percent,
for periods not exceeding one year each, if that rate does not exceed the lowest aggregate
rate by more than 15 percentage points. Subject to this limitation different tax rates
might be imposed on incomes of individuals and corporations.
This proposal would have far reaching effects on the financial strucmre of the Federal
Government, and deserves careful consideration in the light of the existing needs and
sources of revenues. To pay for the large defense expendimres forced on us by threats
of foreign aggression and to finance domestic activities, tax rates have been pushed to
admittedly high levels. The administration fully shares thedesire to reduce tax burdens
and is exerting every effort to cut back expendimres so as to permit further tax reductions. As the President pointed out in his broadcast to the Nation on March 15, we have
made total savings of $7 billion in the spending program this year, and through tax
cuts of approximately equivalent amounts these savings are being passed Qn to all taxpayers. The President also stated that further tax reductions cannot be made now
without either seriously weakening our national defense or incurring large deficits.
The income taxes upon individuals and upon corporations are now the mainstays of
our entire revenue system. In the past fiscal year, 1953, the'net yield from individual
income taxes was $29.8 billion and that from corporation income taxes $21.2 billion.
These two taxes accounted for four-fifths of all budget receipts. While the estate and
gift taxes, which yielded $891 million in fiscal 1953, are of less fiscal significance,
they are important elements of the tax structure.
Under the general rule bf the proposed constimtional amendment, all income tax
rates higher than 25 percent would be reduced to that level. The effect of a top rate
of 25 percent would be to cut the annual yield of corporation income taxes by $8.8
billion and individual income taxes by $3.5 billion. An additional $ 1 billion of revenue
would be lost by elimination of estate and gift taxes, niaking the total revenue loss under
the proposal $ 13.3 billion annually unless special action were taken each year.
Under the special rule provided in the resolution, some flexibility would be permitted
in income tax rates. For instance, it would be possible for the Congress, by a threefourths majority vote each year, to maintain the corporate tax at its present top rate
of 52 percent provided the rate on corporations with small incomes were raised from
30 percent to 37 percent. It would be possible also to use the same 52 percent maximum
rate for individuals provided the lowest rate imposed on individuals was raised from
20 percent to 37 percent. It is highly doubtful that such a high starting rate would be
acceptable. If the present starting rate of 20 percent on individuals were maintained,
the highest rates imposed upon individuals and corporations would be 35 percent. Under
these assumptions the effect of S. J. Res. 23 would be a $7 billion reduction in revenues
from existing levels.
288
1954 REPORT OF THE SECRETARY OF THE TREASURY
While a redistribution of Federal tax burdens may be desired by many of our citizens,
it is highly important that any such alteration be undertaken in a manner which does
not disrupt the financing ofthe Government. The proposed constitutional amendment is
negative in character. There is no assurance that if it were adopted there would be a
corresponding reduction in Government spendingor a development of alternative sources
of revenue. While some flexibility would be provided since Congress is permitted to
exceed the general limitation, this procedurewouldatbest keep finances in a precarious
position. The relaxing of the limitations would require annual legislation, and a failure
to achieve a three-fourths majority in either House could precipitate a very large
deficit.
In present circumstarices the restrictive constimtional amendment proposed by S. J.
Res. 23 would require a reconstruction of the Federal tax system. A sudden shift to
other forms of taxation would have to be made on a scale that would be neither feasible
nor, probably, acceptable to most prople. A financial breakdown could easily result.
The change in the Federai tax system that would be forced by this proposal would
also seriously affect State and local governments. In the substitution of other forms
of taxation, the National Government would have to resort mainly to types of taxes
now being extensively utilized by other levels of government.
Our tax system is under continuing study by the Congress and the Treasury Department. These smdies may well lead to proposals for changes in the relative significance
of different sources of revenue. But the changes should be made systematically, and
existing major sources of revenue cannot be restricted until substimtes are agreed upon.
This balanced approach to tax reform can best be attained through the elected representatives in the Congress. Hence, while we agree with some of the objectives of the
proposed constimtional amendment, the Treasury Department opposes the enactment
of S. J. Res. 23.
The Director, Bureau of the Budget, has advised the Treasury Department that
there is no objection to the presentation of this statement.
Sincerely yours,
G, M. Humphrey,
Secretary of the Treasury.
Exhibit 44. --Miscellaneous revenue legislation enacted by
the Eighty-third Congress, Second Session
Public Law 452, June 30, 1954, continues until June 30, 1955, the suspension of certain
import taxes on copper.
Public Law 517, July 22, 1954, **Revised Organic Act of the Virgin Islands,** provides
that inhabitants of the Virgin Islands shall satisfy their United States income tax
liability by paying their taxes to the Treasury of the Virgin Islands and provides other
amendments relating to the internal revenue collections, and the disposition thereof,
on articles produced in the Virgin Islands and transported to the United States.
Public Law 538, July. 27, 1954, authorizes the Supreme Court of the United States
to make and publish rules for procedure on review of decisions of the Tax Court of the
United States.
Public Law 559, July 30, 1954, permits suits against the United States in district
courts for recovery of taxes regardless of the amount involved and allows jury trials
in such suits.
Public Law 595, August 16, 1954, modifies the duty and import taxes on the importation of wood dowels.
Public Law 678, August 27, 1954, continues until June 30, 1955, the suspension of
duties and import taxes on certain metal scrap.
EXHIBITS
289
Public Law 703, August 30, 1954, "Atomic Energy Act of 1954," provides that after
August 30, 1954, no contract shall be entered into, modified, or amended, by the Atomic
Energy Commission to provide for direct payment or direct reimbursement of any
Federal income taxes on behalf of the contractor performing the contract.
Public Law 729, August 31, 1954, amends the Internal Revenue Code to permit the
filling of oral prescriptions for certain drugs.
Public Law 768, September 1, 1954, ''Customs Simplification Act of 1954," includes
a technical amendment to the Revised Organic Actof the Virgin Islands relating to taxes
imposed on articles imported from the Virgin Islands.
INTERNATIONAL FINANCIAL AND MONETARY
DEVELOPMENTS
Exhibit 45. --Announcement, February 18, 1954, by Secretary of the Treasury Humphrey of the signing of a stabilization agreement between the United States and Peru
Secretary Humphrey today announced the signing of a Stabilization Agreement between
the United States and Peru. The agreement was signed by Ambassador Berckemeyer
on behalf of his government and the Central Reserve Bank of Peru.
Under the terms of this agreement, the United States Exchange Stabilization Fund
undertakes to purchase Peruvian soles up to an amount equivalent to $12.5 million for
the purpose of stabilizing the United States dollar-Peruvian sol rate of exchange if the
occasion for such use should arise. It is understood that Peru has also entered into an
agreement with the International Monetary Fund whereby that institution agre.es to make
available up to $12.5 million for the same purpose. The two agreements therefore can
provide up to a total of $ 25 million to assist Peru in stabilizing its currency.
Observing that Peru has maintained its international trade and payments substantially
free from governmental restrictions, Ambassador Berckemeyer advised the Treasury
of. his government's intention to preserve this freedom by pursuing sound fiscal and
monetary policies. He said such policies will enable Peru to maintain a strong currency
internationally and contribute to Peru's ultimate objective of exchange rate unification
and the establishment of a fixed rate of exchange.
Operations under the agreement with Peru will be closely coordinated with the activities of the International Monetary Fund in order to contribute to the efforts of the Fund
to stabilize the exchange relationships of its members.
Exhibit 46. - - P r e s s release, April 17, 1954, on the change
in rate of the Mexican peso
The Treasury Department today stated that Mexican Government officials had outlined
the simation and reasons which led to the change in the rate of the Mexican peso in which
the International Monetary Fund has concurred.
The Mexican authorities reported that the deficit in the balance of payments and an
outflow of funds had put increasing pressure on the reserves of the Bank of Mexico and
they felt that the only feasible course was to establish a new rate of exchange between
the Mexican peso and the dollar. The Mexican authorities stated that by taking this
course they would be able to avoid restrictions on the traditional freedom of exchange
transactions in Mexico.
The United States-Mexican Stabilization Agreement remains in force. This agreement
between the United States Treasury and the Mexican Government provides that the
United States Treasury Stabilization Fund will purchase Mexican pesos up to an amount
equivalent to $75 million. No purchases of Mexican pesos have been made under the
agreement.
290
1954 REPORT OF THE SECRETARY OF THE TREASURY
Exhibit 47. --Statement by Deputy to the Secretary Burgess
before the Subcommittee on Federal Reserve Matters of
the Senate Banking and Currency Committee, March 29,
1954, on gold
I welconie this opportunity to appear before you to discuss the important subject of
gold.
This committee is considering bills which raise three questions of gold policy. S. 2332
would put the United States back on the gold standard as we knew it prior to 1933. S. 13
and S. 2364 would establish a domestic free market for gold, and the fourth bill, S. 2514,
involves, among other things, the question of an increase in the official price for gold.
It is appropriate that the Congress should examine these questions.
Various aspects of these questions were reviewed by subcommittees of the Joint
Committee on the Economic Report under Senator Douglas in 1949-1950 and Congressman Patman in 1952.
From the founding of our Nation until 1933, with interruptions in time of serious war^
the dollar was firmly attached to gold. The gold value of the dollar, established under
Washington and Hamilton, was not changed, except fractionally, for over 140 years. The
confidence in the value of the dollar which this helped instill in our people and the people
of other countries was one of the foundations of the Nation's spectacular economic
success.
All business life depends on the making of promises, commitments, and thetr fulfillment. Lending and borrowing money, contracts to buy arid sell goods and services,
savings and investments all depend on confidence that money will keep its value. When
this confidence is broken, as we have seen in so many countries, the economic life is
disorganized and retarded.
The solid link between the dollar and gold is a valuable heritage. Fundamentally, of
course, the confidence of the people in their money must lie in their faith that their
governnient will conduct itself efficiently and prudently, that all of its policies, and
particularly its budgetary and fiscal and monetary arrangements, will be honest and
competently conducted. Nevertheless, a fixed relationship between gold and the currency of a country gives an added element of confidence and security.
In recent years the link between the dollar and gold has represented a basic stable
relationship in an unstable world economy. Economic values the world over have been
measured in terms of the United States dollar.
Our p r e s e n t gold policy
Now, I should like to review just what our present gold policy is, and how it got that
way.
You will recall that in the banking holiday in March 1933 we stopped redeeming currency in gold, and in April, under emegency legislation, the public was required to surrender gold coin and gold bullion to the Government.
The Agricultural Adjustment Act of May 1933 gave the President power to alter the
gold content of the dollar. Under emergency authority a series of increases in the price
of gold was made. The Gold Reserve Act of 1934 in effect confirmed the previous
emergency actions and gave the Secretary of the Treasury broad powers in buying and
selling gold and issuing regulations with respect to gold. Thereupon the President, in
January 1934, established the dollar value of gold at $35 per ounce, an increase of
69 percent from the value maintained for over 140 years.
Since January 1934 there has been no change in the official price of gold. The President's power to change the gold content of the dollar lapsed in 1943. The Bretton-Woods
Act of 1945 in substance terminated the power of the Secretary of the Treasury to buy
or sell gold at other than the established price of $ 35 an ounce.
Under present laws and regulations this country is on what may be termed an international gold bullion standard. We buy and sell gold freely with other countries through
their central banks and treasuries at the price of $35 an ounce, plus or minus a handling
charge of one-fourth of one percent.
EXHIBITS
291
We do not coin gold. We do not allow our citizens to hold gold except in industry and
the art5 and as jewelry, or collectors' items. Individuals and businesses cannot export
gold without Ucense. Our citizens can buy gold dust but have shown little interest in
doing so.
Our rules governing our citizens in these matters are basically similar to those of
other countries with developed economies. There is no one of these countries where
the central bankortreasury redeems its currency freely in gold coin, thougli in a number
of countries the citizens can buy gold in a so-called "free market," at whatever price
it may be available.
Since the removal of unnecessary restrictions on the citizen is a steadfast objective
of this administration, we are reviewing the regulations concerning gold, in an endeavor
to find ways in which we may reduce the administrative burdens which they impose on
individuals and firms. We hope that present conditions in the world's economy wiU
permit us to publish soon certain simplifications ofthe gold regulations, which I believe
will be welcomed, although they will not involve any modification of our general gold
policy.
The object of our policy and regulations is to protect our gold reserves, which support
the value of money and can be.used to settle international balances. The United States
holds $22 billion of gold out of the world's monetary stock of gold of $36 billion. This
huge stock of gold is a bulwark for confidence in the value of currency. In a world of
great uncertainties it is one of the anchors of value on whiph business transactions
depend.
It has been said sometimes that the gold in Fort Knox and other mint institutions is
idle and useless. Nothing could be less true. This gold is the legal reserve of the Federal
Reserve System against its deposits and currency in circulation. The knowledge all
over the world that the United States dollar has back of it this stock of gold coupled with
the intention and the assured abflity to maintain a constant price of gold; is at least one
firm basis for measuring world values. It is a major reason why the dollar can be used
everywhere to settle international transactions.
In summary, this is our present gold policy: we are maintaining an assured ability to
support a constant relationship between gold and the dollar, a relationship which is as
important to foreign countries as it is to us.
This continuing and unchanging link is, in fact, the most important part of our policy.
It is more important than the redeemability of cur rency into gold. It is a point of stability
in a world which sorely needs a stable basis upon which to build a secure and healthy
international economy.
C h a n g e s in policy p r o p o s e d by bills
One of the questions raised by the bills before you is whether it is now wise to reduce
the restrictions which we have maintained to protect this monetary reserve. Can we
safely now run the risk of letting both our own people and people elsewhere draw down
this gold freely and perhaps dissipate it so that the strength of our monetary reserves
is impaired?
It is the position of the Treasury that it would not be wise now to take the risk of a
major step in relaxing restraints. We still live in a very uncertain world. A large part
of the world's new gold production has been vanishing into gold hoards and becoming
unavailable for monetary reserves. Until the public temper is one of greater security,
it would be unwise to expose our gold freely to the hoarder.
In making basic changes of policy, it is desirable to act courageously and firmly. But
it is just as important to avoid acting premamrely. Premature moves invite the possibility of having to reverse the steps taken, perhaps under crisis conditions. And a
retreat from an important advance can cause damage which far exceeds the benefits
derived from the original advance.
Since the end of the war the free world has experienced a series of crises. Some
of these crises have been political in origin, arising out of the division between free
nations and those dominated from Moscow. A state of international tension has been
292
1954 REPORT OF THE SECRETARY OF THE TREASURY
puncmated at intervals by physical aggression or the threat of aggression. Each of these
attacks upon the security of the world has caused widespread political unrest and, as
always, people aU over the world haye sought the safety of gold during such intermittent
crises. I wish we were able to predict, today, that there would be no further disruptions
of this sort. Unfortunately, we cannot make that prediction and a prudent government
cannot act upon a basis of wishful thinking.
Other crises which have swepttheworld in recent years have been economic in origin.
When severe, these crises have shaken the exchange rates of the countries concerned.
Whether severe or not, they have put pressures on their gold reserves. TheUnited
States gold stock has been a focal point which feels the impact of these crises.
Mr. Chairman, with ypur permission, I wiU place in the record a table which shows
by years the gold stock of the United States, and the required legal reserves ofthe
Federal Reserve System, and also foreign holdings of bank balances or short-term
investments in the United States which are potential claims on our gold.
TABLE I. r-United States gold r e s e r v e vs. requirements and potential claims, 192Z-53
[ In millions of dollars ]
End of year
U.S. gold reserves
U.S. required
gold reserves
Foreign short-term
dollar balances^
Total of 2nd and
3rd columns
1922
1923
192A
1925
3,506
3,834
4,090
3,985
1,686
1,652
1,599
1,558
1,009
997
1,237
1,193
2,695
2,649
2,836
2,751
1926
1927
1928
1929
4,083
3,977
3,746
3,900
1,564
1,624
1,621
1,611
1,639
2,591
2,483
2,673
3,203
4,215
4,104
4,284
1930
1931
1932....
1933
4,225
4,052
4,045
4,012
1,562
1,781
1,967
2,166
2,335
1,304
746
392
3,897
3,085
'2,713
2,558
^ 8,259
10,124
11,422
12,790
2,729
3,610
4,101
4,170
670
1,301
1,623
1,893
3,399
4,911
5,724
6,063
1938
1939
1940
1941
14,591
17,800
22,042
22,761
5,099
6,354
7,897
8,310
2,158
3,221
3,938
3,679
7,257
9,575
11,835
11,989
1942
1943
1944
1945
22,739
21,981
20,631
20,083
9,997
11,902
14,350
10,868
4,205
5,375
5,820
7,074
14,202
17,277
20,170
17,942
1946
1947
1948
1949
20,706
22,868
24,399
24,563
10,731
11,294
11,894
10,753
6,481
7,135
7,156
7,623
17,212
18,429
19,650
18,376
1950
1951
1952
1953
22,820
22,873
23,252
22,090
11,005
11,720
12,055
12,151
9,222
9,302
10,731
11,771
20,227
21,022
22,786
23,922
1954, Jan. 31.
22,044
11,799
11,947
23,746
1934
1935.".
1936
1937
.,
SOURCE.—Foreign short-terra dollar balances: Department of Commerce, "The United States in the World
Economy"; Board of Governors of the Federal Reserve System, "Banking and Monetary Statistics"; "Treasury
Bulletin"; and "Federal Reserve Bulletin." U.S. gold reserves and required gold reserves: 1922-41 "Bariking
and Monetary Statistics"; and 1942-53 "Federal Reserve Bulletin."
^ Includes $2,806 million, the increment resulting from the reduction in the weight of the gold dollar,
January 1934.
^ Data are based on three somewhat differing series, as follows: 1922-1928, estimates based on 1929 figure,
adjusted for previous years by changes in foreign banking claims on the United States as published by the
Department of Comraerce; 1929-1933, as reported to the Federal Reserve Bank of New York by banks in New York
City; 1934-1953, as reported to the Treasury Department by banks in -the United States. Data represent shortterra dollar balances of foreign official and private institutions and of international organizations. For
the period 1944-1953, holdings of U. S. Government securities maturing within 20 months after date of purchase are included.
293
EXHIBITS
As shown in table I, between the end of World War II and the exchange rate adjustments of 1949, our gold reserves increased almost one-fourth, from twenty billion
doUars to almost twenty-five biUion doUars. The more realistic currency and price
relationships which foreign countries achieved from the devaluations, and the added
windfaU from our large imports of goods after the fighting began in Korea, as weU as
the support afforded by the continuing flow of American assistance and United States
Government expendimres abroad, caused foreign reserves to rise; so that our gold
stock feU to twenty-two biUion dollars by the middle of 1951.
Then, as foreigners again began to demand relatively more of our goods, they once
more found it necessary to send us gold. Our reserves rose one and one-half biUion
dollars between August 1951 and April 1952.
There soon foUowed a substantial improvement in the economic stabflity of important
countries overseas. This greater stability was reflected in a renewed outflow of gold
from the United States. We have sold one and a half bilUon dollars worth of gold to
foreign countries in the last eighteen months.
This ebb and flow of strength and confidence in foreign countries, which in large
part accounted for these successive increases and decreases of our gold reserves, was
reflected also in changes in the price of gold in markets throughout the world. This is
shown in the second table which I should like to lay before the committee.
T A B L E II. --Free market gold prices
[ In $ per fine ounce for bar gold, converted at free market rates of exchange ].
Hong Kong
Dec. 31, 1947...'.
Dec. 31, 1948
Dec. 31, 1949
May 31, 1950 (pre-Korea)..
July 31, 1950 (post Korea)
Dec. 31, 1950
Dec. 31, 1951
Dec. 31, 1952
Dec. 31, 1953
Feb. 27, 1954
49.54
46.30
38.48
43.39
43.05
41.38
38.95
35.62
35.86
52.06
48.76
40.18
37.31
44.59
44.47
42.71
40.48
37.25
37.58
. 41.63
36.26
39.14
40.13
39.00
37.81
35.57
35.31
SOURCE.--"International Financial Statistics."
The figures in this table, derived from publications of the International Monetary
Fund, a r e for gold bars and you wiU note the flucmations in price and the recent trend
toward lower prices.
Prices for coins were higher. Even now, when conditions are more stable than at
any time since the end of World War II, gold sovereigns are seUing at the equivalent
of about $40 an ounce in various markets.
Another way of judging world psychology about gold is to observe the amount of new
gold production which has been going into world monetary stocks as compared with the
amount going into hoards or into industry and the a r t s . This is shown in table IU.
During periods of strict wartime controls, almost the whole of new production went
into monetary reserves and, indeed, even more as many nations required their people
to mrn their gold into government stocks. At other times there has been great variation
in the use of new gold. In 1951 only seventeen percent went into monetary reserves. In
1952 it was better, thirty-seven percent, and for 1953 it is estimated at fqrty-nine
percent.
These facts demonstrate the powerful and capricious forces which could be focused
upon any stock of gold coins or other forms of monetary gold permitted to circulate
freely within the United States. If coins were circulated, they would be subject to the
puU of demand from overseas sources, a demand which would rise and faU with every
poUtical and economic mrn of events.
294
1954 REPOiRT OF THE SECRETARY OF THE TREASURY
T A B L E IU. - - W o r l d official gold r e s e r v e s and gold production (excluding R u s s i a )
[Gold a t $20.67 per ounce t o 1933; 3^35 beginning with 1934. P a r t l y estiraated. Dollar araounts in
Year ended
Dec. 31
Year-end total
Increase during year
(2)
(1)
(3)
1913
1914
1915
$4,073
4,542
5,410
$469
668
5,872
6,481
6,816
462
609
335
8.5
10.4
5.2
1919
1920
1921
6,805
7,256
8,045
-11
451
789
1922
1923
1924
8,415
8,608
8,904
1925
1926
1927
()
^
Percent
11.5
19.1
1916
1917
1918
New proQuction
(5)
raillions]
Column (2)
as percent of
Column (5)
(6)
S433
412
443
Percent
113.8
195.9
432
403
373
106.9
151.1
89.8
-.2
6.6
10.9
354
332
330
-3.1
135.8
239.1
370
193
296
4.6
2.3
3.4
316
363
374
117.1
53.2
79.1
8,904
9,149
9,496
0
245
347
0.
2.8
3.8
373
379
380
0.
64.6
91.3
1928
1929
1930
9,966
10,189
10,696
470
223
507
4.9
2.2
5.0
382
382
401
123.0
58.4
126.4
1931
1932
1933
10,996
11,566
11,589
300
570
23
2.8
5.2
427
458
469
70.3
124.5
4.9
1934
1935
1936
21,685
22,660
24,090
10,096
975
1,430
87.1
4.5
6.3
823
883
972
1,226.7
110.4
147.1
1937
1938
1939
25,990
26,160
28,100
1,900
170
1,940
7.9
• .65
7.4
1,041
1,137
1,209
182.5
15.0
160.5
1940
1941
1942
29,870
31,100
32,170
1,770
1,230
1,070
6.3
4.1
3.4
L,266
L,126
136.5
97.2
95.0
1943
1944
1945
33,000
33,380
33,770
830
380
390
2.7
1.2
1.2
872
777
739
95.2
48.9
52.8
1946
1947
1948
34,120
34,550
34,930
350
430
380
1.0
1.3
756
767
798
46.3
56.1
47.6
1949
1950
1951
35,410
35,820
35,960
480
410
140
1.4
1.2
,4
833
858
840
57.6
47.8
16.7
1952
1953
36,280
36,706
320
426
.9
1.2
8-year
, average
9.0^
p.a.
11-year
\average
/3.O56
p.a.
7-year
average
5.356
p.a.
10-year
\ average
/l.l%
p.a.
865
865 est.
.37.0
49.2
Note—Gold reserves include international financial institutions. Source of gold reserves and production
data is Board of Governors of Federal Reserve System. Data on reserves for sorae years are subject to some
statistical uncertainties and should be interpreted as approximations only.
In this connection, it should be noted from my first table that foreign countries and
international instimtions hold about $ 12 biUion in short-term doUar balances in this
country. Under present circumstances, these balances constitute no danger to our
economy, but in a different simation, one in which gold could be drawn from the Treasury
in unlimited amounts and hoarded or exported without limit, these balances could be
troublesome.
Another fact emphasizes that underlying forces of instabiUtystiU remain in the world.
Except in the case of a few countries, international trade and payments are stiU hedged
EXHIBITS
295
around by a multimde of administrative and political controls such as quotas, excessive
tariffs, and exchange controls.
When more restrictions have been removed and convertibiUty has been restored at
least among the principal currencies, we shaU be freer to consider the remrn to gold
redemption. If we were to try to force the pace by resuming gold payments before the
foundations were more firmly laid through a continuation of recent poUcies toward
sounder budget, credit and price practices, the gold released in this country might
simply move out into hoards, and become the tool of the international speculator. Gold
payments are the seal of approval of good money, and the free world has not yet gone
far enough in the achievement of good money. It is doubtful whether the United States
should consider gold redeemability of its cur rency untfl other major countries are ready
and able to do Ukewise.
F r e e gold m a r k e t
The same factors which make it unwise for us to remrn to a gold coin standard now
also argue against the opening of a free gold market in the United States, which is
recommended in two of the bills before the committee.
Under such a free market there would be two alternatives: Either the United States
Government, with its $22 bilUon in reserves, would stay out of the market, and we
would have a gold price that flucmated up and down depending upon the demand for a
relatively smaU amount of new gold production; or the Government would stand ready
to buy and seU gold at the official price to prevent flucmations. The first alternative
would tend in the opposite direction from our ultimate goal, it would be in the direction
of more instability instead of more stabiUty. The second alternative would be, in effect,
full convertibility of the currency into gold.
P r i c e of gold
Another biU before the committee suggests that we increase the price of gold. We
believe that such a move would be against the best interests of the United States and our
foreign friends. An increase in the price, with the consequent upward revaluation of
this country's gold stock, would be contrary to the program of maintaining stabflity in
our economy. A revaluation of the gold stock could set in motion long-term inflationary
forces through increases in the volume of money, and in additions to the reserves of
the banking system, which would provide the basis for a large potential expansion of
money and credit, out of proportion to the business volume.
Furthermore, such a move would upset a relationship which has been of great importance to ourselves and to the world. The value of the doUar is firmly linked to gold.
With only one major change this has been true throughout the history of our country,
under administrations of both parties. Our people, and foreigners as weU, have come
to think of the dollar as a secure currency, steadfasfly defined in terms of a specific
amount of our basic monetary metal. This is a relationship which should not be disrupted. It would be a grievous error, particularly at a time when the world is achieving
some element of stabflity, to open up the possibiUty that this Nation was prepared to
make periodic devaluations of its currency in terms of gold.
P r o g r e s s being made
In spite of the instabiUties and dangers which remain, the world is making progress.
That is the final point I wish to make here today. The prospects for a stable free world
economy are better today than they have been for a very long time. Step by step, in a
countless number of ways, a healthier world economy is being constructed.
There has been a niarked improvement in the underlying stabiUty of the free world
economy. Many countries have improved their balance of payments, strengthened their
monetary reserves, and continued to increase their production.
AU of this is happening quietly and without fanfare. Economic collapse makes good
headlines, but the road back to good money and economic health is usuaUy less dramatic.
We are therefore likely to be unaware of how much forward progress is being made
untfl long after the event.
296
1954 REPORT OF THE SECRETARY OF THE TREASURY
Nevertheless, if we look carefuUy at the record of the last year, we are able to
find many reasons for optimism. Many steps forward, none of them world-shaking but
each of them a step in the right direction, have taken place.
Discriminations against dollar goods, have been reduced, and in one case at least,
eUminated. Recent moves have been made to reduce the complexity of arrangements
with regard to sterling, the guilder, and the Deutsche Mark. General markets forthe
sale and purchase of important commodities have been reopened. In many countries,
internal finance has been brought under control, and international payments have been
brought more nearly into balance.
Trade and payments, while stiU not so free as we would like, are freer than at any
other time since the end of the war. Foreign countries have increased their gold and
dollar balances by about $8 bilUon in the past four years. The need for United States
aid is lessening. AU of these developments bring us closer to the day when foreign
countries wiU find their economies sufficienfly stable to perniit the convertibiUty of
their currencies and the freer movement of commerce. These are goals which we are
striving for. In the words of the Commission on Foreign Economic Policy "convertible
currencies constimte an indispensable condition for the attainment of world-wide
multflateral trade and the maintenance of balanced trade in a relatively free market."
We are making progress. There is a firmer determination, not everywhere but in
many important countries, to mrn away frora the politicaUy easy thing and toward the
economicaUy necessary thing, in the conduct of national affairs. The determination to
bring budgets under control, to avoid credit inflation, to look outward as weU as inward--these are progressing at a hopeful rate. Uthese developments can be encouraged
and continued, they wiU pave the way for fiirther stabiUty and further relaxation of
controls.
Exhibit 48.--Statement by Deputy to the Secretary Burgess
before the Senate Banking and Currency Committee,
June 15, 1954, on the Export-Import Bank
On behaU of the Secretary of the Treasury, I am glad to appear before this committee in support of Senate biU 3589, which has been introduced by Senators Capehart
and Maybank jointly.
Let me first express our appreciation for the great amoimt of time and thought that
Senator Capehart and other members of the comniittee have given to this whole question
of Government lending poUcy. The trip which the chairman and some of his associates
made through South America was an evidence to the Latin American countries of the
great interest the people of this country take in their weUare. This visit and ensuing
smdies have helped our internatibnal relations and our thinking on these questions.
The passage by the Congress of this biU wiU constimte pubUc notice that the ExportImport Bank is prepared to carry forward actively and vigorously its purposes of
facflitating trade both in this hemisphere and other world areas.
One provision of the law increases the lending power ofthe Bank by $500 milUon,
to $5 biUion. While the Bank now has considerable unused lending power, something
over $1 bilUon, this addition to its potential resources enables it to plan its fumre
operations with greater confidence.
In practice, the real limitation on lending by this instimtion is not in its legal authority.
The Umitations are rather in the quaUty of the loans, to make sur^ that they are in the
interests of both the American exporter or importer and the foreign borrower. Since
the war, for example, many of the countries of Latin America have been swept by a
wave of inflation which has created great economic uncertainties, and, in some countries,
political conditions have been unstable.
The stamtes of the Bank provide that its loans must offer reasonable assurance of
repayment, and there has been no suggestion for a change in this provision. There is
EXHIBITS
297
no lasting advantage in making dubious loans. The success of the Bank will also be
measured by the extent to which its operations encourage and pave the way for private
financing.
It is our present hope that the sound fiscal and monetary policies which a number of
countries in Latin America and elsewhere are endeavoring to foUow wiU provide the
basis for additional lending by the Export-Import Bank, and by private business and
banks, to finance further economic progress and stimulate growing trade to our mumal
advantage.
Another section of the biUprovides for a working Board of Directors of five members,
who will give all their time to the work of the Bank. This is a change from the r e organization plan of a year ago, which put the Bank under a single administrator,
following a pattern of reorganization which was applied to a number of Government
agencies with the aim of simplifying their operations.
A year's experience with operations under this plan has provided evidence of the
desirability in the case of this Bank of having a smaU working Board of fuUtime
directors, while retaining administrative authority in the chief executive officer of
the Bank. This is not a return to the organization prior to last year but, in some
measure, lies between that plan and the operation under a single administrator.
The making of loans in foreign countries which will offer reasonable assurance of
repayment, and which wiU further the purpose of increasing foreign trade, involves
exacting and difficult decisions. It involves travel and intimate acquaintance with the
operations and the people financed. It is desirable, that the head of the Bank should
share this responsibility with a working Board of Directors. We also believe the
morale of the Bank wiU be higher, and service in it wiU be more attractive.
As President Eisenhower pointed out in his announcement last Thursday, the coordination of the lending policies of the Export-Import Bank and those of other Gpvernment foreign lending agencies wiU continue to be the responsibility of the National
Advisory Council, composed of Cabinet members and others who.have responsibility
in this field. Under this biU, the President of the Export-Import Bank is restored to
membership on this council.
The bill before you has had the careful consideration of executive departments and,
in behalf of the Treasury, I recommend its passage.
Exhibit 49.--Remarks by Assistant Secretary of the
Treasury Rose before the World Trade Conference,
Washington, D . C , May 17, 1954
I want td talk to you today about the significance of customs procedures to United
States world trade.
On March 30, the President, in the light of the RandaU report, defined the broad
objective of our foreign trade policy in the foUowing words: • .
•*The national interest in the field of economic policy is clear. It is to obtain in a
manner that is consistent with our national security and profitable and equitable for aU
the highest possible level of trade and the most efficient use of capital and
resources
"
BiUs have already been introduced in Congress, and others wiU foUow, covering the
various elements of the March 30 message on foreign economic policy.
There are many important aspects of it; but I want to concentrate on the one that is
closest to the field of my own departmental responsibility. That is the relationship of
customs procedures to the objective which the President has stated.
My reason for this is that, in the year or so in,which I have been dealing with the
problem, I have become convinced that business-like customs procedures are of sub-
298
1954 REPORT OF THE SECRETARY OF THE TREASURY
stantial importance to our world trade. I know that many of you are among those who do
realize it; the RandaU reporthas emphasized it; but nevertheless I would like to describe
my own reasons for feeling this way and then go on to indicate what we have done so far
about the problem as we have seen it; what good we think this has accompUshed; and
what more we can do and should do in this direction.
The three main criticisms that have come to me regarding customs procedures have
been uncertainty, undue complexity, and delay. Before I evaluate these three, I should
like to say that in the fifteen months of my close association with it, I have come to have
a high regard for the efficiency, integrity, and quality of the Customs Service and its
personnel. Nevertheless, partly because of the stamtes under which it operated, and
partly because of procedures which have been inherited from an earUer day, there has
been some validity to each one of the three criticisms that I named.
The RandaU report described their effect in these words:
•*The present complexities of customs administration are a significant deterrent.to
imports; more importantly, they create irritations. which a r e detrimental to our total
foreign relations."
The psychological effect of uncertainty or delay In a particular case may be entirely
out of proportion to its economic importance. For example, a change in classification
was made that Increased the duty on a certain commodity. I have been told that this action
was sufficient to cause a discussion In the leglslamre of the originating country, even
though It exported to us only $36,000 worth ot this commodity In^a whole year. Though
the amount Involved was trivial, the Incident was thought to have symbolic Importance to
other exporters as perhaps Indicating that a poUcy existed In this country to restrict
Imports by reclassification of commodities.
I have had many an Importer complain to me that whfle his goods were physicaUy
processed through customs with sufficient speed, the delay In figuring his final bill
for duties was a real handicap to selling them.
To indicate the size of this problem of delay which we faced a year ago and what has
been done about It since then, let me give you a few facts about the Customs workload and
backlog.
The best measure of the Customs workload Is the number of shipments of goods
entering the country and the number of people and vehicles that come In each year. The
figures for the first fiiU postwar fiscal year, June 30, 1946 - 1947 compare as foUows
with those of fiscal 1953:
The number of shipments that entered this country rose from 541,000 to 981,000, or
81 percent; the number of c a r r i e r s , mcluding ships, automobiles, trains, and airplanes,
rose from 18.1 mllUon to 30.9 mfllion, or 70 percent; and the number of people crossing
the borders Increased from 78.9 mlUlontoll7.9,or 49 percent. These figures cannot be
averaged out In terms ofa single measurement of workload; but in the various categories
the Increase ranged from 50 to 100 percent.
In spite of various Important steps that were taken to Increase productivity, the
Customs Service had not been able to keep up with this Increased workload during this
period. It had, ofcourse, to process currentiy aU of the people and the baggage they bring
with them, because you cannot let people stack up on the docks and piers, or In automobfles or trains at the borders. The customs procedures had also succeeded, by and
large, in currentiy processing the freight shipments that had come In, so that the physical
merchandise Itself had entered the country without any substantial delay. However, Customs had faUen substantiaUy behind in the work of fInaUy determining how much duty was
owing. The backlog of unUquldated or unsetfled Import entries had grown from about
277,000 In 1947, or the equivalent of about one-half a year's work, to about 800,000 or
almost a whole year's work at the Increased rate of Uquidation which had then been
attained. And, as I pointed out, although the Importer may have physicaUy received his
merchandise, an unUquldated entry Is stfll an Important matter to him because, untfl
EXHIBITS
299
final liquidation, he does not know the exact amount of duty, and this may make It difficult for him to determine the right seUlng price for the goods.
To sum up the problem, we found a current workload that had gone up 50 to 100 percent, and a backlog ofunUquldated entries which had Increased almost 3 times and represented the equivalent of a whole year's work at the prevailing rate of production.
The backlog of unliquidated entries continued to rise to Its aU-tlme peak of 886,000 on
September 30 of last year. But then we mrned the corner. The measures that had been
taken began to make themselves felt. In six months we have reduced this backlog by more
than one-flfth. This reduction Is accelerating; andby the end of 1954 we expect the backlog to be down toa60-to^90-daybasls.So while the intermingled problems of complexity
and delay In customs procedure have been by no means fuUy solved as yet, great strides
have been taken In that direction.
Now, how has this been done? Not by adding more people or spending more money.
Customs wfll spend a Uttie less money, and employ somewhat fewer people, this year
than last year, and next year than this year.
The solution was found In two approaches: First, In the areas where the stamtes let us
do so, to revise procedures and Improve management In search of more efficiency; and,
second, to ask for legislative changes where the stamtes required Inefficient or wasteful
procedures. A large part of the legislative changes we recommended was enacted In the
Customs SimpUflcation Actof 1953. This act, which was the culmination of several years'
smdy, cut down materiaUy on the amount of unproductive work that Customs was required
to do by stamte, and eUminated many of the cumbersome and outmoded procedures that
had accuraulated In the enactraents of raore than a hundred years.
One of the raost helpful steps was the repeal of obsolete accounting procedures.
Previously, the Custoras had been required to conduct a 100 percent audit of every entry,
whether the goods were dutiable or free. The repeal of this provision aUowed us to begin
the instalU-tlon of a raodern accounting and Internal audit systera. The effect of this one
change has been to expedite the final deterraination of duties payable on Individual Iraportations and to free a substantial nuniber of experienced eraployees for raore productive
work. These people thus released haye contributed greatiy to the reduction of backlog
which I have described.
We are therefore exercising such Uralted adrainistrative discretion as we had before
the Customs SimpUflcation Act was passed, and also the additional discretion which
that act gave to us. What we are doing Is siraply to apply raodern raanageraent techniques
and raethods which are coraraon toraostprogressive business concerns. Means of raeasuring workload and raanpower requireraents have been developed and Instlmted; certain
operating practices have been raodernized, streamlined, and slrapllfled; and In sorae
Instances, the basic organlzatlcsial strucmre In the fleld offices has been reset.
Custoras has 44 ports of entry Inthis country; now for the first time we are In a position to know with some precisIcm the rates of production of each. In each departraent of
Its activity. As a result, we find that sorae offices have alraost corapletely worked off
their local backlogs. Others, while they now seera to be staffed appropriately for norraal
current workload volurae, stfll have a substantial backlog. In such cases the backlogs are
being raoved to the offices with Uttie or no backlogs of their own but with sorae Indicated
capacity beyond their current load. In short, Custoras Is Increasingly adopting the
flexible, Informed raanageraent techniques that one expects of a modern well-managed
American business.
I have given you a very general stateraent of the way In which procedures have been
Iraproved; and I should Uke to add just one concrete Illustration of what that has meant
to the travelling and Importing pubUc.
Last year we made a change. In the method of examining passengers* baggage. The
Instructions previously In effect called for examining every piece of every passenger's
luggage. .To take New York as an example, the cost of this exaraination at that port was
running about $1raflliona year. The total araount of Iraport duty collected on passengers'
baggage In New York was also about $1 raillion a year. Most of this, of course, was on
articles voluntarfly declared and only a sraaU fraction carae frora undeclared articles
300
1954 REPORT OF THE SECRETARY OF THE TREASURY
picked up by the examination procedures. This seemed like an obvious place not only to
save some money, but also to expedite. Care had to be taken, of course, not to do anything that would let down the bars to smuggling.
A statistical and trial survey showed that satisfactory and effective results could be
obtained by examining at least one arbltrarfly selected piece of the baggage of every
passenger; examining aU the baggage ofsomepassengers; and of course, more Intensive
examination of aU of a passenger's luggage and, if necessary, of his person, whenever
suspicious circurastances exist.
Because passenger liners arrive at New York at irregular intervals. Customs cannot
afford to maintain a permanent staff of employees for baggage examinations only. The
men normaUy are on duty at the freight piers processmg commercial shipments, and
are temporarily assigned to passengerplers whenever required. Thus, it is as important
to commercial Importers as it is to the travelers to shorten the time it takes to process
passengers,, and this new procedure has accomplished it. It often used to require 4 to 5
hours to clear the pier after the Queen Elizabeth had landed. Now the last passenger is
through with his customs examination within 2-1/2 to 3 hours. The new procedure thus
has greatiy speeded up the process, and we are convinced that it has not decreased the
practical protection against smuggling*
This, then. Is what we have been doing to reduce the Interlocking problem of complexity and delay In customs procedures.
We are equaUy concerned with the problem of reducing an uncertainty in various phases
of Customs work, and achieving a better understanding at home and abroad of the principles that wiU be applied in a given simation. I may iUustrate the importance of this
objective by a single example:
First, as I Indicated above, customs procedures properly provide that an American
manufacmrer can chaUenge the classification ofan Import, and that if, after proper notice
and consideration. Customs decides the ruling should be changed, it can revise that
classification. There have been fifty or so instances of this in the last half-dozen years
which have resulted in an Increase of duty. Most of these changes did not involve
important volumes of Imports; but they had a psychological effect beyond their economic
significance. In sorae cases foreign exporters have interpreted these actions as part of
a pattern of finding one device or another to discourage imports as they become important. This state of mind, whether justified or not, and of course it is not, can have a
. very damaging effect by deterring others from making the expendimres of time and
money required to enter the American market.
There are several things that we can do about this. The first is to make known more
widely the fact that over the same period there have been at least as many reclassifications of commodities that have reduced the duties on them. Thus we can to some extent
rebut the mistaken notion that reclassification is used as a tool to discourage imports.
Then in view of the fact that foreign and domestic businesses come to depend on a
classification once decided, we In Customs can In the fiimre more rigidly apply the principal changes which wlU be made, either up or down, only when the established classification Is shown to be clearly wrong. And finaUy, the recommendations of the Randall
report and of the President's message for simplifying commodity definitions and rate
strucmres wiU be of substantial help.
Another large area of uncertainty and delay In which pending legislation would give us
substantial help Is the field of valuation of Iraports. The present provisions, with the
judicial interpretations that have grown up around them, reach results which are in many
cases commerciaUy unrealistic, and for that reason produce simations which are unpredictable by any but the most experienced Importers. Furthermore, by requiring in many
cases an investigation of the value of merchandise in the home market of the exporting
country, they require an amount of foreign inquiry which substantiaUy delays the
appraising of merchandise In many cases. These defects In present procedures would be
largely cured by the Jenkins blU, which passed the House at the last session and is now
EXHIBITS
301
pending before the Senate Finance Committee; and the President, in his foreign trade
message on March 30, recommended its enactment.
The matters which I have discussed are In one sense matters of detafl, but from a
considerable experience with American business, both as a lawyer and as a corporate
director, I know how important details of this kind can be to individual business, and
therefore to the level of United States foreign trade.
In the long run, the level of our exports depends upon the level of our imports; and
our imports, in mrn, depend on a host of individual decisions by foreign business men
that it is worth a considerable expendimre of their time and money to enter the
American market. Those decisions wlU be largely influenced by whether our customs
procedures are siraple and reliable. The simplicity and reUabiUty of these procedures
Is therefore a vital foundation for the high level of imports on which depends the
President's objective of a high level of foreign trade for the United States.
Exhibit 50.--Statement by Assistant Secretary of the
Treasury Rose before the House Ways and Means Committee, June 22, 1954, on customs simplification
1 very much appreciate the opportunity to appear before this committee in support of
H. R. 9476, introduced by Mr. Byrnes, a member of the committee.
Just a littie more than a year ago I testified before this committee on H. R. 5106, a
substantial part of which was subsequentiy enacted as the Customs Simplification Act
of 1953. I want to express to the committee both the gratimde of the Treasury Department and my personal appreciation for the important part you played in bringing about
the enactment of the Customs Simplification Act of 1953. It has been the most important
single development over the course of the last year and a half in bringing about a
reversal of a trend of many years of ever-increasing backlog in Customs work.
The number of unliquidated or unsettied entries amounted to about 277,000 at the
end of 1947. This backlog had increased to about 800,000 by the end of 1952. As of
September 30 of last year the aU-timepeakof 886,000 unUquldated entries was reached.
This meant that as of that date last year it would have taken the Bureau of Customs more
than a year to complete then outstanding work if no additional imports had been made.
The Custoras Siraplification Act of 1953 was approved on August 8, 1953. Regulations
putting the act into effect were pubUshed on September 9, 1953. Since that time there
has been a continuing and, even more important, an accelerating rate of decrease in the
backlog of unliquidated entries. As of May 31 of this year the backlog had been reduced
to 699,000 and by the end of 1954 we expect it to be down to a figure in the range of
450,000. This wiU bring liquidations generaUy within 90 days of the date of entry,
except for those where delays are occasioned by need for foreign investigations or by
importers who file appeals for reappraisement or are untimely in furnishing necessary
documents.
But this measure of success does not mean that we consider that most of our management improvement work has been completed. Both the Bureau of Customs and the
Treasury Department fuUy support the President's recommendation that continuing
efforts be made to modernize and Improve the operating efficiency of the Customs
Service with a view to making a periodic report to the Congress which would include
recommendations for such legislative changes as are desirable to further simplify
customs procedures. This biU, the Customs Simplification Act of 1954, we hope wiU
be considered as the first proposal in that yearly schedule of suggestions for legislative action.
The Customs Simplification Act of 1953, as enacted, dealt primarily with general
administrative problems involved in the operation of the Customs Service. A second
large area of difficulty which has led to both confusion and delay arises out of the stamtory requirements for customs valuation. A substantial measure of improvement would
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1954 REPORT OF THE SECRETARY OF THE TREASURY
be accompUshed by the blU Introduced by Representative Jenkins, H.R. 6584, which
was reported by your committee and passed by the House of Representatives at the last
session of Congress and Is now pending in the Senate Finance Coramittee. A third category of problems, however, relating to classification, was untouched by the Customs
Simplification Act of 1953 and by H.R. 6584. One of the principal purposes of H.R. 9476,
the bill you now have for consideration, is to lessen these classification difficulties.
Problems of classification arise because every imported article must be found either
to be dutiable or free of duty under one of the classification paragraphs of the Tariff
Act of 1930 or another Customs law. It has long been recognized that a fundamental
revision of the tariff schedules of the .1930 act is urgentiy needed. The management
survey of the Bureau of Customs authorized by the 80th Congress and made In 1948
stated that the need for a complete review Is indicated by the fact that 18 years had
then passed since the last major changes in the basic law. Again this year the President's
Commission on Foreign Economic Policy stated as one of its basic recommendations,
to which there was no dissent, that a revision of the tariff classifications should be
undertaken immediately.
The dutiable list of the Tariff Actof 1930 originally contained over 700 different tariff
classification paragraphs, many of which contain a number of classifications. As a
result of amendment, modification through trade agreement concessions, and administrative and judicial interpretation, it is now estimated that the total number has increased
to some 8,000 distinct duty classifications. The confusion for the importer, the administrative problems presented to Government officers, and the possibilities for prolonged
litigation are aU apparent merely from a citation of these numerical possibflities.
These complications and confusions are made stiU worse by a number of additional
factors. First, the Tariff Act of 1930 was enacted in the context of the commodities
involved in international trade at that time. Since then many new products have been
developed, particularly in the field of plastics and synthetics and electronics which are
not adequately described in the Tariff Act. The determination of the proper classification in terms of 1930 descriptions or simlUmde to articles enumerated in the Tariff
Act Involves a continuing controversy and resultant uncertainty untfl a final decision for
each disputed product has been rendered. Secondly, considerable difficulty in determining the proper classification among the 8,000 possibilities is added by the fact that the
classification descriptions differ widely in form. Some are dependent upon the value of
the whole article, some on the component of chief value, some on size, some on principal use, and others on stiU different bases. Third, application ofthe provisions ofthe
Tariff Act of 1930 have resulted in some inequities and absurdities which under court
decisions may only be corrected by a change In the classification description. Probably,
the description in the Tariff Act which is most widely quoted in this connection is one in
paragraph 1529 which requires that articles in any part of lace, fringe, or braid must
be classified at the rate of duty applicable to lace, fringe, or braid, rather than the
rate which the article would normaUy bear. Thus, men's dress suits with a piece of
braid down the sides of the trousers pay a different duty than the same suits without
such braid, and some rugs with fringed ends pay a different rate of duty than carpets
not so fringed.
Title I of H.R. 9476 is directed to bring about a review of these difficulties and
elimination of them through a modernization of the tariff strucmre wherever that is
possible without a change in the amounts of duty, group by group, which would otherwise have been coUected and without injury to domestic industry. The procedure proposed is that the Tariff Commission within two years of the enactment of this biU
would complete a review of all tariff schedules and propose a revision and consolidation
which would be logical in arrangement and terminology and adapted to changes which
have occurred since 1930, which would eliminate anomalies in the existing classification
of articles, and which would simplify to the extent practicable the determination and
application of tariff classifications. It is provided that this revision should result,
subject to certain required tolerances, in the coUection of substantiaUy the same amount
of duties as would have been coUected under the old rates. AU tariff rates are required
EXHIBITS
303
to be stated In a specified series of multiples In order to avoid absurd fractional rates
and minute differences between rates.
The Tariff Commission's proposed revision of rates would be published In the Federal
Register and public hearings would be thereafter held to permit aU Interested parties
to present any oral or written testimony.
After the conclusion of these hearings the Tariff Coraraission would review and
revise Its proposals and thereafter recoraraend thera to the President. The President
would determine whether the proposals of the Tariff Comraission would result In a
slrapUflcatlon of the tariff schedules and whether they are otherwise consistent with the
purposes of the act and the national Interest. If so, he would then negotiate the c o r r e sponding substlmtions of revised trade agreeraents schedules with those countries with
which the United States has trade agreements. Fbr the purposes ofthis negotiation the
President would be able to revert to preexisting rates if he found It necessary to do so
with respect to any new classification or to revert to preexisting rates as to one or
more articles in any new consolidated classification and ask the Tariff Commission to
calculate a modified rate for the remainmg Items In the new classification.
These negotiations would be completed within one year. The President Is authorized
to proclaim the proposed revision after Its submission to the Congress provided that
within 60 days of continuous session neither House of Congress disapproved the plan In
its entirety by a majority of Its authorized raerabership.
We have two suggestions for Improvement of this bfll. We believe that the language
beginning on line 20 of page 5 of the biU which precludes any rate change which would
materiaUy Increase or reduce Imports of any particular article might be construed to
be unduly restrictive on the Tariff Commission. It Is not the purpose of this bfll either
to Increase or decrease Imports by any change In rates. Nevertheless, In the course of
any consolidation some rates wfll necessarfly be changed as an incident to the averaging
process and thus have sorae incidental effect on the level of imports of particular coramodities. To prevent this might diminish the possibility that a meaningful revision of
the tariff schedules wlU result.
We also believe that the reference back to Cbngress In accordance with procedure
established under theReorganlzatlonActlsnotnecessaryand may cause some problems.
The standards of this blU such as (1) the stateraent of the purposes to be accorapllshed;
(2) the prohibition agamst any change In the araount of revenue to be collected; and (3)
the prohibition against any change which would cause or threaten serious Injury to
domestic Industry are aU so expUclt that the reference back to the Congress Is not
needed. These standards more than meet the tests of the Supreme Court of the United
States as to the adequacy of standards for delegation by the Congress. The Attorney
General of the United States has stated that he considers that this titie. If enacted,
without a reference back to Congress would be a constimtional delegation of authority.
The objections to the provision are that such a provision Is contrary to the recoraraendation of the Commission on Fbrelgn Economic PoUcy upon which the President
based his proposals to the Congress.
In addition, such a provision Is likely to create greater difficulties In negotiation of
any changes in rates with trade agreeraent countries. Other governraents are likely to
argue that they should not be asked to raake concessions If the agreeraent of the United
States is conditioned upon a second look. I do not want to exaggerate this difficulty, but
I do beUeve It maf Increase negotiating problems.
I realize that my outline of the procedure which would be foUowed Indicates the complexities and difficulties Involved. However, the job needs to be done If only to cure the
obsolescence of the present provisions. It Is generaUy agreed that the drafting of new
language to fit tariff descriptions to the realities of International trade Is a job for
experienced technicians. We beUeve that this bfll offers a reasonable oppormnity to
Improve the present chaotic simation and, at the very least, wlU result in a thoroughgoing analysis by a competent body which wlU give a better guide to any further action
needed.
Titie II of the blU Is Intended to resolve one tariff classification corapUcatlon pending
the overaU revision to be undertaken under Title I. At the present tirae paragraph 1559
304
1954 REPORT OF THE SECRETARY OF THE TREASURY
of the Tariff Act provides conflicting and confusing standards for classification of
Imported articles which are not specificaUy enumerated In the Tariff Act. Each nonenumerated article is to be classified by simlUmde to any enumerated article to which
it is simflar either in material, quality, texmre, or use. Alternatively, the so-caUed
mixed materials clause requires nonenumerated articles manufacmred of two or more
materials to be classified at the highest rate at which the article would be subject If
whoUy composed of its component material of chief value. The suggested legislation
would clarify this provision by repealing the mixed materials clause and specifying that
nonenumerated articles should be classified according to similarity in use. Resort
would be had to similarity In material only If the imported article is equaUy similar In
use to two or more enumerated articles.
The remaining tities of H.R. 9476 are designed to eliminate obsolete provisions,
correct procedures, and eliminate Inequities Involved in the adrainistrative functions of
the Bureau of Customs. These are matters which have been developed since your
committee's consideration of the Customs SimpUflcation Act of 1953.
The^detalls of these provisions are explained in a section-by-section analysis ofthe
bfll which has been prepared and which I would like to Incorporate as a part of my
statement. For the purposes of my oral statement, and subject of course to any questions
any member of the committee may have, I shaU refer only briefly to the remaining
tities.
Title III proposes certain minimum changes which we have found necessary in the
antidumping law. These changes reflect only a smaU part of a considerable effort which
has been devoted by the Department in attempting to make its administration of the
antidumping law both speedier and more equitable. In this connection I would like to caU
your attention to proposed amendments to the regulations issued under the antidumping
laws which were published in the Federal Register today, and which I would Uke to
insert in the record.
We have found that determinations of injury to domestic Industry are corapletely
outside the ordinary scope of departmental activities. Conseqiientiy.the Treasury would
have to build up a special staff to handle these determinations speedily and effectively.
On the other hand, comparable determinations are a part of the every-day work of the
Tariff Commission and we believe It would lead to over-aU efflclenty in Governraent
operations to transfer this function to the Tariff Coraraission.
The other major change proposed Is to Umit the unfair retroactivity of duraping
duties. At the present time the law requires that a dumping duty, be levied on *'aU
Imported merchandise, of a class or kind as to which the Secretary of the Treasury has
made public a [dumping] finding *. * * as to which the appraiser * * * has made no
appraisement report to the coUector before such finding has been made * * *,** Sometimes appraisement Is not completed, frequentiy at the request of the Importer, for
considerable periods of time because of difficulties entirely unrelated to any question
of dumping. If we are required to levy a duty on every unappraised entry, even where
there Is an element of such unfair retroactivity. It wfll Increase the difficulties of
administering the law. We are therefore proposing that the dumping duty should not be
applied to Imports made more than 60 days before the question of duraping has been
presented to the Treasury Department.
Title IV would make uniform the application of tariff duties to Importations frora our
insular possessions other than Puerto Rico which Is part of custoras territory of the
United States. Difficulties arise because under existing law Qistoms enters free of
duty manufacmres from a number ofour insular possessions. These Insular possessions
either have no duty or a very low duty. This has meant that imder the present law the
Bureau of Customs has had to admit free of duty certain watch raoveraents frora Guara
where the only manufacmre In Guam was fitting thera in cases and even though the
watch movements had not paid any duty when Imported Into Guara. This appears to be a
loophole not mtended by the Congress. Under Section 301, as araended, Imports from
the insular possessions would be free of duty only If foreign materials do not make up
more than 50 percent of their total value.
EXHIBITS
305
Title V of H.R. 9476 as introduced was intended by consolidation to eliminate the
confusion resulting from the overlapping language of two stamtes, relating to the import
protection to which trade-marks and trade names are entitled. In doing so we also
proposed that Congress confirm an interpretation formaUy Incorporated in the "Customs
Regulations" last December, that trade-mark protection Is not avaflable to prohibit the
importation of a product legitimately marked by an affiliate of the trade-mark owner.
Since introduction of H.R. 9476 we have learned that this interpretation had not been
widely known and that its continued inclusion in this biU would lead to prolonged testimony on the merits ofthe provision. Since the time remaining in this session of Congress
would not permit any extended consideration, we have suggested that this provision be
reserved for later consideration.
The customs law is an accumulation of provisions which have been enacted from the
time of the first Congress. Many of these old provisions are obviously obsolete and
inappUcable to the present organization of the Customs Service. As we find it. possible
to do so, we hope to recommend to the Cpngress the removal of these barnacles, and
Title VI is solely directed to that purpose.
Title v n is a group of administrative provisions, particularly directed at permitting
more efficient enforcement activity by the Bureau of Customs.
I respectfuUy urge your committee to give prompt and favorable consideration to
these proposals.
Exhibit 51.--Remarks by Assistant Secretary of the
Treasury Overby before the Milwaukee Association of
Commerce and Milwaukee World Trade Club, Milwaukee,
Wis., May 17, 1954
International finance
and the outlook for foreign
trade
Tonight I should like to talk about International finance and the outlook for foreign
trade. Since even interpretation of the present Is sometiraes uncertain, it Is usuaUy
hazardous to talk about the fumre, particularly in this often unhappy world, marked
by continuing political tensions, la rge defense expendimres, and even mflitary hostflities.
Despite the hazard, 1 should like to examine with you our foreign economic policy
objectives and the progress we have made toward them. U I cannot be too precise about
the fiimre, perhaps I can nevertheless be cautiously optimistic.
In his foreign economic policy message to the Congress on March 30 the President
said:
"The national Interest In the fleld of foreign economic policy is clear. It Is to obtain,
in a manner that is consistent with our national security and profltable and equitable
for aU, the highest possible level of trade and the most efficient use of capital and
resources. That this would also strengthen our miUtary aUies adds urgency. Their
strength is of critical importance to the security of our country.
"Great mumal advantages to^buyer and seUer, to producer and consuraer, to investor
and to the community where investment is made, accrue from high levels of trade
and investment. They accrue no less in trade from nation to nation than in trade from
community to community within a single country. The internal strength of the American
economy has evolved from such a system of mumal advantage."
Our foreign economic policy objectives are the counterpart of and are closely related
to our domestic economic policy objectives as weU as our national security aims. Our
task in the free world is so to organize and conduct ourselves that we achieve maximum
political, military, and economic strength and dynamic progress under a combination
of economic and political freedom. We beUeve that adequate defenses against the forces
of the international Communist conspiracy can be maintained here and in the free world
306
1954 REPORT OF THE SECRETARY OF THE TREASURY
only if they are supported by sound and competitive economies marked by dynamic
growth. Essential to such economic strength and growth are good money, an expanding
flow of mumaUy beneficial International trade, and increased private investment—in
short, a world of currency convertibiUty and nondiscriminatory multilateral trade. As
the President said m his foreign economic policy message to the Congress on March 30,
our program consists of four interrelated major parts:
"Aid--which we wish to curtail;
Investment--which we wish to encourage;
ConvertibiUty--which we wish to facflitate; and
Trade--which we wish to expand."
With our political, military, and economic strength, we in the United States face an
awesome responsibflity, not only in providmg leadership In the free world but In
malntauiing a strong and dynaraic economy here at home. We are obUged to have mflitary
strength of sufficient power not only for our own defense but also to help promote peace
In the world. But in view of the namre of the Soviet threat, we face not a brief period
of sudden and sporadic defense expendimre as in the past, but a long period of maintaining high levels of defense. Since our defense expendimres are no longer a passing
or temporary phenomenon, it Is essential that our mflitary posmre over a long period
of time be supported by an economy which preserves its economid and financial strength.
And we raust encourage Initiative and fiirther dynamic growth at the same time.
In our domestic economic policy this has meant the removal of controls and r e s t r i c tions which have hampered Initiative and interfered with the freer working ofthe market
raechanisra. It has meant trying to get better modern defense for the dollars we spend.
It has meant the elimination or postponement of less essential Government expendimres
and the reduction of the Government deficit. It has meant a beginning in reducing and
revising overburdens ome taxation which Impairs Initiative. And it has meant the freedom
and Independence of the Federal I^serve System to pursue Its monetary policies for the
general weUare.
Thus, our policies at home are directed toward econoraic stabiUty and strength
and growth, toward greater freedom from Government Interference and control, greater
freedom for the Individual to pursue his business, spend his own money, and live his
own life. Our policies aim at encouraging initiative and freedom and maintaining economic
progress and a high level of economic activity at relatively stable prices, with neither
inflation nor deflation. Such an economy we beUeve leads to high levels of demand and
world trade on a sound and mumaUy beneficial basis and makes perhaps our greatest
contribution to our friends abroad as weU as to ourselves. Moreover, maintaining the
strength and value of our United States dollar through sound Internal finance and increased productivity Is Important not only to confidence and the encouragement of
savings here at home. It Is also a vital part of our contribution to international monetary
stability and to the value of our convertible dollar as a stable point of reference, for
the United States dollar has become the touchstone for aU the currencies of the free
world.
As we look abroad today, we find good reason for Increased hopefiilness for the freer
and healthier and more unified trading and financial world we want. Strange as it may
seera in the face of continumg political tensions and large defense expendimres, the free
world Is In rauch Iraproved and very good shape in purely economic terras: In levels of
production, of trade, and of real Income.
Balance of payraents deficits of raost foreign countries have been eUminated or
reduced. Production and trade have been maintained at high levels. In most countries
budgets have been raore nearly balanced and credit measures have been effective m
keeping the growth of money supply moderate. Prices have been relatively stable.
In measuring the economic and financial progress that has been made and what we
might expect In the way of Improved opportunities for Araerican exports, there Is one
statistic which does not teU us everything but which has Important significance. That
EXHIBITS
307
is the gold and dollar assets held by foreign countries. As a result of Iraproved conditions abroad and our continuing aid prograras and large overseas expendimres, gold
and doUar assets of foreign countries have Increased In the last four years, since just
after the raajor devaluations of 1949, by more than $8 bflUon, a gain of more than 50
percent; and the growth seems to be continuing. It is true that some of these gains In
reserves have taken place In countries mamtaining the very restrictions on imports
of dollar goods which we seek to eliminate. And, we know how unsound Internal monetary
poUcles can dissipate reserves. But we are justified In being greatiy encouraged by
this iraproveraent, a good part of which Is firraly based on sound monetary and fiscal
practices and Iraproved corapetitive abflity.
As our friends abroad fiirther strengthen their econoraies and Increase their gold
and dollar reserves, we can see not only the end of our eraergency prograras of econoraic
aid but we can also hope for some fiirther relaxation or eUmination of the artificial and
discriminatory barriers to the sale of American products abroad on a corapetitive
basis. In fact, part of the test of the strength ofour friends' economies wlU come In
the fiirther reraoval of these discrirainatory restrictions and greater exposure to the
forces of corapetition from abroad.
Very real progress has already been made In the freeing of economies abroad and In
the relaxation or reraoval of trade and exchange controls which have harapered the sale
of our products In foreign countries. Notable gains in this direction have been made
In such countries as the United Kingdora, the Federal RepubUc of Gerraany, the Netherlands, and Belgiura.
The United Kingdora, for example, has been making steady progress in the past year
or so toward restoration of a freer economy by removing controls over the internal
economy and by taking steps to increase the freedom of United Kingdom residents to
purchase abroad. InternaUy, food rationing has been steadfly eased and wiU end corapletely in July; there are now few direct controls over raw materials; private building
has been encouraged and restrictions substantiaUy eased; price controls have vlrmaUy
ended. Iraport restrictions have been substantiaUy relaxed and Government trading In
raw materials has alraost ended. The range of raw raaterials, commodities, and manufacmred goods which may be freely Iraported frora the dollar area has been steadfly
broadened. As of Aprfl 1, 1954, the United Kingdom has decontroUed Imports of grains,
sorae oils and oilseeds, condensed and dried milk, and dried and other fruits. A fiimres
niarket In grain again becarae operative, mainly for corn, barley, and other coarse
grains. The Liverpool Cotton Exchange Is due to reopen m May. Commodity markets
have been reopened In Britain also for rubber, coffee, tin, cocoa, lead, zinc, aluminum,
copper, and wool. Traders In these markets are free to Iraport these coramodities from
any part of the world.
The steps which have been taken by many Iraportant countries in freeing and strengthening their econoraies and In relaxing their trade and exchange restrictions should also
encourage the flow of United States private investment abroad. This is an integral part
of the President's program. To this end the administration tax blU already passed by
the House ofRepresentatlves contains provisions to encourage private investment abroad.
Efforts are also being intensified to work out with other nations of the free world
mumaUy acceptable rules for the fair treatraent of foreign investraent. In addition, the
President has suggested to the Congress the desirabflity of broadening the existing
authority to provide guarantees against loss on new investraents abroad, where these
losses are caused by war, revolution, or Insurrection. At present, these guarantees
raay be provided only against the risks of expropriation and Inconvertibility of currencies.
BaslcaUy, of course. If any extensively increased volume of United States private
capital Is to flow abroad, the foreign countries themselves must create a more receptive
and favorable climate. Private capital cannot be driven to other countries, no matter
how friendly. It raust be attracted by the nation desiring the capital. United States
private capital wfll be Invested where conditions of political and economic stabflity and
fair and equitable treatraent provide It an opportunity for reasonable profit and assurance
of remitting earnings.
3 08
1954 REPORT OF THE SECRETARY OF THE TREASURY
In sorae foreign countries, the opportunities for Araerican private capital are limited
because of the lack ofbaslc faciUties, such as roads, port facflities. Irrigation, and other
fimdamental services. For those developraent projects which raay not be suitable for
or attractive to private capital the Internationai Bank for Reconstruction and Developraent, to which the United States has raade Iraportant capital contributions. Is the
priraary Instruraent through which the free world can cooperate In pubUc financing
of such econoraic developraent. In addition, the Export-Iraport Bank wlU consider on
their raerits applications for fmancing of developraent projects which are not being
raade by the Internationai Bank, and which are m the special Interest ofthe United States,
are economicaUy sound, are within the capacity of the prospective borrower to repay
and within the prudent loaning capacity of the Bank.
The purposes of the Export-Iraport Bank are to aid In financing and to faciUtate the
foreign trade of the United States. Under the law it Is to suppleraent and encourage and
not corapete with private capital and Its loans should generaUy be for specific purposes
and offer reasonable assurance of payment. In carrying out Its fundamental purposes
the Export-Iraport Bank Is regularly receiving, considering, and approving exporter
credits at the Instance of United States suppliers which are within the terras of the act
and which the Bank considers sound.
The fiimre of our foreign trade wlU also be conditioned In an Iraportant degree by
our WiUingness to iraport goods and services and thus make It possible for foreign
countries to purchase our products. As our prograra of foreign econoraic aid Is reduced,
other countries wlU have to rely raore largely on their sales to us to earn dollars for
purchases here. In order to facflitate a freer raoveraent of coraraerce across national
boundaries within the free world, the President has recommended renewal of the Trade
Agreeraents Act, authority for selective revision of our tariffs, the slrapUflcatlon of
our customs administration and procedures, and the modification of our "Buy American"
legislation.
HnaUy, and raost basic of the President's proposals, frora the point of view of our
exports and of our broad objectives, are those which relate to the convertibiUty of
currencies. One of the raost Important devices which foreign countries use to control
their Iraports is to regulate the expendimre of their foreign exchange resources. To
the degree that these regulations are relaxed, and each foreign currency freely exchanged Tor others, the eas ler It should be for us to seU our products in foreign raarkets.
It WiU also benefit those who buy from us, since It wfll enable foreign purchasers to
choose the supply avaflable at the lowest price. Irrespective of the source. This cannot
now be done, with Inconvertible currencies, because the avaflabiUty of means of payment
limits the range of choices by foreign buyers.
In his raessage to the Congress on foreign econoraic policy, the President said, "The
Coraraission rlghtiy regards positive progress toward convertibflity as an Indispensable
condition for a freer and healthier international trade." The President approved the
Commission's recoraraendations for cooperation In strengthening the gold and dollar
reserves of countries which have prepared themselves for convertibiUty by sound
internal and external policies and said the United States wfll support the use of the
resources of the Internationai Monetary Fund as a bulwark to strengthen the currencies
of countries which undertake convertibflity.
The Initiative and responsibflity for introducing currency convertibflity must rest
with the countries concerned, Formnately such initiative Is being taken. The United
Kingdora and other raerabers of the Coraraonwealth have met twice to consider plans
for the convertibflity of sterling and they and other Important nations of Europe, such
as the Federal Republic of Gerraany, have discussed their alms with us.
Throughout the postwar years the reestabUshraent of conditions of convertibility and
nondiscrirainatory raultilateral trade has been a raajor aira of the United States Government. As we look about us In the world today, we find that trade and payraents, whfle
stlU not as free as we would like, are freer than at any time since the end of the war.
Foreign countries have strengthened their internal financial stabflity, their corapetitive
abiUty, and their gold and dollar reserves. Currencies are sounder. And perhaps raost
EXHIBITS
309
Iraportant of aU, raore governraent leaders and people are abandoning econoraic restrlctlonlsra and controls and artificial values as instruraents of policy. More and raore they
have mrned to greater econoraic freedora and the value of stronger, raore corapetitive
econoraies.
As we enter a period when convertibiUty becoraes closer, those of us concerned with
trade and finance must recognize that the word "convertibflity" Is only a shorthand
phrase which Is Intended to depict a certain kind of world. ConvertibiUty means international trade and corapetition at reaUstlc exchange rates with a relatively freely
fimctlonlng and internationaUy corapetitive price raechanisra. In Its fuUest sense It
raeans the greatest possible absence of hampering restrictions, buying in the cheapest
raarket, lowering costs and prices, and spreading technical Improvements and new
inventions to aU parts of the trading world. It means sound and efficient production and
trade at a high level and the best aUocation of resources for the benefit of aU of us.
Convertibility in its fuUest sense means a world in which foreign countries have
succeeded In balancing their international.accounts, and expect to keep them in balance.
It raeans a world in which a foreign country's goods can corapete raore freely with
Araerican goods In Its own domestic market, in the United States market, and in third
markets throughout the world. It also means a world in which American goods can
corapete In raarkets in which they have been previously restricted or even disbarred.
The Araerican producer and trader has no fear of fair and free competition In a
stronger world. With our enterprise and our productivity, helped by our freer economy
here and such things as the tax revision bfll and with renewed eraphasis on our proven
raarketing ablUty, Araericans wlU win a fair share of any market which Is open hi the
raanner which convertibiUty ImpUes.
With raore convertible currencies In the free world and with further relaxation of
restrictions, we raay expect that raarkets now closed wfll be opened to Araerican goods
and the total volurae of trade and Investraent wfll be stlraulated. With higher levels of
trade and Investraent based on sound and efficient production and Increased econornic
freedora we shaU achieve, together with our aUles,the freer, the raore unified and raore
dynaraic world of progress which Is essential to our greater and sustained political,
mlUtary, and econoraic strength and freedora.
Exhibit 52.--Remarks by Assistant Secretary of the
Treasury Overby before the United States Council of the
International Chamber of Commerce, New York City,
December 16, 1953
International Monetary Stability, Convertibility,
nomic Defense
and E c o -
My assignment in this panel Is to discuss "Internationai monetary stabflity In upholding
economic defense." The title was not of my selection and I must confess I find It a rather
forbidding one. But if you aUow rae a raeasure of freedora and the right to foUow my own
Inclinations, which I do rather easfly,IshaUprobably proceed, I hope not too fllogicaUy,
from a discussion of economic defense to International monetary stabiUty and then to
convertibiUty. For convertibiUty is not just a technical state of monetary and economic
conditions. It Is, in fact, a philosophy of how the free world can best organize and conduct Itself for maximum poUtical, mflitary, and economic strength and for dynamic progress under a combination of economic and political freedora.
In exaraining the bases for strength in the free world today, be they political, mlUtary
or econoraic, one finds, I beUeve, that they are inseparable. Adequate defenses against
the forces of the international Comraunist conspiracy can be raaintained here and in the
free world only if they are supported by sound and corapetitive econoraies marked by
dynaraic* growth. Essential to such economic growth are sound money, an expanding flow
of mumaUy beneficial International trade, and increased private investment, in short, a
convertible world.
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1954 REPORT OF THE SECRETARY OF THE TREASURY
It Is only through a truly convertible world, with a unified trading and financial coraraunity, that we wfll achieve raaxiraura econoraic strength and the contribution which that
can raake to the political and nuUtary strength of the free world. Convertibflity raeans
International competition at reaUstlc exchange rates, witha relatively freely functioning
and InternationaUy competitive price mechanism. Itraeansthe greatest possible absence
of haraper Ing restrictions, whether they take the forra of restrictive tariffs, quotas, prohibitions, exchange restrictions, or other artificial supports or devices. It raeans buying
m the cheapest raarkets, lowering costs and prices, and spreading technical Improveraents and new inventions to aU parts of the trading world. It means sound and efficient
production and trade at a high level and the best aUocation of resources for the benefit
of aU of us. World-wide convertibflity and nondiscriminatory raultilateral trade provide
the only basis for true economic integration and the strength which that can give to
political and mflitary objectives. Regional efforts at economic Integration may have contributed to some degree to overcoming Immediate postwar bllateraUsra but they run the
danger of perpemating sheltered raarkets and weak currencies. These weaknesses do hot
contribute to econoraic defense. The integration of the world's financial and trading
coraraunity through general convertibiUty wiU provide the greatest raeasure of strength
for the free world.
Because ofour political, mlUtary, and econoraic strength, we In the United States face
an awesorae responsibflity—not only In providing leadership In the free world but In
maintaining a strong and dynaraic econoray here at horae. One hears rauch these days,
especiaUy frora abroad, of the action which the United States should take In the way of a
raore liberal trade poUcy, although the great strides we have made In this field are often
overlooked as are the relatively greater protectionism and restrictionism In many
countries abroad. These raatters are Important but possibly too much attention raay have
beeri directed to them. Leaving aside for the moment the actions which foreign countries
can take, perhaps we In the United States tend sometiraes to forget that our greatest
responsibflity, not only to ourselves but to our friends abroad. Is to devote our highest
InteUigence and fuUest energies to the very difficult job of maintaining economic progress and a high level of economic activity In the United States, and to do It at the same
time we maintain honest money and relatively stable prices here, I. e., with neither
Inflation nor deflation. This Is no easy trick. And since stabiUty, like so raany other
things, should begin at home, perhaps a word on this subject Is In order here.
We In the United States are obUged to have mlUtary strength of sufficient power not
only for our own defense but also to help proraote peace In the world. But in view of the
long-terra namre of the Soviet threat, what used to be abnormal In sudden and sporadic
defense expendimres has, I fear, become normaL We raust therefore face a long period
of raaintaining high levels ofdefense. Since this Is true, and our defoise expendimres are
no longer a-passing or temporary phenomenon. It Is essential that our mflitary posmre
over a long period of time be supported by an econoray which preserves Its economic
and financial strength. And we raust encourage Initiative and fiirther dynaraic growth at
the sarae time.
Without elaborating the details, here at home this has meant the removal of controls
and restrictions which have hampered Initiative and interfered with the freer working of
the market raechanisra. It has meant trying to get better modern defense for the dollars
we spend. It has raeant the eUmination or postponeraent of less essential Government
expendimres and the reduction of the Government deficit. It has meant a beginning In
reducing overburdensome taxes which hamper initiative. It has raeant the better raanageraent of our public debt. And It has meant the greater freedom and independence of the
Federal Reserve System to pursue its raonetary policies for the general welfare.
Thus, our policies at horae are directed toward encouraging Initiative and freedora and
raaintaining a healthy and growing econoray at a high level of activity—with neither Inflation nor deflation. Such an economy we beUeve leads to high levels of world trade on a
sound and mumaUy beneficial basis and makes perhaps our greatest contribution to our
friends abroad. Moreover, maintaining the strength and value of our United States dollar
through sound Intemal finance and increased productivity Is Important not only to con-
EXHIBITS
311
fidence and the encourageraent of savings here at horae. It Is vital as weU as part of our
contribution to International raonetary stabflity and to the value ofour convertible doUar
as a stable point of reference in an unstable world--for theUnited States dollar has
becorae the touchstone for aU the currencies of the free world.
As we look abroad today, we find good reason for increased hopefiilness for the free
and convertible world we want. Paradoxical as it raay sound In the face of continuing
political tensions and large defense expendimres, the free world has probably never been
In better shape In purely econoraic terras: in levels of production, of trade, and of real
incorae.
Balance of payraents deficits of foreign countries have been elirainated or reduced.
Production and trade havebeenraaintainedat high levels. Budgets have been raore nearly
balanced and credit raeasure - have been effective In keeping the growth of raoney supply
raoderate. Prices have been rt., tively stable. As a result of Iraproved conditions and our
continuing aid programs andlargeoverseas expendimres, foreign countries have. In fact,
been able in the last 18 months to increase their gold and official dollar assets by raore
than 3 biUlons of dollars, a truly forraidable Increase, approximately equal to the total
present gold and doUar assets of the Internationai Monetary Fund. Some of these gains
In reserves have, ofcourse, been due to the very restrictions on imports of dollar .goods
which we seek to eliminate. And, we know how easily unsound Internal raonetary policies
can dissipate reserves. But we are justified In being greatiy encouraged by this Iraproveraent, a good part ofwhich Is firraly based on sound raonetary and fiscal practices and on
Iraproved corapetitive ablUty.
This iraproveraent In econoraic and financial strength abroad and In International raonetary stabflity Is cause for satisfaction for raany reasons. Not the least of these is that It
Is due in considerable part to a change in phflosophy--to the renaissance of raonetary
poUcy and to the retreat from restrictionism In governraent poUcy. For those of us In the
United States who have for so long, and often with too Uttie support, advocated econoraic
freedom and the value of strong, competitive economies with efficient production In promoting high levels of sound eraployraent and trade, it is encouraging, Indeed, to note that
other governments, having learned the high costs of economic restrictionism and artificial prices, have Increasingly mrned to the policies of sound money and greater economic freedora.
As our friends abroad fiirther strengthen their econoraies and increase their gold and
doUar reserves, we can see not only the end ofour eraergency prograras of econoraic
aid but we can also hope for sorae further relaxation or eliraination of the artificial and
discrirainatory barriers to the sale of American products abroad on a competitive basis.
Part ofthe testofthestrength of our friends' economies wlU corae hi the fiirther. reraoval
of these discrirainatory restrictions and greater exposure to the forces of corapetition
frora abroad.
For years It has been a raajor aim of the United States Governraent to reestabUsh conditions of genuine world-wide convertibflity and of nondlscrinilnatory raultilateral trade.
In this aira the support ofthe United States Councfl of the Internationai Charaber of Coraraerce has been consistent. With continued progress In sound raonetary policies and
Improved competitive abflity, our friends abroad are today perhaps closer to achieving
genuine convertibility than at any time since theend of the war. When and how convertibility of other currencies wiU be achieved, I cannotsay.ButltwlUcertainlynot.be
achieved as a result of unilateral action takenby the United States. It would not be realistic to expect that this goal can be achieved by reduction of United States tariffs alone.
And It would not be reaUstlc to expect that It wfll be brought about by very large StabiUzation credits provided by the United States.
The need for very large stabilization credits to Increase International liquidity and
provide confidence for a convertibflity operation has been advocated In many quarters.
There are others, however, who do not attach the same Iraportance to stabilization
credits In the blUlons of dollars which have been suggested. Permit me to subrait In this
connection one final thought with perhaps an emphasis which has not previously been
given. It may be that some modern societies have developed econoraic poUcles or have
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1954 REPORT OF THE SECRETARY OF THE TREASURY
widely accepted social poUcles which may Inhibit greatiy the flexibflity of their doraestic
policies. This raay unduly Irapalr their ablUty to accept the discipline of convertibiUty In
their doraestic policies. If so, it raay be that they must then be prepared to have greater
flexibility In their externalpoUcles,lncludlngthelr exchange rates. It is at least possible
to visualize that If doraestic poUcies are lacking in flexibiUty, a very large stabilization
credit for convertibility purposes would prove too great a teraptation, and countries so
simated would resort to its undue use rather than take the appropriate Internal raeasures
or change their exchange rate In time. At least. In considering the necessary size of
stabilization credits for convertibiUty operatlcHis, one should not Ignore the posslblUty
that smaller StabiUzation credits within our present resources may be adequate for the
job. The size of the stabflization credits Is less Important than the appropriateness of
policies and the wiUingness to change thera as required.
For as I said at the outset, convertibiUty Is not just a combination ofracmetaryand
econoraic factors. It Is a phflosophy of economic behavior. The judgement of when the
world Is ready for convertibiUty wlU not be solely a judgraent of econoraic conditions,
such as competitive ablUty, extent of restrictions, appropriateness of exchange rates,
or adequacy of reserves. It raust also be a judgraent of huraan beUefs and intentions-of whether governraent leaders and the people of the country beUeve in a free econoray
as a way of Ufe and beUeve It Is worth defending and fighting for. If the nuraber of
leaders and people who believe In the value of convertibflity Is not sufficient and If they
wlU not accept the dlsclpllneofconvertlbflity. It wfll fafl. The Iraportant consideration Is
that the leaders and peoples ofthe major countries in the world, in fact, beUeve in the
internationai corapetitive systera and the true philosophy of a convertible and a free
world. They must be ready and willing to submit to the Internal and external discipline
which Is required for the achieveraent and maintenance ofthe freer, the stronger, and
the more dynaraic world we aU want.
Exhibit 53.--Statement of the Governor for the United
States, Secretary of the Treasury Humphrey, at the
ninth annual meeting of the Board of Governors of the
International Monetary Fund and the International Bank
for Reconstruction and Development, Washington, D. C ,
September 24, 1954
At the opening of the meeting It was my privilege to bring you the welcorae of the
President of the United States in behaU of the American people. Now I should like to
express ray own gratification at being with you again and representing the United
States in the second of these annual raeetings which have been held since I becarae
Secretary of the Treasury. It Is a great pleasure to renew our pleasant associations
and to have the oppormnity to discuss probleras of raumal Interest with you.
Since our last meeting the free world has continued to advance toward our comraon
objectives of a healthier and wider flow of trade and raoney. The President of the United
States In his March 30 raessage to our Congress has set the guidelines for our foreign
econoraic poUcy. Last month he eraphasized that this message remains firraly our
position. Our objective Is "to obtain, In a raanner that Is consistent with our national
security and profitable and equitable for aU, the highest possible level of trade and the
raost efficient use of capital and resources". Greater freedora frora restrictions and
controls and the Increased efficiencies which arise frora expanding raarkets and the
freer play of econoraic forces are essential to the attainment of this higher trade level.
During the past year genuine progress has been raade In reraoving restrictions and
strengthening our econoraies. Production and trade remain at high and sounder levels.
Good money poUcles are raore widespread. Price levels have become more stable.
Balances of International payments are in better equiUbrium. Currency convertibflity,
a most desirable condition for a freer and healthier International trade, has becorae a
nearer prospect, as the Fund report points out.
EXHIBITS
313
I think It Is worthy to note how far the Trade Agreeraents Program of the United
States has raoved to reduce our tariffs and elirainate restrictions against Iraports
through the negotiation of reciprocal agreeraents. During 1953, only 45 percent of the
total value of our iraports were subject to any Import duties. Fifty-five percent were
duty free. The duties collected on our dutiable Imports represented only 12 percent of
their value. To some extent, of course, the ratio of the duties coUected to the value of
imports reflects a rise In the prices of imported articles. Nevertheless, it is clear that
the average cost, to the rest of the world, of sending their goods to us Is now comparatively low.
The United States has taken and wlU continue to take Its part in trying fiirther to
remove unnecessary restrictions on international trade under the program set forth by
the President in his March 30th message to our Congress, and our raost recent moves
toward customs reform are another step In that direction.
In view of the stronger international position of many other countries, we should
reasonably look forward to gradual further Ufting of their present restrictions on their
trade with the rest of the world and with u s .
I think it Is generaUy recognized that probably the greatest contribution which the
United States can make to expanding and profltable International trade is a healthy and
growing econoray at a high level of activity here In the United States. This helps sustain
a high level of deraand for the world's goods and so fosters trade on a raumaUy beneficial baisls. To sustain a high level of economic activity In this country Is the keystone
of our policy.
Over the long term, econoraic progress raust be based upon a substantial flow of new
private Investraent, both national and mternational. The Internationai Bank In Its relatively brief career has done much to Iraprove the cliraate for investraent. Its loans for
the developraent of basic facflities in the member countries have provided the groundwork for other forras of investraent. The Bank can be an iraportant suppleraent to the
flow of private investment, but It cannot be a substimte for It.
In 1953 the Internationai Bank disbursed $240 miUlon In loans to member countries.
By way of comparison, the outflow of private capital from the United States has been
about $900 mlUion a year for the last six years. In addition, the subsidiaries abroad of
American companies have reinvested earnings at an average rate of about $600 mfllion
a year.
To complete the picmre, the United States Government has lent over $400 rafllion a
year net of repayments. AU InaU, these var ious sources, the International Bank, private
United States investors, and the United States Governraent, have added raore than $2
bflUon a year to the capital available to foreign countries. Three-fourths of this has
corae frora private Investors. NamraUy the great bulk of-this investraent has been made
in those countries where experience has shown the principal is raost safe and where
reasonable remrn of earnings can be best assured.
AU countries raust of course rely upon domestic savings for the great bulk of their
economic development. The encouragement of savings and of capital formation at home
and the Investraent of these savings at horae In productive enterprise, as weU as investraent frora abroad, are dependent on sound raonetary and investraent policies and
assurance of safety of principal and fair treatraent of Investors, which give people
confidence In their currency and In the preservation of Its value. I ara sure the discussions we shaU have during the next few days wfll help to assess the Iraportance of
these eleraents In vigorous and successfiil internationai investraent.
I ara looking forward to hearing the views of the other governors on the problems of
International exchange arid capital investment and the related matters, which are the
occasion for our annual.meetings. I know that during these meetings we wiU aU becorae
better acquainted and have the opportunity to obtain a better understanding ofour raumal
Interests and problenis, which we can aU approach In a real spirit of optlralsra so
amply justified by the wide-spread Iraproveraent in econoraic conditions In the free world.
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1954 REPORT OF THE SECRETARY OF THE TREASURY
Exhibit 54.--Statement by Secretary of the Treasury
Himiphrey at a panel discussion before the Board of
Governors of the International Bank for Reconstruction
and Development, Washington, D. C , September 28,
1954
P r o s p e c t s for private international
investment
I welcorae this oppormnity to discuss private investment and to hear the views of
others on this subject.
I have been asked to speak to you about some of the problems which face the private
Investor Ina relatlvelyyoimgcapltal-exportlngcountry. This does not mean I am unaware
that there are two sides to this question, but merely that l a m sure ray coUeagues frora
India and Brazil can present the picmre as It appears to the .capital-importing countries
rauch better than I. They wlU be foUowed by the ChanceUor of the Exchequer whose
broad perspective Is based on the United Kingdora's long experience In raaking Investraents In so many places In the world.
Before discussing the obstacles which confront the Investor, I should like to say a
few words about the improveraents we have been wimesslng abroad, and the very
substantial accorapUshments private Investraent Is raaking despite the difficulties which
stiU exist in sorae areas.
As has been said before at this conference, confidence has been Increasing. Currencies
have grown stronger as reserves have Increased. There has been progress In reraoving
quantitative restrictions on trade. Payraents In many of the world's currencies are
becoming freer as governments relax the grip of their exchahge controls. These are aU
marks of an iraproveraent In the financial position of many countries of the free world.
These changes have been reflected In a profound shift In our own balance of payments.
During the years 1946 through 1948 the transactions of the rest of the world with the
United States resulted In our coUecting four and one-half bilUon dollars in gold and
in dollar balances and investraents frora foreigners; that is, they paid us this araount
to settie their accounts. In 1949, we were In approxlraate balance. But In the past four
years, frora 1950 through 1953, the reversal was pronounced, and our transactions
with the rest of the world added about $7.7 bfllion to foreigners' assets In gold and
doUars. Thus, for the postwar period as a whole, we have not drawn reserves away
frora the rest of the world, but, Instead, have contributed to thera.
This has been the end result of our trade poUcy, our custoras reforms, our aid
policy, our mflitary expendimres, and our private and pubUc Investraents abroad. In
the current year the sarae trend is continuing, and at present rates another bfllion
and one-half doUars wfll be available for building up foreign assets In 1954.
Durabflity In the balance of payraents in a world subject to events changing as rapidly
as those of our generation Is not an easy thing to assure. But the record of the past
four years Is favorable.
In raany countries, however, there Is scarcity of Investraent capital and a pressing
deraand for fiinds for developraent.
AU of us In the free world must be ever mlndfiil of the extreraely low standards of
Uving which exist In many parts of the globe. In sorae countries, very low standards of
Uving exist where namral resources are bountifiil. In others, rapidly growing populations
are pressing hard on existing resources, but even in these cases the absence of raodern
techniques of cultivation and tools of production, low standards of education, and poor
conditions of health, present a chaUenge and offer an oppormnity for improving the lot
of many miUIons of mankind. We must keep these problems to the forefront and
cooperate In every practical way to bring modern science, tools, and technology
to bear upon them. But private investment is not made for phflanthropic reasons.
It Is raade for profit that Is freely available to the investor on principal that is safe.
Chairraan van de Kleft In his opening address caUed attention to the coraplicated
econoraic problem of differences in wealth and savings araong countries, and the
EXHIBITS
315
flow of private capital which Is needed to help to allay these differences. He noted
that there are "new econoraic and poUtical factors" In the postwar period, which In
some cases "have tended rather to slow down than to increase the flow of private
capital to the regions that are most in need of development."
What he has said Is quite true. NatlonaUstic trends resulting in laws that discriminate
against Investors frora other lands and restrictions jeopardizing either principal or
the receipt of Incorae slow down Investment frora outside. Vacillating policies of
governraents can be warnings to prudent Investors to look elsewhere.
Nevertheless, in raany places private Investraent has been raaking a substantial
attack on the problera of proraoting developraent.
At the end of 1953 our private Investors had approxiraately 23.7 bflUon doUars
Invested In foreign lands on which we haverecenUy been averaging earnings of approxiraately 1.5 biUion dollars a year, much of which came to us In the forra of needed goods
Iraported through foreign subsidiaries and branches of United States corporations.
At the sarae tirae, during the past six years, our private Investors were providing
to other countries about $900 rafllion a year In newly exported private funds, net of
repatriation of capital. In addition to these exports of new doUars, about $600 rafllion
a year In earnmgs by foreign subsidiaries of United States corporations abroad were
reinvested directiy without being brought horae and thus do not appear In either of
the two figures I have just cited. In aU, new capital provided by private sources frora
this country has reached at least one and one-half bflUon dollars a year. As I suggested
on Friday this total Is about three times the rate of pubUc lending by Governraent
agencies during the sarae period, net of araortlzatlon and repayraents of principal
on United States Governraent loans.
A very substantial proportion of our private investraent has been raade In Canada,
where conditions have been particularly attractive. Nevertheless, we estiraate that
private investors in the United States have been placing as rauch as $900 raiUion a
year in the rest of the world, during the past six years, including the reinvested
earnings which I raentioned above. Even If we raake a rough estimate and take out
aU investraents in Canada and aU investments anywhere in petroleura enterprlsies,
we would have left about $ 600 raiUion a year which has financed a wide variety of
other enterprises outside of Canada. These araounts represent a very substantial
suppleraent to local savings.
Sorae concern has been expressed that the rate of new private investraent appeared
to slacken rather sharply in 1953. ActuaUy, this appearance was accounted for largely
by security transactions and a reduction In commercial credit; direct Investraents
by United States corporations continued at about the rate of previous years. I am
happy to report that during the first half of 1954 our private investors placed $ 644
rallUon In new capital abroad, even without aUowing for reinvested earnings. At an
annual rate this Is a larger outflow than In the peak postwar year of 1950.
What about the prospects for continuance of this flow or Its Increase? The prlrae
factor which wfll deterraine this Is the establishraent of confidence In the country
seeking Investraents araong Investors abroad.
Ordinarily It takes tirae to bufld confidence. As with Individuals, It Is best established
by a definite course of good conduct over a period of years. The old saying that "Actions
speak louder than words" was never more apt. Moreover, as frequentiy pointed out, the
progress of years In establishing confidence can be shaken overnight. But long continued
good behavior Is not always required. Governments change and even more Important
the thinking of the great raass of the people of a country can also change either for
the better or for worse. It Is the real spirit of the people that Is raost Iraportant.
They either resent the foreigner and his operation or welcorae hira as a weU recognized
raeans of raore rapidly iraproving their own Uves, and so express theraselves by
their conduct and through their governraents. That Is the real flag of Invitation or
of warning. Moreover, foreign capital Is not so different from capital at horae. It Is
attracted to countries where conditions are also favorable to the local Investor.
No country can reasonably hope to attract foreign Investors If Its own savings are
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1954 REPORT OF THE SECRETARY OF THE TREASURY
seeking shelter abroad. Inflation or unfair treatraent frora popular resistance affects
aU mvestors whatever their natlonaUty.
It Is hardly necessary to discuss in detafl the faraiUar types of deterrents which
adversely influence the Investor today. It is probably enough to raention that sorae of
the principal ones are threats or a history of confiscation or discrimination.
There are also the risks associated with exchange restrictions and multiple rate
systems which are both complex and subject to considerable instabflity. An abrupt
and sharp depreciation can seriously Impair the fruits of past efforts for the foreign
Investor. Restrictions on transfer present a constant fear to the Investor that he
wfll find hlmseU queuelng up at the end of the Une to receive perraission to transfer
his Incorae into the currency he needs. In raany of these areas the raerabers of the
International Monetary Fund are cooperating to provide a better basis for the flow
of International capital.
Sound large-scale private investment abroad can only result frora assurance of the
security and the right of ready repatriation of principal and an opportunity for greater
profit than at horae. The private Investor has a choice between his own market and
opportunities ui foreign countries. Where as here there are good possibflities open
to hira in his own country, every day,he wfll need sorae additional induceraent to undertake the extra risks of going to foreign lands to cope with the differences in language,
law, and custoras. He wiU want to be doubly sure of his business associates abroad.
And he wfll be slow to go If he feels that his activities wfll be approached In a general
atraosphere of criticism rather than one of warra welcorae..
Of our own substantial direct private Investments abroad, more than $ 6 bfllion is
connected with petroleura and raining enterprises. These fimds go where the resources
are to be found, and when they are needed, and when the pulling power Is great enough
to overcome the many obstacles, both namral and man-made.
In the area of manufacmrlng or raerchandlsuig, such considerations are much less
compelling. The economic inducements must persuade the foreign investor that his
chance for profit Is greater.
On the other hand there raay weU be raore resistance frora a feeling of nationaUstic
possession in the case of the developraent of namral resources than when only raanufacmring or merchandising Is involved. And the large size of the Investment required
and the length of time In which It can norraaUy be remrned Is far greater for namral
resources than In raanufacmrlng or trading lines so that greater security of principal
and remrn of profit raust be assured. But there Is no way in which a country can
develop faster for the rapid iraproveraent of the Uves of its own citizens than by the
use of foreign capital In mrning its namral resources otherwise lying dormant Into
jobs and horaes and better Uving for the nurabers of its people that wfll be so employed.
The high yields on common stocks in the United States have been a powerful attraction
for the private investor. During the past year the growth in confidence and the supply
of capital for Investment here has brought somewhat lower yields. This may provide
some stimulus to Interest In investment abroad where the assurance of security and
the lure of higher profits Is sufficienfly attractive. Special tax consideration and other
raethods of stimulation can also contribute to Increased interest in foreign flelds.
What are the poUcles which attract private capital frora abroad? I think they can
best be suraraed up In a siraple way; security and the right of ready repatriation of
principal and attractive remrn.
It is not unlike the conditions which Induce two Individuals to erabark on a coraraon
venmre. There raust be mumal confidence. The private foreign investor raust be
reaUy wanted and welcorae not just by the governraent at the time but by the people
as weU and for a long time because they are truly persuaded and beUeve that by
the use of his raoney they can better theraselves faster and fiirther than they can
alone. They raust be wflling and glad to pay a reasonable price for the risk Involved
and show by a history of fair dealing that after the risk has been once undertaken
and when success for both has been won that they wlU then not go back on their bargain
EXHIBITS
317
and through direct action or ruse or sharp practice of any kind seek to enlarge their
fair share of the original basis on which the joint enterprise was begun.
If governments and laws are responsive to such a conviction of the people, their
countries wfll have Uttie trouble ui obtaining private foreign investraent for any
venmre within their borders that can properly earn an attractive remrn.
I want to eraphasize that we have been discussing private mvestment abroad as
distinguished from governraent programs. Whfle raany of the criteria for Investraent
are equaUy appUcable to both there raay weU be Induceraents In the latter case which
would go beyond those to be properly considered In the former.
For our part, that is, in the United States, surely our greatest contribution wfll
be to maintain a high level of economic activity and income in the United States, and
thus to provide a reservoir of venture capital. If we can proceed with mumal trust and
confidence I am sure that as President Black has so weU said we wfll through the
channel of private Investraent as weU as the efforts of the Internationai Bank, succeed
In converting a revolution of expectancy Into first a practical business-like approach
and then Into a real revolution of achieveraent.
Exhibit 55.—Statement by Under Secretary ofthe Treasury
for Monetary Affairs Burgess at the discussion of the
Annual Report of the International Monetary Fund,
September 25, 1954
The annual report which we are discussing today has for its central theme "The Prospects for Convertibility." The report is a cogent analysis of those developments in
world trade and payraents which give reason to beUeve that convertibiUty Is a realizable
objective. It poses for us the task of assuring that the Fund Is fuUy prepared to play an
effective role in faclUtatlng action by Its members. Quite properly the report does not
atterapt to forecast the namre and tiraing of the steps which raay be taken by Individual
countries or groups of countries.
When it does come, convertibiUty wfll foster a firmer financial foundation for the
balanced growth of internationai trade. It wfll help provide an environraent In which
capital may move more freely across International boundaries into genuine long-term
Investment.
To accomplish this purpose, currency convertibflity raust be accorapanied by a dlsraantilng of discrirainatory restrictions on trade and by eUmination of the use of quantitative restrictions for balance of payments purposes except In special circumstances.
In a coraraunity of free nations which Is less divided by quotas and exchange controls
and bilateral dealings, we raay expect the freer movement of goods and capital not only
to strengthen the economies of free nations IndividuaUy but also to bind them more
closely together: to contribute to our political and economic unity as weU as our
economic strength.
In pursuing these objectives, aU countries have raajor responsibflities. This Includes
countries whose currencies are presentiy convertible as weUas those which have yet to
raove to convertibflity.
With respect to the foreign econoraic policy of the United States, the President has
raost recently stated:
"The events of every day bear in heavily upon us the iraperative necessity of building
stronger economic relations between ourselves and the free world. This Is true, first,
because the growth of our own economy and the attamment of rising standards of Uvuig
for our people can materlaUze only in step with economic growth and Improvement in the
econoraies of the free world linked to ours.It is raore eraphaticaUy true because It Is In
339256 O - 55 - 22
318
1954 REPORT OF THE SECRETARY OF THE TREASURY
our enUghtened seU-lnterest to have economicaUy strong friends throughout the world.
The prudent widening and deepening of the channels of trade and Investraent by us wfll not
only produce good results In theraselves but wfll encourage simflar action by our friends
abroad. This Is the route to better markets and better feeling."
Throughout our discussions of convertibflity we should aU keep In mind the Iraportance
of having the broadest possible participation in a raajor move to convertibiUty. This Is
not siraply a question of the success of such a raove or Its general beneficial effects for
the free-world coraraunity as a whole. It also Involves the direct advantages which wfll
accrue to each country. These advantages are just as great for the sraaUer or underdeveloped countries as they are for the major trading countries.
There has been some tendency to beUeve that sound currencies and convertibflity are
luxuries which can be afforded only by advanced countries of raajor Iraportance In world
trade. This doctrine has Its roots In a notion that econoraic developraent can and should
be carried out by deficit financing, offsetting the effects of any excess of raonetary
deraand on the balance of payraents by exchange controls and quantitative restrictions on
trade. The postwar history of Investraent and development prograras In country after
country, and not least In some ofthe relatively advanced European countries, has demonstrated the inflationary dangers ofthis approach. Such a policy discourages real savings
and drives capital either Into domestic speculative channels, such as real estate, or Into
hiding abroad. It raakes foreign capital shun the area.
The best hope ofthe underdeveloped areas over the longer terra Ues In the developraent
of a world trading systera based upon freedora of payraents and a rainiraura of quantitative
restrictions on trade. Only in such an environraent can we expect capital to move In large
quantity across national boundaries.
Now it may be usefiil to mrn briefly to some of the specific problems- on which decisions wfll be required In determining the Fund's role In support of a broad move to convertibflity. First, how can the Fund's resources be put to raost effective use In support of
convertibiUty?
We are raost fortunate that the resources ofthe Fund have been safeguarded during the
postwar period so they are now available to support the objectives for which they were
established. The resources of the Rind are not Uraldess, but they do provide a major
source of secondary reserves which can add to confidence and assist raeraber countries
in meeting teraporary swings In the balance of payraents. No reserve fimd, no raatter how
large, can substimte for sound monetary, exchange, and trade poUcles. The primary
fimction of the resources of the Fund in support of convertibflity wiU be to assure the
pubUc that resources are available to offset those speculative raoveraents of fimds and
those teraporary adverse shifts in trade which arise from time to time.
It would be Inappropriate here to atterapt to speU out in detafl the conditions which the
Fund raight wish to lay down as prerequisites for access to Its resources. However, the
suggestion of sorae general considerations may be helpfifl.
It would seera clearly desirable that a country seeking assistance should come to the
Fund witha prograra of the positive steps it proposes to take in raoving to convertibiUty.
Such a prograra would encompass Its exchange rate policies. Its poUcles for maintaining Internal financial stabflity, and Its plans for eliminating discrimination and
reducing restrictions in its trade and payments arrangeraents. An effective prograra
would also give assurance of maintaining the revolving character of the Fund's resources.
In sorae cases, it raay be desirable for the Fund to extend specific lines of credit for
definite periods through standby arrangeraents adapted to the needs of particular
countries. However, sorae other countries raoving to convertibiUty raay not need such
forraal arrangeraents. They raay simply desire to keep the FUnd fiflly apprized of their
programs, with the door open to request financial assistance should the need arise. It
wlU be m the Interest of aU of us to preserve the moblUty of the Fund's resources so
that adequate fiinds raay be coraraitted quickly and effectively to raeet genuine cases of
need.
EXHIBITS
319
With a broad raove to convertibiUty, It wfll be more important than ever for the Fund
to serve as an effective center for the continuous review of trends and problems arising
In International payraents. A systera of raultilateral trade and payraents necessarfly
Iraplles that action by cffie raeraber of the community wfll affect the rest for good or fll.
It Is raost desirable therefore that an opportunity be given for intemational consultation
prior to decisions by merabers of the Fund which wfll have an Important influence on
international payraents.
Another point we should be thinking about relates to Articles XIV and VUI of the Fund
Agreeraent.
Article XIV was designed to assist raeraber countries to raeet the probleras of postwar
rehabiUtation. It was envisaged that the obUgations Iraposed by this article would be
superseded by those of Article VUI when substantial progress had been made In financial
and econoraic reconstruction.
In substance. Article VlUprovldes that noraerabershaU Impose restrictions on current
international payrnents except as raay be approved by the FUnd; also, that no country may
engage in discriminatory currency arrangements or multiple currency practices except
as approved. This article wisely lays down no criteria for determining under what conditions countries raay Irapose restrictions. Within the broad liraits ofthe Fund's purposes
the executive directors a re given fifll dlscreticMi to proceed as the circurastances Indicate.
The Fund has been passing through a postwar "transition" period which we hope raay
be drawing to a close. The Iraproved state of world econoraic affairs Is an iraportant and
encouraging developraent. It reflects expanding production, and the overcoming of the
postwar surge of Inflation. It Is a gratifying tribute to the convictions of the financial
leaders assembled here who have worked so effectively in raany ofthe raeraber countries
to achieve sound cur rencies, bring governraent budgets into balance, and reduce inflation.
For fiirther progress In world payraents and trade arrangements we raust continue to
rely mainly on the wisdom and courage of the financial leaders assembled here and on
their Influence within each raeraber country.
ADDRESSES AND STATEMENTS BY THE
SECRETARY OF THE TREASURY AND
OTHER TREASURY OFFICIALS
Exhibit 56.--Statement by Secretary of the Treasury
Humphrey before the Joint Committee on the Economic
Report, February 2, 1954, on the reason for keeping
Government deposits in banks
Out of 14,000 eUglble banks in the United States, approxiraately 11,000 have Governraent deposits. These accounts serve as a pipeline for theflowof taxes and the proceeds
frora the sale of Governraent securities frora the pubUc into the Treasury's accounts at
the Federal Reserve Banks. They also serve as teraporary reservoirs on which the
Treasury draws as It needs funds. The amount now m these accounts Is equal to about
two weeks' expenditures of the Government.
The Treasury keeps money In banks because (a) itis the raost efficient and economical
way to handle the Governraent's business, and (b) it avoids withdrawing fiinds frora
coraraunities before they can be remrned through Government disbursements.
Congress passed the National Banking Act in 1863 specificaUy authorizing the Secretary of the Treasury to deposit raoney In banks after efforts by tlie Governraent during
the Civfl War to act as its own banker failed, resulting in the suspension of specie
payraents.
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1954 REPORT OF THE SECRETARY OF THE TREASURY
The present systera enables the Treasury to keep a smooth flow ofracMieydespite
the unevenness of the flow of Governraent revenue and expendimre. Assurae for Instance
that Bank X in Panhandle, Tex., seUs a haUmflUon dollars of savings bonds to Its
custoraers. This raoney Is left on deposit In Panhandle untfl it is needed at the Federal
Reserve Bank of Dallas to pay the Governraent's bills. If this raoney should Immediately
be withdrawn frora the bank at Panhandle, before It can be returned to channels of trade
through Governraent disburseraent, the mcmey in the community of Panhandle would be
transferred to Dallas.
During heavy tax periods, particularly, there would be a tremendous shifting of funds
between banks and coraraunities. The transfer of $8 to $ 9 bfllion In the raiddle of
March from the various coraraunities throughout the country to the accounts of the
Governraent at Federal Reserve Banks would play havoc with the banking system and
business. In order to meet such withdrawals, in raany instances banks would have to
restrict credit and Uquldate securities in the raarket.
MilUons of doUars of additional clerk hire, costs of currency shipments and transfer
of fiinds would be necessary if the Governraent should handle the business now handled
for It by banks In connection with deposits of withheld Incorae and social security taxes,
the issuance of United States savings bonds, and the handling of subscriptions to other
types of Governraent securities. If aU reralttances had to be sent to Reserve Banks for
collection, the Governraent would have raany more millions of dollars tied up in process of collection.
AU Government deposits in banks are fiiUy secured by securities pledged with Federal
Reserve Banks. Also, raeraber banks are required to raaintain a reserve with Federal
Reserve Banks against Govemment deposits as weU as other deposits. At the present
time this reserve araounts to about 18 percent for aU classes of raeraber banks.
Under the Banking Act of 1933, banks are prohibited frora paying Interest on dwnand
deposits, including Governraent deposits. In view ofthe short time they hold Government
deposits, often only a few days, and the services they render, the present arrangement
appears equitable.
Exhibit 57.--Remarks by Secretary of the Treasury
Humphrey before the American Society of Newspaper
Editors, Washington, D. C , April 15, 1954
Just about a year ago I had the pleasure of appearing before you. If you wfll remember
there was then great concem as to whether or not a hoped for peace in Korea would
quickly bring on a depression. My talk to the Associated Press Annual Meeting In New
York two days later, which many of you here today attended, began with these words:
"There Is no reason to fear peace.
"We are not headed for depression."
We aU were grateful that the fighting in Korea soon ended and 1953 was the biggest
and the best year in Araerican history.
Then we had only plans for reductlcm of Government expendimres and only hopes of
tax reductions to foUow.
And now a year later with actual accoraplishraents In both flelds where then we had
but plans and hopes many people have again been concerned with fears of depression
and the prophets of gloom have been loud in their dire predictions.
It Is easy to be misled about how "good or bad" business reaUy is in this country
after aU the loose talking that has been done. It would be especiaUy unfortunate If the
editors of the great newspapers of this country should not have the proper perspective
on the state of our economy.
Let us reraeraber such things as these:
EXHIBITS
321
Average eraployraent In the first three months of this year was 60 miUlon people, the
highest number of people employed during that period of the year in any year bf our
history except for the first three months of last year immediately following President
Eisenhower's election.
Construction contracts awarded In March of this.year were 13 percent higher than a
year ago.
Total personal income is running higher than it was a year ago.
There are sorae other indicators which a re down, and we recognize that unemployment
is up over a year ago. Moreover we fuUy reaUze that each individual who is out of a
job has a serious personal problem, and this administration is greatiy concerned to
see that everyone who wants work can have eraployment.
But basicaUy our present economic condition is a result of necessary inventory
adjustments plus a transition from wartime to peacetime spending by the Governraent.
As we cut Government spending, we must remrn to the people in tax cutsj as we are now
doing, the biUions of dollars of Government money saved so that it can thenbe put to
making new jobs for the people who previously got their income from Government
spending.
We are transferring this money back to the people by tax cuts which, when the tax
revision biU is passed, wiU mean total tax cuts effective this year of $7.4 biUion, the
largest single doUar tax cut in any year in the Nation's history.
When our tax program is fiiUy effective every single taxpayer in this country will
have received some tax cut and benefit in this year.
The jobs which came from the Government's spending of these biUions must now be
found, and are being found, in private industry making things for the people to buy. AU
of those people who were making tanks and guns must now make washing machines and
other things, for peacefiil living.
The fact that employment continues at the very high level of 60 miUlOn people at
work shows that this transition to making things for living instead of for klUlng Is being
made remarkably weU.
1 am confident of the fumre and that we are not now headed for a depression.
Some people, fearing further downward trends, ask when the Government is going to
get " i n " and do something about it.
The fact is that the Government Is always " i n " . There are so many things that the
Government does, or does not do, that have a very real bearing on the state of the
economy.
There are many things that the Government has already done: things recommended
which are now before the Congress; and things which the administration has proposed
either for the fumre or for action by executive agencies, all of which have and wiU help
strengthen our economy.
First, In things already done, we should look at an area of Government .action very
close to us at Treasury, the area of flexible debt manageraent and raonetary policy.
The Federal Reserve Board, with its responsibility for raonetary policy, reduced
reserve requirements of meraber banks substantiaUy as early as last June to make
sure that there would be no bar to the proper volume of bank credit necessary to a
growing economy. The Federal Reserve h^s purchased short-term Government securities in the market, to Increase bank reserves, for a considerable period. The rate at
which bankers can borrow from the Federal Reserve was reduced in February and
again just day before yesterday a further reduction was approved.
Treasury debt raanageraent also has been a positive factor, and Government Interest
rates have faUen to the lowest point in many years. Last July the Treasury had to. pay
2j percent for an 8-month loan. In February we paid the sahie rate fqr a loan runnmg
almost 8 years. And our last one-year money borrowing was at 1-5/8 percent. Ninetyday bills cost close to 2i percent last June; now they are down to 1 percent.
In the current economic environment the Treasury has purposely done Its financing
in a way that would not Interfere with the availabflity of long-term investment funds to
corporations, State and local governments, and for mortgages, to horae owners. We
322
1954 REPORT OF THE SECRETARY OF THE TREASURY
want to be sure that plant and equipraent, horae buflding, and other construction aU
have araple available fiinds. The fact that construction thus far this year Is running so
high demonstrates how effective these policies are.
We have the SmaU Business Administration to ease the proper handling of credit in
this particular and vital part of our economy.
Perhaps the biggest way that the Governraent Is continually "In" the economy is in
this matter of taxes. We have noted that tax cuts effected this year wiU total $7.4 blUlon,
the largest total dollar tax cut In history. This saving of such huge araounts of raoney
for peacetirae use should have a tremendously beneficial effect in stiraulating the
econoray.
SomC' of the other things recoraraended by the adrainistration and now before the
Congress which wlU have considerable bearing upon the econoray are as foUows:
The President has asked legislation to broaden the base and benefits of old-age
Insurance. This legislation Is currentiy before the House Ways and Means Committee.
In the housing blU, which Is currentiy before the Senate, are two administration proposals affecting the building of horaes. We have asked that the Governraent be aUowed
to change the terras of governraentaUy Insured loans and mortgages as circurastances
require. We have asked that a secondary horae raortgage raarket be established, and
active steps are being taken to accoraplish It.
The adrainistration has taken Iraportant action In reclaraation raatters.
The administration has supported a biU which wlU help the wool growers of the West.
The administration has urged that the highway construction program be Increased
and a record sura has already been voted by the House and Senate.
The adrainistration is recoraraending a positive program for flexible price supports
for the Araerican farraer. The President's prograra Is being actively considered by
both the House and the Senate.
The adrainistration has taken specific actions within the executive departraents and
with other governraental bodies to do things that wlU help strengthen our econoray.
We recoraraended legislation to Iraprove uneraployraent Insurance and the adralnlstration has asked the governors of the various States to study the possibflity of raaking
payraent scales raore realistic.
A coraraittee for State, local, and Federal planning has been appointed and Is now at
work.
The President has asked the Office of Defense Mobilization to redirect Its stockpiling
prograra, which wiU help distressed raining areas.
The adrainistration Is going ahead with Iraproved planning of Its pubUc works prograras which can be avaflable for any eraergency.
Last but far frora least, the tax revision bfll now before the Senate Finance Coraraittee
wlU upon enactment have a tremendously helpfiil effect upon the economy. While It Is
baslcaUy a long-overdue tax reforra bfll. It can help greatiy the current economic transition. There are raany business projects around the country which are being held up
pending final decision on this revision bfll. It is imperative that the earliest possible
action should be taken. When the blU Is enacted, these new or expanding businesses can
go ahead with their plans, which will result in the creation of thousands of jobs and the
vital expansion of our econoray.
But the success of our econoray depends, not upon a single Governraent act or edict,
but upon aU the people trying to do a Uttie raore for themselves, trying to better themselves and their loved ones. Governraent can only help provide a fertile fleld in which
the 161 rafllion Araericans can work. The tax revision blU wiU help provide a raore
fertile field by giving further relief to railUons of taxpayers and stiraulating the Incentive and the enterprise which we need to create raore and better jobs.
Jobs are raore Iraportant than tax cuts. Jobs are what Araerica lives on. The entire
fiscal policy of the Government Is designed and operated to promote more and better
jobs, which raore efficlentiy create the better, cheaper goods, and the expansion of
industry that raakes for the ever iraproving standard of living we aU want In Araerica.
EXHIBITS
323
Exhibit 58.--Remarks by Secretary of the Treasury
Hiunphrey before the Congress of Industrial Organizations Full Employment Conference, Washington, D. C ,
May 11, 1954
T a x e s and jobs
Needless to say. It Is a great pleasure for rae to be here with you today. I received the
Invitation and I proraptiy wrote Walter Reuther that I would be just deUghted to come.
I didn't know at the time thatraygood naraesake, Hubert Humphrey, was going to be here
on the platform with me. Whether one platform can hold two Humphreys or not, I don't
know. And 1 don't know how the press boys wiU keep us separated. I think we may have
had frora tirae to tirae sUghtiy different Ideas about things. Nevertheless we are for one
thing. We are for America. We w^rjt what Is good for America.
The objective is perfectiy clear. There are soraetiraes various ways to reach that
objective. But that li» the one thing that we aU want In this country, and that is the great
thing about this country. That Is what we aU want and what we are aU striving to attain.
Now, I have a few notes written that I would like to read to you for a rainute, and then
I would just like to talk to you about the thoughts and Ideas that we have and to try to
explain to you the reasoning that we have for doing the things we are doing. We are aU
trying to do what we beUeve Is best for this country.
The reason that I was so glad to have the opportunity to come here was that we beUeve
that the more the thoughts that we have can be Interchanged, the more the thoughts that
we have can be expressed and be considered, the nearer we wfll aU corae to reaching the
best raeans of accoraplishing what our final objective, our single final objective, Is.
So, with your perraission, I wfll just run through these notes for a rainute, and then I
wlU spend a few rainutes talking to you about our Ideas and why we hold the Ideas that we
do.
Sorae people In recent raonths have asked when the Governraent was going to get "In"
the econoray and "do soraething." The fact is that the Governraent Is In the econoray aU
the tirae, in aU the raany ways that its actions affect large groups of our citizens.
The actions Governraent takes every day are Influencing, and we beUeve helping, the
economy to help Itself. We are, and have been, taking whatever actions are practical and
proper and consistent with the FuU Employment Actof 1946, which charges the Government with helping to promote raaxiraura eraployraent "In a manner calculated to foster
and proraote free corapetitive enterprise and the general weUare."
There Is a long list of things thatthe Governraent has done. Is doing, and has proposed,
which have a great bearing upon the econoray.
These include such things as Federal Reserve Board action on credit; how Treasury
handles Its financing; the tax prograra; legislation regarding old age Insurance, housing,
highway construction; farra price supports; the wool industry; administration actions on
uneraployraent insurance; stockpiling of minerals; planning for pubUc works; and many
other things.
The tax program Is a particular concern at Treasury. When the tax revision blU now
before the Senate is passed, tax cuts effective this year wfll total $7.4 blUlon, the largest
total dollar tax cut In history. Also, the earUest possible enactment of the tax revision
biU wfll help greatiy the current econoraic transition. I hope for Its early passage for
the good of everybody In Araerica.
Whfle raore than $4 blUlon of tax reUef for Individuals Is provided by the January 1
Incorae tax cut and the excise tax bfll, there is also real reUef in the tax revision bfll
to mllUons of Individuals who have been plagued by imjust tax hardships for raany years.
But the raost iraportant thing about the tax revision biU Is that it wiU stimulate Investment of savings to help new businesses to start, old businesses to raodernize, and so
create raore and better jobs and better Uving for everyone.
Araerica has to raake raore jobs every year to keep the people of Araerica eraployed.
So things that help the economy expand, and so make raore pay rolls, benefit everyone.
324
1954 REPORT OF THE SECRETARY OF THE TREASURY
Breaking down the tax revision biU to say "this helps individuals" or "this helps
business" is raeaningless. Business can't have prosperity unless the great raiUions of
Araerican Individuals have prosperity. Likewise, ralUlons of Individuals can't have
prosperity unless the Nation's econoray Is healthy.
Business grows unhealthy, outraoded and Inefficient unless there Is a constant flow to
it of invested savings to pay for raodernization of working conditions and expansion of
production. Unless savings are mvested, the power and tools in the hands ofthe Araerican
worker becorae outraoded and his production -- and so his earning power -- grow less.
I notice that President Reuther Is quoted on the news tickers this raorning as pointing
out that unemployraent Is stfll Increasing in basic raanufacmrlng Industries. This is an
important point. We cannot have prosperity In America unless the heavy industries have
prosperity. The buyers ofthe products of heavy Industry, generators, mrblnes, etc., are
the businesses and the people who invest their savings. These heavy products are not
bought by retafl consumers, who already have been given general Income tax reUef. But
provisions of the tax revision blU which wlU stimulate investraent wfll directiy stimulate activity and the making of more jobs In the basic manufacmrlng Industries which
Mr. Reuther has mentioned.
Such proposals in the tax revision blU as those which reduce double taxation of dividends and aUow more flexible depreciation, wiU help raodernize the Nation's machinery
and Industrial plant. And raodernization canraakemore sure more jobs at which mlUions
of people can earn higher wages by producing raore and better goods at less cost.
Now I want to talk just for a rainute to you about the raatter of taxes and jobs. I say
"taxes and jobs." It should always be reversed. It is jobs first always in Araerica.
Now, what Is it that raakes jobs? You can't have taxes unless you have jobs. Unless
there are jobs in America, unless America is weU eraployed, the taxes just disappear.
We can't operate unless we have jobs that pay the taxes with which to run the Governraent.
Now, what Is It that raakes jobs? Jobs don't grow on trees. Jobs are created by soraeone; they are raade by soraeone. They aremade and produced alraost out of thin air, you
might say, in the first Instance.
Let's go back a minute. The first thing you have to have to raake a job Is an Idea or an
Invention. Go back to when I was a kid. When I was a kid, I reraeraber very weU when I
saw the first autoraobfle. It carae in a parade with Hi Henry's Minstrels, and It was a
Stanley Stearaer, and the whole town mrned out to see that autoraobile. It was only a year
or two after that that there were a few Buicks being raade over in Jackson, Michigan.
They went busted, and they brought the Buick plant over to Durant, which was a buggyraanufacmruig plant in Flint.. Soraebody had the idea that they could raake a product
which could be sold, which evenmaUy has been buflt and buflt in Araerica untfl we have
aU the thousands of jobs that are now in the autoraobile Industry.
Let's go a step further. Let's get down to more nearly modern times. A few years
ago, who ever heard ofa radio? And even fewer years ago, who ever heard of television?
Somebody Invented something; they got an idea for a product that they thought they could
seU to the people, and then they went ahead to make it.
What is the next step in the making of a job? The next step in the making of a job Is
that somebody buys the tools, creates the plant and buys the tools to start, usuaUy In a
relatively smaU way. But they begin to take this invention, this idea, this product that
can be sold, and they have to start to make it. Nobody can seU you a television set untfl
somebody has made one. They have to start to make It, and after they start to make It
they start to seU It.
Now, why is it that we have developed this systera In America whereby we can have
the high wages that we have In America? There is siraply one reason. Nobody over any
extended period of time can get more than he can earn. The thing that has made high
wages possible, and higher wages coming as we go on through the years. In Araerica Is
that Individual productivity Is being increased In America. Your hands are better than
mine, but my hands or your hands are no better than the hands of a savage when It
coraes to producing things just with your hands. The reason your hands can produce ten.
EXHIBITS
325
twenty, thirty, forty, a hundred tiraes raore than a savage's hands can produce Is that we
have developed this systera of organization, the systera of putting power and tools into
your hands. By the power of those tools in your hands you can create raany, many times
what the savage's hands can create; and because you can create it, you can earn it.
Because you can earn It, you can have It, That Is because we have developed this great
system In this country of organization and creation by the giving of tools.
You know better than anybody that you can't get a job in this country unless you do have
a big investment back of that job. It has to be there, even in the simplest sort of job.
I was talking the other day to a newspaperman, a writer, and he said to me, "Nobody has
got any investraent in ray job. I have a lead pencfl and a piece of paper, and the rest of It
comes out of my head."
I said, "How perfectiy ridiculous that Is. In the first place, somebody has got to produce your pencfl and your paper. Somebody has got to have sorae forests; somebody has
got to have some pulp mills, some ships, some railroads, sorae paper mills just to roU
out your paper. But In addition to that they have to roU out the paper for your newspaper
or magazine. They have to have great printing establishments. They have to have raUroads for transportation; they have to have trucks for deUvery. You have to have aU
these things in order that you can get paid for what you write. If aU you did was write
something, you would get mighty Uttle. You would starve to death. The reason you can
get paid for what you write is that somebody has investments in aU these things for the
creation and distribution of what you write so that it can be sold and many, many people
can get the benefit of it."
So there is no job — I don't care what It Is -- in this country that doesn't require the
Investment of large araounts ofraoney. After that coraes the salesmanship and getting the
product distributed, which In and of ItseU creates many more jobs and is an entirely
separate fleld.
Now, what Is It we are trying to do? I think everybody in this country wants lower
taxes. I am sure myseU that we raust have lower taxes In Araerica If America Is. to be
the land of oppormnity for the young man. America has been known as the land of opportunity for the young man. We want to keep it that way; we want to keep it the land of
oppormnity for the young man. That means that we cannot take so much money from aU
the people in America and put that money into big government as we have been doing.
We have to decrease that expendimre.
Now, as we decrease that expendimre, how do we get taxes down and reaUy get them
down? Why Is It that we don't like deficits? Why Is It that we don't like running up huge
deficits and borrowing additional money?
The only way in the world, in this country or any other country, that you can reduce
taxes, and reaUy reduce taxes, is to cut Governraent expendimres. If you don't cut
Government expendimres, you may think you reduce taxes but you reaUy only partiy
reduce thera and par tiy postpone the tirae of payraent. Whatever raoney is spent by the
Governraent has to be paid by somebody, and It has to be paid at some time by somebody,
and the only way it can be paid Is by the collection of taxes. Now, If we run deficits, if we
do not coUect taxes currentiy for as rauch as we are spending currentiy, we have to pay
the bills as they come In; there Is no magic that we in the Treasury Department have, no
wand that we can wave. When the Government spends money, the bills come In and we
have to pay those bills. Now, If we don't coUect enough money in taxes to pay the bills
with, what do we have to do? We have to do exactiy what you have to do.
America Is nothing but 160 mfllion people In one great big famfly, and aU the fancy
talk about finances and fiscal policies and aU the big words people use don't amount to
anything. We are aU like one great big famfly, and the same rules that govern your
famfly govern the American famfly. If we don't collect enough taxes currentiy, which is
our paycheck, for the Government to pay the bills that we have currentiy, we have to
borrow the rest.
Now, what does that mean? We go out and borrow the balance of the raoney. We then
can pay our bills currentiy, but who is going to pay for what we borrow? The only way we
can pay for what we borrow Is more taxes. So aU we have done when we have reduced
326
1954 REPORT OF THE SECRETARY OF THE TREASURY
taxes more than we reduce expendimres Is to postpone the tirae to when that final tax
Is going to be paid. That raeans that I, an old raan, pass the buck to you, a young raan.
That raeans that if we borrow and keep borrowing and running deficits, aU we are doing
Is burdening the young raen of Araerica who are coraing along, passing It on to your
chfldren and their children.
Now, I don't think that Is the kind of thing we ought to do in this country. I think if we
are going to keep Araerica as the land of opportunity for the young, which we older
people inherited. It Is our duty, as nearly as we possibly can, to pass on that oppormnity for the young people of this country and not keep saddling thera with raore and raore
debt. Today just the Interest on our debt Is raore than the whole Govemment debt was
when I was a young raan. We pay every year In interest raore dollars onracxieythat we
have borrowed than the whole debt was when I was a kid — and when I was fairly old at
that.
When we talk about balancing a budget, that is not an abstract term. AU we are saying
is that we are trying to coUect enough now to pay the bflls that we owe now, and that we
are not trying to pass the buck for paying sorae of our bflls on to sorae of these younger
people. So we are striving for a balanced budget.
Now, why haven't we got a balanced budget? Why haven't we done It right away? WeU,
there are two great reasons. The nuraber one reason always Is the matter of security of
our country. Now, we do a lot of thinking. We aU get absorbed in our own thoughts; we
aU get absorbed In our own activities. But don't forget for a minute that this world Is
today a boiling caldron. We never know when It raay break out, where it raay break out,
or in what way. The safest thing we can do for Araerica Is to have strength. You don't
gain from weakness; you gain security from strength. We must keep Araerica strong;
we .raust keep It raflitarfly strong, and to be raflitarfly strong we raust keep It econoralcaUy strong. We raust keep our business going; we raust keep our jobs going and aU those
things to support it. But we raust keep raflitarfly strong, with the world in its present
state of affairs.
Now, as long as we have that burden, as long as we are faced with that, we can't just
cut off all the mpney we would Uke to cut off. We have to spend a lot of money for preparedness, for security of this country. We haye to be sure that what we do wlU enable
your old friend, Charlie WUson, to get us more security for less money and greater
efficiency. But we have got to be secure and keep it that way.
Now, passing on frora that phase of It to the next phase -- as to why we can't raove as
quickly as we wish to -- I have just told you that the only real way to cut taxes, which Is
what we are trying to do, Is to cut expendimres. Now, even eliminating the question of
security, why can't we go fiirther more rapidly? WeU, let's just think about this. This Is
pretty tough, ladies and gentiemen; it is pretty tough to say it this way, but we raight
just as weU not kid ourselves. We might just as weU face facts. There are only two ways
that the Governraent can save rauch raoney, can reduce Its expenses in large araounts.
The great bulk of the raoney that Araerica spends goes for two things. It either goes for
hiring people to work directiy for the Government or it goes for buying goods of various
kinds that the Governraent buys. Now, when we say we are going to save raoney, that
raeans we have got to go where we spend the money to stop spending It and try to save
It. That raeans we have to hire fewer people directiy. That raeans that teraporarfly the
people that we don't hire are out of a job. It raeans that we have got to be buying less
goods and raaterials of one kind and another that we have been buying. When we don't
buy those goods, that means that those people who have been raaking those goods have
got to be out of a job until they get to raaking sorae other kinds of goods.
So, what do we do? We decide on a program of reduction of expendimres. This coraing
year we are planning on saving about $ 7 bflUon. That Is a lot of money; it is a big cut
In expendimres. That means that that has got to come out of money that otherwise would
go to wages or salaries to people that the Government hires or wages and salaries to
people raaking those goods. If we stop that, we have people teraporarfly out of jobs.
Now, what do we do to try to avoid a simation of having large uneraployment because
the Governraent Itself Is stopping spending of that raoney? What we do Is to give the
EXHIBITS
327
$ 7.4 biUlon back to the people of Araerica In tax reduction. It goes out to the people so
that the people wfll have that $7.4 bflUon to spend directiy, for thera to spend themselves rather than to have the Governraent spend It for thera. That means that the
people of this country, by the things that they wfll buy of aU kinds, wfll spend that $7.4
bflUon; and the man who was raaking soraething for killing soraebody, raaking a cannon
or a gun or araraunition for kflUng somebody, wfll mrn over and get a job niaking
soraething for better Uving for soraebody. Instead of that cannon or araraunition, he wiU
be raaking a television set or an autoraobfle or a radio or a refrigerator or soraething
for better Uving for people. And the money that we save on the Government's side we
mrn around and hand back to the people for the people to have on their side, and in that
way we want to raake this transition to eliminate as rapidly as possible any resulting
uneraployment and faciUtate the change-over from one job to another as rapidly as we
can.
That is the prograra we have adopted. That is what we are trying to do.
Now, In handing this raoney back to the people, this $7.4 biUlon, we can't hand it aU
back just to one group, because differoit groups of people In Araerica buy different
kinds of things. We have to supply the Incentive for buying aU kinds of things. You can't
have prosperity In Araerica, ladles and gentleraen, just by having stimulation of consumption goods. Now, I wlU prove that to you in just a rainute. AU you have to do -- and
nobody can know it better than you people -- aU you have to do Is think of the railUons
of raen and woraen In Araerica who are working not in consuraption Industries but in
heavy industries. Your president stated today to you that unemployraent was stfll
increasing soraewhat. Where? In the heavy industries. The total volurae of spending in
Araerica has only dropped off about 3 percent; the total volurae of consumer goods In
America has only dropped off about 3 percent. The place where eraployment In Araerica
has dropped the raost and where It stfll is dropping, he said today. Is in the heavy lines.
Now, you can stimulate consuraers tiU the cows corae home and you can buy aU the
consumer goods you can, but you wfll not put these feUows back to work In the heavy lines
of Industry. You have to also stimulate thera.
Now, who Is It that buys these things? When you want production stlraulated, you have to
try to put people In the position to have raore buyers. So what do you do? You stiraulate
the consuraers to help thera to buy consuraer goods. You also stiraulate the Investors,
because it is the mvestors who buy the heavy goods. They are the custoraers; they are the
feUows that put up theraoney.Itis raoney that somebody saved that buys the heavy goods.
That is what raakes the jobs.
So that you have to stiraulate this thing aU along the line. You have to get industry to
buy new raachinery so that the heavy raachuie tool builder can keep his men at work.
You have to get Industry stimulated to get raore power plants buflt so that you have raore
power. You have to stiraulate the expansion of aU business in Araerica: the developraent
of Araerica, the physlcalexpansion, the big things that go on, the buflding, aU those things
that go on In Araerica, In brder to have everybody employed aU along the line, both consuraers and producers of heavy raaterials. And you have td do It for another reason.
Just stop and think about this for a rainute. Nobody In Araerica wants to stand stlU.
People say we want to maintain our scale of Uving. I think that Is baloney. We want to
Increase our scale of Uvmg. I want toUve better; you want to Uve better. You want your
children to Uve better. You want your children to have raore opportunity than you had.
You want this thing toraoveforward. Now, how can you do that? You can only do It in one
sound way, and that Is to be able to produce raore. The only way you can keep having
raore, having the standard of Uving going up, is to produce raore, to produce better,
cheaper things for people to have.
Now, we are having an expanding population in Araerica. We have got a lot of people
coraing along every year in Araerica. It won't do just to have 60 rafllion people working
in Araerica. That is a lot of people working in Araerica today. There are over 60 rallUon
people working In Araerica today. That is raore people than have ever worked in Araerica
in any year of Araerica's history except a year ago today. So this Is the second highest
eraployraent we have ever had in this country that is going on right now, but It won't do
328
1954 REPORT OF THE SECRETARY OF THE TREASURY
to have that five years frora now or three years or sorae other years frora now, because
you are going to haveraorepeople In Araerica, and that 60 mllUon has to go to 65 raUUon
and It has to go to 70 mfllion and keep going up. Now, how can you keep It going up? How
can you have these jobs? It is only by creating jobs, by putting power and tools In the
hands of Americans so they can eam the high wages that we pay, and so that with that
power and with those tools we can produce and corapete with anybody In the world, which
Is where we are today.
We are in corapetition with the world --we haye to be there -- and the only way to
outproduce the world is by raore power, more tools, raore invention, raore organization of things that we have.
Now, that Is our prograra, ladles and gentieraen. That Is why we are handling ourselves the way we are. That is the basis on which we are operating, and I think It Is
sound for Araerica.
Exhibit 59.—Remarks by Secretary of the Treasury
Hxmiphrey following presentation of the Government
Economy Award to former President Hoover, Senator
Byrd, and Secretary Humphrey, New York City, May
25, 1954
The Araerican econoray Is the key economy In the world. It Is vital to the security
and weU-being of our railUons of citizens. And, every other nation is vltaUy affected
by Its strength or weakness.
As^ long as ouf econoray is sound and growing, there wfll be raore and better jobs
for our people and better Uving for aU. And as long as the Araerican econoray is sound,
growing, and prosperous, our alUes are helped. Together, we can not only protect
ourselves against aggression but, frora a position of strength, can work to achieve
real peace In the world.
U our economy should be weak and faltering, so as to cause loss of general confidence,
we would be In danger of having large numbers of people out of work, less production,
and so lowered standards of Uving aU around. But we would not suffer alone. Our
aUies would also suffer. The strength of the whole free world would be threatened.
To raaintain this vital strength of our Nation we raust have econoralcal and efficient
operation of our own Government. For the way In which our Government conducts its
affairs sets the pattern for the Nation's whole econoray.
In 17 of the past 20 years, this Government has engaged In deficit financing, spending
raore than its incorae.
This course for a governraent, as for a famfly, can only lead to eventual disaster.
The resulting depreciation of our currency has already seriously hurt railUons of
Araericans. Continued cheapening of the dollar raight finaUy resuU In the collapse of
our entire econoraic systera. History records that raany great nations have fallen
because of unchecked Inflation leading to econoraic collapse.
This adrainistration, when It tock office in January 1953, pledged its efforts to
instimte sound raoney poUcies. Wepledgedourselves to reduce Governraent expendimres
and to strive toward attaining a balanced budget as rapidly as proper regard for our
security would perrait.
The trend toward continuaUy growing deficit financing, and aU Its evils has been
halted.
The deficit for fiscal 1953 was alraost $ 9i bflUon. The budget this administration
found when It assumed office presented an estiraated deficit of nearly $ 10 bilUon.
But because of overestiraates of revenue, this deficit would acmaUy have been raore
than $11 blUlon.
The Eisenhower adrainistration has cut requested appropriations by raore than
$ 12 bilUon, and expendimres in this fiscal year have been reduced by about $ 7 bilUon.
EXHIBITS
329
This wiU give us an estimated budget deficit in our first fiiU year of operation of less
than $4 bfllion. In the coming year, fiscal 1955, we have fiirther cut planned expendimres by raore than an additional $5 bflUon.
Our plans, of course, can badly ralscarry If adverse serious developraents occur
In the world, resulting in a revision of our fiimre foreign undertakings.
We must and wfll always spend whatever is needed for our security; that Is our
first concern.
But, the worth of our defense must be measured not by its cost but by its wisdora.
And barring raajor unexpected fumre International developraents, we must provide
adequately for our security for the long puU and stfll continue to strive to make further
savings in addition to those already made.
The cornerstone of our whole program is our firm beUef that a sound economy is an
absolute prerequisite to a strong defense over any extended period. It Is the balance
needed for raaxiraura developraent of both that we raust raamtaln.
I ara honored to accept this tribute In behalf of this adrainistration, which Is dedicated
to obtain more econoray and efficiency in governraent. I ara honored to receive this
award with such distinguished and effective workers for economy and efficiency in
governraent as former President Hoover and Senator Byrd, who have raade such
conspicuous contributions to Its accoraplishment over such a long period of years.
The achieveraents for which these awards are presented are vital. They are vital
because they go to the very heart of the raaintenance of a strong and healthy econoray
in this Nation which is not only the foundation for better jobs and better Uving for
aU our people but acmaUy is the free world's first line of defense.
Exhibit 60.--Remarks by Under Secretary of the Treasury
Folsom before the National Association of Manufacturers, New York City, Decembers, 1953
This adrainistration seeks to achieve two raain goals: (1) To bufld up sufficient raiUtary power for our own defense and to help proraote peace In the world; (2) and at the
sarae tirae to strengthen and Improve the productivity of our doraestic economy.
As a part of the prograra for reaching these goals the President in his State ofthe
Union Message described five objectives In the fleld of fiscal and econoraic poUcy. These
objectives were:
First, to reduce the deficits planned by the previous administration and then at the
earUest possible time balance the budget by reducing Federal expendimres to the very
. miniraura within the Uralts of safety;
Second, to work toward the earUest possible reduction of the tax burden, reraove
InequaUtles, slrapUfy the tax systera, and revise the tax laws to reduce the obstacles to
the vigorous growth of our economy;
Third, to manage.properly the burden of our inheritance of debt and obUgations;
Fourth, to check the menace of inflation; and
Fifth, to make constructive plans to encourage Initiative.
What progress has been made toward raeeting these objectives?
I wlU discuss the first two poUcles and show the progress we have raade, and Mr.
Burgess wfll discuss the other three.
The first step toward balancing the budget was to have every departraent and agency
raake treraendous efforts to get the previously planned spending under control. Little
could be done about the expendimres for the fiscal year which ended on June 30,1953,
because they were aU programraed and the year was more than haU gone. The deficit
for that fiscal year mrned out to be $9.4 biUlon.
The budget submitted by the previous administration for the current fiscal year
called for a deficit of $ 9.9 blUlon but because of the overestimate of revenues this
330
1954 REPORT OF THE SECRETARY OF THE TREASURY
anticipated deficit had to be revised to $11.1 bfllion. A thorough review of aU of the
fumre raiUtary and clvlUan programs was undertaken Immediately after the administration assumed office, with a view to reducing this deficit. The reviews have not yet
been finished, but considerable progress has been made. By August of this year expendimres for the current fiscal year had been reduced by $6.5 bllUon from the January
estimate. This, plus the $800 milUon of income gained from the six months' extension
of the excess profits tax has resulted In reducmg the prospective deficit from $ 11.1
biUlon to $ 3.8 bilUon, according to our present estimates.
Whfle, in spite of these large reductions in expendimres, the administration budget
for this year wiU stiU show a deficit, it Is very encouraging that we now estiraate a
deficit In the cash budget of about $ 500 rafllion.
It was because of this reduction in expendimres that justification could be raade for
the reduction In the Individual incorae tax on January 1, 1954, and for elirainating the
excess profits tax at the end of this year.
A raost significant reduction in new authorizations for spending was raade by the
recent session of Congress. This was a $10 bilUon decrease in the authority to place
orders which wfll reduce spending by that araount in fiimre years. The balance of
unUquldated obUgations at the end of this year wfll thus be below the $ 81 bllUon which
the adrainistration faced at the first of this fiscal year. This large balance due on contracts and coraraitraents greatiy Increases the difficulty of reducing expendimres.
Much reraains to be done, but progress has been raade and wfll continue to be raade.
This adrainistration is deterrained to cut out careless' spending. Every activity of
Governraent is being reviewed to see Iflt Is acmaUy necessary. The necessary activities
of Governraent are being reviewed to see that extravagance and waste are eUramated In
the running ofindlspensable agencies, bothclvfllan and raiUtary. We are trying to develop
raore dollar-consciousness on the part of aU Governraent eraployees, both in and out of
uniforra.
The namre of the problem Involved in bringing the budget into balance is shown by the
following suraraary of the budget for the current fiscal year:
Budget--fis cal 1954
[In billion dollars]
Budget receipts
Budget expendimres
National security:
Defense Department
Mumal Security
Atoraic Energy....
Other:
Relatively uncontrollable
Controllable
Total expenditures
Budgetdeficit
Net tmst fimd receipts
Cash deficit
$ 68.3
^,
„.
.,
,
41.7
6.0
2.3
50.0
14.7
7.4
72.1
3.8
^
.5
National security expendimres amount to approximately 70 percent of the budget
which is the major reason why it Is extreraely difficult to balance the budget as rapidly
as we would like. Rapid reductions In security expenditures can be raade only In two
ways: First, by elirainating extravagance, and, second, by getting raore defense for less
raoney. The Defense Departraent Is raaking good progress In both directions.
EXHIBITS
331
Of the $6 bilUon indicated for Mumal Security expendimres, by far the greater proportion Is for mlUtary aid, and the araount of economic aid Is being graduaUy reduced.
The $ 14.7 bilUon of expenditures referred to as relatively uncontroUable Include
interest, veterans benefits, grants to the States, and other charges fixed by law. Congressional approval would be required before these expendimres could be reduced.
Let us now mrn to the budget for the fiscal year 1955 for which aUiiepartraents are
now preparing their estimates of expenditures. No stateraent can be raade about the
expendimres side of the budget untfl the figures have aU been corapiled and presented
to Congress. But we can discuss the revenue side.
Total revenues in the current fiscal year are estimated at $ 68.3 biUlOTi, the highest
ever coUected. The following are the principal sources; Individual incorae taxes,
$34.0 biUlons; corporation Incorae and excess profits taxes, $22.5 blUions; and excise
taxes, $10 bllUons.
It is estiraated that the expiration of the excess profits tax wfll result In a loss of
revenue of $ 1.6 bfllion In the fiscal year of 1955, as corapared with 1954, and that the
Individual Incorae tax reductions wlU reduce revenue by $1.9 blUlon compared with 1954.
U we add these estiraated losses In revenue to the deficit for the current fiscal year,
we would have an estimated deficit for 1955 of about $7.5 bllUon, assuraing the sarae
level of corporation profits and Individual Incorae and the sarae level of expendimres.
Additional tax reductions are scheduled to take place on Aprfl 1,1954; with a reduction In certain excise taxes and reduction in the corporate income tax frora 52 percent
to 47 percent. These reductions would result in an annual loss of $ 3 bilUon but a loss
In fiscal 1955 of $2 bilUon, as corapared with 1954. If these Aprfl 1st reductions should
take effect the total loss of revenue In 1955 would be $5.5 biUion, which added to the
present fiscal year's deficit, would being the total up to over $9 biUlon, assuming no
change in national incorae and no reduction in expendimres. On the cash basis, this
deficit would be about $ 6 bilUon.
As a result of the Intensive effort being made by aU of the departraents. It Is hoped
that sufficient reductions can be raade in expendimres so that the acmal deficit wfll be
reduced considerably below this amount.
Foreseeing the simation which would result next year, the President In May ofthis
year recommended that the Congress rescind the reductions In corporate taxes and excise
taxes scheduled to take effect on Aprfl 1,1954. The reduction in taxes which wfll take
effect in January wlU result in a loss of $5 bilUon In a fiiU year. This Is in accord with
the administration poUcy to pass on In lower taxes the anticipated savings In expendimres as It appears they wfll be raade.
Additional tax reduction Is desired by everyone, audit Is essential to the. continued
growth of our econoray. But taxes can be reduced fiirther only as expenditures are
reduced, and In considering expendimre reduction we raust always consider the raaintenance of a strong defense and essential services of governraent.
Considerable progress has been raade In the tax revision smdy which the President
asked the Treasury to Initiate.
The present system has developed haphazardly during the past 20 years, the rates
being Increased and new taxes added as revenue demands Increased, without any clear
or consistent poUcy. As a result, the systera Is too coraplex, has raany Inequities, and
also handicaps the econoraic growth of the country.
The President, In the State of the Union Message, stated:
"Meanwhile, the tax stmcture as a whole demands review. The Secretary of the
Treasury Is undertaking this study iraraediately. We must develop a systera of taxation
which wlU irapose the least possible obstacle tothe dynaraic growth of the country. This
Includes particularly real opportunity for the growth of sraaU businesses. Many readjus traents In existing taxes wfll be necessary to serve these objectives and also to
reraove existing Inequities. Clarification and slrapUflcatlon in the tax laws as weU as
the regulations wfll be undertaken".
332
1954 REPORT OF THE SECRETARY OF THE TREASURY
Since January, an intensive review and smdy have been made of the whole tax strucmre.
This work has been carried on by the Treasury Analysis Staff under the direction of
Dan Throop Sraith, the Treasury Legal Advisory Staff under the direction of Kenneth W.
GeraralU, and members of the administrative staff of the Internal Revenue Service, aU
working closely with the staff of the Congressional Joint Committee of Internal Revenue
headed by CoUn Stam.
Thus, on each of the raany issues have been brought to bear the experience and knowledge of the economist, the lawyer, the accountant, the tax administrator from Treasury,
and the congressional tax expert. There has been the finest cooperation between these
groups.
FuU advantage has also been taken of the smdies and recoraraendations made during
recent years by raany outside organizations Interested in tax revision. Few subjects
have been smdied as rauch. We have also consulted with raany of these groups and raany
others who are directiy affected by the Inequities and coraplexities ofthe present systera.
We are very rauch pleased with the progress made in this revision smdy. Agreeraents
have been reached by these staff groups on raany revisions of the Internal Revenue Code
which wiU be recoraraended to the congressional coraraittees, who, of course, make
the decisions. Some of these technical revisions would remove existing complexities
and Inequities and would have Uttle effect on revenue. Sorae of the more Important
revisions being considered would, however, result In some loss of revenue. Others wlU
result in a loss in revenue at least during the first few years but It would be expected
that the beneficial effects of these revisions would tend to offset these losses In the
longrun.
The extent to which these revisions canbeadopted, therefore, will depend on the budget situation. We will not be able to afford as much revision as we would all like immediately. In sorae areas we can make a modest start at this time toward these objectives
and In addition, provide for further reductions as rapidly as expendimre reductions,
always consistent with national security, wfll perrait. Thus In tirae we should have a
tax strucmre which wiU be rauch less of a handicap to Incentive and growth than the
present one.
It would not be appropriate to discuss specific proposals at this time but I can say
that those which we wlU recoraraend for adoption wiU be directed priraarfly toward
stimulating productivity and growth and toward reraoving serious inequities.
The aira of the tax policies, as weU as other econoraic policies of the adrainistration.
Is to encourage the continuous growth of the econoray so that with expanding income the
taxes necessary to finance the security and the essential services of the Government
wiU araount to a smaUer proportion of national incorae.
The first big step in iraproving our tax systera wlU be the expiration of the excess
profits tax on Deceraber 31st and the simultaneous reduction of Individual incorae tax
rates.
We have also raade real progress in the field of tax administration. In January the
morale of the Internal Revenue Service was very low; a nuraber of scandals had occurred
in recent years and a coraplete reorganization had just been put into operation. To head
up this Iraportant service the President appointed T.Coleraan Andrews, a trained public
accountant with broad experience In private and public Ufe,
A nuraber of changes have been raade in the organization since last January with a
view to further decentralizing activities so that raost decisions In individual cases can
be raade in the field near the taxpayer. The headquarters staff will be concerned
primarily with developing overall administrative policies and seeing that these policies
are carried out uniformly throughout the service. As a result of these changes, considerable reductions have been made in the overhead costs and these savings are being
directed to collection and enforcement activities.
Great effort is being raade to speed up settleraents in the fleld and to settie raore
cases administratively than in the past. This wfll avoid the more costiy and complex Tax
Court processes. It is the beUef of the Commissioner that the coUection of taxes Is
priraarfly an adrainistrative matter and there Is seldom any excuse for a dispute as to
EXHIBITS
333
facts being permitted to get into court. Results have already become apparent. A higher
percentage of cases are now being settled at the first point of appeal. The appellate
people are making more settlements.
A number of administrative changes.have been made. Rulings requested by the taxpayer are being issued more promptly and more of these rulings are being published
in the Internal Revenue Bulletin. Of particular significance to business people was the
recent policy ruling that once a depreciation rate was agreed to by the agent and the
taxpayer, no change could be made unless the circumstances were greatly altered. The
backlog of unissued regulations dealing with recent legislation has been eliminated.
In another change in administration the Secretary of the Treasury has delegated to
the Comraissioner the appointment of practically all personnel.
The handling of all offers in compromise and closing agreements has also been delegated to the Comraissioner. The result is that he will now have complete authority to
close tax cases.
While progress is being made in tax administration, serious problems still remain.
We were all surprised to learn the extent of the backlog of unaudited returns and pastdue accounts which has been increasing for several years. The organization is making
strenuous efforts to reverse this trend and then to get rid of the backlogs. This effort
should result in less loss of revenue to the Treasury, as well as more prompt determination of the taxpayers' final liabilities.
This is a problem primarily of manpower. The service has been losing too many
good men in recent years and there has been no systematic plan for the recruitment,
development, and advancement of people in the organization. Mr. Andrews is now devoting much of his time to correcting this simation. His plans for next year include a
training course to be conducted by a leading university for young college graduates who
would like to make a career of tax work.
Our objectives are to restore public confidence in the Federal tax administration, by
administering the law as Congress intended, by speeding up the settlement and auditing
of tax remrns, by tightening up enforcement, and by giving the taxpayer a fair break.
We feel we are making good progress toward these objectives.
Thus, on the whole, we are making headway in meeting these difficult budget and tax
problems. We know what our objectives are, but we realize it will be a long and diffi^
cult task. We are confident in time we can reach the goals we have in mind.
Exhibit 61.--Extracts from remarks by Under Secretary
of the Treasury Folsom at the Bicentennial Celebration,
Columbia University, New York City, June 4, 1954
C u r r e n t i s s u e s in f i n a n c i n g i n c o m e s e c u r i t y
Progress of a three-pronged American program to provide income security for
individuals was described to a Columbia University Bicentennial Conference today
by Marion B. Folsom, Under Secretary of the Treasury.
The three elements of the Nation's attack on potential economic adversities were
listed by Mr. Folsom as the efforts of individuals themselves, of eraployers, and
of the Governraent, with individual self-reliance the force of first iraportance.
Praising the results of individual effort, Mr. Folsora said:
"Various indicators suggest that, on the whole, individuals have acquired a greater
raeasure of protection against the loss of earnings than ever before. That protection
takes various forras, including cash and bank deposits, horae ownership, investraent
in securities (both privately issued and governmental), and the ownersTiip of insurance,
property, and productive business enterprises."
339256 O - 55 - 23
3 34
1954 REPORT OF THE SECRETARY OF THE TREASURY
Some of the details given by Mr. Folsom were:
Liquid assets in the hands of individuals at the end of 1953 amounted to about $ 230
billion, an average of over $4,500 for each of approximately 51 raillion farailies and
unattached individuals.
Fifty-four percent of all nonfarra families owned their homes at the beginning of
1953, compared with 41 percent before World War II.
An estimated 5,500,000 persons now own American industrial stocks directly,
with many millions more owning equities indirectly through investment trusts, insurance
companies, and trust funds. Stock ownership is not restricted to high income families;
a recent analysis showed that 74 percent of 200,000 U. S. Steel Corporation shareholders had incorae of less than $10,000 and 56 percent had incorae of less than $5,000.
These groups owned 53 percent and 37 percent of the stock, respectively.
Proposed partial relief frora double taxation of dividend income would stimulate
further investment in equity securities.
Four out of five families now have some life insurance on one or raore of their
merabers, with the grand total of life insurance in force amounting at the end of
1953 to $305 billion, representing protection for 90 million ordinary, industrial or
group policy-holders. The grand total more than doubled after the end of World War
n.
Mr. Folsom's report to the Colurabia Bicentennial Conference IV was raade in a
paper entitled "Current Issues In Financing Income Security." He pointed out that
plans of industry and Government are intended to supplement the efforts of individuals
themselves.
"It is one of our strongest traditions that the individual shall rely first of all
on his own efforts to acquire the protection necessary for those periods when income
may be interrupted or terminated [he said]. In all of oiir plans, both in Government and
in industry, we proceed on the assumption that such efforts on the part of the indiviciual
will be continued, if not intensified. For example, our social security program has
been consciously formulated with a view to ward prov id ing no more than a basic miniraura
of protection so. that it will stiraulate additional, supplementary efforts by the individual.
By providing this rainimura protection, old-age and survivors insurance was designed
to encourage additional efforts to achieve a comfortable retireraent."
Araong employer-sponsored plans to provide additional protection for individual
workers, the thrift and savings type of plan is receiving increasing attention, Mr.
Folsom said. Industrial pension plans remain the most important financially, however.
At the end of 1953 there were an estimated 17,000 pension plans covering some 11
million persons.
Governmental programs, the paper said, deal with four major causes of income
loss: Industrial accidents, old age, death of the family provider, and unemployraent.
"The raultiplicity of financing probleras associated with our public prograras for
the assurance of income maintenance should not obscure the fact that we have a program
that has thus far fiinctioned reraarkably weU [Mr. Folsora suraraed up]. That is due
in part to the resiliency of our economy. It is also due to the fact that our social
security program has been designed to stimulate individual thrift and initiative and
not to replace them. The future achievement of the program will be measured by its
continued stimulus to these ancient v i r m e s . "
Exhibit 62.--Statement by Under Secretary of the Treasury
Folsom before the Senate Committee on Post Office and
Civil Service, June 10, 1954, on group life insurance for
Federal employees
I am glad to have this opportunity to discuss this group life insurance proposal with
you. The purpose of this bill is to offer to Federal employees the same opportunity
EXHIBITS
335
to buy life insurance on a low-cost basis that raany raillions in private industry have
had for a number of years.
The principal reasons why group life insurance has proved to be so popular with
employees in industry are: Its low cost, the sharing of the cost by the employer, and
its availability without physical examination. The insurance offered is term insurance
with no reserve accumulation, which is the lowest cost insurance available. As the
average age of a large group shows little flucmation, the premiura doesn't Increase
frora year to year as it would in case of an individual terra policy. Another factor,
which reduces the cost, is the low adrainistrative expense in handling the insurance
on a large group basis.
The overwhelming raajority of group life insurance plans sirailar to that proposed
in the bill are on a contributory basis, the cost being shared by the eraployees and the
eraployer.
This plan is purely voluntary. In order to save time and expense, the bill provides
that the protection would be automatically granted to each eraployee unless he signed
a paper indicating he did not wish to participate. In this way the employee Is guaranteed
the protection unless he takes a positive action to Indicate to his agency that he does
not want to have deductions taken frora his pay to provide this insurance. He can also
drop out of the plan on any pay date in the future by forraal notice.
Nearly all civiUan eraployees of the three branches of the Governraent, and of the
governraent of the District of Columbia, would be eligible for insurance coverage.
This Includes merabers of Congress, judges, and elected as well as appointed officials
of the executive branch. Noncitizen employees stationed overseas would be excluded.
The Civil Service Coramission could by regulation, after consultation with the agency
head concerned, exclude employees whose coverage would be administratively irapracticable.
The araount of life insurance for which an eraployee would be eUgible would equal
annual corapensation raised to the next higher raultiple of $ 1,000, subject to a raaximum
of $20,000. No choice as to amount would be permitted. Following more recent industriai
practice, the araount of insurance would be reduced by 2 percent per month after
the employee attained age 65, subject to a rainiraura of not less than 25 percent of the
original araount.
In addition. If the employee should die by accidental raeans, double the face amount
of insurance would be payable. Furtherraore, the eraployee would have dismemberment
insurance in accordance with schedules to be laid down by the Commission. Normally
this kind of contract provides that the face araount of the policy is payable for loss
of two merabers (such as two legs or two arras) and one-half the face araount of the
policy is payable for loss of one meraber.
As his share of the cost of all three types of insurance, life, accidental death, and
disraemberment, an araount would be withheld from each salary payraent at a rate
not exceeding 25 cents bi-weekly for each $1,000 of his group life insurance. Thus
the annual cost would be $6.50 for $1,000 of salary or, for exaraple, $26.00 a year
for the $4,000 salaried employee. This represents about the average premiura now
being paid by eraployees in private industry for sirailar insurance. The employing
agency would contribute frora its salary appropriations an araount not exceeding
one-half the amount withheld frora the employee. The experience in industry would
indicate that net costs, over the long run, can be reduced below those figures. It is
necessary, however, that a reserve be built up during the early years for contingencies
and to raeet the fumre Increase in death benefit^, resulting from the coverage of more
people, after retirement.
The contributions by eraployees and eraployers would be deposited to a special fund
in the Treasury, which would be available for preraiura payraents to insurance corapanies
and for expenses of the Civil Service Coraraission In adrainistering the act.
If the eraployee should leave the Federal service because of reduction In force,
resignation, or other reasons, his group insurance is discontinued. However, he does
become entitled to a very valuable privilege, he has the right to purchase from the
336
1954 REPORT OF THE SECRETARY OF THE TREASURY
corapany or corapanies with whom we contract, any policy that the company issues
(with the exception of term insurance), without medical examination, and at the usual
rate charged by the company. I want to stress particularly that It Isn't necessary
that the individual be In good health to obtain this insurance at the usual rates charged
by the insurance company at the time of separation from the Federal service. The
insurance company would be prohibited frora charging an extra preraiura because
the separated employee was a poor insurance risk.
Another most valuable feamre of this bill has to do with people who retire in the
future. This bill provides that if an employee retires on an immediate annuity, regardless of his age at the time of retirement, his insurance is continued without the payment
of any further premiuras on his part whatsoever. The full araount of insurance cpntinues
in effect until he attains the age of 65, at which tirae It starts to decrease as previously
described.
The President's raessage stated that:
"In order to have advantages under this plan that are norraaUy avaiiable to private
employers. It is proposed that the insurance be cooperatively underwritten through the
facilities of a large group of life insurance companies having experience in employee
group life insurance benefits. These corapanies would establish a single adrainistrative
office to assure the utraost econoray in the operation of the plan."
The bill provides that any life insurance corapany with group life insurance in force
on employees of at least 25 different eraployers can participate in the underwriting
of the risk. Well over seventy-five corapanies raeet this test, and nation-wide company
representation in the prograra would thus be possible.
It Is not practical to make direct separate contracts with each such corapany. Araong
other reasons. Federal eraployees are located in all sections of the country, while
many of the life insurance companies are not licensed to transact business in every
State and the District of Columbia. Hence, the approach used in the bill is sirailar to
that often used by the Government, whereby a large contract of purchase is rriade with
one or more prime contractors who in mrn would subcontract to many other concerns.
A similar procedure is followed by a number of other large eraployers who obtain
insurance of various kinds tlirough a reinsurance arrangeraent araong several insurance
corapanies.
-The bill authorizes the Coramission to contract directly with one or raore life
insurance companies which are licensed to transact business in all States and the District
of Colurabia and have in force at least 1 percent of total employee group life insurance.
About eight companies meet this test at present.
The company or companies selected would be required to reinsure portions of the
total insurance with othe/ corapanies electing to participate in the underwriting of
the risk. The reinsurance would be apportioned according to a forraula which would
give the sraaller corapanies a larger share in relation to their total group life insurance
business than the larger corapanies. All corapanies including those which manage the
plan would participate in accordance with the formula.
Accordingly, the underwriting, of the proposed plan would be spread among all the
insurance companies with a reasonable rainiraum of experience in the employees group
life insurance field desiring to participate, rather than be concentrated in one, or
only a few companies.
The premiura rates to be charged by Insurance corapanies would be deterrained by
the Civil Service Comraission on a basis consistent with the lowest rates charged large
eraployers for group life and group accidental death and dlsmeraberment insurance.
Adjustment of rates would be made as experience required. The insurance companies
would be required to report annually to the Civil Service Commission, accounting for
all income and expenses under the policies. Any excess of premiura Incorae over
raortality and other claira charges and expenses would beheld as an inter est-bear Ing
EXHIBITS
337
contingency reserve, for use only to raeet fumre charges under the policy or for
eventual remrn to the Treasury.
It is contemplated that expenses of the plan, including the cost of the administrative
office of the insurance corapanies and the administrative expense and risk charges of
the individual corapanies, will be less than 2 percent of the premiums. There will be
no underwriting commissions included in the expenses. It is interesting to note that
the National Association of Life Underwriters National Council unanimously endorsed
this proposal of group life Insurance for Federal employees despite the fact that no
underwriting commissions would be paid.
Another item in the cost which should be particularly drawn to your attention is t^e
taxes imposed by the States on insurance companies. On the average, the rate is 2
percent of premium income. Since under this bill it is estimated the insurance companies will receive premium income of $70 million, the companies would be taxed
by the States about $1.4 raillion. This araount would be paid to the States by the corapanies in accordance with the geographical distribution of the insured Federal
employees. Thus each State would gain tax income in equitable proportion.
One special problem would have to be resolved if this plan is adopted. Since the
Federal Government has never provided group life insurance for its employees, there
has grown up over the years a nuraber of nonprofit eraployee beneficial associations.
We have record of 17 such associations covering 135,000 employees. They exist simply
for the purpose of providing Federal employees with sraall araounts of group life
insurance. They have no official connection with the Federal Governraent, although
their officers are usually Federal eraployees. The premiuras charged under these
plans are higher than under the proposed group life plan. In sorae cases the current
preraiuras would probably have to be increased in the future to avoid financial difficulties. This would be particularly true if new and younger members are not recruited.
Because of the advantages of lower premiuras of the proposed plan, it raay thus be
difficult for some of these beneficial association plans to continue. The bill accordingly
provides that in fairness to former employees not eligible to participate in the new
program, but whose insurance protection might otherwise be lost because of it, their
present coverage would be continued at present premium rates. To take advantage of
this airrangement, the association would have to terrainate all of its life insurance
agreeraents and mrn over assets sufficient, if possible, to cover the liabilities, involved.
If this: bill passes, there will probably be about 1,750,000 eraployees taking advantage
of the program if the acceptance is as general as in industry. The amount of insurance
issued will be in the neighborhood of 7 billion dollars; and the annual premium collections will be in the neighborhood of 70 raillion dollars* of which about $22,750,000 will
be the Governraent's contribution. These are large araounts, and it would seem desirable to establish an Advisory Council on Group Insurance to advise with the Coraraission
on the prograra. The bill provides for such a Council consisting of the Secretary of the
Treasury as chairman, the Secretary of Labor, and the Director of the Bureau of the
Budget. In addition, the Comraission would report annually to Congress upon the operation of this act.
The bill provides that the insurance and contribution provisions would be effective
when directed by the Civil Service Coramission, following its purchase of the required
policies and the completion of adrainistrative arrangeraents necessary to put the
prograra into effect.
This proposal has been discussed fully with the President and Cabinet raerabers and
has their enthusiastic support.
Early enactraent of the bill is recoraraended so that this protection can be given
families of eraployees as soon as possible. On the average, about 1,000 Federal
employees die each month. If enactraent is delayed until the next session of Congress
raany families will lose the insurance benefits this plan would provide.
338
1954 REPORT OF THE SECRETARY OF THE TREASURY
Exhibit 63.--Extracts from remarks by Under Secretary
of the Treasury Folsom before the National Council for
Community Improvement, Washington, D . C , June 24,
1954
The financial condition of our governments, Federal, State, and local, must be
strengthened.
Forty years ago State and local taxes were about 75 percent of total tax revenues:
now Federal taxes are 75 percent of the total. The total debts of all three levels of
government were $5.5 bilUon 40 years ago, $42 billion 20 years ago, and a r e now
about $296 bililon. The 1953 debt was about 81 percent ofour gross national product
compared to 75 percent in 1933 and 14 percent in 1913.
At the Federal level we have been getting our financial house in better order. The
deficit has been cut frora $9.4 billion last year to an estiraated $3.3 in the fiscal
year which ends next week. Expendimres have been cut $ 7 billion this year with
another $5 billion cut projected for next year. These reductions in expendimres have
made possible tax cuts of $6.0 billion already; and if the revision bill now pending in
Congress is passed, the total tax reduction this year will be $7.4 billion, the greatest
dollar reduction in taxes in one ^year In our country's history. That Includes a $ 1
billion reduction in excise taxes, a field In which the States and municipalities are
particularly Interested. No corresponding reduction has been made in the Federal
grant-in-aid contributions for State and local governraents.
These grants-in-aid araount to about $3 billion a year. This is 4 percent of total
Federal expenditures but, looked at a different way, is the equivalent of 17 percent of
the budget excluding National Security and Interest expendimres.
In recent years. Federal aid to State and local governments has averaged about 11
percent of all State and local revenues, and in the poorer States the aid ha5 amounted
to a much higher percentage. These grant-in-aid prograras have accumulated.for
years. Many originated piecemeal with small, initial appropriations to encourage
particular activities. Twenty-five years ago all Federal aids to State and local governraents totaled well under $ 200 raillion.
This whole question of grants-in-aid is one of the raost iraportant parts of the work
of the Coramission on Intergovernmental Relations. All of us on the Coraraission agree
that it is time to have an objective appraisal ofthis Whole system to see what should
be done with it, to find out, first, whether the fiinctions are really necessary; what
level of governraent can best perforra these functions; and, assuming we must continue
some grant-in-aid programs, what is the best type of formula we can work out to do it
on a basis fair to the States, the local governments, and Federal Government combined.
The Coraraission is developing objective, constructive recoramendations. The fundamental importance of strengthening local governments will receive heavy weight in the
Coraraission's deliberations as It does in the adrainistration's prograra.
Exhibit 64. --Reriiarks by Deputy to the Secretary Burgess
before the National Association of Manufacturers, New
York City, December 3, 1953
Mr. Folsom has outlined the objectives laid down in the fiscal and econoraic field by
President Elsenhower In his State of the Union Message just two weeks after assuming
office eleven months ago. Mr. Folsora also discussed in detail the progress and probleras
in reaching these objectives in the fields of the budget and taxation. I will now talk
briefly about sorae of the progress and probleras. In the related fields of proper manage-
EXHIBITS
339
raent of our public debt, the checking of the menace of inflation, and encourageraent of
the Initiative of our citizens.
The history of this country suggests that In the long run the American people will
insist on the gradual reduction of the $ 275 billion national debt. We have done exactly
that in the past, no raatter how staggering the debt looked. In the raeantirae_we raust live
with the debt and manage it as wisely as possible, so that it will do the least possible
daraage to our national econornic health.
The debt has not been well managed in recent years. That conclusion was reached by
two congressional coraraittees headed by Deraocrats, the Douglas Committee of 1950 and
the Patman Committee of 1952. Under the previous administration the interest rate was
kept low by selling raostly short-terra securities and using the powers of the Federal
Reserve Systera to peg the rate at low levels.
Concerning this policy. Senator Douglas said on February 22, 1951:
"
The costs to the Governraent and to the people have been far greater than the
gains which we have raade from a lower interest rate. The increase In prices since
Korea are probably already adding to the Federal Government costs at the approxiraate
rate of six billion a year.
"The cost of raeeting the Interest on the public debt is now roughly $5,800,000,000.
The entire budget submitted by the President for fiscal year 1952 Is approximately
$71,600,000,000. This means that Government expendimres for purposes otherthan
interest, that is for services and materials, will be approximately $66,000,000,000. It Is
a conservative estiraate that there has been a general increase in prices of coraraodities
and services of roughly 10 percent as a result of the inflation; so that this inflationary
price increase, then is already costing the Governraent at least $6,000,000,000, and
possibly raore. That is in excess of the total araount which the Governraent now pays in
interest.
"Even If interest rates were doubled, which is at best a very remote possibility, the
added cost of meeting the Interest on the public debt would not equal the cost to the
Government because of the rise in prices that has already taken place.
"Furtherraore, our whole society has been greatly dismrbed and convulsed by the
Increase In the cost of living which has taken place; and no.one knows what lies ahead.
The responsibility for all this lies proximately and iraraediately with the Federal
Reserve, but ultiraately and really with theTreasury. I ara not interested in putting anyone In the pillory and holding hira up to public scorn, I ara-not interested in castigating
people or instimtions for the fun of it. I ara vitally concerned, however, as to what will
happen to this country If this policy is not changed
"
As to the right policy to follow, the conclusion reached by Senator Douglas' Coraraittee,
which was in mrn endorsed by Congressraan Patraan's Coraraittee two years later, was
that the Federal Reserve Systera should be freed
"
to restrict credit and raise interest rates for general stabilization purposes
even If the cost should prove to be a significant Increase In service charges on the
Federal debt."
This general conclusion was partially put Into effect by the "accord" reached In the
spring of 1951 between the Treasury and the Federal Reserve System. The step was a
great victory for sound money and resulted from a wave of public opinion In opposition to
the policies which had been followed and which, as Senator Douglas stated, had done such
daraage.
In his State of the Union Message President Eisenhower raade it clear that this adrainistration would put fully into effect sound debt nianagement policies. This raeant
lengthening the raamrlty of the debt, giving it wider distribution, and working In cooperation with the Federal Reserve Systera for the general public welfare.
340
1954 REPORT OF THE SECRETARY OF THE TREASURY
We found a debt one quarter ofwhich was payable within a year, and about three quarters within five years. In 1953 we have had to go to the raarket nine tiraes to refund mamrities or raise new money--this apart from nearly $20 billion of Treasury bills rolling
over every quarter.
This tremendous pressure of short-terra debt has been inflationary; it could equally
well at tiraes be deflationary. It has left no free tiraes for the Federal Reserve to raake
its policies effective. The Treasury has been in constant corapetition with the financing
of private enterprise and States and municipalities, tothe detriment of all. That was the
simation we found.
We have now come through the first year's financing. In five of our nine operations we
have stretched out at least part of the debt into mamrities of from 3-1/2 to 30 years.
We have sold the first long-term fully marketable bond issue since 1945 at a rate which
long-term investment institutions consider fair to the savers they represent. We have
done this in a market free from artificial Federal Reserve price supports.
Early in the year the Reserve Systera allowed the namral forces of a huge demand for
raoney to tighten money rates. This was certainly sound central bank policy at a time of
record production, rising inventories, and dismrbing increases in consumer credit, and
at a time when price and wage controls were being removed. For the Federal Reserve to
have fed raoney into this situation to keep money rates easy would have been the height of
folly. It would have accenmated the boom, encouraged further piling up of inventory,
further use of bank credit. This would have greatly increased the danger of later recession.
I want to make it clear, however, that the decision on money was the responsibility of
the independent Federal Reserve System, just as emphasized by the Douglas Committee.
The Treasury operations in putting out a 3-1/4 percent long-terra bond issue of course
had sorae influence on the money market, but we did not pull that rate out of the air. It
was the going rate in the market as shown by current transactions. It was the lowest rate
at which the Treasury could borrow long-term money unless, indeed, the Reserve System
had poured their money into the market, and resumed the inflation of bank credit.
The Treasury was not pursuing a "hard money" policy, nor indeed was the Federal
Reserve. To the extent that money was a little more difficult to get, it reflected the
working of the law of supply and demand in a free market. It had been so long since the
raoney raarket had been free that it staggered a little under the impact of fresh air.
Even some of our friends who had clamored the loudest for free markets did some complaining. And of course the opponents of freedom and lovers of regimentation were loud
in their wails.
With the mrn of the half year the money simation changed. The business demand for
funds lessened; the threat of inflation receded; there were some evidences of slowing
business activity; some farm incoraes declined. Under these circurastances the Federal
Reserve Systera did not hesitate to raake available the funds which they calculated would
be required for seasonal and other essential requireraents, including the funds the
Treasury needed to meet its cash deficit. Money becarae easier, due, not to any change
in adrainistration policy, but largely to an acmal and prospective change in the demand
for raoney. The announceraent late in August that the Federal budget for the current year
raight be brought into cash balance had an iraportant psychological effect.
The results of the year's efforts towards putting the Government debt in sounder
shape are just a good beginning. We have succeeded in raismg nine billion doUars of new
cash with little if any increase in holdings of Government securities by the coramercial
banking system. Holdings by investors outside of the banks appear to be up over four
billion dollars. The savings bonds program Is doing well under the stiraulus of renewed
sale3 effort, and by the better prospect for sound, honest raoney which retains its buying
power. Individuals have increased their holdings ofmarketable securities this year, too,
for the first tirae in raany years. Meanwhile, savings institutions have halted their long
decline in holdings of Governraents which has characterized recent years, and shortterm Issues have been taken well outside the banks. In suraraary, debt operations have
had no inflationary effect.
EXHIBITS
341
Looking ahead we have about the sarae job to do over again next year. About one
quarter of the debt still mamres within a year. It took us a long time to get into this
mess and it will take a long time to get out.
We shall start the year with the advantage of a more flexible rate strucmre, a raoney
raarket accustomed to more freedom, a better public understanding of what needs to be
done, and with a stronger and more experienced Treasury team.
We shall continue to stress the sale of savings bonds. It is a good thing for the Government and a good thing for the people to have these bonds widely distributed in the hands of
raany millions of people. In this program we need your help, particularly in the payroll
savings plan.
What this administration has done in bringing more freedom to the money market is
consistent with our general objective of encouraging the initiative of free citizens. This
freedora in the raoney raarket has been proraoted along with raore freedom in many
other directions.
Soon after this administration carae into office, needless controls across the board
were lifted. These controls were curbing the initiative and enterprise of American
citizens.
This administration sincerely believes that the average American can do more for
himself, if he is allowed todoso,than the Governraent can do for him. We shall continue
to work toward this objective of encouraging initiative, for we feel that initiative and
enterprise, the opportunity to better oneself by effort, are the traits that have made this
Nation great.
In conclusion, let me emphasize that the technical problems I have mentioned in discussing our handling of the debt are just as closely related to the welfare of the people
of this country as our housing or social security or employraent. Their proper solution
forms the basis for honest money which keeps its value over the years.
And honest money is essential in combatting the evils of inflation and deflation, in
assuring honest pay for an honest day's work, and in encouraging the flow of savings on
which are built our country's future. This is true because out of savings has come our
great productive economy which not only brings better living to all Americans but
actually is our real first line of defense against any would-be aggressor.
We are seeking a very human, an all-important, objective when, through sound management of the natidnal debt, we work for sound, honest money.
Exhibit 65.--Address by Deputy to the Secretary Burgess
at a joint meeting ofthe American Economic Association
and the American Finance Association, Washington,
D. C , December 29, 1953
F E D E R A L R E S E R V E AND T R E A S U R Y R E L A T I O N S
I was very glad to accept this invitation because it gave me a chance to get back among
many old friends and others whose names I have seen signed to interesting articles and
are familiar in the field in which I now work. In fact, I felt a little bit like a boy out of
school to come here and meet with you. I suppose it was that seductive atmosphere that
led me to adopt the title that Ihave for this talk: The relation of the Reserve System and
the Treasury.
A few weeks ago. Emerson Schmidt called my office to find out what the title would be,
and I sent back that title. He called back a few minutes later and asked my secretary if
she was sure that that was the right title, because that was such a highly controversial
subject. I sent back word that that was the right title, and that it was no longer a controversial subject. In fact, if I can give you in tabloid form what I want to say to you, it is
exactly that--that the question of the relation of the Treasury and the Reserve System is
342
1954 REPORT OF THE SECRETARY OF THE TREASURY
not now controversial. We are getting along with amity and with understanding, and there
is no controversy between the Federal Reserve and the Treasury.
Now, why did I want to talk about that? Well, obviously there has been in this country
a considerable misunderstanding about that relationship, and ithas appeared in the literamre and the discussions ofthesubject. Ithas all been luraped together--the hard raoney
policy of the adrainistration, without distinguishing what the functions of the Treasury and
the Reserve Systera were--and more latterly the cynical have said, "Well, they tried the
hard money policy and debt funding and just decided that it was more popular to go back
to the old New Deal inflationary methods, and so the administration has just mrned around
and adopted again the old inflationary policies," there again without any appreciation that
that was lumping together In one ball of wax a group of ideas and a group of descriptions
of action that didn't belong together.
I ara terapted to turn back the pages of history--this will make it very dull for my
newspaper friends because there isn't much news in it--and exercise the prerogatives of
somebody who has been in this field a long tirae and rarable around a little bit in that
history to try to shed light, if lean, on the relationship of Treasury and Reserve System
in the history of the past. And of necessity I have to be a little personal.
The System celebrated fortyyears since the passing of the legislation last summer and
is now celebrating forty years of the life of the Systera. I have been in very close touch
with the Systera, in it or near it, for thirty-four of those forty years.
Carl Snyder, an old associate of raine in the New York Reserve Bank, used to have a
phrase. He said, " T o be interesting what you need is an attitude of cheerful garrulity,"
and I shall try to be cheerful and let you judge whether 1 ara garrulous or not.
The iraportant and interesting thing that I gather from this swing of history is that in
the changes in economic fashions--and, after all, economists have their fashions just as
much as the ladies have in their dresses--it seems to me that a very important thing has
happened: that thewheelhas mrned and we have swung back again to a regard for central
banking policy as a major economic factor.
If you want chapter and verse for that, take the statements of the Douglas and the
Patman committees. I quote frora the first page of both those documents. This was the
Douglas subcommittee in 1950:
"We recommend not only that appropriate vigorous and coordinated monetary, credit,
and fiscal policies be employed to promote the purposes of the Employraent Act, but also
that such policies constitutetheGovernment's primary and principal method of promoting
these purposes."
And the Patman comraittee, chaired by someone who certainly wasn't in the old school
of classical tradition:
"We believe that general raonetary, credit, and fiscal policies should be the Governraent's priraary and principal means of promoting the ends of price stability and highlevel employment, and that whenever possible reliance should be placed on these raeans
in preference to devices such as price, wage, and allocation control and to a lesser
extent selective credit controls, allofwhich involve intervention in particular raarkets."
Now let mevery quickly expose to you what seem to me the broad periods in this fortyyear history. This isn't a course on the Federal Reserve System, but I think perhaps the
outline is as many of you give it.
T h e d i s c o v e r y of c e n t r a l b a n k i n g
The first episode, perhaps, was the discovery of central banking in this country. That
dates from the nineties, after the panic of 1893 and 1896, and goes through the period of
the report of the Monetary Commission, the Aldrich Coraraission, and up through to the
establishraent of the Federal Reserve Act. And for a series of years we had a smdy and
exposure of the whole history of central banking as it appeared in the world. "Lombard
EXHIBITS
343
Street" became a familiar document in our schools and colleges. The feeling that a bank
could exist that had a great public interest became imbedded in our philosophy. As a
result the Federal Reserye System was established. I think, looking back at it, we would
say it was a job on the whole extremely well done.
There have been a great many changes in the Systera, but the outlines of It and the
general philosophy of it have reraained through these forty years with relatively little
raajor change. Perhaps the principal change has been one of eraphasis. All of that early
literamre focused on how you get an instruraent to deal with panics; how, when the panic
has arrived, you deal with it. Now we go back of that. The fraraework constructed at that
tirae was able to carry the broader load with some rather modest changes.
Experimentation and testing
Then we go through a period of the heyday of central banking--from the establishment
of the act through until, say 1933, when we had a period of experimentation, a period of
testing. In World War I, the Systera deraonstrated its utility as a raechanisra for financing
the war, for providing the funds that were needed. We went through that brief panic of
1920, with its tremendous drop in prices, and we learned something from it. We went
again into the period of the twenties and the discovery of the major aspects of Federal
Reserve policy. I think even today the 1923 annual report of the Reserve System is a
standard document that can apply today to raost of the things we do. We had the period of
Ben Strong and his policies, which I reraeraber so vividly, where he discovered the
raeaning of open-raarket operations and wrote it down and raade it a part of the literature
of the tirae; it hadn't existed before.
Then we fought through 1928 and 1933 the losing battle against the forces of deflation.
All of you, I ara sure, in courses that you raay give or things you raay write, have your
own explanations for that. But there it was as part of that period of testing and experiraent.
V a l l e y of t h e s h a d o w
I would like to suggest that the next period of the history of the Systera and of the
relationship of the Treasury and the Systera could be called the valley of the shadow, and
that period dates frora 1933 to 1951. Itis a period when central banking lost its standing
in this country to a considerable extent, and abroad as well.
Swaraped in the wave of the great depression, for which central banking had to take ita
due share of blarae, we mrned to the new philosophies of Keynes, of consumer purchasing
power, of the various kinds of controls that you raight exercise. We tried to revise our
own systera here in the banking acts of 1933 and 1935. Formnately, we didn't do too much
daraage, nor in the main very rauch good, although certain feamres were added that were
helpful.
I suppose that period carae to its apex in the nationalization of central banks. During
that period, the records of the Patraan coraraittee showed that In the thirties about four
of the banks were nationalized and after that, in the forties, there were ten of the central
banks that were nationalized in terras of mrning the stock ownership over to the governraent or raaking one or another raove to put the control raore directly under the governraent. Of course, the notable ones were the nationalization of the Bank of England and the
Bank of France, where the Bank of England w^s under the law required to take orders
frora the Chancellor of the Exchequer after consultation with the Governor of the Bank-a curious phrase. Incidentally, that nationalization law was printed on just a single page,
but it mrned the bank from a private bank into a public bank in theory, although in practice the effect has been minor.
In France, of course, the head of the central bank and the Deputy Governor had been
appointed by the governraent for a long tirae before. But the share ownership had been in
private hands; that was changed over. The council was changed and was appointed by the
governraent rather than by the private shareowners.
I reraeraber having lunch at the Bank of France. It was a rather dangerous experience;
I was always sick after having lunch at the Bank of France because the food was so good.
344
1954 REPORT OF THE SECRETARY OF THE TREASURY
But I remeraber having lunch at the Bank of France in 1928 or 1929; the executive committee of the council was present with some of the large shareholders, and I found thera
seriously considering whether the franc shouldn't eventually go back to its 19 cents instead of the 4 cents that it was at that time. And I raade a little note at that tirae that that
kind of thinking was going to callfor sorae sort of action sorae day. Of course, the nationalization of the bank was a perfectly logical step.
Then we had inthis country the long battle--and I think indeed it was a battle--for survival of the Federal Reserve System with the forces of the Governraent. I reraeraber so
well the day in 1933 or early 1934 when the lawyers from the Attorney General's office
came into the New York Federal Reserve Bank to arrange the mrning over of the gold
from the Bank to the Federal Treasury, and the gentleraen who were assigned tharpurpose certainly didn't believe in an independent central bank or a bank having any slightest
shred of independence. And that period of eighteen years, frora 1933 to 1951, was a
struggle for survival of our Federal Reserve System in the face of a tremendous desire
on the part of a great many people to bring the Federal Reserve System to heel. And it is
greatly to the credit of the people in the Reserve System that they were able to preserve
their very life through that period.
R e v i v a l of m o n e t a r y p o l i c y
The period from 1951 on, I would say, could be designated the period of revival of
central banking policy, of monetary policy, not only here but throughout the world. Of
course, the most dramatic evidence of that was to be found in the European countries.
It stands out very vividly to me because I visited Gerraany in 1946 and again in 1950.
The thing that happened between those dates was the revaluation of the currency and the
reestablishment of theGermancurrency systera after the Dodge Plan, devised by our own
Joe Dodge, now Director of the Budget. There you saw an econoray mrning from night to
day in the space of a few raonths when a sound raonetary and fiscal policy was adopted.
The sarae thing happened in Belgiura; it happened in Italy; it happened in soraewhat less
degree in England. But you have had in these past years a deraonstration of what sound
raoney can do for a country that has hardly been equaled in the history of econoraies.
That process has brought out certain of the virmes of central banking as alraost never
before. One thing that has irapressed rae enorraously has been the continuity of central
bankers. The Bank of England in ray generation has had three governors, Norraan, Catto,
and Cobbold. While governraents carae and went, those three governors ran the bank;
while governments came and went, those raen stayed in power.
The same was true to a degree in the Bank of France. There you had the naraes of
Moreau, who put the pressure on Poincare to stabilize the franc in 1926; Moret; his successor, Monnick; Bauragartner--a relatively few naraes, while if you tried to narae the
naraes of the preraiers of France in that period it would be a very long list.
The continuity of those men and their ability, with government after government, to
insist quietly and persistently on sound monetary policies was a demonstration of one of
the major reasons why central banking can be the factor in a country's econoray suggested
by those quotations frora the Douglas and the Patman reports.
Of course, in this country, in the Federal Reserve Bank of New York you have had three
governors over this entire forty years of the history of that bank, Strong, Harrison, and
Sproul. In the Federal Reserve Board you have had a good many raore leaders but a very
substantial araount of continuity, carrying on from areas of one political complexion to
another an emphasis on the mechanisras of sound finance.
Here in this country we have had in these years soraething of a miracle. You had a
period in which the Federal Reserve System was under the dominance of the Treasury and
in a battle for its independence of existence. I heard it. said so raany tiraes when we discussed that battle over that period that in a battle between the central bank and the
Treasury, the central bank never wins. In this case the Treasury had the backing of the
President of the United States, but the central bank won the battle.
Through the accord in 1951, the Systera again regained its right to operate in the raoney
raarkets in the way that was for the welfare of the people Instead of acting to peg the
EXHIBITS
345
prices of Governraent securities to enable the Government to borrow cheaply. It is one of
the dramatic instances in history where the central bank regained the right to exercise its
essential powers.
That battle was won partly due to what was perhaps in part accident but is, I think, a
milestone perhaps in the history of finance in this country, and that was the fact of the
Douglas and the Patman reports. You had two subcommittees of the Congress who conducted studies in the area ofraoney and whose reports, gathering in the testimony of many
of you here in this audience today, built up a volume on this whole subject of money that
is most impressive. And the reports as they came out educated public opinion, and in my
judgment, built up a background against which a central bank could win its battle with the
Treasury and with the administration.
Well, now, I present those four stages ofthe Federal Reserve System just as a method
of arranging that history as it sheds lighten what we have today. What are the conclusions
that we can learn as to the principles of monetary policy as they face us today?
P r i n c i p l e s of m o n e t a r y p o l i c y
The first principle, it seems to me, is that monetary policies are effective; that those
quotations that I have read from the Patman and the Douglas reports are bolstered adequately by the facts.
Now, I believe also that ifwe looked back over that long period of history--and I am not
going to introduce the evidence today--what we would see would be that the effectiveness
of a central bank monetary policy depends on its action on the upside of a business cycle
rauch more than it does on the downside.
The word "inflation", if you go to Europe, raeans an entirely different thing from what
it means in this country. We don't know what inflation means. Inflation there has a connotation of economic horror that we know nothing about. And we have seen in these recent
years the effectiveness of monetary and fiscal policy in dealing with inflation on the upside of that swing.
Now, I think the Douglas committee report recognized that in its language pretty fully.
I just call your attention to a quotation from that report:
"But we believe that the advantages of avoid ing inflation are so great, that a restrictive
monetary policy can contribute so rauch to this end, that the freedora of the Federal
Reserve to restrict credit and raise interest rates for general stabilization purposes
should be restored even if the cost should be a significant increase^ in service charges on
the Federal debt and the greater inconvenience to the Treasury in its sale of securities
for new financing and refunding purposes."
Now, of course, that eraphasis on avoiding the excesses on the upswing of inflation
sheds a little light on the interpretation of the Full Eraployraent Act as an objective for
econoraic policy. The danger of the interpretation of that act is that you should interpret
it that every Governraent agency should always be exerting its efforts to push things up;
and what I ara talking about is monetary policy exerting its efforts to keep things from
going too fast, because when they have gone too fast, the downswing becoraes raore
serious.
The eraphasis there, then, is on living properly and living soundly so that you don't get
sick. The eraphasis is on not going on an eight-day jag, rather than on thinking about how
you can cure yourself after you get through the jag.
The third point that I would eraphasize is that the Federal Reserve-Treasury relationship rests on rautual respect and understanding and offers no inherent difficulties.
I believe that Senator Douglas'suggestion that good fences raake good neighbors is a good
principle that can be followed without too serious difficulties.
Incidentally, that is very sirailar to what was cited as an objective in the Republican
Party platform: "A Federal Reserve Systera, exercising its functions in raoney and
credit, without pressure for political purposes frora the Treasury or the White House."
346
1954 REPORT OF THE SECRETARY OF THE TREASURY
There were in those two reports a nuraber of suggestions of raechanisras for trying to
Iraprove the relationship between the Treasury and the Reserve System. One was the
proposal for a credit or monetary council that would bring together the chairman of the
Board of Governors of the Federal Reserve, the Secretary of the Treasury, the head of
the RFC, the head of the Farm Credit Administration, and some of the others, for discussion of monetary and credit problems. Now, the difficulty with that, of course, is that
it is the old organization problem. If you don't like what is going on in departments A and
B, just put another department on top of them instead of trying to cure what is wrong
with the relationship of the two departraents. If the Secretary of the Treasury and the
head of the Federal Reserve Board don't get along together, you don't help that by calling
both together and putting thera in a raeeting with a lot of other fellows.
There is, of course, a good deal to be said for bringing under a general credit policy
sorae of the other agencies of Government, such as the Farm Credit Administration, the
Housing Administration, the Export-Import Bank, the RFC, and so forth. But that Is an
entirely different question frora raonetary policy.
Now, the other suggestion raade In these reports for dealing with this simation was
that the Congress should give the Reserve System a more clear bill of particulars and
define its relationship with the Treasury. I must say that is a suggestion for which one
has to have a good deal of sympathy because, as you read the Federal Reserve Act, the
statement of objectives is not too clear; it takes a good deal of interpretation, But the
Congress has had a couple of whacks at trying to word that. The Board has tried to word
it two or three tiraes without succeeding. You bog down in a welter of meanings of words.
You all know the difficulty of trying to agree on a statement of that sort. If you comproraise and try to get it, the result is you usually find it doesn't apply when the next simation arises. So I ara Inclined to agree with Eraanuel Goldenweiser's stateraent before the
Patraan coraraittee that you don't need it; if you conduct your business as well as you know
how, you don't need this extra bill of particulars.
The 1953 experience
Those are the three principles that, it seeras to rae, arise frora our experience with
the Systera, and I would like to suggest that our experience in 1953 in the operations of
the Treasury and the Reserve Systera illustrate exactly the principles that I have cited,
and illustrate thera in an alraost classic way.
In the first half of the year, there was a bulge in eraployraent, in production, in alraost
all of the econoraic Indices. I asked our people to make up a list of the highs that were
raade in the first^alf year.
Production was at an alltime record. The Index of Industrial production reached a
peak of 137 (on the new 1947-49 base) in both May and July 1953, which compares with an
average of 124 for calendar 1952. (October index is 132.)
Production was exceeding sales, causing a threatening accumulation of Inventories In
the hands ofboth manufacmrers and distributors. Total business inventories rose steadily
until the end of September, increasing frora $74.8 billion at the end of the previous year
to $79.4 billion in Septeraber. (October inventories = $79.0 billion.)
The high defense expendimres, added to record plant and equipraent expendimres and
record consuraer expenditures, put serious inflationary strains on the econoray.
A continued rise in the raoney supply, after seasonal allowances, together with the
prospect of a large Federal deficit in fiscal 1954, created inflationary pressures in the
raonetary and fiscal area. The privately held raoney supply at the end of April stood at
$192.2 billion, a new record for the month and $8.4 bililon higher than a year earlier.
(In October it was up $7.1 billion frora a year earlier.)
Civilian eraployraent was at an alltirae record. The pressure on the labor supply
reduced uneraployment to the lowest levels since World War II, and forced large expenditures for overtime employment.
Personal Incorae rose steadily to successive new records. The peak was reached in
July at an annual rate of $287.5 bililon, which corapares with a figure of $269.7 bililon
for the previous calendar year.
EXHIBITS
347
On top of the high personal income, which reached record levels both before and after
taxes, consuraer purchasingpower in ear l y l 953 was being augraented by a rapid increase
in consuraer credit. Total consuraer credit outstanding rose by raore than $1-1/2 billion
during the first half of the year, when a seasonal reduction is norraaUy to be expected.
It continued to rise In ^succeeding raonths, but at a dlralnlshing rate.
Mortgage lending was also expanding. Nonfarra raortgage recordings (of $20,000 or
less) in the first half of 1953 totaled raore than $9-1/2 billion, or 13 percent above those
in the sarae period of the previous year.
Business loans continued very high In the first part of 1953, and until the beginning of
May they showed noticeably less than the usual reduction from the Deceraber seasonal
peak. Total loans of aU coramercial banks increased $1.0 billion frora the end of
Deceraber to the end of March, as corapared with an increase of only $0.1 billion in the
same period of the previous year.
Expenditures for new plant and equipment reached a new alltirae record in the first
quarter of 1953, and continued to rise sharply in the two following quarters as previously
planned expenditures were carried out. Expendimres in the third quarter were at an
annual rate of $28.8 billion, incoraparisonwlth$27.8 bililon for the 1952 calendar year.
In the financing of this great volurae of new capital expendimres, total new security
issues for new capital (including both corporate and raunicipal) araounted to raore than
$7 bililon In the first half of 1953, an alltirae record, exceeding the year-earlier figure
by 4 percent.
Total new construction reached a record volurae in the first half of 1953, and the halfyear total was 8 percent higher than in the sarae period of the previous year.
Reflecting the inflationary pressures in the econoray during the first half of 1953,
prices of coraraodities other than farra products and foods rose gradually but steadily
until raidsuramer. Despite weakness in farm products and certain other materials due to
excessive production, the broad all-comraodlty Index rose to the yearns peak of 111.0 in
Septeraber, frora 109.6 in the previous Deceraber.
In other words, what you had was the typical period of a business boom; and typically
that called for a policy of restraint on the part of the central bank. It called for a policy
of cooperation of the Treasury with the central bank in this policy of restraint, and that
is exactly what was done.
In the second half year, the inflationary threat diminished as sorae of the Indexes
turned down. That was a situation that called classically for an easing of the pressures
on raoney, and that again Is exactly what was done.
So, gentleraen, I conclude by saying what I said at the start. There is no controversy
between the Treasury and the Reserve System. There need be no controversy. We are
both trying to do the sarae job of adapting our policies to the econoraic welfare of the
country, and not to shorter airas.
Exhibit 66.--Statementby Deputy to the Secretary Burgess
before the Subcommittee on Federal Reserve Matters of
the Senate Committee on Banking and Currency, May
13, 1954, on extending the authority of the Federal Reserve Banks to purchase securities directly from the
Treasury
I appreciate the opportunity to present the Treasury's views on S. 3206.
The enactment of this bill was requested by Secretary of the Treasury Humphrey
in his letter to the President of the Senate, dated March 9, 1954. It has been endorsed
by the Board of Governors of the Federal Reserve Systera.
The purpose of the bill is to extend for two raore years the authority of the Federal
Reserve Banks to purchase securities directly frora the Treasury In an araount not to
exceed $ 5 billion outstanding at any one time.
348
1954 REPORT OF THE SECRETARY OF THE TREASURY
Under the original Federal Reserve Act, the Federal Reserve Banks had authority
to purchase Governraent obUgations, either In the raarket or directly frora the Treasury.
The Banking Act of 1935 limited this authority, however, to open market transactions.
In 1942, the Second War Powers Act restored the authority of the Federal Reserve
Banks to make purchases directly from the Treasury, up to $5 billion outstanding at
any one time. This authority, which was Initially granted only through Deceraber 31,
1944, was subsequently extended by the Congress frora tirae to tirae. The raost recent
extension was for two years and will expire on June 30, 1954, unless it is extended
further by the Congress.
This direct purchase authority perraits the Treasury, in cooperation with the Federal
Reserve, to sraooth out the effect on the econoray of short-mn peaks in its cash receipts
and disburseraents, especially at quarterly tax dates. These short-run peaks involve
large figures. Total Treasury deposits in the raonth of March 1954, for exaraple, exceeded $ 13 bililon, of which $ 10 billion were concentrated In the last half of the raonth.
Sound financial manageraent requires that the dismrbing effect of such a treraendous
flow of funds be held to a rainiraura. This direct borrowing authority is one of the tools
that the Treasury and the Federal Reserve use for this purpose.
The authority is used only occasionally and only for short periods. On March 15, 1954,
for exaraple, the Treasury borrowed $134 raillion frora the Federal Reserve and the
next day an additional $56 raillion. All of this was paid back on March 17 as tax receipts
becarae available. The Treasury has never used this borrowing authority on other than
a teraporary basis and has no intention of doing so. There has been only one day since
the end of World War II when the araount of such borrowing outstanding has exceeded
$ 1 billion, and typically the borrowing has been repaid within two weeks.
If the Treasury did not have this authority it would have to raaintain larger cash
balances in order to raeet its disburseraent requireraent^ just before heavy tax receipts.
The direct borrowing authority is a useful raechanisra in handling Treasury funds
econoraically and with least econoraic dismrbance. In addition, it provides flexibility
to meet possible emergency simations.
Exhibit 67.--Extract from an address by Deputy to the
Secretary Burgess before the Graduate School of Banking, American Bankers Association, New Brunswick,
N. J . , June 18, 1954
A year ago when I spoke here, it was only possible to tell you the aims and purposes
of the Eisenhower Administration.
Today, we can begin to speak of achieveraent.
A legislative prograra has been presented to the Congress which was as thoroughly
prepared as any prograra of legislation ever presented. This prograra Is conservative
In econoraic principles, liberal in huraan objectives.
Much of the prograra Is well on its way through the Congress. Sorae of it is In
controversy and needs the thoughtful attention of people like you.
In finance, we can report sorae success. The airas were siraple: Econoray, lower
taxes, honest raoney. These aims had to be pursued In an atraosphere of International
tension, which required the raaintenance and strengthening of the military power of
this country and our allies. Nevertheless, progress has been raade.
Econoray: We have cut spending this fiscal year, which ends in a few days, by seven
billion dollars frora the Tmman budget. Next fiscal year, we have budgeted for a
reduction of another five bllUon dollars. The total decrease in spending is thus twelve
billion dollars. This is about as fast as spending can be cut while still raaintaining
adequate defense and not giving the econoray too severe a jolt. Contrary to sorae reports,
there is no present plan for changing this budget prograra.
EXHIBITS
349
Taxes: Cuts in taxes, effective last January 1, totaled five billion dollars a year.
The excise tax cut on April 1 was about one billion dollars. The tax reforra bill now
before Congress, if passed, will reduce taxes another 1.4 billion dollars. These cuts
add up to 7.4 billion dollars, the largest dollar tax reduction ever made In a single
year.
About two-thirds of these cuts go to individuals. The rest relieves business and
encourages it to raove ahead, to eraploy raore people.
Honest raoney: For a year and a half, the price level has been relatively stable.
Inflation was stopped; the ensuing readjustraent was raild and gives evidence of leveling
off.
The Treasury and the Federal Reserve System have used their powers vigorously
toward econoraic stability and growth. Cutting expenses and reducing taxes were for
that purpose. The arrangement of types of Treasury financing has been adjusted to
this end.
The Federal Reserve System has been freed to exercise its powers through the
discount rate and open-market operations and changes in reserve requirements to
check the inflationary tendency in early 1953 and, when the mrn came, to encourage
the freer use of money and check recession. It has been a flexible policy.
In their efforts to encourage stability and growth, the Treasury and the Reserve
System have been following precisely the principles laid down in 1950 by the Douglas
Subcoraraittee of the Joint Coraraittee on the Economic Report, as follows:
"We recoraraend not only that appropriate, vigorous, and coordinated monetary,
credit, and fiscal policies be employed to promote the purposes of the Employment
Act, but also that such policies constimte the Government's primary and principal
method of proraoting those purposes."
It should be noted also that the Patman subcoramittee of the same general committee
endorsed in 1952 the foregoing statement by the Douglas subcommittee.
The great, outstanding purpose of the program of this administration is more freedom
and the reraoval of handicaps to freedora; freedora for the people of this country to
raake long-term, dynamic progress; freedom to make more and better jobs and to
produce higher standards of living.
Aside from war, what are the econoraic eneraies of human progress? One such
enemy is too much Government: too raany controls, too high taxes, and too rauch
Governraent spending. It is the people of the country who raake prosperity, with their
effort, their initiative, and their genius. This Government's program for economy,
lower taxes, reducing controls, and freer markets is a program to release more of
the energies of the American people to work for their own welfare.
Another great enemy of human welfare has been inflation or deflation. Inflation robs
the saver for the benefit of the speculator and too often paves the way for deflation.
This country has had bitter experiences with both inflation and deflation. The inflation
of World War I was followed by the deflation of 1921. The inflation of the late '20's was
followed by the deflation of the 'SO's. The inflation of World War II and after, followed
by the inflation of Korea, had cut the buying power of the dollar nearly in half and, if
continued, would have run the risk of a violent deflation.
Experience both here and abroad has demonstrated sorae of the principles of avoiding
inflation and deflation and curbing their destmotive power over human welfare. A
major cause of these raoveraents has been unwise Governraent policies. A major cure
is found in sound fiscal and raonetary policies. This is our objective, to avoid the
excesses of inflation and deflation and other handicaps to the prosperity and economic
growth of the country.
3 3 9 2 5 6 O - 55 - 24
350
1954 REPORT OF THE SECRETARY OF THE TREASURY
ORGANIZATION AND PROCEDURE
Exhibit 68. —Treasury Department orders relating to
organization and procedure
NO. 81, REVISION NO. 2, OCTOBER 30, 1953, RELATING TO THE COMMITTEE ON
PRINTING AND PUBLICATION
By virme of the authority vested In me as Secretary of the Treasury by Section 161
of the Revised Stamtes, Executive Order 397 of January 20, 1906, and aU other provisions of law, there is hereby estabUshed in the Treasury Departraent a Coraraittee on
Printing and PubUcation.
In the interest of further economy and efficiency, the Committee shaU exercise
general supervision over aU printing and binding originating in and procured for use by
the Treasury Departraent. The Committee shaU make recoraraendations regarding
regulations governing or affecting the general printing policies of the Departraent,
and such regulations shaU be subject to the approval of the Administrative Assistant
Secretary.
The Committee shaU consist of three members. The raerabers and their alternates
shaU be appointed by the Adrainistrative Assistant Secretary. In addition, the Adrainistrative Assistant Secretary shaU designate the Chairraan of the Coraraittee. The alternate ' to the chairraan shaU be authorized to serve as chairraan in the absence of the
chairraan.
This order supersedes Treasury Departraent Order No. 81, dated February 14, 1947;
and Treasury Departraent Order No. 81 (Revised), dated February 2.1950.
M. B. Folsora,
Acting Secretary of the Treasury.
NO. 82, REVISION AND AMENDMENTS 1 AND 2, RULES TO GOVERN THE
PERSONNEL SECURITY PROGRAM
No. 82, Revised Septeraber 22, 1953^
Pursuant to the authority contained In the act of August 26, 1950 (64 Stat. 476, c.
803); Executive Order No. 10450, approved Aprfl 27, 1953 (18 FJ^. 2489); and Reorganization Plan No. 26 of 1950 (15 F J i , 4935, 64 Stat. 1280), the following rules relating
to the security prograra of the Department are hereby prescribed:
Section 1. Definitions. - - The foUowing terms shaU have the meanings specified:
(a) "Department" raeans the Departraent of the Treasury.
(b) "Secretary" raeans the Secretary of the Treasury or his designee.
(c) "Security Officer" raeans the person designated as Personnel Security Officer of
the Departraent, or the person designated as his alternate, by the Secretary.
(d) "Legal Officer" means the person designated as Legal Officer, or the person
designated as his alternate, by the General Counsel of the Department.
(e) "Head of the bureau" raeans the head of the bureau. Independent office, or
Independent division of the Departraent in which the eraployee is eraployed.
(0 "Eraployee" means a clvlUan officer or employee of the Department.
(g) "National security" raeans the protection and preservation of the mlUtary,
economic, and productive strength of the United States, Including the security of the
Government In domestic and foreign affairs, against or from espionage, sabotage, and
subversion, and any and aU other IUegal acts designed to weaken or destroy the United
States.
IThis order supersedes Order No. 82, Revised August 11, 1952.
EXHIBITS
351
(h) "Suspension" raeans the teraporary reraoval of an eraployee, without pay, in the
interest of the national security, pending final deterraination of his case under the provisions of this order.
(i) "Reasslgnraent" means the teraporary alteration in, or liraitation of, the duties
of an employee. In the Interest of the national "security. In Ueu of suspension, pending
final determination of his case under the provisions of this order.
(j) "Sensitive position" means any position In the Departraent the occupant of which
raay have access to security Information or material classified as " s e c r e t " or "top
secret."
Sec. 2„ PoUcy.—It shaU be the policy of the Departraent, based on the act of August
26, 1950, and Executive Order No. 10450, to eraploy and retain in eraployraent only
those persons whose eraployraent or retention in eraployraent is found to be clearly consistent with the interests of the national security. However, the provisions of this order
shaU not be utilized to the exclusion of norraal personnel procedures for the selection
and retention of eraployees.
Section 3. Security standards.—(a) No person shaU be eraployed, or retained as an
eraployee, in the Departraent unless the eraployraent of such person is clearly consistent with the Interests of the national security.
(b) Inforraation regarding an appUcant for employraent, or an eraployee. In the
Departraent which raay preclude a finding that his eraployraent or retention in eraployraent is clearly consistent with the Interests of the national security shaU relate, but
shaU not be Umited, to the foUowing:
(1) Depending on the relation of the Governraent eraployraent to the national
security:
(I) Any behavior, activities, or associations which tend to show that the Individual is not reliable or tmstworthy.
(II) Any deUberate misrepresentations, falsifications,or omissions of material
facts.
(lii) Any criminal, infamous, dishonest, immoral, or notoriously disgraceful
conduct, habimal use of intoxicants to excess, drug addiction, or sexual perversion.
(Iv) An adjudication of insanity, or treatment for serious mental or neurological
disorder without satisfactory evidence of cure.
(v) Any facts which furnish reason to beUeve that the Individual raay be subjected to coercion, influence, or pressure which raay cause hira to act contrary to the
best interests of the national security.
(2) Coraraission of any act of sabotage, espionage, treason, or sedition, or atterapts
thereat or preparation therefor, or conspiring wltii, or aiding or abetting, another to
comrait or atterapt to coramlt any act of sabotage, espionage, treason, or sedition.
(3) EstabUshing or continuing a syrapathetic association with a saboteur, spy,
traitor, seditionist, anarchist, or revolutionist, or with an espionage or other secret
agent or representative of a foireign nation, or any representative of a foreign nation
whose Interests raay be Inlralcal to the Interests of the United States, or with any
person who advocates the use of force or violence to overthrow the Government of the
United States or the alteration of the form of governraent of the United States by unconstlmtlonal raeans.
(4) Advocacy of use of force or violence to overthrow the Governraent of the
United States, or of the alteration of the form of governraent of the United States by
unconstimtional means.
(5) Merabership in, or affiliation or syrapathetic association with, any foreign or
doraestic organization, association, raoveraent, group, or combination of persons which
is totaUtarian, Fascist. Comraunist, or subversive, or which has adopted, or shows, a
policy of advocating or approving the coraraission of acts of force or violence to deny
other persons their rights under the Constimtion of the United States by unconstimtional means.
(6) Intentional, unauthorized disclosure to any person of security information, or
willful violation or disregard of security regulations.
352
1954 REPORT OF THE SECRETARY OF THE TREASURY
(7) Performing or attempting to perform his duties, or otherwise acting, so as to
serve the Interests of another government in preference to the interests of the United
States.
Section 4. Security investigations.--(a) Security mvestigations conducted pursuant to
this order shaU be designed to develop inforraation as to whether eraployment or retention in eraployraent by the Departraent of the person being investigated is clearly
consistent with the interests of the national security. In developing Investigations, special significance shaU be placed on the factors enuraerated in section 3 of this order as
they reflect favorably or unfavorably on the individual under Investigation.
(b) Every appointment made within the Department shaU be raade subject to investigation. The scope of the investigation shaU be deterrained In the first instance according
to the degree of adverse effect the occupant of the position sought to be filled could
bring about, by vlrme of the namre of the position, on the national security, but in no
event shaU the investigation Include less than a national agency check (including a
check of the fingerprint files of the Federal Bureau of Investigation) and written inquiries to appropriate local law-enforcement agencies, forraer eraployers and supervisors, references, and schools and colleges attended bythe person under investigation:
Provided, That to the extent authorized by the Civfl Service Commission a less Investigation raay suffice with respect to per-dlem, interralttent, teraporary, or seasonal
eraployees, or aUens eraployed outside the United States. Should inforraation develop at
any stage of Investigation Indicating that the eraployraent of any such person may not be
clearly consistent with the Interests of the national security, there shall be conducted
with respect to such person a fuU fleld Investigation, or such less Investigation as shaU
be sufficient to enable the Secretary to determine whether retention of such person Is
clearly consistent with the Interests of the national security.
(c) No sensitive position In the Departraent shaU be fflled or occupied by any person
with respect to whom a fuU fleld investigation has not been conducted: Provided, That a
person occupying a sensitive position at the time it is designated as such raay continue
to occupy such position pending the corapletion of a fuU fleld Investigation, subject to
the other provisions of this order: And provided further, that In case of eraergency a
sensitive position may be fiUed for a limited period of time by a person with respect
to whom a fuU fleld preappointment Investigation has not been corapleted if the Secretary finds that such action is necessary in the national interest. Such finding shaU be
made a part of the personnel record of the person concerned.
. (d) Whenever a security Investigation being conducted with respect to an employee of
the Department develops Information relating to any of the matters described in subdivisions 2 through 7 of subsection (b) of section 3 of this order, or Indicates that an
eraployee has been subject to coercion. Influence, or pressure to act contrary to the
Interests of the national security, the niatter shaU be referred to the Federal Bureau
of Investigation for a fiiU fleld Investigation.
(e) The results of aU fuU field Investigations conducted for sensitive positions and
aU other Investigations developing unfavorable Inforraation of a namre outlined In
sectipn 3 of this order shaU be forwarded to the Security Officer for processing,
pursuant to section 5 ofthis order, and retention.
Section 5. Suspension and terraination.--(a) The authority conferred by the actof
August 26, 1950 (64 Stat. 476), upon the heads of departraents and agencies to which
such act Is appUcable to suspend clvlUan eraployees, without pay, when deemed necessary in the interests of the national security Is hereby delegated with respect to eraployees of the Departraent to the head of the bureau, and the authority to order suspension Is hereby delegated to the Security Officer.
(b) Upon the receipt of an Investigative report pursuant to section 4(e), the Security
Officer and the Legal Officer shaU Iraraediately evaluate the report and make a determination as to what action may be required In the interests of the national security.
Factors to be taken into consideration in making this deterraination shaU include, but
shaU not be Umited to, (1) the seriousness of any derogatory mformation contained iji
the report, (2) the quaUty or quantity of the security information or raaterial to which
EXHIBITS
353
the employee may have access, authorized or unauthorized, and (3) the opportunity, by
reason of the namre of the position, for committing acts adversely affecting the national
security.
(c) One of the four foUowing actions shaU be taken in each case: (1) A written
determination that the employment or retention in eraployment of the subject of the r e port is clearly consistent with the interests ofthe national security; (2) a written determination that suspension of an Incumbent is necessary in the Interests of the national
security; (3) a written determination that an incumbent shaU be teraporarfly transferred to a position in which he cannot adversely affect the interests of the national
security; (4) a written determination that the employment of an appUcant is not clearly
consistent with the interests of the national security.
(d) If, upon the evaluation specified In subsection (b) of this section, the Security
Officer and the Legal Officer deem suspension or transfer to another position necessary in the interests of the national security, the Security Officer shaU so notify the
head of the bureau, who shaU suspend or reassign the employee forthwith in accordance
with the procedure specified in subsection (f) or (g) of this section. In such cases as
the Security Officer and the Legal Officer deem it advisable, the head of the bureau
shaU be caUed Into consultation and the action Indicated by majority vote shaU be
taken.
(e) In cases where the suspension or reassignment of an employee is deemed necessary In the Interests of the national security, the Security Officer and the Legal
Officer shaU prepare a biU of particulars. The biU of particulars shaU be as specific
and detailed as security considerations permit, and normaUy shaU contain aU the
derogatory information relating to the employee except that which wlU reveal the
source of the information or the identity of confidential informants or which wiU reveal
security information. It shaU be subject to amendment within 30 days of issuance.
(f) If the suspended or reassigned employee (1) Is a citizen of the United States AND
(ii) has a permanent or indefinite appointment AND (ill) has completed his probationary
or trial period, the foUowing procedure shaU be carried out:
(1) The head of the bureau shaU notify the employee in writing of the reasons for
his suspension or reassignment, attaching to such notice a copy of the biU of particulars referred to in subsection (e) of this section and a copy of this order. Such notice
shall be sent by registered mafl with remrn receipt required or deUvered In person
against receipt.
(2) The employee may submit to the Legal Officer, within 30 days after the receipt
of the notice of reasons for his suspension or reassignment and the biU of particulars,
or within 30 days after any amendment thereof, statements and affidavits refuting or
explaining the stated reasons for suspension or reasslgnijient and the aUegations in the
biU of particulars. Such statement and affidavits shaU be considered by the Legal
Officer for sufficiency. If the Legal Officer considers the statements and supporting
documents deficient, he shaU take whatever steps he deems necessary to afford the
employee an opportunity to correct such deficiency. U the employee does not reply
within the 30-day period aUowed by this subsection, or does reply but does not request
a hearing, the Security Officer and the Legal Officer shaU consider the case on the
basis of the complete record and submit to the Secretary their recommendations for
its disposition together with the reasons therefor.
(3) If the employee so requests in his answer submitted pursuant to subdivision
(2) of this subsection, a hearing shaU be given before a hearing board composed of
three impartial, disinterested persons selected In accordance with the procedures set
forth In section 6 of this order. The hearing shaU be conducted In accordance with the
procedures set forth in section 7 of this order.
(4) After a he?.j.'mg has been held pursuant to subdivision (3) of this subsection,
the Security Officer and the Legal Officer shaU review the coraplete record in the case
and make recoramendations to the Secretary for its disposition.
(g) If the suspended or reassigned eraployee does not meet the three requirements of
subsection (f) of this section, the foUowing procedure shaU be carried out:
3 54
1954 REPORT OF THE SECRETARY OF THE TREASURY
(1) The head of the bureau shaU notify the eraployee In writing of the reasons for
his suspension or reasslgnraent, attaching to suchnotlcea copy of the biU of particulars
referred to in subsection (e) of this section and a copy of this order. Such notice shaU
be sent by registered mafl with remrn receipt required or deUvered in person against
receipt.
(2) The eraployee raay subrait to the Legal Officer, within 30 days after the receipt
of the notice of reasons for his suspension or reasslgnraent and the bfll of particulars,
or within 30 days after any araendraent thereof, stateraents and affidavits refuting or
explaining the stated reasons for suspension or reasslgnraent and the aUegations in the
biU of particulars. Such stateraents and affidavits shaU be considered by the Legal
Officer for sufflci^icy. If the Legal Officer considers the stateraents and affidavits
deficient, he shaU take whatever steps he deeras necessary to afford the eraployee an
opportunity to correct such deficiency. The Security Officer and the Legal Officer shaU
consider the case on the basis of the coraplete record and subrait to th^ Secretary their
recoramendations for Its disposition together with the reasons therefor.
(h) After the receipt of the coraplete ffle (including aU confidential Information
considered by the hearing board) of a case processed pursuant to subsection (f) or (g)
of this section, the Secretary wfll take one of the foUowing actions:
(1) If he finds that reinstatement of the eraployee to the position frora which the
employee has been suspended or reassigned Is clearly consistent with the Interests of
the national security, he wiU cause the eraployee to be restored to duty In such position
and the eraployee shaU be corapensated fof any period of suspension to the extent perraitted by law: Provided, That the eraployee shaU not be compensated for any extension
of the period of suspension caused by his voluntary action.
(2) If he does not find that reinstatement of the employee to the position frora
which the eraployee has been suspended or reassigned wiU be clearly consistent with
the Interests of the national security, but that the transfer of the eraployee to another
position In the Departraent Is clearly consistent with the interests of the national
security, he wfll cause the eraployee to be transferred to duty in such other position,
and to be corapensated for any period of suspension to the extent perraitted by law:
Provided, That the eraployee shaU not be corapensated for any extension of the period
of suspension caused by his voluntary action.
(3) U he does not find that the reinstateraent or transfer of the eraployee to any
position In the Departraent is clearly consistent with the interests of the national
security, he wfll cause the eraployraent of the eraployee to be terrainated.
(1) The action of the Secretary under this section is final, and the head of the bureau
shaU furnish to the eraployee a written notice of such action.
(j) A copy of aU notices of personnel actions taken In security cases shaU be forwarded to the Security Officer.
Section 6. Security hearing boards.--(a) Security hearing boards of the Department
shaU be composed of three civiUan officers or employees of fhe Federal Governraent,
other than officers or eraployees of the Treasury Departraent, selected by the Legal
Officer frora rosters raaintained for that purpose by the Civfl Service Commission In
Washington, D.C., and at regional offices of the Comraission.
(b) No person shaU serve as a raeraber of a security hearing board hearing the case
of an eraployee with whom he is acquainted.
(c) The eraployee shaU have the privilege, for good cause shown, of chaUenging any
raeraber of a board. ChaUenges for cause shaU be deterrained by the Legal Officer. In
addition to the right of chaUenge for cause, the eraployee shaU have one pereraptory
challenge.
(d) The Legal Officer shaU advise the eraployee of his rights under subsection (c) of
section 7 of this order.
(e) The tirae and place of hearings before security hearing boards shaU be deterrained by the Legal Officer, with due regard to the avaflabiUty and convenience of the
eraployee and the raerabers of the board, and the Legal Officer shaU raake aU necessary arrangeraents for hearings including avaflabiUty of competent stenographic assist-
EXHIBITS
355
(f) Competent stenographic assistance wfll be suppUed to the hearing boards by the
Office of the Secretary, at the request of the Legal Officer.
Section 7. Hearing procedure.—(a) Qne meraber of the hearing board wlU be designated as Chairraan, and the raeraber so designated shaU preside at the hearing.
(b) The Legal Officer shaU assure that both the interests of the Government and the
interests of the eraployee are protected, and shaU assist the board In raatters of procedure.
(c) The hearing board shaU take whatever action is necessary to assure the eraployee of a fliU and fair consideration of his case. The eraployee shaU be Inforraed by
the board of his right (1) to participate in tiie hearing, (2) to be represented by counsel
of his choice, (3) to present witnesses and offer other evidence In his own behaU and in
refutation of the charges brought against hira, and (4) to cross-exaraine any wimess
offered In support of the charges.
(d) AU hearings shaU be held In executive session, and wimesses shaU be present
In the hearing room only when giving testimony. The employee and his counsel shaU be
present at aU times during the hearing. Testimony before the hearing board shaU be
given under oath or affirmation, administered by the Legal Officer.
(e) A complete verbatim stenographic transcript shaU be made of the hearing by
quaUfied reporters, and the transcript shaU constimte a permanent part of the record.
Upon request, the employee or his counsel shaU be fiirnlshed a copy of the transcript
of the hearing, which transcript shaU contain only the notice of the reasons for the
suspension of the eraployee and the blU of particulars, the stateraents and affidavits
subraitted by the eraployee m answer thereto, and the evidence actuaUy taken at the
hearing.
(f) The hearing board shaU conduct the hearing proceedings in such raanner as to
protect from disclosure Inforraation affecting the national security or tending to disclose or comproraise investigative sources or raethods.
(g) The hearing board raay, In Its discretion. Invite any person to appear at the
hearing and testify. However, the board shaU not be bound by the testiraony of such
witness by reason of having caUed hira, and shaU have fiiU right to cross-examine hira.
(h) The Security Officer shaU present the Departraent's case to the hearing board.
(I) After such preliminaries as may be necessary, the hearings shaU continue with
the reading of the notice of the reasons for the suspension or reasslgnraent of the
eraployee and the bfll of particulars, and the stateraents and affidavits subraitted by the
eraployee In answer thereto. The reading of any or aU of such docuraents may be
dispensed with by raumal agreeraent of the eraployee and the Security Officer, provided
that In the opinion of the Legal Officer neither the interests of the eraployee nor the
interests of the Governraent would thereby be jeopardized; but aU such docuraents shaU
be raade a part of the transcript of the hearing.
(j) Both the Departraent and the employee raay introduce such evidence as the hearing board may deera proper In the particular case. Rules of evidence shaU not be binding on the board, but reasonable restrictions shaU be Imposed as to the relevancy,
competency, and materlaUty of raatters considered, so that the hearings shaU not be
unduly prolonged. U the eraployee Is, or raay be handicapped by the nondisclosure to
hira of confidential inforraation or by lack of opportunity to cross-exaraine confidential
Inforraants, the hearing board shaU take that fact into consideration. If a person who
has raade charges agamst the eraployee and who Is not a confidential inforraant Is
called as a wimess but does not appear, his faflure to appear shaU be considered by the
board In evaluating such charges, as weU as the fact that there is no provision for payraent of travel expenses of wimesses.
(k) The eraployee or his coimsel shaU have the right to control the sequence of their
wimesses. The eraployee or his counsel shaU be perraitted reasonable cross-examination of wimesses Invited by the hearing board; and the board, the Security Officer and
the Legal Officer shaU be perraitted reasonable cross-examination of wimesses caUed
by the eraployee.
(1) The hearing board shaU give due consideration to docuraentary evidence developed by investigation, including party merabership cards, petitions bearing the
356
1954 REPORT OF THE SECRETARY OF THE TREASURY
eraployee's slgnamre, books, treatises, or articles written by the employee, and testimony by the eraployee before duly constlmted authorities. The fact that such evidence
has been considered shaU be raade a part of the transcript of the hearing.
(ra) The board shaU reach Its conclusions and base its deterraination on the transcript of the hearing, together with such confidential inforraation as It raay have in its
possession. The board, in raaking its deterraination, shaU take Into consideration the
inabfllty of the eraployee to raeet charges of which he has not been advised, because of
security reasons, specificaUy or In detafl, or to attack the credlblUty of wimesses who
do not appear. Upon the corapletion of the hearing, the board shaU submit Its written
recoramendations and the reasons therefor to the Secretary, without further dissemination.
Section 8. Readjudication of certam ca^es.—The Security Officer shaU review aU
cases of eraployees of the Departraent with respect to whora there has been conducted
a fiiU fleld Investigation under Executive Order 9835, approved March 21, 1947,
as araended. After such fiirther mvestigation as the Security Officer raay deera appropriate, aU such cases shaU be readjudicated in accordance with the act of August 26,
1950, and this order, irrespective of whether the eraployee occupies a sensitive position.
Section 9. Reeraployraent of eraployees whose eraployraent has been terrainated.—No
person whose eraployraent has been terrainated by the Treasury Departnient under or
pursuant to the provisions of the act of August 26, 1950, or pursuant to Executive
Order No. 9835, as araended, or any other security or loyalty prograra, shaU be
eraployed in the Treasury Department; and no person whose employraent has been so
terrainated by any other departraent or agency shaU be employed in the Treasury
Department, unless the Secretary finds that such eraployraent Is clearly consistent with
the Interests of the national security and unless the Civfl Service Comraission deterraines that such person Is eligible for such employraent. The finding of the Secretary
and the deterraination of the Civil Service Commission shaU be made a part of the
personnel record of the person concerned.
Section 10. Nominations to security hearing board roster.—(a) The Security Officer,
after such consultation with bureau officials as he may deem necessary, shaU name
five eniployees of the Departraent to the security hearing board roster maintained in
Washington, D. C , by the Civfl Service Coraraission.
(b) The head of each fleld office outside the metropoUtan area ofWashington, D.C,
upon the request of the Security Officer, shaU norainate one employee for each 500
employees In such field office to security hearing board rosters maintained at regional
offices of the Civfl Service Commission. The Security Officer shaU name employees
to such rosters from the persons so nominated.
(c) Eraployees noralnated to security hearing board rosters raaintained by the Civfl
Service Coraraission, both in and outside of Washuigton, D. C , shaU be persons of
responsibiUty, unquestioned integrity, and sound judgraent. Each such nominee shaU
have been the subject of a fuU field investigation, and his nomination shaU be determined by the Security Officer to be clearly consistent with the interests of the national
security. No security officer or person who conducts personnel investigations, shaU be
noralnated to security hearing board rosters.
Section 11. Rescission of clearances.--Any clearance granted pursuant to-this order
wfll be rescinded should information subsequentiy be received which Indicates that
the retention of the employee is no longer clearly consistent with the interests of the
national security, as determined pursuant to the procedural provisions of this order.
Section 12. Procedural Instructions.—The Security Officer Is authorized to Issue
such procedural Instructions as may be necessary to carry out the provisions of this
order.
G. M. Humphrey,
Secretary of the Treasury.
EXHIBITS
357
No. 82, Revised-Amendment 1, November 2, 1953
In accordance with Executive Order No. 10491, October 13, 1953, which amended
Executive Order No. 10450, Aprfl 27, 1953, Treasury Department Order No. 82 (Revised September 22, 1953) Is hereby amended by adding the foUowing subparagraph at
the end of Section 3 thereof.
(8) Refusal by the Individual, upon the ground of constimtional privflege against
seU-incrimination, to testify before a congressional committee regarding charges
of his aUeged disloyalty or bther misconduct.
H. Chapman Rose,
Acting Secretary of the Treasury.
No. 82, Revised-Amendraent 2, Febmary 5, 1954
Pursuant to the authority contained in the act of August 26, 1950 (64 Stat. 476, c.
803); Executive Order No. 10450, approved Aprfl 27, 1953 (18 FIR. 2489), as amended
by Executive Order No. 10491, approved October 13, 1953 (18 FJ^. 6583); and Reorganization Plan No. 26 of 1950(15 F.R. 4935, 64 Stat. 1280), Treasury Department Order
No. 82, Revised (Septeml^er 22, 1953), as amended, is amended as foUows:
Section 1 (b) is amended to read as foUows:
(b) "Secretary" means the Secretary of the Treasury.
Section 1 (1) is amended to read as foUows (new material is indicated by underUning):
(1) "Reassignment" means the temporary alteration in, or limitation of, the duties
of an employee, in the interest of the national security, pending final determination of
his case under the provisions of this order. Although reassignment does not necessarily entafl physical relocation, appropriate steps must be taken to prevent the employee's having access to aU categories of classified information or material, pending
final determination. No termmation foUowing reasslgnraent shaU be effected without
prior suspension and fuU corapUance thereafter with the procedures appUcable to
suspension which are set forth in this order.
Section 1 (j) Is amended to read as foUows (new material Is indicated by underlining):
(j) "Sensitive position" means any position in the Department, the occupant of
which could bring about, because of the namre of the position, a material adverse
effect on the national security. Such positions shall include, but shall not be liraited to,
any position the occupant of which may have access to information or material classified as " s e c r e t " or "top s e c r e t " and may have opportunity to commit acts directiy or
indirectiy adversely affecting the national security.
Section 5 (cX3) is amended to read as foUows (new material is indicated by underUning):
(3) A written determination that reassignment of an incumbent Is necessary in
the interests of the national security;
Section 5 (d) Is amended to read as foUows (new material is indicated by underlining):
(d) If, upon the evaluation specified in subsection (b) of this section, the Security
Officer and the Legal Officer deem suspension or reassignment necessary in the
interests of the national security, the Security Officer shaU so notify the head of the
bureau, who shaU suspend or reassign the eraployee forthwith in accordance with the
procedure specified in subsection (f) or (g) ofthis section. In such cases as the Security
Officer and the Legal Officer deem it advisable, the head of the bureau shaU be caUed
Into consultation and the action indicated by majority vote shaU be taken.
Section 5 (0 Is amended to read as foUows (new material is indicated by underlining):
(f) U the suspended or reassigned employee (i) is a citizen of the United States
AND (il) has a permanent or indefinite appointment AND (iii) has completed his probationary or trial period, the foUowing procedure shaU be carried out:
(1) The head of the bureau shaU notify the employee In writing of the reasons
for his suspension or reassignment, attaching to such notice a copy of the biU of par-
358
1954 REPORT OF THE SECRETARY OF THE TREASURY
ticulars referred to in subsection (e) of this section and a copy of this order. Such
notice shall be sent by registered mail with remrn receipt required or delivered in
person against receipt.
(2) (A) An employee who has been suspended may submit to the Legal Officer,
within 30 days after the receipt of the notice of reasons for his suspension and the biU
of particulars, or within 30 days after any amendment thereof, statements and affidavits (In duplicate) refuting or explaining the stated reasons for suspension and the
aUegations in the bill of particulars. Such stateraents and affidavits shaU be considered
by the Legal Officer for sufficiency. If the Legal Officer considers the stateraents
and supporting documents deficient, he shaU take whatever steps he deems necessary
to afford the employee an oppormnity to correct such deficiency. If the eraployee does
not reply within the 30-day period aUowed by this subsection, or does reply but does
not request a hearing, the Security Officer and the Legal Officer shaU consider the
case on the basis of the complete record and submit to the Secretary their recommendations for its disposition together with the reasons therefor.
(B) An employee who has been reassigned raay subrait to the Legal Officer,
within 30 days after the receipt of the notice of reasons for his reasslgnraent and the
blU of particulars, or within 30 days after any amendment thereof, statements and
affidavits (In duplicate) refuting or explaining the stated reasons for reasslgnraent and
the allegations In the blU of particulars. If the Security Officer and the Legal Officer
are then of the opinion that the case should be resolved favorably to the eraployee, they
shall so recommend to the Secretarv. Unless the case Is resolved favorably to the
employee at this point, the Security Officer shaU order the head of the bureau to suspend the eraployee forthwith. Thereafter, the procedure applicable to suspensions shall
be followed.
(3) If the employee so requests in his answer submitted pursuant to paragraph
(A) of subdivision (2) of this subsection, a hearmg shaU be given before a hearing board
composed of three impartial, disinterested persons selected In accordance with the
procedures set forth In section 6 of this order. The hearing shaU be conducted In
accordance with the procedures set forth in section 7 of this order.
(4) After a hearing has been held pursuant-to subdivision (3) of this subsection,
the Security Officer and the Legal Officer shaU review the complete record in the case
and make recommendations to the Secretary for its disposition.
Section 5 (g) Is amended to read as foUows (new material is indicated by underlining):
(g) If the suspended or reassigned employee does not raeet the three requirements of subsection (f) of this section, the foUowing procedure shaU be carried out:
(1) The head of the bureau shaU notify the employee in writing of the reasons
for his suspension or reassignment, attaching to such notice a copy of the blU of particulars referred to In subsection (e) of this section and a copy of this order. Such
notice shaU be sent by registered mall with remrn receipt required or delivered in
person against receipt.
(2) (A) An eraployee who has been suspended raay subrait to the Legal Officer,
within 30 days after the receipt of the notice of reasons for his suspension and the biU
of particulars, or within 30 days after any araendraent thereof, stateraents and affidavits (in dupUcate) refuting qr explaining the stated reasons for suspension and the
aUegations in the biU of particulars. Such stateraents and affidavits shaU be considered
by the Legal Officer for sufficiency. If the Legal Officer considers the statements and
affidavits deficient, he shaU take whatever steps he deeras necessary to afford the
eraployee an oppormnity to correct such deficiency. The Security Officer and the Legal
Officer shaU consider the case on the basis of the complete record and submit to the
Secretary their recommendations for Its disposition together with the reasons therefor.
(B) An eraployee who has been reassigned raay subrait to the Legal Officer,
within 30 days after the receipt of the notice of reasons for his reasslgnraent and the
biU of particulars, or within 30 days after any araendraent thereof, stateraents and
affidavits (In duplicate) refuting or explaining the stated reasons for reasslgnraent and
the aUegations in the biU of particulars. If the Security Officer and the Legal Officer
are then of the opinion that the case should be resolved favorably to the eraployee, they
EXHIBITS
359
shaU so recoraraend to the Secretary. Unless the case Is resolved favorably to the
eraployee at this point, the Security Officer shaU order the head of the bureau to
suspend the eraployee forthwith. Thereafter, the procedure applicable to suspensions
shall be followed.
The introductory paragraph of Section 5 (h) Is araended to read as foUows (new raaterial Is indicated by underlining):
(h) After the receipt of the coraplete ffle (Including aU confidential Inforraation
considered by the hearing board. If any) of a case processed pursuant to subsection (f)
or (g) of this section, the Secretary or some official of the Department designated by
him wfll review the ffle and take one of the foflowing actions: Provided, That only the
Secretary wlU take the action specified in subdivision (3) of this subsection:
Section 7 (I) is araended to read as foUows:
(i) After such preUralnarles as raay be necessary, the hearing shaU continue with
the reading of the notice of the reasons for the suspension of the eraployee and the blU
of particulars, and the stateraents and affidavits subraitted by the eraployee in answer
thereto. The reading of any or aU of such documents may be dispensed with by raumal
agreeraent of the eraployee and the Security Officer, provided that In the opinion of the
Legal Officer neither the Interests of the eraployee nor the Interests of the Governraent
would thereby be jeopardized; but aU such docuraents shaU be raade a part of the
transcript of the hearing.
G. M. Huraphrey,
Secretary of the Treasury.
NO. 83, RE VISED, DESIGN ATIONS RELATING TO PERSONNEL SECURITY OFFICER
AND SECURITY OFFICER
No. 83, Revised Septeraber 29, 1953
Pursuant to the provisions of Executive Order No. 10450 and of Treasury Departraent
Order No. 82 (Revised), Mr. Elbert P. Tuttle, General Counsel, is hereby designated
as Acting Personnel Security Officer for the Treasury Departraent. Comraander Virgil
E. Howard, U.S.C.G.R., shaU serve as Assistant Personnel Security Officer and Mr.
Richard L. Hirshberg shaU serve as Legal Officer for the Personnel Security P r o grara.
AU officers and eraployees of the Treasury Departraent are directed to coraply with
requests for inforraation received frora the Acting Personnel Security Officer and his
representatives and to cooperate with thera to the fuUest possible extent.
This order supersedes Treasury Department Order No. 83 (Revised), dated July 18,
1951.
G. M. Huraphrey,
Secretary of the Treasury.
No. 83, Revised Deceraber 14, 1953
Pursuant to the provisions of Executive Orders No. 10450 and 10501 and of Treasury
Departraent Orders No. 82, Revised, and 160, Revised, Mr. Elbert P. Tutfle, General
Counsel, is hereby designated as Acting Security Officer and Acting Personnel Security
Officer for the Treasury Departraent. Comraander Virgil E. Howard, U.S.C.GJI., shaU
serve as Alternate Security Officer and Alternate Personnel Security Officer. Mr.
Richard L. Hirshberg shaU serve as Legal Officer for the Security and Personnel
Security Prograrns.
360
1954 REPORT OF THE SECRETARY OF THE TREASURY
All officers and eraployees of the Treasury Departraent are directed to coraply with
requests for Information received frora the persons designated above and to cooperate
with thera to the fuUest possible extent.
t h i s order supersedes Treasury Department Order No. 83 (Revised), dated Septeraber 29, 1953.
M. B. Folsora,
Acting Secretary of the Treasury.
No. 83, Revised Aprfl 8, 1954
Pursuant to the provisions of Executive Orders No. 10450 and 10501 and of Treasury
Departraent Orders No. 82, Revised, and 160, Revised, Mr. Clarence O. Tormoen,
Assistant to the Secretary, is hereby designated as Security Officer and Personnel
Security Officer for the Treasury Departraent. Mr. Vlrgfl E. Howard shaU serve as
Alternate Security Officer and Alternate Personnel Security Officer. Mr. Richard L.
Hirshberg shaU serve as Legal Officer for the Security and Personnel Security P r o grams.
AU officers and employees of the Treasury Departraent are directed to coraply with
requests for Information received frora the persons designated above and to cooperate
with thera to the fullest possible extent.
This order supersedes Treasury Departraent Order No. 83 (Revised), dated Deceraber 14, 1953.
G, M. Huraphrey,
Secretary of the Treasury.
NO. 120, AMENDMENTS 3 TO 5, DESIGNATION OF CERTAIN
ACTING CUSTOMS OFFICERS
No. 120, Araendraent 3, September 1,1953
By virme of the authority vested in me by Reorganization Plan No. 26 of 1950, and as
an araendraent of Treasury Departraent Order No. 120, dated July 31, 1950, I hereby
provide that Mr. Eraerson L. Sunstrora, Fiscal Officer (Acting Assistant Comptroller),
Office of Coraptroller of Customs. Baltiraore, Maryland, Is authorized to perforra aU
the functions of the ComptroUer of Customs, Baltiraore, Maryland. In the perforraance
of these functions Mr. Sunstrora is authorized to designate himself as Acting CoraptroUer of Customs.
This amendment of Treasury Departraent Order No. 120 shaU be effective Septeraber
1, 1953, and shaU reraain In effect untfl terrainated by subsequent order.
M. B. Folsora,
Acting Secretary of the Treasury.
No. 120. Araendraent 4, November 27, 1953
By vlrme of the authority vested in me by Reorganization Plan No. 26 of 1950, and as
an amendraent of Treasury Departraent Order No. 120, dated July 31, 1950, I hereby
provide that Mr. Charles M. Ebert, Custoras Liquidator (Acting Assistant Comptroller),
Office of Comptroller of Customs. Chicago. Illinois, Is authorized to perform aU the
functions of the ComptroUer of Customs, Chicago, Ulinois. In the performance of these
functions Mr. Ebert is authorized to designate hlraseU as Acting Coraptroller of
Customs.
EXHIBITS
361
This amendment of Treasury Departraent Order No. 120 shaU be effective Deceraber 1, 1953, and shaU remain In effect untfl terminated by subsequent order.
H. Chapman Rose,
Acting Secretary of the Treasury.
No. 120. Amendraent 5. June 11, 1954
By virme of the authority vested in me by Reorganization Plan No. 26 of 1950, and as
an amendraent of Treasury Departraent Order No. 120, dated July 31, 1950, Thereby
provide that Mr. Sarauel J. Bonds. Deputy CoUector of Custoras (Acting Assistant
CoUector), Is authorized to perform aU the functions of the CoUector of Customs' for
Customs CoUection District No. 43, the headquarters ofwhich is located in Memphis,
Tennessee. In the performance of these functions Mr. Bonds Is authorized to designate
himseU as Acting Collector of Custoras and shaU open, effective June 16, 1954. a new
set of accounts separate frora those of CoUector Waldauer.
This amendment of Tireasury Department Order No. 120 shaU be effective June 16.
1954, and shaU remain in effect until terminated by subsequent order.
H. Chapman Rose,
Acting Secretary of the IVeasury.
NO. 129, REVISED MARCH 15, 1954, ORDER OF SUCCESSION FOR TREASURY
DEPARTMENT OFFICERS—BUREAU OF CUSTOMS
Under authority conferred upon me by section 161 of the Revised Stamtes (5 U.S.C.
22) and Reorganization Plan No. 26 of 1950, It is hereby ordered as foUows:
PARAGRAPH "C"--BUREAU OF CUSTOMS
The foUowing officers of Customs, in the order of succession enumerated, shaU act
as Commissioner of Customs during the absence or disabiUty of the Commissioner of
Custoras. or when there Is a vacancy in such office:
1. Assistant Coraraissioner of Custoras
2. Deputy Commissioner of Custoras for Investigations
3. Deputy Comraissioner of Custoras for Appraiseraent Adrainistration
4. Deputy Coramissioner of Customs for Management and Controls
5. Chief, Division of Classification, Entry, and Value
6. Chief, Division of Drawbacks, Penalties, and Quotas
7. Chief, Division of Marine Administration
8. CoUector of Customs, New York, N. Y.
9. Assistant CoUector of Customs, New York, N. Y.
10. CoUector of Custoras, Tampa, Florida
11. Assistant CoUector of Custoras, Tarapa, Florida
12. CoUector of Customs, St. Louis, Missouri
This supersedes PARAGRAPH "C"—BUREAU OF CUSTOMS of Treasury Department Order No. 129, Revised, dated December 11,1952.
H. Chapman Rose,
Acting Secretary of the Treasury.
362
1954 REPORT OF THE SECRETARY OF THE TREASURY
NO. 140 REVISED MAY 5, 1954, DELEGATION OF AUTHORITY WITH REGARD
TO THE DESIGNATION OF OFFICERS AND EMPLOYEES TO CERTIFY
VOUCHERS TO DISBURSING OFFICERS ^
By vlrme of the authority vested In me by Section 2 of Reorganization Plan No. 26 of
1950, there Is hereby delegated to the heads and acting heads of the bureaus and offices
of the Treasury Department the authority vested In the Secretary of the Treasury by
Sections 1 and 2 of the act of December 29, 1941, as araended (U.S.C., Title 31, Sees.
82b and 82c) to designate, in writing, officers and eraployees to certify vouchers to
disbursing officers for payraent frora fiinds under their respective jurisdiction, to r e voke the designations of officers and employees to certify such vouchers, and to require
designated officers and eraployees to give bond to theUnited States in amounts consistent with the provisions of Section 3 of Treasury Departraent Circular No. 680, dated
February 16, 1942, as araended.
The authority delegated above raay be redelegated by the head or acting head of a
bureau or office to such responsible subordinate officials thereof as he raay consider
necessary, and, if so desired, to persons perforralng the duties of such subordinate
officials in their absence.
M. B. Folsora,
Acting Secretary of the Treasury.
NOS. 150-13 REVISED AND 150-28 TO 150-35, RELATING TO REORGANIZATION
AND OTHER MATTERS AFFECTING THE INTERNAL REVENUE SERVICE
No. 150-13, Revised July 3, 1953
By virme of the authority vested in me as Secretary of the Treasury, it is hereby
ordered:
1. The last sentence of Treasury Department Order No. 150-13, dated October 26,
1952, as amended Deceraber 4, 1952, is further araended to read as foUows:
"The headquarters of such office shaU be located In Seattle, Washington, and the
office shaU have the titie of District Director of Internal Revenue, Seattle."
2. This order shaU be effective July 6, 1953.
M. B. Folsora,
Acting Secretary of the Treasury.
No. 150-28, July 6, 1953
The Coraraissioner of Internal Revenue Is authorized to delegate to officers or
eraployees of the Bureau of Internal Revenue, Including the field service, authority to
certify aU lists of assessments of Internal revenue taxes and to authorize such officers
or eraployees to delegate any such function to any other officer or eraployee under
their general supervision and control.
This order shaU be effective July 1, 1953.
M. B. Folsora,
Acting Secretary of the Treasury.
iThis order supersedes lireasury Departraent Order No. 140, Revised Febmary 2 1 ,
1952.
EXHIBITS
363
No. 150-29, July 9, 1953
By virme of the authority vested in rae as Secretary of the Treasury, It Is hereby
ordered that:
1. The Bureau of Internal Revenue shaU hereafter be known as the Internal Revenue
Service.
2. AU regulations, rairaeographs, forras, and other Internal Revenue and Treasury
documents are araended to conforra to this order, but existing suppUes of these raaterials shaU continue to be used without change untfl they are exhausted.
G. M. Huraphrey.
Secretary of the Treasury.
No. 150-30. October 28, 1953
By vlrme of the authority vested In rae as Secretary of the Treasury, including that
conferred by Section 2(aX3) of Reorganization Plan No. 1 of 1952, the foUowing changes
are hereby raade in the National Office of the Internal Revenue Service:
1. Abolition of division. The Fleld Manageraent and Planning Division, including the
office of head thereof. Is abolished.
2. EstabUshraent of new division. The Fiscal Manageraent Division, Including the
office of head thereof, is estabUshed.
3. Change of narae of division. The name ofthe Technical Rulings Division Is changed
to Tax Rulings Division.
4. Effective date. Paragraphs 1 and 2 shaU be effective as of July 1\ 1953. P a r a graph 3 shaU be effective on the date of approval of this order.
M. B. Folsom,
Acting Secretary of the Treasury.
No. 150-31, November 13,1953
Pursuant to the authority vested In rae as Secretary of the Treasury, It Is hereby
ordered:
1. The Director of the Bureau of Engraving and Printing shaU distribute to the
District Directors of Internal Revenue aU staraps pertaining to Internal revenue taxes,
and to the Postraaster General docuraentary stamps pertaining to Internal revenue
taxes, printed by or under the supervision of the Bureau of Engraving and Printing,
upon requisition by such District Directors and the Postraaster General, in accordance
with Sections 3901 (aX2) and 1817 (a) of the Internal Revenue Code.
2. Orders for staraps heretofore raade upon the Director of the Bureau of Engraving
and Printing on behaU of the Coraraissioner of Internal Revenue shaU be raade upon
the Director of the Bureau of Engraving and Printing by the District Directors of
Internal Revenue and by the Postraaster General, under mles prescribed by the Coramissioner of Internal Revenue.
3. The function heretofore exercised by the Destruction Coraraittee of the Treasury
Departraent, respecting the destruction of internal revenue staraps remrned uncanceled
to the Coraraissioner of Internal Revenue, by District Directors of Internal Revenue,
pursuant to Section 3950 (b)(2) of the InternalRevenue Code, shaU be perforraed by such
officers or eraployees of the Internal Revenue Service as raay be designated by the
Commissioner of Internal Revenue, imder rules prescribed by hira.
M. B. Folsora,
Acting Secretary of the Treasury.
364
1954 REPORT OF THE SECRETARY OF THE TREASURY
No. 150-32, Noveraber 18, 1953
By vlrme of the authority vested In rae by Reorganization Plan No. 26 of 1950, there
are hereby transferred to the Coraraissioner of Internal Revenue aU the functions of
the Secretary of the Treasury, the Under Secretary of the Treasury, or any Assistant
Secretary of the Treasury with respect to closing agreeraents under Section 3760 of the
Internal Revenue Code.
This order continues the delegation raade by Treasury Departraent Order No. 146,
dated Deceraber 20, 1951. which Is hereby superseded.
The functions herein transferred raay be delegated by the Coramissioner to subordinates in the Internal Revenue Service in such manner as he shaU from tune to time
direct.
G. M. Humphrey,
Secretary of the Treasury.
No. 150-33, November 27, 1953
By virme of the authority vested in rae as Secretary of the Treasury, it is hereby
ordered:
1. The Coramissioner of Internal Revenue Is authorized to perforra the functions
vested In the Secretary of the Treasury by PubUc Law 274 (83d Congress), approved
August 14,1953, to abate jeopardy assessraents if he finds that jeopardy does not exist.
2. The functions herein transferred raay be delegated by the Coraraissioner td such
officers or eraployees In the Internal Revenue Service In such raanner as he shaU frora
tirae to tirae direct..
M. B. Folsom,
Acting Secretary of the Treasury.
No. 150-34, March 25, 1954
Pursuant to the authority vested in rae as Secretary of the Treasury, it is hereby
ordered:
1. In accordance with the provisions of Section 119 of the Accounting and Auditing
Act of 1950, approved Septeraber 12. 1950, the Coraraissioner of Internal Revenue is
authorized to delegate to officers and eraployees of the Internal Revenue Service, wherever simated, authority to approve administratively Revenue Accounts Current (Forra
79) and Accounts Current (Standard Forra 1019).
2. The certificate of deposit, required by Section 3971(a) of the Internal Revenue
Code to be transraltted to the Coraraissioner of Internal Revenue, shaU hereafter be
forwarded to such officers or eraployees o f t h e Internal Revenue Service, wherever
situated, as the Coraraissioner shaU designate.
3. The authority delegated by this order shaU be exercised in accordance with instructions to be issued by the Coraraissioner.
4. This order shaU be effective this date.
M. B. Folsom,
Acting Secretary of the Treasury.
No. 150-35, March 25. 1954
By vlrme of the authority vested in me as Secretary of the Treasury by Reorganization Plan No. 26 of 1950, there are hereby conferred and iraposed upon the Cora-
EXHIBITS
365
raissloner of Internal Revenue the functions of theSecretary of the Treasury prescribed
by Sections 463C.32 and 463C.33 (a) of Treasury Decision 4929, approved by the
President on August 28, 1939. as amended by Treasury Decision 4991, approved on
July 20. 1940 ( C B . 1939-2, 91, C B . 1940-2, 92; 26 CFR 458.65. 458.66 (a)), with r e spect to perraission to the head of a bureau or office of the Treasury Departraent, not
a part of the Internal Revenue Service, or an eraployee in such bureau or office, or to
the head of an executive department (other than the Treasury Department) or any other
establishment in the Executive Branch of the United States Government, or an officer
or eraployee in such department or establishraent, to inspect a remrn made under the
Internal Revenue Code to which Treasury Decision 4929, as amended, applies. The
fiinctions herein conferred and imposed upon the Commissioner of Internal Revenue
may be exercised by any officer or eraployee of the Internal Revenue Service who Is so
authorized by the Coraraissioner, under such rules as may be prescrit^ed by him.
M. B. Folsom,
Acting Secretary of the Treasury.
NO. 160, REVISED DECEMBER 14, 1953, DELEGATIONS AND INSTRUCTIONS
PERTAINING TO CLASSIFIED SECURITY INFORMATION^
1. Purpose.--The purpose of this order is to provide delegations and Irapleraenting
Instructions for the adrainistration, in. the several bureaus of the Treasury Department, of Executive Order No. 10501, of Noveraber 5, 1953, entitled "Safeguarding Official Inforraation in the Interests of the Defense of the United States" (See attached
copy). The delegations herein are made pursuant to Reorganization Plan No. 26 of 1950
(3 CFR, 1950 Supp. ch. HI).
2. The Coast Guard has previously been authorized to adopt the United States Navy
security manual. In recognition of its stams as a miUtary service and a branch of the
Armed Forces, the Coast Guard is hereby exempted from the operation ofthis order
and charged with following the Navy security manual, subject to such modifications as
may be Issued in order to adapt it to the needs of the Coast Guard and subject to the
security standards established by Executive Order No. 10501.
3. AppUcabiUty of Executive Order No. 10501.—(a) Heads of bureaus shaU be r e sponsible for complete compliance with the provisions of Executive Order No. 10501
within their bureaus.
(b) AU persons In the Treasury Department are subject to the provisions of this
Executive order.
(c) AU persons whose duties Involve the handling of classified defense information
shaU famfliarlze themselves with the provisions of the Executive order.
4. Classification categories.--Official inforraation which requires protection In the
Interests of national defense Is liraited to three categories of classification, which in
descending order of iraportance shaU carry one of the foUowing designations: TOP
SECRET, SECRET, or CONFIDENTIAL. Except as expressly provided by stamte these
designations shaU be liraited to the classification of material described by the definitions in Section 1 of Executive Order No. 10501, and no different or additional designation shaU be used for the classification of such material.
5. Limitation of authority to classify.—(a) The authority for original classification
of inforraation or raaterial as TOP SECRET shaU be exercised only by the Secretary,
the Under Secretary, the Deputy to the Secretary, the Assistant Secretaries, and the
General Counsel.
(b) The authority for original classification of Inforraation or raaterial as SECRET'
and CONFIDENTIAL shaU be exercised only by those officials specified In subsection
(a) of this section, by bureau heads andby those specificaUy designated by bureau heads
IThis order supersedes Treasury Departraent Order No. 160, Noveraber 17, 1952.
339256 O - 55 - 25
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1954 REPORT OF THE SECRETARY OF THE TREASURY
for this purpose. Bureau heads shaU not delegate to any subordinate the authority to
make these specific designations. Such designations shaU be limited to as few persons
as is consistent with the orderly and expeditious transaction of Government business.
6. Declassification, downgrading or upgrading.--(a) AU information of Treasury
Departraent origin which has heretofore been marked "RESTRICTED" or "RESTRICTED--SECURITY INFORMATION" is hereby automaticaUy declassified; except
that, when bureau heads positively determine, with the concurrence of the originator,
that such information requires protection In the mterest of national defense, it shaU
be reclassified as "CONFIDENTIAL."
(b) AU information of Treasury Department origin marked "CONFIDENTIAL,"
"SECRET," or "TOP SECRET," but not marked "SECURITY INFORMATION" is
hereby automaticaUy declassified; except that when bureau heads positively determine,
with the concurrence of the originator, that such information meets the criteria prescribed in Section 1 of Executive Order No. 10501 for these categories of classification or has been so classified pursuant to an express stamtory provision, It shaU be
classified accordingly. AU information originated by other Government departments
or agencies marked "RESTRICTED" or "RESTRICTED--SECURITY INFORMATION,"
or by friendly foreign governraents raarked "RESTRICTED," shaU be teraporarily
safeguarded as "CONFIDENTIAL," and bureau heads shaU ascertain frora the classifying authority involved its disposition as to classification or declassification.
(c) Heads of bureaus shaU be responsible for estabUshing a continuing review of
classified matter, for the purpose of declassifying or downgrading it whenever national
defense considerations perrait or of classifying or upgrading it pursuant to Section
4(g) of Executive Order No. 10501, and for receiving requests for such review frora aU
sources. They shaU establish formal procedures to provide specific means for prompt
review of classified material and its declassification or downgrading in order to preserve the effectiveness and Integrity of the classification system and to eUrainate
accumulation of classified material which no longer requires protection In the defense
interest.
7. Loss or subjection to compromise.--Any person in the Treasury Department
who has knowledge of the loss or possible subjection to compromise of classified
defense information shaU promptiy report the circumstances to the appropriate bureau
head or his designee, who shaU take appropriate action forthwith, including advice to
the originating department or agency.
8. AccountabiUty and dissemination.--Each bureau head shaU prescribe such accountability procedures as are necessary to control effectively the dissemination of
classified defense information within his own bureau, and shall designate Top Secret
Control Officers, as required, to receive, maintam accountability registers of. and
dispatch TOP SECRET material.
9. Transmission.--Each bureau head shaU prescribe regulations governing the
preparation of classified defense material for transmission, and-transmission of It,
within his bureau, insuring a degree of security equivalent to that outlined In Section 8
of Executive Order No. 10501.
10. Destruction.--When information which has been classified under the authority
of Executive Order No. 10501 is to be destroyed, destruction shaU be by burning
in the presence of a person or persons specificaUy designated by the appropriate bureau head. Each bureau head shaU cause to be maintained appropriate accountabflity
records for his bureau to reflect the destruction of classified defense material. Carbon
paper used in preparing classified defense information, spofled copies, etc.. shaU also
be destroyed by burning, but no records of such destruction need be kept.
11. Training, orientation and inspection.--Each bureau head shaU designate experienced persons to coordinate and supervise the activities applicable to his bureau under
this order and Executive Order No. 10501. and to maintain the programs of training,
orientation, and inspection specified in Section 10 of the Executive order. The Department Security Officer is hereby authorized to estabUsh adequate and active inspection
prograras to the end that the provisions of the Executive order are administered effectively throughout the Departraent.
EXHIBITS
367
12. Review.--Each bureau head shaU designate a raeraber or raerabers of his staff
to conduct a continuing review of the Impleraentation of Executive Order No. 10501
within his bureau, for the purpose specified in Section 18 of said Executive order.
13. Bureau delegation orders and other regulations.--Copies of delegation orders
and of aU other rules, regulations, and procedures of general applicabUity issued by
the heads of bureaus shaU be forwarded to the Departraent Security Officer.
14. Effective date. - - This order shaU becorae effective on December 15, 1953.
M. B. Folsom,
Acting Secretary of the Treasury.
Executive Order No. 10501, safeguarding official Information In the Interests
of the defense of the United States
Whereas It is essential that the citizens of the United States be informed concerning
the activities of their governraent; and
Whereas the Interests of national defense require the preservation of the ablUty of
the United States to protect and defend ItseU against aU hostfle or destructive action by
covert or overt raeans. Including espionage as weU as raiUtary action; and
Whereas It Is essential that certain official uiforraation affecting the national defense
be protected uniformly against unauthorized disclosure:
Now. therefore, by vlrme of the authority vested in rae by the Constimtion and
statutes, and as President of the United States, and deeming such action necessary In
the best Interests of the national security. It Is hereby ordered as foUows:
Section 1. Classification categories.—Official Inforraation which requires protection
in the interests of national defense shaU be Uralted to three categories of classification,
which In descending order of Iraportance shaU carry one of the foUowing designations:
TOP SECRET, SECRET, or CONFIDENTIAL. No other designation shaU be used to
classify defense inforraation, including miUtary information, as requiring protection
in the interests of national defense, except as expressly provided by stamte. These
categories are defined as foUows:
(a) TOP SECRET.--Except as may be expressly provided by stamte, the use of the
classification TOP SECRET shaU be authorized, by appropriate authority, only for
defense Inforraation or material which requires the highest degree of protection. The
TOP SECRET classification shaU be appUed only to that Information or material the
defense aspect of which is paramount, and the unauthorized disclosure of which could
result In exceptionaUy grave damage to the Nation such as leading to a definite break In
diplomatic relations affecting the defense of the United States, an armed attack against
the United States or Its alUes. a war, or the compromise of mlUtary or defKise plans,
or inteUigence operations, or scientific or technological developments vital to the national defense.
(b) SECRET.--Except as may be expressly provided by stamte, the use of the classification SECRET shaU be authorized, by appropriate authority, only for defense information or material the unauthorized disclosure of which could result In serious
damage to the Nation, such as by jeopardizing the International relations of the United
States, endangering the effectiveness of a prograra or policy of vital Iraportance to the
national defense, or compromising Iraportant nUUtary or defense plans, scientific or
technological developraents Iraportant to national defense, or inforraation revealing
iraportant InteUigence operations.
(c) CONFIDENTIAL. - -Except as raay be expressly provided by stamte, the use of the
classification CONFIDENTIAL shaU be authorized, by appropriate authority, only for
defense Inforraation or raaterial the unauthorized disclosure of which could be prejudicial to the defense interests of the Nation.
Section 2. Liraitation of authority to classify.--The authority to classify defense
Inforraation or raaterial under this order shaU be Uralted In the departraents and
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1954 REPORT OF THE SECRETARY OF THE TREASURY
agencies of the executive branch as hereinafter specified. Departraents and agencies
subject to the specified limitations shaU be designated by the President:
(a) In those departments and agencies having no direct responsibiUty for national
defense there shaU be no authority for original classification of Information or material under this order.
(b) In those departments and agencies having partial but not priraary responsibiUty
for raatters pertaining to national defense the authority for original classification of
inforraation or raaterial under this order shaU be exercised only by the head of the departraent or agency, without delegation.
(c) In those departraents and agencies not affected by the provisions of subsection
(a) and (b), above, the authority for original classification of inforraation or material
under this order shaU be exercised only by responsible officers or eraployees, who
shall be specificaUy designated for this purpose. Heads of such departraents and
agencies shall limit the delegation of authority to classify as severely as is consistent
with the orderly and expeditious transaction of Governraent business.
Section 3. Classification. - -Persons designated to have authority for origmal classification of information or material which requires protection in the interests of national
defense under this order shaU be held responsible for its proper classification in
accordance with the definitions of the three categories In section 1, hereof. Unnecessary
classification and overclasslflcation shaU be scrupulously avoided. The foUowing
special rules shaU be observed in classification of defense inforraation or material:
(a) Documents In general.--Documents shaU be classified according to their own
content and not necessarily according to their relationship to other docuraents. References to classified material which do not reveal classified defense information shaU
not be classified.
(b) PhysicaUy connected documents.--The classification of a flle or group of physicaUy connected documents shaU be at least as high as that of the raost highly classified
docuraent therein. Docuraents separated frora the ffle or group shaU be handled in
accordance with their Individual defense classification.
(c) Multiple classification.--A docuraent, product, or substance shaU bear a classification at least as high as that of its highest classified coraponent. The document,
product, or substance shall bear only one overaU classification, notwithstanding that
pages, paragraphs, sections, or components thereof bear different classifications.
(d) Transmittal letters.--A letter transmitting defense Information shaU be classified at least as high as Its highest classified enclosure.
(e) Information originated by a foreign governraent or organization.--Defense inforraation of a classified namre furnished to the United States by a foreign governraent
or International organization shaU be assigned a classification which wfll assure a
degree of protection equivalent to or greater than that required by the governraent or
internationai organization which furnished the Information.
Section 4. Declassification, downgrading, or upgrading.--Heads of departraents or
agencies originating classified raaterial shaU designate persons to be responsible for
continuing review of such classified material for the purpose of declassifying or downgrading It whenever national defense considerations perrait, and for receiving requests
for such review frora aU sources. Rjrraal procedures shaU be estabUshed to provide
specific raeans for prorapt review of classified raaterial and Its declassification or
downgrading in order to preserve the effectiveness and integrity of the classification
systera and to eUminate accuraulation of classified material which no longer requires
protection In the defense Interest. The foUowing special rules shaU be observed with
respect to changes of classification of defense material:
(a) Autoraatic changes.—To the fuUest extent practicable, the classifying authority
shaU indicate on the raaterial (except telegrams) at the tirae of original classification
that after a specified event or date, or upon reraoval of classified enclosures, the material wfll be downgraded or declassified.
(b) Nonautomatic changes.--The persons designated to receive requests for review
of classified material may downgrade or declassify such raaterial when circurastances
no longer warrant Its retention in Its original classification provided the consent of the
EXHIBITS
359
appropriate classifying authority has been obtained. The downgrading or declassification of extracts frora or paraphrases of classified docuraents shaU also require the
consent of the appropriate classifying authority unless the agency making such extracts
knows positively that they warrant a classification lower than that of the docuraent
from which extracted, or that they are not classified.
(c) Material officiaUy transferred.--In the case of material transferred by or pursuant to stamte or Executive order from one department or agency to another for the
latter's use and as part of its official ffles or property, as distinguished frora transfers raerely for purposes of storage, the receiving departraent or agency shaU be
deemed to be the classifying authority for aU purposes under this order, including
declassification and downgrading.
(d) Material not officiaUy transferred.--When any department or agency has In Its
possession any classified material which has becorae five years old, and It appears
(1) that such material originated In an agency which has since become defunct and
whose files and other property have not been officiaUy transferred to another department or agency within the raeaning of subsection (c), above, or (2) that it is Impossible
for the possessing department or agency to identify the originating agency, and (3) a
review of the material Indicates that It should be downgraded or declassified, the said
possessing departraent or agency shaU have power to declassify or downgrade such
raaterial. If It appears probable that another departraent or agency may have a substantial interest in whether the classification of any particular information should be
raaintained, the possessing departraent or agency shaU not exercise the power conferred upon it by this subsection, except with the consent of the other departraent or
agency, until thirty days after it has notified such other departraent or agency of the
namre of the raaterial and of Its intention to declassify or downgrade the sarae. During
such thirty-day period the other departraent or agency may, if it so desires.express
Its objections to declassifying or downgrading the particular material, but the power to
raake the ultiraate decision shafl reside In the possessing deparmient or agency.
(e) Classified telegrams.--Such telegrams shaU not be referred to, extracted frora,
paraphrased, downgraded,, declassified, or disseminated, except in accordance with
special regulations Issued by the head of the originating department or agency. Classified telegrams transmitted over cryptographic systems shaU be handled In accordance
with the regulations of the transmitting department or agency.
(f) Downgrading.--If the recipient of classified material beUeves that It has been
classified too highly, he may raake a request to the reviewing official who may downgrade or declassify the material after obtaining the consent of the appropriate classifying authority.
(g) Upgrading.--If the recipient of unclassified raaterial beUeves that it should be
classified, or if the recipient of classified material believes that its classification is
not sufficienfly protective, it shaU be safeguarded in accordance with the classification
deemed appropriate and a request made to the reviewing official, who may classify
the material or upgrade the classification after obtaining the consent of the appropriate
classifying authority.
(h) Notification of change In classification.--Ihe reviewing official taking action to
declassify, downgrade, or upgrade classified material shall notify all addressees to
whora the raaterial was originaUy transmitted.
Section 5. Marking of classified material.--After a determination of the proper
defense classification to be assigned has been raade in accordance with the provisions
of this order, the classified raaterial shaU be raarked as foUows:
(a) Bound docuraents.--Ihe assigned defense classification on bound docuraents,
such as books or paraphlets, the pages of which are perraanenfly and securely fastened
together, shaU be conspicuously marked or stamped on the outside of the front cover,
on the title page, on the first page, on the back page, and on the outside of the back
cover. In each case the markings shaU be applied to the top and bottom of the page or
cover.
(b) Unbound docuraents.--The assigned defense classification on unbound docuraents,
such as letters, raeraoranda, reports, telegrams, and other similar docuraents, the
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1954 REPORT OF THE SECRETARY OF THE TREASURY
pages of which are itot perraanenfly and securely fastened together, shaU be conspicuously raarked or staraped at the top and bottora of each page. In such raarmer that
the marking wfll be clearly visible when the pages are cUpped or stapled together.
(c) Charts, maps, and drawings.—Classified charts, maps, and drawings shaU carry
the defense classification marking under the legend, tlfleblock, or scale In such manner
that It wfll be reproduced on aU copies made therefrom. Such classification shaU also
be raarked at the top and bottora In each instance.
(d) Photographs, films, and recordings.—Classified photographs, fflras, and recordings, and their containers, shaU be conspicuously and appropriately marked with the
assigned defense classification.
(e) Products or substances.—The assigned defense classification shaU be conspicuously raarked on classified products or substances, if possible, and on their containers. If possible, or. If the article or container cannot be raarked, written notification
of such classification shaU be furnished to recipients of such products or substances.
(f) Reproductions. - - AU copies or reproductions of classified raaterial shaU be
appropriately raarked or staraped In the sarae raanner as the original thereof.
(g) Unclassified raaterial.--NorraaUy, unclassified raaterial shaU not be marked or
staraped Unclassifled unless It Is essential to convey to a recipient of such raaterial
that It has been exarnined specificaUy with a view to Iraposing a defense classification
and has been deterrained not to require such classification.
(h) Change or reraoval of classification.--Whenever classified raaterial Is declassified, downgraded, or upgraded, the material shaU be raarked or staraped In a prorainent
place to reflect the change in classification, the authority for the action, the date of
action, and the Identity of the person or unit taking the action. In addition, the old
classification raarklng shaU be canceled and the new classification (if any) substlmted
therefor. Autoraatic change In classification shaU be Indicated by the appropriate
classifying authority through raarklng or staraping in a prorainent place to reflect Inforraation specified in subsection 4 (a) hereof.
(I) Material furnished persons not In the executive branchof the Governraent.--When
classified raaterial affecting the national defense is furnished authorized persons. In or
out of Federal service, other than those in the executive branch, the foUowing notation,
in addition to the assigned classification marking. shaU whenever practicable be placed
on the raaterial. on its container, or on the written notification of its assigned classification:
"This raaterial contains inforraation affecting the national defense of the United
States within the raeaning of the espionage laws. Title 18, U.S.C, Sees. 793 and 794.
the transraission or revelation of which in any raanner to an unauthorized person Is
prohibited by law."
Use of alternative raarklng concerning "Restricted Data" as defined by the Atoraic
Energy Act Is authorized when appropriate.
Section 6. Custody and safekeeping.--The possession or use of classified defense
inforraation or raaterial shaU be Uralted to locations where faciUties for secure storage
or protection thereof are avaflable by raeans of which unauthorized persons are prevented frora gaining access thereto. Whenever such Inforraation or raaterial Is not
under the personal supervision of Its custodian, whether during or outside of working
hours, the foUowing physical or raechanical rneans shaU be taken to protect It:
(a) Storage of TOP SECRET raaterlaU—TOP SECRET defense raaterial shaU be
protected In storage by the raost secure facflities possible. NorraaUy It wfll be stored
In a safe or a safe-type steel ffle container having a three-position, dial-type, corabination lock, and being of such weight, size, constmction, or InstaUation as to miniraize
the possibiUty of surreptitious aitry, physical theft, daraage by flre, or tarapering. The
head of a departraent or agency raay approve other storage faciUties for this raaterial
which offer coraparable or better protection, such as an alarraed area, a vault, a secure
vault-type roora, or an area under close surveillance of an arraed guard.
EXHIBITS
371
(b) SECRET and CONFIDENTIAL raaterlaU—These categories of defense raaterial
raay be stored In a raanner authorized for TOP SECRET raaterial, or in raetal ffle
cabinets equipped with steel lockbar and an approved three combination dial-type padlock from which the manufacmrer's Identification numbers have been obUterated, or
In comparably secure faciUties approved by the head of the department or agency.
(c) Other classified material.--Heads of departraents and agencies shaU prescribe
such protective faciUties as may be necessary in their departraents or agencies for
raaterial originating under stamtory provisions requiring protection of certain inforraation.
(d) Changes of lock combinations.--Combinations on locks of safekeeping equipment
shaU be changed, only, by persons having appropriate security clearance, whenever
such equipment Is placed In use after procureraent frora the manufacmrer or other
sources, whenever a person knowing the combination is transferred frora the office to
which the equipraent Is assigned, or whenever the corabination has been subjected to
coraproralse, and at least once every year. Knowledge of combinations shaU be limited
to the rainimura nuraber of persons necessary for operating purposes. Records of
combinations shaU be classified no lower than the highest category of classified defense
material authorized for storage in the safekeepmg equipraent concerned.
(e) Custodian*s responsibflities.—Custodians of classified defense material shaU be
responsible for providing the best possible protection and accountabUity for such material at aU tiraes and particularly for securely locking classUied raaterial In approved
safekeeping equipraent whenever it is not in use or under direct supervision of authorized eraployees. Custodians shaU foUow procedures which insure that unauthorized
persons do not gain access to classified defense information or raaterial by sight or
sound, and classified inforraation shaU not be discussed with or in the presence of unauthorized persons.
(0 Telephone conversations.—Defense Inforraation classified in the three categories
under the provisions of this order shaU not be revealed In telephone conversations,
except as raay be authorized under section 8 hereof with respect to the transmission of
SECRET and CONFIDENTIAL material over certain raiUtary coramunications circuits.
(g) Loss or subjection to compromise.--Any person In the executive branch who has
knowledge of the loss or possible subjection to coraproralse of classified defense information shaU proraptiy report the circurastances to a designated official of his agency,
and the latter shaU take appropriate action forthwith, including advice to the originating
departraent or agency.
Section 7. Accountabflity and dissemination.—Knowledge or possession of classified
defense inforraation shaU be perraitted only to persons whose official duties require
such access In the interest of proraoting defense and only if they have been deterrained
to be trustworthy. Pi-oper control of dissemination of classified defense inforraation
shaU be raaintained at aU tiraes, including good accoimtabiUty records of classified
defaise inforraation docuraents, and severe liraitation on the nuraber of such docuraents
originated as weU as the nuraber of copies thereof reproduced. The nuraber of copies
of classified defense information docuraents shaU be kept to a rainiraura to decrease
the risk of coraproralse of the inforraation contained in such docuraents and the financial burden on the Government in protecting such docuraents. The following special
rules s^iaU be observed in connection with accountabiUty for and dissemination of defense information or raaterial:
(a) AccountabiUty procedures.—Heads of departraents ahd agencies shaU prescribe
such accountabflity procedures as are necessary to control effectively the disserainatlon of classified defense Inforraation, with particularly severe control on raaterial
classified TOP SECRET under this order. TOP SECRET Control Officers shaU be
designated, as required, to receive, raaintain accountabiUty registers of, and dispatch
TOP SECRET raaterial.
(b) Dlsseraination outside the executive branch.--Classified defense Inforraation
shaU not be disseminated outside the executive branch except under conditions and
through channels authorized by the head of the disseminating departraent or agency.
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1954 REPORT OF THE SECRETARY OF THE TREASURY
even though the person or agency to which dissemination of such information is proposed to be made raay have been solely or partiy responsible for its production.
(c) Inforraation originating in another department or agency.--Except as otherwise
provided by Section 102 of the National Security Act of July 26,1947, c. 343, 61 Stat.
498, as araended, 50 U.S.C. Sec. 403, classified defense inforraation originating in
another department or agency shaU not be disseminated outside the receivmg department or agency without the consent of the originating departraent or agoicy. Documents
and raaterial containing defense mformation which are classified TOP SECRET or
SECRET shaU not be reproduced without the consent of the originating department or
agency.
Section 8. Transmission.--For transmission outside of a department or agency,
classified defense raaterial of the three categories originated under the provisions of
this order shaU be prepared and transraltted as foUows:
(a) Preparation for transmission.--Such material shaU be enclosed in opaque inner
and outer covers. The inner cover shaU be a sealed wrapper or envelope plainly
raarked with the assigned classification and address. The outer cover shaU be sealed
and addressed with no indication of the classification of its contents. A receipt form
shaU be attached to or enclosed In the Inner cover, except that CONFIDENTIAL material shaU require a receipt only if the sender deems it necessary. The receipt
forra shaU identify the addressor, addressee, and the docuraent, but shaU contain no
classified inforraation. It shaU be signed by the proper recipient and remrned to the
sender.
(b) Transraitting TOP SECRET material.—The transmission of TOP SECRET material shaU be effected preferably by direct contact of officials concerned, or, alternatively, by specificaUy designated personnel, by State Department diplomatic pouch, by
a messenger-courier system especiaUy created for that purpose, or by electric means
in encrypted form; or in the case of information transmitted by the Federal Bureau of
Investigation, such means of transmission may be used as are currentiy approved by
the Director, Federal Bureau of Investigation, unless express reservation to the contrary is raade In exceptional cases by the originating agency.
(c) Transraitting SECRET material.--SECRET material shaU be transmitted within
the continental United States by one of the means estabUshed for IOP SECRET material, by an authorized courier, by United States registered mafl. br by protected
coraraercial express, air or surface. Secret raaterial may be transmitted outside the
continental limits of the United States by one of the raeans estabUshed for IOP SECRET
raaterial, by commanders, or masters of vessels of United States registry, or by
United States post office registered mafl through Army, Navy, or Air Force postal faciUties, provided that the raaterial does not at any tirae pass out of United States Government control and does not pass through a foreign postal system. SECRET material
raay, however, be transraltted between United States Government and/or Canadian
Government instaUations In continental United States, Canada, and Alaska by United
States and Canadian registered mall with registered mafl receipt. In an emergency,
SECRET material may also be transmitted over miUtary communications circuits in
accordance with regulations promulgated for such purpose by the Secretary of Defense.
(d) Transmitting CONFIDENTIAL raaterial.—Confidential defense material shaU
be transmitted within the United States by one of the means estabUshed for higher
classifications, by registered mafl, or by express or freight under such specific conditions as may be prescribed by the head of the department or agency concerned. Outside
the continental United States, CONFIDENTIAL defense material shaU be transmitted in
the same manner as authorized for higher classifications.
(e) Within an agency.--Preparation of classified defense material for transmission,
and transmission of it. within a department or agency shaU be governed by regulations,
Issued by the head of the department or agency, insuring a degree of security equivalent
to that outilned above for transmission outside a department or agency.
Section 9. Disposal and destruction.--Documentary record material made or r e ceived by a department or agency In connection with transaction of pubUc business and
EXHIBITS
37 3
preserved as evidence of the organization, functions, policies, operations, decisions,
procedures or other activities of any department or agency of the Governmem, or
because of the informational value of the data contained therein, may be destroyed only
in accordance with the act of July 7. 1943, c. 192, 57 Stat. 3.80. as amended, 44 U.S.C.
366-380. Nonrecord classified material, consisting of extra copies and duplicates ijicluduig shorthand notes, preliminary drafts, used carbon paper, and other material
of similar temporary namre, may be destroyed, under procedures established by the
head of the department or agency which meet the foUowing requirements, as soon as ir
has served its purpose:
(a) Methods of destruction.--Classified defense material shaU be destroyed by
burning m the presence of an appropriate official or by other methods authorized by xhe
head of an agency provided the resulting destruction is equaUy complete.
(b) Records of destruction.--Appropriate accountability records maintained in the
department or agency shaU reflect the destruction of classified defense material.
Section 10. Orientation and inspection.--lb promote the basic purposes of this
order, heads of those departments and agencies originating or handling classified defense information shaU designate experienced persons to coordinate and supervise the
activities appUcable to their departments or agencies under this order. Persons so
designated shaU maintain active training and orientation programs for employees concerned with classified defense information to impress each such employee with his
individual responsibflity for exercising vigflance and care in complying with the provisions of this order. Such persons shaU be authorized on behaU of die heads of the departments and agencies to estabUsh adequate and active inspection programs to the
end that the provisions of this order are administered effectively.
Section 11. Literpretation of regulations by the Attorney General.--The Attorney
General, upon request of the head of a department or agency or his duly designated
representative, shaU personaUy or through authorized representatives of the Department of Justice render an mterpretation of these regulations in comiection with any
problems arising out of their administration.
Section 12. Stamtory requirements.--Nothing in this order shaU be construed to
authorize the dissemination, handling, or transmission of classified information contrary to the provisions of any statute.
Section 13. "Restricted Data" as defined in the Atomic Energy Act.--Nothing in this
order shaU supersede any requirements made by or under the Atomic Energy Act of
August 1. 1946. as amended. "Restricted Data" as defined by the said act shaU be
handled, protected, classified, downgraded, and declassified in conformity with the provisions of the Atomic Energy Act of 1946, as amended, and the regulations of the
Atomic Energy Commission.
Section 14. Combat operations.--The provisions ofthis order with regard to dissemination, transmission, or safekeeping of classified defense information or material
may be so modified in connection with combat or combat-related operations as the
Secretary of Defense may by regulations prescribe.
Section 15. Exceptional cases.--When, in an exceptional case, a person or agency
not authorized to classify defense information originates information which is beUeved
to require classification, such person or agency shaU protect that information in the
manner prescribed by this order for that category of classified defense information
into which it is beUeved to faU, and shaU transmit the information forthwith, under
appropriate safeguards, to the department, agency, or person having both the authority
to classify information and a direct official interest in the information (preferably,
that department, agency, or person to which the information would be transmitted in
the ordinary course of business), with a request that such department, agency, or
person classify the information.
Section 16. Review to insure that information is not improperly withheld hereunder.--The President shaU designate a member of his staff who shaU receive, consider, and take action upon, suggestions or complaints from nongovernmental spurces
relating to the operation of this order.
374
1954 REPORT OF THE SECRETARY OF THE TREAStlRY
Section 17. Review to insure safeguarding of classified defense information.--The
National Security Council sliaU conduct a continuing review of the implementation of
This order to insure that classified defense information is properly safeguarded, in
conformity herewith.
Section 18. Review within departments and agencies.--The head of each department
and agency shaU designate a member or members of his staff who shaU conduct a continuing review of the implementation of this order withm the department or agency
concerned lo insure chat no information is withheld hereunder which the people of the
United Stales have a right to know, and to insure that classified defense information is
properly safeguarded in conformity herewith.
Section 19. Revocation of Executive Order No. 10290.--Executive Order No. 10290
of September 24, li)ol, is revoked as of the effective date of this order.
Section 20. Effective date.--This order shaU become effective on December 15,
1953.
Dwight D. Eisenhower.
THE WHITE 1 lOUSE, November 5, 1953.
Memorandum for the Heads of All Departments and Agencies of the Government
The foUowing departments and agencies of the executive branch and their constiment agencies shaU be subject to the limitations specified hi section 2 of the Executive order entitied "Safeguarding Official liiformati.on in the Literests of the Defense
ofthe United Stales":
A. Original classification authority eliminated:
1. American Battle Monuments Commission
2. Arlington Memorial Amphitheater
Commission
3. Commission of Fine Arts
4. Committee on Purchases of BlindMade Products
5. Committee for Reciprocity Liform a tion
G„ Commodity Exchange Commission
7. Export-Import Bank of Washington
8. Federal IDeposit Insurance Corporation
9. Federal Mediation and ConcUiation
Service
10. Federal Reserve System
11. Federal Trade Commission
12. Housing and Home Finance Agency
13. hidian Claims Commission
14. Interstate Commerce Commission
15. Missouri Basin Survey Commission
X6. National Capital Housing Authority
17. National Capital Park and Planning
Commission
18. National Forest Reservation Commission
19. National Labor Relations Board
20. National Mediation Board
21. RaUroad Retirement Board
22. Securities and Exchange Commission
23. Selective Service System
24. Smithsonian Institution
25. United States Tariff Commission
26. Veterans Administration
27. Veterans Education Appeals Board
28. War Claims Commission
B. Original class ifica lion authority limited to head of agency:
1.
2.
3.
4.
Civfl Aeronautics Board
Defense Transport Admmistration
Department of Agriculmre
Department of Health, Education,
and Welfare
5. Department of the Interior
6. Department of Labor
7, Federal Communications Commis sion
8. Federal Power Conunission
EXHIBITS
9. National Science Foundation
10. National Security Training Coramlsslon
11. Panama Canal Corapany
12. Post Office Department
13. Reconstruction Finance Corporation
37 5
14. Renegotiation Board
15. SmaU B u s i n e s s
Adrainistration
16. Subversive Activities C o n t r o l
Board
17. Tennessee Valley Authority
C. Heads of departments and agencies not named herein shaU lirait the exercise of
classification authority in accordance with section 2(c) of the order.
Dwight D. Elsenhower.
THE WHITE HOUSE, November 5. 1953
NO. 160-2. MAY 19, 1954, DESIGNATION OF ADMINISTRATIVE ASSISTANT
SECRETARY TO TAKE FINAL ACTIONS IN PERSONNEL SECURITY CASES
Pursuant to the authority contained in the act of August 26, 1950 (64 Stat. 476, c.
803); Executive Order No. 10450, approved Aprfl 27, 1953 (18 F.R. 2489), as amended
by Executive Order No. 10491, approved October 13,1953 (18.F.R. 6583); and Reorganization Plan No. 26 of 1950 (15 F.R. 4935, 64 Stat. 1280), the Administrative Assistant
Secretary of the Treasury is hereby designated, under Section 5 (h) of the said Treasury
Department Order No. 82, Revised, to review the ffles of, and take final actions in,
personnel security cases, processed pursuant to. Subsections (f) or (g) of Section 5 of
the said Treasury Department Order No. 82, Revised.
G. M. Huraphrey,
Secretary of theTreasury.
NO. 162-2, NOVEMBER 2, 1953, DELEGATION OF AUTHORITY TO THE
COMIVlISSIONER OF ACCOUNTS TO PERFORM FISCAL LIQUIDATION
OF THE ECONOMIC STABILIZATION AGENCY
By virme ofauthorityvestedui rae by Reorganization Plan No. 26 of 1950, the authority
conferred upon the Secretary of the Treasury by Executive Order No. 10494 dated
October 14. 1953, to perform such functions as reraain In connection with the fiscal
Uquidation of the Ecoriomic Stabilization Agency is hereby delegated to the Commissioner of Accounts.
A. N. Overby.
Acting Secretary of the Treasury.
NO. 165-1. AUGUST 13. 1953. DELEGATION TO COMMISSIONER OF CUSTOMS CJ^
AUTHORITY VESTED IN THE SECRETARY OF THE TREASURY
BY CERTAIN STATUTES
By virme of the authority vested in me by Section 3 of the act of March 3, 1927 (5
U.S.C. 281b). and Reorganization Plan No. 26 of 1950 (15 F.R. 4935; 3 CFR, 1950 Supp.,
page 178), It is hereby ordered:
1. There are hereby transferred to the Commissioner of Customs aU the functions,
rights. privUeges. powers, and duties vested In the Secretary of the Treasury by (a)
the Customs Simplification Act of 1953 (67 Stat. 507-521) and (b) the act of August 13,
37 6
1954 REPORT OF THE SECRETARY OF THE TREASURY
1953 (67 Stat. 577), amending Section 1 of Titie VI of the act of June 15, 1917, 40 Stat.
223, as amended (22 U.S.C. 401).
2. AU functions, rights, privileges, powers, and duties transferred by this order
may be delegated by the Coramissioner of Custoras to subordinates in the Bureau of
Customs in such manner as he shaU from time to time direct.
H. Chapman Rose,
Acting Secretary of the Treasury.
NO. 165-2, OCTOBER 29. 1953, TRANSFER OF FUNCTION OF REFUNDING CERTAIN
EXCESS DEPOSITS OF INTERNAL-REVENUE TAX TO THE COMMISSIONER
OF CUSTOMS
By virtue of the authority vested in me by Reorganization Plan No. 26 of 1950 (3
CFR, 1950 Supp. ch. Ill), it is hereby ordered that effective January 1, 1954, there shall
be transferred from the Commissioner of Internal Revenue to the Commissioner of
Customs the function of refunding excess deposits of internal-revenue tax, previously
coUected by coUectors of customs, which are found by coUectors of custoras upon
liquidations or rellquldatlons made on or after January 1. 1954, to be due and the functions prescribed by 26 U.S.C. 3771(a), (b) (2) (53 Stat. 465) of determining, allowing,
and paying interest in cormection with such refiinds.
Ihe functions herein transferred may be delegated by the Coramissioner of Customs
to other officers or employees of the Customs Service In such manner as the Commissioner shaU direct.
H. Chapman Rose,
Acting Secretary of the Treasury.
NO. 165-3, DECEMBER 7, 1953, ESTABLISHMENT OF OFFICE OF DEPUTY
COMMISSIONER (TARIFF AND MARINE ADMINISTRATION) m THE BUREAU
OF CUSTOMS
By vlrme of the authority vested in me as Secretary of the Treasury, there is
hereby established in the Bureau of Customs a new office designated as Deputy Commissioner of Customs (Tariff and Marine Administration). This office shaU have supervision of the Division of Classification, Entry and Value, the Division of Drawbacks,
Penalties, and Quotas, and the Division of Marine Administration.
H, Chapman Rose,
Acting Secretary of the Treasury.
NOS. 167-4 to 167-8, DELEGATION OF CERTAIN FUNCTIONS TO THE
COMMANDANT, U. S. COAST GUARD
No. 167-4, August 17, 1953
Pursuant to the authority vested In me as Secretary of the Treasury, including the
authority in Titie 14, United States Code, specificaUy Sections 92, 631, and 633, and the
authority In Reorganization Plan No. 26 of 1950 (15 F.R. 4935), there are hereby delegated to the Commandant, United States Coast Guard, the fimctions of the Secretary of
the Treasury set forth below. The Commandant is authorized to redelegate any function
herein delegated to the extent that he raay deem to be necessary or appropriate. The
functions herein delegated include those vested in me by:
EXHIBITS
377
(1) 33 U.S.C. 747b, to prescribe rules for paying acmal and necessary traveling
expenses of lighthouse keepers at isolated stations incurred in obtaining medical
attention.
(2) 33 U.S.C. 748, toprescribe regulations for the payment of traveling and subsistence
expenses of teachers while acmaUy employed by States or private persons to instmct
the children of keepers of lighthouses.
(3) 33 U.S.C. 748a. to prescribe regulations for the transportation of the children of
lighthouse keepers at isolated light stations where necessary to enable such chfldren to
attend school.
H. Chapman Rose,
Acting Secretary of the Treasury.
No. 167-5. September 2, 1953
Pursuant to the authority vested in me as Secretary of the Treasury by Reorganization Plan No. 26 of 1950 (15 F.R. 4935). there are hereby transferred to the Commandant, U . S . Coast Guard, the duties and functions vested in the Secretary of the
Treasury by PubUc Law 73. 83rd Congress, 1st Session, to determine that schools,
if any. available in a locaUty outside the continental United States are unable to provide
adequately for the education of dependents of Coast Guard personnel in such locality
and to determine the amount that may be expended from the appropriations for the Coast
Guard in payment of the expenses of primary and secondary schooUng of and the transportation between schools and places of residence of such dependents.
The Commandant may delegate to officers of the Coast Guard duties and functions
herein transferred to the extent that he may deem necessary and appropriate.
A. N. Overby.
Actmg Secretary of the Treasury.
No. 167-6. November 17. 1953
Pursuant to the authority vested in me as Secretary of the Treasury, as provided in
Sections 92, 631, and 633 in Utie 14, United States Code. Reorganization Plan No. 26 of
1950 (15 F.R. 4935), and Sections 143a. 356, and 360 in Title 33, United States Code,
there is hereby delegated to the Commandant, United States Coast Guard, those functions of the Secretary of the Treasury with respect to certain statutory rules for p r e venting marine collisions as appUcable to Coast Guard vessels. The functions herein
delegated are those vested in me by:
(1) 33 U.S.C. 143a (October 11. 1951. Sec. 2, 65 Stat. 407), with respect to Ughts r e quired by the "Regulations for Preventing ColUsions at Sea, 1948", for a Coast Guard
vessel or class of vessels.
(2) 33 U.S.C. 356 (May 21, 1948, Sec. 4.62 Stat. 250). with respect to any requirement
of a nautical rule for preventing collisions for the Mississippi River and its tributaries
above the Huey P. Long Bridge, that part of the Atchafalaya River above its junction
with the Plaquemine-Morgan City alternate waterway, and the Red River of the North,
for a Coast Guard vessel or class of vessels.
(3) 33 U.S.C. 300 (December 3, 1945, Sec. 1, 59 Stat. 590), with respect to lights required by any applicable nautical rule for preventing collisions on navigable waters of the
United States, or its Ibrritorles or possessions, for a Coast Guard vessel or class of
vessels.
In performing functions delegated, the Commandant shaU be governed by the applicable provisions and conditions set forth in these laws. The Commandant is authorized
378
1954 RERJRT OF THE SECRETARY OF THE TREASflRY
to redelegate any function herein delegated to the extent that he may deem necessary or
appropriate.
H. Chapman Rose.
Acting Secretary of the Treasury.
No. 167-7, November 30. 1953
By virme of the authority vested in me as Secretary of the Treasury and the authority in Reorganization Plan No. 26 of 1950 (15 FIR. 4935). there are hereby delegated
to the Commandant. U. S. Coast Guard, the functions of the Secretary of the Treasury
set forth below and aU action taken thereunder prior to the effective date of this order
is hereby ratified. The Commandant is authorized to redelegate the functions herein
delegated. 'Ihese functions include those vested m me by the foUowing sections of the
act of July 9, 1952 (66 Stat. 481):
(1) Section 209 (a), to give or withhold consent required for enUstmeni or appointment of a Coast Guard Reservist In another Armed Force of the United States.
(2) Section 217 (c), to convene and take final action approving or disapproving the
recommendations of the board of officers provided for therein.
(3) Section 232, to determme whether or not appUcants for appointment or enUstment
in the Coast Guard Reserve may be appointed or enUsted notwithstanding the existence
of a physical defect.
(4) Section 233, to order Reserve personnel to extended active duty or active duty for
training under the conditions and to the extent provided for therein.
(5) Section 234, to order to and retain on active duty, with their consent. Reserve
personnel to perform duties in connection with the organizing, administering, recruiting, mstructing, or traming of the Coast Guard Reserve.
(6) Section 235, (a), to enter into a standard written agreement with Reserve personnel for periods of active duty service not to exceed five (5) years.
(7) Section 239, to release from extended active duty or active duty for training any
member of the Coast Guard Reserve at any time.
(8) Section 249 (a), to convene boards of officers provided for therein.
(9) Section 253, to detail such members of the Regular Coast Guard and of the Coast
Guard Reserve as may be necessary to develop, train, instruct, and administer the
Coast Guard Reserve.
(10) Section 255, to make available to the Coast Guard Reserve such suppUes, equipment, services, and facilities of the Regular Coast Guard as he may deem necessary
and advisable for the support and development of the Coast Guard Reserve without
charging the costs or value thereof, or any expenses in connection therewith, against
the appropriation provided for the Coast Guard Reserve and to repossess or redistribute such equipment and suppUes as he finds to be in the best interest of the United
States.
H. Chapman Rose,
Acting Secretary of the Treasury.
No. 167-8, January 14, 1954
By vlrme of the authority vested In me by Reorganization Plan No. 26 of 1950, there
is transferred to the Commandant. United States Coast Guard, the function of certifying,
where such a certification is required by stamte or otherwise, that an officer of the
Coast Guard was duly commissioned and in active service at a specified time.
H. Chapman Rose.
Acting Secretary of the Treasury.
EXHIBITS
379
NO. 173, REVISION NO. 1. MARCH 19, 1954, DELEGATION OF AUTHORITY
RELATING TO OFFENSES WITH RESPECT TO COINS, OBLIGATIONS.
AND SECURITIES OF THE UNITED STATES AND FOREIGN GOVERNMENTS
By virme of the authority vested in rae by Reorganization Plan No. 26 of 1950. there
Is hereby delegated to the Chief, United States Secret Service, authority to perform any
fimction of the Secretary of the lireasury under Titie 18, U.S.C, Sections 474, 476,
477, 481, 486, 487. 488, 489, 491(a), or 492 relating to offenses with respect to coins,
obligations, and securities of the United States and foreign governments, and the remission or mitigation of forfeiture of counterfeiting paraphernalia.
H. Chaprnan Rose,
Acting Secretary of the Treasury.
NO. 177, OCTOBER 19, 1953, DELEGATION OF AUTHORITY tO PERFORM CERTAIN
FUNCTIONS RELATING TO PURCHASE, CUSTODY, TRANSFER, AND SALE OF
FOREIGN EXCHANGE
By virme of authority vested In rae by Reorganization Plan No. 26 of 1950 and Section
161 of the Revised Stamtes (5 U.S.C. 22), there is hereby delegated to the Fiscal Assistant Secretary of the Treasury authority to perform any function of the Secretary of the
Treasury under the provisions of Department Circular No. 930, 31 CFR 281, governing
the purchase, custody, transfer, and sale of foreign exchange by executive departments
and agencies of the United States, including authority to waive the provisions of the c i r cular in particular cases.
G. M. Humphrey,
Secretary of the Treasury.
NO. 177-1, NOVEMBER 12, 1953, DELEGATION OF AUTHORITY TO MAKE THE
CERTIHCATION TO THE POSTMASTER GENERAL REQUIRED BY SECTION 306
OF THE PENALTY MAIL ACT
By virme of the authority vested In me by Reorganization Plan No. 26 of 1950, there
Is hereby delegated to the Administrative Assistant Secretary the function of making tlie
certification required by Section 306 of the act of June 25, 1948 (39 U.S.C. 321n).
The Administrative Assistant Secretary is further erapowered, within his discretion,
to redelegate such function.
M. B. Folsom,
Acting Secretary of the Treasury.
NO. 177-2, DECEMBER 1, 1953, DELEGATION OF AUTHORIIY RELATING TO
CERTAIN FUNCTIONS UNDER THE REFUGEE RELIEF ACT OF 1953
By virme of the authority vested in me by Reorganization Plan No. 26 of 1950. the
Fiscal Assistant Secretary shaU be my designee under the provisions of the regulations
In Part 290 of Titie 31, Code of Federal Regulations, relating to the making of loans to
pubUc or private agencies of the United States for the purpose of financing the transportation frora ports of entry within the UnitedStates to the places of their resettleraent
of persons receiving Iraraigrant visas under the Refugee ReUef Act of 1953, approved
Septeraber 16, 1953.
M. B. Folsora,
Acting Secretary of the lireasury.
380
1954 REPORT OF THE SECRETARY OF THE TREASURY
NO. 178, OCTOBER 20, 1953, DELEGATION OF AUTHORITY TO SIGN CHECKS
DRAWN AGAINST DEPOSIT ACCOUNTS OF THE SECRETARY OF THE TREASURY
There Is hereby delegated to the Chief Disbursmg Officer authority to sign checks
drawn against the deposit accounts of the Secretary of the Treasury. These checks
shaU be signed
Secretary of the Treasury,
By — —
—
Chief Disbursing Officer.
A. N, Overby,
Acting Secretary of the Treasury.
•^ NO. 179, NOVEMBER 19, 1953, TRANSFER OF FUNCTIONS PERTAINING TO
DISTRIBUTION OF COINS TO THE BUREAU OF THE MINT
1. Pursuant to the authority vested In rae by Reorganization Plan No. 26 of 1950,
there are hereby transferred frora the Treasurer of the United States to the Bureau of
the Mint to be performed In such manner as the Director of the Mint may designate,
effective December 1, 1953, the functions pertainmg to the distribution and transfer of
current and uncurrent coins araong the mints, FederalReserve Banks, Federal Reserve
branches, the Treasurer of the United States, and such other persons or instimtions as
may be necessary.
2. Such records as are deterrained to be necessary to perforra the foregoing functions
shaU be rnade avaflable by the Treasurer of the United States, to the Bureau of the Mint,
G. M. Humphrey,
Secretary of the Treasury.
NOS. 180 AND 180-1, DELEGATIONS OF FUNCTIONS IO THE
COMMISSIONER OF NARCOTICS
No. 180, Noveraber 17, 1953
By vlrme of the authority vested in me by Reorganization Plan No. 26 of 1950, it is
ordered as follows:
1. There are transferred to the Commissioner of Narcotics aU the functions ofthe
Secretary of the Treasury, the Under Secretary of the Treasury, or any Assistant Secretary of the Treasury under Section 3761(a) of the Internal Revenue Code with respect
to the compromise of any criminal case arising under Chapter 23 or PartV or VI of
Subchapter A of Chapter 27 of the Internal Revenue Code, except where the criminal
liabiUty relates only to delinquency in registration or delinquency in payraent of tax.
2. In any case in which a general offer is raade in compromise of civfl or criminal
UabiUty comproralsable by the Commissioner of Internal Revenue and of criminal
UabiUty compromisable by the Commissioner of Narcotics, they raay jointiy exercise
the authority of the Secretary, the Under Secretary, or any Assistant Secretary under
Section 3761(a) of the Internal Revenue Code.
3. Treasury Department Order No. 150-25, dated June 1, 1953, Is modified accordingly.
H. Chapman Rose,
Acting Secretary of the IVeasury.
EXHIBITS '
381
No. 180-1, December 9. 1953
By vlrme of the authority vested In me by Reorganization Plan No. 26 of 1950, there
is hereby delegated to the Commissioner of Narcotics authority to perform any function
of the Secretary of the Treasury under the act of August 9, 1939, 53 Stat. 1291 (49
U.S.C. 781 et seq.), and under Part 153 of Title 26 of the Code of Federal Regulations,
relating to the remission or mitigation of forfelmres incurred in connection with those
contraband articles that are classified by the act under the term "narcotic d m g . "
H, Chapman Rose,
Acting Secretary of the lireasury.
NO. 181, JUNE 30, 1954, ESTABLISHMENT OF OFFICES AND TRANSFER OF
FUNCTIONS PERTAINING TO LIQUIDATION AND LENDING
By virme of the authority vested in nie as Secretary of the lireasury, including the
authority in Reorganization Plan No. 26 of 1950, it is ordered as foUows:
1. There are transferred to Assistant to the Secretary Robbins aU of the functions
of the Secretary of the Treasury under Section 10 of the Reconstmction Finance Corporation Act, as amended.
2. There Is estabUshed in the Office of the Secretary the Office of Defense Lending,
at the head of which there shaUl^ean Executive Director. Ihe Office of Defense Lendmg
shaU consist of such personnel In addition tothe Executive Director as may be assigned
to it from time to time.
3. There are transferred to the Executive Director of the Office of Defense Lending
aU of the functions of the Secretary of the Treasury under Section 409 of the Federal
Civil Defense Act of 1950 and Section 302 of the Defense Production Act of 1950, as
araended.
4. The Executive Director of the Office of Defense Lending and the Administrator of
the Federal Facflities Corporation shaU report to Assistant to the Secretary Robbins.
who shaU report to the Deputy to the Secretary.
5. The Reconstruction Finance Corporation, the Office of Defense Lending, and the
Federal Facflities Corporation shaU be subject to the provisions of Department Circular No. 519, dated June 20, 1934, relating to the administration of legal activities by
the General Counsel.
6. This order shaU become effective July 1, 1954.
G. M. Humphrey,
Secretary of the Treasury.
339256 O - 55 - 26
REPORTING AND ACCOUNTING CHANGES
Exhibit 69. —Joint proposal by the Secretary of the Treasury, the Director of the Bureau of the Budget, and the
Comptroller General of the United States to improve the
receipt and expenditure reports of the Federal Government
October 5, 1953
A. Backgro und
This proposal was developed as another major step in achieving the objectives of
the Joint Accounting Improvement Program and in carrying out the policy laid down
by the Congress in the Budget and Accounting Procedures Act of 1950, namely, that
the accounting of the Government provide fuU disclosure of the results of financial
operations and adequate financial information needed in the management of operations
and the formulation and execution of the Budget. More specificaUy, the recommendations presented herein are designed to improve the consistency, presentation, and
usefulness of receipt and expendimre data and thereby capitalize on the simplifications
and improvements in agency-Treasury relationships achieved under the joint accounting
program in the accounting for cash transactions.
In the absence of a weU conceived overaU accounting plan, several series of receipt
and expendimre data were developed to meet the varying simations arising over the
years. These data were derived on different bases and from different sources. However, because of the similarity of coverage, the distinctions between the several series
are not generaUy understood and. accordingly, confusion has resulted.
B.
P u r p o s e s for which data a r e
needed
Within the Government the daily cash income and outgo is one of the basic factors in
determining financing requirements. However, a classification of transactions by
sources and by appropriations and funds, together with significant summaries, on a
less frequent but timely basis, is essential for budget administration. This is particularly so when emphasis is being placed upon control of expendimres as weU as the
incurring of obligations. In addition, the accumulation of receipt and expendimre data
is required for historical and comparative purposes in reporting upon the results of
the financial operations of the Government in such documents as the "Combined Statement of Receipts. Expendimres and Balances" and "The Budget," as weU as for the
furnishing of special reports to congressional committees. Moreover, many others in
Government depend, in part, on these several presentations of data in carrying out
their respective functions.
The public, of course, has a great interest in timely data reflecting Government
financial activities. Here, again, varying purposes are served by the several presentations of data. One group Is primarily concerned with the overaU effect of receipts and
expendimres. while others are concerned with particular segments of the total, such
as foreign aid.
Over the years, a figure characterized as "budget surplus or deficit" has become a
widely used yardstick in gauging the significance of the financial operations of the
Government.
Because of the varied uses to which receipt and expendimre data are put by different
groups, it is obvious that no one aU-purpose presentation either as to time periods or
as to the detafl of classification can effectively serve aU groups. However, it seems
obvious that such data should be presented on a consistent basis with due regard to
timeliness balanced with accounting preciseness and economy of operations.
C.
Recommended
program
The following recommendations deal with the steps necessary to obtain monthly a
cumulative classification of receipts and expendimres. They are designed to give fiiU
recognition to the varying needs of the several groups which use these data and to
382
EXHIBITS
383
arrive at a balance between the need for timely data classified to the extent necessary
to serve Its intended purpose and the practical limitations involved m obtaining the
data. Further, there wlU be an integration of agency-Treasury data on the common
ground of accounting for cash transactions and the budget results wlU be susceptible
of reconcUiation with transactions affecting the cash balance in the Treasury and the
outstanding public debt, after taking Into consideration such Items as outstanding checks,
undeposited coUections, deposits In transit, etc. In this connection. Treasury wfll develop the necessary reporting requireraents. The General Accounting Office wfll p r e scribe the necessary accounting requireraents and coUaborate with the Treasury and
the Individual agencies in order to develop the necessary procedures.
These recoramendations do not deal with the needs for data on cash income and outgo
except to the extent which they touch upon practices now foUowed in the publication of
such data.
1. Receipts. - -Reports wfll be based upon present practices i. e., coUections or
confirmed deposits. Efforts should be continued to convert aU activities to a coUection
basis in the interests of improved reporting.
2. Expenditures.--Reports wiU be based upon payments made, I. e., checks Issued
and cash disbursements. In those cases where the disbursing function Is perforraed by
the Treasury, the data wiU be furnished frora Treasury accounts. In the case of defense,
data wiU be taken frora the accounts of the respective services. Governraent corporations and others performing their own disbursing function wlU, Ukewise. furnish the
data frora their accounts.
In the Interest of obtaining tiraely and reasonably coraplete data, estimates wfll l^e
employed to a very limited extent In monthly reports with the data adjusted to acmal
at the year-end.
3. Budget surplus or deficit.--The data used to arrive at the budget surplus or
deficit wlU be on a collections or confirmed deposit and payments raade basis and wlU
be the same data referred to In discussing receipts and expendimres above. In order to
arrive at this figure, an appropriate classification must necessarfly be made between
budget and nonbudget Items. As a practical matter, this classification can onlyT^e obtained monthly in Defense.
4. Correlated use of data.—The following discussion Is forthe purpose of Indicating
the namre and relationship of the several presentations conteraplated.
(a) Suraraary report of receipts and expendimres.--A summary showing classified
receipts and expendimres and the resulting budget surplus or deficit, based upon the
reports compiled under this proposal. wiU be pubUshed regularly by the Treasury
Department as of the end of each raonth. This report wfll be released as part of the
daily Treasury stateraent on the 15th of the month following the close of the month for
which the report is made. These data wlU serve to inforra top manageraent of the Governraent of results for the prior month. The extent of the detafl as to classification by
appropriation and fiind or summaries thereof, wfll be subject to needs but, as a practical matter, only major totals wlU be Included for defense transactions. The Initial
June 30 report each year, mcluding a preliminary figure for budget surplus or deficit,
wlU be recognized as preUralnary and a final report wlU be rendered reflecting adjustraents required for year-end preciseness in the historical accuraulations discussed
below.
(b) Report on stams of appropriation accounts.—These reports, by appropriation
and fund, wfll continue to be required of the agencies as heretofore. I. e., not later than
20 days after the end of the month. The receipt and expendimre data wlU agree In total
with the summary data described above but. In some Instances, an "undistributed"
category raay be used for reporting purposes where a detafl classification Is not avaflable, e. g., for estiraated araounts Included In the expendimre total. In relation to the
total, the *'undistributed" category wiU not be significant.
(c) "Corabined Stateraent of Receipts, Expendimres and Balances ".--This annual
pubUcation by the Treasury wlU contain data accumulated for the fiscal year on a final
basis, and wiU continue to be recognized as the official historical accumulation of
receipt and expendimre data.
384
1954 REPORT OF THE SECRETARY OF THE TREASURY
(d) "The Budget".--The receipt and expendimre data Included wfll be in agreeraent
with the official historical accuraulation described In thepreceding paragraph. This wfll
avoid the annual arbitrary adjustraent to the dafly Treasury stateraent basis, which has
been the practice In the past.
(e) Special reports by Treasury.--Data released currentiy to congressional coraraittees and others throughout the year on receipts and expendimres (e. g., data furnished Joint Coramittee on Reduction of Non-Essential Federal Expendimres, commonly
referred to as the Byrd Report) wiU be in agreeraent with data used in the suraraary
report of receipts and expendimres described above.
(f) Dafly Treasury stateraent.--Although this proposal does not Include recoraraendations as to specific changes in existing practices with respect to forraat, tiraing,
etc., of data to be published in the "Dafly Stateraent of the United States Treasury,"
It does Include the foUowing points:
(1) Data available on a dally basis wfll not include a classification as to budget
versus nonbudget transactions but wlU include data reflecting total cash Incorae and
outgo of the Treasury. Classified receipts and expenditures and the resulting budget
surplus or deficit wlU be released as a part of the dafly Treasury statement on the
15th of each raonth foUowing the close of the raonth for which the report is raade.
(2) To the extent that the daUy pubUcation raay include a classification of cash
income and outgo, it should be a classification that can be obtained from Treasury
sources, it should be recognized as a separate series of data, and It should be understood that such a classification wiU not provide the controlling totals for receipt and
expendimre data contained In the Corabined Stateraent, the Budget docuraent or other
special reports.
5. General Accounting Office audit.--In carrying out his audit responsibflities to
the Congress under the Budget and Accounting Procedures Act of 1950. the CoraptroUer
General deterraines the effectiveness with which an agency has discharged Its financial
responsibilities. Araong the financial responsibUities of an agency Is the rendering of
reports to the Treasury Departraent under the provisions of Sec. 114 (a) of the act
referred to above. Accordingly, the reUabUlty of the data subraitted to the Treasury
under this proposal wfll be tested by the General Accounting Office in the course of
its audit activities. Copies of reports reflecting Its findings wiU be fiirnlshed to the
agency and the Treasury.
Approval of the foregoing recoraraendations at this time wiU perrait work to proceed
m the further development and installation ofthe reporting practices proposed. Questions which,raay arise wlU be resolved in a rnanner consistent with the guidelines set
forth above.
Recoraraended prograra approved:
G. M. Huraphrey,
Secretary of the Treasury.
Joseph M. Dodge,
Director, Bureau of the Budget.
Lindsay C. Warren.
Coraptroller General of the United States.
EXHIBITS
385
Exhibit 70.--Joint statement by the Secretary of the
Treasury, the Director of the Budget, and the Comptroller General of the United States, relative to changes
in Treasury reporting
Treasury Departraent,
Washington, February 17, 1954.
After a year's smdy we have found that the dafly Treasury stateraent of "Budget
receipts and expendimres, and budget deficit and surplus," Is Inadequate In the following respects:
1. It is impossible, at any reasonable cost, to obtain complete and accurate dafly
reports of checks issued and payments made by aU Federal agencies, soipe ofwhich
are engaged in world-wide activities.
2. Even where dafly reporting Is practicable, the figures are not on a uniforra
basis. For instance, sorae expendimres are reported on an accrual basis; sorae are
on a current checks-Issued basis; others are reported on a delayed-checks-issued
basis; and others are reported on a strictiy cash payment (I. e., checks paid) basis.
3. Thus there has not been a common basis for coraparing acmal expendimres
with detailed budgetary estimates.
In the interest of accurate and meaningful Inforraation, Treasury Departraent Circular
940, effective February 17. 1954. changes the basis of reporting in the Treasury dafly
statement, and provides for pubUcation at approximately mldraonth of a raonthly statement on "Receipts and expendimres of the United States Government."
DAU^Y CASH STATEMENT
The new dally Treasury statement will be limited to a summary of Treasury assets
and Uabflities, cash receipts and withdrawals, and closing cash balances as theyare
recorded for the day in the account ofthe Treasurer of theUnited States. In addition,
it wlU disclose the effect of the day's operations on the public debt, but wlU not show
budget surplus or deficit.
MONTHLY BUDGET STATEMENT
The new monthly statement wfll be an accurate report on receipts and expendimres
of the United States Governraent on a budgetary basis showing surplus or deficit.
Monthly reporting on this basis wfll aUow the necessary tirae for uniforra reporting
of budget results. Including Government corporation and business-type agency transactions, refunds, and trust fund operations and Investments, etc.
Budget receipts wlU be on a coUection basis, i. e.. when money Is received by collecting officers.
Budget expendimres wiU be reported on a uniform basis of checks issued and payments made by disbursing officers. Thus both revenue coUections and expendimres
wiU tie to the accounting records of the various agencies, and to the President's
budget.
These budget results wiU be reconcfled with the cash balance In the Treasury and
the outstanding public debt.
The new procedure, which Is the result of a smdy made under the Joint Accounting
Iraproveraent Prograra by the Treasury Departraent, Bureau of the Budget, and General
Accounting Office, is being adopted In the interest of better pubUc understanding of
Government operations and provides iraproved raeans for raore effective budgetary
control.
• This change in reporting procedure does not involve any change in policy regarding
the basis of the Governraent's Budget. The Adrainistrative Budget wiU continue to be
the basis for deterraining the budget surplus or deficit.
386
1954 REPORT OF THE SECRETARY OF THE TREASURY
Exhibit 71.—Regulations governing reports of certain cash
transactions of the United States Government
[Departraent Circular No. 940. Accounts]
Treasury Departraent,
Washington. February 17, 1954.
To Heads of Departments and Agencies and Others Concerned:
PURPOSE
1. The purpose of this regulation Is to secure data frora certain agencies of the
Governraent which, when Integrated with data avaflable in the Treasury Departraent.
wfll enable the Secretary of the Treasury to present raonthly cash receipts and expendimres of the Governraent for the Inforraation ofthe President, the Congress, and
the pubUc as required by law. This regulation Is Issued pursuant to Section 114 of the
Budget and Accounting Procedures Act of 1950 (31 U.S.C. 66b) and Sections 10,15, and
22 of the act of July 31, 1894 (5 U.S.C. 255 and 264).
COVERAGE
2. The preparation of reliable and coraplete reports on the receipts and expendimres
of the Federal Governraent depends upon the cooperative efforts of aU departraents,
establishraents, and agencies. Thus, the preparation and subralsslon of raonthly and
other reports covering such transactions as hereinafter described is required of each
disbursing agency of the Federal Governraent.
(a) Agencies doing their own dis burs Ing.--This regulation applies to aU agencies
that do their own disbursing. Agencies served in part by Treasury disbursing officers
shaU report only those transactions recorded in the accounts of their disbursing
officers.
(b) Treasury disbursing officers.—Treasury Departraent disbursing officers (including United States disbursing officers) wlU report aU transactions covering disburseraents Involving agencies for which this Departraent disburses.
USE TO BE MADE OF REPORTS
3. The raonthly reports submitted under this regulation wfll be utilized by the
Treasury Departraent in preparing a raonthly statement of receipts and expendimres
of the United States Governraent and the resulting budget surplus or deficit. The stateraent wlU be published regularly as of the end of each month and released with the
mldraonth daUy Treasury stateraent of the foUowmg raonth and wiU present both
raonthly and fiscal year to-date figures. However, the stateraent published July 15
covering the fiiU fiscal year wfll be regarded as preliminary. A final statement for
the fiscal year, incorporating adjustments required for year-end preciseness wfll be
developed from a suppleraental (thirteenth) report to be rendered by each agency
covered by this regulation.
INTEGRATION WITH TREASURY CASH ACCOUNTS
4. The provisions of this regulation are designed to effect the integration of agencyTreasury data on a coraraon basis of accounting for cash transactions. The interrelationship of agency-Treasury data wfll be estabUshed bv securing frora each reporting
agency an analysis of aU cash transactions and the corresponding classified payraents
and receipts resulting frora the issuance of checks, payments in cash, coUections, and
deposits. The receipts and expendimres reported wiU thus be susceptible of reconcflia-
EXHIBITS
387
tion with transactions affecting the cash balance In the Treasurer's accounts after
taking Into consideration such Iteras as checks outstanding, undeposited collections,
deposits In transit, and other eleraents of cash held outside the Treasury.
DAILY STATEMENT OF THE UNITED STATES TREASURY"
5. Effective Febmary 17,1954, the "Daily Stateraent of the United States Treasury"
wiU contain a suraraary of the assets and UabiUties, cash receipts and withdrawals, and
closing cash balance as recorded in the account of the Treasurer of the United States.
In addition. It wfll disclose the effect of these operations on the public debt.
ISSUANCE OF INSTRUCTIONS
6. Reports required under this regulation shaU be prepared and subraitted by agencies In accordance with Instructions to be Issued by the Fiscal Assistant Secretary of
the Treasury which Instmctions shaU have the sarae force and effect as the regulation.
The Fiscal Assistant Secretary Is authorized to grant such exceptions to the provisions
of such instmctions as he may deera-appropriate.
EFFECTIVE DATE
7. This regulation shaU be effective Iramediately.
G. M. Humphrey,
Secretary of the Treasury.
Exhibit 72.--Statement regarding a system of central
accounts for the United States Government
[Department Circular No. 945. Accounts]
Treasury Department,
Washington, May 11, 1954.
To Heads of Government Departraents and Agencies and Others Concerned:
L PURPOSE OF THIS STATEMENT
1. Under the Budget and Accounting Procedures Act of 1950, the Secretary of the
Treasury is required to so organize accounting In the Treasury Departraent as to
provide the operating center for consoUdatlon of accounting results of other agencies
with those, of the Department, under a unified system of central accounting and financial
reporting for the Governraent as a whole.
2. This stateraent, concerning an accounting plan developed jointiy by the Treasury
Departraent, Bureau of the Budget, and the General Accounting Office, is issued for the
purpose of:
(a) EstabUshing the fraraework for a unified systera of central accounts, as contemplated In the Budget and Accounting Procedures Act of 1950, in relation to the financial
reporting and other responsibiUties of the Treasury Departraent concerning the Governraent's finances; and
(b) Providing, for the guidance of aU agencies, inforraation concerning changes m
underlying accounting processes which are conteraplated. Such changes wfll becorae
effective after the close of the fiscal year 1954 by regulations to be Issued by the
Treasury Departraent or General Accounting Office, in their respective areas of
388
1954 REPORT OF THE SECRETARY OF THE TREASURY
responsibility, dealing with the progressive modifications of warrant procedures as
authorized in the Budget and Accounting Procedures Act of 1950, particularly with
respect to the provisions of Joint Regulation No. 4 issued pursuant thereto on June 30,
1953, by the Secretary of the Treasury and the Comptroller General of the United
States.
3. Financial reporting requirements already established pursuant to Treasury Department Circular No. 940, dated February 17, 1954, are designed to be coordinate with
the accounting plans herein outilned.
II. PRINCIPAL FEATURES OF THE PLAN .
4. The central accounts maintained by the Treasury Department will disclose the
receipts of the Government, by sources, and its expendimres according to each appropriation or fund, together with corresponding data concerning the cash operations of
the Treasurer of the United States and the other fiscal officers of the Government. The
central accounts wiU be based on:
(a) Monthly summaries of: (1) Classified receipts and disbursements; and (2)
corresponding cash transactions representing collections, deposits in the Treasurer's
account, checks drawn on the Treasurer of the United States, and aU other cash transactions, as contained in the official accounts of accountable officers;
(b) Monthly summaries of deposits and withdrawals in the accounts of the Treasurer
of the United States (accounting month basis); and
(c) Appropriation and related warrants issued by the Secretary ofthe Treasury and
countersigned by the ComptroUer General of the UnitedStates, and authorized transfers
between appropriation accounts initiated by the agencies which administer the appropriations.
The receipts and expendimres carried in these accounts will be integrated with
the cash in the Treasury, taking into account those amounts of cash as of the close of
each month which are represented by:
(1) Cash held outside the Treasurer's account in the custody of accountable officers;
(2) Deposits in transit from accountable officers to the Treasurer; and
(3) Checks drawn on the Treasurer which are outstanding (i.e., unpaid).
5. The official accounts of the disbursing officers of each disbursing agency will be
maintained on the basis of:
(a) Credits in checking accounts on the books of the Treasurer of the United States
in amounts administratively established by the Treasury Department within the aggregate of appropriations and funds available to the related administrative agency or
agencies; i and
(b) Transactions involving the payment and coUection of money, resulting in the
following concept of accountability:
(1) Increases of accountability for: (a) Checks drawn on the Treasurer; and (b)
cash collections (receipts and repayments) with supporting classifications according to
appropriations, funds, "and receipt accounts at the levels of the individual disbursing
stations or the disbursing agency as a whole; and
(2) Decreases of accountability for: (a) Gross amounts of disbursements less
related receipts or repayments by deduction from paid vouchers, likewise classified
according to appropriations and funds, and receipt accounts; and (b) cash deposited in
the Treasurer's account.
Ll the final analysis, the accountability of disbursing officers wiU be represented
by amounts of cash withdrawn from the Treasury or collected from other sources and
held in their custody, including funds held bytheir agents and by designated commercial
1 Exceptions to this method of funding checking accounts may be authorized at the
outset with respect to checking accounts on the Treasurer's books for disbursing
officers of Government corporations and the Post Office Department.
EXHIBITS
>389
depositaries for their account, and amounts receivable from others by reason of any
transactions, involving reductions of the Government's cash which are not based upon
charges to appropriations or funds duly certified.
6. Disbursing officers wiU no longer be required to render accounts in terms of
balances of appropriations and funds, either individually or in the aggregate. This modification, together with the funding of checking accounts solely on the basis of credits by
administrative action of the Treasury Department, as indicated in paragraph 5(a) above,
establishes the basis for eliminating from disburs ing processes the funding transactions
outlined below, none of which has any effect on the receipts and disbursements of the
Government. Collaterally, the drawing of checks on the Treasurer for these funding
transactions and the deposit of such checks in the Treasurer's account, presentiy
required because checking accounts are kept at the same level as undisbursed balances
for portions of appropriations and funds established at individual disbursing stations,
will be discontinued. These several nonexpenditure funding transactions are outlined
below.
(a) Credits in accounts of funding officers.--Amounts of appropriation warrants
will continue to be recorded in the central accounts of the Treasury and in the administrative accounts ofthe agencies responsible for administering the appropriations, but
will no longer be taken into the accounts of funding and disbursing officers. The credits
established .by the Treasury Department in the checking accouht for each disbursing
agency's fundmg officer wiU be within the aggregate of. but not necessarily equal to, the
related appropriation warrants. Such credits wiU be established on the books of the
funding officer as the check-book limitation for the dis bur sing agency, with corresponding
credit to an overaU undisbursed account. Additional credits wiU be authorized periodicaUy to provide check-book limitations for the aggregate of transactions which increase
the balances of appropriation and fund accounts available for disbursement, such as
repayments, but which wiU no longer be credited to checking accounts, as hereinafter
outilned. The foregoing wiU replace the present practice of establishing, on the books of
funding officers, undisbursed balance accounts for individual appropriations with a
corresponding aggregate check book credit.
(b) Transfers of funds between funding accounts and disbursing station accounts.-Funding officers wiU authorize the Treasurer to transfer lump sum credits from their
checking accounts to the checking accounts for the underlying disbursing stations,
without the use of Treasury checks and related deposits for this purpose. The amounts
established in checking accounts and related undisbursed accounts for transfers received at the disbursing stations wiU correspond to the amounts transferred out on the
books of the funding officer, within the same accounting period. These transfers wiU be
on the basis of check-book requirements estimated for a fiscal year, or for a lesser
period, if justified. There will be no relationship between the amounts of these transfers
and the amounts which related administrative agencies distribute to their field fiscal
installations to control the approval of vouchers for payment according to individual
appropriations. Accordingly, transfers presentiy made in disbursing accounts according
to individual appropriations and field fiscal offices pursuant to Treasury Forms 1669
applicable to the Division of Disbursement, and comparable forms of other disbursing
agencies, wiU be discontinued.
(c) Nonexpendimre transfers between appropriations.--Vouchers effecting nonexpendimre transfers between appropriations (Standard Form No. 1151) wiU continue to
be prepared and recorded by the administrative agencies concerned, but wiU be submitted directly to the Treasury Department for entry in the central accounts without
passing through the operations of disbursing officers. In lieu of the issuance and deposit
of negotiable checks for these transfers, presentiy required when the charges and
credits affect two different disbursing accounts. aU such vouchers wiU be handled by
the Treasury Department as counter checks, on the same basis established in General
Accounting Office Accounting Systems Memorandum No. 9-Second Revision, dated
December 11. 1950, and both sides of the transfer will be reflected in the same accounting period.
390
1^54 REPORT OF THE SECRETARY OF THE TREASURY
(d) Disposition of unexpended balances of appropriations.--For the most part,
unexpended balances of appropriation accounts are for credit to the certified clairas
appropriation and are presently disposed of by nonexpendimre transfers pursuant to
Form 1151 vouchers. Such transfers wiU continue to be so handled, without relation to
disbursing accounts as indicated in the preceding paragraph. In addition, the same
procedures will be used for aU other nonexpendimre transfers, including those for
credit to receipt accounts or other appropriation accounts.
7. In the light of the foregoing, the practice of crediting deposits to checking accounts
of the disbursing agencies concerned, pursuant tb Standard Form 209 certificates, wiU
be discontinued. Further, since the central receipt accounts wiU be kept on the basis of
the misceUaneous. special fund, and trust fund receipts classified in support of the
official accounts rendered by disbursing officers, the separate deposits of receipts on
Standard Form 201 certificates wiU be discontinued. Both types of deposit wlU be
merged Into a single certificate evidencing transfer of the custody of cash to the
Treasurer of the United States whether the underlying credits relate to appropriations,
fiinds. receipts, or other accounts.
(a) Certificates of deposit prepared by administrative agencies for deposits made
directiy in Federal depositaries in relation to the official accounts rendered by disbursing officers of the Division of Disburseraent. pursuant to Treasury Department
Circular No. 937, dated January 18, 1954. wiU furnish a classification according to
appropriation, fund, or receipt account. For all other disbursing agencies whose coUections are classified in support of the official accounts ofdisbursing officers, the c e r tificates of deposit wlU not be so classified. In aU cases, the certificates wiU be
identified as to the disbursing agency and station concerned, serving as the basis for
integrating the cash relationship between the disbursing accounts and the account of
the Treasurer of the United States.
(b) Amounts of vouchers paid which are for credit, in whole or In part, to receipt
accounts wlU be picked up as receipts in the disbursing accounts without drawing
checks on the Treasurer for deposit into the Treasury, in the manner presently applicable to voucher deductions which represent repayments to appropriations or funds.
8. With respect to expenditure transfers between accounts within the Government,
which affect two different disbursing stations (of the same or different disbursing
agencies), procedures wiU be established whereby the intra-Government transfers wiU
be coordinated by use of a transit account through central accounting processes. Certain
exceptions to this procedure may be necessary with respect to unusual transactions.
Such transit account procedure would be estabUshed with a view to:
(a) Recording the Intra-Government transaction (1) as a disbursement in the accounts
of the disbursing station concerned, without the drawing of a check on the Treasurer;
and (2) as a corresponding receipt or repayment in the accounts of the appropriate
disbursing station, without deposit action; and
(b) Disclosing through the central transit account the total credits for intra-Government transfers which may not have been recorded in the accounts of the disbursing stations concerned as of the close of the sarae accounting period in which the corresponding charges were recorded.
9. The integration between the central accounting of the Treasury and the accounting
of the various administrative agencies, for each appropriation, fund, and receipt account
as a whole, will be on the basis of: (a) Appropriation warrants and related transfers;
and (b) summarizations of the receipts and disbursements supporting the official accounts of the related disbursing offices or of the disbursing agency as a whole.
(a) The accounts which are maintained on the books of the fiscal offices of administrative agencies to control the amount of vouchers to be authorized for payment, according to Individual appropriations and funds. wlU be integrated with the official accounts
rendered by the related disbursing offices on the basis of the classified receipt and
disbursement transactions for the period which support such accounts and which, in mrn,
are summarized for the central accounts.
EXHIBITS
391
(b) Since the statements of transactions supporting the official accounts rendered by
disbursing officers wiU Include receipts, according to Individual receipt accounts, the
integration between such accounts and the receipt accounts of the administrative agency
fiscal offices wfll be on the same basis as the integration for appropriations and funds.
(c) Amounts of receipts, as weU as repayraents, which are included inthe stateraents
of transactions on the basis of certificates of deposit, wlU be supported by lists identifying the underlying certificates.
(d) In view of the foregoing, the departmental deposit lists and fiscal officers' registers of deposits presentiy issued on the basis of Forra 201 deposits cleared centraUy in
the Treasury wiU be discontinued.
10. Cash collections wfll be recorded in the official accounts of disbursing offices on
the basis of: (a) CoUections received, where disbursing officers handle collections; or
(b) confirraed deposits In the account of the Treasurer of the United States, where
coUections are deposited directly In Federal depositaries by the coUecting adrainistrative agencies.
(a) Amounts of collections received by disbursing offices wfll be charged to the
appropriate cash account representing the Increase in the officer's accountabflity and
correspondingly credited as a receipt or repayment. AccountabiUty for such cash wiU
be decreased by amounts of: (1) Deposits in the Treasurer's account; or (2) cash
disbursements made, if the disbursing officer Is authorized to hold coUections as
disbursing cash.
(b) Amounts of coUections deposited by coUecting agencies directiy In Federal
depositaries, on the basis of confirmed certificates of deposit, wfll be recorded In the
accounts of the related disbursing offices as receipts or repayments and correspondingly charged to the account representing deposits in the Treasurer's account.
m . ISSUANCE OF INSTRUCTIONS
Regulations of the Treasury Departraent within the fraraework of this stateraent wiU
be issued by the Fiscal Assistant Secretary of the Treasury. Any questions concerning
the plans discussed herein should be directed to the Bureau of Accounts.
G. M. Huraphrey,
Secretary of the Treasury.
Exhibit 73.—Regulations governing the direct deposit of
collections by certain departments arid agencies
[Departraent Circular No. 937. Accounts]
Treasury Departraent,
Washington, January 18, 1954.
To Heads of Governraent Departraents and Agencies and Others Concerned:
1. Purpose.--This circular estabUshes certain uniforra requireraents regarding the
raaking of deposits directiy in Federal depositaries by aU departraents and agencies
whose collections affect accounts current of the Division of Disburseraent, Treasury
Departraent.
2. General.--By special arrangeraent with the Chief Disbursing Officer, Treasury
Departraent, in recent years, an increasing nuraber of deposits have been raade directly
with Federal depositaries by the departraents and agencies receiving the coUections
(hereinafter caUed adrainistrative agencies). Many coUections, however, are stiU being
transraltted by the coUecting administrative agencies to the respective disbursing
offices of the Division of Disburseraent for the making of deposits through the facflities
392
1954 REPORT OF THE SECRETARY OF THE TREASURY
of such disbursing offices. The Treasury Department and the General Accounting Office,
joinfly, have determined that the direct deposit practice shaU be extended during the
current fiscal year to apply to aU adrainistrative agencies concerned. Arrangeraents to
this end wiU be raade with each adrainistrative agency by the Bureau of Accounts,
Treasury Departraent, jointly with the General Accounting Office, and the provisions
of this circular wiU becorae effective for each administrative agency when such a r rangements have been made,
3. Existing regulations to be observed.--Advice and assistance of Treasury dis-.
bursing officers regarding technical requireraents for making deposits is available to
all administrative agencies concerned. These technical requirements are contained In
regulations of the Treasury Department which are cited below for convenient reference.
(a) Department Circular No. 176, Revised Deceraber 21. 1945, and araendraents
thereto.--Sections 2 through 10 of the circular are for special attention of depositors
of public moneys, covering such.matters as: (1) Wheredeposits shaU be made; (2) general requirements regarding certificates of deposit and records of iteras deposited;
(3) indorsement and transmission of checks; and (4) uncoUectible items.
(b) Department Circular No. 772. dated April 14. 1945.--Among other matters, this
circular prescribes the sorting arrangeraent of items comprising a deposit with a
Federal Reserve Bank or branch.
(c) Department Circular No. 12, Revised April 23, 1929.--The first supplement to
this circular, dated October 4, 1949, pertains to the use of Certificate of Deposit.
Standard Forra No. 201; the fourth supplement, dated September 20, 1951, deals with the
use of Certificate of Deposit, Standard Form No. 209.
4. Account classification of certificates of deposit.--It Is essential that depositing
agencies pay particular attention to the distinction between the two certificates of
deposit forras which wiU continue to be required under the existing account strucmre.
and which wiU be prepared to show amounts credited according to appropriations, fiinds,
and receipt accounts as outlined below.
(a) Standard Form No. 209 (Exhibit 1).--This certificate of deposit Is to be used
only for collections credited directly to general, special, and trust fimd appropriations
and deposit funds; that Is. amounts of repayraents and available receipts for credit to
disbursing officers' checking accounts.
(1) Spaces provided on the face of the forra are self-explanatory except for the
space regarding accounts to be credited. In this connection, the depositing agency wfll
show on the line under "On account of" a breakdown ofthe deposit accordirig to each
appropriation or deposit fiind symbol involved, the total of which must agree with the
total of the deposit. When space provided is not sufficient, the words "See reverse"
wiU be typed on the face of the form and the breakdown shown on the reverse.
(2) Araounts. of repayments and available receipts may be included in the sarae
certificate of deposit; however, araounts of available receipts wiU be Identified on the
face of the forra. If used, by the letters A/R; when the reverse side is used, available
receipts wiU be shown in a separate coluran from repayments.
(b) Standard Forra No. 201 (Exhibit 2).--This certificate of deposit is to be used for
collections.credited to only receipt accounts (raisceUaneous. special fund and trust fund
receipts); that is, araounts of unavailable receipts for covering into the Treasury. The
usual classification of the deposit according to Individual receipt symbol wfll be shown
in the space provided on the face of the form, the aggregate of which must agree with
the total amount of deposit.
5. Uncollectible Items.--Technical requirements regarding uncoUectible checks are
set forth in Section 9 of Departraent Circular No. 176. The highlights ofthese requirements are outlined below, particularly from the standpoint of the distinction between
those uncoUectible checks which relate to Standard Forra 209 certificates and those
pertaining to Standard Form 201 certificates.
(a) Procedure of depositaries.—(1) The depositary bank executes a debit voucher
(Treasury Form 5504) showing (a) the name and address of the depositor; (b) the number, confirmation date, and total amount of the certificate of deposit In which the un-
EXHIBITS
393
collectible item was originaUy deposited; (c) the receipt account classification of the
original deposit in the case of a Form 201 item, or the disbursing officer's checkmg
account In the case of a Form 209 Item; and (d) the amount of the uncoUectible item.
(2) More than one uncollectible item may be included in the same debit voucher;
however, the checks must pertain to the sarae depositor and the same type of certificate of deposit form. Accordingly, checks deposited on Form 209 certificates and on
Form 201 certificates which become uncoUectible, are not included in the same debit
voucher.
(3) For debit vouchers relating to Form 209 certificates (Exhibit 3). the disbursing
officer's symbol is inserted in the second block provided for "Classification of Deposit"
on the form. For debit vouchers relating to Form 201 certificates (Exhibit 4), the
receipt account symbol is shown In the first classification block. When the depositary
cannot determine the receipt symbol to be charged, because two or more receipt
accounts were credited on the related Form 201 certificate, or otherwise, the depositing
agency is required to furnish the necessary information under the procedure outilned
below.
(b) Procedure of depositing agency.--(I) Upon receipt from the depositary ofthe
duplicate and triplicate copies of the debit voucher, together with the related uncollectible check(s), the depositing agency wiU (a) immediately review the data on the
form; (b) make any necessary corrections on the duplicate and tripUcate copies;
(c) sign the triplicate on the line provided on the reverse of the forra; and (d) remrn
the triplicate to the depositary.
(2) In connection with item (b) regarding corrections, the depositing agency, when
necessary, wiU insert the proper receipt symbol on both the duplicate and triplicate
copies of a debit voucher relating to a Form 201 deposit. The proper appropriation or
fund symbol wiU be inserted on only the dupUcate copy of a debit voucher relating to a
Form 209 deposit. Such information wiU not be shown on the triplicate copy remrned to
the depositary.
(3) The depositing agency may be requested by the depositary to prepare a full set
of the debit voucher upon remrn of the unpaid check. In such event, the fuU set of the
form is required to be delivered to the depositary for execution and for remrn to the
depositor of the duplicate and triplicate copies. The triplicate should then be signed by
the depositor and remrned to the depositary.
6. Use of confirmed certificates of deposit for disbursing officers' accounts current.--Amounts of repayments and available receipts for credit to appropriations and
funds, and amounts of unavailable receipts for covering into the Treasury wiU be
accounted for by disbursing offices of the Division of Disbursement and included in
the respective accounts current on the basis of copies of confirmed certificates of
deposit and debit vouchers for uncoUectible checks to be furnished by the related
depositing agencies. To this end, immediately upon receiving these documents from
the depositary, the depositing agency wiU transmit the copies hereinafter specified to
the disbursing office with which it has an account current relationship. The General
Accounting Office joins in stressing the importance of prompt transmission of such
documents to the disbursing offices in order that unnecessary differences as of the
close of an accounting period may be avoided in connection with the integration of
administrative accounts and related accounts current, and with respect to the reconciliation of disbursmg officers'checking accounts.
(a) Certificate of deposit, Standard Form No. 209.--The depositing agency wfll
submit the confirmed duplicate (green) and triplicate (white) copies of this form to
the Treasury disbursing office and will retain the confirmed quadruplicate. The duplicate copy wiU be remrned to the depositing agency, showing the period of account in
which taken up by the Treasury disbursing office. The triplicate will be retained in
support of the disbursing officer's checking account and the credits to the appropriation
or fund accounts.
(b) UncoUectible Iteras pertaining to certificate of deposit. Standard Form No. 209.-In those instances when items deposited on Form 209 become uncollectible, the de-
394
1954 REPORT OF THE SECRETARY OF THE TREASURY
positing agency should prepare a separate schedule for each debit voucher received
from the depositary. The schedule, as a minimum, should cite (1) the debit voucher
by date, (2) the disbursing officer's syrabol, (3) the total amount charged and a classification according to appropriation or fund symbol, with the designation "Available
Receipts" where applicable. The forra to be used for this purpose raay be either
Treasury Forra RO 188 (Schedule of UncoUectible Checks) or Standard Form No. 1044
(Schedule of CoUections) with the titie of the form changed to read "Schedule of UncoUectible Checks." The signed original of the schedule of uncoUectible checks and
the duplicate copy of the debit voucher received from the depositary wlU be submitted
to the Treasury disbursing office and a copy of the schedule retained by the depositing
agency. The original of the schedule wiU be remrned to the depositing agency, showmg
the period of account In which taken up by the Treasury disbursing office. The debit
voucher copy wiU be retained in support of the disbursing officer's checking account
and the charge to the appropriation or fund account.
(c) Certificate of deposit. Standard Form No. 201.—The depositing agency wUl
submit the confirmed tripUcate (white) copy of this form to the Treasury disbursing
office and wiU retain the confirmed quadruplicate. The monthly Usting on Treasury
Forra 1675 showing certificate of deposit date, deposit nuraber, and araount of deposit
wiU continue to be prepared by the Treasury disbursing office in support ofthe miscellaneous coUections reported on the account current stateraent.
(d) UncoUectible iteras pertaining to certificate of deposit. Standard Forra No.
201.--In those instances when items deposited on Forra 201 becorae uncollectible, the
depositing agency should prepare, for Its own records only, a separate schedule for
each debit voucher in the sarae raanner as described in subparagraph (b) above. The
duplicate copy of the debit voucher wiU be submitted to the Treasury disbursing office.
The amounts of uncoUectible Form 201 Iteras wfll be iteraized separately on the raonthly
Treasury Forra 1675 prepared for misceUaneous coUection items referred to above.
7. Collection schedules no longer required for the processes of disbursing offices
of the Division of Disbursement.--Effective with the submission of confirmed copies
of certificates of deposit and debit vouchers for uncoUectible checks, classified according to accounts as provided m this circular, coUection schedules (e. g.. Standard
Forms No. 1044 and 1159) wiU no longer be needed for the disbursing and related
accounting processes of the Division of Disburseraent. In this connection, the Treasury
Department and the General Accounting Office have agreed that copies of the confirmed
certificates of deposit, in lieu of coUection schedules, should be assembled by the
coUecting agencies to support the respective accounts current.
8. Departmental deposit lists of receipts covered into the Treasury.--Adrajnlstr a tive agencies wiU continue to receive periodic departmental deposit lists of unavailable
receipts covered into the Treasury on the basis of original certificates of deposit
received in the Treasury Departraent frora the depositaries.
E. F . Bartelt,
Fiscal Assistant Secretary.
Exhibit 74.—Regulations governing the purchase, custody,
transfer, and sale of foreign exchange by executive
departments and agencies
[Department Circular No. 930. Accounts]
TREASURYDEPARTMENT,
Washington, October 19, 1953.
To Heads of Executive Departraents and Agencies and Others Concerned:
281.1 Authority.—By virme of the authority vested in the Secretary ofthe Treasury
by Executive Order No. 10488, dated Septeraber 23, 1953, 18 F.R. 5699, the foUowing
EXHIBITS
395
regulations are prescribed for administration of the purchase, custody, transfer, and
sale of foreign exchange (Including credits and currencies) by executive departments
and agencies of the United States.
281.2 Transfer of unexpended balances.--AU foreign exchange held by any accountable
officer (and his agents) at the close of business November 30, 1953, for the account of
any department or agency, except foreign exchange purchased with doUars. shaU be
transferred on the books of the accountable officer to a new account classification entitled
"20Fr 500, Foreign Exchange Account of the Secretary of the Treasury (narae of currency)." AU foreign exchange under this classification shaU be held by the accountable
officer for account of the Secretary ofthe Treasury, subject to disposition as directed
by the Secretary. The accountable officer shaU raaintain classifications by source,
indicating the raiscellaneous receipt accounts or other accounts In the Treasury which
should be credited with doUar proceeds from sale of the foreign exchange, and such
further classifications as raay be needed to indicate exchange which can be used only
for restricted purposes.
281.3 Collections.--Foreign exchange coUected by departraents and agencies shaU
be delivered proraptly into the custody of accountable officers for credit to account
"20FT 500, Foreign Exchange Account of the Secretary of the Treasury (name of
currency)", unless otherwise directed by the Secretary of the Treasury. The term
"coUections," for the purpose ofthese regulations, shaU not include foreign exchange
acquired by the United States Government by purchase with dollars. Accountable officers
shaU be advised of the source of coUections and any restrictions on the use of the
foreign exchange In order that the classifications by source, required by section 281.2,
may be maintained.
281.4 Guaranty funds.--The provisions of these regulations shaU be applicable to
aU foreign exchange acquired by the United States Governraent under guaranty provisions
of Section 111 (b) (3) of the Econoraic Cooperation Act of 1948, as araended (22 U. S. c :
Sup. V, 1509 (b) (3) except that receipts of such foreign exchange shaU be deposited In
the foreign exchange accounts of the Treasurer of the United States referred to In
section 281.5 (c).
281.5 Depos Ita r les. - - The foUowing requireraents shaU be observed with respect to
the use of depositaries:
(a) Except as provided In subsection (b) of this section, foreign exchange which is
held by accountable officers for account of the Secretary of the Treasury, and also
foreign exchange acquired by accountable officers by purchase or otherwise which is
not Iraraediately disbursed but Is held by such officers for their ovm account or for the
account of any departraent or agency, shaU be maintained only in depositaries designated
by the Secretary of the Treasury. Unless directed by the Secretary of the Treasury, it
is not required that accountable officers raaintain separate depositary accounts for the
foreign exchange they hold for account of the Secretary.
(b) Accountable officers may carry foreign exchange as cash outside of depositaries
only pursuant to authority heretofore or hereafter granted in accordance with the provisions of Treasury Department Circular No. 195 (31 CFR 208).
(c) Foreign exchange accounts which are now maintained with depositaries, in the
narae of the Treasurer of the United States, shaU not be subject to the provisions of
section 281.2. Deposits In and withdrawals frora these accounts wiU be made only as
directed by the Secretary of the Treasury.
281.6 Withdrawals from Treasury accounts.—Foreign exchange shall be withdrawn
frora account "20FT 500, Foreign Exchange Account of the Secretary of the Treasury
(narae of currency)" on the books of accountable officers or from the foreign exchange
accounts carried with depositaries in the narae of the Treasurer of the United States,
only for the purpose of (a) sale for dollars or (b) requisition by departments and
agencies for authorized purposes, without reimbursement to the Treasury as provided
by or pursuant to law. Such withdrawals, as weU as transfers between foreign exchange
accounts of the Secretary of the Treasury and the Treasurer of the United States, shall
be made only by direction of the Secretary of the Treasury. A department or agency
396
1954 REPORT OF THE SECRETARY OF THE TREASURY
requiring foreign exchange from the Treasury Depar tment. shaU make request to the
Secretary ofthe Treasury, Indicating the amount of exchange required (in units of foreign
currency) and the name and location of the accountable officer to receive the exchange.
To the extent practicable and desirable, standing authorizations wiU be given for withdrawals frora account "20FT 500, Foreign Exchange Account of the Secretary of the
Treasury (narae of currency)." The foUowing conditions shaU apply to the sale of
exchange and to the requisition of exchange without dollar payraent:
(a) Sales.--With respect to the sale of foreign exchange by the Treasury Departraent.
the araount of payment in doUars shaU be calculated at the rate of exchange that would
otherwise be avaflable to the Government of the United States for the acquisition of the
foreign exchange for its official disbursements. When the rate at which exchange would
be available to the United States Government is not readfly ascertainable, the Treasury
wifl deterraine such rate In consultation with the agencies concerned. The dollar proceeds
realized from the sale of exchange shaU be credited to the appropriate misceUaneous
receipt account or other account in the Treasury.
(b) Requisitions.--When foreign exchange is to be obtained frora the Treasury
Departraent without payraent of dollars, the departraent or agency concerned shaU
furnish written certification that the exchange raay be used without reiraburseraent to
the Treasury and citation of the relevant stamtory or other legal authority.
281.7 Limitations. - -The foUowing limitations shall apply to the purchase and holding
of foreign exchange:
(a) Unless authorized by the Secretary of the Treasury, no department or agency
or accountable officer shaU purchase, or direct the purchase of, foreign exchange from
any source outside the Government of the United States other than to the extent that
exchange for the purpose Intended is not available for purchase from the Treasury
Department.
(b) AU foreign exchange acquired by departraents and agencies by requisition frora
the Treasury Departraent, without payraent of dbUars, for the purpose of raaking authorized expendimres, shaU be placed with accountable officers for account of the
departraents or agencies concerned.
(c) Unless authorized by the Secretary of the Treasury, no accountable officer shaU
purchase foreign exchange which, together with the balance on hand at the tirae of
purchase, would exceed estiraated requirements for a thirty-day period.
(d) Departraents and agencies shaU remrn promptiy to accountable officers, for
credit to account "20FT 500, Foreign Exchange Account of the Secretary ofthe Treasury
(narae of currency)," any araounts of foreign exchange obtained without purchase with
dollars, which are deterrained by the departra^its and agencies concerned to be excess
to their needs.
281.8 Reports.--Each accountable officer shaU furnish a report, in dupUcate.
forwarded by airmail direct to the Fiscal Assistant Secretary of the Treasury, Washington 25, D. C , showing, in units of foreign currency, (a) the opening balances transferred to the general classification •'20FT 500, Foreign Exchange Account of the
Secretary ofthe Treasury (name of cur rency) "according to the individual classifications
by source referred to in section 281.2 and indicating the narae and location of the
depositary in which the foreign exchange Is on deposit and (b) araounts withdrawn therefrora simultaneously at date of transfer, on prior authorization, for the payment of
imliquldated obUgations incurred prior to July 1, 1953. and for any other payments not
requiring deposit of dollars into the Treasury. The Treasury Departraent shaU be
furnished such other reports and information as may be required for the purpose of
these regulations frora each departraent or agency which coUects foreign exchange in
behalf of the Government of the United States, or which acquires exchange for the
purpose of making authorized expendimres; and from each accountable officer who
holds foreign exchange for account of the Secretary of the Treasury.
281.9 General provisions.—The foUowing are general provisions applicable under
these regulations:
EXHIBITS
397
(a) There is hereby revoked Central Reporting Regulation No. 1, dated June 27, 1951,
requiring reports on foreign currencies which are and can be acquired without payment
of doUars.
(b) Nothing contained ih this circular shaU be construed as having the effect of
superseding or araending the provisions of any regulations Issued or approved by the
Secretary of the Treasury pursuant to the act of December 23, 1944, as amended
(67 Stat. 61).
(c) The Secretary of the Treasury may waive, withdraw, or amend at any time or
from time to time any or aU of the provisions of the regulations of this circular.
(d) AU communications pertaining to the administration of these regulations shaU
be directed to the Fiscal Assistant Secretary of the Treasury.
(e) The provisions of this circular shaU be effective December 1. 1953.
George M. Humphrey.
Secretary of the Treasury..
Exhibit 75»—Regulations for the administration of foreign
currencies and credits under disposition of surplus property abroad and lend-lease settlements
[Department Circular No. 799. Revised. Accounts]
TREASURYDEPARTMENT,
Washington, October 19, 1954.
280.1 Authority.—By virme of the authority vested in the Secretary of the Treasury
under Section 32 (b) (1) of the Surplus Property Act of 1944 (58 Stat. 782; 50 U. S. C.
App. 1641), as amended (Pub. Law 584. 79th Congress), the foUowing regulation is
hereby prescribed for the administration of foreign currencies or credits acquired by
the Department of State from the disposal of United States Government surplus property
located outside the continental United States, Hawaii, Alaska (including the Aleutian
Islands), Puerto Rico, and the Virgin Islands, and, under Executive Order No. 9726
(May 18, 1946, 11 F.R. 5437), this regulation is also prescribed for the accountability
for funds payable under lend-lease settiements in accordance with the act of March 11,
1941 (55 Stat. 31; 22 U. S. C 412) as amended.
280.2 Scope of this circular.—This circular applies to the administration of the
obligations owing to the Government of the United States under agreements for the
sale of surplus property located abroad and lend-lease settiements (hereinafter referred
to as "agreements and settiements"), in so far as they are expressed in United States
dollars or in foreign currencies, and the foreign currencies which the Goverriment of
the United States has acquired or may acquire from the disposal of surplus property
located abroad or from lend-lease settiements. This circular does not apply in so far
as such agreements or settiements relate to the acceptance of property (other than
foreign currency) or substantial benefits, or to the discharge of claims whenever the
Secretary of State has determined that such considerations are in the interest of the
United States.
280.3 CoUection of accelerated payments.--(a) Where the agreement or settiement
provides that in lieu of deferred payments in UnitedStates doUars over a period of
time, the Government of the United States may request accelerated payments in foreign
currencies, such payments shaU be requested only at such times and to the extent
necessary in order to procure the foreign currencies required for the lawful discharge
of authorized governmental functions or activities of the United States. The acquisition
of foreign currencies as accelerated payments should therefore not be greater at any
one time than the amounts required for governmaital purposes over a period ordinarily
339256 O - 55 - 27
398
1954 REPORT OF THE SECRETARY OF THE TREASURY
not to exceed three months, except where theSecretary of the Treasury, upon the advice
of the Director of the Bureau of the Budget, shaU provide otherwise.
(b) In cases where the Secretary o f t h e Treasury informs the Secretary of State
that the Government of the United States has substantial holdings'of a particular foreign
currency, no accelerated payments in such currencies shaU be requested untfl such
holdings shaU have been used or committed.
(c) In cases where the Secretary of the Treasury informs the Secretary of State
that any department or agency of the Government of the United States has need for a
particular foreign currency and can make United States dollar payraents therefor, he
may advise the Secretary of State to request the foreign government concerned to raake
accelerated payments in its local currency in the amounts necessary and up to the
extent authorized under the terms of the agreement or settiement, and within the
framework of the foreign financial policy of the United States.
280.4 Waiver, withdrawal, or amendment.--The Secretary of the Treasury may
waive, withdraw, or amend at any time or from time to time any or aU of the provisions
of the regulations in this circular.
George M. Humphrey,
Secretary of the Treasury.
Exhibit 76.--Regulations governing deposit of public
moneys and payment of Government checks
[Department Circular No. 176 (Revised), Seventh Amendment, Accounts]
TREASURY DEPARTMENT,
Washington, April 26, 1954.
To the Treasurer of the United States, FederalReserve Banks and Branches, Depositaries and Financial Agents of the Government, Officers, Agents, or Employees of
the United States engaged in collecting, depositing, or transmitting public moneys,
and Others Concerned:
Treasury Department Circular No. 176 (Revised), dated December 21, 1945, as
amended, is hereby further amended as foUows:
1. By deleting the first sentence of subparagraph (d) Disposition of original and
copies under Section 6. Certificates of Deposit, and substimting in lieu thereof the
foUowing: "The original of each certificate of deposit shaU be transmitted at tlie close
of business on the day it is receieved by a general depositary to the Federal Reserve
Bank or branch of the district in which the depositary Is located, under cover ofthe
prescribed transcript on which the credit appears. Federal Reserve Banks wfll prepare
a consoUdated transcript of transactions with general depositaries in its district and
transmit the original certificates of "deposit to the Treasurer of the United States under
cover of such consolidated transcript. The original of e^ch certificate of deposit
received directiy from depositors by Federal Reserve Banks shaU be transmitted to
the Treasurer of the United States by the Federal Reserve Bank with its own separate
transcript of the Treasurer's account on which the credit appears. Federal Reserve
Banks may be authorized by the Treasury Department to transmit certain original
certificates of deposit and other documents to specified Treasury offices other than
the Office of the Treasurer of the United States."
2. By revising Section 18. UncoUected and lost checks in connection with deposits
for credit to the account of the Treasurer of the United States to read as foUows: "The
procedure set forth in section 12 hereof (except subsections (c), (i) and (j)) shaU apply
in the event checks, drafts or other items included in deposits with active general
depositaries are uncollectible or lost. In lieu of following the procedure set forth in
EXHIBITS
399
subsection (c). the depositary shaU transmit on the date the charge is made In the
Treasurer's account the original of each executed Form 5504 (Revised)--Debit Voucher
to the Federal Reserve Bank or branchof the district in which the depositary is located,
under cover of the prescribed transcript on which the debit appears. AU other copies
In the set wfll be distributed in accordance with instructions appearing on the face
thereof."
3. By deleting Section 19. Excess balances and substimting in Ueu thereof the foUowing: "Section 19. Transfer of Net Receipts.—Each general depositary shaU forward
at the close of business each day on which there are transactions in the Treasurer's
General Account, to the Federal Reserve Bank or branch of the district in which the
depositary is located, the net araount of the day's transactions in fimds available for
iraraediate credit to the Treasurer's account by such Federal Reserve Bank or branch,
under cover of the prescribed transcript on which the transactions appear."
4. By revis mg Section 21. Cashing and handling of checks drawn on the Treasurer
pf the United States to read as foUows: "Active general depositaries shaU not charge
any Governrnent checks in the Treasurer's general account raaintained on their books
and shaU handle thera as foUows:
" (a) Government checks (1) issued for the purpose of transferring fimds from one
disbursing officer to another, or frora one account of a disbursing officer to another
account; or (2) dravm by a disbursing officer for the purpose of depositing the araounts
of such Governraent checks to the credit of the Treasurer ofthe United States; which
are received in deposits of Governraent officers, shaU be appropriately endorsed and
used by depositaries as part or fiiU payraent in remitting the net araount of the day's
transactions to the Federal Reserve Bank or branchof the district in which the depositary
is located, without charging such checks In the Treasurer's general account. This wlU
be accomplished by Usting the checks in the prescribed transcript and forwarding them,
together with the related certificates of deposit Included in the transcript to the Federal
Reserve Bank or branch. In part or fuU payraent of the net araount of the day's transactions. In effect, this wfll perrait depositaries to receive iraraediate credit for these
specific Governraent checks without charging thera in the Treasurer's general accoimt.
"(b) Governra^it checks which are presented by disbursing officers in exchange for
cash should be handled outside of the Treasurer's general account through norrnal
channels. The Treasurer of the United Sutes, upon special request, wiU advise active
general depositaries as to whether the balances to the credit of the disbursing officers
are sufficient for the payraent of the checks presented. In those cases in which active
general depositaries deera it necessary to obtain Iraraediate credit for such Government
checks, the procedure outilned m Section 22 hereof raay be followed.
"(c) AU other Governraent checks shaU be handled outside of the Treasurer's general
account through norraal channels.
Shipraents of Governraent checks to Federal Reserve Banks and branches under cover
of the prescribed transcript, as described herein, wfll be covered under the Governraent
Losses In Shipraent Act, provided the depositary retains copies of the transcripts containing a description of the checks."
5. By deleting Section 22. Restoration of depleted balances and substimting In Ueu
thereof the foUowing: "Section 22. ^Obtaining immediate credit for Governraent checks
presented by disbursing officers In exchange for cash.—In those cases in which active
general depositaries deera it necessary to obtain Immediate credit for Government
checks presented by disbursing officers In exchange for cash, the foUowing procedure
may be foUowed: The depositary raay request the Treasurer of the United States by
wire (prepaid), stating the check nuraber, symbol number, and amount ofthe check to
place to the credit of the depositary an amount equal to the amount of the check. The
Treasurer of the United States wiU place the funds to the credit ofthe depositary by
either of the foUowing methods, as may be requested by the depositary, by directing
the appropriate Federal Reserve Bank by wire to credit (1) the depositary bank's
reserve account, or (2) a correspondent bank in any city where a Federal Reserve
400
1954 REPORT OF THE SECRETARY OF THE TREASURY
Bank is located, for the account of the depositary bank. Iramediately upon directing
such transfer, the Treasurer wiU advise the depositary bank by wire (prepaid), and
the depositary wfll take up the amount on the same date as a credit to the Treasurer's
general account on its books. The check presented by the disbursing officer wfll then
be used as payment in remitting the araount of the deposit (transfer of funds) to the
Federal Reserve Bank, in the raaimer described in Section 21 hereof."
6. By deleting Section 26. Active general depositaries.--The provisions ofthis
amendment shaU apply only to general depositaries and the Federal Reserve Banks and
branches located in the forty-eight Sutes and the District of Colurabia, and shaU
become effective upon receipt by the general depositaries and FederalReserve Banks
of specific instructions from the Treasury Department relating thereto,
A. N. Overby,
Acting Secretary of the Treasury.
MISCELLANEOUS
Exhibit 77. "Regulations governing the making of loans to
public or private agencies of the United States pursuant
to the Refugee Relief Act of 1953
[ Department Circular No. 932. Accounts]
TREASURYDEPARTMENT,
Washlngtcxi, December 1,1953.
290.0 Authority.—By vlrme of the authority vested in the Secretary of the Treasury
by Executive Order No. 10487, dated September 16,1953, and pursuant to the provisions
of Section 16 of the Refugee Relief Act of 1953, the foUowing regulations a r e prescribed
for the raaking of certain loans.
290.1 Scope of regulation.--This regulation appUes to the raaking of loans by the
Secretary of the Treasury under Section 16 of the Refugee ReUef Act of 1953, Pub. Law
203, 83rd Cong., to pubUc or private agencies of the United States for the purpose of
financing the transportation frora ports of entry within the United States, to the places
of their settieraent, of persons receiving immigrant visas under the said act and who
lack the resources to finance the expenses Involved.
. '
290.2 Definition of terras.—For the purposes of this regulation:
(a) The word "Secretary" refers to the Secretary ofthe Treasury or his designee.
(b) The word " A c t " refers to the Refugee ReUef Act of 1953, approved August 7,
1953, PubUc Law 203, 83rd Congress.
(c) The terra "public agency" shaU mean any executive department or agency of
the United States or of any State of the United States, or municipaUty of such State.
(d) The terra "private agency" shaU raean a corporation or association organized
and operated exclusively for reUgious, charitable, scientific, Uterary, or educational
purposes, no part of the net earnings of which inures to the benefit of a private shareholder or individual, and no substantial part of the activities of which Is carried on for
propaganda or otherwise attempting to Influence legislation.
290.3 Applications.—Public or private agencies shaU make appUcation for loans on
forras prescribed by the Secretary which may be obtained from the Fiscal Service,
Bureau of Accounts, Treasury Department, Washington, D. C.
290.4 Requirements. - -In order for an application to be given favorable consideration,
the applying agency shaU not be in default in the payment of any loan made to it pursuant
to the provisions of the Displaced Persons Act of 1948, as amended, and shaU
EXHIBITS
401
(a) establish to the satisfaction of the Secretary that it has authority to borrow
money under its charter, articles of Incorporation, or other enabling document for the
purpose described in Section 16 of the refugee ReUef Act of 1953 and that the person
acting for It in this regard has the authority so to act;
(b) set forth the manner and terms in which it proposes to repay the loan requested,
if granted;
(c) estabUsh to the satisfaction of the Secretary that there is reasonable assurance
the amount of the loan requested wiU be repaid.
290.5 Terras and conditions of loans.--In cases where applications for, loans are
approved, the applying agency s.haU
(a) execute a promissory note in such form and with such terms and conditions as
the Secretary may deem appropriate; and
(b) execute an agreement containing the foUowing and such other provisions as the
. Secretary may require:
(1) AU funds loaned to it wfll be used exclusively for the purpose of financing the
transportation frora ports of entry within the United States, to the places of their
resettieraent, of persons receiving immigrantvisas under the act, and who lack resources
to finance the expenses involved.
(2) A bank account or bank accounts for the borrowed funds wlU be estabUshed
and maintained by the agency separately from other funds of the agency.
(3) Promissory notes wfll be obtained from the sponsor or the iraraigrant and held
in trust for the Secretary as security for loans made to the agency.
(4) No Interest, service or other charges wiU be made upon the sponsor or immigrant for the use of any funds made available under the act.
(5) Adequate books and records relating to the fimds borrowed from the Secretary
and loans made therefrom shaU be maintained and shaU be available for inspection
during the Ufe of the loan obtained from the Secretary.
(6) Reports will be made to the Secretary for such periods and in such form as
he may prescribe of the balances available in and the sums disbursed from the accounts
referred to in subparagraph (b) (2) of this section, the number of immigrants served
by the borrowed fimds, the recoveries on loans made, and such other information as
the Secretary may require.
(7) AU recoveries by the agency of advances to sponsors or immigrants out of.
funds borrowed from the Secretary shaU be deposited in the special accounts referred
to in subparagraphs (b) (2) of the section, and shaU be used only for the repayment of
any unpaid balance of such loan or interest thereon so long as any such balance r e mains outstanding.
(8) If, in the judgment of the Secretary, there has been an improper use or other
misappUcation of the borrowed fiinds, or the agency has fafled to meet the requirements
of the act or these regulations, or any terms of the loan agreement, the loan or any
unpaid balance due thereon, upon written notice by the Secretary to the agency, shaU
become due and payable imraediately.
290.6 Repayments. - -Repayments shaU be made by check, draft, or money order
drawn in favor of the Treasurer of the United States and forwarded to the Fiscal
Service, Bureau of Accounts, Treasury Department, Washington, D. C , with an appropriate letter of transmittal Identifying the loan to which such repayment applies.
290.7 Reservations.--(a) The Secretary may, in his discretion, reject In whole or
in part any appUcation of a public or private agency for a loan under the provisions of
this part.
(b) Any determination by the Secretary that a corporation or association is a private
agency for the purposes of these regulations shaU not be construed in any manner as
determining the stams of such corporation or association under the provisions ofthe
Internal Revenue Code.
402
1954 REPORT OF THE SECRETARY OF THE TREASURY
(c) The Secretary may waive, withdraw, or araend at any time or from time to tirae
any or all of the provisions of these regulations.
M. B. Folsora,
Acting Secretary of the Treasury.
Exhibit 78.—Letter of the Postmaster General to the
Secretary of the Treasury certifying extraordinary expenditures contributing to the deficiencies of postal
revenue for the fiscal year 1954
Washington, D . C , November 23, 1954.
The Honorable the Secretary of the Treasury.
Dear Mr. Secretary: Pursuant to the provisions of the act of June 9, 1930, Title 39,
U.S.C. 793, the araounts set forth below with respect to certain mailings during the
fiscal year ended June 30, 1954, 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 raatter mailed during the year by officers of the Government (other than those of the
Post Office Department) under the penalty privilege, including registry fees:
Postage
Registry fees, including surcharges...
$38,543,793
37,300,000
Total
$75,843,793
Under Public Law 286, effective August 15. 1953, payment of postage on penalty mall
is required of departraents and agencies of the Government, except the Post Office
Department and certain minor agencies specifically exempted. The potential postage
is based on amounts paid for the period August 16, 1953, through June 30, 1954, plus
the estimated amounts that would have been collected on the same basis for the period
July 1 through August 15, 1953, and for exempt agencies throughout the year. A nuraber
of departraents and agencies have elected to prepay postage oh their raail, thus removing
it from the category of penalty mail.
(b) The estimated amount which would have been collected at regular rates of postage
on matter raailed during the year by:
1. Merabers of C o n g r e s s under the
franking privilege..:
2. By others under the franking privilege
$2,181,080
153,837
Total
(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 estiraated araount which would have been collected
at regular rates of postage on matter mailed free to the blind
during the year
$2,334,917
840,000
^681,000
^Revenue differential frora regular rates based on handling costs. Under the systera
of estiraating used prior to 1953 the estiraated revenue differential was based on the
special rate of 1 cent per pound charged on certain raatter for the blind handled in
the raails. The revenue differential from this special rate would amount to $199,000.
EXHIBITS
(e) The estiraated difference between the postage revenue
collected during the year on mailings of newspapers and periodicals published by and in the interests of reUgious, educational, scientific, philanthropic, agriculmral, labor, and fraternal organizations, and that which would have been collected
at zone rates of postage
(f) The estimated excess during the year ofthe cost of aircraft service over the postage revenues derived frora air
raail
Grand total
403
$1,511,000
(^)
81.210,710
2 The transfer of subsidy payraents to airlines to the Civil Aeronautics Board under
the provisions of Reorganization Plan No. 10 effective October 1, 1953, has raaterially
reduced the cost of aircraft service to the Post Office Departraent and postage revenues
from air raail now exceed the cost of aircraft service.
Sincerely yours,
Arthur E. Sumraerfield.
Postmaster General.
TABLES
NOTE,--In tables where figures have been rounded to a specified unit and
where calculations have been made from unrounded figures, the detafls may
not check to the totals shown.
BASES OF TABLES
Figures In the tables of this section of the report are shown on various bases, as
foUows: (1) dafly Treasury stateraents; (2) raonthly stateraents of receipts and expendimres; (3) receipts, warrants Issued; (4) receipts, collection basis; (5) expenditures,
warrants Issued; and (6) PubUc Debt accounts.
Daily T r e a s u r y statements
The "Dafly Statement of the United States Treasury" was revised effective February 17, 1954, frora a stateraent of classified receipts and expendimres, based on
dafly reports of transactions, to a stateraent of cash deposits and withdrawals affecting
the account of the Treasurer of the United States. The stateraent presents the Governraent's cash condition. Reporting of deposit transactions inthe dafly Treasury stateraent
is on the basis of certificates of deposits and expendimre transactions are reported on
the basis of checks paid, as shown In the account of the Treasurer of the United States.
Significant financial transactions of interfund or intragovernmental namre are elirainated
frora figures in this stateraent. In order to classify transactions currentiy, certain
figures are included in the stateraent on the basis of telegraphic reports frora Federal
Reserve Banks and raafl reports frora Treasury disbursing officers. Treasury balances
on deposit in Federal Reserve Banks and in tax and loan accounts in coraraercial banks
are also reported by telegraph. A clearing account for checks outstanding and telegraphic reports is used in connection with these transactions.
The reporting and classification of activities in budgetary and nonbudgetary categories,
and the budget surplus or deficit for a period, forraerly published in the dafly Treasury
stateraents, are now included in the "Monthly Stateraent of Receipts and Expenditures of
the United States Governraent."
"Monthly Stateinent of Receipts and Expenditures of the
United States Government'*
The figures pubUshed In this statement are based upon reports received from aU
Governraent coUecting and disbursing agencies and the Treasurer of the United States.
Receipts of taxes and custoras duties are reported on a collection basis, whfle other
receipts are stated on a deposit basis, and expendimres are reported on the basis of
checks issued or cash payraents raade by disbursing officers. This stateraent contains
aU receipts and expendimres of the Governraent, including those of agencies which
raaintain cash accounts outside the United States Treasury. It also includes tmst and
deposit accounts. In the interest of publishing timely data, the inclusion of certain data,
such as overseas accounts, raay be delayed in the raonthly stateraents during the fiscal
year. There are no such omissions, however, in the final stateraent published after the
close of a fiscal year.
Starting with the issue for February 1954, this raonthly staternent is the raediura for
reporting budget results that heretofore were shown In the dally Treasury stateraent. The
change In Treasury reporting, as explained In the announceraent dated February 17, 1954
(see exhibit 70), did not affect the concept as to what is included in the adrainistrative
budget, but was a change to secure greater consistency in the raanner of reporting.
407
408
1954 REPORT OF THE SECRETARY OF THE TREASURY
Receipts, w a r r a n t s issued
Information on a warrant-issue basis applies to figures prior to 1916. Section 305 of
the Revised Stamtes provides that receipts for aU moneys received by the Treasurer of
the United States shaU be endorsed upon warrants signed by the Secretary of the T r e a s ury, without which warrants, so signed, no acknowledgment for money received into
the public Treasury shaU be valid.
Certificates of deposit covering acmal deposits in Treasury offices and depositaries,
upon which coverings were based, could not reach the Treasury simultaneously, and for
that reason aU receipts for a fiscal year were covered into the Treasury immediately
upon the close of that fiscal year. It was necessary to have aU certificates of deposit
before a statement could be issued showing the total receipts for a particular fiscal
year on a covered basis. The figures thus compfled and contained in such a statement
were on a warrants-issued basis. Table 2 for years prior to 1916 shows receipts on
this basis.
Section 115 of Public Law 784, 81st Congress, approved September 12, 1950, modified
Section 305 of the Revised Stamtes by authorizing the Secretary of the Treasury and the
ComptroUer General of the United States, under certain conditions, to Issue joint
regulations waiving the requirement for the issuance and countersignamre of warrants
for the receipt and disbursement of pubUc raoney. Pursuant to this authority, joint
regulations were issued during the fiscal year 1951 under which aU collections representing repayments to appropriations arecoveired into the Treasury and credited directiy
to the accounts of disbursing officers without Issuing covering warrants. Simflar regulations were issued with respect to special fund and trust fund receipts which have been
appropriated and are Immediately available to the ciDllscting agency.
Receipts, collection b a s i s
Receipts published on a coUection basis are compfled from reports received by the
various administrative offices from coUecting officers, such as directors of internal
revenue and coUectors of customs. These reports cover the coUections acmaUy made
by these officers or deposited directiy by taxpayers to the credit of the Treasurer of
the United States.
The reports of the coUecting officers and the receipts on a covering basis do not
coincide because during the last few days of the fiscal year the collecting officers make
coUections which are not deposited and therefore not covered until after tiie close of
the fiscal year. The receipts are reported on a coUection basis to show detailed sources
of revenue. Table 10 shows receipts on the basis of reports of directors of Internal
revenue.
Expenditures, w a r r a n t s issued
The Constitution of the United States provides that no money shaU be drawn from the
Treasury but In consequence of appropriations raade by law. Section 305 of the Revised
Statutes requires that the Treasurer of the United States shaU disburse the raoneys of
the United States upon warrants drawn by the Secretary of the Treasury.
As far as the appropriation accounts are concerned, before the fiscal year 1916
Treasury reports of expendimres were based on the araount of warrants issued and
TABLES
409
charged to the appropriation accounts. Such expendimres necessarily included the
balances of funds remaining unexpended to the credit of the disbursmg officers at the
close of the fiscal year.
As stated in the section on "Receipts, warrants Issued," Public Law 784, 81st
Congress, approved September 12, 1950, modified the requirement with respect to
the use of warrants for the disburseraent of pubUc raoney. During the fiscal year 1951 the
Secretary of the Treasury and the ComptroUer General of the United States issued joint
regulations which authorize the full amount of appropriations, with few exceptions, to be
advanced to disbursing officers of the Government simultaneously with the issuance of
the appropriation warrants.
Public Debt accounts
On account of the distance of some Treasury offices and depositaries from the Treasury, it is obvious that the reports from aU offices covering a particular day's transactions cannot be received and assembled in the Treasury at one time without delaying
for several days the pubUcation of the dafly Treasury statement. In order to exhibit the
acmal pubUc debt receipts and expendimres for any given fiscal year, it is necessary to
take into consideration reports covering the transactions toward the end of the fiscal
year concerned which have not been received inthe Treasury untfl the succeeding fiscal
year, and to eliminate pubUc debt receipts and expendimres relating to the preceding
fiscal year. After taking into consideration these reports the revised figures indicate
the stams of the public debt on the basis of acmal transactions during the period under
review as reflected by the Public Debt accounts. Some tables are partly or wholly on
the basis of Public Debt accounts, such as tables 23 and 29.
TREASURY FUND STRUCTURE
AU receipts of the Government, with a few exceptions, are deposited to the credit of
the account of the Treasurer of the United States irrespective of their ultimate disposition
or avaflabiUty for expendimre. However, these receipts are recorded by the Treasury
in accounts classified generaUy according to the source, and according to whether or not
the receipts are earmarked in some degree for expenditure.
As was stated in the paragraph on "Expendimres, warrants issued," under the Constimtion no money may be withdrawn from the Treasury unless appropriated by the
Congress. AU disbursements of the Government, with.a few exceptions, are made from
the general account of the Treasurer of the United States regardless of the source of
funds or authority for such disbursements. These disbursements are further classified
by accounts reflecting various types of authorizations or conditions under which they
may be expended.
A brief description of these various classes of accounts foUows:
Budget accounts
Receipts
General fund receipt accounts.--The prmcipal source of general fund receipts is
internal revenue coUections, which include income taxes, excise taxes, estate, gift, and
410
1954 REPORT OF THE SECRETARY OF THE TREASURY
employraent taxes. In addition, there are also custoras duties and a large nuraber of
raiscellaneous receipts, including such items as proceeds of Government-owned securities (except those which are applicable to public debt retirement), sale of surplus
and condemned property, fees (includmg consular and passport fees), fines, penalties,
forfelmres, rentals, royalties, reimbursements, immigration head tax, sale of public
land, seigniorage on coinage of subsidiary sflver and minor coins, etc.
Special fund receipt accounts (earmarked moneys).--These accounts are credited with
receipts which may be expended only for the particular purpose specified by law. The
Congress appropriates these receipts for the special purpose involved. Examjples of
some of the special fund receipts relate to the reclamation fund, the Mineral Leasing
Act under the Department of the Interior, and the national forest funds under the Department of Agriculmre. Although such receipts are not avaflable for general purposes,
they frequentiy are not segregated In Treasury reports but are classified in summaries
with misceUaneous receipts. The expendimres, along with expendimres made from
general appropriations, are classified under the agency having jurisdiction. Like general
fund receipts and expendimres, these items are included in the totals of budget receipts
and expendimres.
Expenditures
General and special fimd appropriation accounts.--These accounts are established to
record the araounts authorized by the Congress, and expendimres therefrom, for the
general support of the Governraent or the special purpose involved. Such accounts are
classified according to the period ofavaflablUty (i.e., one-year, raultiple-year. no-year),
as to araount (definite or Indefinite), or whether or not requiring annual appropriation
action by the Congress, and are.further classified by the agency having authority to
enter into obUgations and to make expenditures from the accounts.
Revolving and raanageraent fund accounts.—These are funds authorized by specific
provisions of law to: (a) Finance a continuing cycle of operations with receipts derived
frora such operations available without further action by Congress; or (b) facflitate
accounting for and adrainistration of Intragovernmental operations. Treasury reports
generaUy show the net effect of operations In the accounts (excess of expendimres or
reirabursements for the period) which affect the budget surplus or deficit. Examples of
such accounts Include corporate operations such as those under the Export-Import Bank
ofWashington and the CoramodityCredltCorporation and others such as the raanageraent
fiinds in the Departraent of Defense, the general supply fund of the General Services
Adrainistration, and the working capital fund of the PubUc Bufldings Service.
Working fund accounts.--Working fiinds are accounts established to receive (and
subsequentiy disburse) advance payments, pursuant to law, frora other agencies or
bureaus. "AUocated working funds" are those which receive advance payraents frora a
single appropriation, and carry syrabols identified with the parent account. "ConsoUdated
working fimds" are those which raay receive advances frora two or raore appropriations.
Nonbudget accounts
Trust accounts.--These are accounts raaintained to record the receipt and expendimre
of raoneys held In trust by the Goverrunent for the benefit of Individuals, or classes of
Individuals, which raay be expended only in accordance with the terras of a tmst agree-
TABLES
411
raent or stamte. Unlike the funds In general and special accounts they are not avaflable
for general purposes and do not enter into the budget surplus or deficit. Many of the
trust fimds, especiaUy the raajor ones, to the extent receipts are not needed for current
benefits and other payraents, are Invested m United States securities. Sorae ofthe raajor
tmst accounts are the Federal old-age and survivors Insurance trust fund, unemployraent trust fund, civfl service retirement fimd, and national service Ufe insurance fund.
Deposit fund accounts.--Deposit funds are established to account for receipts that are
either (a) held In suspense teraporarfly and later refunded or paid Into sorae other fimd of
the Government, or (b) held by the Governraent as banker or agent for others and paid out
at the direction of the owner. Such funds are not avaflable for paying salaries, exp^ises.
grants, or other expendimres of the Governraent.
412
1954 REPORT OF THE SECRETARY OF THE TREASURY
SUMMARY OF FISCAL
T A B L E 1. - - S u m m a r y of fiscal operations,
[On basis of daily Treasury statements'through 1952^; thereafter on basis of "Monthly State
Budget .receipts and expenditures
Fiscal year or
month
1932
1933
193A
1935
1936
1937
1938
1939
19-40.
19A1
19A2
1943
1944
1945
1946
1947
1948''
1949 "
^
1950
1951
1952
1953
1954
,
....',
'..
1953-July
August...
September
October..
November•
December.
1954-January..
February.
March....
April....
May
June
Surplus, or
deficit (-)
Trust account
and other
transactions,
net receipts,
or expenditures (-)^
Clearing
account^
Net receipts^
Expenditures-^
923,913,117
021,212,943
064,267,912
729,913,845
,068,936,689
978,600,695
r 5 615,221,162
r 4 996,299,530
r 5. 144,013,044
r 7 102,931,383
rl2. 555,436,084
r 21. 986,700,787
r 43. 635,315,356
r 44 475,303,665
r 39. 771,403,710
r 39. 786,181,036
r 41 488,178,842
r 37 695,549,449
r 36 494,900,837
r 47. 567,613,484
r 61 390,944,552
64. 825,04^,026
64, 655,386,989
$4,659; 202,825
4,622; 865,028
6,693; 899,854
6,520; 965,945
8,493;.485,919
7,756; 021,409
r 6,791; 837,760
r 8,858; 457,570
r 9,062;032,204
r 13,262; 203,742
r 34,045;678,816
r 79,407; 131,152
r 95,058; 707,898
r 98,416;219,788
r 60,447; 574,319
r 39,032,393,376
r 33,068; 708,998
r 39,506;989,497
r 39,617; 003,195
r 44,057; 830,859
r 65,407; 584,930
74,274; 257,484
67,772; 353,245
,289,708
-$2,735;
,652,085
-2,601;
,631,943
-3,629;
,052,100
-2,791;
,549,230
-4,424;
,420,714
-2,777;
,616,598
-1,176;
,158,040
-3,862;
,019,161
-3,918;
,272,358
-6,159;
,242,732
-21,490;
,430,365
-57,420;
,392,541
-51,423;
,916,126
-53,940;
,170,609
-20,676;
,787,660
753,
,469,844
8,419,
,440,048
-1,811,
,102,357
-3,122,
3,509, 782,624
,640>378
-4,016,
,213,457
-9,449,
,966,256
-3,116;
-$5; 178,050
-5; 009,989
834, 880,108
402; 724,190
187; 063,025
3; 3lX 169
98; 934;030
1,209, 673,564
4^2; 538,143
907; 790,781
-1,612; 785,695
-337; 796,138
-2,221; 918,654
791; 293,666
-523; 587,210
-1,102, 524,942
-294; 342,662
-494; 733,365
99, 137,360
679, 223,478
147, 077,201
434, 671,979
327,762,083
$554,706,981
-507,106,039
366,441,900
482,656,886
-214,140,135
-401,389,312
-249,920,729
-303,126,484
3,360j 421,421
4,377J 793,501
5,870; 143,908
3,005; 024,190
4,554; 874,148
4,588; 419,362
5,033; 135,214
5,444; 170,356
11,434; 194,001
2,750; 757,244
•3,592; 133,445
10,644; 320,193
5,071; 939,689
6,018,070,701
6,021j 926,134
5,752; 560,931
5,182, 785,605
6,437; 095,892
• 5,218,227,708
4,707; 412,033
5,554; 985,557
5,295; 560,263
5,203J 345,036
7,308; 443,689
,518,268
-1,711,
,277,199
-1,640;
,782,225
-151,
,536,740
-2,747,
,911,456
-627;
,676,530
-1,848,
,092,494
-185,
,758,323
736;
,208,444
5,879;
,803,018
-2,544;
,211,590
-1,611,
,876,503
3,335;
-238,775,528
, 300,886,750
36,384,642
-218,793,590
78,718,705
-175,823,632
-36,495,152
409,538,797
193,192,797
-427,487,393
393,805,204
12,610,484
-577,533,958
-263,540,084
188,465,603
164,794,310
-476,488,924
718,629,849
8,670,192
-135,282,120
-159,745,128
593,403,536
-510,868,855
146,369,091
r Revised to exclude from both net budget receipts and budget expenditures the appropriations of receipts
ta the railroad retirement account.
^ Guaranteed obligations for 1934-1939 on basis of Public Debt accounts, and for 1940 and thereafter on
basis of daily Treasury statements. Excludes guaranteed obligations held by the Treasury.
^ Total budget receipts less refunds of receipts, and less appropriations of receipts to the Federal oldage and survivors insurance trust fund beginning with fiscal 1937 and to the railroad retirement account beginning with fiscal 1938.
• Expenditures are "net," after allowance for reimbursements to appropriations, receipts of revolving fund
'
appropriations, and receipts credited to disbursing accounts of corporations and agencies having authority
to use collections without formal covering into the Treasury. The figures include transfers to trust accounts. Beginning with 1951, the net investments of wholly owned Government corporations and agencies in
public debt securities are excluded from budget expenditures.and are included in trust accounts and other
transactions. The expenditure figures also exclude public debt retirements chargeable to the sinking fund,
etc., under special provisions of law. Payments to the Treasury, principally by wholly owned Government
•corporations, for retirement of capital stock and disposition of earnings are excluded from both receipts
and expenditures; these are shown in a note to table 2.
^ Consists of transactions of trust and deposit accounts, investments of Government agencies in public debt
securities, and sales and investments of obligations of Government agencies in the market (see table 6 ) .
Investments of wholly owned Government corporations in public debt securities are included in budget expenditures before 1951. Retirements of national bank notes chargeable against the increment on gold (fiscal years
1935-39) are excluded.
^ For checks and interest coupons outstanding and telegraphic reports from Federal Reserve Banks, and beginning with the fiscal year 1954, also deposits in transit and cash held outside the Treasury; net increase,
or decrease (-).
413
TABLES
OPERATIONS
fiscal years 1932-54 and monthly 1954
ment of Receipts and Expenditures of the United States Government," see "Bases of Tables"]
Public debt
net increase,
or decrease
General fund
balance net
increase, or
decrease (-)
()
-
$2,685 720,952
3,051 670,116
4,514 468,854
1,647 751,2io
5,077 650,869
2,646 070,239
740 126,583
3,274 792,096
2,527 998,627
5,993, 912,498
23,461 001,581
64,273. 645,214
64,307 296,891
57,678; 800,189
10,739; 911,763
•11,135. 716,065
-5,994, 136,596
478; 113,347
4,586, 992,491
-2,135. 375,536
3,883; 201,970
6,965,882,853
5,188,537,469
-$54,746
445,008,
1,719,717
-740,576,
840,164,
-128,036
-337,555
622,307,
-947,482
742,430
357,973
6,515,418.
10,661,985.
4,529,177;
-10,459,846.
10,929,746.
1,623,884.
-1,461,618;
2,046,684,
1,839,490
-387,750,
-2,298,579,
2,096,206,
6,598. 346,102
536. 419,700
-268. 831,267
449, 224,850
1,822, 362,618
-40 463,511
-319 608,457
-66 972,532
-4,546 170,670
811. 425,949.
2,427. 986,728
-2,215. 182,038
4,070; 518,348
-1,066;510,833
-195; 763,247
•2,352, 311,170
796, 680,943
-1,346, 333,824
-532, 525,911
944, 042,467
1,366,485,443
•1,567,460,926
699, 711,483
1,279,674,039
Amount, end of period
Debt outstanding
General fund
balance
$417.,197,178
862; 205,221
2,581.,922,240
1,841; 345,539
2,681.,510,204
2; 553 ,473,897
2,215;,917,913
2,838.,225,533
1, 890;743,141
2,633; 174,062
2,991; 147,216
9,506; 565,926
20,168; 551,622
24,697; 729,352
14,237, 883,295
3,308, 136,929
4,932, 021,477
3,470; 403,312
5,517,087,692
7,356,578,123
6,968,827,604
4,670, 248,248
6,766,455,061
8,740, 766,596
7,674,255,763
7,478,492,516
5,126, 181,346
5,922,862,289
4,576,528,465
4,044,002,554
4,988,045,021
6,354,530,464
4,787 .069,538
5,486 781,021
6,766,455,061
Public debt
Guaranteed
obligations^
$19,487 ,002,444
22,538 ,672,560
27,053 141,414 $ 680;
28,700 892,625 4,122;
33,778 543,494 4,718;
36,424 ,613,732 4, 664;
37,164, 740,315 4,852;
40,439, 532,411 5,450,
42,967 531,038 5,529,
48,961, 443,536 6,370,
72,422 445,116 4,568,
136,696. 090,330 4,099,
201,003 387,221 1,623,
433,
258,682; 187,410
269,422. 099,173
476,
258,286 383,109.
89,
252,292 246,513
252,770 359,860
257,357. 352,351
255,221; 976,815
259,105; 178,785
266,071; 061,639
271,259,599,108
272,669. 407,740
273,205. 827,440
272,936 996,173
273,386 221,023
275,208 583,641
275,168 120,129
274,848 ,511,672
274,781 539,139
270,235. 368,469
271,046 794,418
273,474 781,147
271,259 599,108
62,943,061
63,269,061
63,651,411
65,938,986
73,796,736
75,638,636
75,097,936
77,011,461
77,086,736
79,825,736
80,453,286
81,441,386
Subject to
limitation^
,487,002 ,444
,538,672 ,560
,733,909 231
,823,577;,316
,496)576; 735
,089,218;,265
,017,531;,967
,890,366; 510
,496)601; 693
,331,696; 116
,990,704; 746
,796)033; 376
,626,456; 522
,115,345, 802
,898,484;033
,375)903; 294
,365,707; 331
,797,635; 268
,376,855; 385
,251,203,984
150, 744,131
,123,134,400
,341,040,494
272,732,350: 801
273,269,096; 502
273,000,647. 584
273,452,160; 009
275,282,380; 377
275,243,758; 766
274,923,609, 608
274,858,550 601
270,312,455 205
271,126,620 155
273,555,234 433
271,341,040 494
(')
. (')
( ^ ) .
•
(')
881,889,956
,371,110,606
,369,599,868
383,527,558
154,457,607
,469,083,742
077,255,051
670,763,468
932,355,302
,491,416,060
541,571,385
027,712,585
652,133,429
566,629,670.
506,598,138
521,736,381
790,304,616
148,321,741
688,299,025
421,672,849
875,011,599
706,927,831
670,901,037
362,399,958 ,
299,848,806
756,502,966
572,006,721
002,479,977
790,304,616
^ Prior to May 26, 1938, the limitation applied to particular segments of the debt, not to the total. The
total amounts of the statutory limitations in effect from February 19, 1941, to date are summarized in table
15. Guaranteed securities held outside the Treasury are included in the limitation beginning April 3, 1945.
Savings bonds are included at current redemption value beginning June 26, 1946; before that date they are
included at maturity value. In the debt outstanding, savings bonds are carried at current redemption value.
'' Sec. 114 (f) of the Economic Cooperation Act of 1948, approved Apr. 3, 1948, required that the sum of
'
$3,000,000,000 be transferred to a trust fund entitled "Foreign Economic Cooperation Trust Fund," and "considered as expended during the fiscal year 1948, for the purpose of reporting governmental expenditures."
The effect of this was to charge the budget in the fiscal year 1948 for expenditures made in the fiscal year
1949, with consequent effect on the budget surplus or deficit of those years. This bookkeeping transaction
had no effect on the actual timing of either receipts or expenditures. In order to simplify comparison of
figures between years, the transactions shown in this table do not take into account the transfer of
$3,000,000,000 in the fiscal year 1948 to the Foreign Economic Cooperation trust fund; expenditures of
$3,000,000,000 during the fiscal year.1949 from the Foreign Economic Cooperation trust fund are treated as
budget expenditures in this table. If effect is given to Sec. 114 (f) of the Economic Cooperation Act of
1948, the budget results for the fiscal years 1948 and 1949 would be as follows:
Budget receipts..'.
Budget expenditures
Budget surplus
339256 O - 55 - 28
Fiscal year 1948
$42,210,770,493
36,791,300,649'
5,419,469,844
Fiscal year 1949
$38,245,667,810
37,057,107,858 .
1,188,559,952
414
1954 REPORT OF THE SECRETARY OF THE TREASURY
RECEIPTS AND
TABLE 2. --Receipts and expendi-
[On basis of warrants issued from 1789 to 1915, and on basis of daily Treasury statements for 1916 through
United States Government. "General, special, emergency, and t r u s t accounts corabined from 1789 through 1930.
Internal revenue
Customs
(including
Income and
tonnage tax) profits taxes
1789-91.
1792
1793...,
1794....
1795...,
1796...,
1797...,
1798...,
1799
$4,399,473
3,443,071
4,255)307
4,801)065
5,588,461
6,567,988
7,549,650
7,106,062
6,610,4^9
1800...,
1801...,
1802
1803...,
1804...,
1805...,
1806...,
1807...,
1808...,
1809...,
9,080,933
10,750,779
12,438,236
10,479,418
11)098,565
12,936,487
14,667,698
15,845,522
16,363,551
7,296,021
8,583,309
13,313,223
8,958,778
13,224,623
5,998,772
7,282,942
36,306,875
26,283,348
17,176,385
20,283,609
15,005,612
13,004,447
17,589,762
19,088,433
17,878,326
20,098,713
23,341,332
19,712,283
23,205,524
22,681,966
1810...,
1811...,
1812...,
1813...,
1814...,
1815...,
1816...,
1817...,
1818...,
1819...,
1820
1821....
1822...,
1823...,
1824...,
1825
1826...,
1827...
1828...
1829...,
1830....
1831...,
1832...,
1833....
1834....
1835...,
1836...,
1837...,
1838...,
1839....
1840...,
1841...,
1842....
1843^..,
1844...,
1845...,
1846...,
1847...,
1848...,
1849...,
1850....
1851...
1852...
1853...
1854...
1855...
1856...
Other
receipts^
Total
receipts-'
$208,943
337,706
274,090
337,755
475,290
575,491
644,358
779,136
$19., 440
17,946
59,910
356,750
188,318
1,334,252
563,640
150,076
157,228
$4,418,913
3,669,960
4,652,923
5,431,905
6,114,534
8,377,530
8,688,781
7,900,496
7,546,813
809,396
1,048,033
621,899
215,180
50,941
21,747
20,101
13,051
8,211
4,044
958,420
1,136,519
1,935,659
369,500
676,801
602,459
872,132
539,446
688,900
473,408
10,848,749
12,935,331
14,995,794
11,064,098
11,826,307
13,560,693
15,559,931
16,398,019
17,060,662
7,773,473.
7,431
2,296
4,903
4,755
1,662,985
4,678,059
5,124,708
2,678,101
955,270
229,594
793,475
1,108,010
837,452
1,111,032
3,519,868
3,768,023
6,246,088
4,137,601
3,453,516
4,090,172
9,384,215
14,423,529
9,801,133
14,340,410
11,181,625
15,729,024
47,677,671
33,099,050
21,585,171
24,603,375
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
2,575,000
1,417,991
1,468,224
1,716,374
1,897,512
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
21,922,391
24,224,442
28,465,237
29,032,509
16,214,957
19,391,311
23,409,941
11,169,290
16,158,800
23,137,925
12,161
6,934
11,631
2,759
4,196
10,459
370
5,494
2,467
2,553
2,909,564
4,295,445
3,388,693
4,913,159
5,572,783
16,028,317
27,416,4B5
13,779,369
10,141,295
8,342,271
24,844,116
28,526,821
31,865,561
33,948,427
21,791,936
35,430,087
50,826,796
24,954,153
26,302,562
31,482,749
13,499,502
14,487,217
18,187,909
7,046,844
26,183,571
27,528,113
26,712,668
23,747,865
31,757,071
28,346,739
1,682
3,261
495
103
1,777
3,517
2,897
375
375
5,978,931
-2,369,682
1,787,794
1,255,755
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
3,934,753
3,541,736
2,507,459
2,655,188
9,576,151
12,324,781
10,033,836
43,603,439
52,559,304
49,846,816
61,587,054
73,800,341
65,350,575
74,056,699
39,668,686
49,017,568
47,339,327
58,931,866
64,224,190
53,025,794
64,022,863
Footnotes at end of table.
Net
receipts*
415
TABLES
EXPENDITURES
tures, fiscal years 1789-1954^
1952. Beginning with fiscal year 1953 on basis of the "Monthly Statement of Receipts and Expenditures of the
Trust accounts excluded for 1931 and subsequent years. For explanation of accounts, see "Bases of Tables"]
Expenditures
Department of
the Army
(formerly War
Department)5 ^
Tr\tp"rp*^t nn
Department of
the Navy5
the public
debt
Other^
Total expenditures^
Surplus, or
deficit (-)
$4,269,027
5,079,532
4,482,313
6,990,839
7,539,809
5,726,986
6,133,634
7,676,504
9,666,455
$149,886
-1,409,572
170,610
-1,558,934
-1,425,275
2,650,544
2,555,147
223,992
-2,119,642
1,401,775
1,197,301
1,642,369
1,965,538
2,387,602
4,046,954
3,206,213
1,973,823
1,719,437
1,641,142
10,786,075
9,394,582
7,862,118
7,851,653
8,719,442
10,506,234
9,803,617
8,354,151
9,932-, 492
10,280,748
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
-2,507,275
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
5,163,538
1,362,514
1,594,210
2,052,335
1,983,784
2,465,589
3,499,276
3,453,057
4,135,775
5,232,264
5,946,332
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
17,090,980
11,255,230
1,760,050
3,139,565
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
5,172,578
4,922,685
4,996,562
4,366,769
3,973,481
3,486,072
3,098,801
2,542,843
6,116,146
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
15,000,220
14,706,840
20,326,708
15,857,229
17,035,797
16,139,168
16,394,843
15,203,333
-379,957
-1,237,373
5,232,208
5,833,826
-945,495
5,983,629
8,224,637
6,827,196
8,368,787
9,624,294
4,767,129
4,841,836
5,446,035
6,704,019
5,696,189
5,759,157
12,169,227
13,682,734
12,897,224
8,916,996
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
14,997
399,834
5,222,975
5,166,049
7,113,983
12,108,379
8,772,967
7,890,854
12,891,219
16,913,847
14,821,242
11,400,004
15,143,066
15,247,651
17,288^950
23,017,552
18,627,569
17,572,813
30,868,164
37,243,496
33,865,059
26,899,128
9,701,050
13,279,170
14,576,611
10,930,875
3,164,367
17,857,274
19,958,632
-12,289,343
-7,562,497
4,583,621
7,097,070
8/805,565
6,611,887
2,957,300
5,179,220
5,752,644
10,792,867
38,305,520
25,501,963
14,852,966
6,113,897
6,001,077
8,397,243
3,727,711
6,498,199
6,297,245
6,454,947
7,900,636
9,408,476
9,786,706
174,598
284,978
773,550
523,595
1,833,867
1,040,032
842,723
1,119,215
2,390,825
3,565,578
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
24,317,579
26,565,873
25,205,761
11,858,075
22,337,571
22,937,408
27,766,925
57,281,412
45,377,226
45,051,657
-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
-13,843,514
9,400,239
11,811,793
8,225,247
9,947,291
11,733,629
14,773,826
16,945,197
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
58,044,862
59,742,668
69,571,026
4,059,947
4,850,287
5,651,897
13,402,943
15,755,479
5,607,907
4,485,673
61,409
410,562
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
$1,286,216
777,149
579,822
800,039
1,459,186
996,883
1,411,556
1,232,353
1,155,138
2,560,879
1,672,944
1,179,148
822,056
875,424
712,781
1,224,355
1,288,686
2,900,834
3,345,772
3,445,716
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
4,412,913
4,125,039
3,848,828
4,266,583
4,148,999
3,723,408
3,369,578
3,428,153
2,866,075
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
1,654,244
1,965,566
3,959,365
6,446,600
7,311,291
8,660,000
3,908,278
3,314,598
2,953,695
3,847,640
2,630,392
4,461,292
3,111,981
3,096,924
3,340,940
3,659,914
3,943,194
3^938,978
4,145,545
4,724,291
$632,804
1,100,702
1,130,249
2,639,098
2,480,910
1,260,264
1,039,403
2,009,522
2,466,947
'
$570
53
416
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 2. --Receipts and expenditures.
Receipts .
Customs
(including
tonnage tax)
Internal revenue
Other
.receipts^
Income and
profits taxes
Total
receipts-'
1857,
1858.
1859.
$63,875,905
41,789,621
49,565,824
$5,089,408
4,865,745
3,920,641
$68,965,313
46,655,366
53,486,465
1860.
1861.
1862,
1863,
1864,
1865.
1866.
1867.
1868,
1869,
53,187,512
39,582,126
49,056,398
69,059,642
102,316,153
84,928,261
179,046,652
176,417,811
164,464,600
180,048,427
56,064,608
41,509,931
51,987,456
112,697,291
264,626,771
333,714,605
558,032,620
490,634,010
405,638,083
370,943,747
1870.
1871,
1872.
1873,
1874,
1875,
1876.
1877,
1878,
1879,
194,538,374
206,270,408
216,370,287
188,089,523
163,103,834
157,167,722
148,071,985
130,956,493
130,170,680
137,250,048
1880.
1881.
1882,
1883.
1884.
1885.
1886.
1887.
1888,
1889.
186,522,064
198,159,676
220,410,730
214,706,497
195,067,490
181,471,939
192,905,023
217,286,893
219,091,174
223,832,742
1890.
1891.
1892.
1893.
1894,
1895.
1896.
1897.
1898.
1899.
229,668,585
219,522,205
177,452,964
203,355,017
131,818,531
152,158,617
160,021,752
176,554,127
149,575,062
206,128,482
1900.
1901.
1902.
1903.
1904.
1905.
1906.
1907.
1908.
1909.
$2,741,858
20,294,732
60,979,329
72,982,159
66,014,429
41,455,598
34,791,856
$34,898,930
89,446,402
148,484,886
236,244,654
200,013,108
149,631,991
123,564,605
2,877,096
1,927,805
2,931,058
5,996,861
52,569,484
39,322,129
69,759,155
48,188,662
50,085,894
32,538,859
37,775,874
19,162,651
14,436,862
5,062,312
139,472
233
588
98
147,123,882
• 123,935,503
116,205,316
108,667,002
102,270,313
110,007,261
116,700,144
118,630,310
110,581,625
113,561,611
31,817,347
33,955,383
27,094,403
31,919,368
39,465,137
20,824,835
29,323,148
31,819,518
17,011,574
23,015,526
411,255,477
383,323,945
374,106,868
333,738,205
304,978,-756
288,000,051
294,095,865
281,406,419
257,763,879
273,827,185
124,009,374
135,261,364
146,497,596
144,720,369
121,530,445
112,498,726
116,805,936
118,823,391
124,296,872
130,881,514
22,995,173
27,358,231
36,616,924
38,860,716
31,866,307
29,720,041
26,728,767
35,292,993
35,878,029
32,335,803
333,526,611
360,782,293
403,525,250
398,287,582
348,519,870
323,690,706
336,439,726
371,403,277
379,266,075
387,050,059
142,606,706
145,686,250
153,971,072
161,027,624
147,111,233
143,344,541
146,762,865
146,688,574
170,900,642
273,437,162
403,080,984
30,805,693
392,612,447
27,403,992
354,937,784
23,513,748
385,819,629
21,436,988
306,355,316
27,425,552
29,149,130 • 324,729,419
338,142,447
31,357,830
347,721,705
24,479,004
405,321,335
84,845,631
515,960,621
36,394,977
233,164,871
238,585,456
254,444,708
284,479,582
261,274,565
261,798,857
300,251,878
332,233,363
286,113,130
300,711,934
295,327,927
307,180,664
271,880,122
230,810,124
232,904,119
234,095,741
249,150,213
269,666,773
251,711,127
246,212,644
38,748,054
41,919,218
36,153,403
46,591,016
46,908,401
48,380,087
45,582,355
63,960,250
64,037,650
57,395,920
567,240,852
587,685,338
562,478,233
561,880,722
541,087,085
544,274,685
594,984,446
665,860,386
601,861,907
604,320,498
1910.
1911.
1912.
1913.
1914.
1915.
1916.
1917.
1918.
1919.
333,683,445
314,497,071
311,321,672
318,891,396
292,320,014
209,786,672
213,185,846
225,962,393
179,998,385
184,457,867
20,951,781
268,981,738
289,012,224
33,516,977
293,028,896
28,583,304
309,410,666
35,006,300
308,659,733
71,381,275'
335,467,887
80,201,759
387,764,776
124,937,253
449,684,980
359,681,228
872,028,020
2,314,006,292
3,018,783,687 1,296,501,292
51,894,751
64,806,639
59,675,332
60,802,868
62,312,145
72,454,509
56,646,673
88,996,194
298,550,168
652,514,290
675,,511,715
701,,832,911
692,,609,204
,111,230
• 724,
734; 673,167
697; 910,827
782; 534,548
1,124;,324,795
3,664; 582,865
5,152; 257,136
1920.
1921.
1922.
1923.
1924.
322,902,650
308,564,391
356,443,387
561,928,867
545,637,504
3,944,949,288
3,206,046,158
2,068,128,193
1,678,607,428
1,842,144,418
966,631,164
719,942,589
539,407,507
820,733,853
671,250,162
6,694,565,389
5,624,932,961
4,109,104,151
4,007,135,481
4,012,044,702
Footnotes at end of table.
55,628
77,131
1,460,082,287
1,390,379,823
1,145,125,064
945,865,333
953,012,618
Net •
receipts*
417
TABLES
fiscal y e a r s 1 789-1954^--Continued
Expenditxires
Department of
the Army. .
(formerly War
Department)56
Department of
the Navy^
Interest on
the public
debt
Other''
Total expenditures^''
Surplus, or
deficit (-)•'
$19,261,774
25,485,383
23,243,823
$12,747,977
13,984,551
14,642,990
$1,678,265
1,567,056
2,638,464
$34,107,692
33,148,280
28,545,700
$67,795,708
74,185,270
69,070,977
16,409,767
22,981,150
394,368,407
599,298,601
690,791,843
1,031,323,361
284,449,702
95,224,415
123,246,648
78,501,991
11,514,965
12,420,888
42,668,277
63,221,964
85,725,995
122,612,945
43,324,118
31,034,011
25,775,503
20,000,758
3,177,315
4,000,174
13,190,325
24,729,847
53,685,422
77,397,712
133,067,742
143,781,592
140,424,046
130,694,243
32,028,551
27,144,433
24,534,810
27,490,313
35,119,382
66,221,206
59,967,855
87,502,657
87,894,088
93,668,286
63,130,598
66,546,645
474,761,819
714,740,725
865,322,642
1,297,555,224
520,809,417
357,542,675
377,340,285
322,865,278
57,655,676
35,799,992
35,372,157
46,323,138
42,313,927
41,120,646
38,070,889
37,082,736
32,154,148
40,425,661
21,780,230
19,431,027
21,249,810
23,526,257
30,932,587
21,497,626
18,963,310
14,959,935
17,365,301
15,125,127
129,235,498
125,576,566
117,357,840
104,750,688
107,119,815
103,093,545
100,243,271
97,124,512
102,500,875
105,327,949
100,982,157
111,369,603
103,538,156
115,745,162
122,267,544
108,911,576
107,823,615
92,167,292
84,944,003
106,069,147
309,653,561
292,177,188
277,517,963
290,345,245
302,633,873
274,623,393
265,101,085
241,334,475
236,964,327
266,947,884
101,601,916
91,146,757
96,588,905
43,392,960
2,344,883
13,376,658
28,994,780
40,071,944
20,799,552
6,879,301
38,116,916
40,466,461
43,570,494
48,911,383
39,429,603
42,670,578
34,324,153
38,561,026
38,522,436
44,435,271
13,536,985
15,686,672
15,032,046
15,283,437
17,292,601 •
16,021,080
13,907,888
, 15,141,127
16,926,438
21,378,809
95,757,575
82,508,741
• 71,077,207
59,160,131
54,578,379
51,386,256
50,580,146
47,741,577
44,715,007
41,001,484.
120,231,482
122,051,014
128,301,693
142,053,187
132,825,661
150,149,021
. 143,670,952
. 166,488,451
167,760,920
192,473,414
267,642,958
260,712,888
257,981,440
265,408,138
244,126,244
260,226,935
242,483,139
267,932,181
267,924,801
299,288,978
65,883,653
100,069,405
145,543,810
132,879,444
104,393,626
63,463,771
93,956,587
103,471,096
111,341,274
87,761,081
44,582,838
48,720,065
46,895,456
49,641,773
54,567,930
51,804,759
50,830,921
48,950,268
91,992,000 '
229,841,254
22,006,206 .
26,113,896
"29,174,139
30,136,084
31,701,294
28,797,796
27,147,732
34,561,546
58,823,985
63,942,104
36,099,284
37,547,135
23,378,116
- 27,264,392
27,841,406
30,978,030
35,385,029
37,791,110
37,585,056
39,896,925
215,352,383
253,392,808
245,575,620
276,435,704
253,414,651
244,614,713
238,815,764
244,471,235
254,967,542
271,391,896
318,040,711
365,773,904
345,023,331
383,477,953
367,525,281
356,195,298
352,179,446
365,774,159
443,368,583
605,072,179
85,040,273
26,838,543
9,914,453
^ 2,341,676
-61,169,965
-31,465,879
-14,036,999
-18,052,454
-38,047,248
-89,111,558
134,774,768
144,615,697
112,272,216
118,629,505
165,199,911
126,093,894
137,326,066
149,775,084
175,840,453
192,486,904
55,953,078
60,506,978
67,803,128
82,618,034
102,956,102
117,550,308
110,474,264
97,128,469
118,037,097
115,546,011
289,972,668
287,151,271
276,050,860
287,202,239
•• 290,857,397
'
299,043,768
298,093,372
307,744,131
343,892,632
363,907,134
520,860,847
524,616,925
485,234,249
517,006,127
583,659,900
567,278,914
570,202,278
579,128,842659,196,320
693,743,885
46,380,005
63,068,413
77,243,984
44,874,595
^2,572,815
-23,004,229
24,782,168
86,731,544
-57,334,413
-89,423,387
189,823,379
197,199,491
184,122,793
202,128,711
208,349,746
202,160,134
183,176,439
• 377,940,870
4,869,955,286
9,009,075,789
1,621,953,095
1,118,076,423
457,756,139
397,050,596
357,016,878
123,173,717
119,937,644
135,591,956
133,262,862
139,682,186
141,835,654
153,853,567
239,632,757-1,278,840,487
2,002,310,785
736,021,456
650,373', 836
476,775,194
333,201,362
332,249,137
40,160,333.
32,342,979
29,108,045
28,556,349
24,646,490
24,590,944
24,308,576
24,481,158
21,426,138
21,803,836
$1,169,605
-27,529,904
-15,584,512
-7,;, 065,990
-23,036,714
--;22,774,363
-602,043,434
-600,695,871
-963,840,619
37,223,203
133,091,335
28,297,798
48,078,469
21,342,979
21,311,334
22,616,300
22,899,108
22,863,957
22,902,897
22,900,869
^ 24,742,702
• 189,743,277
619.,'215,569
359,276,990
352,753,043
347,550,285
366,221,282
364,185,542
393,688,117
374,125,327
1,335,365,422
6,358,163,421
6,884,277,812
693,617,065
691,201,512
689,881,334
724,511,963
735,081,431
760,586,802
734,056,202
1,977,681,751
12,696,702,471
18,514,879,955
-18,105,350
10,631,399
2,727,870
^00,733
-408,264
-62,675,975
48,478,346
-853,356,956
-9,032,119,606
-13,362,622,819
1,020,251,622 •
999,144,731
991,000,759
1,055,923,690
940,602,913
3,025,117,668
2,348,332,700
1,447,075,808
1,508,451,881
1,418,809,037
6,403,343,841
5,115,927,690
3,372,607,900
3,294,627,529
3,048,677,965
291,221,548
509,005,271
736,496,251
712,507,952
963,366,737
418
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 2. --Receipts and expenditures,
Customs
(including
tonnage tax)^
Intemal revenue
Other
receipts^
Income and
profits taxes
Total
receipts-'
Netreceipts*
1925.
1926.
1927.
1928.
1929,
$547,561,226 $1,760,537,824
579,430,093 1,982,040,088
605,499,983 2,224,992,800
568,986,188 2,173,952,557
602,262,786 2,330,711,823
$828,638,068
855,599,289
644,421,542
621,018,666
607,307,549
$643,411,567
545,686,220
654,480,116
678,390,745
492,968,067
$3,780,148,685
3,962,755,690
4,129,394,441
4,042,348,156
4,033,250,225
1930.
1931.
1932.
1933.
1934.
587,000,903 2,410,986,978
378,354,005 1,860,394,295
327,754,969 1,057,335,853
250,750,251 • 746,206,445
817,961,481
313,434,302
628,308,036
569,386,721
503,670,481
858,217,512
1,822,642,347
551,645,785
381,503,611
116,964,134
224,522,534
161,515,919
4,177,941,702
3,189,638,632
2,005,725,437
2,079,696,742
3,115,554,050
$3,115,556,923
1,923,913,117
2,021,212,943
3,064,267,912
1935.
1936.
1937.
1938.
1939.
343,353,034
386,811,594
486,356,599
359,187,249
318,837,311
1,099,118,638
1,426,575,434
2,163,413,817
2,640,284,711
2,188,757,289
2,178,571,390
2,086,276,174
2,433,726,286
3,034,033,726
2,972,463,558
179,424,141
216,293,413
210,093,535
208,155,541
187,765,468
3,800,467,202
4,115,956,615
5,293,590,237
6,241,661,227
5,667,823,626
3,729,913,845
4,068,936,689
4,978,600,695
^5,615,221,162
^4,996,299,530
1940.
1941,
1942.
1943.
1944.
348,590,636 2,125,324,635
391,870,013 3,469,637,849
388,948,427 7,960,464,973
324,290,778 16,093,668,781
431,252,168 34,654,851,852
1945.
1946.
1947.
19451949:
354,775,542
435,475,072
494,078,260
421,723,028
384,484,796
35,173,051,373 8,728,950,555 3,493,528,901 47,750,306,371 ^44,475 ,303,665
30,884,796,016 9,425,537,282 3,492,326,920 44,238,135,290 ^39,771 ,403,710
29,305,568,454 10,073,840,241 4,634,701,652 44,508,188,607 ^39,786 181,036
31,170,968,403 10,682,516,849 3,823,599,033 46,098,807,314 ^41,488 ,178,842
29,482,283,759 10,825,001,116 2,081,735,850 42,773,505,520 ^37,695.,549,449
1950,
19511952
1953
1954
422,650,329
624,008,052
550,696,379
613,419,582
562,020,618
28,262,671,097
37,752,553,688
51,346,525,736
54,362,967,793
53,905,570,964
3,177,809,353
241,643,315
242,066,585
3,892,037,133
294,614,145
5,032,652,915
934,062,619
6,050,300,218
7,030,135,478 3,324,809,903
11,-185,936,012
13,353,541,306
14,288,368,522
15,808,006,083
16,394,080,537
1,439,370,414
1,638,568,845
1,813,778,921
1,864,741,185
2,311,263,612
5,893,367,939 ^5,144,013,044
7,995,611,580 ^7,102,931,383
13,676,680,460 "^12,555,436,084
23,402,322,396 "^21,986,700,787
45,441,049,402 "^43,635,315,356
41,310,627,852 ^36,494 ,900,837
53,368,671,392 ^47,567!,613,454
67,999,369,558 ^61,390',944,552
72,649,134,647 64,825; 044,026
73,172,935,738 64,655;,386,989
Revised to exclude from both net budget receipts and budget expenditures the appropriations of receipts
to the railroad retirement accoimt.
^ From 1789 to 1842 the. fiscal year ended Dec. 31; from 1844 to date, on June 30. Figures for 1843 are
for a half year, Jan. 1 to Jxme 30.
^ Fpr postal receipts and expenditures, see table 12.
^ Effective Jan. 3, 1949, amounts refunded by the Government, principally for the overpayment of taxes,
.are being reported as deductions from total receipts rather than as expenditures. Also, effective July 1,
1945, payments to the Treasury, principally by wholly owned Government corporations for retirement of
capital stock and for disposition of earnings, have been excluded in reporting bo-th budget receipts and
expenditures. Neither of .these changes affects the size of the budget surplus or deficit. Prior year figures,
begirining with the fiscal year 1931, have been adjusted accordingly for comparative purposes. The amounts
that have been adjusted on account of refunds of receipts and capital transfers for the fiscal years 1931
thrpugh 1945 are as follows:
Refvmds of
Capital
Refunds of
Capital
. receipts
transfers
receipts
transfers
1931.
1932.
1933.
1934.
1935.
1936.
1937.
1938.
1939.,
$74,081,709
81,812;320
58,483,799
51,286,138
70,553,357
47,019,926
49,989,542
93,037,478
61,426,683
,
,
.
.
,
.
$250,000
.
,
1940
1941
1942
1943
1944..
1945
1946..
1947
1948
$78,704,894
.80,189,469
84,775,537
70,325,408
257,254,269
1,678,777,924
2,973,027,879
3,006,090,396
2,271,874,777
$43,756,731
299,741,000
18,000,000
9,815,514
16,167,609
37,881,965
210,136,503
262,896,807
* Total receipts less refunds of receipts beginning with fiscal 1931, and less appropriations of receipts
to.the Federal old-age and survivors insurance trust fund beginning with fiscal 1937 and to the railroad
retirement account beginning with fiscal 1938.
'.Excludes civil expenditures under.War and Na-vy Departments in Washington'through 1915. Subsequent to .
1915 includes all expenditures made by the Departments of the Arnor (including rivers and harbors and
Panama' Canal), Navy, and, beginning with the fiscal year 1949, the Air Force, irrespec-tive of the original
source of funds. Beginnirig with 1952, Department of Defense expenditures not classified by these three departments are included in. "Other."
419
TABLES
fiscal y e a r s 1789-1954•'•--Continued
Expenditxjres
Department
of the Army
(formerly War
Department)'*
Department
of the
Navy'
Department
of the Air
Surplus, or
Interest on
the public
debt
Total expenditures-' '^
deficit \ - V
$370,980,708
364,089,945
369,114,122
400,989,683
425,947,194
$346,142,001
312,743,410
318,909,096
331,335,492
364,561,544
$881,806,662
831,937,700
787,019,578
731,764,476
678,330,400
$1,464,175,961
1,588,840,768
1,498,986,878
1,639,175,204
1,830,020,348
$3,063,105,332
3,097,611,823
2,974,029,674
3,103,264,855
3,298,859,486
$717,043,353
865,143,867
1,155,364,766
939,083,301
734,390,739
464,853,515
.456,141,754
476,305,311
434,620,860
408,586,783
374,165,639
353,768,185
357,517,834
349,372,794
296,927,490
659,347,613
611,559,704
599,276,631
•689,365,106
756,617,127
1,941,902,117
2,125,964,360
3,226,103,049
3,149,506,267
5,231,768,454
3,440,268,884
3,577,434,003
4,659,202,825
4,622,865,028
6,693,899,854
737,672,818
-461,877,080
-2,735,289,708
-2,601,652,085
-3,629,631,943
487,995,220
618,587,184
628,104,285
436,265,532
528,882,143
556,674,066
820,926,353
749,396,802
866,384,331
4,775,778,841
6,596,619,790
5,704,858,728
6,520; 965,945
8,493; 485,919
7,756; 021,409
-2,791,052,100
-4,424,549,230
-2,777,420,714
644,263,842
695,256,481
596,129,739
672,722,327
926,280,714
940,539,764
4,625,163,465
6,549,938,998
^6,791. 837,760
^8,858; 457,570
-1,176,616,598
-3,862,158,040
907,160,151
3,938,943,048
14,325,508,098
142,525,562,523
49,438,330,158
50,490,101,935
27,986,769,041
9,172,138,869
7,698,556,403
7,862,397,097
5,789,467,599
8,635,938,754
17,452,710,349
17,054,333,370
113,515,388,452
891,454,523
2,313,057,956
8,579,588,976
20,888,349,026
26,537,633,877
1,040,935,697
1,110,692,812
1,260,085,336
1,808,160,396
2,608,979,806
6,222,451,833
5,899,509,926'
9,880,496,406
14,185,059,207
16,473,764,057
^9,062; 032,204
^13,262; 203,742
^34,045; 678,816
"^79,407; 131,152
^95,058; 707,898
30,047,152,135
15,164,412,379
5,597,203,036
4,284,619,125
4,434,705,920 1$1,690,460,724
3,616,686,048
4,721,957,683
4,957,922,484
5,211,101,865
5,339,396,336
14,262,279,670
12,574,435,216
19,305,125,987
15,874,431,605
20,180,029,420
^98,416; 219,788
^60,447, 574,319
^39,032' 393,376
^33,068' 708,998
^39,506; 989,497
4,129,545,653 3,520,632,580 5,749,913,064
5,862,545,845 6,358,603,828 5,612,654,812
10,231,264,765 12,851,619,343 5,859,263,437
11,874,830,152 15,085,227,952 6,503,580,030
11,292,803,940 15,668,473,393 6,382,485,640
20,427,444,299
17,588,084,620
19,012,727,036
23,7-5.6,285,980
20,913,201,820
^39,617 .003,195
^44,057- 830,859
^65,407; 584,930
74,274. 257,454
67,772,.353,245
-3,918,019,161
-6,159,272,358
•21,490,242,732
•57,420,430,365
•51,423,392,541
•53,940,916,126
•20,676,170,609
753,787,660
8,419,469,844
-1,811,440,045
-3,122,102,357
3,509,782,624
-4,016,640,378
-9,449,213,457
-3,116,966,256
^ Title was changed pursuant to act of July 26, 1947. Figures fpr Department of the Army include expenditures of Department of the Air Force from funds made available prior to fiscal year 1949. Expenditures for
Office of the Secre-tary of Defense are included in "Other."
" The practice of including statutory debt retirements in budget expenditures was discontinued effective
^
with the fiscal year 1948, Such expenditures are not included in this table, nor does the "Siirplus or deficit" take into account such expenditures. Tablg 31 shows details of statutory debt retirements.
^ Beginning with 1932, tonnage tax has been covered into Treasury as miscellaneous receipts included in
"Other receipts."
^ Expenditures for the Department of the Air Force formerly included under Department of the Army.
^° Sec. 114 (f) of the Economic Cooperation Act of 194^, approved Apr. 3, 1948, required that the sum of
$3,000,000,000 be transferred to a trust fund ejn-titled ,'^Foreign Economic Cooperation Trust Fund" and "considered as expended during the fiscal year 1948, for the purpose of reporting governmental expenditures."
The effect of this was to charge the budget in "the fiscal year 1945 for expenditures made in the fiscal year
1949, with consequent effect on the budget surplus or deficit of those years..This bookkeeping transaction
had no effect on the actual timing of either receipts or ^expenditures. In order to simplify coraparison of
figures between years, the transactions shown in this table do not take into account the transfer of
$3,000,000,000 in the fiscal year 1945' to the Foreign Econoraic Cooperation trust fund; expenditures ot
$3,000,000,000 during the fiscal year 1949 from the Foreign Economic Cooperation trust fund are treated
as budget expenditures in this table. If effect is given to Sec. 114 (f) of the Economic Cooperation Act
of 1948, the budget results for the fiscal years 19!!^ and 1949 would be as follows:
Fiscal year 1948
Budget receipts
Budget expenditures....
Budget surplus
,,..,
Fiscal year 1949
$42,210,770,493
36,791,300,649
$38,245,667,810
37,057,107,858
5,419,469,844
1,188,559,952
^^ Beginning with the fiscal year 1951, investments of wholly owned Government corporations in public debt
securities are excluded from budget expenditures and included with other investments under "Trust account
and other transactions." See -tables 4 and 6.
TABLE 3. --Budget receipts and expenditures monthly for fiscal year 1954 and totals for 1953 and 1954
4^
o
[in thousands of dollars. On basis of "Monthly Statement of Receipts and Expenditures of the'United States Cioverninent," see "Bases of Table"]
Fiscal year 1954
Rece.ipts^
July
1953
Internal revenue:
Individual income taxes withheld^
Individual income taxes—other^
Corporation income taxes
Excise taxes
Estate and gift taxes
;
Taxes not otherwise classified
Employment taxes:
Federal Insurance Contributions Act and taxes on
self-employed individuals^
Taxes on carriers and their employees.......
Taxes on employers of 8 or more
Customs
Miscellaneous receipts:
Proceeds from Government-owned securities
Seigniorage
Surplus property disposal
Other
Total budget receipts
Deduct:
Appropriations td Federal old-age and survivors insurance trust fund^
Appropriations to railroad retirement account^
Refunds of receipts:
Internal revehue
Customs
Other..
.....;
September
• 1953
October
1953
.November
1953 •
December
1953
...-.
January
1954.
1,204,715
327,296
•650,737
923,859
82^850
46
2,883,350
90,760
326,464
882^5.20
•60,231
36
1,384,417
1,595,720
1,802,922
18.82^737
64,142
254
1,295,548
120,098
.413,895
976,655
96,240
118
•2,834,050
87,786
303,679
1,096,036
55,686
-196
1,475,702
371,507
1,877,269
643,640
46,251
768
1,096,508
2,364,766
439,895
702,610
M , 347
4,3B9
205,642
28,356
4,793
50,947
519,437
83,537
14/509
47,415
298,557
53,278
822
51^.321
160,237
15,273
4,606
50,083
388,360
103,616
12,787
47,926
149,581
37,165
2,273
43,998
85,333
17,430
32,735
40,406
25,317
3,362
26,416
162,709
16,043
5,926
7,514
108,279
23,779
4,304
8,995
73,116
30,492
4,710
6,428
80,944
22,430
. 4,912
4,318
145,764
66,683
6,583
10,839
112,379
449
4,465
12,343
334,709
5,046,023
6,244,362
3,255,327
5,107,154
4,844,639
5,200,385
205,642
28,356
519,437
83,537
298,557
53,278
160,237
15,273
388,360
103,616
149,581
37,165
85,333
17,430
100,910
1,498
218
62,917
1,810
527
19,315
2,824
244
72,929
1,460
403
58,187
1,892
223
67,323
1,860
290
62,767
1,641
79
336,624
Total deductions
Net budget receipts
August
1953
668,229
374,218
250,303
552,279
256,219
3,360,421
4,377,794
5,870,144
3,005,024
4,554,874
4,588,419
167,250
.5,033,135 .
pa
s
H
O
w
C/J
W
,9
W
H
O
H
Fiscal year 1954
Receipts-"-
Februaiy
1954
Internal revenue:
Individual income taxes withheld^
Individual income taxes-other^
Corporation income taxes
.
'
,
Excise taxes
,
Estate and gift taxes
,
Taxes not otherwise classified
Employment taxes:
Federal Insurance Contributions Act and taxes
on self-employed individuals^
,
Taxes on carriers and their employees
,
Taxes on employers of 8 or more
Customs
Miscellaneous receipts:
Proceeds from Government-owned securities
Seigniorage
Surplus property disposal
.'.
Other
•:••••
•
Deduct:
Appropriations to Federal old-age and survivors'insurance trust fund^
Appropriations to railroad retirement account-'....
Refunds of receipts:
Internal revenue
Customs
Other
Net budget receipts
Footnotes at end of table.
April
1954
May
1954
June
1954^^
Total
fiscal year
1954
Total
fiscal year
1953
".
.
3,066,311
1,044,496
396,065
774,296
87,399
-1,978
1,413,103
2,454,412
7,353,276
833,937
117,849
2,343
1,108,408
807,803
645,104
763,397
93,736
2,892
2,601,448
140,220
357,850
803,731
72,835
486
1,271,851
1,342,444
6,955,697
731,024
103,482
-15
21,635,-410
10,747,307
21,522,854
10,014,444
945,049
9,142
597,635
77,488
183,768
40,674
588,696
49,876
6,047
43,971
278,344
20,910
4,743
52,202
758,607
70,797
16,782
43,903
506,841
45,315
1,270
49,174
4,537,270
603,042
285,135
562,021
4,086,293
619,959
276,557
613,420
20,446
9,624
5,109
123,531
20,100
15,591
-3,673
.117,287
4,775
8,799
5,139
160,194
14,590
3,550
8,903
143,434
-15,421
1,484
11,036
342,560
229,683
73,308
103,365
1,904,907
216,563
55,846
140,761
1,451,572
6,424,863
Total budget receipts
Total deductions
March
1954
13,012,815
3,956,446
5,037,136
11,346,741
73,172,936
72,649,135
597,635
77,488
588,696
49,876
278,344
20,910
758,607
70,797
506,841
45,315
4,537,270
603,042
4,086,293
619,959
304,413
969
188
937,739
1,835
476
902,211
2,061
2,162
608,423
901
6,275
148,363
1,729
173
3,345,496
20,482
11,260
3,094,798
16,949
6,091
1,205,689
1,445,003
8,5.17,549
7,824,091
2,750,757
3,592,133
64,655,387
64,825,044
980,692
11,434,194
•
10,644,320
21,351,194
5 33,011,773
5 10,825,197
S
s
TABLE 3. --Budget receipts and expenditures monthly for fiscal year 1954 and totals for 1953 and 19 54--Continued
[In thousands of dollars]
-
Fiscal year 1954
Expenditures^
July
1953
Legislative branch
The Judiciary
Executive Office of the President
Funds appropriated to the President:
Mutual security'^..i
Mutual military program:
Defense Department
All other agencies
Other
1,899
2,066
986
Tntal F i r C r d i Admini strati on
f-m - p - t
Federal Civil Defense Administration:
Civil defense procurement fund (net)
Other
Reconstruction Finance Corporation'(net)
Small Business Administration''
Tennessee Valley Authority (net)
United States Information Agency
September
1953
623
2,446 .
684
8,023
2,322
1,340
October
1953
10,344
2,106
592
November
1953
2,632
2,324
875
December
1953
7,599
2,577
728
January
1954
9,946
2,229
734
94,129
80,579
91,301
98,298
100,666
99,173
104,283
189,180
10,486
23,363
183,138
8,394
20,145
203,050
7,077
17,532
201,597
7,849
24,524
279,752
27,803
26,249
539,240
13,283
26,614
235,644
16,795
53 521
317,158
Total funds appropriated to the President
Independent offices:
Atomic Energy Commission'''
Civil Service Commission
Export-Import Bank of Washington (net)
Farm CTPdit A m - n s . r t nn;
dlr" t-ai
Federal Farm Mortgage Corporation (net)
Federal intermediate credit banks (net)
Production credit corporations (net)
Other
August
1953
292,256
318,960
332,267
434,469
678,310
. 410,243
114,646
32,765
6,319
157,326
2,179
120,423
143,687
1,530
54,822
199,125
1,570
38,206
139,095
1,473
37,576
186,569
2,211
1,755
165 262
1 907
-51,605
338
-1,726
8
-852
-1,369
1,992
32
78
436
-5,030
-14
-58
.-1,734
-32,076
12
384.
-298
12,372
163
-1,105
-2,850
-188
255
-516
-188,659
3,043
175
-2,232
733
-4,616
-33,414
12,238
-3,888
-185,958
^71
5,722
-21,332
.81
22,502
-288
-9,150
-2,498
418
18,064
1,649
-389
6,584
-1,421
34
16,079
5,977
-27
14,300
^,286
192
22,620
9,335
-72
3,362
-9,140
317
21,580
5,392
-105
2,990
-42,508
311
27,327
6,211
-96
17,608
-14,543
H
O
n
.
(»)
6,498
5 964
00
9
o
Fiscal year 1954
Expenditures^
Legislative branch
The Judiciary
Executive Office of the President
Funds appropriated to the President:
Mut\ial security'''
Mutual military program:
Defense Department
All other agencies
Other
Total funds appropriated to the President
Independent offices:
Atomic Energy Commission''
Civil Service Commission
Export—Import Bank of Washington (net)
Farm Credit Administration:
Federal Farm Mortgage Corporation (net)
Federal intermediate credit banks (net)
Production credit corporations (net)
Other
Total Farm Credit Administration
Federal Civil Defense Administration:
Civil defense procurement fund (net)....
Other
Reconstruction Finance Corporation (net)
Small Business Administration''
Tennessee Valley Authority (net)
United States Information Agency
Footnotes at end of table.
February
1954
1,614
2,301
686
March
1954
2,960
2,824
763
April
1954
May
1954
7,062
2,419
666
6,318
2,154
868
June
1954-^
Total
fiscal year
1954
Total
fiscal year
1953
-100
2,589
571
58,919
28,356
9,493
60,849
27,428
8,937
155,927
111,121
91,534
94,955
104,980
1,226,945
1,702,574
186,779
7,342
28,575
300,656
20,020
23,171
287,281
55,410
31,843
278,598
52,727
43,845
445,491
70,959
107,343
3,330,406
298,144
426,725
3,810,626
145,266
123,532
378,624
454,967
466,068
470,125
728,773
5,282,220
5,781,997
159,530
711
-2,004
181,423
2,002
-73,960
164,100
1,836
5,132
169,056
-194
10,488
110,181
2,020
-47,908
1,894,999
50,009
99,243
1,790,922
345,631
117 331
-407
13,068
6,741
184
-564
48,506
-10,244
-6,909
-481
42,644
^39
-7,335
-368
41,861
70
-6,935
-401
31,369'
-353
-7,062
-6,418
-38,531
-1,331
-27,911
-9,286
-72,111
-2,477
1 356
19,585
30,790
34,389
34,628
23,553
-74,191
-82,517
108
3,430
-31,920
803
16,466
5,885
200
3,867
-14,066
995
19,511
4,195
-329
3,846
-52,853
921
26,500
11,960
-48
4,029
-2,537
707
14,793
5,972
-1,223
5,141
-180,362
1,852
26,108
8,430
-2,740
61,729
-377,471
6,639
238,048
70,972
140
49,978
-148 280
508
184,353
CO
TABLE 3.--Budget receipts and expenditures monthly for fiscal year 1954 and totals for 1953 and 1954--Continued
[in thousands of dollars]
Fiscal year 1954
Expenditures^
July 1953
Independent offices—Continued
Veterans' Administration:
Compensation, pensions, and benefit programs....
August 1953 . September 1953
October 1953
November 1953
December 1953
January 1954
Total Veterans' Administration.
Other independent offices
Total independent offices
General Services Administration:
Strategic and critical materials....................
Public enterprise funds (net)...*
c...
Other
Housing and Home Finance Agency:
Office of the Administrator:
Federal National Mortgage Association (net)...-..
Other public enterprise funds (net)
Other
260,781
6,348
100,343
181,054
2,462
166,532
337,713
4,583
-14,691
257,693
6,224
76,499
270,565
5,392
72,923
271,324
7,881
96,605
184,102
20 531
138 562
367,472
350,043
327,605
340,415
343,880
375,811
343 196
56,064
18,314
17,290
16,110
18,965
23,314
18 078
• 581,536
657,219
572,180
604,148
.579,665
579,998
306 313
60,720
-44
20,829
47,637
-48
13,505
47,333
-28
22,256
46,487
-1,288
15,576
46,802
-53
15,831
65,785
-18
11,780
45 389
831
18 177
81,505
Other
61,094
69,562
60,774
62,580
77,547.
62,735
307
2,338
180
5,790
5,801
49,531
12,795
2,420
-10,406
-27,944
-75,639
-8,336
1,599
2,009
-131
-3,982
40,494
-19,467
4,539
1,811
493
-7,027
-27,441
-42,553
-425
12,412
--460
-4,416
-63,946
-32,076
622
2,440
-29
-9,519
12,644
-10,030
1,018
6 870
-1,121
44,236
-28,491
-49,242
31,653
-47,093
-99,387
-25,918
12,482
10,524
15,922
3,321
6,668
860
42,850
5,353
83
7,883
4,761
592
7,037
5,382
85
26,808
4,767
807
6,120
6,847
99
11,503
4,578
722
5,817
4,.768
101
7,705
4,718
774
5,472
7,405
362
6,973
6,350
754
5,812
8,051
15,851
5,740
4,826
-112
7,559
Agriciiltxire Department:
Federal Extension Service
Soil Conservation Service.
Tl
H
:c
tn
CO
tn
14,418
Federal Housing Administration (net)
Public Housing Administration (net)
H
O
9
tn
H
O
Tl
H
tn
tn
>
Fiscal year 1954
Expenditures^
February 1954
Independent offices—Continued
Veterans' Administration:
Compensation, pensions, and benefit programs....
March 1954
April 1954
May 1954
June 1954^^
Total
fiscal year
1954
Total
fiscal year
1953
Total Housing and Home Finance Agency....
273,365
2,602
100,086
3,212,472
81,837 ,
955,117
3,313,203
69,780
950,542
340,399
382,652
351,696
376,053
4,249,426
4,333,525
17,746
17,765
17,216
19,872
256,803
313,791
513,103
595,919
605,807
343,719
6,473,466
6,905,382
58,170
329
12,324
55,228
-53
8,619
46,352
12,355
39,447
-82
7,565
91,226
^93
-1,203
650,576
-2,653
157,614
918,913
^29
188,354
63,794
58,662
46,930
89,530
805,537
1,106,838
-16,050
5,851
6,121
-1,053
-4,729
-94,451
-61-, 396
3,537
4,614
-1,989
-5,948
7,472
-72,876
10,320
-18,745
-1,703
1,410
-113,776
-5,343
2,532
944
-1,557
-7,888
-2,227
-2,119
10,132
-8,356
-3,325
-8,387
-72,517
-220,719
52,828
14,878
-21,100
-28,403
-412,077
378,626
28,168
9,317
-18,161
-42,587
29,223
-104,311
-53,710
-195,369
-13,543
-84,572
-614,594
384,585
6,094
584
6,583
4,559
1,196
7,066
•
288,183
-7,689
71,203
70,823
0 ther
Home Loan Bank Board (net)••«
372,252
44,639
-34,239
533,858
Housing and Home Finance Agency:
Office of the Administrator:
Federal National Mortgage Association (net)
262,605
-18,405
96,200
16,067
General Services Administration:
Strategic and critical materials....................
Public enterprise funds (net)
Other
252,835
7,269
85,094
345,198
Other
4,446
109
5,430
4,653
995
16,831
8,192
30
4,970
4,743
686
29,795
5,245
.541
5,040
5,320
740
34,168
6,130
87
12,866
4,835
729
2,809
78,437
33,854
104,878
60,777
8,744
171,335
76,171
32,591
90,771
62,191
6,309
272,735
r
tn
Agriculture Department:
Footnotes at end of table.
IJ
S
TABLE 3. --Budget receipts and expenditures, monthly for fiscal year 1954 and totals for 1953 and 1954--Continued
rvj
[In thousands of dollars ]
Fiscal year 1954
Expenditures^
July
1953
August
1953
September
1953
October
1953
November
1953
December
1953
January
1954
CO
Agriculture Department—Continued
Agricultural Marketing Service:
894
233
3,017
33
457,824
1,010
12,703
6,751
30
169,129
1,122
24,371
12,200
29
-47,207
1,265
2,266
25,857
31
•232,561
1,676
2,728
20,101
36
-200,831
1,717
25,613
24,870
-198
154,070
tn
2,398
1,303
Removal of svirplus agricultural commodities
Other
.
...
1,398
735
3,655
40
-617
45
197
14,140
290
12,658
1,437
23
9,365
49
15,025
-29,314
12,958
Tl
15,361
2,068
17,394
2,104
16,289
2,055 .
20,598
2,896
20,948
1,931
14,806
595.
36,816
25,979
583
1,131
13,594
532
5,112
16,258
790
4,461
15,151.
587
49,944
317,668
81,366
332,439
. -88,558
320,193
Commodity Stabilization Service:
Other
Farmers Home Administration:
Other''
Rural Electrification Administration:
-19,766
3,253
38,507
2,099•
66,879
582
5,542
23,992
Other
Other''
-27,686
856
-21,724
601,562
/
Commerce Department:
13,854
415
Maritime activities:
Public enterprise funds (net)
Other
Public Roads Bureau:
Other
Other''
Total Commerce Department
289
16,131
304
12,932
886
11,966
5,637
12,562
6,454
13,778
6,323
-171
15,424
-703
.12,640
-1,259
25,500
-2,600
51,971
-860
8,582
-1,058
21,123
-17,611
10,742
49,553
11,873
5,801
55,046
5,090
38,735
60,230
5,359
9,926
56,800
4,871
6,930
60,678
4,217
6,812
57,061
4,190
5,937
31,742
.2,888
8,662
'96,749
122,650
116,190
131,790
97,033
106,268
56,524
H
O
s
tn
CO
tn
9
tn
i
O
Tl
H
tn
X
tn
Fiscal year 1954
Expenditures^
February 1954
Agriculture Department—Continued
Agricultural Marketing Service:
Marketing services
National school lunch program
.
'
Removal of surplus agricultural commodities
Other
Commodity Stabilization Service:
March 1954
i^ril 1954
May 1954
June 1954*
Total
fiscal year
1954
Total
fiscal year
1953
Commerce Department:
Ci-vil Aeronautics Administration
Maritime activities:
Public enterprise funds {net)
Other
Public Roads Bxireau:
Other
Other''
Total Commerce Department
772
1,234
18,899
41
877
11,058
17,146
• 31
996
548
10,960
32
-581
540
16,496
27
12,108
83,517
177,575
367
11,662
82,835
82,285
399
-274,827
34,607
10,594
35,938
25
10,283
301,519
6,196
2,751
-24,882
561,398
57
891
2,365
137,336
576
1,358
14,385
1,526,294
41,462
66,452
-8,131
1,942,657
12,769
62,618
-2,362
34,426
2,028
16,014
2,036
12,282
2,198
4,975
1,931
3,746
1,887
180,775
26,435
166,437
28,967
13,198
571
-21,397
20,777
547
24,382
16,182
535
39,384
16,273
575
7,671
18,558
595
1,902
209,969
7,348
133,224
231,499
7/941
48,44.9
-154,407
Sugar Act program
Commodity Credit Corporation (net)
Other
Farmers Home Administration:
Loans
Other''
Rural Electrification Administration:
Loans
Other
Other^
962
1,485
17,623
236
163,462
433,694
659,727
224,283
2,915,470
3,216,924
9,624
5,988
9,780
7,125
9,815
5,614
8,928
5,465
7,158
7,741
138,080
52,241
160,852
3,773
-949
8,299
-1,111
6,488
-2,573
7,407
-712
5,647
-648
11,751
-30,256
185,573
8,521
226,757
27,238
2,236
3,516
28,326
2,414
6,854
33,399
1,883
6,992
35,087
3,478
6,193
35,831
-6,025
-25,577
530,992
42,475
80,781
509,437
43,275
110,425
55,952
59,876
62,537
64,087
30,231
999,887
1,063,040
r
tn
C/)
Footnotes at end of table.
-J
4^
TABLE 3, --Budget receipts and expenditures, monthly for fiscal year 1954 and totals for 1953 and 1954--Continued
00
[In thousands of dollars]
Fiscal year 1954
Expenditures^
July 1953
August 1953
September
1953 .
October
1953
November
1953
December
1953
January 1954
Defense Department:
Military functions:
Office of the Secretary of Defense
Army
Navy''
Air Force
32,911
1,274,639
905,365
1,049,887
36,654
1,357,882
858,490
1,283,566
33,223
1,351,024
937,727
1,337,472
59,726
1,452,042
863,058
1,370,112
34,476
965,081
901,391
1,290,556
36,731
893,915
1,006,233
1,486,418
39,491
1 037 966
926,768
1,180,883
Total military functions
tn
3,262,802
3,536,592
3,659,446
3,744,938
3,191,502
3,423,296
3,185,108
Civil functions:
Civilian relief in Korea
Corps of Engineers
Panama Canal Corapany (net)"'
Other''
16,637
22,266
-1,647
1,703
9,963
50,675
2,388
-145
4,392
58,292
102
-536
6,829
55,875
-1,688
1,448
5,038
47,826
-1,502
879
4,347
40,896
9,353
2,264
1,689
31,135
-970
6,246
Total civil functions
38,959
62,881
62,250
62,463
52,240
56,860
38,100
Total Health, Education, and Welfare Department
Tl
tn
CO
tn
tn
H
176,331
Undistributed (temporarily)...Health, Education, and Welfare Department:
Office of Education:
Grants for school construction..
. ..
Other
Public Health Service:
Grants for hospital construction
Other''
Social Security Administration:
Grants - o States for public assistance
t
Other''
Cither
H
O
O
Tl
12,558
6,516
14,669 •
11,486
11,406
3,311
9,992
5,679
8,272
4,972
9,262
7,477
2,605
23,020
H
X
tn
6,344
12,235
7,746
19,100
7,152
11,936
5,707
14,846
9,620
9,974
9,077
11,185
6,703
15,117
tn
170,361
4,563
7,578
115,788
1,569
2,169
85,859
3,122
372
153,307
3,996
6,300
118,768
1,245
3,383
98,555
4,859
4,178
147,893
-17,430.
7,683
220,154
.172/527
123,159
199,825
156,234
144,592
185,590
>
Fiscal year 1954
Expenditures^
February 1954
Defense Department:
Military functions:
Office of the Secretary of Defense
Army
Navy''....
Air Force
March 1954
April 1954
May 1954
June 1954'^-
Total fiscal
year 1954
Total fiscal
year 1953
36,843
969,597
876,988
1,272,486
Total civil functions
37,246
789,568
851,427
1,155,457
45,343988,149
1,194,892
1,704,104
464,191
12,910,305
11,292,804
15,668,473
408,780
16,241,695
11,874,830
15,085,228
3,272,515
3,137,476
2,833,697
3,932,488
40,335,773
43 ,.610,532
11,465
30,339
-3,506
85
Total military functions
Civil functions:
Civilian relief in Korea.
Corps of Engineers
:
Panama Canal Company (net)''
Other''
36,538
908,669
969,503
1,222,767
3,155,914
;
35,011
921,773
1,000,964
1,314,767
1,864
38,330
-2,395
-386
3,871
39,364
9,744
-11,538
11,966
40,834
-794
1,023
4,885
54,978
334
865
82,947
510,810
9,418
1,908
93 402
691,571
6,283
21,383
605,084
812,639
Health, Education, and Welfare Department:
Office of Education:
Grants for school construction
Other
Public" Health Service:
'
Grants for- hospital construction.
Other''
Scjcial Security Administration:
Grants to States for public assistance
Other ^
Other
38,383
37,415
41,441
53,029
61,063
-11,363
41,161
-409
-70,587
-135,132
5,517
15,749
6,397
12,213
9,272
7,313
5,373
4,304
18,523
1,397
113,846
103,436
135,186
99,640
6,480
10,957
10,947
10,512
6,478
15,306
5,779
9,691
7,885
11,323
89,919
152,181
108,909
162,681
119,567
95
2,855
108,063
309
2,615
104,451
25,029
6,693
105,336
4,302
3,561
109,570
954
4,131
1,437,516
32,613
51,518
1,329,933
36,089
47,205
161,220
151,057
174,542
138,346
153,783
1,981,030
1,919,643
r
"
.
Total Health, Education, and Welfare Department.. .
tn
Footnotes at end of table.
4^
IN;
4*^
LO
O
TABLE 3. r-Budget receipts and expenditures, ,monthly for fiscal year 1954 and totals for 1953.and 1954r-Continued
[in thousands of dollars]
Fiscal year 1954
Expenditures^
July 1953
August 1953
September 1953
October 1953
November 1953
December 1953
January 1954
Interior Department:
Other power marketing agencies
Other:
Public enterprise funds- (net)
Other
22,687
5,756
19,495
3,944
26,924
4,602
19,240
5,705
16,794
3,998
15,687
5,406
14,883
185
. ^94
26,303
-3,985
36,749
361
35,765
175
24,858
-754
23,834
411
26,542
56,203
•67,652
49,978
43,871
43,046
34,395
9
-567
19,895
54,253
tn
tn
Total Interior Department
Justice Department:'
"
Federal Bureau of Investigation
Federal prison industries..••••.«••...........
0 ther
C/)
tn
9
5,522
-512
16,577
6,300
-118
6,833
6,533
28
8,713
6,445
-809
7,846
9,119
-301
10,013
6,427
-121
8,058
13,261
21,587
13,015
15,275
.13,432
18,831
14,364
47
5,240
5,528
45
2,003
4,974
10,349
2,748
5,143
51,025
4,564
5,653
263
2,159
• 6,963
2,126
5,141
4,995
39,929
o
14,930
Tl
10,816
Total Justice Department
3,642
-236
9,855
7,021
18,240
61,242
9,335
12,262
54,859
-746
160,000
.11
12
18
60,000
1,176
-746
-746
160,011
12
. 18
61,176
-746
42,943
18,412
6,320
8,141
9,955
12,233
10,059
5,153
4,694
17,712
3,233
18,634
3,146
22,163
3,046
18,878
3,064
19,568
4,711
. 28,286
3,037
Labor Department:
Veterans unenqjloyment conroensation.
0 ther''
Total Post Office Depar'tment...•••..•....
Stfltp Denar"tment.......................................
-546
-546\
Treasury Department:
i
H
Post Office Department:
Other
tn
tn
Fiscal year 1954
Expenditures^
February 1954
March 1954
April 1954
May 1954
June 1954^
Total
fiscal year
1954
Total
fiscal year
1953
Interior Depar-tment:
14,024
5,971
13,178
3,431
15,166
5,803
U,784
3,120
3,541
5,162
1%,402
53,132
230 923
65 065
1,107
21,974
-439
19,040
4,572
12,031
525
15,830
1,035
20,837
1,946
283,659
6,158
285 303
43,075
35,260
37,573
34,259
30,574
535,140
587 449
6,273
7,750
6,279
-292
8,377
6,272
-280
7,928
6,223
-226
9,392
6,305
-26
9,296
75,340
-3,335
110,638
72,697
-2 933
100,887
13,580
14,364
13,919
15,390
15,575
182,643
170,651
Veterans unemployment compensation..................
Other''
6,245
9,374
1,869
3,383.
16,768
1,382
13,435
5,983
5,710
16,518
1A,433
6,899
59,421
13,438
5,779
202,837
81,852
69,825
202,170
25,907
71,894
Total Labor Depsu?tment.............................
17,488
21,534
25,179
37,850
78,638
354,5U
299,972
'41,482
42
90,000
938
49
154
^ -39,484
-654
^ 311,998
-292
660,121
-1,194
41,523
90,938
49
154
-40,138
311,705
658,928
11,575
10,560
4,130
2,705
19,432
156,466
271,061
15,203
3,119
21,153
2,782
18,575
.3,078
17,255
3,081
19,934
4,632
222,512
41,671
229,757
40,483
Other power marketing agenc-ies• .....................
Other:
•Public enterprise funds (net)
Other
,
Total Interior Depar'tment.
Justice Department:
Federal Bureau of Investigation
Federal prison industries
Other
Total Justice Department
-M3
^
Labor Department:
r
tn
CO
Post Office Depar-tment:
Other
Total Post Office Depar-tment.......................
State Department
Treasury Department:
Coast Guard........*..........•.•....«.........••...
Footnotes at end of table.
4^
-1^
TABLE 3. --Budget receipts and expenditures, monthly for fiscal year 1954 and totals for 1953 and 1954--Continued
t\>
[in thousands of dollars]
Fiscal year 1954
Expenditures^
Treasury Department—Continued
Fiscal Service:
interest on the public debt.".
'
.
Interest on uninvested tru^t funds
•
-Claims, judgments, private laws, etc.:
Other agencies
Other''
Intemal Revenue Service:
July
1953
August
1953
September
1953
October
1953
District of Columbia—Federal contribution and loans
Total budget expenditures
Budget surplus (^ or deficit (—)
-)
December
1953
January
1954
4^
236,729
205,972
560,168
353,899
164,292
1,294,463
245,434
9,524
7,485
23,224
5,701
16,950
6,741
19,708
5,234
i6,'345
6,842
19,923
8,143
104,066
-84,401
5,697
6,624
21,114
1,102
4,488
30,223
1,652
11,068
22,146
4,335
232,262
1,383,170
339,717
10,732
30,537
2,203
4,584
20,441
1,663
4,892
22,166
1,240
6,124
21,462
2,750
307,056
O'ther
Other''
November
1953
282,529
633,936
434,385
2,133
9
H
O
Tl
11,017
•
tn
-1,150
5,071,940
6,018,071
6,021,926
5,752,561
5,182,786
6,437,096
-1,640,277
-151,782
-2,747,537
-627,912
-1,848,677
-185,093
tn
H
5,218,228
-1,711,519
H
X
tn
CO
tn
o
Tl
H
»Less than $500.
^ Intemal revenue and customs receipts are stated on the basis of reports of collections received from collecting officers. Other receipts are reported on the beisis
of confirmed deposits recorded in Treasury accounts.
^ Distribution between income taxes and employment taxes is made in accordance with provisions of Sec. 109 (a) (2) of the Social Security Act Amendments of 1950 for
appropriation to the Federal old-age and survivors insurance trust fund.
^ Amounts equal to taxes on carriers and their employees (minus refunds) are appropriated to the railroad retirement account.
X
tn
cn
>
CO
Fiscal year 1954
Expenditures^
Treasury Department—Continued
Fiscal Ser-vdLce:
^
Interest on the public debt
Claims, judgments, private laws, e t c . :
Defense Depar'tment
•
Other agencies
*
Other''..
•.
Intemal Revenue Service:
Interest on refunds of taxes
Other
Other''
Total Treasury Department.
Febrxiary 1954
March 1954
i ^ r i l 1954
May 1954
June 1954^^
371,633
587,920
350,335
4,139
248,710
726
1,762,932
52
24,126
396
6,142
15,294
2,841
8,057
14,974
4,443
7,381
12,433
1,934
6,111
-45,610
62,645
9,026
3,274
23,870
3,114
10,071
22,499
1,529
8,086
21,766
-3,929
2,977
21,841
913
450,877
672,145
428,853
316,031
Budget surplus (-»•) or deficit (-)
6,503,580
4,746
136,679
87,445
9,603
34,343
-420
82,524
292,408
16,151
74,363
284,852
13,747
1,857,136
7,338,095
7,375,653
13,150
11,750
4,707,412
5,554,986
5,295,560
5,203,345
7,308,444
67,772,353
74,274,257
-h736,758
-f5,879,208
-2,544,803
-1,611,213
-H3,335,876
-3,116,966
^9,449,213
* In certain classifications,' receipts and expenditures reported for the month of June include adjustments of prior
^ Breakdown not available..
* Expenditxires are stated on the basis of checks issued and cash payments made as reported by Government disbursing
' Includes certain pviblic enterprise funds stated on a net basis.
'
^ Transactions for the fiscal year 1954 are reported on -the basis of cash receipts and expenditures recorded in the
change is consistent with the -treatment of transactipns of other agencies of the Government. - d jus-tment to this basis
A
6,382,485
4,916
Total
fiscal year
1953
125,332
87,536 )
82,559
1,150
Total budget expenditures
Total
fiscal year
1954
r
tn
months.
officers.
accounts of the Post Office Department. This
is included in the month of June.
4^
4^
oo
4*-
T A B L E 4 . . — T r u s t a c c o u n t and o t h e r t r a n s a c t i o n s , , m o n t h l y for the f i s c a l y e a r 1954 and t o t a l s for 1953 and 1954
[ i n thousands of d o l l a r s . On ba.sis of "Itonthly Statemerit of R e c e i p t s and Expenditxires of the United S t a t e s Govemment," see "Bases of T a b l e s " ]
F i s c a l year 1954
Trust accounts, e t c .
Receipts
F e d e r a l employees' r e t i r e m e n t funds:
C i v i l s e r v i c e r e t i r e m e n t fund:
Deductions from s a l a r i e s and o t h e r r e c e i p t s . . . .
D i s t r i c t of Colximbia and Goverament c o r p o r a tions c o n t r i b u t i o n s . . . . . . . . . . . . . . . . . . . . . . . . . .
T r a n s f e r s from g e n e r a l fxmd (U. S . s h a r e ) . . . . . .
Foreign s e r v i c e r e t i r e m e n t fxmd:
Deductions from s a l a r i e s and o t h e r r e c e i p t s . . . .
F e d e r a i o l d - a g e and sxirvivors i n s u r a n c e t r u s t fxmd:
A p p r o p r i a t i o n s ( t r a n s f e r s from g e n e r a l fxmd)^
D e p o s i t s by S t a t e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intrprp.st ''nd pirif-it..«? nn •5nv**'=5+"i«="nt.s,,,,,,.»»,.,,...
T r a n s f e r s from r a i l r o a d r e t i r e m e n t accoxmt
Other
R a i l r o a d Retirement Board:
R a i l r o a d r e t i r e m e n t accoxmt:
A p p r o p r i a t i o n s ( t r a n s f e r s from g e n e r a l fvmd)^..
I n t e r e s t on i n v e s - t m e n t s . • • . • • • . . . . . . . . . . . . . • . . .
Unen^jloyment insxirance c o n t r i b u t i o n s f o r
administrative e x p e n s e s . . . . . . . . . . . . . . . . . . . . . . . . . .
Unemployment t r u s t fxmd:
D e p o s i t s by S t a t e s .
September 1953
August 1953
J u l y 1953
November 1953
October 1953
33,072
January 1954
December 1953
36,431
34,338
34,145
37,454
36,463
35,154
20
109
2,430
224
31,397
1,456
337
454
572
690
829
69
1
47
1
65
2
59
2'
43
3
72
4
49
7
205,642
8,132
1
519,437
10,447
-1
298,557
691
10,917
160,237
13,443
14,818
388,360
9,991
149,581
1,098
190,960
85,333
490
268
3
4
3
20
2
2
9
53,920
307
13,628
398
89,957
537
52,092
• 894
12,272
715
1,692
7
359
2,186
127
3 48,065
99
41
•
94,036
176
tn
CO
9
tn
H
o
824
60,428
26
10,317
343
39,148
10,501
253,477
319,975
7,211
102,824
28,443
147
61
1,238
2,539
10
410
3,408
24
12
4,614
2,805
21
1,689
674
2,798
42
2,042
44
3,124
39
4,007
35,517
8
30,486
20,611
59
28,602
4,225
21
34,413
4,268
112
29,302
5,324
496
30,544
4,896
155
33,314
3,152
4,244
N a t i o n a l s e r v i c e l i f e insxirance fxmd:
H
tn
R a i l r o a d xmen5)loyment insxirance accoxmt:
T r a n s f e r s from r a i l r o a d unemployment insxirance
administration f x m d . . . . . . . . . . . . . . . . . . . . . . . . . .
V e t e r a n s ' l i f e insxirance fxmds:
Govemment l i f e i n s u r a n c e fund:
tn
S
3
tn
F i s c a l y e a r 1954
Receipts
F e d e r a l einployees' r e t i r e m e n t fx^ids:
C i v i l s e r v i c e r e t i r e m e n t fund:
Deductions from s a l a r i e s and o t h e r r e c e i p t s . . . .
D i s t r i c t of Colximbia and Govemment c o r p o r a tions c o n t r i b u t i o n s . . . . . . . . . . . . . . . . . . . . . . . . . .
February 1954
44,203
March 1954
May 1954
A p r i l 1954
35,230
24,069
Total
f i s c a l year
1954
June 1954^^
33,439
Total
f i s c a l year
1953
45,058
429,060
419,341
3,906
225,654
31,397
3,854
214,609
321,450
701
615
768
639
4,086,293
43,308
386,640
3 652,959
89,295
851
Other
R a i l r o a d R e t i r e m e n t Board:
R a i l r o a d r e t i r e m e n t accoxmt:
A p p r o p r i a t i o n s ( t r a n s f e r s from g e n e r a l fxmd)^..
I n t e r e s t on i n v e s - t a n e n t s . . . . . . . . . . . . . . . . . . . . . . . .
Uneniployment insxirance c o n t r i b u t i o n s f o r
Unemployment t r u s t fxmd:
D e p o s i t s by 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 xmemployment insxirance account:
I,'l75
1*257
'218,098
58
7
44
5
61
.7
47
6
573
597,635
11,589
588,696
9,113
10,946
278,344
6,571
14,818
758,607
19,127
506,841
1,715
196,182
11,595
3
4
3
12
2
4,537,270
92,412
438,909
11,595
68
83,229
986
51,406
1,854
4,180
1,579
88,590
1,142
46,517
89,970
3 637,894
98,659
2,241
90
536
1,557
9,821
173,779
42
15,738
1,131
48,904
11,334
270,378
96
18,164
97,962
1,245,961
224,411
1,371,105
202,768
700.
F e d e r a l o l d - a g e and sxirvivors insxirance t r u s t fund:
A p p r o p r i a t i o n s ( t r a n s f e r s from g e n e r a l fxmd)^.
1,057
162
T r a n s f e r s from g e n e r a l fxmd (U. S . s h a r e )
F o r e i g n s e r v i c e r e t i r e m e n t fxmd:
Deductions from s a l a r i e s and o t h e r r e c e i p t s , . . .
2,959
36
624
5,825
17,835
15,042
4,244
4,865
T r a n s f e r s from r a i l r o a d uneii5)loyment insxirance
administration f x m d . . . . . . . . . . . . . . . . . . . . . . . . . .
V e t e r a n s ' l i f e insxirance funds:
Govemment l i f e insxirance fund:
P-TPTTi-liiTn.t? a n d n t . h p - r TPr.p-\-ntFi.. . . . . . . . . . . . . . . . . . . . .
41
r
tn
CO
83
1,836
94
3,458
105
2,668
118
2,517
42,209
3,187
43,441
34,745
44,913
34,040
355
33,351
4,911
401
37,743
5,968
452
33,377
7,895
505
30,089
5,367
153,843
34,036
5,477
156,398
390,773
72,102
154,873
397,714
84,035
N a t i o n a l s e r v i c e l i f e insxirance fxmd:
T r a n s f e r s from g e n e r a l fund
90
Footnotes at end of table.
00
T A B L E 4 . - - T r u s t a c c o u n t a n d o t h e r t r a n s a c t i o n s , m o n t h l y for the f i s c a l y e a r 1954 a n d t o t a l s for 1953 and 1 9 5 4 - - C o n t i n u e d
OO
[in thousands of dollars]
Fiscal year 1954
Trxist accdxmts, etc.
Receipts and expenditxires
July 1953
Axigust 1953 • September 1953
October 1953
November 1953
December 1953
2
17
19,060
19,094
5,386
16,312
2,669
10,653
5,266
26,137
2,272
14,276
2,454
55,802
838,919
659,039
January 1954
RECEIPTS
Other trust fxmds and accoxmts:
Qther trust accoxmts:
Adjusted service certificate fxmd
District of Columbia:
Revenues from taxes, etc
'
Transfers from general fund (U. S. share)...
Indian tribal fxmds
Other
Increment resulting from reduction in the weight of
the gold dollar
Total receipts
tn
{*)
5,559
983
1,479
16,906
4,691
11,017
2,429
70,390
429,476
1,159,139
181
()
*
6,816
1,319
2.1,013 -
232,854
Tl
tn
9
EXPENDITURES
(Except investments)
Federal eraployees retirement fxmds:
Civil ser-vice retirement fxmd—annuities and refxmds
Foreign service retirement fxmd—annuities and
refunds
.
•
F e d e r a l o l d - a g e and sxirvivors i n s u r a n c e t r u s t fxmd:
A d m i n i s t r a t i v e expenses:
Bxireau of Old-Age and .Sxir-vlvors Insurance
Reimbursements " o general fund^
t
Benefit payments
Other
• Railroad Retirement Board:
Railroad retirement accoxmt:
Administrative expenses
Benefit payments
.
Transfers to Federal old-age and survivors
insvu-ance t r u s t fxmd
Uneraployment insxirance a d m i n i s t r a t i o n fxmd
Unemployment trust fund:
Railroad imemployment insurance accoxmt:
Benefit payments
State accounts—withdrawals by States
H
O
tn
H
35,107
34,234
34,488
32,248
161
189
174
293
4,632
2,226
260,989
1
5,237
2,226
263,853
o
Tl
H
4,846
1,944
254,509
478
39,707
4,516
2,855
254,714
494
40,097
4,627
42,568
256,811
500
39,945
505
39,789
(*)
401
40,234
6,790
2,226
268,100
()
*
588
40,258
4,535
269,614
()
-
6,237
62,430
6,767
64,719
7,364
66,089
7,453
97,777
11,294
104,406
tn
>
574
39,773
1,002
4,971
69,930
X
tn
14,090
164,049
Fiscal ^ear 1954
Trxist accoxmts, e t c .
R e c e i p t s and ejcpenditures
February 1954
April 1954
May 1954
•June 1954'^
Total
fiscal year
1954'
Total
fiscal year
1953 .
RECEIPTS
Other trust fxmds and accounts:
- Other trusx accounts:
Adjusted service certifica-te fund
District of Columbia:
Revenues frora taxes, etc
Transfers from general fxmd (U. S. share)...
Indian tribal fxmds
Other
Increraent resulting from reduction in the weight of
the gold dollar
Total receipts
()
*
(*).
201
21,528
23,299
4,779
17,600
2,638
31,617
1,085
18,481
4,031
8,120
5,685
1,150
4,069
-30,061
(*)
204
138,644
13,150
34,490
260,934
123,223
11,750
23,092
242,425
68
5,350
41
993,110
823,875
478,533
32,870
35,284
34,418
33,854
34,366
409,125
361,297
206
177
172
181
166
2,205
1,832
4,893
5,156
6,083
287,371
5,393
2,112
293,884
5,344
2,112
293,969
6,762
2,112
296,683
5
62,732
66,465
3,275,556
8
65,071
57,399
2,627,492
•^8,929,289
EXPENDITURES
(Except investments)
Federal employees retirement fxmds:
Civil ser-vice retirement fund—annuities and refxinds
Foreign service retirement "fxmd—annuities and
refxmds
'.,
F e d e r a l o l d - a g e and sxirvivors i n s u r a n c e t r u s t fund:
Administrative expenses:
Bxireau of Old-Age and Sxirvivors I n s u r a n c e
Reimbxirsements t o g e n e r a l fxmd^
B e n e f i t payments
Other
Railroad Retirement Board:
Railroad retirement accoxmt:
• Administrative expenses
Benefit payments
Transfers to Federal old-age and survivors
insurance trust fund
.
'
Uneraployment insurance adrainistration fund
Uneraployment t r u s t fxmd:
R a i l r o a d xinemployraent insxirance accoxmt:
Benefit payraents
State accounts—withdrawals by States
Footnotes at end of table.
g
r
tn
CO
275,058
()
*
345
39,785
()
*
353
40,574
()
*
492
41,782
()
*
540
41,3.38..
551
41,302
'6,144
458,930
11,595
. 13,634
11,595
542
14,490
177,216
.'5,820 . 434,583
19,439
225,740
19,364
201,850
14,686
176,861
13,880
193,752
140,034
1,604,819
97,272
912,551
4^
oo
4*'
oo
00
T A B L E 4 . -^-Trust a c c o u n t a n d o t h e r t r a n s a c t i o n s , m o n t h l y for the fis<:al y e a r 1954 a n d t o t a l s for 1953 and 1 9 5 4 - - C o n t i n u e d
' [ [In thousands of d o l l a r s ]
Fiscal year 1954
'•''. Trust accounts,. etc.
Expenditures (except investments)
July 1953
• August 1953
September 1953
October 1953
November'1953
December 1953
January 1954
CO
V e t e r a n s ' l i f e insxirance fxmds:
Government, l i f e i n s u r a n c e fiind: '
B e n e f i t s and r e f u n d s . . . ; . , . . . . . . . . .
Dividend p a y m e n t s . . . . J . . . . . , . . . . " . 1.-.
N a t i o n a l s e r v i c e l i f e ' i n s x i r a n c e fxmd:
Benefits a n d - r e f x m d s . . . . . . . . . . . . .
Di-vidend p a y m e n t s . . . . . . . . . . " . . . . . .
Other truist fxmds_ and. a c c o u n t s :
Adjvis-ted s e r v i c e c e r t i f i c a t e f x m d ; . . .
D i s t r i c t .of C o l u n i b i a . . . . ' . i
Indian tribal- funds.........
'.',•.:.......
Other.',.... ..i/...,....................
Deposit fund accoxmts ( n e t ) :
.
D i s t r i c t of C o l x i m b i a . . . . . . . . . . . . . . ' . : .
GoveiTment sponsored c o r p o r a t i o n s . . . .
iiidian t r i b a l f u n d s . . . . . . . . . . . . . . . . . . i
•. O t h e r . - . . . . . . . . . . . . . . . , . . .
.
,..,.
, -To'tal expenditures.; .,.:....'.-.......
Excess of receipts..........;...;.........
,. Excess of e j c p e n d i t u r e s . . . . . . . ' ; . : . . . ' . . . . . .
PO
.4,584
8,227
62,638
5,228
tn
.5,708
.34,068
14,055
33,767
• 16,594
34,046
16,410
34,410
14,905
32^567
12,301-
33,180
13,583
35,980
11,288
15.
15,923
1,401
11,051
.
17
. 15,717
2>229.
•.71,410
23
.5,745
2,892
.32>242
• 19
-19,843
891
36,862
. ;. 2 1
10,400
2,112
• 7,407
• .511
7,121
2,331
•15,734
•9
13,669
3,589
18,105
• -130
12,832
. ••.283
117,648
74
, .8,577
- , 753
.-96,667-
•
16
67,124
• .-1,693
-161., 381
-67.
7,434
3,179
- 1 . , 655
• 59
126,612-5,047
-7,087
. -53
-38,111
1,162
105,922
-167
-290,921
. 1,449
-3,734
633,419
464,041.-
451,080
•603,-947
(636,623
.615^729
316,236
202,296
43,310
695,098.
203,943
32,225
225,459
B
H
O
in
CO
tn
9
tn
H
o
Tl
H
X
tn
tn
Fiscal year 1954
Trust accoimts, etc.
Expenditures (except investments)
Veterans' life insurance funds:
Government life insurance fund:
Benefits and refimds
,....
Di-vldend payments
National ser-vice life insurance fxmd:
Benefits and refxmds
Dividend payments
Other trust fxmds and accoxmts:
Adjusted service certificate fxmd
District of Columbia
Indian tribal funds
Other
;
Deposit fund accoxmts (net):
District of Columbia
Govemment sponsored corporations
Indian tribal fxmds
Other
Total expenditures
Excess of receipts
Excess of expenditures
February 1954
March 1954
April 1954
Total
fiscal year
1954
May 1954
Total
fiscal year
1953
84,020
62,638
5,936
81,534
49,223
15,306
41,858
18,333
40,587
17,271
38,871
14,535
36,192
13,209
• 444,749
177,790
433,932
153,796
8
11,298
1,652
17,301
15
11,943
4,182
29,961
20
14,707
790
17,014
6
11,233
1,607
23,080
30
15,863
2,364
20,955
694
153,461
26,038
301,122
204
143,260
24,703
272,830
259
-243,970
1,116
-4,327
-90
-48,133
-266
-85,624
-144
-86,225
-830
199,359
12
27,976
2,671
-128,827
-42
19,668
1,247
-53,117
-165
-437,137
4,029
-124,490
-2
-119,880
-52
-409^ 495
410,801
601,398
809,805
568,009
653,234
6,769,322
5,168,818
2,386,037
3,760,471
582,309
r
tn
CO
Footnotes at end of table.
00
TABLE 4. --Trust account and other transactions, nnonthly for the fiscal year 1954 and totals for 1953 and 1954--Continued
o
[in thousands of dollars]
Fiscal year 1954
Sales and redemptions of obligations of
Govemment agencies in market (net)
Guaranteed by the United States:
Cominodity Credit Corporation
Federal Farm Mortgage Corporation
Federal Housing Administration
Home Owners' Loan Corporation
Not guaranteed by the United States:
Federal home loan banks
Federal intermediate credit banks
Federal land banks
Home Owners' Loan Corporation
Net sales
Net rederaptions
July
1953
September
1953.
August
1953
October
1953 .
November
1953
December
1953
January
1954
PD
.
14
-10,903
20
1
-339
12
2
-394
9
3
-2,302
11
8
-7,874
9
3
-1,850
5
4
522
14
10
-15,410
5
-165
-725
1
-98,350
23,785
1
20
71,855
7
-63,990
31,211
-75,492
25
51,574
6
10
27 215
4
.
1
49,763
tn
27,770
{*)
-26,265
()
^
-1,215
()
*
()
*
-74,946
()
*
9
-116,128
69,595
tn
H
O
Tl
H
X
tn
tn
>
Fiscal year 1954
Sales and rederaptions of obligations of
Government agencies in market (net)
Guaranteed by the United States:
Commodity Credit Corporation
Federal Farm Mortgage Corporation
Home Owners' Loan Corporation
Not guaranteed by the United States:
Federal home loan banks
Federal intermediate credit banks
Federal land banks;..
Horae Owners' Loan Corporation
Net sales
Net redemptions
February
1954
March
1954
April
1954
May
1954
Total
fiscal year
1954
June
1954
Total
fiscal year
1953
5
-478
6
2
-734
9
4
-3,545
4
5
-639
7
1
-997
8
51
-29,534
. 114
558
87
-7,347
195
110,170
7,335
3
1
98,940
-38,700
6
99,970
-43,445
1
-10,805
-40,200
-71,000
105
-30,710
8
135,940
43,785
-146,450
3
11,690
65,120
-45,098
9
3,909
25,214
()
*
(*)
{*)
-122,632
117,042
59,523
52,988
-31,586
Footnotes at end of table.
r
tn
CO
4»^
-^
4^
*
T A B L E 4 . - - T r u s t a c c o u n t and o t h e r t r a n s a c t i o n s , m o n t h l y for the f i s c a l y e a r 1954 a n d t o t a l s for 1953 and 1 9 . 5 4 - - C o n t i n u e d
F i s c a i year 1954
Investments of Government agencies i n p u b l i c
debt s e c x i r i t i e s ( n e t )
Trust accounts:
F e d e r a l eraployees' r e t i r e n e n t fxmds
F e d e r a l o l d - a g e and sxirvivors insxirance t r u s t fxmd..
R a i l r o a d r e t i r e m e n t accoxmt
Unemployment t r u s t fund
V e t e r a n s ' l i f e i n s u r a n c e fxmds:
Government l i f e insxirance fxmd
NationELl s e r v i c e l i f e insxirance fund
Other
Wholly owned Government c o r p o r a t i o n s and a g e n c i e s :
Federal Hoxising A d m i n i s t r a t i o n
Federal Savings and Loan Insurance C o r p o r a t i o n . .
Other
Govemment sponsored c o r p o r a t i o n s :
Banks for c o o p e r a t i v e s
F e d e r a l Deposit Insurance C o r p o r a t i o n . .
F e d e r a l home loan banks
^
F e d e r a l land banks
Net investments during p e r i o d . ;
July
1953.
3,570
86,700
7,099
. -3,000
.
Augxist
1953
September
1953
-25,450
-8,800
300
November
1953
December
1953
January
1954
37,705
63,400
53,109
245,000
-1,106
71,594
13,088
-54,019
057
39,341.
-26,021
-17,000
•551
26,000'
47,359
139,000
2,778
186,609
13,911
-2,019
2,291
-146,000
-28,108
-150,000
10,000
310
-3,500
-10,000
6,080
-66,000
-10,000
7,262
-3,500
-10,000
1,615
-3,000
-10,000
-5,307
-2,000
-10,000
-8,953
1,000
19,280
700
3,000
.-18,474
1,700
-7,500
-12,128
-255
61,500
224,800
-5
-74,658
-4,000
-10,258
October
1953
1,000
.
1,250
13,683
-22,600
-1,500
1,350
35,700
61,094
395,424
. 70,787
7,500
2,000
-235
1,000
12,100
.
.
-6,000
7,500
-6,750
18,401
10,000
-12,876
4,046
-76,260
239,705
. 169,368
s
o
TJ
H
X
tn
CO
tn
o
po
tn
H
>
o
T
l
H
X
tn
H
PD
. tn
>
CO
C
Fiscal year 1954
Investments of Government agencies in public
debt secxirities (net)
T r u s t accoxmts:
F e d e r a l employees' r e t i r e m e n t funds
1
F e d e r a l old-age and sxirvivors insurance trxist fxmd*
R a i l r o a d r e t i r e m e n t accoxmt
Uneraployment trxist fund^
V e t e r a i n s ' . ' l i f e i n s u r a n c e fxmds:
Government l i f e i n s u r a n c e fxind
.;....
National service l i f e insurance f u n d . . . . . . . . . . .
Other"^
'..
....
Wholly owned Government corporations and agencies:
Federal Hoxising'Administration.
Federal Savings and Loan Insurance Corporation.....
Other.,
;
Government sponsored corporations:
Banks for cooperatives
Federal Deposit Insxirance Corporation.
;
Federal home loan banks.
Federal land banks
.;
".
..
i
Net investments during period.
February 1954
April 1954
Total
fiscal year
1954
May 1954
Total
fiscal year
1953
1,923
38,800
31,528
-20,000
-1,991
164,918
11,654
^225,019
; -2,273
245,941
-34,300
-160,000
-1,192
229,000
47,590
79,000
210,428
515,967
65,543
-80,019
252,328
1,522,270
202,452
-248,075
587,554
1,544,542
279,659
589,960
^,000
-20,000
-777
^,000
-20,000
. 5,419
^,000
-20,000
16,287
^,000
-20,000
-855
33,000
143,000
-9,621
-65,000
23,000
1,202
-1,500
58,835
9,376
. 6,000
-11,087
-10,650
-10,500
. 7,312
6,900
18,500
-40
5,800
2,000
220
-65,100
3,000
1,201
-86,100
10,700
-1,551
58,750
8,700
12,039
-200
5,000
30,090
-1,550
51,765
855
5,000
-28,226
-562
5,000
50
:27,367
21,312
4,495
10,400
-17,650
-5,750
9,040
102,050
313,704
18,346
5,000
86,900
60,770
55,728
-30,238
43,227
391,293
808,894
3,300,585
>
r
tn
Revised.
• ' • • . • . .
. * Less than $500;
^ Appropriations of "Social security-employment taxes" are transferred to the Federal old-age and survivors insurance.trust fxmd, as provided xmder Sec.l09(j ) (2)
of the Social-Security Act Aniendments of 1950-.
.
^ Amoxmts eqvial,to truces on carriers and their employees, minxis refxuids, sore appropriated to the railroad retirement account.
^ Inclxides transfers.of $34,852,000 in fiscal year 1954, and $33,000,000 in fiscal year 1953, appropriated funds for service credit payments.
* In certain classifications, receipts and ejcpenditures for the month of June inclxide adjustments for prior mcjnths.
^ Represents reimbxirsement for certain administrative expenses paid from general appropriations.
^ Breakdown is nbt available.
4^
*
oo
444
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 5. --Budget receipts and expenditures by major classifications, fiscal y e a r s 1947-1954
[in inillions of dollars. On basis of daily Treasury statements through 1952. Beginning wi-th fiscal year 1953
on basis of the "Monthly Statement of Receipts and Expenditures of -the United States Government,"
see "Bases of Tables"]
Classification
1947
1948
1949
1950
1951
1952
1953
1954
RECEIPTS
Internal revenue:
Income and profits taxes:
Corporation-'- ^
[19,292
Individual:
Not withheld^ ^ . . .
10,013
Withheld^
19,735
19,641
18,189
24,218
32,826 33,012
11,436
9,842
10,073
13,535
18,521 21,351
(10,747
21,635
29,306
31,171
29,482
28,263
37,753
51,347 54,363
53,906
1,459
380
1,616
557
1,690
564
2,106
550
3,120
578
4,086
620
4,537
603
Subtotal
Employment taxes:
Old-age insurance ^ ^.
Railroad retirement"^..
Unemployment insurance^
Subtotal ... • .
Excise tax'es"^'.
..
..
Estate and gift taxes^
Taxes not otherwise clas-
("21,523
3,569
735
185
208
223
226
234
259
277
285
2,024
2,381
2,477
2,883
3,931
4,562
4,983
5,425
(10,014
\ 8,049
8,301
8,348
8,303
. 9,423
. 9,726 10,825
Total internal rsvenue...
Miscellaneous receipts:
Renegotiation of war contracts''
, . . . ....
Surplus property disposal.
Other''
Total budget receipts....
Less:
Appropriations to Federalold age and survivors
insurance 'trust fiind^ ...
Appropriations to railroad retirement account^
Refunds of receipts^°
1
945
t
sified^ . . . 4 . . i , . . . . . ' . .
39,379
494
41,853
422
40,307
384
39,449
423
51,106
624
279
2,886
1,470
162
1,929
1,733
76
589
1,417
27
264
1,149
28
214
1,397
44,508
46,099
42,774
41,311
53,369
1,459
1,616
1,690
2,106
3,120
256
3,006'
723
2,272
550
2,838
550
2,160
575
2,107
^ 39,786
^ 41,488 ^ 37,696 ^ 36,495 ^ 47,568
9
65,635 70,171
613
551
70,300
562
39
141
1,685
36
103
2,172
67,999 72,649
73,173
3,569
4,086
" 4,537
738
2,302
620
3,118
603
3,377
^ 61,391 64,825
64,655
13
193
1,608
EXPENDITURES^^National security:
Military functions:
Air Force^^ .. .
•
Armyi3
()
^
409
464
6,238 ^^ 12,350 15,085
6,811 ^ ^ 15,364 16,242
9,961 11,875
5,757
2,292 3,956
948
1,791
1,648
908
15,668
12,910
11,293
3,629
1,895
919
651
21,663 ^ ^ 42,867 50,276
'
46,510
214
25
271
117
156
99
3,006
2,19.1
1,703
1,227
152
72
183
93
83
170
370
9
49
4,817
3,798
2,839
2,184
1,566
343
5
161
5,965
4,171
161
456
. 1,690
5,346
4,412
279
647
3,506
4,034
4,110
171
524
11
3,052
99
594
299
108
439
8
15,130
11,446
12,787
12,952
133
938
229
465
265
-60
299
277
88
« 134 20 4,043
3,523
881
1,333
779
2,770
"""445
20 4,479 20 6,026
6,911
4,998
Mutualrailitaryprogram^^.
• 159
402
Strategic and critical
Other^''
Subtotal
International affairs and
finance:
Department of State
Export-Import Bank^^
Economic and technical
assistance (Mutual
Securitv Act)^'
Grovernment and relief in
occupied areas^^
Civilian relief in Korea..
0ther22
Subtotal
• 514
4,977
6,562
656
3
847
3
445
TABLES
TABLE 5.--Budget receipts and expenditures by major classifications, f i s c a l y e a r s 1947-1954--Continued
[In millions of dollars]
Classification
1949
1950
1951
1952
1953
1954
1947
EXPENDITURES-Continued
Interest on the public debt2^
Veterans' services and benefits
Other expenditures:
Social security, welfare,
and health2'^
Housing and commxmity de-
1948
4,958
5,211
5,339
5,750
5,613
5,859
6,504
6,382
7,259
6,469
6,878
6,517
5,333
4,952
4,334
4,249
979
1,045
1,165
1,526
1,640
1,672
1,801
1,882
-56
-270
460
665
435
-556
129
Agriculture and agricultural resources^^
Natural resources2''
Transportation and com-
68'
2,658
1,221
2,842
1,399
489
1,376
1,063
1,451
2,961
1,554
2,653
1,389
1,121
1,393
1,486
1,499
1,839
1,841
1,453
299
1,032
287
1,338
399
1,697
714
1,884
188
2,000
52
138
2,064 . 2,333
5,123
Subtotal
782
822
939
Fineince, commerce, and industry25
Other^o
1,226
519
5,463
8,476
9,581
7,652
Total budget expenditures ^ 39,032 ^ 33,069
Budget surplus, or deficit
(-)
754
8,419
^ 39,507 ^ 39,617 ^ 44,058
-1,811
-3,122
3,510
104
2,140-
10,977
9,065
^ 65,408 74,274
67,772
-9,449
-3,117
8,891
-4,017
*Less than $500,000.
•' Revised to exclude from both net budget receipts and budget expenditures the apprppriations of receipts
'
to the railroad retirement accoxmt.
• Breakdown not available prior to fiscal year 1954.
"
2' Beginning January 1951, the distrioution of receipts between individual incorae taxes and old-age insurance taxes is raade in accordance with provisions of Sec. 109 (a) (2) of the Social Security Act Amendments
of 1950,' for appropriation to the Federal old-age and survivors insurance trust fund (see footnote 8 ) .
^ Taxes on employers and employees xmder the Federal Insurance Contributions Act, as amended (26 U. S. C.
1400-1432), and beginning with the taxable year 1951, tax on self-employed individuals under the SelfEmployment Contributions Act (26 U. S. C. 480-482).
' Taxes on carriers and their employees xmder the Carriers Taxing Act, as amended (26 U. S. C. 1500-1503).
^
^ Tax on employers of 8 or more under the Federal Unemployment Tax Act, as amended (26 U. S. C.
1600-1611).
^ Includes so-called voluntary retxu-ns.
" Includes proceeds from Government-ovmed secxurities; seigniorage; and railroad unemployment insurance
^
contributions for administrative expenses through.1953, after which they are carried as trust accoimt receipts xmder the Railroad Retirement Board. For distribution of "Other" see table 7.
^ Amounts appropriated to the Federal old-age and survivors insxirance trust fxmd are equivalent to the
araounts of taxes collected and deposited for old-age insurance (42 U. S. C. 401 (a)). The Social Security
Act Amendments of 1950, approved August 28, 1950 (64 Stat. 477), changed in certain respects the basis of
transferring the appropriated funds to the trust fund. Beginning Jaaiuary 1951, the amounts transferred currently as appropriations to the trust fxmd are based on estimates of old-age insurance tax receipts made by
the Secretary of the Treasury pursuant to the provisions of Sec. 109 (a) (2) of the Araendraents of 1950, and
are adjusted in later transfers on the basis of wage and self-employment income records maintained in the
Social Security Administration.
' Excludes the Governraent's contribution for creditable military service xmder the act of April 8, 1942
(56 Stat. 204). Beginning 1952, amoxmts are appropriated to the railroad retirement account equal to- the
ambunt of taxes under the Railroad Retirement Tax Act deposited in the.Treasxiry, less refunds, during each
fiscal year (65 Stat. 222 and 66 Stat. 371), and transfers are made currently. Previously, annual appropriations were based, in effect, on estimated tax collections, with any necessary adjustments raade in succeeding appropriations,
•• Excludes interest on refxmds which is included xmder "Other expenditures. Other."
"o
•• Expenditxires are "net," after allowance for reimbursements to appropriations, receipts of revolving
''
••
fimd appropriations, and receipts credited to disbursing accoxmts of corporations and agencies having authority to use collections without formal covering into the Treasury. The figxires include transfers to
trust accounts. They exclude net inves-tments of wholly owned Government corporations and agencies in public
debt seciurities beginning 1951 (when these were grouped with similar inves-tments of trust funds and accoxmts), and public debt retirements chargeable to the sinking fund, etc., under special provisions of law.
Payments to the Treasury, principally by wholly owned Government corporations, for retirement of capital
stock and disposition of earnings are excluded from both receipts and expenditures.
^2 Includes retired pay for the military services beginning September 1949.
^^ Certain expenditures on behalf of the Air force made out of appropriations to the Department of the
Army are included under "Array" and not included under "Air Force."
• * Net transactions by the Depar-tments of the Aii Force and the Army relating to "Deposit fund accounts"
^
are included under "Trust accoimt and other transactions" instead of "Budget receipts and expenditures" beginning 1952.
^^ Consists of expenditures frora fxmds appropriated to the President Under the Mutual Security Act, approved October.10, 1951 (22 U . S . C. 1651), and the preceding Economic Cooperation Act; and Greek-Turkish
assistance.
339256 O - 55 - 30
446
1954 REPORT OF THE SECRETARY OF THE TREASURY
° Consists of expenditures of the Atomic Energy Commission.
^"^ Consists of payments under the Armed Forces Leave Act, expenditures for surplus property disposal, sind
in 1947 also national defense expenditures of the Reconstruction Finance Corporation smd certain other
agencies.
^® Excludes Bank expenditures under the Mutual Security Act and the preceding Econoraic Ccxjperation Act of
1948, as amended.
•- Consists of expenditures from funds appropriated to the President under -the Mutual Security Act, and
"^
tho preceding Economic Cooperation Act.
20 Includes transactions relating to -the foreign economic cooperation trust fund.
2^ Beginning wi-th 1953, expenditures for this purpose are not shown separately in monthly reports to the
Treasury; -those made by the Depar-tment of State (the greater peirt, currently) are included under that heading in this table; those made by other agencies (principally the Depar-tment of the Army) are not included
in this table.
22 Consists of expenditures under the Bretton Woods Agreements Act (1947); credit to "the United Kingdom
(1947 and 1948); expenditures of the United Nations Relief and Rehabilitation Administration; relief to
coimtries devastated by war; various other foreign relief programs; international children's emergency funds;
and loan for construct.ion and furnishing of United Nations Headquarters.
2^ Beginning November 1949, interest on the public debt is-reported as an expenditure when such interest
becomes due and payable, as distinguished from the previous practice of showing the expenditure on the basis
of interest paid by the Treasurer of the United States.
2* Consists of expenditures of the Depar'tment of Heal-th, Education, and Welfare except the Office of- Education, and of -the corresponding component organizations prior to the establishment of this department on
i^ril 11, 1953; the Government's contribution under the Railroad Retirement Act for creditable military service and certain other Railroad Retirement Board expenditures through 1953; and also, beginning 1950, the
sclxool lunch program under the Depar'tment of Agriculture.
^^ Consists of expenditures of the Housing and Horae Finance Agency, and of component organizations prior to
the establishment of this agency on July 27, 1947; Federal Civil Defense Administration; and disaster relief.
^* Consists of expenditures of the Department of Agriculture except the Forest Service and the school lunch
program; and of the Farm Credit Aciministration.
^"^ Consists of expenditures of the Department of the Interior; the Tennessee Valley Authority; the Corps of
Engineers in the Department of the Ai-my (river and harbor work and flood control); and the Forest Service
in the Department of Agriculture.
28 Consists of expenditures of the Civil Aeronautics Administration, Civil Aeronautics Board, Maritime activities and predecessor agencies, and Bureau of Public.Roads, all now in the Depar'tment of Commerce; the
Coast Guard in the Treasury Depar'tment; and the Post Office Depar'tment. Figures prior to 1954 include net
expenditures of certain working funds of the Depar'tment in addition ' o the postal service fund (advances
t
' o cover the postal deficit). Beginning with 1954, net expenditures of the Department, including the postt
al service fund, are on the basis of cash receipts and expenditures recorded in the accounts of the Depar'tment.
2^ Consists of expenditures of the Department of Commerce except those included under "Transportation and
commimication"; the Reconstruction Finance Corporation (as in liquidation by the Treasury Depar'tment beginning July 1954); Federal Facilities Corporation beginning July 1954; the Small Business Adininistration; the
Economic Stabilization Agency; and fxmds appropriated to the President for the promotion of defense production.
^0 Includes expenditures for executive departments and other agencies not included elsewhere and for
legislative and judicial functions.
447
TABLES
TABLE 6. - - T r u s t account and other t r a n s a c t i o n s by major c l a s s i f i c a t i o n s , fiscal y e a r s 1946-54
[in millions o f . d o i l a r s . On bas.is of daily Treasury statements through 1952. Beginning with f i s c a l year
1953 on basis of the "Monthly Statenent of Receipts and Expenditures of the United States Government,'
see "Bases of Tables"]
Classification
TRUST ACCOUNTS, E T C . .
RECEIPTS
Federal old-age and survivors insurance trxist fund
'
Railroad retirement account
Unemployment trust fund
National service life insurance
fund
Government life insurance fund....
Federal employees' retirement
funds^
....,
Adjusted service certificate fund.
Other trust funds and accounts2...
1,386
312
1,280
1,623
323
1,289
1,807
797
1,313
1,924
625
1,173
2,367
645
1,281
2,351
103
1,504
134
740
90
690
92
1,076
87
614
1
1,666
578
1
792
594
-6
31,179
(*)
(*)
(*)
(*)
(*)
529
403
545
597
401
Total receipts
680
809
850
3,932
850
1,643
4,516
r 742
1,594
5,080
737
1,492
786
87
3,411
678
1,542
637
79
619
78
912
7,796
3 6,515
961
691
()
*
457
8,929
EXPENDITURES
(Except net investments)
Federal old-age and survivors in-.
surance trust fund*
Railroad retirement accoxmt.......
Unemployment trust fund
National service life insxirance
fxmd
Government life insurance fxmd....
Federal employees' retirement
funds^
Other trust funds and. accounts^ ^.
Deposit fund accoxmts (net)^
358
152
1,146
466
173
559
222
859
661
278
1,314
784
304
2,026
1,569
321
900
2,067
391
1,049
2,750
465
1,010
3,405
502
1,745
280
50
282
67
302
70
348
61
2,988
114
614
77
996
82
588
82
623
147
267
1,574
647
323
1,073
372
244
1,234
367
268
370
96
271
387
-194
300
413
'^-346
363
441'
-529
411
495
-558
Total expenditures
4,474
3,625
Net receipts, or expenditures
(-), of trust accounts, etc
3,238
2,619
Footnotes at end of table.
222
3 526
414
3,824
2,658
6,950
4,952
5,169
6,769
448
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 6. - - T r u s t account and other t r a n s a c t i o n s by major c l a s s i f i c a t i o n s ,
--Continued
fiscal y e a r s 1946-54
[In millions of dollars]
Classification
• 1947
1946
1948
1949
1950
1951
1952
1954'
1953
INVESTMENTS OF GOVERNMENT AGENCIES IN PUBLIC
DEBT SECURITIES (NET)
Federal old-age and survivors i n surance t r u s t fund
;...
Railroad retireraent account
Unemployment t r u s t fund
National service l i f e insurance
fund
Government l i f e insurance fund
Federal employees' retirement
funds-''
Other t r u s t funds-and a c c o u n t s ^ . . .
Government corporations and
1,002
156
102
1,.194
569
446
1,294
346
-160
1,414
338
-724
1,678
357
650
1,950
449
583
1,545
280
590
1,522
202
-248
2,053
47
1,234
60
461
32
353
32
-1,946
-26
94
8
-245
1
59
-2
23
-65
309
-2
282
{*)
363
-6
447
{*)
543
573
9
624
-6
588
9
252
187
Total investraent transactions
(net)
1,194
148
443
281
232
366
-402
3,557
3,636
3,301
2,054
46
28
8
14
-10
-374
-16
88
-7
32
-29
33
74
22
72
25
4
-495
99
147
r 435
328
3,668
3,362
3,060
160
-66
387
-28
16
-123
95
359
-524
-1,103
2,311 •
(*)
•
1
SALES AND REDEMPTIONS OF
OBLIGATIONS OF GOVERNMENT AGENCIES IN MARKET
(NET)
Guaranteed
Not guaranteed
Net sales
Net rederaptions
Net of t r u s t account and
other t r a n s a c t i o n s , excess
of r e c e i p t s , or expenditures (-)
.-
384
107
•
-294
679
Revised.
* Less than $500,000.
^ Consists of civil service and foreign service retirement funds.
2 Includes District of Columbia, Indian tribal funds, island possessions,•increment resulting from reduction in weight of gold dollar, and through 1950, seigniorage on silver. Thereafter any such seigniorage
is included as seigniorage under budget receipts. Beginning with the fiscal year 1954, includes the railroad imemployment insurance adrainistration fund, previously classified as a budget account. (See table 5,
footnote 7 ) .
^ Excludes Foreign Econoraic Cooperation trust fund. (See table 1, footnote 7.)
* Includes reiraburseraent for certain administrative expenses met out of general .fund appropriations, and
beginning Dec. 31, 1952, .for employment tax refunds as provided under Sec. 109(a) (9) of the Social Security Act Amendments of 1950.
^ Includes adjusted service certificate fund. District of Columbia, Indian tribal funds, expenditures
chargeable against increment on gold and beginning in the fiscal year 1950, mutual defense assistance trust
fund. Beginning with the fiscal year 1954, includes the railroad imemployment insurance administration
fund, previously classified as a budget account (see table 5, footnote 7 ) .
^ Excludes net investments in public debt securities beginning 1951. (See footnotes 8 and 9.)
" Includes transactions by the Air Force and the Army beginning•1952.
^
^ Consists of adjusted service certificate fund prior to 1951; beginning with that year includes also
investments of other accounts which for prior years are included in expenditures of "Other trust funds and
accounts".and "Deposit fund accounts (net)."
' Consists of net inve_stments of Government corporations which for prior years are included in expenditures of "Deposit fund accounts (net)" and net .investments of wholly owned Government corporations and
agencies, which for prior years are included in budget expenditures.
449
TABLES
T A B L E 7.--Budgetreceipts and expenditures,actualforthe fiscal year 1954 and estimated for 1955 and 1956
[in millions of dollars. On basis of 1956 Budget document]
1954
actual
I
1955
estimate
1956
estimate
BUDGET RECEIPTS
Individual income taxes:
Withheld
Other
^ 21,635
^ 10,747
21,100
9,600
22,000
10,500
Total individual income taxes.
Corporation income and excess profits taxes:
Under existing legislation
Under proposed legislation
15,984
1,050
21,523
Total corporation income and excess profits taxes under existing and
proposed legislation
Excise taxes:Alcohol taxes:
Under existing legislation:
Distilled spirits (domestic and iraported)
Fermented malt liquors
Rectification tax
Wines (doraestic and imported)
Special taxes in connection v/ith liquor occupations.
Container stamps
All other
1,822
710
23
85
21
2,798
Total alcohol taxes under existing legislation.
Under proposed legislation
1,805
688
24
82
21
1
1
2,669
64
2,622
210
Total alcohol taxes under existing.and proposed legislation.
Tobacco taxes:
Under existing legislation:
Cigarettes (small)
Tobacco (chewing and smoking)
Cigars (large)
Snuff
Cigarette papers and tubes
All other
1,476
:..
()
*
{*)
Total tobacco taxes under existing legislation.
Under proposed legislation
1,443
179
1,590
Total tobacco taxes under existing and proposed legislation.
Documents, o'ther instruments, and playing cards:
Issues of securities, stock and bond transfers, and deeds of
conveyance
,
Playing cards
Silver bullion sales or transfers
()
*
1,541
49
1,622
83
7
()
*
()
*
()
*
Total documents, other instruments, and playing cards.
Manufacturers' excise taxes:
Under existing legislation:
Gasoline
Lubricating oils
Passenger au-tomobiles and motorcycles
,
Automobile trucks, buses, and trailers
Parts and accessories for automobiles
Tires and inner tubes
Electric, gas, and oil appliances
Electric, light bulbs
Radio and television receiving sets, phonographs, phonograph
records, and musical instruments
Mechanical refrigerators, quick-freeze units, and self-contained
air-conditioning units
Business and store machines
Photographic equipment
.
Matches
Sporting goods, including fishing rods, creels, etc
Firearms, shells, and cartridges
'
.
Pistols and revolvers
Fountain and ball point pens; mechanical pencils
Total manufacturers' excise taxes under existing legislation....
Under proposed legislation
Total manufacturers' excise taxes under existing and proposed
legislation
Footnotes at end of table.
836
68
867
150
135
152
97
35-
915
78
880
139
152
190
56
20
102
192
58
22
60
56
16
5
14
2,765
76
2,300
627
450
1954 REPORT OF THE SECRETARY OF THE TREASURY
T A B L E 7.--Budget receipts and expenditures, actual for the fiscal year 1954 and.estimated for 1955 and
1956--Continued
[in millions of dollars. On basis of 1956 Budget document]
1954
actual
1955
estimate
1956
estimate
BUDGET RECEIPTSr-Continued
Retailers' excise taxes:
Jewelry
Furs
Toilet preparations
Lxiggage, handbags, wallets, etc
Total retailers' excise taxes
Miscellaneous excise taxes:
Under existing legislation:
Telephone, telegraph, radio and cable facilities, leased wires,
etc
Local telephone service
,
Transportation of oil by pipeline
Transportation of persons
Transportation of property
Diesel fuel used in highway vehicles
Admissions,, exclusive of cabarets, rcxsf gardens, etc
Cabarets, roof gardens, etc
Wagering taxes, including occupational tax
Club dues and initiation fees
Leases of safe deposit boxes.
Coconut and other vegetable oils, processed...
Sxigar tax
Coin-operated amusement and gaming devices
,
Bowling alleys and billiard and pool tables
,
All other miscellaneous excise taxes
,
Totdl miscellaneous excise taxes under existing legislation.
Under proposed legisla-tion
Total miscellaneous excise taxes under existing and proposed,
legislation
;
Unclassified depositary receipts
Total excise taxes:
Under existing legislation
Proposed legislation
Total excise taxes under existing and proposed legislation.
Employment taxes:
Federal Insvo-ance Contributions Act
Federal Unemployment Tax Act
Railroad Retirement Tax Act
Total employment taxes.
Estate and gift taxes
Cus-toms
:
Intemal revenue not otherwise classified.
Miscellaneous recieipts:
Miscellaneous tsixes
Seigniorage
Coinage
<
Fees for permits and licenses
Fines, penalties, and forfeitures
Gifts and contributions
Interest
Dividends and other esoTiings
Rents
Royalties
Sale of products
Fees smd o'ther charges for services....
Sale of Govemment property
Realization upon loans and inves-tments.
Recoveries and refunds
Total miscellaneous receipts
Total budget receipts under existing and proposed legislation.
Fcxj-tnotes at end of table.
209
39
110.
80
150
27
70
60
156
28
73
62
413
359
30
246
397
19
272
38
10
32.
9
16
74
15
3
190
285
35
190
450
23
. 110
45
11
40
7
• 18
80
15
3
200
290
37
195
470
20
110
46
11
42
1,504
.1
15
3
2
1,547
6
10,014
8,883
190
9,073
8,328
1,022
9,350
^ 4,537
285
603
5,190
290
600
945
562
9
930
570
6,175
295
625
7,095
970
570
3
73
1
45
13
1
458
361
82
59
220
30
221
236
507
3
45
1
47
9
35
1
47
10
1,937
479
(»)
414
250
75
214
251
32
268
254
438.
2,302
68,121
()
*434
225
76
173
272
33
225
273
678
2,486
451
TABLES
TABLE 7.--Budget receipts and expenditures, actual for the fiscal year 1954 and estimated for 1955 and
1956--Continued
[in millions of d o l l a r s . On basis of 1956 Budget document].
1954
actual
1955
estimate
1956
estimate
BUDGET RECEIPTS—Continued
Deduct:
Transfer to Federal old-age and survivors insurance trust fund.
Transfer to railroad retirement account
Refunds of receipts:
Under existing legislation
Under proposed legislation
4,537
603
5,190
600
6,175
625
3,396
-191
59,000
60,000
59.
28
9
5,477
71
31
9
5,070
83
33
9
5,356
1,895
50
534
1,817
97
35
496
10
2,050
48
334
1,885
61
2,000
235
335
1,988
56
.50
7
431
77
4,497
209
1,174
1,667
7,365
1,180
36
24
250
86
4,705
233
969
1,264
6,013
1,223
40,336
708
1,983
571
183
357
2,686
156
34,375
624
2,042
594
185
433
2,741
138
34,000
632
2,055
591
202
• 515
2,541
• . 150
6,382
957
13
6,475
1,257
25
100
6,300
1,091
34
. 325
79,151
75,203
11,379
11,699
Net budget receipts.
BUDGET EXPENDITURES2
Legislative branch
The Judiciary.
Executive-Office of the President
Furids appropriated to the President.
Independent offices:
Atomic- Energy Commission i
Civil Service Coramission
Export-Import Bank of Washirigton
Farm Credit Administratiori
Federal Civil Defense Administration
Railroad Retirement Board
'
.
Reconstruction .Finance Corporation
•Small Business Administration
'
'...
.:.
St. Lawrence Seaway Development'Corporation
Tennessee'Valley Authority.................
United States Information Agency
Veterans' Administration
Other..
General Services Administration. '.
Housing and Home Finance Agency.'
Department of Agriculture
Department of. Commerce
Department of Defense:
•
Military functions
Civil' functions...
'
•Department of Health, Education, and Welfare
Department of. the' Interior
'
.
Department of Juis'tice
.
'
bepartment of Labcir
Post Office Depar'tment
....;..
Depar'tment. of State.
Treasxiry Depar'tment:
Interest on the public debt
.
'
Other.
. District of Columbia (general fund)
Reserve for proposed legislation and contingencies.
Total budget•expenditures.
Deduct:
'''
Applicable receipts^
..Net budget expenditxu-es....
Budget deficit (or surplus '(-)).
409
71
4,316
222
-. 808
1.440
5,963
1,083
67,772
(*)
73,332
10,923
62,408
2,408
*^Less than $500,000.
^ Estimated.
2 Classified by organization units, based on the 1956 Budget document.
•
. ^ Receipts of cer'tain Goyernment corporations, the postal service, and other revolving funds, the receipts of which come primarily from outside the Government.
452
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 8. - - T r u s t account.and other transactions, actual fof the fiscal year 1954'and estimated for
1955 and 1956
[In millions of dollars. On basis of 1956 Budget document]
1955
estimate
1954
actual
Receipts:
Federal employees' retirement fxmds:
Deductions from employees' salaries and other receipts
Interest and profits on investments. ,
•
Transfers from general and special accounts
Federal old-age and survivors insurance trust fund:
Appropriation from general account receipts, etc
Deposits by States
Interest on inves'traents
Interest payment by Railroad Retirement Board
Other
•
.
Railroad retirement account:
Appropriation from general fund receipts
Transfers frora general accoimts
Interest on investraents
Unemployment trust fund:
Deposits by States
Transfers from railroad imemployment insurance administration
fund
Deposits by Railroad Retirement Board
Interest on investraents
Transfers from general accounts
Veterans' life'insurance funds:
Preraiuras and other receipts
Interest on investments
•
Transfers from general and special accounts...
Other trust accounts:
Transfers from general and special accounts
Miscellaneous trust receipts
1956
estimate
434
226
31
44S
234
30
506
222
217
5,190
120
455
10
6,175
130
439
12
(*)
()
*
{*)
603
35
99
600
102
106
1,246
1,200
1,400
220
64
204
87
414
208
31
406
209
81
18
224
426
200
72
22
379
13
444
Total trust account receipts
Expenditures:
Other than investments and sales and redemptions of obligations of
Government agencies:
Federal employees' retireraent funds: Annuities and refunds....
Federal old-age and survivors insurance trust fund: Benefit
payments and administrative expenses
Railroad retirement accoimt: Benefit payments and other expenditxu:<es
Unemployment trust fund: Withdrawals by States and other expend itxures
Veterans' life insurance funds: Insurance losses and refunds..
Other trust accounts: Miscellaneous trust expenditures
Deposit fund accounts (net)
Total
Investments in public debt securities:
Federal employees' retirement funds
Federal old-age and survivors insurance trust fund
Railroad retirement accoxmt..4
Unemployment trust fund
Veterans' life insurance funds
Other trust accounts
Wholly owned Govemment corporations and agencies
Total
Sales and redemptions of obligations of Government agencies in the
raarket (net):
Federal Housing Adrainistration
Federal intermediate credit banks.
Federal National Mortgage Association:
Special assistance and management and liquidating fimctions...
Secondary mortgage operations
c.
0 ther
411
447
489
3,405
4,459
4,968
502
581
590
1,745
769
a ^^5
^.123
1,712
620
599
^ 14
1,594
604
549
51
7,204
8,404
8,845
252
1,523
202
^ 248
77
262
1,963
143
^ 209
31
2
145
239
1,850
138
221
104
2
72
1,609
2,337
2,625
35
' 750
()
*
()
*
,750
^60
()
*
Total
Total expenditvu-es
Net receipts, or expenditures (-)
* Less than $500,000.
Excess of receipts or redemptions (deduct).
Excess of sales (deduct).
8,828
9,987
10,642
327
-183
641
453
TABLES
TABLE 9. --Effect of financial operations on the public debt, actual for the fiscal year 1954 and estimated
for 1955 and 1956
[in millions of d o l l a r s . On basis of 1956 Budget document]
1954
actual
Budget deficit.
Net expenditures (including investments) of trust account andother transactions [ or receipts (—)]
Changes in accoxmts necessary to reconcile ' o Treasury casht
increase or decrease (-)^
Increase in cash balances held outside the Treasury [ or decrease
(-)].
Increase in Treasury general fund balance [or decrease (-) ]
1955
estimate
End of year
Public debt outstanding:
Beginning of year....
Change during year...
End of year.
2,408
3,117
-327
183
-641
46
64
-67
257
2,096
55
-1,766
Increase in public debt
Treasxiry general fxmd balance:
Beginning of year
Change during year
1956
estiraate
3,040
4,670
2,096
6,766
-1,766
6,766
266,071
5,189
271,260
3,040
274,300
1,700
271,260
2 274,300
. 2 276,000
^ Gives effect to changes in amoxmts of outstanding checks, deposits in transit, public debt interest
checks and coupons outstanding, and telegraphic reports from Federal Reserve Banks.
2 Because of wide swings in receipts and expenditures and the hea-vy concentration of taxes in the latter
half of the fiscal year, there will be periods during the year when the public debt will be considerably
greater than this amount.
T A B L E 10. - - I n t e r n a l r e v e n u e c o l l e c t i o n s b-y tax s o u r c e s , f i s c a l y e a r s 1 9 2 9 - 5 4
IJI
[ i n thousands of d o l l a r s . As r e p o r t e d by I n t e r n a l Revenue S e r v i c e , see "Bases of T a b l e s " ]
Income and p r o f i t s
I n d i v i d u a l incoine t a x e s
Fiscal year
Withheld by
employers^ .
1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951..
1952
1953
1954
r
2
2
2
686,015
7,823,435
10,264,219
9,857,589
9,842,282
11,533,577
10,055,502
9,888,976
13,089,770
17,929,047
21,132,275
22,076,329
Other^
1,095,541
1,146,845
833,648
427,191
352,574
419,509
527,113
674,416
1,091,741
1,286,312
1,028,834
982,017
1,417,655
3,262,800
5,943,917
10,437,570
8,770,094
8,846,947
9,501,015
9,464,204
7,996,320
7,264,332
9,907,539
2 11,345,060
2 11,403,942
2 10,736,578
Total
individual
income t a x e s
2
2
2
2
1,095,541
1,146,845
833,648
427,191
352,574
419,509
527,113
674,416
1,091,741
1,286,312
1,028,834
982,017
1,417,655
3,262,800
6,629,932
18,261,005
19,034,313
18,704,536
19,343,297
20,997,781
18,051,822
17,153,308
22,997,308
29,274,107
32,536,217
32,812,907
Employment t a x e s
taxes
Corporation
income and
p r o f i t s taxes^
1,235,733
1,263,414
1,026,393
629,566
394,218
400,146
r 578,678
^ 753,032
r 1,088,101
1,342,718
1,156,281
1,147,592
2,053,469
4,744,083
9,668,956
14,766,796
16,027,213
12,553,602
r 9,676,459
10,174,410
11,553,669
10,854,351
14,387,569
21,466,910
21,594,515
21,546,322
Old-age i n T o t a l income. surance^ euid
and p r o f i t s
unemployment
taxes
taxes
Railroad
retirement
Total
employment
taxes
Capital
stock'^
•5,956
47
2,331,274
2,410,259
1,860,040
1,056,757
746,791
819,656
^ 1,105,791
I 1,427,448
^ 2,179,842
2,629,030
2,185,114
2,129,609
3,471,124
8,006,884
16,298,888
33,027,802
35,061,526
31,258,138
^ 29,019,756
31,172,191
29,605,491
28,007,659
2 37,384,878
2 50,741,017
2 54,130,732
2 54,359,229
Miscellaneous i n t e m a l
revenue t a x e s
2
2
2
2
265,458
593,185
631,002
711,473
787,985
1,014,953
1,287,554
1,473,361
1,494,420
1,416,570
1,644,810
1,821,229
1,913,379
2.096,537
3,047,702
3,843,642
4,089,433
4,503,186
48
48
287
265,745
149,476
742,660
109,427
740,429
122,048
833,521
137,871
925,856
170,409
1,185,362
211,151
1,498,705
265,011
1,738,372
284,758
1,779,177
284,258
1,700,828
379,555
2,024,365
560,113
2,381,342
562,734
2,476,113
548,038
2,644,575
579,778 23,627,480
620,622 2 4,464,264
628,969 24,718,403
605,221 25,108,407
80,168
91,508
94,943
137,499
139,349
127,203
132,739
166,653
281,900
328,795
380,702
371,999
352,121
• 1,597
1,723
6,138
266
Estate
61,897
64,770
48,078
47,422
29,693
103,985
140,441
218,781
281,636
382,175
332,280
330,886
355., 194
340,323
414,531
473,466
596,137
629,601
708,794
822,380
735,781
657,441
638,523
750,591
784,590
863,344
Gift
s
o
4,617
9,153
71,671
160,059
23,912
34,699
28,436
29,185
51,864
92 217
32,965
37,745
46,918
47,232
70,497
76,965
60,757
48, 78591,207
82,556
106,694
71,778
H
X
m
GO
m
o
?o
>
o
H
X
H
tn
>
00
G
Miscellaneovis intemal revenue taxes—Continued
Alcohol taxes
Tobacco taxes
Fiscal year
Distilled
spirits'
1929.
1930
19311932
1933
1934.
1935
1936
1937
1938
1939
1940
1941
1942.
1943
1944
1945
1946
1947
194S
1949...,
1950
1951
1952
1953
1954
,
11,590
10,718
9,579
7,907
6,745
68,468
165,634
222,431
274,049
260,066
283,575
. 317,732
428,642
574,598
781,873
899,437
1,454,306
1,746,580
1,685,369
1,436,233
1,397,954
1,421,900
1,746,834
1,589,730
1,846,727
1,873,630
Fermented
malt liquors'
33,090
163,271
211,215
244,581
277,455
269,345
259,704
264,579
316,741
366,161
455,634
559,152
638,682
650,824
661,418
697,097
686,368
667,411
665,009
727,604
762,983
769,774
Wines
293
239
228
187
290
3,411
6,780
8,968
5,991
5,892
6,395
8,060
11,423
23,986
33,663
34,095
47,391
60,844
57,196
60,962
65,782
72,601
67,254
72,374
80,535
78,678
Other, inclxiding special taxes'
Total alcohol
taxes'
894
738
625
610
3,050
23,762
27,393
29,434
36,750
32,673
38,126
33,882
63,250
.83,772
152,476
126,091
139,437
67,917
70,779
61,035
60,504
57,291
67,711
159,412
90,681
60,929
12,777
11,695
10,432
8,704
43,174
258,911
411,022
505,464
594,245
567,979
587,800
624,253
820,056
. 1,043,517
1,423,646
1,618,775
2,309,866
2,526,165
2,474,762
2,255,327
2,210,607
2,219,202
2,546,808
2,549,120
2,780,925
2,783,012
Cigarettes'
342,034
359,881
358,961
317,565
328,440
350,299
385,477
425,505
476,046
493,454
504,056
533,059
616,757
704,949
835,260
904,046
836,753
1,072,971
1,U5,263
1,208,204
1,232,735
1,242,851
1,293,973
1,474,072
1,586,782
1,513,740
Cigars'
22,872
21,443
18,296
14,434
11,479
11,806
11,837
12,361
13,392
12,882
12,913
12,995
13,514
14,432
23,172
30,259
36,678
41,454
43,354
46,752
45,590
42,170
44,275
44,810
46,326
45,618
Other
69,539
69,015
67,019
66,580
62,821
63,063
61,865
63,299
62,816
61,846
63,190
62,464
67,805
61,551
65,425
54,178
58,714
51,094
44,146
45,325
43,550
43,443
42,143
46,281
21,803
20,871
Total tobacco taxes,'
etc.
434,445
450,339
444,277
398,579
402,739
425,169
459,179
501,166
552,254
563,182
580,159
608,518
693,077
780,982
923,857
988,433
932,145
1,165,519
1,237,768
1,300,280
1,321,875
1,323,464
1,330,396
1,565,162
1,654,911
1,580,229
Stamp
taxes*
64,174
77,729
46,954
32,241
57,338
66,580
43,133
68,990
69,919
46,233
41,033
38,631
39,057
41,702
45,155
50,800
65,528
87,676
79,978
79,466
72,828
84,643
93,107
84,995
90,319
90,000
>
DO
r
rrj
00
Footnotes at end of table.
4^
(Jl
TABLE 10. --Internal revenue collections by tax sources, fiscal years 1929-54--Continued
(Jl
[In thousajids of dollars]
Miscellaneoxis internal revenue taxes—Continued
Manufacturers' excise taxes'''
Fiscal year
Gasoline
1929
1930
1931
1932
1933
1934
1935
1936
1937.
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954..
.. ..
124,929
202,575
161,532
177,340
196,533
203,648
207,019
226,187
343,021
369,587
288,786
271,217
405,563
405,695
433,676
478,638
503,647
526,732
569,048
713,174
890,679
835,610
Lubricating oils
16,233
25,255
27,800
27,103
31,463
31,565
30,497
31,233
38,221
46,432
43,318
52,473
92,865
74,602
82,015
80,887
81,760
77,610
97,238
95,286
73,321
68,441
Passenger
automobiles and
motorcycles
12,574
32,527
38,003
48,201
65,265
43,365
42,723
59,351
81,403
77,172
1,424
1,222
2,558
25,893
204,680
270,958
332,812
452,066
653,363
578,149
785,716
867,482
.Automobile trucks
and busses
1,654
5,048
6,158
7,000
9,031
6,697
6,008
7,866
10,747
18,361
4,230
3,247 .
20,847
37,144 .
62,099
91,963
136,797
123,630
121,285
147,445
210,032
149,914
Parts and
accessories
for automobiles
3,597
5,696
6,456
7,110
10,086
7,989
7,935
10,636
13,084
28,088
20,478
31,551
49,440
68,871
99,932
122,951
120,138
88,733
119,475
164,135
177,924
135,248
Tires and
tubes
14,980
27,630
26,638
32,208
40,819
31,567
34,819
41,555
51,054
64,811
18,345
40,334
75,257
118,092
174,927
159,284
150,899
151,795
198,383
161,328
180,047
152,079
RefrigerElectrical
ators, airenergy
conditioners, etc.
28^563
33,134
32,577
33,575
35,975
38,455
39,859
42,339
47,021
49,978
48,705
51,239
57,004
59,112
63,014
69,701
79,347
8'5,704
93,184
53,094
C)
C)
2,112
5,526
6,664
. 7,939
9,913
8,829
6,958
9,954
13,279
16,246
5,966
2,406
1,637
9,229
37,352
58,473
77,833
64,316
96,319
57,970
87,424
75,059
Radio and
television
Electric,
receiving
sets and gas and oil
appliances
phonographs,
parts
2,207
3,157
3,625
5,075
6,754
5,849
4,834
6,080
6,935
19,144
5,561
3,402
4,753
13,385
63,856
67,267
49,160
42,085
128,187
118,244
159,383
135,535
17,702
6,913
5,027
12,060
29,492
65,608
87,858
80,935
80,406
121,996
89,544
113,390
97,415
All other^
Total
manufacturers' excise taxes
g
XI
H
5,712
5,712
2,665
2,665
138
138
87
87
243,600
36,751
385,291
44,743
342,145
32,692
382,716
37,165
450,581
44,744
417,152
39,188
396,975
16,323
447,152
11,957
617,373
12,609
771,898
64,377
504,746
61,021
503,462
41,344
782,511
60,525
81,156
922,671
138,?36
1,425,395
161,255
1,649,234
1,771,533
158,204
1,836,053
142,978
2,383,677
185,197
^ 170,574 ^ 2,348,943
2,862,788
184,872
171,480
2,688,262
O
H
X
M
GO
m
n
po
>
po
Ki
o
H
X
tn
H
po
tn
>
GO
G
5
Miscellaneous internal revenue taxes—Continued
Retailers' excise taxes
Miscellaneoxis taxes
Fiscal year
Jewelry
1929
1930
1931
1932,.
1933..
1934
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953.
1954
Furs
Toilet
preparations
Luggage,
handbags.
wallets
Total
retailers'
excise taxes
Telephone,
telegraph,
radio and
cable facilities
Local
telephone
service
Transportation of
persons
Transportation of
property
'. ...
.
....
;
41,501
88,366
113,373
184,220
223,342
236,615
217,899
210,688
190,820
210,239
220,339
^ 234,659
209,256
Footnotes at end of table.
19,744
44,223
58,726
79,418
91,706
97,481
79,539
61,946
45,781
57,604
51,436
^ 49,923
39,036
18,922
32,677
44,790
86,615
95,574
95,542
91,852
• 93,969
94,995
106,339
112,892
^ 115,676
110,149
8,343
73,851
81,423
84,588
80,632
82,607
77,532
82,831
90,799
^ 95,750
79,891
80,167
165,266
225,232
424,105
492,046
514,227
469,923
449,211
409,128
457,013
475,466
r 496,009
438,332
14,565
19,251
19,741
21,098
24,570
23,977
24,094
26,368
27 331
48,231
91,174
141,275
208,018
234,393
252,746
275,255
311,380
312,339
354,660
395,434
I 417,940
"
412,508
26,791
. 66,987
90,199
133,569
145,689
164,944
193,521
224,531
247,281
. 290,320
310,337
r 357,933
359,473
21,379
87,132
153,683
234,182
226,750
244,003
246,323
251,389
228,738
237,617
275,174
r 287,408
246,180
82,556
215,488
221,088
220,121
275,701
317,203
337,030
321,193
381,342
388,589
r 419,604
396,519
Admissions
General
adinissions
5,419
3,519
2,271
1,460
14,771
14,019
14,426
15,773
18,185
19,284
18,029
20,265
68,620
107,633
138,054
178,563
300,589
343,191
392,873
385,101
385,844
371,244
346,492
330,816
312,831
271,952
Cabarets
664
712
508
399
750
595
954
1,339
1,555
1,517
1,442
1,623
2,343
7,400
16,397
26,726
56,877
72,077
63,350
53,527
48,857
41,453
42,646
45,489
46,691
38,312
>
r
m
DO
GO
458
1954 REPORT OF THE SECRETARY OF THE TREASURY
T A B L E 10.--Internal revenue collections bytax sources, fiscal years 1929-54^--Continued
[In thousands of dollars]
Miscellaneous internal revenue taxes—Continued
Miscellaneous taxes—Continued
Fiscal year
Club dues
and initiation fees
1929
1930
1931
1932
1933
1934
1935
1936.-.-
1937..:
1938
1939
1940
1941
1942
1943
1944
194.5
1946
1947
1948
1949
1950
1951
1952
1953
1954
11,245
12,521
11,478
9,205
6,679
5,986
5,784
6,091
6,288
6,551
6,217
6,335
6,583
6,792
6,520
9,182
14,160
18,899
23,299
25,499
27,790
28,740
30,120
33,592
36,829
31,978
Sugar
30,569
65,414
68,145
74,835
68,230
53,552
68,789
73,294
56,732
59,152
71,247
76,174
71,188
80,192
78,473
78,130
73,885
All
other' ^0
5,492
5>891
4,053
2,876
55,122
112,052
67,418
44,656
46,964
49,410
46,900
43,171
45,143
131,461
192,460
193,017
188,700
172,249
75,176
88,035
89)799
98,732
79,210
89,568
103,799
106,591
Total miscellaneous
taxes'
22,820
22,642
18,310
13,939
91,886
151,902
108,324
88,957
97,561
131,307
162,096
165,907
224,855
417,916
734,831
1,076,921
1,430,476
1,490,101
1,551,245
1,655,711
1,752,792
1,720,908
1,842,598
1,947,472
2,061,164
1,937,399
Total miscellaneous
intemal
revenue'
607,780
629,887
568,188
500,972
873,048
1,481,160
1,667,422
2,021,075
2,027,608
2,287,075
2,256,031
2,377,322
2,973,128
3,855,623
4,573,793
5,355,586
6,959,684
7,713,131
8,064,265
.8,311,009
8,381,521
8,304,898
9,433,329
9,804,305
10,837,401
10,452,354
Agrlcxiltural
adjustment
taxes'
Grand
total'
2,939,054
3,040,146
2,428,229
1,557,729
1,619,839
2,672,239
371,423
3,299,436
526,222
71,637
3,520,208
4,653,195
5,658,765
5,181,574
5,340,452
7,370,108
13,047,869
22,371,386
40,121,760
43,800,388
40,672,097
39,108,386
41,864,542
40,463,125
38,957,132
50,445)686
65,009,586
69,686,535
^^ 69;919,991
Note.—These figures are from Intemal Revenue Service reports of collections and are not directly comparable to budget receipts from internal revenue as reported in other tables. The differences in amoxmts
occxir because of differences in the time when payments are included in the respective reports. Tax payments
are included in budget receipts when reported as credits to the general fund account of the Treasxirer of the
United States. Throxigh 1954, the payments were included in Internal Revenue Service collection reports after
the retums to which they applied had been received in internal revenue offices.
Under arrangements begxin in 1950, for withheld income tax and old-age insxirance taxes and later extended
to railroad retirement taxes and many excises, these taxes are paid cxirrently into Treasxiry depositaries and
the depositary receipts, as evidence of such payment, are attached to quarterly retums to the Intemal
Revenue Service. Under this procedxire, the payments are included in budget receipts in the month in which
the depositary receipts are issued to taxpayers.
Revised accoxinting procedxires effective July 1, 1954, extended this practice to Internal Revenue Service
collection reports, so that these reports likewise will include depositary receipts in the month in which
they are issued instead of the previous practice of including them in the month in which tax retums svrpported by the receipts were received in collectors' offices. See footnote 11.
Beginning with 1948 the figxires for repealed taxes except those shown separately in this table have been
placed xmder "Miscellsinebxis taxes. All other."
r Revised.
^ For figures for 1863-1915, see 1929 annual report, p. 419; and for 1916-1928, see 1947 annual report,
p. 310.
^ Beginning January 1951, withheld income taxes and old-age insxirance taxes on employees and employers are
paid into the Treasxiry in combined amounts without separation as to type of tax; after December 31, 1950, the
old-age insurance tax on self-en^jloyment income is combined with income tax other than withheld. For purposes of conqparison with earlier years, the estimated conjionents of the combined amounts are shown for 1951
and subsequent years.
• Beginning with 1952, includes the tax on bxisiness income of exempt organizations. Includes income tax
'
on the Alaska railroad, which was repealed effective for taxable years ending after June 10, 1952. Figures
previoxisly shown for 1935, 1936, and 1937 have been revised to include this tax.
* Repealed for years ending after June 30, 1945. Beginning with 1951 included under "Miscellaneoxis tsixes.
All other."
' Figures from 1935 throxigh 1953 have been revised where necessary to include collections for credit to
certain trust accounts for island possessions.
^ Includes stamp taxes on bonds, issues of capital stock, deeds of conveyance, transfers of capital stock
and similar interest sales, playing cards, and silver bullion sales or transfers. For con^jonents shown
beginning in 1895 see 1929 annxial report, p. 421; 1947 annual report, p. 312; and 1952 annxial repott, p.
551. For cxirrent detail see the monthly "Treasxiry Bulletin."
" Includes taxes on sales under the act of Oct. 22, 1914; manvifacturers', consximers', and dealers' excise
^
taxes under war revenue and subsequent acts; and for 1932 and subsequent years, manxifacturers' excise taxes .
under the act of 1932, as amended. Soft drink taxes are included under "Miscellaneous taxes. All other."
^ For 1933 and subsequent years includes (a) Phonograph records for 1942 and subsequent years which were
included with "Radio receiving sets, phonographs, phonograph records" in earlier reports, and (b) musical
instruments for 1942 and subsequent years, jewelry 1933 through 1947, fxirs 1933 throxigh 1947, toilet preparations 1933 throxigh 1947, and luggage 1942 through 1951, all of which were-shown separately in earlier
TABLES
459
reports. The tax on phonograph records for 1933 throxigh 1941 was not reported separately and is included in
"Radio and television receiving sets and phonographs, parts."
' Repealed by Revenue Act of 1951. Collections for the fiscal years 1953 and 1954 are included under "Miscellaneoxis taxes. All other."
^° Includes collections from sources other than the miscellaneous taxes shown, and also (a) certain delinquent taxes collected under repealed laws, except automobile taxes for 1929 and 1930 which are included
xmder "Manufactxirers' excise taxes. All other," and capital stock taxes for 1929 and 1930 which are shown
xmder "Capital stock"; (b) intemal revenue collected through customs offices for 1929-33; subsequently such
collections are included with "Distilled spirits"; (c) various other taxes not shown separately;-and (d)
repealed taxes not shown separately.
^^ The amount of depositary receipts issued by Federal Reserve Banks, and not received by intemal revenue
offices as evidence of tax payments, as of June 30, 1954, totaled $3,943,543,000 of which $3,414,433,000
related to withheld income and Federal Insxirance Contributions Act taxes, $96,539,000 to railroad retirement
taxes, and $432,571,000 to excise taxes. In order to maintain comparability with earlier periods, intemal
revenxie collections for the fiscal year 1954 are shown herein on the basis formerly einployed. No allowance
is made in this table for the difference between these depositary receipts and those outstanding at the
beginning of the year. See the general "Note" to the table.
460
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 1 1 ^ - C u s t o m s collections-'' and refunds, fiscal y e a r s 1953 and 1954
[On basis of accounts of Bxireau of Cxistoms]
1953
1954
Percentage
increase, or
decrease ( )
-
Collections:
Duties:
Mail entries
$457,995,208
135,482,510
3,475,687
1,613,174
2,066,693
263,352
11,816,391
180,270
526,297
'
Informal entries
Withheld duties
Other duties
Total duties
'
$416,457,252
122,401,772
4,700,752
1,412,259
3,520,963
238,595
12,122,792
171,229
995,005
-9 1
-9.7
35.2
-12.5
70.4
-9.4
2.6
-5.0
89.1
613,419,582
562,020,619
-8.4
1,029,977
1,442,415
48,347
148,940
2,956,547
398,216
16,885
11,736
118,005
992,404
4,955
29,329
150,745
2,902,747
425,490
14,795
13,421
55,815
-3.7
-99.7
-39.3
1.2
-1.8
69
.
-12.4
14.4
-52.7
Miscellaneous:
Head tax
Fees
6,171,068
4,589,701
-25.6
619,590,650
566,610,320
-8.6
10,452,670
•6,394,750
101,344
12,821,636
7,567,818
92,517
22.7
18.4
-8.7
16,948,764
Total customs collections
20,481,971
20.8
Refunds:
O-ther
NOTE.—Additional customs s t a t i s t i c s w i l l be foxmd in tables 90 throxigh 104.
•'• Excludes cxistoms duties of Puerto Rico, which are deposited to the c r e d i t of the Government of Puerto
Rico, but includes fines and other minor collections of Puerto Rico.
461
TABLES
TABLE 1 2 . - - P o s t a l receipts and expenditures, fiscal years 1911-54^
Postal reserve fund as reported to the Treasury
by the Post Office Department
Postal expenditxires^
Postal
revenues
Extraordinary
expenditures
as reported
under act of
June 9, 1930
Surplus, or
deficit (-)
Sxirplus
revenue
paid
into
Treasury-*
Grants from
Treasury to
cover postal
deficiencies*
$133,784
1,568,195
1,027,369
1911.
1912.
1913.
1914.
1915.
$237,879', 824
246,744,016
266,619,526
287,934,566
287,248,165
$237,660,705
248,529,539
262,108,875
283,558,103
298,581,474
$219,118
-1,785,523
4,510,651
4,376,463
-11,333,309
1916.
1917.
1918.
1919.
1920.
312,057,689
329,726,116
388,975,962
436,239,126
437,150,212
306,228,453
319,889,904
324,849,188
362,504,274
' 418,722,295
5,829,236
9,836,212
64,126,774
73,734,852
18,427,917
1921.
1922.
1923.
1924.
1925.
463,491,275
464,853,541
532,827,925
572,948,778
599,591,478
' 619,634,948
' 545,662,241
556,893,129
587,412,755
639,336,505
-156,143,673
-60,808,700
-24,065,204
-14,463,976
-39,745,027
1926.
1927.
1928.
1929.
1930.
659,819,801
683,121,989
693,633,921
696,947,578
705,484,098
$39,669,718
679,792,180
714,628,189
725,755,017
782,408,754
764,030,368
-19,972,379
-31,506,201
-32,121,096
-85,461,176
-98,215,987
39,506,490
27,263,191
32,080,202
94,699,744
91,714,451
1931.
1932.
1933.
1934.
1935.
656,463,383
588,171,923
587,631,364
586,733,166
630,795,302
48,047,308
53,304,423
61,691,287
66,623,130
69,537,252
754,482,265
740,418,111
638,314,969
564,143,871
627,066,001
-146,066,190
-205,550,611
-112,374,892
-44,033,835
-65,807,951
145,643,613
202,876,341
117,380,192
52,003,296
63,970,405
1936.
1937.
1938.
1939.
1940.
665,343,356
726,201,110
728,634,051
745,955,075
766,948,627
68,585,283
51,587,336
42,799,687
48,540,273
53,331,172
685,074,398
721,228,506
729,645,920
736,106,665
754,401,694
-88,316,324
-46,614,732
-43,811,556
-38,691,863
-40,784,239
86,038,862
41,896,945
44,258,861
41,237,263
40,870,336
1941.
1942.
1943.
1944.
1945.
812,827,736
859,817,491
966,227,289
1,112,877,174
1,314,240,132
58,837,470
73,916,128
122,343,916
126,639,650
116,198,782
778,108,078
800,040,400
830,191,463
942,345,968
1,028,902,402
-24,117,812
-14,139,037
13,691,909
43,891,556
169,138,948
30,064,048
18,308,869
14,620,875
-28,999,995
649,769
1946.
1947.
1948.
1949.
1950.
1,224,572,173
1,299,141,041
1,410,971,284
1,571,851,202
1,677,436,967
100,246,983
92,198,225
96,222,339
120,118,663
119,960,324
1,253,406,696
1,412,600,531
1,591,583,096
2,029,203,465
2,102,988,758
1951.
1952.
1953.
1954''
1,776,816,354
1,947,316,280
2,091,714,112
2,263,389,229
104,895,553
107,209,837
103,445,741
2,236,503,513
2,559,650,534
2,638,680,670
2,575,386,760
-129,081,506
-205,657,715
-276,834,152
-577,470,926
-545,462,114
-564,582,711
-719,544, .390
-650,412,299
-311,997,531
(«)
$3,800,000
3,500,000
5,500,000
5,200,000
48,630,701
89,906,000
5,213,000
81,494
1,000,000
188,102,579
12,000,000
2,221,095
343,511
6 114,854
130,128,458
^ 64,346,235
32,526,915
12,638,850
23,216,784
160,572,098
241,787,174
310,213,451
524,297,262
592,514,046
624,169,406
740,000,000
660,121,483
521,999,804
^ For figures from 1789 through 1910, see Secretary's annual report for 1946, p.419.
^ Postal expenditxires include adjusted losses, etc.—postal funds and exp.enditures from postal balances,
but are exclusive of departmental expenditures in Washington, D. C , to the close of fiscal year 1922, and
amounts transferred to the civil service retirement and disability fund, fiscal years 1921 to 1926, inclusive. For 1927 and subsequent years salary deductions are included in "Postal exrenditures," the deductions
having been paid to and deposited by disbursing clerks for credit of the retirement fund.
. ^ On basis of warrants issued for 1914 and 1915, and on basis of daily Treasury statements from 1916
through 1953.
'- On basis of warrants issued prior to 1922; on basis of daily Treasxiry state-ients from 1922 through 1953;
and on the basis of the "Combined Statement of Receipts, Expenditures and Balances of the United States
Government" for 1954. Represents advances from the general fund of the Treasxiry to the Postmaster General to
meet deficiencies in the postal revenues. These figxires do not include any allowances for offsets on account
of extraordinary expenditures or the cost of free mailings contributing to the deficiency of postal revenues
certified to the Secretary of the Treasury by the Postmaster General pursuant to the act of Congress approved Jxme 9, 1930. Excludes amounts transferred to the civil service retirement and disability fund under
act of May 22, 1920 (41 Stat. 614), and amendments thereto on account of salary deductions of 2 l/2 percent,
as follows: 1921, $6,519,683.59; 1922, $7,899,006.28; 1923, $8,284,081.00; 1924, $8,679,658.60; 1925,
$10,266,977.00; and 1926, $10,472,289.59. See note 2. Actual advances from general fund are reduced by
repayments from prior year advances.
' Repayment of xmexpended portion of prior years' advances.
. ^ Exclusive of general fxmd payments frora the appropriation "Additional compensation. Postal Service"
under authority of the act approved Nov. 8, 1919, in the amounts of $35,698,400, $1,374,015, and $6,700 for
1920, 1921, and 1922, respectively.
" Transactions for 1954 are reported on the basis of cash receipts and expenditxires recorded in the ac^
counts of the Post Office Department. This basis differs from that used in reports of the Postmaster General, which are on a modified accrxial basis.
^ See letter of Postmaster General in exhibit 78.
339256 O - 55 - 31
T A B L E 13. - - T r e a s u r y c a s h income and outgo, fiscal y e a r s 1947-54
[ I n miUioxis of d o l l a r s . On bsflis of old d a l l y T r e a s u r y s t a t e m e n t s from 1947 through 1952, and on b a s i s of t h e new d a l l y Treasury s t a t e m e n t s and -the new
"Monthly S t a t e n » n t of R e c e i p t s and Expenditxires of t h e United S t a t e s Govemment" for 1953 and 1954]
1948
1947
1949
1950
1951
1953^
1952
1954^
1 . SUMMARY OF CASH TRANSACTIONS
Cash t r a n s a c t i o n s o t h e r t h a n borrowing:
Cnoh dopofllto
••••••
Cash withdrawals
^
43,590
36,924
40,970
43,087
53,439
45,726
68,093
67,786
2 71,345
* 76,407
* 71,815
* 71,974
8,956
-7,333
1,160
-2,621
-2,117
4,163
7,714
-5,874
307
-695
-5,062
2,763
2 -159
2,255
1,624
-1,462
2,047
1,839
-388
-2,299
2,096
60
37
46
25
43
68
56
73
39,786
6,244
41,488
6,515
37,696
5,714
36,495
6,669
47,568
7,796
61,391
8,807
64,825
8,929
64,655
9,155
.46,030
I n c r e a s e , or d e c r e a s e ( - ) , In T r e a s u r e r ' s cash b a l a n c e
Memorandum: Net r e o e i p t s from e x e r c i s e of monetary a u t h o r i t y ^
41,628
40,468
3 -10,930
^iixftfiRf? of depoo'' tf?, O * wl thdrflW*ilR (—)
T
•••>..•••
Net cEish borrowing, or repayn»nt of boirrowing ( - ) . . .
45,399
36,443
6,665
. -19,395
••••
,
48,003
43,410
43,164
55,364
70,198
73,754
73,811
2 . DERIVATION OF CASH DIPOSITS
Receipts:
Budget ( n e t ) '
Trxist aocoxmts
*
,,,
Total
Plxis: Noncash items dedxicted from bxidget r e c e i p t s — e x c e s s
t a x r e fxmd bonds*
•
Total
profits
,
L e s s : Interfxmd t r a n s a c t i o n s :
T r a n s f e r s , budget t o trxist aocoxmts
P a y r o l l d e d u c t i o n s for employees' r e t i r e m e n t
Rfllmbursftrnpnt t o hxidgftt from t r u s t a o r o x i n t a ' ' . . . . . . . . . . . . . . . . . . .
I n t e r e s t payments:
By Treasxiry t o trxist a c c o x m t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
To Treasxiry by Govemment agencies
Other*
Total Interfund transactions
-39
• -10
-1
-1
-1
(*)
(»)
45,991
47,993
43,406
43,162
55,363
70,197
73,754
73,811
1,105
259
16
455
236
14
366
327
24
834
358
17
397
378
21
567
411
26
462
420
66
164
430
76
646
105
272
746
112
1,030
841
33
188
880
73
30
892
87
14S
987
100
13
1,094
144
7
1,188
221
18
2,402
2,594
1,778.
2,192
1,923
2,104
2,194
2,097
68,093
-215
2 71^345 1
AdJxistment for d i f f e r e n c e s i n r e p o r t i n g b a s e s '
Eciuals: Cash d e p o s i t s
.43,590
45,399
41,628
40,970
53,439
101
a 71,815
r
TABLE 13, - - T r e a s u r y cash income and outgo, fiscal years 1947-54--Continued
4^
[ In raillions of dollars ]
1947
1948
1950
1949
1951
1953^
1952
1954 •
'
•
3. DERIVATION OF. CASH WITHDRAWALS
Expenditures: •
Budget^.:
Trust account and other transactions^^
Exchaaige stabilization fund-^^
Total
,
74,274
8,495
-28
67,772
8,828
-109
74,076
82,741
76,491
2,104
-.2,194
2,097
39,032
7,347
1,026
•
Less: Interfxmd transactions (Part 2 )
Noncash and other expenditxires reflected in debt transactions:
Interest o n savings bonds and Treasury bills-'-^
Net•investments in public debt securities:
B y trust funds and accounts '.
By Government agencies-"-^
Net rederaptions of obligations of Government agencies in the
market
Noncash budget expenditures involving issuance of public debt
securities:-'-'^
Armed forces leave bonds
• Adjusted service bonds
Notes issued to international Bank' and Fund.
33,069
6,810
563
39,507
6,209
98
39,617
6,570
-207
44,058
7,117
-13
65,408
8,660
9
47,405
.
'
40,441
45,814
45,980
51,162
2,594
1,778
2,191
1,923
2,402
Xi
H
Tl
H
559
580
574
638
779
719
524
3,363
177
3,060
-69
2,311
319
-405
97
3,369
186
3,355
281
3,068
, 232
1,688
366
359
-107
74
22
-384
72
25
4
1,793
-8
1,366
-1,229
-4
-350
-164
-2
-25
-95
-2
-41
-160
-1
-68
-1
-24
-1
-14
-1
.9,919
Total deductions
469
4,453
4,871
2,342
5,571
6,522
6,214
4,665
401
250
303
-215
101
H
X
m
-274
17
>
s
m
o
x
m
H
>
po
o
Tl
Adjustments for differences in reporting bases:^^ •
Changes in accounts necessary to reconcile to Treasury cash^^...
To exclude adjustments applicable to deposit transactions in
Part 2.
... .
..
To exclude differences in net transactions in secxirities by
Government agencies, adjusted in Part A-:^'^
Transactions not cleared through Treasurer's accoxmt
Other differences
•
.
.......:
Memorandum: Interest payments by Treasury to Government corporations
not wholly owned-*-^
507
-366
-483
214
-7
-52
-108
-68
-79
-170
-155
-562
Net adjustments applicable to withdrawals
Equals: Gash -withdrawals
. • -555
455
-475
-551
135
232
-119
148
36,924
36,443
40,468
43,087
45,726
67,786
2 76,407
2. 71^974
25
24
29
32
31
34
37
42
4. DERIVATION OF CASH BORROWING OR REPAYMENT OF BORROWING
Public debt increase, or decrease (-)
Less:
Interest on savings bonds and Treaisury bills^^
Net investments in public debt securities:
By trxist fxmds and accoxmts
By Governinent agencies^^
Issuance of public debt secxirities involved in expenditures of
other accounts or in refxmds of receipts:
Armed forces leave bonds^*
Adjxisted service bonds^*
Notes to International Bank and Fund-*-^ ^^
Excess profits tax refund bonds^
Total deductions
Plus:
Net sales of obligations of Government agencies in the market:
Guaranteed securities
Nonguaranteed securities
^
Adjxistments for differences in reporting bases for net transactions
in securities by Govemment agencies:-^^
Transactions not cleared throxigh Treasurer's account
Other differences
Equals: Net cash borrowing, or repayment of borrbwing (-)^°
-11,136
-5,994
478
4,587
-2,135
3,883
6,966
469
559
580
574
638
779
719
524
3,362
177
3,060
-69
2,311
319
-405
97
3,369
186
3,355
281
3,068
232
1,688
366
1,793
-8
2,140
-39
-1,229
-4
-913
-10
-164
-160
-1
13
-1
-68
-1
-9
-1
-24
-14
-1
109
-4
-95
-2
166
-1
7,893
1,394
2,916
334
4,044
4,336
4,023
2,673
-387
28
-16
123
-46
-28
-8
-14
10
374
16
-88
7
-32
29
-33
-7
-52
-108
-68
-79
-170
-155
-274
17
-19,395
NOTE.—The cash income and outgo of the Treasury shovnn in this table consist of
cash deposits and withdrawals in the account of the Treasurer of the United States.
This is in line with the new reporting basis of the "Daily Statement of the United
States Treasxiry." Effective February 17, 1954, the daily Treasury statement shows
cleposits and withdrawals affecting " h account of the Treasxirer of the United
te
States. Budget resxilts c i trxist accoimt and other transactions are now reported
Od
once each month in the "Monthly Statement of Receipts and Expenditures of the
United "States Govemment."
Figxires for previoxis fiscal years heretofore published have been revised to the
basis of deposits and withdrawals by eliminating corporation and agency transactions included in " h old daily statement but not cleared throxigh the Treasurer's
te
accoxmt. The cash, borrowing or repayment of borrowing as now shox^ is likewise
based only on transactions cleared through the Treasurer's accoxmt.
In Parts .2, 3, and 4 is given "the reconciliation of the cash transactions with
the budget and other transactions which formerly appeared in the old daily statement £ n now appear in the" new monthly statement. This table follox^s the method
id
xised previoxisly for deriving cash income and outgo from the transactions carried in
"the old daily statement. Some rearrangement has been made in the table setup, principally to combine all receipts and all expenditxires instead of deriving separately
* i cash bxidget and trust accoxmt transactions.
Je
Reporting bases for "the "two statements differ in two respects. Certain corpora-
-7,333
-2,621
4,163
-5,874
-695
•
-
1
28
()
*
2,763
5,189
(*\
\*J
>
r
2,255
tion and agency transactions in securities which are not effected through the accoxmt of the Treasxirer of the United States are included in the monthly stateraent
but excluded from the daily statement. These are eliminated from the monthly statement figxires in arriving at the cash transactions shown in this table. Other differences arise becaxise of the differences in timing, as between checks issued
(monthly statement) and checks paid (daily statement) for expenditures, or between
collections (monthly statement) and clearances (daily statement) for receipts. Thus
an individual transaction near the end of a month may be included during that month
in one statement but not xmtil the following month in the other. These differences
tend to correct themselves over a period of time, but for a given reporting date it
is necessary to include an adjustment figure to cover them.
^^Less than $500,000.
^N.ew reporting basis, see NOTE.
^Differs from figure as originally published in the daily Treasury statement
cause of reclassification of certain interfund transactions.
^In addition to this decrease in the'balance in the Treasurer's accoxmt, the
change stabilization fund x ^ s drawn down by $1,800 million for subscription to
-a
capital of the International Monetary Fxmd.
^Consists of seigniorage on silver and increment resulting from reduction in
weight of the gold dollar. This item is part of the cash budget receipts shovm
beexthe
in
4^
Footnotes for "table 13—Continued
^^Prior to 1951, consists of net investments of corporations not wholly oximed; b e ginning with that year, includes also "those of wholly owned corporaticms and agenthis table, but is excluded from Bureau of the Bxidget figxires for "Receipts from
cies which for prior years are inclxided in budget expenditxires.
the Public."
^^Treated as noncash expenditures at the time of issuance and as cash expenditures
'For description of content, see table 5.
at the time of redeniption; net issuance, or reden^Jtion (-).
^Dedxiction from bxidget receipts of the tax refxmds represented by these bonds is
^^For explanation see NOTE. Excess of expenditxires on monthly statement basis is
treated as a noncash deduction at "the time of issuance of the bonds and as a cash
deducted.
deduction at "the time of redemption of the bonds; net issuance, or redemption (-).
^^As shovm in the "Monthly Staten^nt of Receipts and Expenditures of the United
''By Federal old-age and sxirvivors insurance trust fxmd through October 1948.
States Government"; consists of changes in checks and interest coupons outstanding
Thereafter includes also reimbursements from the District of Colximbia and "the
and telegraphic reports from Federal Reserve Banks, and beginning wi-th the fiscal
Panama Canal Company.
year 1954, also changes in deposits in transit and cash held outside the Treasxiry.
^Includes proceeds of ship sales carried in trxist accoxmts pending allocation to
^^Net investments of Government agencies in pxiblic debt securities and net rebudget receipts from sale of sxirplus prcjperty, transfers be"tween trxist accounts,
denrotions of obligations of Government agencies in the market.
and payment of earnings or repayment of capital stock to "the Treasxiry by coirpora^^Since deposit fxmds (net) are included xmder trxist accoxmt expenditures, "the
tions not wholly owned. Figures for 1947 and 1948 include $53 million and $8 million,
interest received by corporations not wholly owned is carried "there as a negative
respectively, of armed forces leave bonds redeened for insxirance premixims; after
expenditxire. Thxis when budget expenditxires and trust accoxmt expenditures are comAugxist 3 1 , 1947, these bonds were redeemable for cash.
bined, the payment and receipt of "this interest offset each o'ther. Payinent of in"ter^For explanation, see NOTE. Excess of receipts on monthly statement basis is deest to wholly owned Government corporations is offset becaxise it is treated as a
ducted .
negative bxidget expenditure when received by "the corporations.
^°includes net investments of Government agencies in public debt secxirities and
^'Net investinents of Government agencies in public debt securities and net sales
net redemptions in the market of secxirities of G o v e m m e n t agencies (see table 6 ) .
of obligations of G o v e m m e n t agencies in the market.
•••^The United States subscription to "the capital of the International Monetary Fund
^°Inclxides borrowing "through Postal Savings System.
was paid in part from "the exchange stabilization fxmd.
^^Accrued discoxmt on savings bonds and bills less interest paid on savings bonds
and bills redeemed.
m
3
X3
H
O
Tl
GO
n
Xi
>
o
H
Xi
>
GO
a
467
TABLES
PUBLIC DEBT, GUARANTEED OBLIGATIONS, ETC.
OUTSTANDING PUBLIC DEBT, GUARANTEED OBLIGATIONS, ETC.
TABLE
14. --Statutory limitation on the-public debt and guaranteed obligations, June 30, 1954
[ In millions of dollars ]
PART I. --STATUS UNDER LIMITATION, JUNE 30, 1954
Maximxim amoxint of securities which may be outstanding at any one time, under
limitations imposed by Section 21 of the Second Liberty Bond Act, as amended
(31 U. S. C. 757b)i
Amount of securities outstanding subject to such statutory debt limitation:
U. S." Government securities issued under the Second Liberty Bond Act, as amended.
Guaranteed obligations (excluding those held by the Treasxiry)
— .
275,000
270,709
81
270,790
Total amount of securities outstanding subject to statutory debt limitation
4,210
Balance issuable xmder limitation
PART II. --APPLICATION OF LIMITATION TO PUBLIC DEBT AND GUARANTEED
OBLIGATIONS OUTSTANDING JUNE 30. 1954
Subject
to statutory
debt
limitation
Class of security
Not subject
to statutory
debt
limitation
Total
outstanding
Public debtInterest-bearing securities:
Marketable:.
19,515
18,405
31,960
71,706
8,672
19,515
18,405
31,960
71,706
8,672
Certificates of indebtedness
Treasury bonds-bank eligible
96
Total marketable
•...
Nonmarketable:
U. S. savings bonds (current redemption value)
150,258
96
96
150,354
58,061
5,079
411
12,775
58,061
5,079
' 4li
;
12,775
76,326
76,326
•
Special issues to Government agencies and trust funds
\ :
42,229
42,229
268,814
433
Total interest-bearing secxirities
'
96
4
268,910
• • • 437
•
Debt bearing no interest:
50
1
50
1
Special notes of the United States:
1,411
1,411
191
191
254
6
254
6
Deposits for retirement of national bank and Federal
1,463
450
1,913
270,709
Total public debt
551
271,260
Guaranteed obligations (excluding those held by the Treasury):
Matxired
....
80
1
80
1.
81
81
270,790
551
271,341
^ Public Lavr 686, approved Axig. 28, 1954, ten^jorarily increased the limitation by $6 billion during the
period August 28, 1954, through June 30, 1955.
^ Issues which commercial banks may not acqxiire prior to a specified date (with minor exceptions). See
table 49, footnote 5.
468
1954 REPORT OF THE SECRETARY OF THE TREASURY
T A B L E 15. --Debt outstanding subject to statutory debt limitation as of selected dates
Effective date
Amoxint of limit
Debt outstanding
subject to limitation at end of
month immediately
preceding the next
change in the statutory limitation
$65,000,000,000
125,000,000,000
210,000,000,000
260,000,000,000
300,000,000,000
275,000,000,000
281,000,000,000
February 19, 1941.
March 28, 1942
April 11, 1943
June 9, 1944
April 3, 1945
June 26, 1946
August 28, 1954...
$63,594,112,231
118,494,540,437
193,042,177,209
242,749,920,126
282,734,856,863
270,466,408,030
NOTE.—A summary of debt limitations from 1917 through 1940 fixed by Section 21 of the Second Liberty
Bond Act, as amended, appears in the 1940 annual report, p. 70. The annual report for 1941, pp. 28-30, contains, a suraraary of Section 2 of the Public Debt Act of 1941, which consolidated into Section 21 of the
Second Liberty Bond Act, as amended, all authority to issue direct obligations of the United States and increased the limit to more than the combined total of separate limitations in effect previously.
"^ Guaranteed securities held outside the Treasury were not included in the statutory debt limitation
until April 3, 1945.
^ Since Jxme 26, 1946, U. S. sayings bonds have been included in the public debt at their current redemption value. Prior to that time for purposes of the liraitation, they were carried at maturity value.
^ Public Law 686, 83rd Cong., 2nd Sess., authorized that the public debt limit be increased temporarily
until June 30, 1955, by $6,000,000,000.
T A B L E 16. --Public debt and guaranteed obligations outstanding, June 30, 1934-54
June 30
1934
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950.......
1951
1952
1953
1954
Gross public
debt^
Guaranteed obligations held outside the
Treasury^
Interestbearing
$27,053,141,414
$680,767,817
28,700,892,625 4,122,684,692
33,778,543,494 4,718,033,242
36,424,613,732 4,664,594,533
37,164,740,315 4,852,559,151
40,439,532,411 5,450,012,899
42,967,531,038 5,497,556,555
48,961,443,536 6,359,619,105
72,422,445,116 4,548,529,255
136,696,090,330 4,091,686,621
201,003,387,221 1,515,638,626
409,091,367
258,682,187,410
466,671,984
269,422,099,173
83,212,285
258,286,383,109
68,768,043
252,292,246,513
23,862,383
252,770,359,860
17,077,809
257,357,352,351
27,364,069
255,221,976,815
259,105,178,785
44,092,646
266,071,061,639
50,881,686
271,259,599,108
80,415,386
Matured
$10,000
232,500
821,200
31,514,100
10,633,475
19,730,375
8,256,425
107,430,675
24,066,525
9,712,875
6,307,900
4,692,775
3,413,025
2,425,225
1,863,100
1,472,700
1,191,075
1,026,000
Total
$680,767,817
4,122,684,692
4,718,033,242
4,664,604,533
4,852,791,651
5,450,834,099
5,529,070,655
6,370,252,580
4,568,259,630
4,099,943,046
1,623,069,301
433,158,392
476,384,859
89,520,185
73,460,818
27,275,408
19,503,034
29,227,169
45,565,346
52,072,761
81,441,386
Total gross public debt and
guaranteed obligations^
Total
$27,733,909,231
32,823,577,316
38,496,576,735
41,089,218,265
42,017,531,967
45,890,366,510
48,496,601,693
55,331,696,116
76,990,704,746
140,796,033,376
202,626,456,522
259,115,345,802
269,898,484,033
258,375,903,294
252,365,707,331
252,797,635,268
257,376,855,385
255,251,203,984
259,150,744,131
266,123,134,400
271,341,040,495
Per capita^
$219.46
257.95
300.63
318.95
323.65
350.63
367.08
414.85
571.02
1,029.82
1,464.17
1,851.70
1,908.79
1,792.67
1,721.21
1,694.93
^ 1,696.81
1,653.61
^ 1,650.41
^ 1,667.14
1,670.68
NOTE.--Gross public debt on basis of daily Treasury statements. Guaranteed obligations from 1934 through
1939 on basis of Public Debt accoxmts, and for 1940 and subsequent years on basis of daily Treasury stateraents.
Includes certain obligations not subject to statutory limitation. For amounts subject to limitation,
see. table 1.
^ Consists of obligations issued by certain Government corporations and credit agencies, obligations
which are guaranteed by the United States as to both principal and interest. They were first authorized in
1932, but no such obligations were outstanding at the end of the fiscal years 1932 and 1933,
• Based on Bureau of "the Census estimated popxilation for continental United States,
^
469
TABLES
T A B L E 17. --Principalof the public debt, 1790-1954^
[On basis of Public Debt accounts from 1790 through 1919, and on basis of daily
Treasury stateraents from 1920 to date, see "Bases of Tables"•'•]
Total gro=!S
debt
Date
December 311790
1791
1792
1793
1794
1795
1796.
1797
1798
1799
1800
1801
1802
1803
1804
1805
1806
1807
1808
1809
1810
1811
.
•
$75,463,477
77,227,925
80,358,634
78,427,405
80,747,587
83,762,172
82,064,479
79,228,529
78,408,670
82,976,294
83,038,051
80,712,632
77,054,686
86,427,121
82,312,151
75,723,271
69,218,399
65,196,318 .
57,023,192
53,173,218
48,005,588
45,209,738
Date
December 311812
1813
1814
1815
1816
1817
1818
1819
1820
1821
1822
1823
1824
1825
1826
1827
1828
1829
1830,1831,,
1832
Interestbearing^
1853.
1854.
1855.
1856.
1857.
1858.
1859.
1860,
1861.
1862.
1863.
1864.
1865.
1866.
1867,
1868,
1869,
1870,
1871,
1872,
1873,
1874,
1875,
1876
1877
1878,
1879
1880
1881
1882
1883
1884
1885
1886
1887
1888
1889
1890
1891
1892
1893
1894
1895
$59,642,412
42,044,517
35,418,001
31,805,180
28,503,377
44,743,256
58,333,156
64,683,256
90,423,292
365,356,045
707,834,255
360,026,914
217,709,407
322,116,330
238,954,794
191,326,130
151,495,065
035,881,095
920,696,750
,800,794,100
.696,483,950
724,930,750
.708,676,300
,696,685,450
,697,888,500
780,735,650
887,716,110
,709,993,100
625,567,750
449,810,400
324,229,150
,212,563,850
,182,150,950
132,014,100
007,692,350
936,522,500
815;853,990
711,313,110
610,529,120
585,029,330
585,037,100
635,041,890
716,202,060
Footnotes at end of t a b l e .
Matured debt
on which interest has ceased
$162,249
199,248
170,498
168,901
197,998
170,168
165,225
160,575
159,125
230,520
171,970
366,629
2,129,425
4,435,865
1,739,108
1,246,334
5,112,034
3,569,664
1,948,902
7,926,547
51,929,460
3,216,340
11,425,570
3,902,170
16,648,610
5,594,070
37,015,380
7,621,205
6,723,615
16,260,555
7,831,165
19,655,955
4,100,745
9,704,195
6,114,915
2,495,845
1,911,235
1,815,555
1,614,705
2,785,875
2,094,060
1,851,240
1,721,590
Total gross
debt
$55,962,828
81,487,846
99,833,660
127,334.934
123,491,965
103,466,634
95,529,648 |
91,015,566.
89,987,428
93,546,677
90,875,877
90,269,778
83,788,433
81,054,060
73,987,357
67,475,044
58,421,414
48,565,407
39,123,192
24,322,235
7,001,699
Total gross
debt
Date
December 311833
1834
1835
1836
1837
1838,.
1839
1840
1841
1842
June 301843
1844
1845
1846
1847
1848
1849
1850
1851
1852
Debt bearing
no interest
$158,591,390
411,767,456
455,437,271
458,090,180
429,211,734
409,474,321
390,873,992
388,503,491
397,002,510
399,406,489
401,270,191
402,796,935
431,785,640
436,174,779
430,258,158
393,222,793
373,088,595
374,181,153
373,294,567
386,994,363
390,844,689
389,898,603
393,087,639
392,299,474
413,941,255
451,678,029
445,613,311
431,705,286
409,267,919
393,662,736
380,403,636
374,300,606
380,004,687
378,989,47a
..,,,
Total gross
debt
$59 804,661
42 243,765
588,499
974,081
28 701,375
44 ,913,424
58 ,498,381
64 843,831
90 582,417
524 177,955
1,119 773,681
1,815 ,830,814
2,677 ,929,012
2,755 .763,929
2,650 ,168,223
2,583 ,446,456
2,545 ,110,590
2,436 ,453,269
2,322 ,052,141
2,209 ,990,838
2,151 ,210,345
2,159 932,730
2,156 ,276,649
2,130 ,845,778
2,107 ,759,903
2,159 418,315
2,298 912,643
2,090 ,908,872
2,019 285,728
1,856 ,915,644
1,721 958,918
1,625 307,444
1,578 ,551,169
1,555 ,659,550
1,465 ,485,294
1,384 ,631,656
1,249 ,470,511
1,122 ,396,584
1,005 ,806,561
968 ,218,841961 ,431,766
1,016 897,817
1,096 913,120
$4,760,082
37,733
37,513
335,958
3,308,124
10,434,221
3,573,344
5,250,876
13,594,481
20,201,226
32,742,922
23,461,653
15,925,303
15,550,203
38,826,535
47,044,862
63,061,859
63,452,774
68,304,796
66,199,342
Gross debt
per capita*^
$2.32
1.59
1,30
1.13
,99
1.50
1.91
15.79
32,91
52.08
75.01
75.42
70.91
67.61
65.17
61.06
56,72
52.65
50.02
49,05
47,84
46.22
44.71
44.82
46.72
41.60
39.18
35,16
31.83
29,35
27.86
26.85
24,75
22,89
20.23
17.80
15,63
14,74
• 14.36
14,89
15,76
470
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 17. - - P r i n c i p a l of the public debt, 1790-1954^--Continued
Interestbearing^
1896
1897
1898
1899
1900..
1901
1902
1903
1904
1905
1906
1907
1908
1909
1910
1911
1912
1913
1914...
1915
1916
1917
1918
1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
1931
1932
1933
1934
1935
1936
1937
,.
1938
,
1939
,.,,,,....
1940....
,.,....
1941
1942
,..,....,•...
1943.,,,...,
1944,,,,,,,,,,,,,,,,,,
1945.,,,,,,,,,,,,,,,,
1946,.,,,,,,,.,,,,,,,
1947 .»ft.'ftt»tg».fgttt
1948...,,,,,.,,
1949
i'
1950
•
1951..
1952
1953
1954
$847,363,890
847,365,130
847,367,470
1,046,048,750
1,023,478,860
987,141,040
931,070,340
914,541,410
895,157,440
895,158,340
895,159,140
894,834,280
897,503,990
913,317,490
913,317,490
915,353,190
963,776,770
965,706,610
967,953,310
969,759,090
971,562,590
2,712,549,477
11,985,882,436
25,234,496,274
24,062,500,285
23,738,900,085
22,710,338,105
22,007,043,612
20,981,242,042
20,210,906,915
19,383,770,860
18,252,664,666
17,317,694,182
16,638,941,379
15,921,892,350
16,519,588,640
19,161,273,540
. 22,157,643,120
26,480,487,870
27,645,241,089
32,988,790,135.
35,800,109,418
36,575,925,880
39,885,969,732
42'376,495,928
_4i,387,399,539
•7i,.968,418,098
135,380,305,795
199,543,355,301
|56,356,615,818
268,110,872,218
255,113,412,039
250,063,345,379
250,761,636,723
255,209', 353,372
252,851,765,497
256,862,861,128
263,946,017,740
268,909,766,654
Matured debt
on which i n t e r e s t has ceased
$1,636,890
1,346,880
1,262,680
1,218,300
1,176,320
1,415,620
1,280,860
1,205,090
1,970,920
1,370,245
1,128,135
1,086,815
4,130,015
2,883,855
2,124,895
1,879,830
1,760,450
1,659,550
1,552,560
1,507,260
1,473,100
14,232,230
20,242,550
11,109,370
6,745,237
10,688,160
25,250,880
98,738,910
30,278,200
30,258,980
13,359,900
14,718,585
45,335,060
50,749,199
31,716,870
51,819,095
60,079,385
65,911,170
54,266,830
230,662,155
169,363,395
118,529,815
141,362,460
142,283,140
204,591,190
204,999,860
98,299,730
140,500,090
200,851,160
268,667,135
376,406,860
230,913,536
279,751,730
244,757,458
264,770,705
512,046,600
418,692,165
298,420,570
437,184,655
Debt bearing
no interest-'
$373 728,570
378' 081,703
384' 112,913
389' 433,654
238 761,733
233' 015,585
245' 680,157
243' 659,413
239! 130,656
235' 828,510
246' 235,695
25l' 257,098
276' 056,398
232' 114,027
231' 497,584
236' 751,917
228' 301,285
225! 681,585
218! 729,530
219! 997,718
252' 109,878
248! 836,878
237' 503,733
236! 428,775
230! 075,945
227! 862,308
227' 792,723
243! 924,844
239 J292,747
275j 027,993
246 085,555
244' 523,681
24l! 263,959
241! 397,905
231! 700,611
229' 873,756
265! 649,519
315! 118,270
518' 386,714
824! 989,381
620! 389,964
505^ 974,499
447, 451,975
411' 279,539
386' 443,919
369, 044,137
355! 727,288
1,175 284,445
1,259' 180,760
2,056 904,457
934! 820,095
2,942' 057,534
1,949' 146,403
1,763! 965,680
1,883' 228,274
1,858! 164,718
1,823' 625,492
1,826 623,328
,647,799
1,912'
Total gross
debt
$1,222,729,350
1,226,793,713
1,232 743,063
1,436' 700,704
1,263,416,913.
1,221, 572,245
1,178 031,357
1,159' 405,913
1,136^ 259,016
1,132 357,095
1,142* 522,970
1,147,178,193
1,177,690,403
1,148,315,372
1,146 939,969
1,153,984,937
1,193,838,505
1,193,047,745
1,188 235,400
1,191, 264,068
1,225, 145,568
2,975 618,585
12,243,628,719
034,419
25,482,1
321,467
24,299
450,553
23,977'
381,708
22,963'
707,365
22,349'
812,989
21,250,
193,888
20,516
216,315
19,643'
906,932
18,511!
293,201
17,604^
088,484
16,931,i
309,831
16,185,
281,492
16,801
002,444
19,487^ 672,560
22,538,141,414
27,053,892,625
28,700 543,494
33,778' 613,732
36,424! 740,315
37,164' 532,411
40,439' 531,038
42,967,443,536
48,961 445,116
72,422' 090,330
136,696' 387,221
201,003i 187,410
258,682 099,173
269,422' 383,109
258,286' 246,513
252,292' 359,860
252,770' 352,351
257,357,:
976,815
255,221,'
178,785
259,105 061,639
266,071' 599,108
271,259,
Gross debt
per capita"^
$17.25
16.99
16.77
19.21
16.60
15.74
14.88
14.38
13.83
13.51
13.37
13.19
13.28
12.69
12.41
12.29
12.52
12.27
11.99
11.85
12.02
28.77
117.11
242.54
228.23
220.91
208.65
199.64
186.23
177.12
167.32
155.51
146.09
139.04
131.51
135.45
156.10
179.48
214.07
225.55
263.79
282.75
286.27
308.98
325.23
367.09
537.13
999.83
1,452.44
1,848.60
1,905.42
1,792.05
1,720.71
1,694.75
r 1,696.68
1,653.42
r'1,650.12
r 1,666.81
1,670.17
• Revised,
^
^ The outstanding principal of the public debt for the years.1790-1852, except for 1835, is taken from
the annual report of the Secretary for 1909j the 1835 figure is taken from the annual reports of the Secretary for 1834-35, pp. 504 and 629. The detailed figxires for 1790-1852 are not available on a basis comparable to those of subsequent years..Figxu;es for 1853-85 are taken from the "Statement of Receipts and
Expenditures of the Government from 1855 to 1885 and Principal of Public Debt from 1791 to 1885," compiled
from the official records of the Register's office. From 1886-1919 the figures are taken frora the" monthly
debt statements euid revised figures published in the annual reports of the Secretary of the Treasury.
From 1920 to date, the figures are taken from the Statement of the Public Debt published in the daily
Treasury statements. From 1790-1842 the fiscal year ended December 31; and from 1843 to date the fiscal
year ended Jxme 30.
^ Exclusive of the bonds issued to the Pacific railways (provision having, been raade by law to secure the
Treasury against both principal and interest) and the Naxry pension fxmd (which was in no sense a debt, the
principal being the property of the United States).
^ For content as of June 30, 1954, see table 23, Data for earlier years will be found in corresponding
tables in appropriate annual reports.
* Based on Bureau of the Census estimated population for continental United States.
TABLES
471
TABLE 18,--Summary ofpublic debt and guaranteed obligations by security c l a s s e s , June 30, 1954
Class of secxirity
Computed
rate of
interest^
Amount
outstanding on
basis of Public
Debt accoxmts
Net adjustment
to basis of daily
Treasury
statement^
Amount outstanding
on basis of daily
Treasury statement
PUBLIC DEBT
Interest-bearing debt:
Public issues:
Marketable obligations:
Treasury bills (regular series).
Total marketable obligations...
Nonmarketable obligations:
United States savings bonds
Treasury bonds, investment
series
-$83,000.00
. +1,500.00
$19,515,417,000.00
18,404,999,000.00
31,959,868,000.00
80,377,951,450..00
96 262 880 00
150,354,579,830.00
-81,500.00
150,354,498,330.00
5,052,432,800.00
. 57,816,393,565.18
411,215,500.00
-h26,720,600.00
+244,738,458.66
5.079.153.400 00
58,061,132,023.84
411,215,500.00
12,774,995,000 00
,^.843
1.928
1.838
2.440
2.759
$19;515,417,000.00
18,404,999,000.00
31,959,951,000.00
80,377,949,950.00
96,262,880.00
2.043
2.377
2.793
2.000
2.732
12,774,912,000.00
+ 83,000.00
Total nonmarketable obligations
2.751
76,054,953,865.18
+271/542^058.66
76,326,495,923.84
Total public issues
• Special issues:
Adjusted service certificate fund
Canal Zone, Postal Savings System
2 .281
226,409,533,695.18
+271,460,558.66
226,680,994,253.84
4.000
2.000
3.998
4,643,000.00
1,050,000.00
5,838,946,000.00
Farm tenant mortgage insurance
fund
Federal Deposit Insxirance
4,643,000.00
1,050,000.00
5,838,946,000.00
2.000
1,250,000.00
1,250,000.00
2.000
1.537
891,600,000.00
231,600,000.00
891 600 000 00
231,600,000.00
Federal Housing Adrainistration
2.000
. 14,850,000.00
14,850,000.00
2.250
17,054,405,000.00
17,054,405,000.00
2.000
3.959
3.500
84,440,000.00
15,229,400.00
1,234,000,000.00
• 84,440,000.00
15,229,400.00
1,234,000,000.00
3.000
2.000
3.000
2.250
5,272,479,000.00
212,000,000.00
3,345,255,000.00
8,024,000,000.00
5,272,479,000.00
212,000,000.00
3,345,255,000.00
8,024,000,000.00
Federal old-age and survivors
Federal Savings and Loan In- .
Foreign service retirement fxmd..
Government life insxirance fxmd...
National service life insxirance
fund
.....
Railroad retirement account
Veterans special term insurance
fund
3,025,000.00
3,025,000.00
2.671
42,228,772,400.00
42,228,772,400.00
2.342
268,638,306,095.18
+271,460,558.66
671,141,845.26
Total interest-bearing debt
2.000
268,909,766,653.84
Matured debt on which interest has
437,184,655.26
+15,241.59
1,411,000,000.00
501,647,799.36
271,222,080,498.21
Total gross public debt
-233,957,190.00
1,411,000,000.00
501,632,557.77
Debt bearing no interest:
Intemational Monetary Fvmd
37,518,610.25
271,259,599,108.46
GUARANTEED OBLIGATIONS NOT OWNED
BY THE TREASURY.
Intierest-bearing debt:
Fejleral Housing Administration....
Matured debt.on which interest has
1
Total guaranteed obligations not
Owned by the Treasury..
Tcytal gross public debt and
gueiranteed obligations
^
^
^
*
2.547
80,415,386.23
1,025,900.00
80,415,386.23
+100.00
1,026,000.00
81,441,286.23
+100.00
* 81^441,386.23
271,303,521,784.44
+37,518,710.25
271,341,040,494.69
-
Based on daily Treasxiry statement.
Adjustment i s occasioned by items in t r a n s i t on June 30, 1954, not shown in daily Treasxiry statement.
Computed on true discount b a s i s .
For d e t a i l s see table 24.
T A B L E 1 9 . - - P u b l i c d e b t by s e c u r i t y c l a s s e s , J u n e 3 0 , 1 9 4 4 - 1 9 5 4
.[in m i l l i o n s of d o l l a r s . . On b a s i s of d a i l y Treasxiry s t a t e m e n t s , see "Bases of T a b l e s " ]
June 30, June 30,
1944
1945
Interest-bearing:
Public issues:
Marketable issues:
Treasxiry b i l l s
Certificates of indebtedness.
Treasxiry. notes
Treasury bonds:
Bank eligible
•....
Bank restricted^
Panama Canal loan bonds
Conversion bonds of 1946-47..
Postal savings bonds
Total marketable issues.
Nonmarketable issues:
Treasxiry notes—tax series and savings series..
United States savings bonds
Depositary bonds
Armed forces leave bonds
Treasury bonds—investment series
M jxisted serxrice bonds of 1945
'..
T o t a l nonmarketable i s s u e s .
Total public issues.
Special issues:
Adjusted s e r v i c e c e r t i f i c a t e fxmds ( c e r t i f i c a t e s ) . .
Alaska R a i l r o a d r e t i r e m e n t fxmd ( n o t e s )
Canal Zone P o s t a l S a v i n g s . S y s t e m . ( n o t e s )
Canal Zone r e t i r e m e n t fxmd ( n o t e s )
C i v i l s e r v i c e r e t i r e m e n t fxmd ( c e r t i f i c a t e s )
C i v i l s e r v i c e r e t i r e m e n t fxmd ( n o t e s ) ^
Farm t e n a n t mortgage insxirance fund ( n o t e s ) i
F e d e r a l Deposit Insxirance Corporation ( n o t e s )
F e d e r a l home loan bank ( n o t e s )
F e d e r a l o l d - a g e and sxirvivors insxirance trxist fund
(certificates)
F e d e r a l o l d - a g e and surxn.vors insxirance trxist fxmd
(notes)
'
;
June 30,
1946
June 30,
1947
June 30,
1948
June 30,
1949
Jxme 30,
1950
June 30,
1951
June 30,
1952
June 30,
1953
Jxme 30,
1954
14,734
28,822
17,405
17,041
34,136
23,497
17,039
34,804
18,261
15,775
25,296
8,142
13,757
22,588
11,375
11,536
29,427
3,596
13,533
18,418
20,404
13,614
9,509
35,806
17,219
28,423
18,963
19,707
15, 854
30,425
19,515
18,405
31,960
58,083
21,161
50
29
117
69,693
36,756
50
29
117
65,864
53,459
50
13
117
69,686
49,636
50,
62,826
49,636
50
60,789
49,636
50
53,159
49,636
50
42,772
36,061
50
48,200
27,460
50
63,980
17,245
50
71,706
8,672
50
140,401
181,319
189,606
160,346
155,147
147,335
150,354
9,557
34,606
474
10,136
45,586
505
6,711
49,035
427
4,394
53,274
. 316
563
959
4,860
56,260
369
396
954
6,612
57,685
373
4,453
57,886
447
5,079
58,061
411
14,046
13,288
5,560
51,367
325
' 1,793
8,472
57,536
285
297
954
7,818
57,572
319
47
14,526
217
44,855
59,045
185,256
227,747
59,506
62,839
67,544
80,281
78,717
76,073
217,986
222,853
218,198
219,124
223,408
5
(2)
(2)
1
(2)
1,451
1,848
2,155
2,435
'""98
97
120
408
380
1,648
3,401
5,995
3,660
2,509
1,109
4,386
(2)
2,795
1
549
37
3,238
1
666
117
3,801
1
808
119
4,374
1
77
7,709
9,003
10,418
12,096
(2)
5
n
1
50
846
4,739
•1
846
50
2,268
3,571
1
892
232
14,047
15,532
17,054
4,998
1
F e d e r a l Savings
(notes)
Foreign s e r v i c e
Foreign service
Government l i f e
bonds)
Govemment l i f e
and Loan Insurance Corporation
27
7
37
8
49
9
62
10
74
12
95
14
79
17
86
17
79
17
61
13
3
84
6
9
500
r e t i r e m e n t fund ( n o t e s ) .
r e t i r e m e n t fund ( c e r t i f i c a t e s ) . . . .
"insurance fxmd (adjxisted s e r v i c e
500
86
2
682
2
'1,254
1,286
1,318
1*292
'"1*360
1,300
1,299
* 1,234
i n s u r a n c e fund ( c e r t i f i c a t e s )
2
F e d e r a l Hoxising A d m i n i s t r a t i o n :
Hoxising insxirance fxmd ( n o t e s )
Housing investment insxirance fxmd ( n o t e s )
. M i l i t a r y hoxising insxirance fxmd ( n o t e s )
Mutual mortgage insxirance fxmd ( n o t e s )
N a t i o n a l defense hoxising insxirance fund ( n o t e s )
War hoxising i n s u r a n c e fxmd ( n o t e s )
N a t i o n a l s e r v i c e l i f e i n s u r a n c e fxmd ( n o t e s )
(*)
14
2
4
2
16
2
4
5,249
451
3,128
8,287
(*)
10
5
18,812
22,332
27,366
30,211
32,776
32,356
34,653
37,739
40,538
42,229
256,357
268,111
255,113
250,063
250,762
255,209
252,852
256,863
263,946
268,910
201
Debt b e a r i n g no i n t e r e s t :
S p e c i a l n o t e s of t h e United S t a t e s :
I n t e m a t i o n a l Bank f o r R e c o n s t r u c t i o n and Development s e r i e s
I n t e m a t i o n a l Monetary Fund s e r i e s
United S t a t e s savings stamps*
United S t a t e s n o t e s ( l e s s gold r e s e r v e )
D e p o s i t s for r e t i r e m e n t of n a t i o n a l bank and F e d e r a l
Reserve Bank n o t e s
T o t a l g r o s s debt^
5,240
779
657
6,699
269
376
231
280
245
265
512
419
298
437
197
134
191
178
1,028
191
96
58
191
416
1,724
70
19
191
66
1,161
58
9
191
41
1,063
52
5
191
1,270
49
3
191
1,283
48
2
191
1,274
50
191
1,302
50
1
191
1,411
50
1
191
655
6
584
6
517
6
459
6
407
6
365
6
328
6
301
6
277
6
254
6
;
732
6
,
7,288
1,949
1,720
7,340
5,342
1,799
2,058
. 6,616
2
5,191
551
2,863
7,745
•
2
(*)
5,272
212
3,345
8 024
3
1,259
2,057
935
. 2,942
1,949
1,764
1,883
1,858
1,824
1,827
1,913
201,003
258,682
269,422
258,286
252,292
252,770
257,357
255,222
259,105
266,071
271,260
NOTE.—^For information on composition of public debt beginning June 30, 1916, see
1947 annxial report, p. 361.
»Less than $500,000.
^ For explanation, see table 49, footnote 5.
^ See footnote 3.
^ Includes special issues transferred from the Canal Zone retirement fxmd and the
Alaska Railroad retirement fxmd pursuant to the act of July 21, 1949 (5 Stat. 740).
6,935
1,909
1,374
7,500
7
5,436
706
2,414
7,266
(certificates)
Total special issues
T p t a l debt b e a r i n g no i n t e r e s t
3,187
461
501
6,747
199,543
Veterans s p e c i a l term i n s u r a n c e fxmd
1,213
264
319
5,610
. 14,287
R a i l r o a d r e t i r e m e n t accoxmt ( n o t e s )
3
6,474
1,624
806
7,142
Postal savings stamps, obligations of the Postal Savings System, were sold
from May 1, 1941, to Oct. 1, 1942, when they were replaced by United States war
savings stamps. All outstanding stamps then became public debt obligations.
' Includes certain obligations not subject to statutory limitation. For amoxmts
subject to limitation, see table 1.
-J
TABLE 20. --Guaranteed obligations held outside the Treasury., classified by issuing Government corporations and other business-type activities, June 30, 1944-54
-J
[ Face amoxmt, in thousands of dollars ]
4^
June 30,
1944
June 30,
1945
June 30,
1946
June 30,
1947
June 30,
1948
June 30,
1949
561,202
375,161
424,147
45,002
41,703
10,909
1,432
14
.558
8,518
13,043
8,347
9,538
8,370
7,038
7,497
5,938
7,445
5,938
7,480
3,938
7,673
3,440
8,433
1,390
9,180
1,972
754,904
176,000
16,045
27,117
24,775
13,682
**'i,*536
4,532
17,528
34,355
1,515,639
Agency
409,092
June 30, June 30,
1950 •
1951
Jxme 30, June 30,
1953
1952
June 30,
1954
UNMATURED OBLIGATIONS
CO
Coinmodity Credit Corporation (notes, etc.)
Federal Housing Administration:
Mutual mortgage insxirance fxmd (debentures)
Title I housing insurance fund (debentures)
War housing insurance fxmd (debentxires)
Home^ Owners' Loan Corporation (bonds)
Total unmatured obligations
Xi
8,127
1,632
23
41,100
8 501
1,742
31
70,141
o
.......'.
466,672
83,212
68,768
23,862
17,078
'27,364
44,093
50,882
80 415
o
82
7,830
3*714
***2,*425
1,738
1,188
841
636
521
434
383
17
66
64,251
176
8
16,128
19
2
5,988
8
' 2
3,878
3
2
2,953
1
2,224
1,584
1,227
952
757
643
107,431
24,067
9,713
6,308
4,693
3,413
2,425
1,863
1,473
1,191
1,026
H
433,158
476,385
89,520
73,461
27,275
19,503
29,227
45,565
52,073
81,441
m
7
42,913 ,
.
•
Reconstruction Finance Corporation
,
1,623,069
X
tn
H
>
O
X
NOTE.—Figures pn basis of daily Treasury statements. For reconciliation to basis of Public Debt accounts for 1954, see table 18.
^ For obligations held by Treasury and reflected in the public debt, see table 73.
H
X
CO
MATURED OBLIGATIONS
Coramodity Credit Corporation
Federal Farm Mortgage Corporation
Federal Housing Administration:
Public Housing Administration
X
H
T A B L E 21. --Certain contingent liabilities, June 30, 1944-54^
[Face amoxmt, in thousands of dollars. On basis of reports received by the Treasxiry ]
June 30,
1944
June 30,
1945
2,034,137
8,595
6,300
June 30,
1946
June 30,
1947
June 30,
1948
June 30,
1949
June 30,
1950
2,659,575
3,119,656
3,392,773
3,379,130
3,277,402
3,097,316
9,468
4,300
9,612
2,000
9,602
• 9,129
8,943
8,643
2,049,032
2,673,343
3,131,268
3,402,375
3,388,259
3,286,346
3,105,959
18,488,780
22,319,557
23,434,613
23,444,193
23,136,167
22,783,823 22,398,284
June 30,
1951
June 30,
1952
June 30,
1953
2,788,199
2,617,564
2,457,548
2,251,419
7,044
7,005
6,848
6 506
2,795,244
2,624,569
2,464,396
2 257 926
22,975,292
24,135,367
25,040,465
24 726 731
June 30,
1954
ON CREDIT OF THE UNITED STATES
U. S. Postal Savings System (funds
Canal Zone Postal Savings System
(funds due depositors)
Tennessee Valley Authority^ (bonds)..
Total, based on credit of the
United States
OTHER OBLIGATIONS
Federal Reserve notes
^ Does not include contingent liability on gxiaranteed and insxired loans to
veterans which, as of Jxme 30, 1954, amoxmted to $9,618,000,000; also does not include contingent liability on war production and contract termination guaranteed
loans of the Department of the Army which, as of Jxme 30, 1954, amoxmted to
$563,942.58; and contingent liability on loans gxiaranteed by various agencies
throxigh the Federal Reserve Banks pursuant to the Defense Production Act of 1950,
which as of June 30, 1954, amounted to 1534,695,456.85.
^ Bonds held by the Reconstruction Finance Corporation.
T A B L E 22. --Maturity^ distribution of marketable, interest-bearing public debt and guaranteed obligations,
June 30,
1944-54
[in millions of dollars]
Jxme 30,
1944
Within 1 year
1 to 5 years
5 to 10 years
10 to 15 years
15 to 20 years
Over 20 years
Various (Federal Housing Administration debentures)
June 30,
1946
June 30,
1947
51,246
25,061
33,889
9,783
10,246
11,343
60,646
34,801
41,516
11,679
19,281
13,396
62,091
35,057
32,847
16,012
21,227
22,372
52,442
42,522
18,932
13,326
27,076
14,405
24
34
43
June 30,
1948
June 30,
1949
June 30,
1950
June 30,
1951
June 30,
1952
Jxme 30,
1953
June 30,
1954
38
Total.
Due or first becoming callable.
Includes $46,462,880 postal savings bonds.
Includes $49,800,000 Panama Canal bonds.
June 30,
1945
49,870
46,124
10,464
12,407
41,481
52,302
39,175
15,067
13,715
34,888
42,448
51,802
15,926
19,281
25,853
155,160
155,325
70,944
29,434
13,321
20,114
6,594
140,451
76,017
30,162
13,018
26,546
63,291
38,407
27,113
19,937
1,592
160,373
60,860
31,022
16,012
21,226
8,797
1,606
147,386
150,435
4^
TABLE 2 3 . - - D e s c r i p t i o n of public debt i s s u e s outstanding June 30,
1954
[On b a s i s of Public Debt accounts,-^ see "Bases of Tables"]
Title of loan
and rate of interest
AuthorTa.x
izing
status
act
Date of loan
When redeeraable
or payable^
Interest payment
date
Average price
received (per -$100)
Ainount issued
Amount r e t i r e d
Ainount outstanding
INTEREST-BEARING
DEBT
Public issues
X
Marketable:
Treasury bills (maturity value):
Series matxiring and
approximate yield
to maturity {%)i^
July 1, 1954—1.063.
Apr. 1, 1954. July 1, 1954.
July 8, 1954—1.013.
Apr. 8, 1954. July 8, 1954.
July 15, 1954—1.066
Apr. 15, 1954
July 15, 1954
July 22, 1954—1.027
Apr. 22, 1954
July 22, 1954
July 29, 1954—0.886
Apr. 29, 1954
July 29, 1954
Aug. 5, 1954—0.773.
May 6, 1954.. Aug. 5, 1954.
m
s
Aug. 12, 1954—0.824
Sold at a
discount:
> payable at par
May 13, 1954- Aug. 12, 1954
on maturity
Aug. 19, 1954—0.812
May 20, 1954. Aug. 19, 1954
Aug. 26, 1954—0.718
May 27, 1954. Aug. 26, 1954
Sept. 2, 1954—0.713
June 3, 1954 .Sept
Sept. 9, 1954—0.617
June 10, 1954
Sept . 9, 1954
Sept. 16,1954—0.633
June 17, 1954
Sept
Sept. 23,1954—0.634
June 24, 1954
Sept . 23,1954
2, 1954
16,1954
/ Cash
\ Exchange...
I Cash..
.
\ Exchange...
fCash
I Exchange..•
( Cash
I Exchange...
I Cash
I Exchange...
Jcash
1 Exchange...
I Cash
\ Exchange...
( Cash
I Exchange...
f Cash
V Exchange...
i Cash
f
1 Exchange...
} Cash..
Exchange...
840 Cash...;...
Exchange...
(Cash.
\ Exchange..
I
Total Treasury
bills
Certificates of indebtedness:
2 5/85^ Series D-1954.
2 5/8% Series E-1954.
316,349, 000.00
184,323; 000.00
359,692, 000.00
140,261, 000.00
354,998, 000.00
146,276; 000.00
348,976; 000.00
152,476; 000.00
292,026. 000.00
210,506, 000.00
323,374, 000.00
178,834; 000.00
274,134. 000.00
226,715; 000.00
334,770; 000.00
166,657; 000.00
,252,537 000.00
250,245, 000.00
224,659, 000.00
275,843, 000.00
,406,474,,000.00
93,716, 000.00
,320,331, 000.00
180,272 ,000.00
,462,513 ,000.00
1,000.00
38,460,
$1,500, 672,000.00
1,499, 953,000.00
(f)
(f)
Aug. 15, 1954 Aug. 15, 1954
Aug. 15, 1953
Sept. 15,1953 Sept. 15,1954 Sept. 15, 1954
Exchange at par
do
H
X
1,501, 274,000.00
m
1,501, 452,000.00
o
X
1,502; 532,000.00
1,502; 208,000.00
1,500; 849,000.00
1,501; 427,000.00
} 1,502;782,000.00
m
H
>
X
o
H
X
\ 1,500; 502,000.00
I 1,500;190,000.00
\ 1,500; 603,000.00
1,500,973,000.00
19,515,417,000.00
(a)
(a)
o
19,515,417,000.00
2,788,226,000.00
4,724-009,000.00
2,788,226,000.00
4,724,009,000.00
>
GO
c
5
1 5/856 S e r i e s A-1955..
1 1/8^6 S e r i e s B - 1 9 5 5 . .
(a)
(a)
(f)
(f)
Feb. 15, 1954 Feb. 15, 1955
May 17, 1954 May 17, 1955
Feb.. 15, 1955
May 17, 1955
Exchange at par
do...
Treasxiry
1 7/8^
1 l/2$g
1 3/456
2 7/856
1 7/856
1
1
1
1
1
1
1
1/256
1/2^
1/256
1/256
l/2?6
1/2^^
1/256
notes:
Series
Series
Series
Series
Series
B-1954..
A-i955..
B-1955..
A-1957..
A-1959..
(a)
(a)
(a)
(a)
(a)
(f)
(f)
(f)
(f)
(f)
Dec. 1, 1953
Mar. 15, 1950
Dec. 15, 1950
Sept. 15,1953
May 17, 1954
Dec.
Mar.
Dec.
Mar.
Feb.
15,
15,
15,
15,
15,
Series
Series
Series
Series
Series
Series
Series
EA- 1956.
EO-•1956.
EA-•1957.
EO-•1957.
EA-•1958.
EO-•1958.
EA-•1959.
(a)
(a)
(a)
(a)
(a)
(a)
(a)
(f)
(f)
(f)
(f)
(f)
(f)
(f)
Apr.
Oct.
Apr.
Oct.
Apr.
Oct.
Apr.
Apr.
Oct.
Apr.
Oct.
Apr.
Oct.
Apr.
1,
1,
i,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1951
1951
1952
1952
1953
1953
1954
1954
1955
1955
1957
1959
1956
1956
1957
1957
1958
1958
1959
Jxme
Mar.
June
Mar.
Feb.
15,
15,
15,
15,
15,
Dec. 15
Sept. 15
Dec. 15
Sept. 15
Aug. 15
Apr. 1, Oct. 1
.do...
.do...
.do...
.do...
.do...
.do...
Exchange at par
do..
do..
....do..
'Exchange at par
(Par
• •.
.
Exchange at par
do..
...do..
...do..
...do..
...do..
...do..
T o t a l Treasxiry n o t e s .
Treasury bonds:
2$6 of 1951-55.
7,006,787,000.00
3,885,977,000.00
18,404,999,000.00
Total certificates of
indebtedness
7,006,787,000.00
3,885,977,000.00
18 404 999 000 00
8,175,143,000.00
5,365,079,000.00
6,853,793,000.00
2,996,574,000.00
2,897,206,000.00
2,205,071,000.00
j 5,102,277,000.00
1^1,007,043,000.00
" 550,008,000.00
^
'* 531,296,000.00
1 ^ 824,196,000.00
382,796,000.00
121,269,000.00
50,479,000.00
1 31,959,953,000.00
(a)
(f)
256 of 1952-54 (dated
Dec. 1, 1944)
(a)
(f)
2 7/856 of 1955-60.
(a)
(g)
2 \ / 2 % of 1956-58
(a)
m
8 175 143 000 00
5,365,078,000.00
6,853,792,000.00
2,996,574,000.00
5 102 277 000 00
1,007,043,000.00
550,008,000.00
531 296 000 00
824,196,000 00
382 796 000 00
121,269,000.00
50,479,000.00
2,000.00
31,959,951,000.00
532,687,950.00
22,276,500.00
$510,411,450.00
7,922,077,000.00
739,900,500.00
8,661,977,500.00
35,000.00
8,661,942,500.00
2,304,429,200.00
101,971,000.00
106^541, OOO'.OB
98,215,000.00
2,,611,156,200.00
65,'70o!o0
2,611,O9O,5OO^..0O
2,150.00
1^448,745,500.00
>
Dec. 15, 1941 On and after
Dec. 15, 1954; June and Dec.15
on Dec. 15,
1955^
CO
Dec. 1, 1944 On and after
Dec. 15, 1954;
par
....do
on Dec. 15
\ Exchange at par
1954^
[Exchange at par and
Mar. 15, 1935 On and after
1100.50
Mar. 15,1955;
Mar. and Sept.15 f101.59375
on Mar. 15,
tlOl.56250
1960.
UlOO. 78125
June- 2V 1941 ; h and after
0'
Mar. 15, 1956-:
on Mar. 15,
1958.
11,000.00
1,000.00
fPar
\Exchange at par
661,750,800.00
786,996,850.00
1 1,448,747,650.00
r
Footnotes at end of table.
4^
TABLE 23. - - D e s c r i p t i o n of public debt i s s u e s outstanding June 30, 1954--Continued
Title of loan
.and rate -of interest
[Authorizing
Tax
status
Date of loan
When redeemable
or payable^
Interest payment
date
Average price
received (per $100)
00
Amount issued
Amoxmt retired
Amount outstanding
INTEREST-BEARING •
DEBT--Continued
Public i s s u e s - - C o n t i n u e d
CO
Marketable—Continued
Treasury bonds—Continued
2 3/456 of 1956-59
2 1/456 of 1956-59
2 3/8^ of 1 9 5 7 - 5 9 . . . . .
(g)
(f)
(f)
2 3/856 of 1958
(f)
2 3/456 of 1958-63
(g>
2 1/256 of 1958
(f)
2 1/456 of 1959-62
(dated June 1, 1945).
(f)
2 1/456-of 1959-62
(dated Nov. 15, 1945)
(f)
2 3/456 of 1960-65
(g)
Sept. 15, 193d On and after
Sept. 15,
Mar. and Sept. / Par
1956; on Sept I 15 •
\ Exchange at par
15, 1959.
On and after
Feb. 1, 1944
Sept. 15,
Par
[1956; on Sept
Exchange at par
15, 1959^
On and af-ter
Mar. 1, 1952
Mar. 15,
Exchange at par
do...
1957; on Mar
15, 1959
On Jxme 15,
July 1, 1952
Par
Jvme and Dec
1958.
June 15, 1938 On and after
Jxme 15,
Exchange at par
do...
1958; on JxnH
15, 1963
Feb. 15, 1953 On Dec. 15,
Exchange at par
do...
1958.
June 1, 1945
Nov. 15, 1945
Dec. 15, 1938
2 3/456 of 1961
(f)
2 1/256 of 1961
(f)
Feb. 15, 1954
(f)
May 5, 1942
2 1/256 of 1962-67
Nov. 9, 1953
On and after
Jxme 15,
1959; on Jxme[
15, 1962*
On and after
Dec. 15,
1959; on Dec
15, 1962*
On and after
Dec. 15,
1960; on Dec
15; 1965.
On Sept. 15, Sept. and
1961.
Mar. 15
On Nov. 15,
Nov. and May 15
1961..
On and after
June 15,
Jime and Dec. 15
1962; on June
15, 1967*
X
$469,977,250.00
511,870,800.00
981,848,050.00
$22,000.00
$981,826,050.00
3,727,687,000.00
94,871,500.00
3,822,558,500.00
959,000.00
3,821,599,500.00
926,812,000.00
1,000.00
926,811,000.00
4,244,812,500.00
918.,78(ai,>00,vQ0'
X
m
o
918,780,606.00
>
o
a:
.7,390,500.00
5,276,678,000.00
Par
3,469,671,000.00
4,240,000.00
•3,465,431,000.00
Par
Exchange at par
Exchange at $102,375
402,892,800.00
188,196,700.00
894,295,600.00
1,485,385,100.00
Par
2,239,262,000.00
1,485,383,100.00
2,239,262,000.00
ill;177,153,500.00
11,177,153,500.00
2,118,164,500.00
•
2-:, 368,366,000.00-
2,36a,366,000.00t
5,284,068,500.00
Par
O
H
tn
4,244,812,500.00
Par
Exchange at par
3
H
>
00
G
2,131,100.00
2,116,033,400.00
2 1/256 of 1963-68.
(a)
2 1/256 of 1964-69
(dated Apr. 15, 1943)
(a)
2 1/256 of 1964-69
(dated Sept. 15, 1943)
(a)
2 1/256 of 1965-70.
2 1/256 of 1966-71.
(a)
(a)
2 1/256 of 1967-72
(dated June 1, 1945).
(a)
2 \ / 2 % of 1967-72
(dated Oct. 20, 1941)
(a)
2 1/256 of 1967-72
(dated Nov. 15, 1945)
(a)
3 1/456 of 1978-83
(a)
(f)
(f)
(f)
(f)
(f)
(f)
(f)
(f)
(f)
Dec. 1, 1942
On and after
Dec. 15,
1963; on Dec
15, 1968*
Apr. 15, 1943 On and after
June 15,
1964; on June]
15, 1969*
Sept. 15, 1943 On and after
Dec. 15,
[Par...
1964; on Dec
\ Exchange
15, 1969*
On and after
Feb. 1, 1944
Mar. 15,
Par
Mar. and Sept. 15
1965; on Mar
Exchange
15, 1970*
On and after
Dec. 1, 1944
Mar. 15,
f Par
1966; on Mar
\ Exchange
15, 1971*
On and after
June 1, 1945
Jxme 15,
1967; on June June and Dec. 15
15, 1972*
Oct. 20, 1941 On and after
Sept. 15,
r Par
1967; on Septj ,Mar. and Sept. 15 \ Exchange
15, 1972.
On and after
Noy. 15, 1945
Dec. 15,
1967; on Dec. Jime and Dec. 15
15, 1972*
On and after
Jxme 15,
f Par
1978; on June
^ Exchange
15, 1983*
Total other bonds.
Total marketable
obligations
Footnotes at end of table.
4,879,500.00
2,826,034,500.00
3,761,904,000.00
7,863,000.00
3,754,041,000.00
at par.
3,778,754,000.00
59,444,000.00
3,838,198,000.00
7,631,500.00
3,830,566,500.00
at par.
5,120,861,500.00
76,533,000.00
5,197,394,500.00
478,639,000.00
4,718,755,500.00
at par.
3,447,511,500.00
33,353,500.00
3,480,865,000.00
519,696,500.00
2,961,168,500.00
7,967,261,000.00
6,078,897,500.00
1,888,363,500.00
2,527,073,950.00
188,971,200.00
2,716,045,150.00
25,800.00
2,716,019,350.00
at par .
11,688,868,500.00
7,866,277,000.00
3,822,591,500,00
(b)
(h)
June 1, 1911
(c)
(h)
July 1, 1934,
and Jan. 1,
July 1, 1935
On Jxme 1,
Mar.,. June, Sept.
and Dec. 1
1961
Jan. and July 1
1 year from
date of issue; •20 years
from date of
issue.
>
DD
r
m
GO
at par.
1,188,769,175.00
417,314,825.00
1,606,084,000.00
1,000.00
1,606,083,000.00
95,378>985,700.00
Total Treasxiry bonds.
Other bonds:
3 6 Panama: Canal loan
5
of 1961.
2 1/256 Postal savings
bonds (47th to 49th
Series).
2,830,914,000.00
15,001,035,750.00
80,377,949,950.00
50,000,000.00
200,000.00
49,800,000.00
46,462,880.00
46,462,880.00
200,000.00
96,262,880.00
165,355,817,580.00 15,001,237,750.00
150,354,579,830.00
96,462,880.00
TABLE 23. --Description of public debt issues outstanding June 30, 1954--Continued
00
Title of loan
and rate of interest .
AuthorTax
izing
status
act
Date of loan
When reInterest, payinent
deemable
date
or payable^
o
Average price
received (per llOO)
Amount issued
Amoxmt retired
Amount outstanding
INTEREST -BEARING
DEBT--Continued
Public issues--Continued
Nonmarketable:
^
<
Treasury savings notes.
series and approximate
yield if held to maturity
X
m
{%):
A-1954~1.88
(a)
(f)
A-1955—1.88
(a)
(f)
A-1956—1.88
(a)
(f)
B-1955—2.47.
(a)
(f)
•
C-1955-A—2.21
Total Treasury savings
notes
(a)
(f)
15th day of
each mo:
July to Dec.
1951
Redeemable in
payment of
Federal income, estate,
or gift taxes
at any time
after 2
months from
issue date.
Redeemable
for cash at
option of
owner at any
time after 4
months from
issue date:
Payable 3
years from
issue date
Payable 3
1952
years from
issue date
Jan. to Apr. Payable 3
1953
years from
issue date
May. to Sept. Payable 2.
1953
years from
issue date
Sept. and
Payable 2
years from
Oct. 1953
issue date
Interest is payable with principal at time of
redemption. No
interest is payable if note is
inscribed in the
name of a bank
that accepts demand deposits,
unless note is
acquired by such
bank through forfeiture of a loan
Par
$2,255,184,900.00 $2,029,928,900.00
$225,256,000.00
3
X
H
O
•
GO
m
n
X
tn
H
>
o
Par
3,592,411,900.00
3,346,563,500.00
245,848,400.00
....do
Par
325,208,500.00
269,981,500.00
55,227,000.00
H
X
tn
H
X
do
Par
4,671,412,300.00
720,030,300.00
3,951,382,000.00
>
, .do
m
GO
G
Par
679,640,300.00
104,920,900.00
"^74,719 400.00
11,523,857,900.00
6,471,425,100.00
5 052 432 800 00
United States savings
bonds;
series and approximate
yield to maturity {%) :'^
E-1941—2.90^
(a)
(f)
E-1942—2.90^°
(f)
E-1942—2.95^°
(f)-
E-1943—2.95^.
(f)
E-1944—2.95^^
(f)
E-1944—2.90^^
(f)
£-1945—2.90.
(f)
E-1946—2.90.
(f)
E-1947—2.90.
(f)
E-1948—2.90.
E-1949—2.90.
E-1950—2.90.
E-1951—2.90.
E-1952—2.90 (Jan
Apr. 1952)..
(f)
(f)
(f)
(f)
(f)
First day of
each month:
May to Dec.
1941
Jan. to Apr.
1942
May to Dec.
1942
Jan. to Dec.
1943
Jan. to June
1944
July to Dec.
1944
Jan. to Dec.
1945
Jan. to Dec.
1946
Jan. to Dec.
1947
Jan. to Dec.
1948
Jan. to Dec.
1949
Jan. to Dec.
1950
Jan. to Dec.
1951
Jan. to Apr.
1952
After 60 days Sold at a disfrom issue
coxmt; payable at
$75.00.
date, on de- par on maturity
mand at option of ovmer; 10 years
from issue
date, but, at
the option of
ovmer,raaybe
held and will
accrue inter
est for additional 10
years^
1,708,265,374.71
1,131,208,655.41
577,056,719.30
do..
.do.,
75.00
,092,750,703.66
1,333,577, 083.49
759; 173,620.17
..do..
.do.,
75.00
,464,944,928.66
3,728,424, 932.41
1,736. 519,996.25
..do..
.do.,
75.00
,182,119,559.95
8,136,393, 456.08
4,045, 726,103.87
4,714,924, 186.84
2,790; 571,830.50
..do..
.do.,
75.00
,505,496,017.34
..dp..
.do.,
75.00
,627,770,987.03
4,119,467, 052.93
2,508; 303,934.10
..do..
.do.,
75.00
,941,182,817.11
6,558,948,986.40
4,382, 233,830.71
..do..
.do.,
75.00
,797,925,025.68
2,594,817, 899.58
2,203, 107,126.10
.do.,
75.00
,417,438,242.01
2,179,944,459.10
>
OD
r
2,237,493,782.91
2,369,026,907.01
..do..
..do..
.do.,
75.00
,486,784,238.25
2,117,757, 331.24
..do..
.do.,
75.00
,390,341,515.33
2,001,360,607.63
2,388,980,907.70
..do..
.do.,
75.00
,808,760,822.28
1,666,902,424.79
2,141; 858,397.49
..do..
.do..
75.00
,314,040,486.73
1,423,499,204.04
1,890. 541,282.69
1,142,511,588.99
469,667,746.21
tn
GO
672,843,842.78
..do..
75.00,
Footnotes at end of table.
00
TABLE 23. --Description of public debt i s s u e s outstanding June 30, 1954--Continued
Title of loan
and r a t e of i n t e r e s t
Author-
•iaiftgact
4^
00
Tax
status
Date of loan
When r e deemable
or payable^
I n t e r e s t payment
date
Average price
received (per $100)
Ainount issued
Amoxmt r e t i r e d
Amoxmt outstanding
INTEREST-BEARING
DEBT--Continued
Public i s s u e s - - C o n t i n u e d
Nonmarketable—Continued
United States savings
bonds; s e r i e s and approximate yield to mat u r i t y (^): •''—Continued
E-1952—3.00 (May to
Dec. 1952)
s
(a)
(f
E-1953—3.00
(a)
(f
E-1954-3.00....;
(a)
(f)
• May to Dec.
1952
Jan. to Dec.
1953
Jan. to June
1954
After 2
months from
issue date.
on demand at
option of
owner; 9
years 8
months from
issue date.
but, at the
option of
owner, may
be held and
will accrue
i n t e r e s t for
additional
10 y e a r s . '
Sold at a d i s count; payable
at par on maturity
$75.00.i
$1,484,774,614.15
o
*n
H
X
tn
do
do
75.00
3,943,492,025.50
1,091,147,270.35
2,852,344,755.15
do
do
75.00
1,749,389,587.50
150,105,525.00
1,599,284,062.50
86,806,612.30
285,330,784.91
^2 198,524,172.61
81,004,423,228.33
(a)
(f)
July to Dec.
1942
44,563,105,687.56
36,441,317,540.77
441,200,636.77
196,258,434.22
244,942,202.55
After 6
months from
issue date.
on demand at
option of
owner on 1
month's not i c e ; 12
years from
issue date.
o
>
Total Series E
$859,628,081.15
n
Unclassified sales and
redemptions
F-1942—2.53
^2,344,402,695.30
Sold a t a d i s coxmt; payable
a t par on raaturity.
74.00
H
>
a
F-1943—2.53.
(f)
F-1944—2.53.
•(f)
F-1945—2.53.
(f)
F-1946—2.53.
(f)
F-1947—2.53.
(f)
F-1948—2.53.
(f)
F-1949—2.53.
(f)
F-1950—2.53.
(f)
F-1951—2.53.
(f)
F-1952—2.53.
(f)
Jan.
1943
Jan.
1944
Jan.
1945
Jan.
1946
Jan.
1947
Jan.
1948
Jan.
1949
Jan.
1950
Jan.
1951
Jan.
1952
to Dec.
74.00...
869,582 ,692.27
390, 989,918.92
478,592.,773.35
74.00...
913,596 ,819.14
346, 428,091.86
567,168;,727.28
to Dec.
to Dec.
.do.
.do.
74.00...
687,866.,•002,25
617,163,67
• 233,
454,248;,838.58
.do.
.do.
74.00...
369,206,,.153,'91
'IA5., '835,163,39
223,370;,990.52
to Dec.
to Dec.
do......
do
74.00...
.374.,.5'Oa,148,35
132., 679,522,10
241,828;,626.25
do
do
74.00...
SJ3,385,,038.74
102, 324,109.90
431,060, 928.84
to Dec.
to Dec.
do
do
74.00...
251,259.,116.71
67, 846,397.60
183,412, 719.11
do
do..
74.00...
423,678, 882.97
77, 199,305.28
346,479, 577.69
do
do
74.00...
128,048, 012.75
21 895,113.76
106,152, 898.99
do
do
74.00...
41., 771, 209.35
5,701,581.71
36,069, 627.64
to Dec.
to Dec.
to Apr.
Unclassified sales and
rederaptions
19,
Total Series F
••-i
G-1942—2.50
(f)
G-1943—2.50
(f)
G-1944—2.50
(f)
G-1945—2.50
(f)
G-1946—2.50
(f)
G-1947—2.50
(f)
G-1948—2.50
(f)
G-1949—2.50
(f)
G-1950—2.50...
..
G-1951—2.50
0-1952—2.50
(f)
(f)
(f)
July
1942
Jan.
1943
Jan.
1944
Jan.
1945
Jan.
1946
Jan.
1947
Jan.
1948
Jan.
1949
Jan.
1950
Jan.
1951
Jan.
1952
:5r;054-,102,713.21
1,739,864,317.32
2 19,089,514.91
3;, 294,, 238..,:3'95.89
to Dec.
Par.
1,279,129 ,'900:00
•438,602.;
ooa.¥o
8i4O,526.^'9'OiXCO0
do
do
Par.
2,599,385.,600.00
"^906,655,600.'00
llv'69'2v727.;iDt)0.00
r
....do
do
Par.
2,895,825.,500.00
885,064,300.00
2,010,, 761,-200.00
00
do
do
Par.
2,544,238;,900.00
696,317,300.00
1,847,921., 600.00
do......
do
Par.
2,665,694;,200.00
753,095,500.00
1,912,598,700.00
do
do.
Par.
2,248,612,,900.00
581,696,200.00
1,666,916,700.00
Seraiannxially.
to Dec.
to Dec.
to Dec.
to Dec.
to Dec.
to Dec.
do
....do
>
CD
Par.
2,544,696;,400.00
390,858,900.00
2,153,837,500.00
do
do.
Par.
1,433,943; 600.00
262,892, 600.00
1,171,051,000.00
do
do
Par.
1,939,748,,600.00
258,784 800.00
1,680,963,800.00
do
....do
Par.
644,884, 700.00
81,976,600.00
562,908,100.00
do
do
Par.
163,516, 500.00
17,879,000.00
145,637,500.00
59,859,900.00
^2 59,859,900.00
5,333,686,700.00
15,625,990,100.00
to Dec.
to Dec.
to Dec.
to Apr.
Unclassified sales and
redemptions
Total Series G
,514.91
20,959,676,800.00
00
Foo.tnotes at end of table.
TABLE 23. --Description of public debt issues outstanding June 30, 1954--Continued
00
Title of loan
and rate of i n t e r e s t
AuthorTax
izing statxis
act
Date of loan
When r e deemable
or payable^
Interest payn^nt
date
Average price
received (per $100)
Amount issued
Amount r e t i r e d
Amoxmt outstanding
INTEREST-BEARING
DEBT--Continued
Public issues--Continued
Nonmarketable—Continued
United States savings
bonds; series and approxiraate yield to mat u r i t y (56) "--Continued
H-1952—3.00
H-1953—3.00
H-1954—3.00
(a)
(a)
(a)
(f)
(f)
(f)
Jxme to Dec.
1952
Jan. to Dec.
1953
Jan. to June
1954
After 6
Semiannually...
raonths from
issue date,
on demand at
option of
owner on 1
month's no- •
tice; 9
years 8
months from
issue date.
Par
m
n
do
do
Par
470,735,000.00
14,923,500.00
455,811,500.00
do
do
Par
383,805,000.00
118,000.00
383,687,000.00
18,791,500.00
(a)
(f)
(a)
(f)
j_1954—2.76
(a)
(f)
May to Dec.
1952
Jan. to Dec.
1953
Jan. to June
1954
s
X
tn
Sold at a d i s After 6
months from coxmt; payable
at par on matuissue date,
on deinand at r i t y
option of
owner on 1
month's not i c e ; 12
years from
issue date
$72.00
644,000.00
18,147,500.00
1,064,911,500.00
J-1953—2.76
Total Series J
$175,809,000.00
H
X
Total Series H
Unclassified sales and
redemptions
$15,771,000.00
H
O
Unclassified sales
and redemptions
J-1952 2.76
$191,580,000.00
31,456,500.00
1,033,455,000.00
90,599,881.63
7,536,460.37
83,063,421.26
>
o
H
X
tn
G
do
do
72.00
131,970,899.26
3,952,914.00
128,017,985.26
.'...do
do
72,00
155,866,644.00
121,356.00
155,745,288.00
9,919,880.00
893,046.00
9,026,834.00
388,357,304.89
12^503,776.37
375,853,528.52
K-1952—2.76
(a)
(f)
K-1953—2.76
(a)
(f)
K-1954—2.76
May to Dec.
1952
Jan. to Dec.
1953
Jan. to June
1954
17,772,500.00
274,209,000.00
303,019,500.00
7,873,000.00
295,146,500.00
do
Par,
451,520,000.00
132,000.00
451,388,000.00
304,000.00
24,795,500.00
26,081,500.00
1,045,539,000.00
109,523,092,046.43
....do
291,981,500.00
Par
1,071,620,500.00
(f)
Par
do
25,099,500.00
(a)
do
do..
Semiannually....
51,706,698,481.25
57,816,393,565.18
937,085,750.00
525,870,250.00
411,215,500.00
969,960,000.00
56,295,000.00
913,665,000.00
Unclassified sales and
redemptipns
Total Series K..
Total United States
savings bonds..;...
Depositary bonds:
2% First series
Treasury bonds, investment
series:
2 l/2$6 Series A-1965
2 3/456 Series B-1975-i
Total Treasxiry bonds,
investment series...
(a)
(f)
Various dates At option of June and Dec. 1.
from: July
United States
or owner' any
1942
time upon 30
to 60 days'
notice; 12
years from
issue date.
(a)
(f)
Oct. 1, 1947
(a)
(f)
Apr. 1, 1951
On and after Apr. 1, Oct. 1.
Apr. 1, 1948,
"on demand at
option of
owner on 1
month's notice; on Oct.
1, 1965.
Apr. 1, 1975,
do
exchangeable
at any time
at option of
owner for
marketable
Treasury
notes;^ ^^ on
Apr. 1, 1980.
Par,
>
DO
Im
I Par
451,397,500.00
I Exchange at par... 14,879,956,500.00
15,331,354,000.00
3,470,107,000.00
11,861,247,000.00
12,774,912,000.00
16,301,314,000.00
3,526,402,000.00
Total"nonmarketable
obligations
138,285,349,696.43
62,230,395,831.25
76,054,953,865.18
Total public issues.
303,641,167,276.43
77,231,633,581.25
226,409,533,695.18
4^
Footnotes at end of table.
00
TABLE 2 3 . - - D e s c r i p t i o n of public debt i s s u e s outstanding June 30,
4^
l954--Continued
00
Title of loan
and rate of interest
Author
izing
act
Tax
status
Date of loan
(a)
(i)
Jan. 1, 1954
When reInterest payment
deemable
date
or payable'
Average price
received (per $100)
Amoxmt issued
Amovmt retired
Amoxmt outstanding
INTEREST-BEARING
DEBT--Continued
Special i s s u e s
Adjusted service c e r t i f i c.ite fund ( c e r t i f i c a t e s ) :
i.% Serier. 1955
Canal Zone Postal Savings
System (notes):
256 Series 1956.
256 Series 1957.
Civil service retirement
fund (certificates):
456 Series 1955
356 Series 1955
Civil service retirement
fxmd (notes):
456 Series 1955
4 6 Series 1956
5.
456 Series 1957
3 6 Series 1955
5
356 Series 1956
356 Series 1957
'..
Farm tenant mortgage insurance fund (notes):
256 Series 1955.
256 Series 1957.
Vtirious
dates from:
(a)
(a)
(i)
(i)
Jan. 28,
1952
June 30,
1952
On demand;
on Jan. 1,
1955.
Redeemable
after 1 year
from date of
issue and
payable on
June 30:
1956
1957
$4,693,000.00
$50,000.00
$4,643,000.00
o
•n
H
X
tn
OQ
June 30, Dec. 31
do
Par.
550,000.00
550,000.00
Par.
500,000.00
xn
O
500,000.00
>
(a)
(i)
(a)
(i)
(a)
(a)
(a)
(a)
(a)
(a)
(i)
(i)
(i)
(i)
(i)
(i)
(a)
(a)
(i)
(i)
On demand;
June 30, 1954
on June 30,
1955.
June 30, 1954
do
Varioxis dates Redeemable
from June 30 after 1 year
from date of
issue and
payable on
June 30:
1955
1950
1956
1951
1952
1957
1950
1955
1951
1956
1952
1957
Redeemable
after 1 year
from date of
issue and
payable on
Dec. 31:
Nov. 26, 1951
1955
Dec. 31, 1952
1957
Par.
1,000.00
2,264,179,000.00
Par.
',000.00
4,117,000.00
H
X
tn
2
.do.
.do,
.do,
.do,
.do.
June 30, Dec. 31
do
Par,
Par.
Par.
Par.
Par.
Par.
107,076;,000.00
101,839 ,000.00
351,859,,000.00
3,006,,000.00
3,408, 000.00
3,462, 000.00
1,107,076,000.00
1,101,839,000.00
1,351,859,000.00
3,006,000.00
3,408,000.00
3,462,000.00
Par.
Par.
250, 000.00
1,000, 000.00
250,000.00
1,000,000.00
G
Federal Deposit Insurance
Corporation (notes):
Various
dates from:
256 Series 1954
(a)
Ci)
256 Series 1955
(a)
(i)
256 Series 1956
256 Series 1957
(a)
,
256 Series 1958
(i)
(a)
(i)
(a)
(i)
Federal home loan banks
(notes);
256 Series 1957
(a)
(i)
256 Series 1958
(a)
(i)
1 1/255 Series 1958
1 1/456 Series 1958
Federal old-age and sxirx/ivors insurance t r u s t fund
(certificates):
2 1/456 Series 1955
(a)
(a)
(a)
(i)
(i)
(i)
Federal Savings and Loan
Insurance Corporation
(notes):
(a)
(a)
(i)
(i)
256 Series 1957.
256 Series 1958.
256 Series 1959.
(a)
(a)
(i)
(i)
(a)
(i)
July
1952
June
1953
Oct.
1953
Jan.
1954
1954
3,000,000.00
139,000,000.00
428. 500,000.00
8,500,000.00
420,000,000.00
1957
Par
149; 000,000.00
45,700,000.00
103,300,000.00
Par
146 900,000.00
600,000.00
146,300,000.00
7,100,000.00
142 ,000,000.00
Par
83 000,000.00
do
1958
Redeemable
after 1 year
from date of
issue and
payable on
June 30:
Par
do
Par
do
do
Jxme 1, Dec. 1
83,000,000.00
11,
Par
17 ,200,000.00
do
Par
39 900,000.00
1958
do
Par
124; 800,000.00
9,100,000.00
115,700,000.00
1958
do
Par,
68. 900,000.00
3,000,000.00
65,900,000.00
1957
June 30, Dec. 31
10,100,000.00
30,
1958
39,900,000.00
7,
19,
June 30, 1954 On demand;
on Jxme 30,
1955
Par
June 30, Dec. 31
do
Par.
Par.
17,450,000.00
2,000,000.00
Par,
Par.
Par,
9,000,000.00
41,840,000.00
16,350,000.00
GO
17,054,405,000.00
17,054,405,000.00
June 30, Dec. 31
>
03
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m
Various
dates from:
256 Series 1955.
256 Series 1956.
Footnotes at end of table.
Dec. 2,
1949
Dec. 1,
1950
Dec. 1,
1951
Dec. 1,
1952
Dec. 1,
1953
Varioxis
dates from:
Redeemable
after 1 year
from date of
issue and
payable on
Dec. 1:
Redeemable
after 1 year
from date of
issue and
payable on
June 30:
1955
June 30, 1950
1956
June 26, 1952
Various
dates from:
Sept. 3, 1952
1957
June 30, 1953
1958
June 30, 1954
1959
.do.....
.do
.do
2,200,000.00
15,250,000.00
2,000,000.00
9,000,000.00
41,840,000.00
16,350,000.00
4^
00
T A B L E 2 3 . - - D e s c r i p t i o n of p u b l i c debt i s s u e s o u t s t a n d i n g J u n e 30,
Title of loan
and rate of interest
izing
act
Tax
Date of loan
status
When redeemable
or payable^
1954--Continued
4^
00
00
Interest payinent
date
Average price
received (per $100)
Ainount issued
Amount retired
Amoxmt outstanding
INTEREST-BEARING
DEBT--Continued
Special issues--Continued
Foreign service retirement
fund (certificates):
456 S e r i e s 1955.
3% Series 1955.
(i)
(i)
(i)
(i)
(i)
(i)
On demand;
on Jxme 30,
1955
June 30, 1954 On deinand;
on June 30,
1955
Various d a t e s Redeemable
from: June 30, a f t e r 1 year
from d a t e of
i s s u e and
payable on
Jxme 30:
1950
1955
1951
1956
1952
1957
1950
1955
1951
1956
1952
1957
(i)
June 30, 1954
(a)
(i)
(a)
(i)
Foreign service retirement
fund (notes):
4 6 Series 1955
5
4 6 Series 1956
5
A Series 1957
%
3% Series 1955
3% Series 1956
'
3 6 Series 1957
5
Government life insxirance
fund (certificates):
3 l/2$6 Series 1955
(a)
Title I Housing insurance
fxmd (notes):
2% Series 1958
Mutual mortgage insxirance
fund (notes):
2% Series 1958
National defense housing
insxirance fund (notes):
2% Series 1958
$6,052,000.00
(a)
(i)
(a)
(i)
Mar. 1, 1954
Various d a t e s
from:
Mar. 19, 1954
(a)
(i)
Feb. 1 1 , 1954
On demand; •
on Jxme 30,
1955
Redeemable
a f t e r 1 year
from date of
i s s u e and
payable June
30:
1958
$6,052,000.00
. 246,000.00
June 30, 1954
246,000.00
s
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..do.,
..do.,
..do.,
..do..
..do..
..do..
....do
Par,
Par,
Par,
Par.
Par.
Par,
2,739,000.00
2,436,000.00
3,377,800.00
125,000.00
101,000.00
152,600.00
2,739,000.00
2,436,000.00
3,377,800.00
125,000.00
101,000.00
152,600.00
Par,
1,234,000,000.00
1,234,000,000.00
>
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June 30, Dec. 31
450,000.00
450,000.00
9,800,000.00
9,800,000.00
6,400,000.00
$1,800,000.00
4,600,000.00
National service life insurance fund (notes):
3% Series 1955
3% Series 1956
3% Series 1957
3% Series 1958
. 3% Series 1959....
Postal Savings System
(notes):
2% Series 1955
2% Series 1957
Railroad retirement accoxmt
{notes):
3% Series 1955
356 S e r i e s 1956
3% Series 1957
3% Series 1958
3% Series 1959
Unemployment trust fxmd
(certificates):
2 1/456 Series 1955
Veterans special term insurance fund (certificates):
2% Series 1955
Various dates
from: June 30
1950
1951
1952
1953
June 30, 1954
1955
1956
1957
1958
1959
Jxme 30.
do..
do..
do..
do..
Par
Par
Par
Par
Par
292,459,000.00
792,000,000.00
375,485,000.00
1,202,535,000.00
2,610)000,000.00
1955
1957
June 30,
do..
Par
Par
124,000,000.00
341,000,000.00
(i)
(i)
(i)
(i)
(i)
June 30, 1950
June 30, 1952
Various dates
from Jxme 30:
1950
1951
1952
1953
June 30, 1954
1955
1956
1957
1958
1959
June 30.
do..
do..
do..
..;.do..
Par
Par
Par
Par
Par
. 613,590,000.00
643,729,000.00
1,028,046,000.00
873,073,000.00
186,817,000.00
613,590,000.00
643,729,000.00
1,028,046,000.00
873,073,000.00
186,817,000,00
(a)
(i)
June 30, 1954
On demand;
on June 30,
1955
June 30, Dec. 31
Par
8,024,000,000.00
8,024,000,000.00
(a)
(i)
June 30, 1954
On demand;
on June 30,
1955
3,025,000.00
3,025,000.00
(a)
(a)
(a)
(a)
(a)
(i)
(i)
(i)
(i)
(i)
(a)(a)
(i)
(i)
(a)
(a)
(a)
(a)
(a)
292,459,000.00
792,000,000.00
375,485,000.00
1,202,535,000.00
2,610,000,000.00
253,000,000.00
124,000,000.00
88,000,000.00
>
CO
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Total special issues.
42,562,822,400.00
334,050,000.00
42,228,772,400.00
Total interest-bearing
debt butstanding.....
346,203,989,676.43
77,565,683,581.25
268,638,306,095.18
Footnotes at end of table.
4^
00
TABLE 23..--Description of public debt issues outstanding June 30, 1954--Continued
Title of loan and rate of interest
AuthorTax
izing , status
act
Date of
loan
When redeemable
or payable^
Interest payment
date
4^
Average price
received (per $100) Amoxmt outstanding
O
MATURED DEBT ON WHICH INTEREST HAS CEASED
Old debt matured-issued prior to April 1 1917. • •
**
2 1/256 Postal savings bonds
First Liberty bonds, at various interest rates
Other Liberty bonds and Victory notes, at varioxis interest
rates
Adjusted service bonds of 1945
Treasxiry savings notes
^
Treasxiry notes tax series
Certificates of indebtedness, at various interest rates
Treasurv b i l l s
Total matured debt on which interest has ceased
(d)
(c)
(d)
$1,376,530.26
1,648,040.00
1,329,300.00
(d)
(a)
(a)
(a)
(a)
(a)
(a)
(a)
(a)
(a)
(a)
5,942,300.00
159,549,350.00
4,074,550.00
15,471,000.00
19,578,100.00
577,725.00
17,701,950.00
24,605,000.00
90,225.00
380,246,975.00
38 950 800.00
*.::*.:'.;'.:*.'.'.*.:'.*..:
671,141,845.26
s
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Amoxmt issued
Title of loan
Amount outstanding
D E B T BEARING N O INTEREST
Special notes of the United States (issued pursuant to the provisions of the Bretton Woods Agreements Act, approved July 31,
1945, and xmder the authority of and subject to the provisions of the Second Liberty Bond Act, as amended. The notes are nonnegotiable, bear no interest, and are payable on demand):
International Monetary Fund series
United States savings stanips (Public Debt Act of 1942)
Excess profits.tax. refxmd bonds (issued under the authority of and subject to the provisions of the Second Liberty Bond Act, as
amended, and .Sections 780 to 783, inclusive, of the Internal Revenue Code, as amended. Issued in series depending upon the tax
years for which credits are available and in amounts certified to the Secretary of the Treasury by the Coramissioner of Internal
Revenue. Bear no interest and mature at yearly intervals after the cessation of hostilities, as provided by Section 780 (E) of
the Internal Revenue Code, as amended, and are redeemable at the option of the owner on or after January 1, 1946):
First Series
Second Series
Total
Old demand notes (acts of July 17, 1861 (12 Stat. 259); Aug. 5, 1861 (12 Stat. 313); Feb. 12, 1862 (12 Stat. 338). (Greatest
amoxmt ever authorized to be outstanding, $60,000,000)
Fractional currency (acts of July 17, 1862 (12 Stat. 592),; March 3, 1863 (12 Stat. 711); Jxme 30, 1864 (13 Stat. 220)).
(Greatest amoxmt ever authorized to be outstanding, $50,000,000)
Legal tender notes (acts of Feb. 25, 1862 (12 Stat. 345); July 11, 1862 (12 Stat. 532); Mar. 3, 1863 (12 Stat. 710); May 31,
1878 (20 Stat. 87); Mar. 14, 1900 (31 Stat. 45); Mar. 4, 1907 (34 Stat. 1200)). (Greatest amount ever authorized to be outstanding, .U50,000,000)
Less gold reserve
- •
.
National bank notes (redeii?)tion account) (the act of July 14, 1890 (20 Stat. 289), provides that balances standing with the
Treasxirer of the United States to the respective credits of national banks for deposits made to redeem the circulating notes
of such banks, and all deposits thereafter received for like purpose, shall be covered into the Treasury as a miscellaneousreceipt, and the Treasurer of the United States shall redeem from the general cash in the Treasxiry the circulating notes of
said banks which may come into his possession subject to redemption, » * * and the balance remaining of the deposits so covered shall, at the close of each month, be reported on the monthly public debt statement as debt of the United States bearing
no interest). (Authorized to be outstanding at one time. Indefinite)
Thrift and Treasury savings stamps
Total gross public debt and guaranteed obligations
Footnotes on following page.
,251,923.55
^5 $60,030,000.00
52,917.50
^5 368,724,080.00
,966,429.75
346,681,016.00
346 ,681,016.00
156',039,430.93
>
DO
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253,620,521.50
1,912,632,557.77
Gross debt (including $12,948,849,567.65 debt incurred to finance expenditures of Government corporations for which obligations of such corporations are held by the Treasury)
Guaranteed obligations not owned by the Treasury
Total debt subject to limitation
667,975.86
583,947.69
3,713,194.75
Total debt bearing no interest
Deduct debt not subject to statutory limitation
$1,411,000,000.00
50,385,985.65
271,222,080,498.21
81,441,286.23
271,303,521,784.44
.
-
550,701,623.83
270,752,820,160.61
NO
For summary on basis of daily Treasury statements, see table 22.
^ Redeemable at the option of the United States on and after dates indicated,
except where otherwise stated. In case of Treasury bonds and Treasury Bonds, Investment Series B-1975-80, now outstanding, such bonds may be redeemed only on
interest dates, and 4 months' notice of rederaption must be given.
^ Treasxury bills are noninterest-bearing and are sold on a discount basis with
competitive bids for each issue. The average sale price of these series gives an
approximate yield on a bank discount basis (360 days a year) as indicated opposite each issue of bills. This yield differs slightly from the yield on a true
discount basis (365 days a year) which is shown in the suinmary of table 22.
^ Includes exchanges made by the Federal Reserve System of §1,000,000,000 of
Treasury bonds. Investment Series B-1975-80, for Treasury notes of Series EA-1956,
$500,000,000 each for Treasury notes of Series EO-1956 and EA-1957, and
$713,848,000 for Treasury notes of Series EO-1957.
' Not called for redemption on first call date. Callable on succeeding interest
payment dates.
^ Redeemable, at par and accrued interest, to date of payment, at any tirae upon
the death of the owner at the option of the duly constituted representative of
the deceased owner's estate, provided entire proceeds of redemption are applied
to payment of the Federal estate taxes due from deceased owner's estate.
' Araounts issued and retired for Series E, F, and J include accrued discount;
amounts outstanding are stated at current rederaption values. Amounts issued, retired, and outstanding for Series G, H, and K are stated at par value.
^ Approximate yield if held from issue date to end of lO-year extension period.
^ CXmers have the option of retaining the matured bonds for a further 19-year
period and earning interest upon maturity values thereof. During this additional
10-year period interest on bonds bearing issue dates of May 1, 1941, through
April 1, 1942, will accrue at the rate of 2 1/2 percent simple interest each year
for the first 7 1/2 years, and then increase for the remaining 2 l/2 years to
bring the aggregate interest return to approximately 2.9 percent, compounded
semiannually. On bonds bearing issue date of May 1, 1942, and subsequent dates,
interest will accrue after maturity at the rate of approximately 3 percent per
annum, compounded semiannually, for each half-year period of the extension
period. Matured Series E bonds in amounts of $500 (maturity value), or multiples
thereof, may be exchanged for Series K bonds (Tieasury Department Circular 906,
Anril 29, 1952).
° If held from issue date to end of lO-year extension period, bonds of this
series dated January 1, 1942, through April 1, 1942, yield approximately 2.9 percent and those dated May 1, 1942, through December 1, 1942, yield approximately
2.95 percent.
^ ^ Matured bonds of this series yield approximately 2.95 percent if .held from
•
issue date to end of lO-year extension period, and unmatured bonds of this series
yield approximately 2.9 percent if held to maturity.
^2 Deduct.
''• May be exchanged at option of owner for marketable 1 1/2 percent 5-year
••'
Treasury notes, dated April 1 and October 1 next preceding the date of exchange.
^^ For detailed information see 1951 annual report, page 772.
•• Includes amounts authorized to be outstanding at present time and amounts
"^
issued on deposits including reissues.
^^ After deducting amounts officially estimated to have been lost or irrevocably
destroyed.
Authorizing acts:
(a) September 24, 1917, as amended.
(b) August 5, 1909, February 4, 1910, and March 2, 1911.
(c) June 25, 1910.(d) Various.
Tax status:
(e) Any income derived from Treasury bills of this issue whether interest or
gain from their sale or other disposition does not have any exemption, as such,
and loss from the sale or other disposition of any such bills does not have any
special treatment, as such, under the Internal Revenue Code or laws amendatory or
supplementary thereto. The bills are subject to estate, inheritance, gift, or other
excise taxes, whether Federal or State, but are exe.-npt 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 piu-poses of
taxation the amoxmt of discount at which the bills are originally sold by the
United States is to be considered to be interest.
(f) Income derived from these securities is subject to all taxes now or hereafter imposed under the Internal Revenue Code or laws amendatory or suppleraentary
thereto. The securities are subject to estate, inheritance, gift, or other excise
taxes, whether Federal or State, but are 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 tajcing authority. The' following is
applicable to savings bonds only: For the purposes of taxation any increment in
value of savings bonds represented by the difference between the price paid and
the rederaption value received (whether at or before maturity) shall be considered
as interest.
Attention is invited to Treasury Decision 4550 ruling that bonds, notes, bills,
and certificates of indebtedness of the Federal Government or its agencies, and
the interest thereon, are not exempt from the gift tax.
(g). Exempt, both as to principal and interest, from all taxation now or hereafter imposed by the United States, any State, or any of the possessions of the
United States, or by any local taxing authority, except (a) estate or inheritance
taxes, and (b) graduated additional income taxes, commonly known as siu-taxes, and
excess profits and war profits taxes, now or hereafter imposed by the United
States, upon the income or profits of individuals, partnerships, associations, or
corporations. The interest on an amount of bonds authorized by the act approved
September 24, 1917, as amended, the principal of which does not exceed in the
aggregate $5,000 owned by any Individual, partnership, association, or corporation,
shall be exempt from the taxes provided for in clause (b) above.
(h) Exempt from the payment of all taxes or duties of the United States, as
well as from all taxation in any form by or under State,raxmicipal,or local authority. (The Supreme Court has held that this exemption does not extend to estate
or inheritance taxes, imposed by Federal or State authority.)
(i) These ..issues being investments of various Government funds and payable
only for the account of such funds have no present tax liability.
In hands of foreign holders--Applicable only to securities issuedprior to M a r .
1, 1941: Bonds, notes, and certificates of indebtedness of the Uniied States,
shall, while beneficially owned by a nonresident alien individual, or a foreign
corporation, partnership, or association, not engaged in business in the United
States, be exempt both as to principal and Interest from any and all taxation now
or hereafter imposed by the United States, any State, or any of the possessions of
the United States, or by any local taxing authority.
Total
,
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MEMORANDUM RELATING TO OTHER OBLIGATIONS
Obligations of the United States payable on presentation:
United States registered interest checks payable
United States Interest coupons due and outstanding
Interest payable with and accrued discount added to principal
of United States securities exclusive of transfer and
counter warrant transactions
4^
ro
Amount
112,515,385.50
129,358,269.84
130,556,080.74
272,429,736.08
4isO
TABLE 24. --Description of guaranteed obligations held outside the T r e a s u r y , June 30, 1954
4^
[On basis of daily Treasxiry statements, see "Bases of Tables"]
Tax
status Date of issue
(on and
after)
Payable
Interest payable
Principal
UNMATURED OBLIGATIONS
F e d e r a l Hoxising A d m i n i s t r a t i o n :
Mutxial m o r t g a g e insxurance fimd, a c t of
June 2 7 , 1 9 3 4 , a s amended:
3^ debentures. Series A
3^ debentxires. S e r i e s A
2 3/4^ debentures. Series E
2 3/4^ debentures. Series E
(eleventh call)
2 1/2^ debentures. Series K
2 1/2^ debentures. Series K
(third call)
yf) debentures. Series U
Housing insurance fxmd, act of June 27,
1934, as amended:
2 1/2^ debentures. Series M
(first call)
2 1/2^ debentures. Series Q
(first call)
Title I housing insurance fund, act of
Jime 27, 1934, as amended:
2 1/2^ debentures. Series L
....
2 1/2^ debentures. Series L
(first call)
War housing insurance fund, act of
Mar. 28, 1941, as amended:
2 1/2^ debentures. Series H
2 1/2^ debentures. Series H
(twelfth call)
2 1/2^ debentures. Series J (third
call)
Total unmatured obligations.
»^
X
{')
July 1, 1954
(2)
(^)
{')
(^)
(^)
(*)
do..
do..
do..
do..
n
(^)
(^)
()
*
(')
IC)
1, July 1.
1
1, July 1.
1
Jan. 1, July 1.
July 1
tn
$6,776,386.23
294,500.00
233,750.00
870,400.00
115,700.00
204,000.00
8
H
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Jan. 1, July 1..
(Called for redemption July 1,
1954)
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162,250.00
9
1,579,650.00
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.do
.do
.do
()
^
()
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(Called for redemption July 1,
1954)
I
(Called for redemption July 1,
1954)
,
Jan.
July
Jan.
July
{')
' {')
(Called for redemption July 1,
1954)
()
^
10 years after date
of debenture.
(Called for redemption July 1,
1954)
do
Jan. 1, July 1.
July 1
16,250.00
14,600.00
Jan. 1, July 1.
9,973,300.00
July 1
,
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60,164,650.00
3,300.00
tn
1,415,386.23
$80,415,386.23
MATURED OBLIGATIONS
$11.25
60,551.51
436.05
104,939.46
19.25
11.25
443,351.51
436.05
748,139.46
19.25
Total matured obligations.
1,026,000.00
165,957.52
6 1,191,957.52
Total based on guarantees.
81,441,386.23
165,957.52
81,607,343.75
Commodity Credit Corporation
Federal Farm Mortgage Corporation..
Federal Housing Administration
Home Owners' Loan Corporation
Reconstruction Finance Corporation.
382,800.00
643,200.00
>
NOTE.—For obligations held by Treasxiry and reflected in the public debt, see
table 74.
• Does not include accrued interest.
^
^ The National Hoxising Act as amended by the National Hoxising Act Amendments of
1938, approved Feb. 3, 1938, reads in part as follows: "Such debentures as are
issued in exchange for property.covered by mortgages insured under Section 203 or
Section 207 prior to the date of enactment of the National Housing Act Amendments
of 1938 shall b e subject only to such Federal, State, and local taxes as the mort'
gages in exchange for which they are issued would be subject to in the hands of the
holder of the debentxires. •* ^ » Such debentures as are issued in exchange for
» t
property covered by mortgages insured after the date of enactment of the National
Housing Act Amendments of 1938 shall be exempt, both as to principal and interest,
from all taxation (except surtaxes, estate, inheritance, and gift taxes) now or
hereafter imposed by the United States, by any Territory, dependency, or possession thereof, or by any State, coxinty, municipality, or local taxing authority."
Under the Public Debt Act of 1941, interest upon and gain from the sale of deben-
tures shall have no exemption xmder the Internal Revenue Code or laws amendatory
or supplementary thereto, except such debentxires as may be issued on contracts
entered into prior to Mar. 1, 1941.
^ Payable 3 years after the first day of July following the maturity date of the
mortgage for which each debenture was issued.
^ Income derived from these securities is subject to all taxes, now or hereafter
imposed under the Internal Revenue Code or laws amendatory or supplementary thereto. The securities are subject to sxirtaxes, estate, inheritance, gift, or other
excise taxes, whether Federal or State, but are exerapt from all taxation now or
hereafter iraposed on the principal or interest thereof by any State, municipality,
or local taxing authority.
^ Redeemable on any interest day or days, on 3 months' notice.
^ Funds have been deposited with the Treasurer of the United States for payment
of outstanding matxired principal and interest obligations guaranteed by the United
States.
" Amoxmt outstanding on basis of Public Debt accounts is shovm in table 18.
^
r
4^
T A B L E 25.--Description of certain contingent liabilities outstanding June 30, 1954
4^
>
[On basis of reports received by the Treasury]
Title and authorizing act
Tax
status
Date of issue
Payable
Interest
payable
Rate of
interest
Amoxmt
Principal
Aocrued interest
Total
QN CREDIT OF THE UNITED STATES
U. S; Postal Savings System—fxmds due
depositors, act of June 25, 1910, as
amended.^
Canal Zone Postal Savings System—funds
due depositors, act of Jxme 13, 1940.^
()
^
Percent
do
On demand.
do...
Total
2
$2,251,419,237.00
$103,870,487.93
5 $2,355,289,724.93
2
6,506,400.00
261,998.60
^ 6,768,398.60
2,257,925,637.00
Date of deposit...
104,132,486.53
2,362,058,123.53
OTHER OBLIGATIONS
Federal Reserve notes (face amount), act
of Dec. 23, 1913, as amended.''
^ Does not include contingent liability on guaranteed and insured loans to veterans which, as of June 30, 1954, amounted to $9,618,000,000; also does not include
contingent liability on war production and contract termination guaranteed loans
of the Department df the Army which as of June 30, 1954, amounted to $563,942.58;
and contingent liability on loans guaranteed by various agencies through the Federal Reserve Banks pursuant to the Defense Production Act of 1950, which as of
June 30, 1954, amounted to $534,695,456.85.
^ The faith of the United States is solenmly pledged tp payment of deposits made
in postal savings depositary offices with accrued interest thereon.
f Under Public Debt Act of 1941, income derived from deposits made subsequent to
Mar. 1, 1941, is subject to all Federal taxes.
^ Interest payable quarterly from first day of month next following date of deposit.
^ Offset by cash in designated depositary banks amounting to $30,644,074.76,
which- is secured by the pledge of collateral as provided in the Regulations of the
Postal Savings System, having a face value of $30,911,450; Government securities
^ 24,726,731,173.32
with a face value of $2,246,641,940; and cash in possession of System and other
net assets of $81,621,986.62.
^ Offset by Government secxirities with a face value of $7,100,000; and other
assets.
'' Federal Reserve notes are obligations of the United States and shall be re'
ceivable by all national and member banks and Federal Reserve Banks and for all
taxes, customs, and other public dues. They are redeemable in lawful money on demand at the Treasury Department, Washington, D. C , or at any Federal Reserve Bank.
® In actual circulation, exclusive of $861,405,136.68 redemption fund deposited
in the Treasury and $955,040,235 of their own Federal Reserve notes held by the
issuing banks. The collateral security for Federal Reserve notes issued consists of
$11,043,000,000 in gold certificates and in credits with the Treasurer of the
United States payable in gold certificates, $16,945,000,000 face amount of U. S.
Government securities, and $13,617,000 face amount of comraercial paper. Notes
issued by a Federal Reserve Bank, are a first lien against the assets of such Bank.
X
tn
s
H
O
H
X
tn
m
H
O
•
n
t
n
497
TABLES
OPERATIONS IN THE PUBLIC DEBT, ETC.
-Issues, m a t u r i t i e s , and redennptions of interest-bearing public debt s e c u r i t i e s , excluding
special i s s u e s , July 1953-June 1954^
Rate of
interest^
Amount issued-*
Amount matured, or
called or redeemed
prior to maturity'^
1953
Percent
July
1
2
Postal savings bonds, 45th Series
,
Treasury bills:
Issued Apr. 2, 1953:
Redeemed in exchange for series
dated July 2, 1953
,
Redeemable for cash
Maturing Oct. 1, 1953:
Issued in exchange for series dated
Apr. 2, 1953
Issued for cash
Issued Apr. 9, 1953:
Redeemed in exchange for series
dated July 9, 1953
Redeemable for cash
Maturing Oct. 8, 1953:
Issued in exchange for series dated
Apr. 9, 1953
Issued for cash
Certificates of indebtedness. Series C-1954
(tax anticipation series):
Maturing Mar. 22, 1954:
Issued for cash
.
,
Treasury bills:
Issued Apr. 16, 1953:
Redeemed in exchange for series
dated July 16, 1953.
Redeemable for cash
Maturing Oct. 15, 1953:
Issued in exchange for series dated
Apr. 16, 1953
Issued for cash
Issued Apr. 23, 1953:
Redeemed in exchange for series
. dated July 23, 1953
Redeemable for cash.. .
•
.
'
Maturing Oct. 22, 1953:
Issued in exchange for series dated
Apr. 23, 1953
Issued for cash
Issued Apr. 30, 1953:
Redeemed in exchange for series
dated July 30, 1953
. • Redeemable for cash
Maturing Oct. 29, 1953:
Issued in exchange for series dated
Apr. 30, 1953
Issued for cash
United States savings bonds:^
Series E-1941
Series E-1942
•
.
Series E-1943
Series E-1944
Series E-1945
'
Series E-1946.
Series E-1947
Series E-1948
Series E-1949
Series E-1950
Series E-1951
Series E-1952 (Jan. to Apr.)..
Series E-1952 (May to Dec.)
. Series E-1953
Unclassified sales and redemptions
Series F-1941
Series F-1942
Series F-1943
;
Series F-1944
Series F-1945 '•
Series F-1946
Series F-1947
Series F-1945
Series F-1949
Footnotes at end of table.
$17,052,940.00
2-1/2 •
88,324,000.00
1,112,223,000.00
$88,324,000.00
1,411,995,000.00
119,301,000.00
1,281,511,000.00
119,301,000.00
1,381,878,000.00
2-1/2
5,901,636,000.00
231,542,000.00
1,169,194,000.00
231,542,000.00
1,268,738,000.00
190,347,000.00
1,310,179,000.00
190,347,000.00
1,310,273,000.00
110,985,000.00
1,388,939,000.00
110,985,000.00
1,389,125,000.00
' 2.90
' 2.90
' 2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90 •
3.00
3.00
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
856 470.47
7,514 213.49
11,960 571.62
27,906 144.56
13,537 343.55
10,109 905.56
9,714 988.30
6,282 364.57
6,474 429.92
6,199 754.69
2,561 251.95
1,502 521.11
2,249 308.80
331,680 ,838.90
' 2,990 304.39
465 ,693.15
2,384 ,698.64
1,367 ,611.88
3,177 ,387.22
742 ,263.58
841 ,789.76
1,087 ,451.48
4,107 2AS.96
642 630.15
2,180 252.82
12,644 320.76
26,611 798.61
9,267 993.19
6,957 790.98
3,211 ,456.83
3,153 ,273.20
3,749 ,044.25
4,260 ,188.25
4,957 ,393.54
6,789 ,941.57
3,482 ,078.40
12,570 ,080.54
21,738 ,562.80
235,139 965.01
2,789 508.00
223 131.63
282 990.61
293 355.35
219 059.35
180 488.75
,205.47
240'
161 ,187.48
115 ,436.35
498
1954 REPORT OF THE SECRETARY OF THE TREASURY
-Issues, m a t u r i t i e s , and redemptions of interest-bearing public debt securities, excluding
special i s s u e s , July 1953-June 1954^--Continued
Rate of
interest^
United States savings bonds^—Continued
Series F-1950
Series F-1951
Series F-1952
Unclassified sales and redemptions
Series G-1941
Series G-1942
Series G-1943
Series G-1944
Series G-1945
Series G-1946
Series G-1947
Series G-1948
Series G-1949
Series G-1950
Series G-1951
Series G-1952
Unclassified sales and redenqptions
Series H-1952
Series H-1953
v
Series J-1952
Series J-1953
Series K-1952
Series K-1953
Depositary bonds, First Series
Treasury savings notes:
Series D-1953
Series D-1954
Series A-1954
Series A-1955
Series A-1956
Series B-1955
,
Treasury bonds. Investment Series B-1975-80
Redeemed in exchange' for Treasury notes,
Series EA-1958
Treasury notes. Series EA-1958
,
Miscellaneoxis
,
Percent
2.53
2.53
2.53
6
Treasury bills:
Issued May,7, 1953:
Redeemed in exchange for series
dated Aug. 6, 1953
,
Redeemable for cash
Maturing Nov. 5, 1953:
Issued in exchange for series dated
May 7, 1953
,
Issued for cash
Issued May 14, 1953:
Redeeined in exchange for series
dated Aug. 13, 1953
Redeemable for cash
Maturing Nov. 12,1953:
Issued.in exchange for series dated
May 14, 1953
Issued for cash
Certificates of Indebtedness, Series C-1953:
Redeemed in exchange for certificates
Series D-1954.
,
Redeemable for cash
Certificates of indebtedness. Series D-1954
Treasury bills:
Issued May 21, 1953:
Redeemed in exchange for series
dated Aug. 20, 1953
Redeemable' for cash
Maturing Nov. 19, 1953:
Issued in exchange.for series dated
May 21, 1953
Issued for cash
Footnotes at end of t a b l e .
Ampunt matxu:ed, or
called or redeemed
prior to maturity'^
42,617,000.00
65,709.30
10,440,964.10
54,000.00
22,274,500.00
4,087,000.00
$439 516.63
143 179.67
A3 605.15
30,165 598.26
32,816 200.00
8,586 900.00
8,477 300.00
10,206 500.00
7,649 100.00
9,684 500.00
8,113 800.00
8,287, 300.00
4,562 900.00
7,872 ,700.00
3,490 ,400.00
957 ,600.00
33,624 ,500.00
1,135 000.00
282 ,000.00
126 ,083.92
1,065 ,438.00
• 1,677 ,000.00
,000.00
130
000.00
6,558
1.40
1.40
1.88
1.88
1.88
2.47
471,581,700.00
' 21,149,900.00
3,255,100.00
91,719,500.00
74,446,100.00
23,294,400.00
4,686,200.00
2-3/4
1-1/2
30,109,000.00
$450,265.39
181,424.41
59,515.85
5 222.00
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
5 500.00
"3.00
3.00
2.76
2.76
2.76
2.76
2.00
30^109,000.00
31,138,000.00
14,436,441,434.97
Total, July
Aug.
Amount issued^
7,846,715,765.37
181,755,000.00
1,318,625,000.00
181,755,000.00
1,318,554,000.00
208,037,000.00
1,292,532,000.00
208,037,000.00
1,292,665,000.00
2,788/226,000.00
93,350,000.00
2.00
'2-5/8
2,788,226,000.00
154,235,000.00
1,346,978,000.00
154,235,000.00
1,347,193,000.00
TABLES
499
TABLE 26. - - I s s u e s , m a t u r i t i e s , and redemptions of interest-bearing public debt securities, excluding
special i s s u e s , July 1953-June 1954^--Continued
Rate of
interest^
Amount matured, or
called or redeemed
prior to maturity"^
Amount issued-*
1953
Aug. 27
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31.
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
Treasury bills—Continued
Issued May 28, 1953:
Redeemed in exchange for aeries dated
Aug. 27, 1953
Redeemable for cash
Maturing Nov. 27, 1953:
Issued in exchsmge for series dated
May 28, 1953
Issued for cash
United States savings bonds:^
Series E-1941
^
Series E-1942
Series E-1943
Series E-1944
Series E-1945
Series E-1946
Series E-1947.
Series E-1948
Series E-1949
Series E-1950
Series E-1951
Series E-1952 (Jan. to Apr.)
Series E-1952 (May to Dec.)
Series E-1953
Unclassified sales and redemptions
Series F-1941
Series.F-1942
Series F-1943
Series F-1944
Series F-1945
Series F-1946
Series F-1947
Series F-1948
Series F-1949
Series F-1950
'
Series F-1951
Series F-1952
Unclassified sales and redemptions
Series G-1941
Series G-1942
Series G-1943
Series G-1944
Series G-1945
Series G-1946
Series G-1947
Series G-1948
Series G-1949.
Series G-1950
Series G-1951
Series G-1952
Unclassified sales and redemptions
Series .H-1952
Series H-1953
Series J-1952.
Series J-1953
Series K-1952
Series K-1953
Depositary bonds. First Series
Treasury savings notes:
Series D-1953
Series D-1954
Series A-1954
Series A-1955
Series A-1956
Series B-1955
Treasury bonds. Investment Series B-1975-80:
Redeemed in exchange for Treasury notes.
Series EA-1958
Treasury notes. Series EA-1958
Miscellaneous
Total, August.
Footnotes at end of table.
Percent
$192,666,000.00
1,308,111,000.00
2.084
$192,666,000.00
1,308,852,000.00
2.90
' 2.90
' 2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
3.00
3.00
*2!53'
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
37,425,000.00
60,544.55
7,657,741.00
1,500.00
17,497,500.00
1,272,000.00
6,677,557.12
38,491,361.25
89,641,560.40
30,106,772.85
22,116,785.65
10,851,569.45
11,135,638.35
13,223,284.30
15,321,198.70
17,336,206.79
22,097,287.46
10,877,529.76
37,555,707.2577,560,163.85
' 73,673,177.05
15,855,469.00
2,117,340.49
2,350,697.72
2,246,034.08
1,591,846.55
1,161,784.71
1,315,383.30
2,604,341.16
1,594,870.83
3,096,301.03
714,600.06
310,994.58
' 10,568,336.99
65,539,700.00
9,290,200.00
8,917,200.00
9,528,400.00
6,934,000.00
11,833,300.00
7,783,600.00
8,561,200.00
6,509,700.00
9,408,000.00
4,328,300.00
1,216,000.00
' 30,271,000.00
1,152,000.00
427,500.00
168,630.40
319,918.14
2,139,500.00
931,000.00
3,971,000.00
478,751,200.00
10 10,952,700.00
1,114,200.00
73,056,900.00
97,060,200.00
22,005,200.00
3,737,200.00
602 J542.47
4,694^ 760.84
9,451^ 190.25
20,876, 452.84
9,619, 049.48
7,771, 317.90
6,548' 310.65
4,698' 276.18
4,954, 893.35
4,639 735.73
2,067' 449.81
1,202^ 218.66
1,975, 939.95
297,141 631.80
13,266 642.73
296' 951.40
1,112,458.09
723, 945.82
1,279j 877.74
377, 374.66
562, 163.95
579, 531.80
469, 200.68
358, 456.69
246, 437.18
116, 960.18
972.17
37,
2.50
2.50
2.50
2.50
2.50
2.50'
2.50
2.50
2.50
2.50
2.50
2.50
3.00
3.00
2.76
2.76
2.76
2.76
2.00
1.40
1.40
1.88
1.88
1.88
2.47
2-3/4
1-1/2
37,333,000.00
37,333,000.00
3*692*900.00
9,767,853,228.55
T
9,615,866,221.19
500
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 26. - - I s s u e s , m a t u r i t i e s , and redemptions of interest-bearing public debt securities, excluding
specia] i s s u e s , July 1953-June 1954-'^--Continued
Rate of
interest^
Issue
Date
Amount issued^
Amount matured,
or called or
redeemed prior
to maturity*
1953
Sept.
3
3
10
10
15
15
15
15
17
17
18
Treasury bills:
Issued June 4, 1953:
Redeemed in exchange for series
• dated Sept. 3, 1953
Redeemable for cash
Maturing Dec. 3, 1953:
Issued in exchange for series dated
June 4, 1953
Issued for cash
Issued June 11, 1953:
Redeemed in exchange for series
dated Sept. 10, 1953
Redeemable for cash
Maturing Dec. 10, 1953:
Issued in exchange for series dated
June 11, 1953
Issued for cash
Treasury bonds of 1951-53:
Redeemed in exchange for certificates.
Series E-1954
Redeemable for aash.
Certificates of indebtedness. Series E-1954
Treasury bonds of 1951-53:
Redeemed in exchange for Treasury
notes. Series-A-1957
Treasury notes. Series A-1957
Treasury bills:
Issued June 18, 1953:
Redeemed in exchange for series
dated Sept. 17, 1953
Redeemable for cash.
Maturing Dec. 17, 1953:
Issued in exchange for series dated
June 18, 1953
Percent
2.416
1.961
$175,678,000.00
1,324,623,000.00
$175,678,000.00'
1,324,804,000.00
92,735,000.00
1,307,221,000.00
2.323
1.953
92,735,000.00
1,407,773,000.00
4,724,009,000.00
265,659,000.00
2.00
2-5/8
4,724,009,000.00
2.00
2-7/8
2,996,574,000.00
2,996,574,000.00
2.228
1.957
193,413,000.00
1,307,090,000.00
193,413,000.00
1,306,877,000.00
Treasury bills (tax anticipation series):
Issued June 3, 1953:
2.383
24
24
30
30
X
30
30
30
X
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
Treasury bills:
Issued June 25, 1953:
Redeemed in exchange for series
dated Sept. 24, 1953
Redeemable for cash
Maturing Dec. 24, 1953:
Issued in exchange for series dated
June 25, 1953
United States savings bonds:'
Series E-1941
Series E-1942.
Series E-1943.
Series E-1944
Series E-1945
Series E-1946.
Series E-1947
Series E-1948....'
Series E-1949
Series E-1950
Series E-1951
Series E-1952 (Jan. to Apr.)..
Series E-1952 (May to Dec.).'.
Series E-1953
Unclassified sales and redeniptions
Series F-1941
Series F-1942
;
'Series F-1943.
Series F-1944
Series F-1945
Series F-1946
Series F-1947
Series F-1948
Series F-1949
Series F-1950
Series F-1951
Series F-1952
Unclassified sales and redemptions
Footnotes at end of table.
•....
800,464,000.00
1.954
258,173,000.00
1,242,056,000.00
1.634
* 2.90
" 2.90
^
* 2.90
2.90
2:90
2.90
.2.902.90
2.90
2.90
2.90
2.90
3.00
3.00.
*"*2!53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
258,173,000.00
1,241,775,000.00
536,504.26
5,059,921.36
25,894,122.50
9,481,092.78
8,754,375.83
7,358,723.20
6,460,802.65
4,340,705.13
4,725,138.36
4,512,339.33
1,533,387.39
1,170,454.68
1,960,505.70
310,351,340.00
' 7,408,959.64
^V 2,347,935.51
1,285,241.60
2,473,784.44
376,368.91
341,032.78
502,194.58
609,079.70
431,180.81
361,058.84
225,236.23
94,695.91
31,752.25
20,572.00
•
5,767,520.36
33,696,181.77
84,353,636.18
29,760,715.83
21,582,552.35
10,448,355.55
11,062,983.07
13,113,591.62
14,959,237.29
16,792,283.50
21,296,062.47
10,442,297.29
34,003,111.00
88,954,984.35
' 18,488,462.77
12,422,434.50
3,388,170.49
3,546,780.14
4,081,845.08
2,870,676.93
2,635,304.80
2,743,722.69
2,659,542.81
2,020,887.62
3,095,755.55
1,491,964.27
552,915.28
' 21,284,175.77
501
TABLES
TABLE 26. - - I s s u e s , nnaturities, and redemptions of interest-bearing public debt securities, excluding
special i s s u e s , July 1953-June 1954^--Continued
Rate of
interest^
1953
Sept.30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
United States savings bonds^—Continued
Series G-1941
Series G-1942
Series G-1943
Series G-1944
Series G-1945
Series G-1946
Series G-1947
Series G-1948
Series G-1949
Series G-1950
Series G-1951
Series G-1952
Unclassified sales and redemptions....
Series H-1952
..
'
Series H-1953
Series J-1952
Series J-1953
Series K-1952
Series K-1953
Depositary bonds. First Series
Treasury savings notes:
Series D-1953
Series D-1954
Series A-1954
Series A-1955.
Series A-1956
Series B-1955
Treasury bonds. Investment Series B1975-80: Redeemed in exchange for
Treasury notes. Series EA-1958
Treasxiry notes, Series EA-1958
Miscellaneous
,
Total, September
Treasury bills:
Issued July 2, 1953:
Redeemed in exchange for series
dated Oct. 1, 1953
,
Redeemable for cash
,
Maturing Dec. 31, 1953:
Issued in exchange for series dated
July 2, 1953..
,
Issued for cash
,
Issued July 9, 1953:
Redeemed in exchange for series
dated Oct. 8, 1953
,
Redeemable for cash
Maturing Jan. 7, 1954:
Issued in exchange for series dated
July 9, 1953
,
Issued for cash
Issued July 16, 1953:
Redeemed in exchange for series
dated Oct. 15,. 1953
Redeemable for cash
,
Maturing-Jan. 14, 1954:
Issued in exchange for series dated
July 16, 1953
Issued for cash
,
Issued July 23, 1953:
Redeemed in exchange for series
dated Oct. 22, 1953
,
Redeemable for cash
,
Maturing Jan. 21, 1954:
Issued in exchange for series dated
July 23, 1953
Issued for cash
,
Issued July 30, 1953:
Redeemed in exchange for series
dated Oct. 29, 1953
,
Redeemable for cash
Maturing Jan. 28, 1954:
Issued in exchange for series dated
July 30, 1953
Issued for cash
,
Footnotes at end of table.
Amount issued-^
Amount matxired, or
called or redeemed
prior to maturity^
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
$3,000.00
3.00
3.00
2.76
2.76
2.76
2.76
2.00
41,808,000 00
78,641.35
8,186,836.90
1,500.00
16,74B,500.00
20,040,000.00
$52,025 500.00
8,337 ,400.00
9,692 ,100.00
8,283 ,100.00
6,489 ,600.00
8,824 800.00
6,731 ,800.00
8,089 ,200.00
3,946 ,100.00
4,711 ,400.00
2,972 ,600.00
831 ,500.00
' 11,889 ,100.00
953 ,000.00
703 ,500.00
1,724 ,182.94
9 194 ,255.82
995 500.00
563 ,000.00
2,728 ,000,00
1.40
1.40
1.88
1.88
1.88
2.47
952,036,900.00
° 13,513,800.00
2,015,900.00
63,274,500.00
77,655,400.00
15,149,100.00
118,063,500.00
2-3/4
1-1/2
104,927,000.00
104,927,000.00
3,153,500.00
15,254,776,124.32
15,599,937,501.37
240,712,000.00
1,259,607,000.00
240,712,000.00
1,260,231,000.00
131,031,000.00
1,370,148,000.00
131,031,000.00
1,369,789,000.00
238,142,000.00
.1,262,138,000.00
238,142,000.00
1,263,302,000.00
178,027,000.00
1,322,593,000.00
178,027,000.00
1,322,722,000.00
112,169,000.00
1,387,941,000.00
112,169,000.00
1,387,710,000.00
502
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 26. - - I s s u e s , m a t u r i t i e s , and redemptions of interest-bearing public debt securities,
special i s s u e s , July 1953-June 1954^--Continued
Rate of
interest^
Issue
Date
Amount issued^
excluding
Amount matured, or
called or redeemed
prior to maturity"^
1953
Oct.
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
United States savings bonds:'
Series E-1941
Series E-1942.
,
Series E-1943
,
Series E-1944
Series E-1945
Series E-1946
Series E-1947
Series E-1948
Series E-1949
Series E-1950
Series E-1951
Series E-1952 (Jan. to Apr.)
Series E-1952 (May to Dec.)
Series E-1953
Unclassified sales and rederaptibns
Series F-1941
Series F-1942
Series F-1943
Series F-1944
Series F-1945
Series F-1946
,
Series F-1947
Series F-1948
,
Series F-1949
Series F-1950
Series F-1951
Series F-1952
Unclassified sales and redemptions
Series G-1941
Series G-1942
,
Series G-1943
,
Series G-1944
,
Series G-1945
Series G-1946
Series G-1947
,
Series G-1948
,.,
Series G-1949.
,,
Series G-1950
Series G-1951
,
Series G-1952
,
Unclassified sales and redemptions
Series H-1952
Series H-1953
,
Series J-1952.
,
Series J-1953
Series K-1952
Series K-1953
Depositary bonds First Series
Treasury savings notes:
Series D-1953
Series D-1954
Series A-1954
Series A-1955
Series A-1956
Series B-1955
Series C-1955-A
Treasury bonds, investment Series B-1975-80:
Redeemed in exchahge for Treasury notes,
Series EA-1958
31
31 Treasury bonds. Investment Series B-1975-80:
Redeemed in exchange for Treasury notes.
Series EO-1958
31
31
5
2.53.
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
$680,497.17
5,471,833.13
16,770,575.39
8,640,658.86
10,807,252.23
7,567,521.25
5,980,411.20
4,245,820.49
4,406,773.80
4,178,747.20
2,075,785.35
1,028,029.13
2,215,545.30
315,545,188.95
' 710,864.83
238,741.00
1,110,673.84
2,279,704.37
282,219.21
454,762.10
495,032.59
574,208.03
347,386.99
300,791.50
1,189,964.25
102,180.09
24^661.62
' 20,498.00
2.*56
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
3.00
3.00
2.76
2.76
2.76
2.76
2.00
43,396', 500.00
67,725.74
8,431,372.30
1,500.00
18,755,500;00
532,000.00'
1.40
1.40
1.88
1.88
1.88
2.47
2.21
8,787,000.00
677,740,300.00
2-3/4
1-1/2
1° 13,125,100.00
362,700.00
17,937,900.00
12 853,700.00
5 567 200.00
18 139 000.00
133,481,000.00
2-3/4
1-1/2
$6,127,508.41
33,894,342.22
145,117,105.63
29,165,085.51
20,805,563.25
10,351,951.55
10,620,156.70
12,728,833.74
14,010,159.15
15 679 644.27
19,873,795.40
9,706,922.72
28,621,864.72
100 351 443.65
^ 106,098,395.99
11,024,451.50
2,300,657.97
2,972,249.88
2 300 143.23
1,456,106.38
1,186,165.97
1,499,483.66
1,299,145.45
853,005.62
1,580,731.92
867,012.80
280 607.68
' 4,277,717.37
55,733,200.00
6,491,400.00
8,140,100.00
5 931 600.00
7 206 000.00
8,639,900.00
6,802,300.00
4,538,200.00
4,419,000.00
9,135,200.00
2,322,700.00
784,000.00
5 11,518,900.00
906,000.00
967,000.00
793,763.50
^1 131,017.36
976,000.00
490,500.00
5,101,000.00
9,390,000.00
133,481,000.00
9 390 000.00
9 660 650.00
Total
Nov.
Percent
^ 2.90
• 2.90
^
8 2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
3.00
3.00
October
Footnot BS at end of table.
8,800,701,500.25
;
Treasury bills:
Issued Aug, 6, 1953:
Redeemed in exchange for series dated
Nov. 5 1953
Redeemable for cash
2.136
8 215 051 221.76
168 644 000 00
1 331 665 000.00
TABLES
TABLE 26. - - I s s u e s ,
503
n a t u r i t i c s , and redennptions of i n t e r e s t - b e a r i n g public debt seci r i t i e s ,
special i s s u e s , July 1953-June 1954^--Continued
Rate of
interest^
1953
NQV.
5
Treasury bills:
Maturing Feb. 4, 1954:
Issued in exchange for series dated
Aug. 6, 1953
Issued for cash
Treasury bonds of 1961:
Issued for cash
Treasury bills:
Issued Aug. 13, 1953:
Redeemed in exchange for series
dated Nov. 12, 1953
Redeemable for cash
Maturing Feb. 11, 1954:
Issued in exchange for series dated
Aug. 13, 1953
Issued for cash
Issued Aug. 20, 1953:
Redeemed in exchange for series
dated Nov. 19, 1953
Redeemable for cash,
Maturing Feb. 18, 1954:
Issued in exchange for series dated
Aug. 20, 1953
Issued for cash
Issued Aug. 27, 1953:
Redeemed in exchange for series
dated Nov. 27, 1953
Redeemable for cash
Maturing Feb. 25, 1954:
Issued in exchange for series dated
Aug. 27, 1953
Issued for cash
;...
United States savings bonds:'
Series E-1941
Series E-1942
Series E-1943
Series E-1944
Series E-1945
Series E-1946
Series E-1947
Series E-1948
Series E-1949
Series E-1950
Series E-1951
Series E-1952 (Jan. to Apr.)
Series E-1952 (May to Dec.)
Series E-1953
Unclassified sales and redemptions
Series F-1941
Series F-1942
Series F-1943
Series F-1944
Series F-1945
Series F-1946
Series F-1947
Series F-1948
Series F-1949
Series F-1950
Series F-i951
Series F-1952
Unclassified sales and redenqptions
. Series G-1941
Series G-1942
Series G-1943
'
.
Series G-1944
Series G-1945
Series G-1946
r
- Series G-1947.
Series G-1948
Series G-1949
Series G-1950
Series G-1951
Series G-1952
Unclassified sales and reden?3tions
Series H-1952
Footnotes at end of table.
Percent
1.306
2-3/4
Amount issued-'
excluding
Amount matured, or
called or redeemed
prior to maturity'^
$168,644,000.00
1,331,977,000.00
2,239,262,000.00
$198,855,000.00
1,301,847,000.00
198,855,000.00
1,301,211,000.00
158,116,000.00
1,343,312,000.00
158,116,000.00
1,343,571,000.00
238,432,000.00
1,263,086,000.00
238,432,000.00
1,262,738,000.00
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
3.00
3.00
2.53
2.53
2.53
2.53
2.53
2.53
2.53
•2.53
2.53
2.53
2.53
2.53
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
3.00
1,270 492.40
6,285 ,213.54
9,300 ,721.38
15,050, ,975.41
26,8i32 ,759.38
7,559 ,491.75
5,554' ,231.05
4,260, ,306.70
4,391, ,497.53
4,060J ,215.30
l , 9 9 l ' ,348.57
3 ,506.25
4,432' ,650.78
287,037 ,548.50
12,880 ,195.17
212 ,881.50
1,144 ,255.40
677 ,869.74
886 ,948.56
1,259, ,745.16
477, ,052.52
454 ,926.71
,911.14
340'
,050.14
316
,898.30
363
,633.75
91,
369.75
148.00
4,475 468.97
25,077 853.02
89,820 ,210.80
22,124 ,607.71
16,230 ; 236.95
7,978 849.20
8,408 ,275.70
9,387 245.85
10,931 560.13
12,067 970.84
14,752 ,674.73
7,305 ,230.79
20,643 993.79
82,134 ,713.50
^ 19,524 ,924.02
8,790 ,305.00
1,207 125.80
1,345 495.14
1,098 ,894.57
1,293 ,200.43
1,049 ,590.98
945 ,850.80
864 ,006.60
560 ,950.43
1,203 ,134.22
712.53
608
,734.22
118
,674.53
3,442
,600.00
31,703
100.00
6,231
000.00
6,881
700.00
7,680
800.00
6,547
500.00
8,776 ,800.00
7,094 ,300.00
4,859 ,700.00
3,823 000.00
3,886 ,100.00
2,111 ,500.00
682 ,600.00
8,713 ,500.00
726
504
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 26. - - I s s u e s , maturities, and redemptions of interest-bearing public debt s e c u r i t i e s , excluding
special i s s u e s , July 1953-June 1954^--Continued
Rate of
interest^
1953
Nov. 30
30
30
30
30
30
30
30
30
30
30
30
30
30
United States savings bonds'—Continued
Series H-1953.
Series J-1952
Series J-1953
Series K-1952
Series K-1953
Depositary bonds. First Series
Treasury savings notes:
Series D-1953
Series D-1954
Series A-1954
Series A-1955
Series A-1956
Series B-1955
Series C-1955-A
Treasxiry bonds. Investment Series B1975-80: Redeemed in exchange for
Treasury notes. Series EA-1958
Treasxupy notes. Series EA-1958
Treasury bonds. Investment Series B1975-80: Redeemed in exchange for
Treasury notes. Series EO-1958
Treasury notes. Series EO-1958...
Miscellaneoxis
Percent
3.00
2.76
2.76
2.76
2.76
2.00
Footnotes at end of table.
$40,625,000.00
194,041.20
10,276,508.80
2,000.00
19,173,000.00
559,000.00
Amount matured, or
called or redeemed
prior to maturity^
•
$896,000.00
266,203.08
372,361.92
999,000.00
472,500.00
2,535,000.00
^° 7,688,900.00
768,100.00
5,862,000.00
8,000,900.00
3,323,500.00
29,432,300.00
1.40
1.40
1.88
1.88
1.88
2.47
2.21
1,900,000.00
2-3/4
1-1/2
160,000.00
2-3/4
1-1/2
12,441,000.00
12,441,000.00
503,537,700.00
8,725,281,154.88.
Total, November
Treasury notes. Series A-1953:
Redeemed in exchange for Treasury
notes. Series B-1954
Redeemable for cash
Treasury notes. Series B-1954
Treasury notes,. Series A-1953:
Redeemed in exchange for Treasury
bonds of 1958
Treasury bonds of 1958 (additional issue)..
Treasury, bills:
Issued Sept. 3, 1953:
Redeemed in exchange for series
datedDec. 3, 1953
Redeemable for cash
Maturihg Mar. 4, 1954:
Issued in exchange far series dated
Sept. 3, 1953
Issued for cash.
Issued Sept. 10, 1953:
Redeemed in exchange for series
dated Dec. 10, 1953
Redeemable for cash
Maturing Mar. 11, 1954:
Issued in exchange for series dated
Sept. 10, 1953
Issued for cash
Issued Sept. 17, 1953:
Redeemed in exchange for series
datedDec. 17, 1953
Redeemable for cash
Maturing Mar. 18, 1954:
Issued in exchange for series dated
Sept. 17, 1953
Issued for cash
Issued Sept. 24, .1953:
Redeemed in exchange for series
dated Dec. 24, 1953
Redeemable for cash
Maturing Mar. 25, 1954:
Issued in exchange for series dated
Sept. 24, 1953
Issued for cash
Issued Oct. 1, 1953:
Redeemed in exchange for series
dated Dec. 31, 1953
Redeemable for cash
Maturing Apr. 1, 1954:
Issued in exchange for series dated
Oct. 1, 1953
Issued for cash
Amount issued^
2-1/8
7,014,773,X8.21
8,175,143,000.00
118,286,000.00
'1-7/8
8,175,143,000.00
2-1/8
2-1/2
.1,748,238,000.00
1,748,238,000.00
205,128,000.00
1,295,354,000.00
205,128,000.00
1,295,134,000.00.
• 154,767,000.00
1,345,741,000.00
154,767,000.00
1,345,922,000.00
214,727,000.00
.1,285,563,000.00
214,727,000.00
1,285,811,000.00
299,410,000.00
1,200,538,000.00
299,410,000.00
1,201,862,000.00
316,888,000.00
1,184,055,000.00
316,888,000.00
1,185,382,000.00
505
TABLES
TABLE 2 6 . - - I s s u e s , m a t u r i t i e s , and redemptions of i n t e r e s t - b e a r i n g public debt s e c u r i t i e s , excluding
special i s s u e s , July 1953-June 1954^--Continued
Rate of_
interest'
1953
Dec. :
United States savings bonds:'
Series E-1941
,
Series E-1942
,
Series E-1943
,
Series E-1944
Series E-1945
,
Series' E-1946
Series E-1947
Series E-1948
Series E-1949
Series E-1950
Series E-1951
SeriesE-1952 (Jan. to Apr.)
Series E-1952 (May to Dec.)
Series E-1953
Unclassified sales and redemptions....
Series F-1941
Series F-1942
Series F-1943
Series F-1944
Series F-1945
.Series F-1946
Series F-1947.
Series F-1948
Series F-1949
Series F-1950
Series F-1951
Series F-1952
Unclassified sales and redemptions....
Series G-1941
:
Series G-1942
Series G-1943
Series G-1944
Series G-1945
Series G-1946
,
Series G-1947
Series G-1948
,
,
Series G-1949
,
Series G-1950
,
Series G-1951
Series G-1952
Unclassified sales and redemptions....
Series H-1952
Series H-1953
Series J-1952
'
Series J-1953
Series K-1952
Series K-1953
,
Depositary bonds. First Series,-.
,
Treasury savings nptes:
Series D-1953
Series D-1954
Series A-1954
Series A-1955
Series A-1956
Series B-1955
Series C-1955-A
Treasury bonds, Investment Series B-1975-1
Redeemed in exchange for Treasury notes,
Series EA-1958
Treasury notes. Series EA-1958..'
Treasury bonds, Inves-tment Series B-1975-1
Redeemed in exchange for Treasury notes,
Series EO-1958
Treasury notes. Series EO-1958
Miscellaneous
2.90
' 2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
3.00
3.00
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
Postal savings bonds, 46th Series
Treasxu-y bills:
Issued Oct. 8, 1953:
Redeemed,in exchange for series dated
- Jan. 7, 1954
,
Redeemable for cash
Footnotes a t end of t a b l e .
$3,317, 540.81
8,106,048.67
10,402, 381.25
34,683, 784.83
26,134, 580.75
9,827, 804.30
6,721, 530.15
5,663, 099.25
5,654, 728.24
4,841, 122.91
2,349, 513.73
li 58, 966.01
5,493, 723.42
333,482, 532.80
2,432, 349.68
691, 151.00
1,472, 671.85
622, 482.77
2,666, 657.12
3,633, 208^*46
667, 577.07
609, 747.31
489, 047.60
376, 001.32
973.02
489,
893.52
97,
220.13
11
016.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
3.00
3.00
2.76
2.76
2.76
2.76
2.00
47,033,500.00
178,313.71
13,684,012.30
1,000.00
28,154,000.00
255,000.00
Amount matured, or
called or redeemed
prior to maturity"^
$4, 919j 938.64
.25,668, 271.42
86,344, 457.68
22,387,,158.19
16,565, 359.28
7, 962' 063.05
7, 952! 516.90
9,351, 012.15
10,595,,276.58
11, 578, 201.65
14,575, 948.08
6,620, 897.61
20,046, 094.60
95,828,,638.05
9,653 723.95
78,850" 795.50
2,287, 563.53
2,400, 554.43
1,982, 597.18
1,832, 277.89
1,486, 241.45
1,345, 456.03
1,110,,923.60
989, 289.10
916, 401.21
759, 060.67
175, 261.00
2,088 ,098.25
143,538 200.00
5,450' 600.00
7,212' 400.00
8,434, 600.00
8,891,,600.00
8,861, 400.00
6,071 000.00
5,057 ,400.00
4,077^ 300.00
4,960 ,300.00
1,993; 400.00
611, 300.00
431, 700.00
849, 000.00
1,197j,000.00
345, 981.51
182 617.37
912, 500.00
480 000.00
36,86l', 500.00
25,655,300.00
1,375,200.00
32,818,500.00
20,442,000.00
7,607,900.00
67,024,500.00
23,849,400.00
1.40
1.40
1.88
1.88
1.88
2.47
2.21
2-3/4
1-1/2
25,000.00
2-3/4
1-1/2
23,483,000.00
23,483,000.00
*4,501,500.00
18,012,120,808.20
Total, December.
1954
Jan.
Amount issued-'
• 2-1/2
18,443,314,176.55
10026,560.00
191,514,000.00
1,309,306,000.00
506
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 2 6 . - - I s s u e s , m a t u r i t i e s , and redemptions of interest-bearing public debt securities, excluding
special i s s u e s , July 1953-June 1954 --Continued
Rate of
interest^
1954
Jan.
7
Treasury bills—Continued
Maturing Apr. 8, 1954:
Issued in exchange for series dated
Oct. 8, 1953
Issued for cash
Issued Oct. 15, 1953:
Redeemed in exchange for series dated
Jan. 14, 1954
Redeemable for cash
Maturing Apr. 15, 1954:
Issued in exchange for series dated
Oct. 15, 1953
Issued for cash
Issued Oct. 22, 1953:
Percent
1.314
Amount issued^
$191,514,000.00
1,308,775,000.00
$120,727,000.00
1,380,717,000.00
120,727,000.00
1,379,701,000.00
Redeeined in exchange for s t r i e s
dated Jan. 21, 1954
Redeemable for cash
Maturing Apr. 22, 1954:
Issued in exchange for series dated
Oct. 22, 19.53
Issued for cash
•
Issued Oct. 29, 1953:
Redeemed in exchange for series dated
Jan. 2 8 , 1954
Redeemable for cash
Maturing Apr. 29, 1954:
Issued in exchange for series dated
Oct. 29, 1953
Issued for cash
United States savings bonds:'
Series E-1941
Series E-1942
Series E-1943
Series E-1944
Series E-1945
Series E-1946
Series E-1947
Series E-1945
Series E-1949
Series E-1950
Series E-1951
Series E-1952 (Jan. to Apr.)
Series E-1952 (May to Dec.)
Series E-1953
Series E-1954
Unclassified sales and reden?)tions
Series F-1942
Series F-1943
Series F-1944
Series F-1945
Series F-1946
Series F-1947
Series F-194S
Series F-1949.Series F-1950
.. . . i
•
Series F-1951
Series F-1952
Unclassified sales and redeng)tions
Series G-1942
Series G-1943
Series G-1944
Series G-1945
Series G-1946
Series G-1947
Series G-1945
Series G-1949
Series G-1950
Series G-1951
Series G-1952
Unclassified sales and reden^tions
Series H-1952.
;..
Series H-1953
Series H-1954
Unclassified sales and redemptions
Series J-1952
Footnotes at end of table.
Ampunt matured, or
called or redeemed
prior to maturity*
137,489,000.00
1,363,260,000.00
137,489,000.00
1,364,472,000.00
235,278,000.00
1,264,601,000.00
235,278,000.00
1,265,035,000.00
2.90
' 2.90
' 2.95
• 2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
3.00
3.00
3.00
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
821,377.82
7,215, 127.61
8,915, 660.86
27,300,346.99
13,227,346.80
9,900, 467.05
11,712, 943.80
6,145.,853.95
6,310, 104.32
5,996, 910.56
3,914,603.67
1,424, 915.62
2,495,933.70
289,061,499.35
73,108, 950.00
34,656,959.20
2,543,486.46
1,407, 613.08
3,355,743.72
718,005.54
815, 117.60
1,062,068.39
4,416,357.64
683, 202.86
541,450.02
203, 605.24
509.21
75.
238.50
' 2,
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
3.00*
3.00
3.00
15,902,500.00
38,479,500.00
38,258,500.00
63,481.80
4,707',199.17
22,995 ,064.42
71,649 ,988.75
32,980,,735.40
14,500,,757.04
6,707,,976.40
6,737 ,869.65
7,718 ,688.20
8,656',433.00
9,511,,569.65
12,001,,617.30
•5,315 ,969.81
17,780;,207.38
93,979 ,136.10
53,376 794.36
18,720,363.50
1,428,939.05
1,696,950.01
1,105 00^.91
1,042 967.97
826,544.41
1,109,090.74
649 388.3L
862 622.94
420 046.06
72 .660.16
15,473,031.48
,700.00
126,938,
6,392 500.00
7,795 100.00
5,738 200.00
7,298^500.00
6,151,100.00
4,683,800.00
3,214,800-00
3,843 300.00
2,639 800.00
779,600.00
70,760,200.00
720,500.00
1,111,000.00
507
TABLES
TABLE 2 6 . - -Issues, nnaturities, and redemptions of i n t e r e s t - b e a r ng public debt securities, excluding
special i s s u e s , July 1953-June 1954^- Continued
Rate of
interest^
1954
Jan. 31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
United States saving bonds'—Continued
Series J-1953
Series J-1954
.
Unclassified sales and redemptions
Series K-1952.
Series K-1953
Series K-1954
Unclassified sales and redemptions
Depositary bonds, First Series
Treasury savings notes:
Series D-1954
Series A-1954
Series A-1955
.
Series A-1956
Series B-1955
Series C-1955-A
Treasury bonds. Investment Series B1975-80: Redeemed in exchange for
Treasury notes. Series EO-1958
Treasury notes, Series EO-1958
Miscellaneous
2.76
2.76
2.76
2.76
2.76
2!66
Issued for cash
Footnotes at end of table.
$6,865,367.22
7,530,768.00
8,203,500.00
10,284,500.00
21,383,500.00
22,530,000.00
1,213,000.00
1.40
1.88
1.88
1.88
2.47
2.21
2-3/4
1-1/2
Amoxint matured, or
called or redeemed
prior to maturity"^
$29,577.19
165,902.77
743,000.00
664,500.00
5,150,000.00
8,732,800.00
8,931,000.00
7,357,800.00
2,884,600.00
39,667,000.00
2,246,400.00
12,839,000.00
12,839,000.00
2,226,300.00
6,704,573,539.58
Total, January
Treasxiry bills:
Issued Nov. 5, 1953:
Redeemed in exchange for series
dated Feb. 4, 1954.
Redeemable for cash
Maturing May 6, 1954:
Issued in exchange for series dated
Nov. 5, 1953
Issued for cash
IssuedNov. 12, 1953:
Redeemed in exchange for series
dated Feb. 11, 1954
Redeemable for cash
Maturing May 13, 1954:
Issued in exchange for series dated
Nov. 12, 1953
Issued for cash
Certificates of indebtedness. Series A-1954;
Redeemed in exchange for certificates
Series A-1955
,
Redeemable for cash
Treasxiry notes. Series A-1954:
Redeemed in exchange for certificates
Series A-1955
Certificates of indebtedness. Series A-1955,
Certificates of indebtedness. Series A-1954;
Redeemed in exchange for Treasury
bonds of 1961
Treasury notes. Series A-1954:
Redeemed in exchange for Treasxiry
•bonds of 1961
,
Treasury bonds of 1952-54 (dated Jxme 26,
1944):
Redeemed in exchange for Treasury
bonds of 1961
,
Treasury bonds of 1952-55:
Redeemed in exchange for Treasury
bonds of 1961
,
Treasury bonds of 1954-56:
Redeemed in exchange for Treasury
bonds of 1961
,
Treasury bonds of 1961
Treasury bills:
Issued Nov. 19,' 1953:
Redeemed in exchange for series
dated Feb.. 18, 1954
Redeemable for cash
,
Maturing May 20, 1954:
Issued in exchange for series dated
Nov. 19, 1953
Amount issued^
6,765,352,129.90
181,576,000.00
1,319,045,000.00
181,576,000.00
1,318,742,000.00
210,040,000.00
1,290", 026,000.00
210,040,000.00
1,291,254,000.00
2-1/4
1-3/8
1-5/8
5,646,837,000.00
107,815,000.00
1,359,950,000.00
7,006,787,000.00
2-1/4
2,359,513,000.00
1-3/8
3,237,406,000.00
2.00
4,082,910,000.00
2-1/4
1,127,845,900.00
2-1/4
2-1/2
369,478,600.00
11,177,153,500.00
190,969,000.00
1,310,718,000.00
190,969,000.00
1,308,976,000.00
508
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 26. - - I s s u e s , m a t u r i t i e s , and redemptions of interest-bearing public debt s e c u r i t i e s , excludir
special i s s u e s , July 1953-June 1954^--Continued
Rate of
interest^
1954
Feb. 25
Treasury bills—Continued
Issued Nov. 27,' 1953:
Redeemed in exchange for series dated
Feb. 25, 1954
Redeemable for cash
Maturing May 27, 1954:
Issued in exchange for series dated
Nov. 27, 1953
Issued for cash
United States savings bonds:'
Series E-1941
Series E-1942
Series E-1943
Series E-1944
Series E-1945
Series E-1946
Series E-1947
Series E-1948
Series E-1949
Series E-1950
Series E-1951
Series E-1952 Jan. to Apr.....
Series E-1952 May to Dec
Series E-1953
Series E-1954
Unclassified sales and redemptions
Series F-1942
Series F-1943
Series F-1944
Series F-1945
Series F-1946
Series F-1947
Series F-1948
Series F-1949
Series F-1950
Series F-1951
'
Series F-1952
Unclassified sales and redemptions
Series G-1942
Series G-1943
Series G-1944. . .
^
'
Series G-1945
Series G-1946
Series G-1947
Series G-1948
Series G-1949
Series G-1950.
Series G-1951
Series G-1952
Unclassified sales and redemptions
Series H-1952
'
Series H-1953
Series H-1954
Unclassified sales and redemptions
Series J-1952
Series J-1953
..
Series J-1954
Unclassified sales and redemptions
Series K-1952
Series K-1953
4
Series K-1954
Unclassified sales and redemptions
Depositary bonds. First Series
Treasury savings notes:
Series D-1954
'
Series A-1954
Series A-1955
Series A-1956
Series B-1955
Series C-1955-A
Treasury bonds. Investment Series B-1975-80:
Redeemed In exchange for Treasury notes.
Series EO-1958
.
'
Treasury notes, Series EO-1958
Miscellaneous
Total, February.
Footnotes at end of table.
Amount issued-^
Amount matured, or
called or redeemed
prior to maturity"^
• $224,702,000.00
1,276,468,000.00
$224,702,000.00
1,276,024,000.00
'
'
'
'
2.90
2.90
2.95
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
3.00
3.00
3.00
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
554 191.03
4,324; 880.72
7, 021'220.38
20,157, 295.93
9,155 305.60
7, 516!845.70
8,136^ 349.25
4,528, 027.61
4,751 728.46
4,388, 281.36
2, 959,491.72
1,110, 492.81
2,131, 084.50
8 5 , 569, 516.45
273,597, 393.75
^ 2,645,125.35
1,154, 920.88
741, 362.00
1, 324,871.31
355, 341.84
537, 388.86
549, 331.80
488, 841.78
377, 896.79
.25
293,
127 072.94
262.38
• 48!
74.00
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
3.00
3.00
3.00
2.76
2.76
2.76
2.76
2.76
2.76
2.00
2,550,500.00
65,002,500.00
1,475,500.00
50,528.37
1,250,617.70
20,454,426.00
3,325,778.00
2,857,500.00
57,727,500.00
7,990,200.00
634,000.00
•14,000.00
587,286.72
355,937.60
^'63,004.27
701,000.00
697,500.00
22,500.00
1,850,000.00
° 4,156,200.00
7,092,700.00
7,970,100.00
3,238,000.00
38,741,300.00
7,259,500.00
1.40
1.88
1.88
1.88
2.47
2.21
2-3/4
1-1/2
111,853.84
792,411.93
51.4,339.18
109,403.60
513,208.58
848,677.70
041,888.10
398,780.30
891,607.90
729,913.35
885,494.54
744,354.65
820,870.40
993,112.80
36,712.50
293,791.24
923,437.80
084,569.99
568,987.48
914,549.80
092,308.47
975,093.86
919,969.99
639,566.26
546,222.18
412,235.01
120,655.20
' 5,757,573.86
152, 928,300.00
5, 531,800.00
041,900.00
689,600.00
360,600.00
860,-100.00
525,600.00
961,300.00
457,000.00
822,600.00
464,000.00
161,000.00
725,000.00
338,000.00
18,790,000.00
18,790,000.00
**4,787,*80o!oO
24,807,588,780.82
24,929,211,562.84
509
TABLES
TABLE 26. - - I s s u e s , m a t u r i t i e s , and redemptions of interest-bearing public debt s e c u r i t i e s , excluding
special i s s u e s , July 1953-June 1954-'---Continued
Rate of
interest^
Amount issued^
Amount matured, or
called or redeemed
prior t o maturity^
1954
Mar.
4
Treasury bills:
Issued Dec. 3, 1953:
Redeemed in exchange for series
dated Mar. 4, 1954
Redeemable for cash
Maturing June 3, 1954:
Issued in exchange for series dated
Dec. 3, 1953
Issued for cash
Issued Dec. 10, 1953:
Redeemed in exchange for .series
dated Mar. 11, 1954
Redeemable for cash
Maturing June 10, 1954:
Issued in exchange for series dated
Dec. 10, 1953.
Issued for cash
Treasury notes. Series A-1954:'
Redeemable for cash
Treasury bills:
Issued Dec. 17, 1953:
Redeeraed in exchange for series
dated Mar. 18, 1954
Redeemable for cash
Maturing June 17, 1954:
Issued in exchange for series dated
Dec. 17, 1953
Issued for cash
Treasury bills (tax anticipation series):
Maturing June 24, 1954:
Issued for cash
Certificates of indebtedness. Series C-1954
(tax anticipation series):
Issued July 15, 1953:
Redeemable for cash
Treasury bills:
Issued Dec. 24, 1953:
Redeemed in exchange for series
dated Mar. 25, 1954
Redeemable for cash
Maturing June 24, 1954:
Issued in exchange for series dated
Dec. 24, 1953
Issued for cash
United States savings bonds:'
Series E-1941
Series E-1942
Series E-1943
Series E-19iWSeries E-1945
Series E-1946....Series E-1947
Series E-1948
Series E-1949
Series E-1950
Series E-1951
Series E-1952 (Jan. to Apr.)
Series E-1952 (May to Dec.)
Series E-1953.
Series E-1954
Unclassified sales and redemptions..'.....
Series F-1942
Series F-1943
Series F-1944
Series F-1945
Series F-1946.
Series F-1947
Series F-1948
Series F-1949
Series F-1950
Series F-1951.
Series F-1952
Unclassified sales and redemptions
Series G-1942
Series G-1943
Footnotes at end of table.
339256 .O - 55 - 34
Percent
1.589
$186,812,000.00
1,313,450,000.00
$186,812,000.00
1,314,186,000.00
115,761,000.00
1,384,928,000.00
115,761,000.00
1,385,378,000.00
77,711,000.00
1-3/8
200,650,000.00
1,299>888,000.00
200,650,000.00
1,300,398,000.00
1,500,659,000.00
5,901,636,000.00
2-1/2
208,567,000.00
1,292,705,000.00
208,567,000.00
1,292,623,000.00
2.90
2.90
2.95
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
3.00
3.00
3.00
*2!53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.50
2.50
484, 680.69
4,631, 075.48
17,844, 307.64
9,040,,907.58
8,286,084.65
7,152, 282.55
8,092,,513.37
4,207,,025.32
4,559,,284.28
4,299,,198.52
2,932,,994.38
1,092 ,762.12
2,059',928.35
26,002 ,960.80
417,497,,856.25
,607.95
^ 40,131,
1,344 ,336.44
2,568 ,528.14
370 ,972.62
,626.64
• 316
481'
,349.88
583 766.78
448 773.30
384 432.63
265 069.07
110 103.44
40 751.20
980.50
5,112,754.43
28, 678,503.04
65, 380,229.69
95, 861,824.60
19; 634,813.75
9, 319,980.30
9, 842,597.70
• l O j 800,844.20
1 1 J 999,015.25
12,795,943.70
16,113,313.73
843,789.25
19 i 510,559.61
109, 417/325.15
11, 255,662.50
9 28,107,340.01
26, 491,154.35
2, 406,939.32
2, 389,980.32
409,035.12
186,659.44
061,695.22
534,987.11
095,199.61
002,663.18
773,328.98
165,188.54
^ 9 268,971.97
120 100,300.00
6 226,700.00.
510
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 2 6 . - - I s s u e s , m a t u r i t i e s , and redennptions of interest-bearing public debt s e c u r i t i e s , excluding
special i s s u e s , July 1953-June 1954^--Continued
Issue
Date
1954
Mar.
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
31
United States savings bonds'—Continued
Series G-1944
Series G-1945
Series G-1946
Series G-1947
Series G-194S
Series G-1949
Series G-1950
Series G-1951
Series G-1952
Unclassified sales and redemptions
Series H-1952
Series H-1953
Series H-1954
Unclassified sales and rederaptions...
Series J-1952
Series J-1953
Series J-1954
.
Unclassified sales and redemptions
Series K-1952
Series K-1953
Series K-1954
Unclassified sales and redemptions
Depositary bonds. First Series
Treasury savings notes:
Series -D-1954
Series A-1954
Series A-1955
Series A-1956
Series B-1955
Series C-1955-A
Treasury bonds. Investment Series B1975-80: Redeemed in exchange for
Treasury notes. Series EO-1958
Treasury notes. Series EO-1958
Miscellaneous
Rate of
interest^
Percent
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
*"3!66
3.00
3.00
"'2.76
2.76
2.76
"'2.* 76
2.76
2.76
*"2.'66
1
1
8
8
15
15
22
22
J 2,
Treasury bills:
Issued Dec. 31, 1953:
Redeemed in exchange for series
dated Apr. 1, 1954
Redeemable for cash
Maturing July 1, 1954:
Issued in exchange for series dated
Dec.
31, 1953
Issued for cash
Issued Jan. 7, 1954:
Redeemed in exchange for series
dated Apr. 8, 1954
Redeemable for cash
Maturing July 8, 1954:
Issued in exchange for series dated
Jan.
7, 1954
Issued for cash
Issued Jan. 14, 1954:
Redeemed in exchange for series
dated Apr. 15, 1954
Redeemable for cash.
Maturing July 15, 1954:
Issued in exchange for series dated
Jan.
14, 1954
Issued for cash
Issued Jan. 21, 1954: .
Redeemed in exchange for series
dated Apr. 22, 1954
Redeemable for cash
Maturing July 22, 1954:
Issued in exchange for series dated
Jan.
21, 1954
Issued for cash
Treasury bills (tax anticipation):
Maturing June 18, 1954:
Issued for cash
Footnotes at end of t a b l e .
$250,500.00
91,366,000.00
' 17,012,100.00
78,082.65
223,991.95
34,399,350.00
' 1,564,164.00
565,000.00
94,895,500.00
' 550,700.00
1,916,000.00
1.40
1.88
1.88
1.88
2.47
2.21
2-3/4
1-1/2
Amoxint matured,
or called or
redeemed prior
to maturity*
$5,913,200.00
4,940,100 00
6,233,900.00
6 594 000 00
4,245,900.00
3,135,400.00
2,447,400.00
1,992,300.00
627,000.00
' 18,764,600.00
838,000.00
1,669,500.00
20,000.00
284,008.85
244,037.12
36 00
5 57,699.56
884,000.00
588 500 00
10,000.00
1,670,000.00
•• 7,736,100 00
"^
33 185 100 00
20 734 100 00
9,159,400.00
190,897,700 00
44,783 800 00
24,461,000.00
24,461,000.00
2,318,800.00
Total, March
Apr.
Amount issued^
8,219,030,405.27
1.574
1.063
184,323,000.00
1,317,947,000.00
184,323,000.00
1,316,349,000.00
1.314
1.013
140 261 000 00
1 360 028 000 00
140,261,000.00
1,359,692,000.00
1.336
1.066
12 899 933 658 52
146,276,000.00
1 354.152 000 00
146,276,000.00
1,354,998,000.00
1.208
152,476,000.00
1,349,485 000 00
1.027
152,476,000.00
1,348,976,000.00
0.726
1,001,083,000.00
511
TABLES
TABLE 26. - - I s s u e s , m a t u r i t i e s , and redennptions of i n t e r e s t - b e a r i n g public debt s e c u r i t i e s , excluding
special i s s u e s , July 1953-June 1954 --Continued
Rate of
interest^
Amount issued^
Amount matured, or
called or redeemed
prior to maturity*
1954
Apr. 29
Treasury bills:
Issued Jan. 28, 1954:
Redeemed in exchange for series
dated Apr. 29, 1954
Redeemable for cash
Maturing July 29, 1954:
Issued in exchange for series dated
Jan. 28, 1954
;
Issued for cash
United States savings bonds:'
Series E-1941
30
30
Series E-1942
30
Series E-1943
30
Series E-1944
30
Series E-1945
30
Series E-1946
30
Series E-1947
,
30
Series E-1948
30
Series E-1949
30
Series E-1950
30
Series E-1951
/
.
30
Series E-1952 (Jan. to Apr.)
30
Series E-1952 (May to Dec.)
• 30
Series E-1953
30
Series E-1954
30
Unclassified sales and rederaptions
30
Series F-1942
30
Series F-1943
30
Series F-1944
30
Series F-1945.
30
Series F-1946
30
Series F-1947
30
Series F-1948
30
Series F-1949
30
Series F-1950
30
Series F-1951
30
Series F-1952
30
Unclassified sales and rederaptions
30
Series G-1942
30
Series G-1943
30
Series G-1944
30
Series G-1945
30
Series G-1946
30
Series G-1947
30
Series G-1948
30
Series G-1949
30
Series G-1950
30
Seri'es G-1951.
30
Series G-1952
30
Unclassified sales and rederaptions
30
- Series H-1952
30
Series H-1953
30
Series H-1954
30
Unclassified sales and rederaptions
•
.
30
Series J-1952
30
Series J-1953
30
Series J-1954
30
Unclassified sales and redemptions
30
Series K-1952
30
Series K-1953
30
Series K-1954
30
Unclassified sales and rederaptions
30
Depositary bonds. First Series
Treasxiry savings notes:
Series D-1954
30
Series A-1954
30
30
Series A-1955
30
Series A-1956
30
Series B-1955
30
Series C-1955-A
30
Treasxiry bonds. Investment Series B1975-80: Redeemed i,n exchange for
Treasxu-y notes. Series EO-1958
Treasury notes. Series EO-1958
Footnotes a t end of t a b l e .
$210,506,000.00
1,289,807,000.00
$210,506,000.00
1,292,026,000.00
'
'
'
'
2.90
2.90
2.95
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
3.00
3.00
3.00
'2!53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
,351.33
630,
,432.67
5,041,
13,355 ,440.76
,102.38
8,258,
10,486 ,534.60
7,355 ,813.85
7,718 ,808.68
,017.46
4,113,
4,253 ,579.72
4,006 ,913.47
2,878 ,353.16
945 ,884165
2,478 ,771.90
4,116 ,299.70
339,633 ,462.50
,467.80
' 8,933,
,627.65
1,154,
2,342 ,886.95
,605.40
281,
,469.38
440'
473 ,374.50
550 ,974.38
,296.01
359
,670.59
311
,270.51
1,362
,925.63
131
,313.00
32
,017.50
9 1,
'2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
3.00
3.00
3.00
*2!76
2.76
2.76
*2!76
2.76
2.76
'2.00
20,000.00
54,543,500.00
4,102,600.00
91,378.06
114,143.77
32,076,972.00
' 2,285,514.00
56*6oo!o6
95,189,500.00
^ 3,517,000.00
2,396,000.00
360,237.91
374,140.86
4,320.00
^ 30,281.47
690,500.00
774,500.00
65,000.00
1,490,000.00
^° 4,431,500.00
14,263,700.00
8,413,400.00
5,364,900.00
39,465,100.00
8,758,300.00
1.40
1.88
1.88
1.88
2.47
2.21
2-3/4
1-1/2
,849,791.16
,147,777.78
,890,200.75
,372,357.45
,146,792.01
,716,727.40
,845,097.63
,414,351.83
,049,208.05
,921,109.45
,745,728.45
,644,776.88
,663,489.55
,862,044.00
,220,300.00
,629,318.86
,467,913.92
,232,867.20
,583,191.23
,573,577.26
,553,088.85
,124,396.89
921,439.84
976,438.43
522,764.00
546,097.08
176,052.28
372,165.59
,909,900.00
,093,200.00
,778,900.00
,860,600.00
,611,900.00
,128,400.00
,439,500.00
,815,000.00
,838,000.00
,833,900.00
659,100.00
,079,000.00
725,000.00
,719,500.00
49,500.00
19,852,000.00
19,852.000.00
512
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 2 6 . - - I s s u e s , m a t u r i t i e s , and redemptions of interest-bearing public debt s e c u r i t i e s , excluding
special i s s u e s , July 1953-June 1954^--Continued
Rate of
interest^
Issue
Date
1954
Apr. 30
Treasury bonds. Investment Series B-1975-80:
Redeemed in exchange for Treasury notes.
Series EA-1959
30
30
Percent
2-3/4
1-1/2
6
6
Amount matured, or
called or redeemed
prior to maturity*
$1,701,000.00
$1,701,000.00
906 500.00
Total, April
May
Amount issued"'
8 139,695 312.22
' 9,125,086,275.36
Treasury bills:
Issued Feb. 4, 1954:
Redeemed in exchange for series
dated May 6, 1954
1.031
Maturing Aug. 5, 1954:
Issued in exchange for series dated
Feb. 4, 1954
0.773
13
Issued Feb. 11, 1954:
Redeemed in exchange for series
dated May 13, 1954
0.893
13
Maturing Aug. 12, 1954:
Issued in exchange for series dated
Feb. 11 1954
i..
178,834,000.00
1 321 484 000.00
178,834,000.00
1,323,374,000.00
^
17
17
17
17
17
1717
0.824
Certificates of indebtedness,^ Series B-1954:
Redeemed in exchange for certificates
Series B-1955
Treasury bonds of 1952-54 (dated June 26,
1944):
Redeemed in exchange for certificates
Series B-1955
Treasury bonds of 1952-55:
Redeemed in exchange for certificates
Series B-1955
Treasury bonds of 1954-56:
Redeemed in exchange for certificates
Series B-1955
Certificates of indebtedness. Series B-1955..
Certificates of indebtedness. Series B-1954:
Redeemed in exchange for Treasury notes, •
Series A-1959
Treasury notes, Series A-1959; issued for
226,715,000.00
1,274,134,000.00
2-5/8
1 786 Oil 000.00
2.00
1,505,058,500.00
322 221 900.00.
2-1/4
2-1/4
1-1/8
272 759,600.00
3,886,051,000.00
2 897,206,000.00
2-5/8
1-7/8
Treasury bills:
Issued Feb. 18, 1954:
Redeemed in exchange for series dated
May 20 1954
Maturing Aug. 19, 1954:
Issued in exchange for series dated
Feb. 18 1954
0.812
27
Issued Feb. 25, 1954:
Redeemed in exchange for series dated
May 27 1954
Redeemable for cash
Maturing Aug. 26, 1954:
Issued in exchange for series dated
Feb. 25 1954
2,897,206,000.00
2,205,071,000.00
1.024
20
20
27
31
31
31
31
31
31
31
31
31
31
31
31
31
United States savings bonds:'
Series E-1941
Series E-1942
Series E-1943
• Series E-1944
Series E-1945
Series E-1946
Series E-1947
Series E-1948
Series E-1949
Series E-1950
Series E-1951
Series E-1952 (Jan. to Apr.)
Series E-1952 (May to Dec.)
Footnotes at end of t a b l e .
166 657 000.00
1 333 288 000.00
166,657,000.00
1,334,770,000.00
250 245 000.00
1 250 481 000.00
0.986
0.718
6
"
^
^
8
;.
226,715,000.00
1 274 579 000.00
250,245,000.00
1,252,537,000.00
2.90
2.90
2.95
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
3.00
1,199,744.45
5,803,414.05
7,056,277.62
14,557,344.05
26,135,346.77
7,351,271.95
7,097,277.48
4,129,095.73
4,237,166.68
3,889,472.28
2 759,040.57
^^ 26,885.38
4,509,813.65
4 110 083.16
22 528 804.18
48,088,157.50
56,346,316.14
16,629,179.93
8,117 911.10
8 087 300.85
9,286,150.65
10,324,584.83
11,059,587.72
13 019 354.96
5,822,352.89
15,518,459.15
513
TABLES
TABLE 26. - - I s s u e s , nnaturities, and redennptions of interest-bearing public debt s e c u r i t i e s , excluding
special i s s u e s , July 1953-Juhe 1954 --Continued
Rate of
interest^
May 31
31
31
31
31
31
31
31
31
31
31
31
31
United States savings bonds'—Continued
Series E-1953
Series E-1954
Unclassified sales and rederaptions...
Series F-1942
Series F-1943
Series F-1944
Series F-1945
Series F-1946
Series F-l<547
Series F-1948
Series F-1949
Series F-1950
Series F-1951
Series F-1952
Unclassified sales and redemptions...
Series- G-1942
Series G-l<543
,
Series G-1944
Series G-1945
Series G-1946
Series G-1947
Series G-1948.
Series G-1949
Series G-1950
Series G-1951.
Series G-1952
Unclassified sales and redemptions...
Series H-1952
Series H-1953
Series H-1954
Unclassified sales and redemptions...
Series J-1952
Series J-1953
Series J-1954
Unclassified sales and redemptions...
Series K-1952
Series K-1953.,'....
Series K-1954
Unclassified sales and redemptions...
Depositary bonds. First Series
Treasury savings notes:
Series D-l'?54.Series A-1954
Series A-1955
Series A-1956
Series B-1955
Series C-1955-A
•
Treasury bonds. Investment Series B1975-.B0: Redeeraed in exchange for
Treasury notes. Series EO-1958
Treasury notes, Series EO-1958
Treasury bonds. Investment Series B1975-80: Redeemed in exchange for
Treasury notes. Series EA-1959
Treasury notes. Series EA-1959
Miscellaneous
Total, May.,
June 1
3
Certificates of indebtedness. Series B-1954.
Treasury bills:Issued Mar. 4 , 1954:
Redeemed in exchange for series
dated June 3, 1954
Redeemable for cash
Maturing Sept. 2 , 1954:
Issued in exchange for series
dated Mar. 4, 1954
Issued for cash
Issued Mar. 11, 1954:
Redeemed In exchange for series
dated June 10, 1954
Redeemable for cash
Footnotes at end of table.
Amoxmt issued^
Amount matured, or
called or redeemed
prior to maturity*
Percent
3.00
3.00
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
$5,971, 627.75
290,341, 237.50
7,772, 156,25
1,206, 273.45
696; 941.43
935, 592.55
1,219, 186.00
455, 706.21
436, 880.48
353, 002.26
337, 503.95
420, 521.11
118, 105.39
211.07
201.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
3.00
3.00
3.00
2.76
2.76
2.76
2.76
2.76
2.76
60,682,500.00
• 7,532,000.00
^
229,031.65
129,029.95
25,962,624.00
1,144,232.00
^^ 54,'000.00
85,255,500.00
^ 2,180,000.00
1,477,000.00
288,726.95
489,660.44
173,096.30
820,000.00
1,012,500.00
29,500.00
6,300,000.00
° 12,075,100.00
121,266,500.00
1,974,800.00
968,500.00
18,130,300.00
2,040,100.00
1.88
2.47
2.21
2-3/4
1-1/2
2-3/4
1-1/2
$58,327, 873.00
45,763, 987.50
^ 3,514,576.09
21,213, 737.52
1,711, 824.01
1,300, 458.35
1,669, 020.54
1,274, 677.95
'^01,874.94
1,346, 490.24
833, 101.89
1,150, 085.05
499, 676.22
183, 748.16
931, 870.60
93,788, 200.00
5,506, 800.00
5,732, 300.00
5,836, 800.00
6,113, 600,00
5,191, 800.00
3,295, 400.00
3,148, 400.00
2,680,000.00
1,841, 300.00
626, 300.00
1,771, 200.00
637, 500.00
2,175, 500.00
27, 000.00
16,000.00
11,455,000.00
11,455,000.00
653,500.00
15,571,144,022.26
13,464,137,476.63
174,956,000,00
275,843,000.00
1,225,155,000.00
275,843,000.00
1,224,659,000.00
93,716,000.00
1,407,423,000.00
514
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 2 6 , - - I s s u e s , nnaturities, ind redemptions of interest-bearing public debt securities, e-xcluding
special i s s u e s , July 1953-June 1954 --Continued.
Rate of
interest^
1954
June 10
Treasury bills—Continued
Maturing Sept. 9, 1954:
Issued in exchange for series dated
Mar, 11, 1954
Issued for cash
Treasury bonds:
1952-54 (dated June 26, 1944)
1952-55
1954-56
•
Treasury bills:
Issued Mar, 18, 1954:
Redeemed in exchange for series
dated June 17, 1954
Redeemable for cash
Maturing Sept, 16, 1954:
Issued in exchange for series dated
Mar, 18, 1954
Issued for cash
Treasury bills (tax anticipation series):
Issued Apr. 27, 1954:
Redeemable for cash
Issued Mar. 22, 1954:
Redeemable for cash
Treasury bills:
Issued Mar. 25, 1954:
Redeemed in exchange for series
dated June 24, 1954.
Redeemable for cash
Maturing Sept. 23, 1954:
Issued in exchange for series dated
Mar, 25, 1954
Issued for cash
United States savings bonds:^^Series E-1941
Series E-1942
Series E-1943
Series E-1944
Series E-1945
Series E-1946
Series E-1947
Series E-1948
Series E-1949
Series E-1950
Series E-1951
Series E-1952 Jan. to Apr
Series E-1952 May to Dec
Series E-1953
^ ...
Series E-1954
Unclassified sales and rederaptions
Series F-1942
Series F-1943
Series F-1944
Series F-1945
Series F-1946
Series F-1947
'
Series F-1948
Series F-1949
Series F-1950
Series F-1951
Series F-1952
Unclassified sales and reden^itions
Series G-1942
Series G-1943
•
Series G-1944
Series G-1945
Series G-1946
Series G-1947
Series G-1948
Series G-1949
Series G-1950
Series G-1951
Series G-1952
Unclassified sales and redemptions
Series H-1952
Series H-1953
Series H-1954
Footnotes at end of table.
Percent
0.617
Amount issued
Amount matured, or
called or redeemed
prior to maturity*
$93,716,000,00
1,406,474,000.00
2.00
2-1/4
2-1/4
.$237,491,000.00
50,712,500.00
38,453,650.00
180,272,000.00
1,320,776,000.00
180,272,000.00
1,320,331,000.00
0.726
1,001,083,000.00
0.956
1,500,659,000.00
38,460,000.00
1,462,730,000.00
38,460,000.00
1,462,513,000,00
' 2.90
' 2,90
> 2.95
' 2,90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
3.00
3.00
3.00
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.53
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2,50
2,50
•3.00
3.00
3.00
3,133 ,102.51
7,348 ,919.21
7,402, ,023.47
33,704' ,908,23
25,357 ,289,23
9,572 ,206.10
9,188 ,346,48
5,497 ,808,63
5,473, ,876,20
4,636' ,593.15
3,135 ,952.14
l i 29', 604.38
5,541, ,472.85
4,173, 963.55
313,492 ,931.25
' 2,909 ,837.76
1,547, 917.00
632, ,579.96
2,791, 510.39
3,581, 664.21
636, 592.62
583, 726.73
505, 675.69
400, 461.86
568, 429.22
112, 539.25
695.02
867.50
500.00
500.00
65,043,500.00
3,943 467.81
19,974 ,914.07
41,519 ,817.82
57,718 143,55
16,077 ,265,85
7,308 ,801.20
7,246 399.30
8,197 ,970.70
9,496 942.55
10,108 748.25
12,005 ,720.52
5,393 ,898,85
13,995 591,10
47,860 ,389,95
51,354 ,787.50
93,611 772.68
20,206 721.70
1,785' 097.78
1,612 ,172.70
1,251 190.33
880 ,552.89
844 ,757.70
714 ,680.49
820 ,423.38
658 ,936.38
,996.31
807'
,500.46
191
,371.95
3,509
,400.00
89,323
,100.00
4,600
,400.00
5,811 900.00
5,406',800.00
5,699 ,500.00
4,820, 500.00
2,904',400.00
2,729, 200.00
2,183',900.00
1,532,,400.00
419, 800.00
17,043, 000,00
752,,000.00
2,325, 500.00
7,
TABLES
515
-Issues^ nnaturities, and redennptions of interest-bearing public debt securities, excluding
special issues, July 1953-June 1954^--Continued
Date
1954
June 30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
Rate of
interest^
Issue
United States savings
Unclassified sales
Series J-1952
Series J-1953
Series J-1954
Unclassified sales
Series K-1952
Series K-1953
Series K-1954
Unclassified sales
bonds^^—Continued
and reden^Jtions
and redemptions
*2!76"
2.76
2.76
and redemptions
'2!66"
Treasxiry bonds. Investment Series B1975-80: Redeemed in exchange for
Treasury notes. Series EA-1959
Treasury notes, Series EA-1959
Amount matxired, or
called or redeemed
prior to maturity*
Percent
2.76
2.76
2.76
Treasury savings notes:
Series A-1954
Series A-1955
•Series A-1956
Series B-1955
Series C-1955-A
Amount issued^
;
^ $1,516,000.00
200,141.74
196,309.97
29,428,866.00
^ 100,898.00
10,500.00
86,854,000.00
^ 3,018,500.00
5,045,000.00
$137,000,00
611,921,88
717,909.84
117,000.00
28,850.53
708,500.00
857,500.00
79,500.00
544,000.00
1° 77,171,500.00
15,956,900.00
5,175,200.00
150,455,100.00
15,751,500.00
1.88
1.88
1.88
2.47
2.21
1-1/2
11 3,000,00
2-3/4
1-1/2
37,240,000,00
37,240 000.00
2,211,100.00
6,668,153,239.98
Total
fiscal year 1954
9,900,151,466.02
146,092,750,514.44
142,834,139,800,58
I On basis of daily Treasury statements, supplemented by special statements on public debt issues,
redemptions and exchanges by the Bureau of the Public Debt,
^ For Treasury bills, average rates on bank discount basis are shown; for United States savings bonds,
approximate yield to maturity is shown.
^ For United States sa^vings bonds of Series E and F not currently on sale amounts represent accrued discoxmt plus issue price of bonds in adjustment cases; for Series E, F, and J cxurrently on sale, araounts
represent issue price plus accrued discount; and for Series G, H, and K, amounts represent issue price at
par.
* For United States savings bonds of Series E, F, and J, amounts represent cxirrent redemption value (issue
price plus accrued discoxmt); and for Series G, H, and K, amoimts represent rederaption value at par.
' Includes exchanges of matured bonds of Series E for bonds of Series K that are not classified by yearly
series.
^ Approximate yield if held to end of 10-year extension period.
" If held from issue date to end of 10-year extension period, bonds of this series dated January 1, 1942,
^
throxigh April 1, 1942, yield approximately 2.9 percent and those dated May 1, 1942, throxigh Deceraber 1, 1942,
yield approximately 2.95 percent.
^ Matured bonds of this series yield approximately 2.95 percent if held from issue date to end of lO-year
extension period, and unmatvired bonds of this series yield approximately 2.9 percent if held to maturity.
^ Deduct: Represents excess of amounts transferred from unclassified sales and redemptions to sales and
rederaptions of designated series over amount received as xmclassified sales and redemptions.
1° Includes secxirities of certain issue months which have matured.
II Deduct.
516
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE" 26. - - I s s u e s , m a t u r i t i e s , and r e d e m p t i o n s of i n t e r e s t - b e a r i n g public debt s e c u r i t i e s ,
special i s s u e s , July 1953 - June 1954l--Continued
excluding
1^ Includes exchanges of matured bonds of Series E for bonds of Series K t h a t are not c l a s s i f i e d by yearly
s e r i e s , and excludes the following amounts'representing issues and retirements x5)on r e i s s u e which were i n cluded in the Stateraent of the Public Debt appearing in the Daily Statement of the United States Treasxiry
June 30, 1954:
Series
Issues upon
reissue
Retireraents
upon reissue
$6,243.75
12,000.00
18,731.25
23,756,25
19,050.00
15,881,25
9,843,75
6,581.25
6,900.00
5,306.25
6,675.00
E-1941
E-1942
E-1943
E-1944
E-1945
E-1946
E-1947
E-1948
E-1949
E-1950
E-1951
E-1952 (Jan. to
Apr.)
E-1952 (May to
Dec.)
E-1953
E-1954
Unclassified
5,962.50
5,025.00
2,250.00
17,676,382.50
Total Series E
17,823,157,50'
G-1942
G-1943
G 1944
G-1945
G-1946
G-1947
G-1948..
G-1949
G-1950..
G-1951..
G-1952
2,568.75
$17,823,157.50
17,823,157.50
H-1952
H-1953..
$12,960,900,00
'*'2,8i6,*538!56
Total Series F.. ..
2,810,538.50
2,810,538.50
12,960,900.00
12,960,900.00
51,000.00
156,500.00
153,500.00
361,000.00
Unclassified
Total Series H...
Retirements
upon reissue
$570,700.00
1,212,100,00
1,689,700.00
1,889,400.00
1,610,000.00
1,200,500.00
2,431,200.00
798,800.00
1,039,800.00
432,700.00
86,000.00
Unclassified
F-1944
F 1945
F-1949
F-1951
Unclassified
:
Total Series G...
18,870.00
18,500,00
18,500,00
888.00
7,400.00
2,220.00
2,744,160.50
F-1942
Issues upon
reissue
Series
361,000.00
361,000.00
J-Unelassified...
675,450.00
675,450.00
Total Series J...
675,450.00
675 450.00
K-1952
K-1953
K-1954
Unclassified
42,000.00
119,500.00
61,500.00
Total Series K...
223,000.00
223,000.00
Total U. S.
savings bonds..
34,854,046.00
34,854,046.00
223,000.00
517
TABLES
TABLE 27. --Certificates of indebtedness, special s e r i e s , issues and redemptions, fiscal year 1954
[in millions of dollars. On basis of Public Debt accounts, see "Bases of Tables"]
Date
Issues
Redemptions
Outsta:nding., end
of day
Date
22
Redemptions
Outstanding, end
of day
1954
1954
15
18
19
20
21 .
Issues
22
147
154
101
101
17
23
22
169323
424
323
306
283
80
200
3
26
27
March
15.
16
17
203
3
134
190
134
56
190
TABLE 28. - - P u b l i c debt r e c e i p t s and expendit u r e s by s e c u r i t y c l a s s e s , monthly for fiscal year 1954 and totals for 1953 and 1954
»—'
[On basis of daily Treasxiry statements, see "Bases of Tables"]
00
Fiscal year 1954
Receipts (issues)
July 1953
August 1953
September 1953
October 1953
November 1953
December 1953
January 1954
Public issues.:
Marketable obligations:
$5,901,636,000.00
6,762,009,000.00 $5,267,264,000.00 $5,281,229,000.00 $6,603,704,000.00 $5,239,547,000.00 $6,314,111,000.00
2,239,262,000.00
10,388,550.00
3,194,250.00
Treasury bonds
Subtotal
Exchanges:
Certificates of indebtedness
Treasury bills
Treasury bonds
Treasury notes
6,603,704,000.00 • 7,478,809,000.00 6,314,111,000.00
12,674,033,550.00
!
Subtotal
Total marketable obligations
Nonmsirketable obligations:
Adjusted service bonds
5,270,458,250.00
5,281,229,000.00
375,000.00
740,499,000,00
739,900.00
30,109,000.00
2,781,117,000.00
736,693,000.00
4,713,523,000.00
719,999,000.00
16,720,000.00
900,131,000.00
37,333,000.00
3,085,337,000.00
771,722,900.00
3,555,143,000.00
13,445,756,450.00
$424,000,000.00
5,317,983,000.00
5,741,983,000.00
866,000.00
763,99'7,000.00
685,008,000.00
158,327,000.00
9,000.00
1,190,920,000.00
1,748,238,000.00
13,220,000.00 .8,198,739,000.00
8,518,859,000.00
1,075,178,000.00
778,083,000.00 11,137,906,000.00
697,848,000.00
8,825,601,250.00 13,800,088,000.00
7,678,882,000.00
8,256,892,000.00 17,.452,017,000.00
s
X
H
O
H
X
6,439,831,000.00
12,840,000.00
vn
vn
o
>
2,500.00
2,500.00
1,100.00
1,800.00
3,600.00
4,100.00
250,00
X
4,087,000.00
1,272,000.00
20,040,000.00
532,000.00
559,000.00
a 35,87
255,000.00
1,213,000,00
O
60,000,000.00
12,000,000.00
471,581,700.00
***478]75ii266!66
952,036,900.00
686,527,300.00
1,900,000.00
25,000.00
402,193,677.61
124,305,057.36
674,741.55
371,218,010.48
86,949,018.07
850,903.90
368,102,436.86
87,811,787.46
813,598.35
383,806,128.17
83,006,572.08
1,728,896.40
368,473,215.92
98,872,018,96
1,559,151.25
423,157,207.68
136,699,100.52
1,454,704.25
561,229,600.70
126,224,653.38
2,414,726.80
1,002,844,676.52
939,043,632.45
1,428,805,822.67
1,155,602,696.65
471,366,950.26
621,595,112.45
703,082,230.88
74,500.00
Excess profits tax refund bonds
Special notes of the United States:
Treasury savings notes
United States savings bonds:
Issue price
United States savings stamps
Subtotal
Exchanges:
Treasury bonds, investment series
Series .0 and K savings bonds
Subtotal
Total nonmarketable obligations
Total public issues
H
X
m
21,000.00
147,000.00
47,000.00
123,500.00
70,000.00
64,500.00
21,000.00
147,000.00
47,000.00
123,500.00
70,000.00
64,500.00
74,500.00
1,002,865,676.52
939,190,632.45
1,428,852,822.67
1,155,726,196.65
471,436,950.26
621,659,612.45
703,156,730.88
14,448,622,126.52 9,764,791,882.45. 15,228,940,822.67
8,834,608,196.65
8,728,328,950.26 18,073,676,612.45
7,142,987,730.88
c
Fiscal year 1954
Receipts (issxies)
February 1954
March 1954
April 1954
May 1954
June 1954
Total fiscal year Total fiscal year
1953
1954
Public issues:
Marketable obligations:
Certificates of indebtedness, special series..
Treasury bills
Treasxiry bonds
$5,194,996,000.00
$5,901,636,000.00
614,000,000.00 $2,550,000,000.00
$190,000,000.00
6,793,244,000.00 $7,673,124,000.00 $5,184,815,000.00 $5,413,977,000.00 71,046,003,000.00 71,643,561,000.00
2,252,844,800.00 5,419,998,875.00
2,205,071,000.00
. 2,205,071,000.00
5,194,996,000.00 6,983,244,000.00 7,673,124,000.00 7,389,886,000.00 5,413,977,000.00 82,019,554,800.00 79,613,559,875.00
Subtotal
Exchanges:
7,005,573,000.00
807,287,000.00
10,930,116,500.00
18,790,000.00
Treasury bills
Treasxiry notes
Subtotal
18,761,766,500.00
Total marketable obligations
23,956,762,500.00
Nonmarketable obligations:
Ad jxisted service bonds....;
Armed forces leave bonds
1,194,000.00
711,790,000.00
245,908', 500.00
24,461,000.00
3,882,764,000.00
833,842,000.00
822,451,000.00
1,028,500.00
100,000.00
21,553,000.00 2,908,609,000.00
983,353,500.00
856,423,500.00
3,233,000.00 18,405,374,000.00
588,291,000.00 9,500,908,000.00
12,926,131,400.00
37,305,000.00 14,546,623,000.00
7,613,924,000.00
628,829,000.00 55,379,036,400.00 37,506,500,925.00
7,966,597,500.00 8,529,547,500.00 15,003,810,000.00
6,042,806,000.00 137,398,591,200.00 117,120,060,800.00
800.00
4,300.00
1,650.00
850.00
3,550.00
27,000.00
634,000.00
1,916,000.00
2,396,000.00
1,477,000.00
5,045,000.00
39,426.000.00
^ 35.87
39,000,000.00
5,000,000.00
33,000,000.00
'.
Special notes of the United States:
International Monetary Fund series
,
149,000,000.00
2,590,822,100.00
Treasury savings notes
United States savings bonds:
20,816,424,000.00
4,191,192,000.00
1,036,702,925.00
111,462,182,000.00
20,900.00
^ 725.00
102,524,000.00
238.91
601,778,926.30
85,641,952.47
1,743,475.35
511,230,774.45
82,888,774.91
1,885,775.40
463,771,151.00
• 98,781,371.26
1,187,806.40
522,691,636.49 5,492,761,246.31 4,559,843,764.92
135,704,149.49 1,233,546,072.63 1,228,577,212.68
17,108,877.30
17,792,549.35
1,065,620.40
604,134,374.57
730,084,654.12
603,402,974.76
598,218,178.66
664,509,956.38
168,000.00
Subtotal
tn
GO
118,000,000.00
35,635,000.00
4,224,461,900.00
515,108,480.65
86,661,616.67
1,729,477.25
Accrued discount
United States savings stamps
>
CO
187,000.00
51,500.66
49,500.00
61,500.00
9,522,691,260.37 10,286,854,363.04
Exchanges:
168,000.00
Subtotal
Total nonmarketable obligations
Total public issues
Footnotes at end of table.
.
•
187,000.00
51,500.00
49,500.00
61,500.00
604,302,374.57
730,271,654.12
603,454,474.76
598,267,678.66
664,571,456.38
24,561,064,874.57
8,696,869,154.12 9,133,001,974.76 15,602,077,678.66
1,065,000.00
131,724,000.00
2,265,000.00
1,065,000.00
133,989,000.00
9,523,756,260.37 10,420,843,363.04
6,-707,377,456.38 146,922,347,460.37 127,540,904,163.04
Ul
t—'
sO
TABLE 28, - - P u b l i c debt r e c e i p t s and expenditures by s e c u r i t y c l a s s e s , monthly for fiscal year 1954 and totals for 1953 and 1954--Continued
O
Fiscal year 1954
Receipts and expenditures
July 1953
August 1953
September 1953-
October 1953
November 1953
December- 1953
January 1954
RECEIPTS' (ISSUES)
Special issues:
AdjxLsted service certificate fund (certificates),..
Civil service retirement fund (certificates)
'
Civil service retirement fxmd (notes)
Farm tenant mortgage insurance fxmd (notes)
Federal home loan banks (notes)
Federal Housing Adininistration fxmds (notes)
Federal old-age and survivors insurance trxist
fund (certificates)
Federal Savings and Loan Insxirance Corporation
(notes)
Foreign service retirement fund (certificates)
Foreign service retirement fxmd (notes)Government life insurance fund (certificates)
National service life insurance fund (notes)
Unemployment trust fxmd (certificates)
"Veterans special term insurance fund (certificates)
Total special issues
$39,567,000.00
$72,816,000.00
$33,952,000.00
$34,245,000.00
$35,529,000.00
$37,872,000.00
$4,693,000.00
38,419,000.00
X
vn
7,500,000.00
6,700,000.00
65,000,000.00
,
700,000.00
86,700,000.00
63,400,000.00
71,705,000.00
39,400,000.00
26,000,000.00
86,000.00
1,000,000.00
57,000.00
2,000,000.00
68,000.00
1,000,000.00
51,000.00
3,000,000.00
86,000.00
2,500,000.00
35,000.00
48,099,000.00
29,000,000.00
10,000,000.00
94,109,000.00
245,000,000.00
100,000.00
203,452,000.00
486,464,000.00
00
54,088,000.00
150,000.00
13,979,000.00
20,000,000.00
. 150,000.00
160,952,000.00
124,042,000.00
14,652,074,126.52 10,251,255,882.45 15,389,892,822.67
Subtotal
H
X
vn
8,958,650,196.65
m
o
90,359,000.00
124,000,000.00
150,000.00
52,911,000.00
98,000,000.00
150,000.00
12 892 000 00
200 000 00
X
277,089,000.00
444,419,000.00
215 539 000 00
m
.H
9,005,417,950.26 18,518,095,612.45
7,358,526 730 88
>
EXPENDITURES (RETIREMENTS)
Public issues:
Marketable obligations:
Certificates of indebtedness
Certificates of indebtedness, special series...
Treasury bills
Treasxiry bonds
Treasury notes
Other
3
O
186,700,000.00
1,000,000.00
39,000.00
61 500 000 00
93 600 000 00
1 700 000 00
o
4,040,000.00
85,689,000.00
5,981,000.00
1,428,000.00
1,179,000.00
503,000.00
6,308,421,000.00
8,164,000.00
32,500.00
15,167,818.25
5,265,789,000.00
-5,116,900.00
63,600.00
690,318.50
5,970,051,000.00
151,451,600.00
21,000.00
292,141.75
6,609,570,000.00
55,416,550.00
158,400.00
239,540.50
5,233,449,000.00
17,938,800.00
500,017,000.00
158.264.00
6,306,094,000.00
17,688,900.00
112,245,700.00
133,622.50
569 000.00
424,000,000.00
5,339,829 000 00
1 ? A/.Q POO 00
3,653 900.00
9 114 723 50
6,335,825,318.25
5,357,348,818.50
6,127,796,741.75-
6,666,812,490.50
5,752,742,064.00
6,436,665,222.50
5 789,615 823 50
H
X
vn
g
G
Fiscal year 1954
Total fiscal
year 1954
Receipts and expenditxires
February 1954
• April 1954
May 1954
Total fiscal
year 1953
RECEIPTS (ISSUES)
Special issues:
Adjxisted service certificate fund (certificates)..
Civil service retirement fund (certificates)
Civil service retirement fimd (notes)
Farm tenant mortgage insxirance fund (notes)
Federal Deposit Insxirance Corporation (notes)
Federal home loan banks (notes)
Federal Housing Administration funds (notes)
Federal old-age and survivors insurance trust
fund (certificates)
Federal Savings and Loan Insurance Corporation
(notes)
Foreign service retirement fund (certificates)
.
Foreign service retirement fxmd (notes)
Government life insurance fxmd (certificates)
National service life insurance fxmd (notes)......
Railroad retirement accoxmt (notes)
Unemployment trust fund (certificates)
•Veterans special term insxirance fxmd (certificates)
Total special issues.
Total public debt receipts.-.
$33,361,000.00,
$33,800,000.00 $2,295,454,000.00
$4,693,000.00
2,723,541,000.00
10,400, 000.00
1,000, 000.00
8,000. 000.00
154,400,000.00
195,700,000.00
54,950,000.00
$5,163,000.00
846,488,000.00
750,666,000.00
1,000,000.00
147,000,000.00
57,100,000.00
47,900,000.00
229,000,000.00 17,378,405,000.00 18,531,110,000.00
16,835,000,000.00
$34,616,000.00
$33,910,000.00
5,000,000.00
59,700,000.00
4,000,000.00
24,200,000.00
7,850,000.00
5,000,000.00
3,500,000.00
26,900,000.00
38,800,000.00
165,000,000.00
246,000,000.00
1,000,000.00
57,000.00
2,000,000.00
73,000.00
1,000,000.00
66,000.00
2,000,000.00
41,000.00
32,350; 000.00
6,338, 000.00
48,850,000.00
6,997,000.00
84,123,000.00
62,404,000.00
11,450,000.00
89,590,000.00
89,000,000.00
300,000.00
1,234,000,,000.00
2,610,000,,000.00
234,448, 000.00
8,024,000,,000.00
3,325,,000.00
1,234,000,000.00
2,620,000,000.00
848,452,000.00
8,629,000,000.00
5,425,000.00
18,340,000.00
2,855,000.00
779,400.00
1,299,000,000.00
1,217,535,000.00
873,659,000.00
9,233,000,000.00
800,000.00
456,531,000.00 31,837,720,000.00 35,057,118,000.00
31,336,285,400.00
7,000,000.00
5,800,000.00
300,000.00
300,000.00
300,000.00
227,596,000.00
295,737,000.00
327,577,000.00
24,788,660,874.57
8,992,606,154.12
9,460,578,974.76 16,058,608,678.66 38,545,097,456.38 181,979,465,460.37 158,877,189,563.04
93,329,000.00
5,714,039,000.00
190,000,000.00
5,300,651,000.00
7,533,750.00
63,9.72,600.00
366,155.25
10,37^,000.00
168,518,000.00
6,671,171,000.00 5,189,028,000.00
4,476,850.00
2,775,300.00
3,089,000.00
7,073,100.00
158,397.75
. 159,205.50
7,884,075,000.00
202,225,750.00
1,194,500.00
134,053.00
6,271,321,000.00
614,000,000.00
71,262p^08,000.00
496,078,500.00
692,693,100.00
27,217,340.00
1,852,785,700.00
2,550,000,000.00
69,188,484,000.00
340,555,600.00
1,905,450.00
18/730,266.50
,256,147,303.00
79,363y4l7,940j00
73,952,461,016.50
EXPENDITURES (RETIREMENTS)
Public issues:
Marketable obligations:
Certificates of indebtedness
Certificates of indebtedness, special series..
Treasxiry bills
Treasury bonds
Treasury notes
Other
Subtotal.-
5,183,980,000.00
10,840,900.00
1,171,800.00
603,099.50
5,289,924,799.50 11, 276,562,505.25
185,667,000.00
6,868,547,155.50
5,205,429,697.75
>
DO
r
vn
TABLE 28. - - P u b l i c debt r e c e i p t s and expenditures by s e c u r i t y c l a s s e s , monthly for fiscal y e a r 1954 and totals for 1953 and 1954---Continued
CSJ
Fiscal year 1954
Expenditures (retirements)
July 1953
Public issues—Continued
Marketable obligations—Continued
Exchanges:
Certificates of indebtedness.
Treasury bills
Treasury bonds
Treasury notes
Subtotal
Total marketable obligations.
Nonmarketable obligations:
Adjusted service bonds
Armed forces leave bonds
Depositary bonds
Excess profits tax refund bonds
Special notes of the United States:
International Monetary Fund series.
Treasxiry bonds, investment series
Treasury tax and savings notes:
Cash rederaptions
Received for taxes
United States savings bonds:
Matured:
Issue price
Accrued discoxmt
Unmatured:
Issue price
Accrued discoxmt
Unclassified^
United States savings stamps
Subtotal
Exchanges:
Treasury bonds, investment series.
Series E savings bonds:
Issue price
Accrued discount
Series F and G savings bonds:
Issue price
Accrued discoxmt
Subtotal
Total nonmarketable obligations.
Total public issues
$740,499,000.00
375,000.00
August 1953
$2,781,117,000.00
736,693,000.00
September 1953
$7,109,000.00
719,999,000.00
7,686,824,000.00
October 1953
$900,131,000.00
32,176,000.00
November 1953
December 1953
$763,997,000.00 $1,190,920,000.00
97,000.00
1,485,000.00
,923,381,000.00
January 1954
$685,008,000.00
1,000.00
740,874,000.00
3,517,810,000.001 8,413,932,000.00
932,307,000.00
765,482,000.00 11,114,398,000.00
685,009,000.00
7,076,699,318.25
8,875,158,818.50 14,541,728,741.75
7,599,119,490.50
6,518,224,064.00 17,551,063,222.50
6,474,624,823.50
46,800.00
1,391,500.00
6,558,000.00
10,325.13
47,000.00
1,145,925.00|
3,971,000.00
8,208.79
52,900.00
1,319,800.00
2,728,000.00
12,999.81
39,700.00
1,288,550.00
5,101,000.00
60,880.25
41,825.00
940,075.00
2,535,000.00
9,272.64
50,350.00
1,179,475.00
36,861,500.00
9,898.96
43,325.00
1,069,450.00
5,150,000.00
7,127.96
26,768,000.00
11,000,000.001
346,000.00
11,000,000.00
175,000.00
6,046,000.00
319,000.00
680,000.00
106,000.00
s
o
H
X
tn
00
185,232,975.00
33,947,500.00
194,213,425.00
13,918,900.00
111,232,875.00
178,848,650.00
52,762,325.00
15,522,850.00
42,344,050.00
12,994,775.00
67,013,975.00
99,884,175.00
60,485,300.00
12,646,975.00
vn
o
X
vn
60,762,491.00
10,166,212.44
165,272,288.25
34,839,012.89
145,906,390.25
32,781,211.26
198,785,064.00
49,277,750.42
125,993,196.75
32,767,749.91
162,359,196.00
34,455,003.70
257,695,576.25
37,705,307.34
O
163,428,575.50
6,349,267.26
299,992,229.17
1,955,441.10
371,522,935.75
22,800,873.60
114,254,389.30
1,605,818.85
364,204,681.50
23,002,326.32
52,259,002.96
1,257,617.05
343,245,607.50
20,117,300.26
122,557,925.42
1,305,019.10
271,974,550.00
14,797,749.92
^ 7,170,513.37
1,030,437.75
289,700,239.75
15,739,268.93
12,175,521.67
1,161,202.30
255,876,941.25
13,072,066.20
139,515,678.86
996,911.70
796,609,316.60
706,436,998.83
820,263,448.23
570,994,121.11
498,577,168.60
721,269,806.31
784,370,659.56
H
X
30,109,000.00
37,333,000.00
104,927,000.00
142,871,000.00
12,601,000.00
23,508,000.00
12,839,000.00
00
15,750.00
5,250.00
110,250.00
36,750.00
35,250.00
11,750.00
92,625.00
30,875.00
52,500.00
17,500.00
48,375.00
16,125.00
55,875.00
18,625.00
X
^
37,480,000.00
104,974,000.00
142,994,500.00
12,913,500.00
713,988,621.11
12,671,000.00
511,248,168.60
23,572,500.00
925,237,448.23
743,916,998.83
',619,075,817.33 15,466,966,189.98
744,842,306.31
797,284,159.56
7,'271,908,983.06
689,694.00
50,206.00
30,869,900.00
827,479,216.60
7,904,178,534.85
,313,108,111.61
7,029,472,232.60 18,295,905,528.81
H
>
H
X
vn
>
G
Fiscal year 1954
Expenditures (retirements)
February 1954
Public issues—Continued
Marketable obligations—Continued
Exchanges:
Certificates of indebtedness
Treasxiry bonds
Treasury notes
Subtotal
'
Total marketable obligations
March 1954
$7,970,525,000.00
807,287,000.00
5,393,477,500.00
4,571,687,000.00
$35,805,000.00
711,790,000.00
185,628,500.00
25,669,000.00
18,742,976,500.00
958,892,500.00
24,032,901,299.50 12,235,455,005.25
April 1954
May 1954
$833,842,000.00
1,028,500.00
$4,683,169,000.00
822,451,000,00
2,096,833,000.00
834,870,500.00
7,602,453,000.00
7,703,417,655.50 12,807,882,697.75
June 1954
Total fiscal
year 1954
Total fiscal
year 1953
$68,000.00 $15,477,793,000.00 $31,530,619,000.00
9,500,908,000.00
588,291,000.00
4 191 192 000 00
579,324,000.00
3,233,000.00 15,401,158,500.00
14,520,737,000.00
591,592,000.00
54,900,596,500.00
36 301 135 000 00
8,847,739,303.00 134,264,014,440.00 110 253 596 016 50
Nonmarketable obligations:
39,950.00
1,269,550.00
1,850,000.00
9,311.45
50,266.00
1,283,825.00
1,670,000.00
22,595.20
37,884.00
1,206,325.00
1,490,000.00
25,218.84
32,800.00
1,049,050.00
6,300,000,00
11,706.82
47,850.00
818,150.00
544,000.00
9,048.62
530,650.00
13,961,675.00
74,758,500.00
196,594.47
606 100
23 705 250
29 Oil 000
249 618
. 330,000.00
155,000.00
18,000,000.00
41,000,00
247,000.00
148,000.00
40,000,000.00
35,361,000.00
90 000 000 00
4 908 000 00
46,685,200.00
24,453,850.00
101,288,400.00
208,979,050.00
31,172,950.00
50,671,000.00
145,532,575.00
6,234,200.00
75,715,250.00
191,253,725.00
1,113,679,300.00
849,355,650.00
4,306,666,100.00
2,081,678,225.00
298,334,840.50
48,261,228.14
278,142,537.75
53,624,287.91
217,985,709.00
42,268,152.44
197,714,345.50
36,808,584.21
187,935,490.25
34,980,206.70
2,296,887,125.50
447,934,707.36
1,040,779,380.95
301 503 658 54
245,435,831.00
14,267,225.09
46,687,786.89
1,216,453.20
304,879,527.75
17,249,816.65
^ 56,198,611.54
1,653,524.45
283,765,905.50
16,027,786,20
^ 22,110,765.92
1,661,704.45
261,629,431.75
14,464,964.36
^ 638,409.19
1,392,673.90
242,290,794.75
13,340,029.16
149,264,341.16
1,050,281.65
3,397,955,022.00
191,228,673.95
179,070,366.27
16,287,085.50
3 621 227 190 00
238,057,267.75
456,393.18
18,294,725.99
635,465,652.49
912,800,219.17
642,242,869.51
670,778,922.35
897,397,167.29
8,657,206,350.05
11,757,142,910.40
18,790,000.00
24,461,000.00
21,553,000.00
11,471,000.00
37,237,000.00
477,700,000.00
1 920,515,000.00
126,000.00
42,000.00
140,250.00
46,750.00
38,625.00
12,875.00
37,125.00
12,375.00
46,125.00
15,375.00
798,750.00
266,250.00
1,698,750.00
566,250.00
689,694.00
50,206.00
408,333,736.50
8,241,188.50
479,504,900.00
1,339,354,925.00
Special notes of the United States:
International Monetary Fund Series
00
00
00
99
Treasury tax and savings notes:
United States 'savings bonds:
Matured:
>
CO
r
vn
Unmatured:
Unclassified^
Subtotal
Exchanges:
Treasury bonds, investment series
Series E savings bonds:
Series F and G savings bonds:
Accrued discoxmt
Subtotal
Total nonmarketable obligations....
18,958,000.00
24,648,000.00
21,604,500.00
11,520,500.00
37,298,500.00
654,423,652.49
937,448,219.17
663,847,369.51
682,299,422.35
934,695,667.29
24,687,324,951.99 13,172,903,224.-42
8,367,265,025.01 13,490,182,120,10
9,136,711,250.05 13,096,497,835.40
9,782,434,970.29 143,400,725,690,05 123,350,093,851.90
CJ
N
Footnotes at end of t a b l e .
TABLE 28. - - P u b l i c debt r e c e i p t s and expenditures by s e c u r i t y c l a s s e s , monthly for fiscal y e a r 1954 and totals for 1953 and 1954--Continued
C\>
Fiscal year 1954
Expenditures (retirements)
July 1953
August 1953
September 1953
October 1953
Noveraber 1953
December 1953
January 1954
Special issues:
$50,000.00
$50,000.00
$500,000.00
34,500,000.00
34,879,000.00
$35,000,000.00
$4,513,000.00
20,000,000.00
4,000,000.00
55,000,000.00
Civil service retirement fund (certificates)
$35,913,000.00
35,000,000.00
$34,955,000.00
35,863,000.00
Farm tenant mortgage insurance fund (notes)
30,600,000.00
2,000,000.00
X
tn
146,000,000.00
s
25,450,000.00
Federal Hoxising Administration fxmds (notes)
Federal old-age and survivors insurance trust
fxmd (certificates)
Federal Savings and Loan Insurance Corporation
(notes)
Foreign service retirement fxmd (certificates)
o
8,800,000.00
170,000.00
4,000,000.00
Government life insurance fxmd (certificates)
National service life insurance fund (notes)
Postal Savings System (notes)
41,000,000.00
32,000,000.00
150,000.00
17,000,000.00
41,000,000,00
160,000.00
3,500,000.00
10,000,000.00
16,000,000.00
41,000,000.00
54,000,000.00
170,000.00
66,000,000.00
10,000,000.00
7,000,000.00
40,000,000.00
37,000,000.00
150,000.00
3,500,000.00
10,000,000.00
36,000,000.00
43,000,000.00
180,000.00
3,000,000.00
10,000,000.00
18,000,000.00
39,000,000.00
100,000,000.00
300,000.00
2,000,000.00
10,000,000.00
12,000,000.00
41,000,000.00
150,000,000.00
Veterans special term insurance fxmd(certificates)
•Total special issues
Other obligations (principally national and Federal
Reserve Bank notes)
i
H
X
vn
m
o
X
147,333,000,00
93,200,000.00
190,215,000.00
194,720,000.00
152,029,000.00
260,180,000.00
4t)3,676,000.00
m
H
2,216,490.00
2,560,365.00
1,542,900.00
1,597,235.00
1,554,100.00
2,473,595,00
.2,550,205.00
X
9,714,836,182.33 15,658,724,089.98
8,509,425,346.61
7,183,055,332.60 18,558,559,123.81
7,678,135,188.06
o
-268,831,267.31
449,224,850.04
-40,463,511.36
-319,608,457.18
H
8,053,728,024.85
6,598,346,101.67
536,419,700.12
1,822,362,617.66
>
X
tn
H
X
vn
>
00
G
X
• - <
-
Fiscal year 1954
w
Expenditures (retirements)
February 1954
March 1954
April 1954
May 1954
June 1954
• -
•
-
-
Total fiscal
year 1954
1
Total fiscal
year 1953
!
O 'special issues:
'
Adjxisted service certificate fund (certificates)...
,
"^
Civil service retirement fxmd (notes) .,
, ,
Federal Deposit Insurance Corporation (notes)
$50,000.00
32,500,000.00
$35,824,000.00
$35,500,000.00
.. .
$34,873,000.00
3,600,000.00
2,100,000,00
Federal Hoxising Administration funds (notes)
Federal old-age and sxirvivors insxirance trust fxmd
(certificates)
Federal Savings and Loah Insurance Corporation
(notes)
Foreign service retirement fxmd (certificates)
Other obligations (principally national and Federal
Reserve Bank notes)
Total public debt expenditures
Excess of receipts, or expenditxires (-)
,
$5,163,000,00
1,301,733,000,00
1,168,580,000,00
6,000)000.00
40,100,000.00
109,200,000.00
14,100,000.00
65,550,000.00
$5,165,000.00
1 009 138 000 00
1,000,000.00
188 600 000 00
57,600,000.00
24,950,000.00
16,862,405,000.00 17,008,405,000.00 15,350,200,000.00
250,000.00
4,000,000.00
20,000,000.00
37,000,000'.00
52,595,000.00
20,000,000.00
150,000.00
4,000,000.00
20,000,000.00
37,000,000.00
41,500,000.00
225,000,000.00
200,000.00
4,000,000,00
20,000,000.00
21,000,000.00
40,000,000.00
160,000,000.00
166,395,000.00
Government life insurance fund (certificates)
National service life insxirance fund (-notes)
Postal Sax'^ings Systera (notes).. ,.
, '
Railroad retirement accoxmt (notes)
. Unemployment trust fund (certificates)
Veterans special term insurance fund (certificates)
$1,301,733,000.00
783,773,000.00
363,474,000.00
280,700,000.00
1,913,455,00
2,399,600.43
1,188,000,00
24,855,633,406.99 13,538,776,824,85
-66,972,532.42 -4,546,170,670.73
160,000,00
4,000,000,00
20,000,000,00
22,000,000,00
42,000,000.00
10,000,000.00
16,350,000.00
3,554,000.00
2,303,500.00
1,201,000,000.00
2,467,000,000,00
16,000,000,00
168,905,000,00
8,104,000,000.00
2,825,000.00
25,150,000.00
3,554,000.00
4,343,500.00
1,299,000,000.00
2,597,000,000.00
239,000,000.00
631,000,000.00
8,892,000,000.00
2,825,000.00
36,640,000.00
4,096,500.00
1,300,500,000.00
1,158,700,000.00
100,000,000.00
609,000,000.00
8,691,000,000.00
375,000.00
138,733,000.00 30,975,948,500.00 33,366,603,500.00 28,536,964,500.00
1,706,830.00
1,896,025.00
23,598,800.43
24,248,358.00
8,649,153,025.01 13,630,621,950.10 40,760,279,495.29 176,750,927,990.48 151,911,306,709.90
811,425,949.75
2,427,986,728..56 -2,215,182,038.91
5,188,537,469.89
>
VO
r
m
00
6,965,882,853.14
Contra entry (dedxict).
1 Includes $713,848,000 exchanged by the Federal Reserve System.
^ Represents redemptions (all series) not yet classified as between matured and unmatxired issues.
<J1
Ul
TABLE 29. --Changes in public debt i s s u e s , fiscal year 1954
Ul
[On basis of Public Debt accounts, see "Bases of Tables"]
.Outstanding
June 30, 1953
Issues
during year
Rederaptions
during year
Transferred t o
matured debt
Outstanding
June 30, 1954
INTEREST-BEARING DEBT
Public Issues
Marketable:
Treasury bills (maturity value):
Series maturing:
July 2, 1953
July 9, 1953
July 16, 1953
July 23, 1953
July 30, 1953
Aug. 6, 1953
Aug. 13, 1953
Aug. 20, 1953
Aug. 27, 1953
Sept. 3, 1953
Sept. 10, 1953
'
.
Sept. 17, 1953
Sept. 18, 1953 (tax anticipation).
Sept. 24, 1953
Oct. 1, 1953
Oct. 8, 1953
Oct. 15, 1953
Oct. 22, 1953
Oct. 29, 1953
Nov. 5, 1953
Nov. 12, 1953
Nov. 19, 1953
Nov. 27, 1953
Dec. 3, 1953
Dec. 10, 1953
Dec. 17, 1953
Dec. 24, 1953...'.
Dec. 31, 1953
Jan. 7, 1954
Jan. 14, 1954
Jan. 21, 1954
Jan. 28, 1954...
Feb. 4, 1954
Feb. 11, 1954
Feb. 18, 1954
Feb. 25, 1954
M^r. 4, 1954
X
vn
•Xl
$1,200, 547,000.00
1,400,812,000.00
1,400,736,000.00
1,500, 526,000.00
1,499,924,000.00
1,500,380,000.00
1,500, 569,000.00
1,501,213,000.00
1,500, 777,000.00
1,500,301,000.00
1,399,956,000.00
1,500, 503,000.00
800, 464,000.00
1,500J 229,000.00
$1,500, 319,000.00
1,501; 179,000.00
1,500, 280,000.00
1,500, 620,000.00
1,500J 110,000.00
1,500, 309,000.00
1,500, 702,000.00
1,501, 428,000.00
1,501, 518,000.00
1,500, 452,000.00
1,500, 508,000.00
1,500, 290,000.00
1,499, 948,000.00
1,500, 943,000.00
1,500, 820,000.00
1,501, 444,000.00
1,500, 749,000.00
1,499, 879,000.00
1,500, 621,000.00
1,500, 066,000.00
1,501, 687,000.00
1,501, 170,000.00
1,500, 262,000.00
$1,200, 540,000,
1,400,802,000.
1,400,736,000,
1,500, 516,000.
1,499,924,000,
1,500,350,000.
1,500, 568,000,
1,501,213,000.
1,500, 778,000,
1,500,301,000,
1,399,956,000.
1,500, 503 ,'000.
800, 444,000,
1,500, 229,000.
1,500,244,000.
1,501, 179,000.
1,500,280,000.
1,500, 540,000.
1,500,075,000,
1,500,309,000,
1,500, 662,000.
1,501,398,000.
1,501,483,000,
1,500, 457,000.
1,500,467,000.
1,500, 266,000.
1,499,948,000.
1,500,935,000.
1,500,820,000.
1,501, 443,000.
1,500, 738,000.
1,499,873,000.
1,500, 561,000.
1,499,970,000.
1,501, 604,000.
1,501, 105,000.
1,500, 210,000.
$7,000.00
10,000.00
10,000.00
30,000.00
1,000.00
1 1,000.00
S
H
O
H
X
tn
00
tn
20,000.00
tr|
H
75,000.66
80,000.00
35,000.00
40,000.00
30,000.00
35,000.00
25,000.00
41,000.00
24,000.00
8,000.00
1,000.00
11,000.00
6,000.00
60,000.00
96,000.00
83,000.00
65,000.00
52,000.00
o
H
X
tn
tn
>
1,500, 689,000.00
1,500, 538,000.00
1,501, 272,000.00
1,502, 270,000.00
1,500, 289,000.00
1,500, 428,000.00
1,501, 961,000.00
1,500, 313,000.00
1,500, 318,000.00
1,501, 294,000.00
1,499, 945,000.00
1,500, 726,000.00;
1,500, 998,000.00
1,501, 139,000.00
1,501, 048,000.00
1,001, 083,000.00
1,500, 659,000.00
1,501, 190,000.00
1,500, 672,000.00
1,499, 953,000.00
1,501, 274,000.00
1,501, 452,000.00
1,502, 532,000.00
1,502, 208,000.00
1,500, 849,000.00
1,501, 427,000.00
1,502, 782,000.00
1,500, 502,000.00
1,500, 190,000.00
1,500, 603,000.00
1,500, 973,000.00
Mar. 11, 1954
Mar. 18, 1954
Mar. 25, 1954
Apr. 1, 1954
Apr. 8, 1954
'..
..
Apr. 15, 1954
.
'
Apr. 22, 1954
Apr. 29, 1954
May 6, 1954
May 13, 1954
May 20, 1954
May 27, 1954
i
June 3, 1954
June 10, 1954
June 17, 1954
June 18, 1954 (tax anticipation).
June 24, 1954 (tax anticipation).
June 24, 1954
July 1, 1954
July 8, 1954
July 15, 1954
July 22, 1954
July 29, 1954
Aug. 5, 1954
Aug. 12, 1954
Aug. 19, 1954
Aug. 26, 1954
Sept. 2, 1954
Sept. 9, 1954
Sept. 16, 1954
Sept. 23, 1954
Total Treasury bills.
Certificates of Indebtedness:
2ff, Series C—1953
2 1/4^ Series A—1954
2 5/8^ Series B—1954
2 1/2^ Series C—1954 (tax anticipation).
2 5/8^ Series D—1954
2 5/8^ Series E~1954
1 5/8^ Series A~1955
1 1/8^ Series B~1955
1/4^ Special short term
Total certificate of indebtedness.
Treasury notes:
'
2 1/8^ Series A~1953
1 3/8^ Series A~1954
1 7/8^ Series B—1954
1 1/2^ Series A—1955
1 3/4^ Series B—1955.
2 7/8^ Series A—1957
,
Footnotes at end of table.
19,706,937,000.00
2,881,576,000.00
8,114,165,000.00
4,857,798,000.00
15,853,539,000.00
1,500, 638,000.00
1,500, 463,000.00
1,501, 264,000.00
1,502, 009,000.00
1,500, 231,000,00
1,500, 365,000,00
1,501, 936,000,00
1,500, 215,000,00
1,500; 248,000.00
1,501, 043,000.00
1,499;834,000.00
1,500,085,000.00
1,500,513,000.00
1,500 830,000.00
1,499 826,000.00
998,669,000.00
1,457, 414,000,00
1,499; 260,000.00
1,546,911,000.00
80,716,270,000.00
22,161,000.00
2,881,153,000.00
8,112,776,000.00
4,848,676,000.00
5,898,987,000,00
' 423,000.00
1,389,000.00
9,497,000.00
2,649,000.00
375,000.00
5,901,636,000.00
2,788,226,000.00
4,724,009,000.00
7,006,787,000.00
3,885,977,000.00
614,000,000.00
$1,500, 672,000.00
1,499 953,000.00
1,501 274,000.00
1,501 452,000.00
1,502 532,000.00
1,502 208,000.00
1,500 849,000.00
1,501, 427,000.00
1,502, 782,000.00
1,500, 502,000.00
1,500, 190,000.00
1,500, 603,000.00
1,500,'973,000.00
tn
614,000,000,00
22,355,592,000.00
13,958,000.00
18,404,999,000.00
657,000.00
4,211,000.00
8,175,143,000.00
1,000.00
2,996]574^606.00
19,515,417,000.00
>
r
CD
2,788,226,000.00
4,724,009,000.00
7,006,787,000.00
3,885,977,000.00
10,541,010,000.00
4,670,857,000.00
24,921,010,000,00
10,541,667,000.00
4,675,068,000.00
5,365,078,000.00
6,853,793,000.00
,000.00
,000.00
,000.00
,000.00
,000.00
,000.00
,000.00
98 ,000.00
70 ,000.00
251 ,000.00
111 ,000.00
641 ,000.00
485 ,000.00
309 ,000.00
1,222 ,000.00
2,414 ,000.00
13,245 ,000,00
1,930 ,000.00
8,175,143,000.00
5,365,078,000.00
6,853,792,000.00
2,996,574,000.00
Ul
CVJ
Ul
TABLE 29. --Changes in public debt issues, fiscal year 1954--Continued
CSJ
00
Outstanding
June 30., 1953
Issues
during year
Redemptions
dxiring year
Transferred to
matxired debt
Outstanding
June 30, 1954
INTEREST-BEARING DEBT--Continued
Public Issues--Continued
$5,102,277,000.00
$1,007,043,000.00
550,008,000.00
531,296,000.00
824,196,000.00
80,137,000.00
30,428,286,000.00
Total Treasury notes.
Treasury bonds:
2^ of 1951-53
2^ of 1951-55
2 1/4^ of 1952-55..
2^ of 1952-54 (dated June 26, 1944)
2^ of 1952-54 (dated Dec. 1, 1944)
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
1/4^ of
7/8Jt of
1/2^ of
3/4^ of
1/4^ of
3/8^ of
3/8^ of
3/4^ of
1/2^ of
1/4^ of
1/4^ of
3/4^ of
3/4^ of
1/2^ of
1/2^ of
1/2^ of
1/2^ of
1/2^ of
1/2^ of
1/2^ of
1954-56.
1955-60
1956-58
1956-59
1956-59.
1957-59
1958 '.
1958-63
1958
1959-62 (dated
1959-62 (dated
1960-65
1961
1961
1962-67
1963-68
1964-69 (dated
1964-69 (dated
1965-70
1966-71
4^
X
Market able —Cont inued
Treasxiry notes—Continued
1 7/8^ Series A—1959..
1 1/2^ Series EA~1956.
1 1/2^ Series E0~1956.
1 1/2^ Series EA~1957.
1 1/2^ Series EO—1957.
1 1/2^ Series EA~1958.
1 1/2^ Series EO—1958.
1 1/2^ Series EA—1959.
June 1, 1945)...
Nov. 15, 1945)..
Apr. 15, 1943)..
Sept. 15, 1943).
•
302,659,000.00
121,269,000.00
50,479,000.00
16,745,401,000.00
242,500.00
510 411,450.00
,500 780,800.00
,825 ,467,500.00
,661 962,500.00
680 ,691,850.00
,611 090,500.00
,443 746,650.00
981',826,050.00
,822' 158,000.00
926 812,000.00
,244 ,812,500.00
918 780,600.00
620 ,128,000.00
,279 ,495,000.00
,466 ,790,500.00
,485 383,600.00
,116,
827,
,756,
832,
,723,
,963,
634,200.00
614,500.00
473,000.00
578,500.00
024,000.00
162,000.00
$5,102,277,000.00
1,007,043,000.00
550,008,000.00
531,296,OOO.OO
824,196,000.00
382,796,000.00
121,269,000.00
50,479,000.00
$15,211,868,000.00
$4,868,000.00
7,968,139,500.00
18,103,000.00
1,479,116,100.00
5,742,531,500.00
20,000.00
666,540,150.00
21,664,700.00
82,936,000.00
1,150.00
558,500.00
1,000.00
1,748,238,000.00
2,239,262,000.00
11,177,153,500.00
2,817,000.00
1,359,500.00
500.00
600,800.00
1,580,000.00
2,432,000.00
2,012,000.00
4,268,500.00
1,993,500.00
31,959,951,000.00
H
O
H
IX
tn
00
tn
9
510,411,450.00
8,661,942,500.00
14,151,700.00
vn
2,611 090,500.00
1,44S ,745,500.00
981,826,050.00
3,821 ,599,500.00
926 ,811,000.00
4,244 ,812,500.00
918 ,780,600.00
2,368 ,366,000.00
5,276 ,678,000.00
3,465 ,431,000.00
1,485 383,100.00
2,239 ,262,000.00
11,177 153,500.00
2,116 ,033,400.00
2,826 ,034,500.00
3,754 ,041,000.00
3,830 ,566,500.00
4,718 755,500.00
2,961 168,500.00
tn
H
O
•n
H
X
tn
tn
2
2
2
3
1/2^
1/2^
1/2^
1/4^
of
of
of
of
1967-72 (dated June 1, 1945)..
1967-72 (dated Oct. 20, 1941).
1967-72 (dated Nov. 15, 1945).
1978-83
Total Treasury bonds.
ether bonds:
3j> Panama Canal loan of 1961.
fi
2 1/2^ Postal savings bonds (45th to 49th series).
Total other bonds.
Total marketable.
Nonmarketable:
Treasury savings notes:
Series D-1953
Series D-1954
Series A-1954.
Series A-1955
Series A-1956
Series B-1955
Series C-1955A
Total Treasury savings notes.
United States savings bonds:^
Series E-1941
,
Series E-1942
,
Series E-1943
Series E-1944.
Series E-1945
Series E-1946
Series E-1947
Series E-1948
Series E-1949
Series E-1950
Series E-1951
Series E-1952 (Jan. to Apr.)
Series E-1952 (May to Dec.)
Series E-1953
Series E-1954
,
Unclassified sales and redemptions..
Total Series E.
Series
Series
Series
Series
Series
Series
Series
F-1941...
F-1942...
F-1943...
F-1944...
F-1945...
F-1946...
F-1947...
Footnotes at end of table.
1,894,377,000.00
2,716,027,150.00
3,832,343,500.00
1,593,549,300.00
12,534,700.00
6,013,500.00
7,800.00
9,752,000.00
1,000.00
81,227,363,150.00
15,177,188,200.00
15,889,746,000.00
136,855,400.00
0,377,949,950.00
26,563,460.00
1,016,040.00
49,800,000.00
46,462,880.00
49,800,000.00
74,042,380.00
1,888,363,500.00
2,716,019,350.00
3,822,591,500.00
1,606,083,000.00
26,563,460.00
1,016,040.00
96,262,880.00
137,393,510,200.00
134,200,039,460.00
178,858,440.00
150,354,579,830.00
1,467,500.00
3,036,800.00
9,551,800.00
1,911,081,300.00
679,640,300.00
80,416,900.00
42,904,100.00
558,548,200.00
352,150,700.00
102,338,600.00
719,830,300.00
104,920,900.00
4,436,877,000.00
2,590,721,600.00
1,961,109,700.00
14,056,100.00
620, 350,134.91
2,737, 496,681.33
4,769, 035,091.74
5,599, 246,532.98
4,398, 139,517.73
2 , 2 0 1 , 880,952.14
2,244, 774,503.50
2,427, 017,709.91
2,459, 158,302.58
2,229, 416,281.30
2,037, 245,786.18
^ 59,132,185.05
237,897.12
72, 263,038.04
145, 624,280.71
230, 392,055.19
189, 097,609.52
99; 644,481.21
93, 420,919.56
58, 746,421.44
60, 836,355.15
56, 112,943.09
32; 127,770.09
9, 542,296.87
37, 821,371.25
2,255, 194,169.25
1,749, 389,587.50
666,928.64
. 57,531,312.73
314,066 102.95
868,933 268.58
530,762,823.57
205,003,296.54
98,418 307.25
100,701 640.15
116,737 224.34
131,013,750.03
143,670, 826.90
178,832 273.58
83,528 605.39
250,808,974.45
937,727; 814.10
150,105, 525.00
143,058, 916.20
35,644,100,077.90
5,108,118,124.63
4,310,900,661.76
106,819,875.00
465,986,791.22
485,375,732.41
570,978,391.68
457,516,423.89
230,957,241.01
247,700,847.26
2,156,773.00
17,516,795.79
16,767,775.17
18,358,969.92
13,937,024.38
7,141,232.74
7,950,234.46
83,746,548.00
146,117,684.46
23,550,734.23
22,168,634.32
•17,204,609.69
14,727,483.23
13,822,455.47
123,842,380.00
147,339,967,530.00
81,884,400.00
45,940,900.00
793,356,000.00
597,999,100.00
157,565,600.00
2,760,131,000.00
746, 830,151.30
1,697, 762,217.35
1,534, 878,400.00
225,256,000.00
245,848,400.00
55,227,000.00
3,951,382,000.00
574,719,400.00
5,-052,432,800.00
577,056, 719.30
2,495,693, 616.42
4,045,726, 103.87
5,298,875, 764.60
4,382,233; 830.71
2,203,107; 126.10
2,237,493; 782.91
2,369,026, 907.01
2,388,980; 907.70
2,141,858, 397.49
1,890,541; 282.69
672,843; 842.78
1,454,774; 614.15
2,852,344, 755.15
1,599,284; 062.50
3 198,524; 172.61
>
r
DO
tn
36,441,317,540.77
25,230,100.00
92,443,700.00
244,942,202.55
478,592,773.35
567,168,727.28
454,248,838.58
223,370,990.52
241,828,626.25
Ul
CVJ
Ul
TABLE 29. --Changes in public debt issues, fiscal year 1954--Continued
Outstanding
June 30, 1953
Title
Issues
dviring year
Redemptions
during year
o
Transferred to
matxired debt
Outstanding
June 30, 1954
INTEREST-BEARING DEBT--Continued
Public Issues--Continued
Nonmarket able —Cont inued
United States savings bonds^—Continued
Series F-1948
Series F-1949
Series F-1950
Series F-1951
Series F-1952
'.
Unclassified sales and redemptions
X
$433,276,731.91
189,554,630.16
354,890,537.55
112,594,266.96
38,016,644.35
3 4,995,223.39
618,100.00
1,256,400.00
1,756,500.00
1,926,000.00
1,789,600.00
1,272,900.00
2,513,700.00
883,400.00
1,053,000.00
456,700.00
91,300.00
21,209,700.00
159,946,000.00
13,617,600.00
1,694,939,700.00
181,155,700.00
10,167,500.00
107,000.00
278,173,500.00
383,805,000.00
8,624,000.00
87,319,805.21
62,284,194.00
•
$117,673,800.00
310,726,300.00
729,993,100.00
84,811,600.00
87,075,600.00
75,247,000.00
94,026,000.00
76,500,500.00
61,502,300.00
45,383,700.00
56,455,300.00
28,878,800.00
8,662,800.00
35,676,700.00
388,454,500.00
Total Series H
387,282,136.47
185,832,500.00
192,454,500.00
Series H-1952
Series H-1953
Series H-1954
Unclassified sales and r e d e n i p t i o n s . . . . . . . . . . . . . .
110,521,442.35
17,488,467,900.00
Total Series G
Total Series J
$431,060,928.84
]^3,412 719.11
346 479 577 69
106,152,898.99
36 069 627 64
^ 19,089,514.91
331,936,000.00
1,729,847,900.00
1,776,282,200.00
2,096,080,300.00
1,921,242,600.00
2,004,835,100.00
1,742,144,300.00
2,212,826,100.00
1,215,551,300.00
1,736,366,100.00
591,330,200.00
154,209,000.00
3 24,183,200.00
Series G-1941
Series G-1942.
Series G-1943
Series G-1944
Series G-1945
Series G-1946
Series G-1947
Series G-1948
Series G-1949
Series G-1950
Series G-1951.
Series G-1952
Unclassified sales and redemptions
Series J-1952
Series J-1953
Series J-1954
Unclassified sales and redemptions
$15,245,805.51
11,116,701.98
15,045,975.69
8,044,289.66
2,396,922.71
14,094,291.52
3,688,672,890.01
Total Series F
$13,030,002.44
4,974,790.93
6,635,015.83
1,602,921.69
449,906.00
3,294 238,395.89
vn
g
H
O
H
X
tn
00
840,526,900.00
1,692,727,000.00
2,010,761,200.00
1,847,921,600.00
1,912,598,700.00
1,666,916,700.00
2,153,837,500.00
1,171,051,000.00
1,680,963,800.00
562,908,100.00
145,637,500.00
3 59,859,900.00
tn
9
tn
H
o
•n
H
X
tn
15,625,990,100.00
tn
10,130,500.00
14,816,500.00
118,000.00
644,000.00
175,809,000.00
455,811,500.00
383,687,000.00
18,147,500.00
CO
670,709,500.00
25,709,000.00
1,033,455,000.00
3,494,520.00
1,501,615.48
69,561,515.26
155,866,644.00
6,425,360.00
5,757,999.43
3,827,724.00
121,356.00
893,046.00
83,063,421.26
128,017,985.26
155,745,288.00
9,026,834.00
153,098,519.21
233,355,134.74
10,600.125.43
375,853,528.52
>
Series K-1952
Series K-1953
Series K-1954
Unclassified sales and rederaptions
Total Series K
,
,
,
,
236,318,000.00
163,182,000.00
5,458,000.00
116,000.00
139,647,000.00
451,520,000.00
19,611,500.00
12,225,000.00
7,682,500.00
132,000.00
304,000.00
274 209 000 00
295 146 500 00
451,388,000.00
24,795,500.00
610,894,500.00
20,343,500.00
57,817,781,887.12
Total United States savings bonds
454,988,000.00
6,747,216,301.72
6,449,775,123.66
39,426,000.00
74,758,500.00
411,215,500.00
33,955,000.00
475,813,000.00
913,665,000.00
11,861,247,000.00
Depositary b o n d s :
First series
,
446,548,000.00
Treasxiry b o n d s , investment series:
Series A-1965
Series B-1975-80
,
,
947,620,000.00
12,337,060,000.00
1,045,539,000.00
298,829,500.00
57,816,393,565.18
12,774,912,000.00
509,768,000.00
Total Treasxiry b o n d s , investment series...,
13,284,680,000.00
Total nonmarketable
,
75,985,886,887.12
9,377,363,901.72
8,995,411,323.66
312,885,600.00
76,054,953,865.18
Total public issues
,
223,325,854,417.12
146,770,874,101.72
143,195,450,783.66
491,744,040.00
226,409,533,695.18
5,113,000.00
4,693,000.00
5,163,000.00
Special Issues
Adjusted service certificate fund:
Aio certificates
Canal Zone, Postal Savings System:
2 $ notes
Civil
4^
336
Aio
3Jo
service retirement fund:
certificates
certificates
notes
notes
>
r
tn
tjO
845,440,000.00
,
=
.
Federal home loan banks:
2^ notes
1 I/25& notes
1 1/4^ notes
2,716,790,000.00
6,751,000.00
1,298,051,000.00
3,682,000.00
1,166,208,000.00
2,372,000.00
2,264,179,000.00
4,117,000.00
3,560,774,000.00
9,876,000.00
1,250,000.00
846,400,000.00
154,400,000.00
109,200,000.00
891,600,000.00
50,000,000.00
2,000,000.00
124,800,000.00
68,900,000.00
2,000,000.00
9,100,000.00
3,000,000.00
50,000,000.00
115,700,000.00
65,900,000.00'
15,531,700,000.00
1,152,705,000.00
17,378,405,000.00
16,684,405,000.00
324,000,000.00
17,054,405,000.00
48,850,000.00
25,150,000.00
84,440,000.00
,
Federal old-age and sxirvivors insxirance t r u s t fxmd:
2 3/8^ certificates
2 1/4^ certificates
Federal Savings and Loan Insurance Corporation:
2^ notes
1,048,000.00
4,726,982,000.00
12,248,000.00
1,250,000.00
Federal Deposit Insxirance Corporation:
2^ notes
1 050 000 00
1,050,000.00
Farm tenant mortgage insxirance fund:
2 ^ notes
Footnotes at end of table.
4,643,000.00
60,740,000.00
Ul
CO
TABLE 29,--.Changes in public debt issues, fiscal year 1 954 --Continued
Ul
CVJ
Outstanding
June 30, 1953
Issues
during year
Redemptions
during year
Transferred tp
matxired debt
Outstanding
June 30, 1954
INTEREST-BEARING DEBT--Continued
Special Issues--Continued
Foreign service retirement fund:
4^ certificates
3^ certificates
4^ notes
3^ notes
Government life insxirance fund:
3 1/2^ certificates
Housing insurance fund:
2^ notes
2
X
c...
$2,753,000.00
102,000.00
12,812,800.00
462,100.00
$6,707,000.00
290,000.00
$3,408,000.00
146,000.00
4,260,000.00
83,500.00
$6,052,000.00
246,000.00
8,552,800.00
378,600.00
1,299,000,000.00
1,234,000,000.00
1,299,000,000.00
1,234,000,000.00
s
H
O
H
tn
1,700,000.00
1,700,000.00
tn
00
tn
Housing insurance fund-Title I:
2^ notes
Housing investment insurance fxmd:
2^ notes
Military housing insurance fund:
2^ notes
Mutual mortgage insxirance fund:
2^ notes
450,000.00
450,000.00
9
150,000.00
150,000.00
tn
H
2,200,000.00
2,200,000.00
O
15,700,000.00
9,800,000.00
15,700,000.00
9,800,000.00-
tn
>
Outstanding
- June 30, 1953 ,
Title
Issues
during year
Transferred from
i n t e r e s t - b e a r i n g debt
Redemptions
during year
Transferred to
matured debt
Outstanding
June 30, 1954
INTEREST-BEARING DEBT--Continued
Special I s s u e s - - C o n t i n u e d .
National defense housing insurance fxmd:
2^0 notes
$2,000,000.00
$6,400,000.00
$3,800,000.00
$4,600,000.00
5,249,479,000.00
2,620,000,000.00
.2,597,000,000.00
5,272,479,000.00
239,000,000.00
212 000 000.00
3,345,255,000.00
National service l i f e insxirance fund:
Postal Savings System:
451,000,000.00
Railroad retirement account:
•yjo notes
3,127,803,000.00
848,452,000.00
631,000,000.00
Unemployment t r u s t fund:
2 3/&jo c e r t i f i c a t e s
2 1/4^ c e r t i f i c a t e s
8,287,000,000.00
605,000,000.00
8,024,000,000.00
8,892,000,000.00
1,500,000.00
3,925,000.00
1,925,000.00
900,000.00
38,300,000.00
42,000,000.00
40,538,257,900.00
35,057,118,000.00
- 33,366,603,500.00
263,864,112,317.12
181,827,992,101.72
176,562,054,283.66
8,024,000,000.00
Veterans special term insxirance fund:
425,000.00
•
War housing insxirance fxmd:
3,700,000.00
Total i n t e r e s t bearing debt o u t s t a n d i n g . . .
- 3 025,000.00
r
c/3
42,228,772,400.00
$491,744,040.00
268,638,306,095.18
MATURED DEBT ON WHICH INTEREST
HAS CEASED
Postal savings bonds, e t c . :
3Jo Loan of 1908-18
6^ Compound "interest notes 1864-1866
54) Funded Loan of 1881 . . . . .
. . .
98,480.00
14,050.00
155,990.00
19,400.00
1,058,520.00
1,088,730.26
2,435,170.26
Liberty loan bonds:
F i r s t Liberty loan:
First 3 l/2's
First 4's
Footnotes at end of table.
869,600.00
99,300.00
120.00
98,360.00
14,050.00
155,990.00
19,400.00
1,648,040.00
1,088,730.26
$1,016,040.00
426,520.00
1,016,040.00
426,640.00
3,024,570.26
68,300.00
1,500.00
801,300.00
97,800.00
Ul
LO
Ul
LO
TABLE 29, --Changes in public debt i s s u e s , fiscal y e a r 1954--Continued
Outstanding
June 30, 1953
Title
MATURED DEBT ON WHICH INTEREST
HAS CEASED--Continued
Liberty loan bonds—Continued
F i r s t Liberty loan—Continued
First 4 l/4's
First^econd 4 l/4's
Issues
during year
Transferred from
interest-bearing debt
Redemptions
during year
Outstanding
June 30, 1954
$440,750.00
3,100.00
$427,100.00
3,100.00
1,412,750.00
83,450.00
1,329,300.00
367,500.00
414,600.00
Total
$13,650.00
2,400.00
8,400.00
365,100.00
406,200.00
Second Liberty loan:
Second 4 1/4's
782,100.00
6,836,650.00
700.00
436,550.00
2,300.00
700.00
434,250.00
437,250.00
Treasury bonds:
3 3/8's of 1940-43
. . .
3 3 / 8 ' s of 1941-43
3 l / 4 ' s of 1941..
...
3 3/8's of 1943-47
3 l / 4 ' s of 1943-45
3 1/4's of 1944-46
4 ' s of 1944-54
2 3/4's of 1945-47
..
.
....
2 1/2's of 1945
3 3/4's of 1946-56
3's of 1946-48
3 1/8's of 1946-49
4 l / 4 ' s of 1947-52
. . . .
2 ' s of 1947
2 ' s of 1948-50 (dated Mar. 15, 1941).
2 3/4's of 1948-51
1 3 / 4 ' s of 1948
1,310,900.00
3 425,150.00
235,550.00
2,300.00
434,950.00
20,900.00
4,600.00
2,550.00
42,350.00
78,550.00
128,850.00
187,700.00
106,550.00
26,500.00
43,900.00
73,700.00
99,650.00
225,500.00
23,500.00
21,200.00
57,050.00
143,000.00
103,750.00
220,950.00
57,950.00
237,050.00
544,300.00
1,057,600.00
657,100.00
569,700.00
14,000.00
343,000.00
276,650.00
932,200.00
1,082,500.00
29,450.00
39,650.00
1,477,950.00
356,500.00
X
H
O
771,300.00
10,800.00
130,500.00
7,072,200.00
Victory notes:
Victory 3 3 / 4 ' s
Victory 4 3/4's
10,800.00
1,321,700.00
3,555,650.00
Total
Third Liberty loan 4 l / 4 ' s
X
tn
n
X
H
>
O
..
...
124,650.00 •
225,550.00
60,500.00
279,400.00
622,850.00
1,186,450.00
844,800.00
676,250.00
40,500.00
386,900.00
350,350.00
1,031,850.00
1,308,000.00
52,950.00
60,850.00
1,535,000.00
499,500.00
H
X
H
X
tri
>
GO
c
2 1/2's of 1948
2's of 1948-50 (dated
2's of 1949-51 (dated
2's of 1949-51 (dated
2's of 1949-51 (dated
3 l / 8 ' s of 1949-52
2 1/2's of 1949-53
1 1/2's of 1950
2's of 1950-52 (dated
2 1/2's of 1950-52
1
Dec. 8, 1939)..
Jan. 15, 1942).
May 15, 1942)..
July 15, 1942).
Oct. 19, 1942).
2's of 1950-52 (dated Apr. 15, 1943).
2 1/4's of 1951-53
2's of 1951-53
•...
2 3/4's of 1951-54
3's of 1951-55
.•
2 1/2's of 1952-54
2's of 1952-54 (dated June 26, 1944).
2 1/4's of 1952-55
2's of 1953-55
39,800.00 1
12,300.00
17,700..: J
19,200.00
47,500.00
36,850.00
682,800.00
1,421,500.00
119,500.00
91,500.00
1,738,500.00
260,850.00
138,950.00
60,100.00
74,700.00
101,100.00
235,000.00
217,500.00
1,451,100.00
4,759,500.00
295,700.00
305,250.00
4,412,500.00
625,300.00
$18,103,000.00
575,900.00
2,453,500.00
989,650.00
1,684,100.00
6,450,450.00
1,569,550.00
82,936,000.00
21,664,700.00
7,404,050.00
8,253,950.66
14,151,700.00
2 1/4's of 1954-56
Total Treasxiry bonds
3^ Adjusted service bonds of 1945
United States savings bonds:
Series A-1935
Series B-1936
Series C-1937
Series C-1938
Series D-1939
Series D-1940
Series D-1941
Series F-1941
Series F-1942
Series G-1941
4,576,750.00
1,835,150.00
3,225,100.00
4,170,750.00
6,508,600.00
12,319,550.00
27,600,875.00
35,234,375.00
19,423,600.00
$27,000.00
^ 130.00
25,230,100.00
92,443,700.00
21,209,700.00
159,946,000.00
42,507,600.00
Series G-1942
Total United States savings bonds...
Armed forces leave bonds:
Series 1943:
Apr. 1, 1943
July 1, 1943
Oct. 1, 1943
Series 1944:
Jan. 1, 1944
Apr. 1, 1944
July 1, 1944
Oct. 1, 1944
Footnotes at end of table.
152,825,600.00
159,549,350.00
4,074,550.00
247,925.00
409,750.00
712,400.00
1,237,275.00
2,372,595.00
5,660,450.00
7,465,875.00
14,653,525.00
1,587,225.00
2,815,350.00
3,458,350.00
5,271,325.00
9,946,825.00
21,940,425.00
27,768,500.00
30,000,175.00
92,443,700.00
25,069,100.00
159,946,000.00
38,648,200.00
100.00
1 100.00
298,829,500.00
71,407,995.00
tn
78,200.00
117,975.00
183,575.00
55,600.00
44,850.00
48,325.00
65,900.00
>
r
CD
380,246,975.00
19,925.00
37,350.00
52,775.00
1 130.00
98,125.00
155,325.00
236,350.00
246,750.00
201,475.00
242,275.00
279,200.00
17,227,150.00
529,200.00
136,855,400.00
39,921,100.00
99 150.00
47,800.00
57,000.00
81,900.00
187,500.00
180,650.00
768,300.00
3,338,000.00
176,200.00
213,750.00
2,674,000.00
364,450.00
18,103,000.00
1,108,200.00
3,966,950.00
579,900.00
82,936,000.00
21,664,700.00
849,900.00
14,151,700.00
191,150.00
156,725.00
193,950.00
213,200.00
Ul
LO
LH
T A B L E 2 9 . - - C h a n g e s in p u b l i c debt i s s u e s , f i s c a l y e a r
Outstanding
June 30, 1953
Title
Issues
during y e a r
1954--Continued
T r a n s f e r r e d from
i n t e r e s t - b e a r i n g debt
r
Ul
Redenqptions
dxiring year
Outstanding
June 30, 1954
ON
M A T U R E D D E B T ON WHICH I N T E R E S T
HAS C E A S E D - - C o n t i n u e d
Armed f o r c e s l e a v e bonds—Continued
S e r i e s 1945: .
J a n . 1, 1945
Apr. 1, 1945
J u l y 1, 1945
Oct. 1, 1945
S e r i e s 1946:
J a n . 1, 1946
Apr. 1, 1946
J u l y 1, 1946
Oct. 1, 1946
$535,275.00
483,250.00
1,186,850.00
4,915,250.00
21,240,475.00
11,779;100.00
4,749,275.00
6,640,775.00
T o t a l armed f o r c e s leave b o n d s , . . . . . . . . . , . . . , , . ,
Treasxiry n o t e s :
Regxaar s e r i e s :
5 3/4^ A-1924
4 3/4^ A-1925
4 3/8^ B-1925
4 1/2^ C-1925
4 3/4^ A-1926
4 1/4^ B-1926
4 1/2^ A-1927
4 3/4^ B-1927
3 1/2^ A-1930-32
3 1/2^ B-1930-32
3 1/2^ C-1930-32.
yf) A-1934
^ 2 1/8^ B-1934 '.
3^ A-1935
1 5/8^ B-1935
2 1/2^ C-1935
2 1/2^ D-1935
3 1/4^ A-1936
2 3/4^ B-1936.
2 7 / 8 ^ C-1936
3 l / 4 ^ A-1937
3f B-1937
f>
3^ C -1937
2 5/8^ A-1938
2
FRASER 7 / 8 ^ B-1938.
Digitized for
52,979,750.00
^ $150.00
200.00
^ 200.00
150.00
$111,950.00
113,075.00
285,275.00
1,206,000.00.
$413,325.00
370,175.00
901,575.00
3,709,100.00
X
5,389,175.00
3,106,475.00
1,306,625.00
2,185,650.00
15,851,500.00
8,672,425.00
3,442,650.00
4,455,275.00
o
14,028,950.00
38,950,800.00
vn
H
X
tn
00
tn
n
•
;
.,
;
6,200.00
1/000.00
16,700.00
6,300.00
2,600.00
6,800.00
7,200.00
9,900.00
80,600.00
•60,150.00
14,700.00
500.00
5,000.00
7,000.00
984,400.00
10,000.00
.80,000.00
26,500.00
18,100.00
14,600.00
97,100.00
28,000.00
10,000.00
7,300.00
21,000.00
400.00
100.00
2,500.00
15,000.00
7,000.00
1,000.00
6,200.00
1,000.00
16,700.00
6,300,00
2,600,00
6,800.00
7,200.00
9,500.00
80,600,00
60,050,00
12,200,00
500,00
5,000,00
7,000,00
984,400.00
10,000.00
80,000.00
11,500.00
18,100,00
14,600,00
97,100,00
28,000.00
10,000,00
300.00
20,000.00
>
O
H
X
tn
c
yjo C-1938
2 1/2^ D - 1 9 3 8 . .
2 1/8^ A-1939
1 3/&lo B-1939
• 1 1 / 2 ^ C-1939
1 5 / 8 ^ A-1940
1 I/25G B-1940.
1 1/2^ C-1940
1 1/2^ A-1941
1 3/&I0 B-1941
1 i / 4 ^ C-1941
1 3 / 4 ^ A-1942.
2^ B-1942
1 3 / 4 ^ C-1942
1 1/8^ A-1943
'
1 1/8^
BT-1943
. 1^ C-1943
• 3 / 4 ^ D-1943
3 / 4 ^ A-1944
1^ B-1944
1^ C-1944
3/4^ D - 1 9 4 4 . . . . .
3 / 4 ^ A-1945
3 / 4 ^ B-1945
- 1^ A - 1 9 4 6 . . . - 1 1/2^ B-1946
. 9 0 ^ D-1946
1 1/4^ B-1947
1 1/2^ A - 1 9 4 7 . . .
1 1/4^ C-1947
1 1/2^ A-1948
1^ B-1948
1 1 / ^ A-1949
: 1 3 / 8 ^ A-1950
1 1/4^ B-1951
i 1/4^ C - 1 9 5 1 .
- 1 1/4^ D-1951
1 1/4^ E-1951
• 1 1/4^ A-1951
1 1/4^ F-1951
1 1/4^. G-1951
2 1/8^ A-1953
1 3 / 8 ^ A-1954
Tax s e r i e s :
A-1943
B-1943
A-1944
B-1944
A-1945
Savings series:
C-1945
C-1946
C-1947
;
'.•.
Footnotes at end of table.
245,000,
12,500,
37,200,
10,100,
1,300,
130,150,
65,000,
22,000,
10,500,
(,465,600,
20,900,
35,000.
2,000,
103,000,
16,500.
89,800,
372,300,
2,000,
311,000,
740,100,
88,000,
2,400,
1,275,600,
69,600,
1,500,
32,900,
15,000,
751,000,
57,500,
353,000,
53,000,
32,000,
11,000,
77,000,
26,000,
77,000,
966,000,
35,000,
112,000,
114,000,
116,000,
- 113,000.00
10,000.00
10,000.00
3,700.00
47,300.00
2,000.00
11,100.00
400,000.00
12,000.00
103,000.00
1,000.00
15,000.00
15,000.00
2,000.00
29,000.00
• 920,000.00
• 6,000.00
46,000.00
36,000.00
68,000.00
$657,000.00
4,211,000.00
245,000.00
12,500.00
37,200.00
10,100.00
1,300.00
17,150.00
65,000.00
22,000.00
10,500.00
3,465,600.00
10,900.00
25,000.00
2,000.00
103,000.00
16/500.00
86,100.00
325,000.00
2,000.00
311,000.00
740,100.00
86,000.00
2,400.00
2,275,600.00
58,500.00
1,500.00
32,900.00
15,000.00
351,000.00
45,500.00
250,000.00
52,000.00
17,000.00
-.. 11,000.00
62,000.00
24,000.00
48,000.00
46,000.00
29,000.00
66,000.00
78,000.00
48,000.00
657,000.00
4,211,000.00
30,675.00
21,300.00
47,200.00
26,900.00
607,500.00
5,175.00
2,000.00
11,150.00
15,600.00
121,925.00
5,000.00
209,100.00
410,800.00
r
00
25,500.00
19,300.00
36,050.00
11,300.00
485,575.00
41,000.00.
,061,500.00
,700,200.00
H
>
DO
tn
36,000.00
852,400.00
1,289,400.00
Ul
LO
-J
TABLE 29 . --Changes in public lebt i s s u e s , fiscal year 1954--Continued
Issues
dviring year
Outstanding
June 30, 1953
Title
Transferred from
interest-bearing debt
Ul
LO
Reden?)tions
during year
Outstanding
June 30, 1954
00
MATURED DEBT ON WHICH INTEREST
HAS CEASED--Continued
Treasxiry notes—Continued
Savings series—Continued
C-1948
C-1949
:
C-1950
C-1951
D-1951
D-19 52
D-1953
D-1954
A-1954
$1,157,500.00
373,200.00
427,200.00
511,300.00
450,100.00
3,285,300.00
9,519,600.00
,
Total Treasxiry n o t e s . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C e r t i f i c a t e s of indebtedness:
Tax issue s e r i e s :
4 1/2^ T-10
4 3/4^ TM-1921
&o TJ-1921
f
ejo TS-1921
ef) TD-1921
5 1/2^ TS2-1921
5 3/4^ IM-1922
4 1/2^ TS2-1922
4 l/25t TD-1922
4 1/4^ TM-1923
3 3/4^ TS-1923
4 1/2^ TM-1924
Aio TM-1925
4 1/2^ TJ-1929
4 3/4^ TS-1929
4 l/45t TD-1929
4 3/Ai> TD2-1929
5 1/8^ TM-1930
4 7/8^ TJ-1930
1 1/8^ TS-1932
yf> TS2-1932
3 3/4^ TM-1933
2?6 First-maturing Mar. 15, 1933
l/Zf> TJ-1933.
Ai Tag 1933
1 1/4^ TS-1933
3/4^ TD-1933
4 l/4?t TD2-1933
,
i
$1,467,500.00
3,036,800.00
9,551,800.00
18,924,100.00
32,039,575.00
1,000.00
500.00
1,500.00
1,500.^0
2,900.00
1,000.00
1,000.00
500.00
1,000.00
1,000.00
500.00
1,000.00
1,000.00
1,100.00
1,500.00
3,000.00
1,50Q.00
3,000.00
1,500.00
3,500.00
100,500.00
12,500.00
6,350.00
2,500.00
11,000.00
10,000.00
60,000.00
16,000.00
.
$315,400.00
139,500.00
198,200.00
290,200.00
257,900.00
2,398,300.00
9,080,500.00
$842,100.00
233 700 00
229,000.00
221,100.00
192,200.00
887,000.00
2,206,600.00
3,036,800.00
9,551,800.00
15,336,850.00
35 626 825.00
1,000.00
500.00
1,500.00
1,500.00
2,000.00
1,000.00
1,000.00
500.00
1,000.00
1,000,00
500.00
1,000.00
1,000.00
1,100.00
1,500.00
3,000.00
1,500.00
3,000.00
1,500.00
3,500.00
100,500.00
12,500.00
6,350.00
2,500.00
11,000.00
10,000.00
60,000.00
16,000.00
X
tn
1
X
H
O
•n
X
vn
H
O
vn
>
Loan issue series:
4 1/2^ IVA-1918.
5 i / 4 ^ G-1920...
5 1/2^ H - 1 9 2 1 . . .
5 1/2^ A - 1 9 2 2 . . .
3 3/4^ A - 1 9 3 3 . . ,
7 / 8 ^ B-1944
7 / 8 ^ E-1944
7/8J& A-1945
7 / 8 ^ B-1945
7 / 8 ^ C-1945
7 / 8 ^ F-1945
7 / 8 ^ H-1945
7 / ^ k-19A6
7/&f> B-1946
7 / 8 ^ C-1946
7 / 8 ^ E-1946
7 / 8 ^ G-1946
7 / 8 ^ H-1946
7/8^ J-1946.
7 / 8 ^ K-1946
7 / 8 ^ A-1947
7/8^ B - 1 9 4 7 . . . . .
7/8J& D-1947
7/8^ E - 1 9 4 7 . . . . .
7 / 8 ^ F-1947
7 / 8 ^ H-1947
7 / 8 ^ J-1947
7 / 8 ^ K-1947
7 / 8 ^ L-1947
7 / 8 ^ A-194e
7 / 8 ^ C-1948
7/&f, D-194B
7 / 8 ^ E-1948
7 / 8 ^ F-1948
7 / 8 ^ H-1945
Vf) K-1948
1
1 1/8^ A - 1 9 4 9 . . .
1 1/8^ B - 1 9 4 9 , . .
1 l/&f, C - 1 9 4 9 . . .
1 l/&f, D - 1 9 4 9 , . .
1 1/8^ F - 1 9 4 9 . . .
1 1/4^ G - 1 9 4 9 . . .
1 1/4^ H - 1 9 4 9 . . ,
1 1/4^ A - 1 9 5 0 . . .
1 1/4^ B - 1 9 5 0 . . .
500,
1,000.
500.
1,000.
500,
153,000.
305,000.
257,000.
21,000.
144,000.
2,000.
373,000.
25,000.
6,000.
1,000.
549,000.
3,000.
40,000.
5,000.
322,000.
4,000.
1,000,
80,000.
100,000.
65,000.
2,000.
4,000.
20,000.
60,000.
20,000.
27,000.
7,000.
2,000,
15,000.
1,000.
20,000.
128,000.
125,000.
106,000.
17,000,
25,000.
85,000.
6,000.
77,000.
101,000.
26,000.00
18,000.00
31,000.00
17,000.00
247,000.00
3,000.00
245,000.00
3,000.00
168,000.00
4,000.00
2,000.00
1,000.00
26,000.00
15,000.00
500.00
1,000.00
500.00
1,000,00
500.00
127,000.00
287,000.00
226,000.00
21,000.00
127,000.00
2,000.00
126,000.00
22,000.00
6,000.00
1,000.00
304,000.00
3,000.00
40,000.00
2,000.00
154,000.00
1,000.00
80,000.00
98,000.00
65,000.00
2,000.00
3,000.00
20,000.00
34,000.00
5,000.00
27,000.00
7,000.00
>
CO
r
tn
2,000.00
15,000.00
1,000.00
110,000.00
5,000.00
5,000.00
10,000.00
6,000.00
8,000.00
^
20,000.00
18,000.00
120,000.00
106,000.00
17,000.00
20,000.00
75,000.00
69,000.00
101,000.00
Ul
LO
vO
TABLE 29. --Changes in public debt i s s u e s , fiscal year 1954 --Continued
Title
Outstanding
June 30, 1953
Issues
dxiring year
Ul
Transferred from
i n t e r e s t - b e a r i n g debt
Redemptions
during year
Outstanding
June 30, 1954
O
MATURED DEBT ON WHICH INTEREST
HAS CEASED--Continued
C e r t i f i c a t e s of indebtedness—Continued
Loan issues series—Gontinued
1 1/4^ C-1950
1 1/4^ D-1950.. . .•
;
1 1/4^ E-1950
'.
1 1/4^ F-1950
1 1/8^ G-1950
1 1/8^ H-1950
1 1/8^ A-1951...
1 7/8^ A-1952'
1 7/8^' B-1952
1 7/8^ C-1952
1 7/8^ D-1952
1 7/8^ E-1952...'
1 7/8^ F-1952
1 7/8^ A-1953
1 7/8^ B-1953
2$ C-1953.
2 1/4^ A-1954
2 5/8^ B-1954
2 1/2^ C-1954 (tax a n t i c i p a t i o n )
Total c e r t i f i c a t e s of indebtedness
Treasury b i l l s :
May 12, 1937
June 5, 1940
'.
Jxme 18, 1941
. Jan. 14, 1942
.June 3, 1942....June 10, 1942. . . . - . . . . • .
Feb. 3, 1943
•.
June 2, 1943
Jurie 9, 1943
June 8, 1944
Aug. 10, 1944
June 7, 1945
June 14, 1945
'
.'.
J Mar. 20, 1947.
.•
Dec. 18, 1 9 4 7 . . . .
Feb. 17, 1 9 4 9 . . ;
'
Sept. 8, 1949
•....
•
$10,000.00
. 14,000.00
78,000.00
31,000.00
5,000.00
• 110,000.00
216,000.00
315,000.00
334,000.00
90,000.00
67,000.00
345,000.00
381,000.00
947,000.00
4,850,000.00
$10,000.00
3,000.00
78,000.00
29,000.00
30,000.00
123,000.00
188,000.00
18,000.00
24,000.00
52,000.00
314,000.00
227,000.00
863,000.00
4,677,000.00
$423,000.00
1,389,000.00
9,497,000.00
2,649,000.00
11,347,950.00
13,958,000.00
7,604,000.00
$11,000.00
2 000.00
5 000 00
80,000.00
93 000.00
127,000.00
316,000.00
66,000.00
15,000.00
31 000 00"
154,000.00
84,000.00
173 000 00
423 000.00
1 389 000 00
9 497 000 00
2,649,000.00
17,701,950.00
< •
14,000.00
30,000.00
20,000.00
4,000.00
2,000.00
38,000.00
1,000.00
'6,000.00
26,000.00
95,000.00
••5,000.00
88,000.00
16,000.00
36,000.00
60,000.00
15,000.00
•50,000.00
14,000.00
30,000.00
20 000' 00
4,000i00
2 000.00
38,000.00
1,000.00
6,000.00 .
26,000.00
95"000.00
5,000.00
88,000.00
16,000.00
36,000.00
60,000.00
15 000 00
50,000.00
X
H
O
H
X
tn
00
tn
9
tn
H
O
'n
tn
tn
>
Sept. 28, 1950
Jan. 11, 1951
Feb. 15, 1951
Oct. 4, 1951
Nov. 8, 1951
Feb. 14, 1952
Mar. 15, 1952 (tax anticipation)..
Apr. 17, 1952
June 15, 1952 (tax anticipation)..
July 17, 1952
•
.
Aug. 14, 1952
Aug. 21, 1952
Sept. 4, 1952
Sept. 18, 1952
• Oct. 2, 1952
Oct. 30, 1952
Jan. 8, 1953
Feb. 5, 1953
Feb. 19, 1953
Mar. 5, 1953
- Mar. 12, 1953
Mar. 18, 1953 (tax anticipation)..
Mar. 19, 1953.
Mar. 26, 1953
Apr. 2, 1953
Apr. 9, 1953
Apr. 16, 1953
Apr. 23, 1953...
Apr. 30, 1953
May 7, 1953
May 14, 1953
May 21, 1953
May 28, 1953
June 4, 1953..'.
June 11, 1953
' June 18, 1953
June 19, 1953 (tax anticipation)..
June 25, 1953
July 2, 1953
July 9, 1953
July 23, 1953
• Aug. 6, 1953
Aug. 13, 1953
Aug. 27, 1953
Sept. 18, 1953 (tax antlciaptlon).
Oct. 1, 1953
Oct. 22, 1953
Oct. 29, 1953..:
Nov. 12, 1953
Nov. 19, 1953
Nov. 27, 1953
Dec. 3, 1953
Footnotes at end of table.
50,000.00
77,000.00
10,000.00
50,000.
77,000.
10,000.
10,000.
3,000,
.,900,000.
20,000,
2,000,
3,000.
1,000,
10,000,
41,000.
200,000.
12,000.
30,000.
12,000.
116,000.
55,000.
10,000.
3,000.
28,000.
139,000.
•33,000.
70,000.
47,000.
20,000,
120,000.
278,000.
1,000.
620,000.
20,000.
326,000.
176,000.
286,000.
110,000.
215,000.
,863,000.
! 382,000,
,
10,000.00
1,900,000.00
20,000.00
1,000.00
1 ,000.00
10 ,000.00
•41,000.00
200 ,000.00
12 ,000.00
30 ,000.00
12 ,000.00
116 ,000.00
,000.00
55'
10 ,000.00
3 ,000.00
18 ,000.00
•139 ,000.00
33 ,000.00
70 ,000.00
47 ,000.00
20 ,000.00
120 ,000.00
275 ,000.00
1 ,000.00
620 ,000.00
20 ,000.00
325 ,000.00
166 ,000.00
,000.00
286!
110 ,000.00
,000.00
215,
,000.00
,000.00
7,000.00
10,000.00
10,000.00
30,000.00
1,000.00
^ 1,000.00
20,000.00
75,000.00
80,000.00
35,000.00
40,000.00
.30,000.00
35,000.00
25,000.00
1,000.00
3,000.00
>
r
tr|
tn
00
1,000.00
10,000.00
7,000.00
10,000.00
10,000.00
30,000.00
1,000.00
^ 1,000.00
20,000.00
75,000.00
80,000.00
35,000.00
40,000.00
30,000.00
35,000.00
25,000.00
Ul
4^
TABLE 29. --Changes in public debt i s s u e s , fiscal year 1954--Continued
Title
Outstanding
June 30, 1953
Issues
during year
Transferred from
interest-bearing debt
Ul
Redemptions
during year
Outstanding
June 30, 1954
MATURED DEBT ON WHICH INTEREST
HAS CEASED--Continued
Treasury bills—Continued
Dec. 10, 1953
Dec. 17, 1953
Dec. 31, 1953
Jan. 14, 1954
Jan. 21, 1954
Jan. 28, 1954
Feb. 4, 1954
Feb. 11, 1954
Feb. 18, 1954
Feb. 25, 1954 '.
Mar. 4, 1954
Mar. 11, 1954
Mar. 18, 1954
Mar. 25, 1954
Apr. 1, 1954
Apr. 8, 1954
Apr. 15, 1954
Apr. 22, 1954
Apr. 29, 1954
May 6, 1954
May 13, 1954
May 20, 1954
May 27, 1954
June 3, 1954
June 10, 1954,
June 17, 1954
June 18, 1954 (tax anticipation)
June 24, 1954 (tax a n t i c i p a t i o n ) . . .
June 24, 1954
Total Treasury b i l l s
Treasury (war), savings c e r t i f i c a t e s :
Treasury savings c e r t i f i c a t e s :
Issued Dec. 15, 1 9 2 1 . . . .
Issued Sept. 30, 1922
Issued Dec. 1, 1923
Total Treasury savings c e r t i f i c a t e s . . . .
Total matured debt onwhich i n t e r e s t has ceased...
Prepayments—Treasury savings notes
$41,000.00
24,000.00
8,000.00
1 000 00
11 000 00
6,000.00
60,000.00
96,000.00
83 000 00
65 000 00
52,000.00
51 000.00
75 000 00
8 000 00
261 000 00
58,000.00
63,000.00
25,000.00
98 000 00
70,000.00
251,000.00
111,000.00
641,000.00
455,UOO.00
309,000.00
1 222 000.00
2,414,000.00
14,^45,000.00
930,000.00
$41,000.00
24,000.00
8,000.00
1,000.00
11,000.00
6,000.00
60,000.00
96,000.00
83,000.00
65,000.00
52,000.00
51,000.00
75,000.00
8,000.00
261,000.00
58,000.00
63,000.00
25,000.00
98,000.00
70,000.00
251,000.00
111,000.00
641,000.00
485,000.00
309,000.00
1,222,000.00
2,414,000.00
14,245,000.00
930,000.00
22,161,000.00
$59,805,000.00
$57,361,000.00
24,605,000.00
X
tn
no
B
H
O
•n
H
:i:
tn
00
tn
9
tn.
H
>
X
K!
O
H
X
tn
tn
>
00
C
X
11,650.00
61,725.00
21,950.00
3,475.00
1,625.00
11,650.00
58,250.00
20,325.00
5,100.00
95,325.00
363,535,670.26
$26,870.00
30,000.00
^ 30,000.00
491,744,040.00
90,225.00
184,164,735.00
671,141,845.26
TABLE 29. - - C h a n g e s in public debt i s s u e s , fiscal y e a r 1954--Continued
Title
Outstanding
June 30, 1953
Issues
during year
Transferred from
i n t e r e s t - b e a r i n g debt
Redemptions
dxiring year
Transferred t o
matxired debt
Outstanding
June 30, 1954
DEBT BEARING NO INTEREST
United S t a t e s savings stamps
Excess p r o f i t s tax refund bonds:
Total excess p r o f i t s tax refund b o n d s . . . .
$49,571,908.65
761,237.01
684,355.57
$17,108,877.30
$16,294,800.30
$50,385,985.65
93,225.28
100,407.88
^ 35.87
667 975 86
583,947.69
1,445,592.58
1 35.87
193,633.16
1,251,923.55
1,302,.000,000.00
190,641,585.07
52,917.50
277,219,111.50
1,966,640.18
3,715,089.00
149,000,000.00
40,000,000.00
1,411,000,000.00
190 641,585.07
52,917.50
253 620 521.50
1,966,429.75
3 712,194.75
Special notes of the United S t a t e s :
I n t e r n a t i o n a l Monetary Fxmd:
United S t a t e s notes ( l e s s gold reserve)
Thrift and Treasury savings stamps
23,598,590.00
210.43
1,894.25
1,826,612,844.48
181,994,097,813.15
80,089,128.14
166,108,841.43
266,054,290,831.86
$491,744,040.00
176,826,308,146.80
1,912 632,557.77
$491,744,040.00
271,222,080,498.21
r
tn
00
Deduct.
2 Amoxmts issued ' ' d retired for Series E, F, and J include accrued discoxmt; amounts outstanding are stated at current redemption values. Amoxmts issued, retired, and outstand=n
ing Tor Series G, H, and K are stated at par value.
Represents excess of unclassified redemptions over unclassified sales—deduct.
^ Represents issues on which there were no transactions dxiring the fiscal year 1954; for amount of each issue outstanding (unchanged since June 30, 1951) see 1951 annual report,
p. 772.
Ul
LO
544
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 30.--Public debt increases and d e c r e a s e s , and balances in general fund, fiscal years 1916-54
[in millions of d o l l a r s . On basis of daily Treasury statements, see "Bases of Tables"]
Public debt
outstanding
at end of
year
1915
1916
1917
1918
1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
Analysis of increase or decrease in public
debt
Increase or
decrease (-),
Due to excess Resulting in- Decreases due
in public
of expendi- crease (+') or to statutory
debt dxu-ing
decrease (-)
tures (+)
year
debt retirein general
or receipts
ments •
^
fund balance.
(-)
158.1
,
,
,
,
,
,
,
,
,
,
,
,
General fund
balance at
end of year
225.1
975.6
455.2
484,5
299.3
977.5
963.4
349.7
250.8
516.2
643.2
511.9
604.3
931.1
185.3
801.3
487.0
538,7
27 053,1
28 700.9
33 778.5
36, 424,6
37 164.7
40, 439.5
42, 967.5
961,4
48 422.4
72 696.1
136, 003.4
201, 682.2
258, 422,1
269, 286,4
258, 292,2
252, 770.4
252 357.4
257 222.0
255j 105.2
259j 071,1
266j 259,6
271;
•-48.5
+853.4
+9,033.3
+13,370.6
-212,5
-86.7
-313.8
-309.7
-505.4
• -250.5
-377.8
-635,8
-398.8
-184,8
-183.8
+902,7
+3,153.1
+3,068.3
+3,154.6
+2,961.9
+4-640.7
+2,878,1
+1,143.1
+2,710,7
+3,604,7
+5,315.7
+23,197,8
+57,761.7
+53,645.3
+53,149.6
+21,199.8
-206.0
^-6,606.4
+1,947.5
+2,592.0
-3,973.6
+4,271.8
+9,265.0
+3,092,7
270,068.2
Total,
33.8
1,750.5
9,479.6
13,029,3
-1,185.2
-321,9
-1,014.1
-613.7
-1,098.9
-734.6
-873.0
-1,131.3
-907.6
-673.2
-745.8
616,0
2,685.7
3,051.7
4,514.5
1,647.8
5,077.7
2,646.1
740.1
3,274,8
2,528.0
5,993.9
23,461.0
64,273.6
64,307,3
•57,678.8
10,739,9
-11,135,7
-5,994.1
478,1
4,587.0
-2,135,4
3,883,2
6,965,9
5,188.5
+272,620.1
+82,3
+897.1
+447.5
: -333.3
. -894,0
+192.0
-277.6
+98,8
-135,5
-17.6
-7.8
+24,1
+31.5
+61,2
-8,1
+153,3
• -54,7
+445.0
+1,719,7
-740.6
+840,2
-128.0
-337,6
+622,3
-947.5
+742.4
+358.0
+6,515.4
+10,662,0
+4,529,2
-10,459.8
-10,929.7
+1,623.9
-1,461.6
. +2,046,7
•
. +1,839,5
-387.8
-2,298,6
+2,096,2
. 1,1
8,0
78,7
427,1
422,7
402.9.
458.0
466.5.
487.4
519,6
540,3
549.6
553.9
440.1
412.6
.461.6
359.9
573.6
403,2
104,0
65,5
58,2
129.2
64,3
94,7
3,5
(*)
(*)
(*)
51,7
1.2
.9
,5
,4
240,4
1,137.5
1,585.0
1,251.7
357.7
549.7
272.1
370.9
235,4
217,8
210.0
234.1
265,5
326.7
318,6
471.9
417,2
862,2
2', 581.9
1,841,3
. 2,681,5
2,553,5
2,215,9
2,838.2
1,890.7
2,633.2
2,991.1
• 9,506,6
20,168.6
'24,697,7
14,237.9
3,308.1
4,932.0
3,470,4
5,517,1
7,356.6
6,968.8
4,670.2
6,766.5
+6,608.3
SUMMARY OF CHANGES IN THE PUBLIC DEBT, FISCAL YEARS 1916-54
fin millions of dollars]
Increase in debt on account of-Excess of expenditures in certain years
Net increase in general fxmd balance
286,914.1
6,608,3
:
293,522.4
Decrease in debt on account of-Statutory debt retirements
Retirements from surplus receipts in certain years
Net increase in debt since June 30, 1915
Public debt:
As of June 30, 1915
As of June 30, 1954
Net increase, as above
'.
; 9,160.2
14,294,0
,,
'
;
23,454.2
270,068.2
1,191.4
271,259.6
270 068.2
^- Less than $50,000.
<
^ Effective with the fiscal year 1948/ sta'tutory debt retirements have been excluded from budget expenditures; -they are shown here for purposes of comparison.
545
TABLES
T A B L E 31. --Statutory debt retirements, fiscal years 1918-54
[In thousands of dollars. On basis of par amounts and of daily Treasury statements through 1947, and (
basis of Public Debt accounts thereafter; see "Bases of Tables"]
• Bonds
Cumulative
sinking
fund
Fiscal year
1918
1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
1939
1940
1941..
1942
1943
1944
1945
1946
1947
1948. .
•
1949
1950
1951
1952
1953
1954
Repayments of
foreign
debt
received
Bcfnds
and notes for loans
received
from
for
Public
estate
Works
taxes
Administration
Franchise tax
receipts.
Federal
Reserve
Banks
PayComments
modity
from net
earnings, Credit
Federal Corporation
intermediate • capital
repaycredit
ments
banks^
Miscellaneous
gifts,
forfeitures, •
etc.
1,134
.........
•
•
.
Total....
'261,100
276,046
284,019
295,987
306,309
317,092
333,528
354,741
370,277
388,369
.391,660
412,555
425,660
.359,492
573,001
403,238
103,815
65,116
48,518
128,349
37,011
75,342
3,460
-1
7,922
72,670
73,939
64,838
100,893
149,388
159,179
169,654
179,216
181,804
176,213
160,926
48,246
93
3,141
26,349
21,085
6,569
8,897
47
2
20
73
: • . • : : > . : :
2,922
60,724
60,333
10,815
3,635
114
59
818
. 250
\ 2,667
4,283
18
680
.509
414
369
.--^
kt;;;;::;
IA
21
33,887
357
2,037
i
142
210
120
8,095
.....
....
1,634
178
261
394
300
285
387
8,028
746,636
7,498
1,815
839
551
241
6,972,263 1,579,605
1,501
685
548
315
134
1,321
668
66,278
18,246
149,809
8,993
25,364
18,393
13
2 5,010
393
555
93
208
63
5,578
3,090
- 160
^
61
85
53
21
15
556
1
14
• 139
12
16
16
5
4
3
2
4
Total
1,134
8,015
78,746
427,123
422,695
402,850
458,000
466,538
487,376
519,555
540 255
549,604
553,884
440,082
412,630
461,605
359,864
573,558^
403,240
103,971
65,465
58,246
129,184
64,260
94,722
3,463
2
2
4
45,509 -^209,828 1,011,636
- 81
^
7,758
^ 690
51,709
48,943
1,232
851
526
387
138,209
226,769
9,160,173
• The act of Mar. 4, 1923 (42 Stat. 1456, sec 206 (b)), requiring division of net earnings, was amended by
'
•
the act of May 19, 1932 (47 Stat. 159, sec.3): The act of Aug. 19, 1937 (50 Stat. 715, sec. 30), provides for
franchise tax.
2 Includes $4,842,066.45 written off the debt Dec. 31, 1920, on account of fractional currency estimated
to have been lost or destroyed in circulation.
• Beginning with 1947, bonds acquired through gifts, forfeitures, and estate taxes are redeemed prior to
^
maturity from regxilar public debt receipts.
" Represents payments from net earnings. War Daraage Corporation.
^
546
1954 REPORT OF THE SECRETARY OF THE TREASURY
T A B L E 32.--Cumulative sinking fund, fiscal years 1921^54
[in millions of dollars. On basis of Public Debt accounts, see "Bases of Tables"]
Available
Appropria- for expenditure during
tions
year^
Fiscal year
1921
1922
1923
1924
1925
1926.
1927
1928
1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
256.2
273.1
284.1
294.9
306.7
321.2
336.9
355.1
370.2
382.9
392.2
410.9
425.6
438.5
493.8
553.0
572.8
577.6
580.9
582.0
585.8
586.9
587.8
587.6
587.6
587.6
587.6
603.5
619.6
619.7
619.8
619.8
619.8
619.8
i
i
i
i
i
,
i
i
Total
Deduct cumulative expenditures
Debt retired^
Par amoxmt Cost (principal)
256.2
274.5
284.2
294.9
306.7
321.2
• 336.9
355.1
370.2
382.9
392.2
410.9
425.6
438.5
573.2
553.2
722.7
1,196.5
1,712.2
2,245.6
2,703.2
3,253.1
3,765.6
4,349.7
4,937.4
5,525.0
6,112.6
6,716.0
6,589.0
7,201.2
7,819.2
8,438.1
9,057.4
9,676.9
254.8
274.5
284.1
294.9
306.7
321.2
336.9
355.1
370.2
382.9
392.2
410.9
425.6
359.2
573.0
403.3
103.7
65.2
48.5
128.3
37.0
75.3
3.4
746.6
7.5
1.8
.8
.6
.2
746.6
7.5
1.8
.8
.6
,2
6,972,3
16,641.5
6,964.6
261.3
275.9
284.0
296.0
306.3
317.1
333.5
354.7
370.3388.4
391.7
412.6
425.7
359.5
573.0
403.3
103.7
65.2
48.5
128.3
37.0
75.3
3.4
6 964.6
9,676.9
Amount available each year includes unexpended balance brought forward frora prior year.
Net discount on debt retired through Jxme 30, 1954, is $7.7 million.
T A B L E 33. --Transactions on account of the cumulative sinking fund, fiscal year 1954
[On basis of Public Debt accounts, see "Bases of Tables"]
Unexpended balance July 1, 1953
Appropriation for 1954:
Initial credit:
(a) Under the -Victory Loan Act (2-l/2^ of the aggregate
amount of Liberty bonds and Vic-tory notes outstanding on July 1, 1920, less an amoxmt equal
to the par amoxmt of any obligation of f'oreign
governments held by the United States on July
1, 1920)
(b) Under the Emergency Relief and Construction Act
of 1932 (2-1/2^ of the aggregate amount of expenditures from appropriations made or authorized under this act)
,.
;
(c) Under the National Industrial Recovery Act (2I/25K of the aggregate amount of expenditures
from appropriations made or authorized under
this act)
Total initial credit
Secondary credit (the interest which would have been
payable during the fiscal year for which the appropriation is made on the bonds and notes purchased,
redeemed,, or paid out of the sinking fund during such
year or in previous years)"
$9,057,121,813.30
$253,404,864.87
7,860> 606.83
80,164,058.25
341,429,529.95
278,358,857.99
619,788,387.94
Total available, 1954
Securities retired in 1954
9,676,910,201.24
Unexpended balance June 30, 1954
9,676,910,201.24
547
TABLES
UNITED STATES SAVINGS BONDS AND TREASURY SAVINGS NOTES
T A B L E 3 4 . - - S u m m a r y of s a l e s a n d r e d e m p t i o n s of s a v i n g s b o n d s b y s e r i e s , f i s c a l y e a r s 1 9 3 5 - 5 4 a n d
monthly 1954
[ i n m i l l i o n s of d o l l a r s . On b a s i s of d a i l y Treasxiry s t a t e r a e n t s , s e e " B a s e s of T a b l e s " ]
Series
A-D^
F i s c a l y e a r o r month
Series E
and H 2
Series F
and J
Series G
and K2
Sales^ a t i s s u e p r i c e p l u s accrued
1935-46
1947
1948
1949
1950
1951
1952
1953
1954
4,592.6
107.5
110.1
100.7
67.8
24.6
discount
{*)
42,964.2
4,823.6
4,659.2
5,031.9
4,887.4
4,307.1
4,406.7
5,180.9
5,778.7
3,211.4
406.8
362.4
545.2
314.1
437.4
217.5
237,1
336.1
13,185,5
2,560.8
1,907.4
2,390.0
1,445.5
^ 1,523.3
^ 508.2
^ 372.7
^ 612.6
5,003.1
82,039.8
6,067,9
24,508.9
117,619.6
478.2
426.9
426.5
432.3
431.5
506.1
594.8
502.3
552.7
465.0
445.9
516.4
26.0
13.9
12.7
15.9
16.7
25.7
38.5
31.1
40.0
37.4
33.6
44,6
22.3
17.5
16.8
18.8
19.2
28.2
54.2
68.6
94.9
91.7
83.0
97.5
526.5
458,3
456.0
466.9
467.4
559.9
687.5
601.9
687.6
594,2
562.6
658.5
(*)
(*)
T o t a l t h r o u g h June 3 0 , 1 9 5 4 .
1953~July
August
September
October
November
December
1954~January
February
March
April
May
June
63,953.6
7,898,7
7,039.1
8,067.6
6,717.8
6,292.3
5,132.4
5,790.7
6,727.4
Rederaptions ( i n c l u d i n g r e d e m p t i o n s of matured b o n d s ) a t
cxirrent redemption value
1935^6
1947
1948
1949
1950
1951
1952
1953
1954
,
,
,
,
T o t a l t h r o u g h June 3 0 , 1 9 5 4 .
1953—July
August
September
October
November
December
1954—January
February
March
April
May
Jxme
,
,
,
,
,
^ 4,038.1
* 4,345.0
316.0
203,0
206,5
216.0
199.2
247.9
228.9
5 257,5
5 405,0
769.0
469.0
565.7
619,0
621,4
794,4
782.8
1,294,4
1,746,6
4,930.2
44,557.8
2,280.0
7,662.3
1.9
1.9
2.1
1.4
1.5
1.5
1.8
1.8
1.4
1.3
1.0
358.1
330.9
379,4
352.8
313.4
352.1
370.5
360.8
407.0
360.4
332.4
427.2
36,5
24.9
21,8
24.0
23.2
33,7
57.0
36.2
36.4
34.8
36.4
40.3
146.1
122.6
110.6
110.1
100.5
127,1
275.0
161.0
152.7
141.4
140.0
159.3
1,209,8
482.1
515.9
702,6
1,080.6
800.2
89.9
30.8
18.3
12,606,0
4,390.9
3,824.8
3,529,7
3,520.9
^ 4,294,7
^ 4,007,8
14,900.9
5,544.9
5,112.9
5,067.4
5,422.1
6,137.1
5,109.3
^ 5,620.9
^ 6,514.9
59,430.4
5 6 541.5
480.3
513.7
489.0
438.4
514.5
703.9
559.8
597.9
538.0
510.0
627.9
* Less than $50,000.
^ Not issued after Apr. 30, 1941. Sales figxires after that date represent accrued discount on outstanding
bonds, and adjustments.
^ Series G, H, and K are sta-ted at par.
^ See table 35, footnotes 6, 7, and 10
^ See table 35, footnote 5
^ Includes exchanges of Series 1941 F savings bonds for Treasury 3 l/4jS bonds of 1978-83.
^ Includes exchanges of Series 1941 G savings bonds for Treasury 3 1/455 bonds of 1978-83.
548
1954 REPORT OF THE SEC3?ETARY OF THE TREASURY
TABLE 35»---Sales and redemptions of Series E through K savings bonds by s e r i e s , fiscal y e a r s
1941-54 and monthly 1954
[ In millions of dollars]
Accrued
discoxmt
Fiscal year or month
Amoimt
outstanding^
Sales
plus
accrued
discount
Original
Interest
purchase Accrued
discount bearing
price^
Series E and H
42,112.6
4,287,3
4,026.1
4,278.5
3,992.9
3,272.1
3,296.1
4,060.6
1941-1946
1947
1948
1949
1950
1951
1952
1953
1954
^ 4,652.9
Total through June 30,
1954
1953~July
August
September
October
November
Deceraber
1954—January
February
March
April
May
June
'.
..
-.
851.6 42,964.2 12,606,0
536.3 4,823.6 • 4,390,9
633.1 4,659,2 3,824,8
753.4 5,031.9 3,529.7
894.6 4,887.4 3,520.9
1,035,0 4,307.1 4,294.7
1,110.6 4,406,7 4,007.8
1,120.3 5,180.9 4,038.1
1,125.9 5,778.7 •^ 4,345.0
511,0
288,0
689,0
367.9
326.1
987.3
582.6
538,^2
791.0
108.6
80.7
• 83.3
75.5
92.4
124.7
110.2
80.5
78.5
75.3
92,2
124.0
478.2
426.9
426,5
432.3
431.5
506.1
594.8
502.3
552,7
465.0
445.9
516.4
358.1
330.9
379.4
352.8
313.4
352.1
370.5
360.8
407.0
360.4
332.4
427,2
30,358.2
30,791.0
31,625.3
33,127.4
34,494.0
34,506.4
34,905.4
36,048.2
37,4.82.0
2,476.7 37,482.0
8,060.7 82,039.8 44,557.8
369,5
346.3
343.2
356.8
339.1
381,4
484.7
421.8
474.1
389,8
353.7
• 392.4
95.0
102.9
135.8
161,9
194.7
307.3
425.1
499.9
554.0
342.7
280,0
331.0
289.1
269.8
308.6
329,5
308.3
346.6
310.0
289,0
386.3
15.4
50.9
48.4
63.7
43,6
43,5
40.9
52.5
60,4
• 50.3
43.4
41.0
36,168.2
36,264.3
36,311.4
36,390,9
36,509,0
36,663.0
36,887.4
37,028.9
37,174.5
37,279.2
37,392.8
37,482.0
3.8
5.8
8.7
11,8
13,9
21.0
21.4
40.8
80.9
15,311.9
17>,607.5
19,105.1
21,205.2
22,147.2
23,065.6
22,779.6
21,837.4
20,579.'2-
Series F, G, J, and K
1941-1946....
1947.
1948
1949
1950
1951
1952
1953
1954
16,333.7
2,920.4
2,208.6
2,862.5
1,679.9
1,870.8
629.3
501.5
^ 841.0
Total through June 30,
1954
1953~July
August
September
October.,.,
Noveraber
.December
1954—January
February
March
April
May
Jxme
'
Footnotes at end of table.
63.2 16,396.9 1,085.0
47.2 2,967.6
671.9
61.2
772.2
2,269.8
72.6 2,935.1
835.0
82.8 1,762.6 • 820.6
89.9
1,960.7 1,042.3
96.4
725.6 1,011.7
108.3
609.8 1,552.0
107,7
948.6 '2,151.6
1,081.3
666.1
763.5
823.3
806.7
1,021.3
990.2
1,511.2
2,070.7
9,942,4
1,734,2
182.6
147.5
132.4
134.1
123.6
160.9
332.0
197.2
189.1
176.2
176.4
199.6
181.6
141.2
125.4
128.9
120,0
154.5
322.5
187.6
179.0
168.6
168.8
192 ..5
729.2
32.7
25.1
24.9
27,1
29.4
41.8
76.6
93.5
127.8
121.5
110.1
130.3
15.7
6.3
4.5
7.5
6.5
12.0
16.0
6.2
7.1
7.6
6.5
11.7
48.3
31.4
29.4
34.6
35.9
53.8
92.7
99.7
135.0
129.2
116.7
142.0
20,579.2
1.0
6.3
6,9
5.2
.3.6
6.3
9,5
9,6
10.1
7.6
7.6
7.1
21,703.1
21,587.0
21,484.0
21,384.6
21,296.8
21,046.9
20,848.2
20,768.6
20,727?. 7
20,687.4
20,632.7
20,579.2
142.9
102.3
84.4
71.1
64.4
59.3
55.2
549
TABLES
TABLE 35. --Sales and redemptions of Series E through K savings bonds by s e r i e s , fiscal y e a r s
1941-54 and monthly 1954--Continued ,
[in millions of d o l l a r s ]
Redemptions
Fiscal year or month
Sales
Accrued
discoxmt
Sales plus
accrued
discoxmt
Total
Series E
1941-1946
1947
1948
1949
1950
1951
1952
1953
1954
i,
Total through June 30,
1954
:
1953__July
August
September
October
November.............
February
March
April
May
Original
purchase
price!
Amoxmt
out- ^
standing2
Accrued
(interest
discoxmt^ bearing)
•
95,0
102.9
135.8
161.9
194.7
307.3
425,1^
499.9
554.0
30,358.2
30,791.0
31,625.3
33,127.4
34,494.0
34,506.4
34,875.4
35 663.6
36,458.0
42,112,6
4,287.3
4,026.1
4,278.5
3,992.9
3,272,1
3,266,1
3,700.3
* 3,988.0
851.6
536.3
633.1
753.4
•894.6
1,035.0
1,110.6
1,120.3
1,125.9
12,606,0
42,964.2
4,823.6
4,390.9
4,659.2
3,824.8
5,031.9
3,529.7
4,887.4
3,520.9
4,307.1 5 4,294.7
4,376.7 5 4,007.8
4,820.6 5 4,032.3
.5,113,9 ^5 4,319.4
12,511.0
4,288.0
3,689.0
3,367.9
3,326.1
3,987.3
3,582,6
3,532.4
•3,765.4
72,923.8
8,060.7
80,984,6
44,526.5
42,049.7
2,476,7
36,458.0
108.6
80.7
83.3
75.5
92.4
124.7
110.2
80.5
78.5
75.3
92.2
124.0
435.6
389.5
384,7
388,9
390,9
459,1
502,2
433,3
478,1
406.3
392.8
452.5
356,7
329.3
377,7
351,0
311.8
350,0
368.6
358.7
404.5
357.9
329.5
^ 423.6
341.3
278.4
329.4
287.2
268.2
306.6
327.7
306.2
344.1
307.5
286.1
382.7
15,4
50,9
48.4
63.7
43.6
43.5
40.9
52,5
60,4
50,3
43.4
41.0
35,742,5
35,802.6
35,809,6
35,847,6
35,926,7
36,035.7
36,169.3
36,243.8
36,317,4
36,365,9
36,429,1
36,458.0
326.9
308.8
301,4
313.4 •
298.5
334.4
392,0
352,8
399.5
331.1
300.5
^ 328.6
•
Series H^
30.0
360.3
^^664,9
1952
1953
1954
Total through June 30,
1954
.....
Mav
Footnotes at end of t a b l e .
30,0
360.3
664.9
5.7
*25.5
5*7
25.5
30.0
384.6
1,023,9
1,055.2
1,055.2
31.3
31.3
1,023.9
42,6
37.4
41.8
43.4
40.6
47,0
92,6
69,0
74,6
58.7
53,2
63,9
1.4
1.6
1,7
1.9
1.6
2.0
1.8
2,1
2,5
2.5
2.8
^ 3.6
1.4
1.6
1.7
1,9
1.6
2.0
1.8
2.1
2.5
2,5
2,8
3,6
425.8
461.6
501.8
543,3
582,3
627.3
718.1
785,1
857,1
913.3
963.6
1,023.9
42,6
37,4
41.8
43,4
40,6
47.0
92.6
69,0
74.6
58.7
53.2
' 63.9
^
550
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE
3 5 , - - S a l e s a n d r e d e m p t i o n s of S e r i e s E t h r o u g h K s a v i n g s b o n d s b y s e r i e s , f i s c a l y e a r s
1941-54 and monthly 1954--Continued
[ I n m i l l i o n s of
Accrued
discount
Fiscal year or raonth
dollars]
Amount outstanding'^
Sales.
plus
accrued
discoxmt
Accrued
discoxmt^
Interest
bearing
3.8
5.8
8.7
11.8
13.9
21.0
21.4
40.8
80.9
2.895,4
3,099,2
3,255,1
3,584.3
3,699.2
3,888.7
3,853.3
3,705.3
3,388.8
207, <
Original
purchase
price^
3,388.E
1.0
6.3
6.9
5.2
3.6
6.3
9.5
9.6
10.1
7.6
7.6
7.1
3,685.5
3,667.3
3,651.5
3,635.5
3,619.2
3,534.8
3,507.2
3,A8A.8
3,461.4
3,437.6
3,410.7
3,388.8
S e r i e s F'''
1,148.2
359.7
301.2
• 472.6
231.3
' 347.5
97.1
1941—1946
1947
1948
1949
1950
1951
1952
1953
1954
•^ 2.9
Total through June 30
1954
3,211.4
406.8
362.4
545,2
314.1
437.4
193.5
107.7
108.0
15.5
6.2
4.4
7.4
6.2
11.8
15.8
6.0
6.9
7.4
6.2
11.4
13,185,5
2,560.8
1,907.4
^2,390.0
, 1,448.5
|5'1,523.3
' 422.3
316.0
203.0
206.5
216.0
199.2
247.9
228.9
255.6
'' 3 9 4 . 4
312.3
197.2
197,8
204,2
185.3
226.9
207.4
214,9
313,6
2,267.5
726.0
1953—July. .
•
August
September
October
November
December
1954—January
February
March
April
May
Jxme
1941-1946
1947
1948
1949
1950
1951
1952
1953
1954
63,2
47.2
61.2
72.6
82.8
89.9
96.4
107.6
105. L
15.5
6.2
4.4
7.4
6.2
11.8
15.8
6.0
6.9
7,4
6,2
14.2
35.3
24.4
20.2
23.3
22.5
33.2
56.6
35.3
35.9
34.1
35.4
* 38.1
34.3
18.1
13.3
18.2
18.9
26.8
47.1
25.7
25.8
26.5
27.9
31.0
13,185.5
2,560.8
1,907,4
2,390.0
1,448.5
1,523,3
422,3
.1
13.4
769.0
469.0
565.7
619.0
621.4
794.4
782.8
1,288.7
1,726.2
769.0
469.0
565.7
619.0
621.4
794.4
782.8
1,288.7
1,726.2
12,416.5
14,508.3
15,850.0
17,620.9
18,448.0
19,177.0
18,816.5
17,527.9
15,789.8
144.3
119.6
109.0
108.6
99.0
125.7
273.5
159.6
151.2
139.9
138.2
157.5
144.3
119.6
109.0
108.6
99.0
125.7
273.5
159.6
151.2
139.9
138.2
157.5
17,383.5
17,264.0
17,154.9
17,046.3
16,947.3
16,741.7
16,495.5
16,347.0
16,203.3
16,067.4
15,931.9
15,789.8
T o t a l t h r o u g h June 30
1954
1953—July
Axigust.
September
October
November
December
1954—Jginuary
February
March
April
May
Jxme
F o o t n o t e s a t end of t a b l e .
63.0
49.8
43.0
37.3
34.5
32.1
30.1
15,789.)
79.8
52.5
41.4
33.8
29.9
27.2
25.2
TABLES
551
TABLE 35. --Sales and redemptions of Series E through K savings bonds by s e r i e s , fiscal years
1941-54 and monthly l954--Continued
[In millions, of dollars]
Accrued
discoxmt
Fiscal year or month
Redemptions
Sales
plxis
accrued
discoxmt
Original
purchase
price-'-
Accrued
discount-'-
Amount
outstanding2
(interestbearing)
()
*
24.0
151.5
369.0
Series J^°
1952
1953
1954
,
,
24.0
128.8
• 225.5
Total through June 30j
1954
378.3
1953—July
Augxist
September
October
November
December
1954—January
February
March
April
May
June
10.4
7.6
8.1
8.4
10.2
13.6
22.4
24.9
32.9
29.8
27.1
* 30.0
0.7
2.5
24.0
129.4
228.1
1.9
10.6
1.9
10.5
1.2
.5
1.5
.7
1.2
.5
1.5
.7
.6
.5
369.0
10.5
7.7
8.3
8.5
10.5
13.9
22.7
25.1
33.1
30.0
27.5
30.4
.9
.5
.7
1.0
2.2
.9
2.1
160.8
168.1
174.8
182.6
192.5
205.8
228.1
252.3
284.9
314.2
340.8
369.0
452.7
1,031.5
Series K^O
1952
1953
1954
5 85.9
5 372.6
* ' 599.2
Total through June 30,
1954
1953—July
Axigust
September
October
November
December
1954—January
February
March
April
May
June
85.9
85.9
372.6
599.2
5.7
20.3
5.7
20.3
22.3
17.5
16.8
18.8
19.2
28.2
54.2
68.6
94.9
91.7
83.0
84.1
1.8
3.1
1.6
1.5
1.5
1.4
1.4
1.4
1.5
1.5
1.9
1.9
1.8
3.1
L.6
1.5
1.5
1,4
1.4
1.4
1.5
1.5
1.9
1.9
1,031.5
1,057.6
22.3
17.5
16.8
18.8
19.2
28.2
54.2
68.6
94.9
91.7
83.0
"* 84.1
473.2
487.7
502.8
520.1
537.8
564.6
617,4
684.5
778.0
868.2
949.3
1,031.5
NOTE.—Details by months from May 1941 for Series E, F, and G bonds (and from May 1935 for Series A-D
bonds) will be foimd in the 1943 annual report, p. 605, and in corresponding tables in subsequent reports.
Monthly detail of the fiscal year 1952 for Series H, J, and K bonds will be found in the 1952 annual report
p. 629 and p. 630.
*Less than $50,000.
^ Estimated.
^ Amounts outstanding are at cxirrent redemption values, except for Series G, H, and K, which are stated
at par.
^ Matured F and G bonds outstanding are included in the interest-bearing debt until all bonds of the annual
series have matured, when they are transferred to matxired debt upon which interest has ceased.
^ Issues and redemptions of Series E, H, F, G, J, and K savings bonds are overstated due to the erroneous
inclusion of re-issue transactions in the daily Treasxiry statement figxires for the month of Jxme 1954.
^ Includes exchanges of matxired Series E bonds for Series G bonds beginning with May 1951 and for Series K
bonds beginning with May 1952.
^ Sales of Series H began June 1, 1952.
" Sales of F and G were discontinued after April 30, 1952.
^
* Includes sales to institutional investors in July 1948. See 1948 annxial report, p. 194.
' Includes sales to institutional investors during October, November, and December 1950.- See 1951 annual
report, p. 177.
^" Sales of Series J and K began May 1, 1952.
552
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE.36,--Sales of Series E through K savings bonds by denominations, fiscal years
1941-54 and monthly 1954
[On basis of daily Treasury statements and reports of sales]
Fiscal year
or month
Total,
all denominations •
'
•
$25
$50
$200^
$100
$500
$1,000
$5,000
$10,000^
Series E and H sales, in millions of dollars at issue price
1941-46
1947
1948
1949
1950
1951
1952
1953
1954
1953—July
August....
September.
October..,
Noveraber..
December..
1954—January...
February..
March.....
April..,..
May
June
42,112.6 1 3 , 7 9 6 . 3
860.2
4,287.3
677.7.
4,026.1
738.7
4,278.5
734,1
3,992,9
782.8
3,272.1
950.6
3,296,1
1,019.6
4,060.6
1^ 4,652.9 1 , 0 6 6 . 9
-
5,713,4
408.6
371.3
428.4
444.0
442.0
492.3
538.9
588.2
!,659,6
585,2
583.2
641.3
649,1
573,7
566.9
615.8
660.7
196.6
120,1
122,4
137.4
137.5
117.8
108.0
119,0
128.1
5,181,7
616,7
589,2
588,4
529.7
388.6
357.0
482.4
554.6
8,432.0
1,680.8
1,678.3
1,741.3
1,496.0
967.2
810.7
1,140.1
1,359,8
81.3
163,6
3.7
63.4
131.0
369.5
346.3
343.2
356.8
339.1
381.4
484.7
421.8
474.1
339,8
353.7
' 392.4
88.0
85.0
85.1
88.8
87,4
94,4
91.6
82.2
99.1
88.1
84.6
92.5
47.6
45.6
47.3
48,2
46,851.8
51.8
45.3
55.1
48.5
47.0
53.2
53.9
51.7
52.1
53.2
50.7
57.4
60.0
54.6
64.2
54.1
51.6
57.2
10.9
10.0
10.0
10 ^4
9.8
11.1
12.3
10.6
12.4
10.5
9.5
10.6
45.4
41.9
40.8
42.9
40.1
44.6
59.9
53.2
57.2
44.9
39.9
43.7
107.5
97.3
92.3
96.4
88.7
102.6
166.1
142.8
151.9
114.6
94.6
105.0
9.8
8.8
9.3
10.0
9.6
, 11.2
24.2
17.6
18,6
14.9
13.6
16.1
6.5
6.0
6.4
6.8
6.0
8.4
18.7
15.4'
15.6
14.1
. 12.9
14.1
1,047,722
71,356
58,971
64,576
64,304
64,299
74,136
• 80,485
- 85,419
^
735,803
45,876
36,146
39,400
39,150
41,751
50,701
54,380
56,903
152,358
10,896
9,901
11,425
11,841
11,786
13,129
14,372
15,686
115,462
7,803
7,777
8,550
8,654
7,649
7,559
8,211
8,810
1,311
801
816
916
917
786
720
794
854
7,0116,736
6,786
7,035
6,866
7,502
7,514
6,713
8,036
7,049
6,740'
* 7,432
4,695
4,531
4,541
4,736
4,659
5,035
4,885
4,386
5,287
4,701
4,512
4,935
1,270
1,216
1,260
1,286
1,249
1,381
1,381
1,208
1,468
1,295
1,252
1,419
718
689
695
709
676
766
800
727
856
722
72
67
67
70
65
74
82
71
83
70
63
71
Series E and H sales, in thousands of pieces
1941-46
1947
1948
1949
1950
1951
1952
1953
1954
1953—July
August....
September.
October...
November..
December..
1954—January,..
February.,
March
April.....
May
June
Total, all
denominations
$25'
116
107
104
109
102
114
152
135
145
114
101
110.
$1,000
$500
$100
13,818
1,645
1,571
1,569
1,413
1,036
948
1,243
1,411
11,243
2,241
2,238
2,322
1,995
1,290
1,076
1,462
1,708
()
*
136
124
116
121
112
129
207
180
190
144
118
. 130
$5,000
$10,000
$100,000
Series F and J sales, in millions of dollars at issue price
1941-46.
1947
1948
1949^...
1950
1951^..
1952....
1953
1954
1953—July
Axigxist....
September.
October...
November..
December..
1954—January
February..,
March
,
April
,
May
June
,
3,148.2
359.7
301.2
472.6
231.3
347.5
121.1
128.8
' 228.4
^
100.0
• 5.9
4.9
4.0
3.7
2.9
2.7
2.7
3.7
160.7
11.6
10.5
8.0
7.1
5.2
4.6
4.4
6.0
828,8
89,0
72.0
54.9
48.7
33.2
26.6
25.1
36.0
642.1
72.1
59.0
51.0
•37.5
29.5
20.2
20.3
27.8
10.4
7,6
8.2
8.4
10.2
13.6
22.4
24.9
32,9
29.8
27.1
'* 32.9
.2
.2
.2
.2
.2
.3
.4
.3
.4
.3
.3
.3
.4
.5
.7
'2.1
1.5
1.9
2.2
2.3
2.7
3.9
3.6
4.4
3.5
3.5
4.4
1.6
1.2
1.3
1.9
1.6
1.9
3.1
3.0
3.2
2.9
2.8
3.2
Footnotes at end of table.
1,397.9
180.3
154.2
354.2
133.8
276.4
59.9
58.9
106.3
5.2
4.1
3.8
3.1
4.4
6.1
11.3
11.2
15.3
13.3
13.3
15.3-
6.8
17.1
48.1
1.3
2.1
3.0
6.1
8.8
9.1
6.5
8.7
553
TABLES
TABLE
36..--Sales of Series E through K savings bonds by denonninations, fiscal years 1941 -54
and monthly 1954--Continued
Fiscal year or month
Total, all
denominations
$25
$100
$500
$1,000-
$5,000
$10,000
$100,000
Series F and J sales, in thousands of pieces
1941-46
1947
1948
1949^
1950
19517
1952
1953
1954
4,276
317
260
239
190
163
117
115
*160
1,009
43
31
28
26
21
18
17
22
1953—July.
August...
September,
October..
• November.
Deceraber,
1954—January..
February.
March.....
April....,
May
June
9
7
8
10
10
13
1
1
1941-46
,,..,
1947
,
1948...
1949^
,
1950
'...,
1951'^ ^
1952^
,
1953^
1954^
1953—July
,
Axigust. ..,
September,
October...
November.,
Deceraber.,
1954—January..,
February.,
March
April....,
May
Jxme
13,185.5
2,560.8
1,907.4
2,390.0
1,448.5
1,523.3
508.2
372.7
^^612.6
22.3
17.5
16.8
18.8
19,2
28.2
34.2
68.6
94.9
91.7
83.0
^ 97.5
1,351
79
67
54.
50
39
37
37
50
434
31
28
22
19
14
• 13
1,120
120
97
174
19
16
189
24
21
48
18
37
(*)
3
2
(*)
(*)
{*)
(*)
(*)
(*)
(^)
(*)
(^)
(*)
(*)
(.
^)
(^)
{*)
Series G and K sales, in raillions of dollars at issue price
386,2
38.7
31.8
25.7
22.5
15.4
5 11.2
9 (*)
946.9
157.0
125.4
96.1
80.4
52.5
44.3
26.3
24.5
2.1
1.5
1.5
1.6
1.4
1.7
2.5
2.3
2.7
2.0
2.1
3,1
4,052.9
849.4
650.1
481.5
'420.4
256.1
181.5
94.5
107,1
7.4
5,6
5.4
5.7
5.4
6.8
11.3
10.5
13.0
10.9
11.2
13.7
2,471.2
540.2
403.5
295.2
263.0
151.4
94.1
61.4
93.0
5.5
3.5
3.6
3.7
3.7
5.2
9.4
9.0
11.7
10.6
10.4
16.6
5,328,3
975,4
696.5
1,491.5
662.3
1,047.9
146.0
127.1
243.1
6.0
5.7
5.6
7.1
7.2
11.0
22.6
25,9
35.6
36,0
36.7
43.?•
. 31.0
63.4
144.7
1.2
1.1
.6
.7
1.5
3.4
8.4
20.8
31.8
32.3
22,6
20.3
Series G and K sales, in thousands of pieces
1941-46
1947..
1948
1949^
1950
1951'' 8
1952^
1953^
1954^
1953—July
Axigust....
September.
October...
November..
December.,
1954—January..,
February..
March
April
May
June
10,835
1,756
1,370
1,139
925
650
416
173
^ 195
13
10
10
10
10
12
21
20
25
21
21
^ 27
3,862
387
318
257
225
154
9 112
n
1,894
314
251
192
161
105
89
53
47
4
3
3
3
3
3
5
5
5
4,053
849
650
482
420
256
181
94
105
494
108
81
59
53
30
19
12
18
70
149
66
105
15
13
24
1
1
' 1
()
^
14
NOTE.—Details of amounts of sales by months beginning May 1941 will be found in the 1943 annual report,
p. 611, and in corresponding tables in subsequent reports.
t^Less than $50,000 or 500 pieces.
^ Total includes $10 denomination Series E bonds sold, t« Armed Forces only, from June 1941 through Mar.
1950. Details by years will be found in the 1952 annual report, p. 631.
^ Sale of $200 denomination Series E bonds began in October 1945.
• Beginning April 1954 includes sales of $100 thousand denomination Series E bonds which are pxirchasable
^
only by trustees of employees' savings plans.
^ See table . 35 footnote 4.
' Sale of $25 denoraination Series F bonds was authorized in December 1941.
^ See table 35, footnote 8.
* See table 35, footnote 5.
'' See table 35, footnote 9.
'
' $100 denomination not offered for Series K.
554
19-54 REFORT OF THE SECRETARY OF THE TREASURY
TABLE 37. - - R e d e m p t i o n s of S e r i e s E through K savings bonds by denominations, fiscal y e a r s 1941-54
and monthly I 954^
[in thousands of p i e c e s . On basis of daily Treasury statements and r e p o r t s from Bureau'of the Public Debt]
Fiscal year or
raonth
Total, all
denorainations^
$25
$50
$200
$100
$500
$1,000
$5,000
$10,000
Series E and H redemptions
1941-46
1947
1948
1949
1950
1951^
1952^
19533
1954^
1953—July
August
Septeraber...
October
November....
Deceraber
1954—January
February....
March
April
May
June
.,.
434,745
123,725
93,438
79,646
76,109
82,875
76,403
81,983
* 90,387
8,403
6,623
7,949
6,654
6,505
7,742
8,087
6,843
8,108
• 7,417
6,989
' 9,069
^
Total, all
denominations
344,030
88,836
• 65,331
54,809
52,101
54,840
51,649
56,734
62,941
5,903
4,614
5,555
4,559
4,526
5,471
5,740
4,675
5,603
5,153
4,876
6,265 1
53,808
17,872
14,302
12,623
12,346
14,134
12,662
13,535
15,084
1,392
1,104
1,326
1,113
1,088
1,278
1,319
1,137
1,355
1,250
1,176
1,547
76
189
246
284
334
466
371
342
357
34
27
32
26
25
28
27
28
32
30
29
37
1,657
900
1,004
1,035
1,088
1,472
1,291
1,106
1,109
97
84
97
86
75
82
97
101
103
89
81
115
2,203
1,105
1,115
1,077
• 1,069
1,351
1,211
1,112
1,151
99
86
100
94
83
89
95
102
107
93
86
118
$1,000
$500
$100
$25
25,406
10,713
9,387
8,450
8,155
9,911
8,777
8,840
9,480
848
687
814
757
689
772
787
780
885
779
722
960
1
{*)
()
*
(•*)
()
*
(•*)
()
*
$10,000
$5,000
(*)
$100,000
Series F and J redemptions
1941-46
1947
1948
1949
1950
1951
1952
1953
1954
1953—July
,
August
September...
October
November....
Deceraber
1954—January
February.....
March
April
May
June
442
272
306
321
305
304
236
230
*359
39
15
15
20
24
30
40
26
33
34
,38
*45
Footnotes a t end of t a b l e .
98
61
79
86
83
73
55
46
51
8
2
3
3
3
5
4
3
4
4
6
7
139
84
94
99
95
87
69
67
119
13
4
5
5
8
9
12
9
12
12
46
29
31
31
30
30
23
23
41
4
2
2
2
3
3
4
3
4
16
5
t
123
75
80
81
77
88
66
69
110
10
5
5
7
7
10
14
9
10
10
20
12
12
12
11
13
10
11
17
2
1
1
1
1
1
2
2
1
1
13
2
16
11
10
11
9
13
15
15
21
3
1
1
1
1
2
4
2.
1
2
2
(*)
(•*)
()
*
1
555
TABLES
T A B L E 37, --Redemption of Series E through K savings bonds by denominations, fiscal years 1941-54 and
monthly 19541--Continued
[In thousands of pieces. On basis of daily Treasury stateraents and reports from Bureau of the Public Debt]
Fiscal year or month
Total, all
denominations
^5
$100
$500
451,000
. 10,000
f
$5,000
$100,000
Series G and < rederaptions
1952
1953
1954
1953
July
W
309
188
198
213
211
237
206
245
379
29
23
24
25
25
31
40
32
36
35
39
41
753
474
553
604
617
728
648
863
* 1,226
95
78
79
78
77
96
146
108
115
110
117
*126
1947
1948
1,
April
^
®
130
85
102
112
118
137
119
141
199
15
12
13
13
13
16
22
18
19
18
20
21
33
20
24
27
27
34
31
51
68
5
5
4
4
4
5
9
6
6
6
6
7
257
167
212
235
246
297
264
369
504
•39
33
33
32
32
40
60
45
47
45
47
51
25
14
16
17
16
24
28
57
76 •
7
6
5
5
. 4
5
16
7
6
5
5
6
()
^
()
*
()
^
()
*
C^)
(*)
()
-
*Less than 500 pieces.
^ ^ Rederaption data presented in annual reports prior to 1950 were on a different basis and therefore are
not strictly comparable with the data in this table.
^ Total includes redemptions of $10 denomination Series E bonds. Detail by fiscal years was last shown ii
the 1952 annual report, p. 633. Thereafter monthly detail for each fiscal year appears in a footnote to
the redemptions by denominations table of successive annual reports. Details in thousands of pieces by
months for the fiscal year 1954 follow:
July
Aug,
Sept,
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
Jxme
Total
30
21
25
19
17
22
22
20
22
21
19
26
263
^ Includes exchanges of matured Series E bonds for Series G bonds beginning May 1951 and for Series K
bonds beginning May 1952.
^ See table 35, footnote 4.
556
1954 REPORT OF THE SECRETARY OF THE TREASURY
T A B L E 38.--Sales of Series E and H savings bonds by States, fiscal years 1953, 1954, and cumulative
[in thousands of dollars, at issue price. On basis of reports received by the Treasury Departraent,
with totals adjusted to basis of daily Treasury statements]
Series E and H bonds
Fiscal yaar
1954
Alabama
Arizona
Arkansas
Ca,lif ornia
Colorado
Connecticut
Delaware
District of Colurabia
Florida
Georgia
Idaho
Illinois
Indiana,,
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Harapshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
'
,
•....
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
,
Texas
Utah
Vermont
,
Virginia
,
Washington
,
West Virginia
,
Wisconsin
Wyoming
Canal Zone
Hawaii
Puerto Rico
Virgin Islands
Other possessions
Adjustment to daily Treasury s-bateraent,
Total
32,786
14,036
21,928
216,755
28,954
. 53,324
7,949
39,803
47,440
43,030
7,454
350,904
116,538
108,570
71,426
41,484
32,526
12,439
47,964
97,265
232,967
67,197
21,972
114,522
21,232
75,475
3,660
7,847
154,779
8,421
441,341
37,025
18,152
260,441
50,458
26,050
349,081
14,571
22,213
25,455
35,620
122,195
14,446
3,821
61,767
52,966
41,131
91,279
7,520
1,738
13,995
1,842
93
36,245
15,198
24,662
262,997
33,804
60,931
9,920
40,901
55,261
46,172
9,129
419,897
143,594
142,770
76,792
49,182
38,596
13,926
55,243
104,680
278,602
82,525
25,835
133,961
25,308
108,518
5,145
8,248
174,679
10,420
465,725
41,927
21,302
304,318
57,065
29,184
396,496
14,148.
23,750
31,528
41,308
142,286
16,002
4,550
69,573
60,799
49,134
112,204
8,560
1,902
13,761
1,836
63
+266,762
+252,313
4,060,609
4,652,875
May 1941June 1954
756,921
256,216
449,046
5,353,052
. 578,650
1,211,502
167,254 •
867,897
873,418
854,188
207,343
5,811,457
1,990,152
1,935,849
1,140,481
783,952
757,687
298,013
911,499
2,256,611
3,923,733
1,520,733
465,137
1,954,251
368,544
1,039,150
82,878
185,715
2,725,345^
168,896
8,753,730
886,713
379,670
4,496,105'
892,604
789,724
5,797,004
371,316
444,439
428,147
817,854
2,699,682
295,694
105,583
1,216,220
1,314,172
689,497
1,657,071
151,042
46,626
334,150
46,318
2,205
34,468
+1,429,176
73,979,050
NOTE.--Sales by States of the various series of savings bonds were published in the annual report for 1943,
pp, 614-621, and in subsequent reports; and by months at intervals in the "Treasury Bulletin," beginning
with the issue of July 1946. Since April 30, 1953, figures for sales of Series E and H bonds only have been
available,
Revised.
557
TABLES
T A B L E 39. --Percent of savings bonds sold in each year redeemed through each yearly period thereafter
by denominations-^
[On Basis of Public Debt accounts, see "Bases of Tables"]
I, SERIES E SAVINGS BONDS
Series and calendar year in
which issued
Percent of Series E savings bonds redeeraed by end o f —
1
2
year
3
years
4
years
5
years
6
years
7
8
years years
9
10
11
years
years
years
years
12
years
13
years
$10 denomination ^
E-1944
E-1945
E-1946
E-1947
E-1948
E-1949
E-1950
20
45
52
51
60
61
64.
49
63
68
71
77
74
77
63
71
75
79
83
82
83
70
76
80
83
87
86
86
75
79
83
86
89
88.
78
82
85
88
91
81
84
87
90
84
87
83
85
88
86
. ....
. $25 denomination
E-1941
E-1942
E-1943
E-1944
E-1945
E-1946
E-1947
E-1948
E-1949
E-1950
E-1951
E-1952
E-1953
4
16
26
33
46
46
46
47
49
51
•51
51
52
9
26
38
50
58
57
57
59
62
62
63
63
14
34
50
59
65
63
63
66
67
67
68
18
44
58
65
69
67
68
69
71
70
26
51
63
69
73
71
71
72
73
32
57
67
72
76
74
73
74
37
61
71
76
77
75
46
68
76
79
80
42
65
7
77
7
7
51
'72
78
81
67
78
39
56
66
72
74
45
61
70
74
64
70
76
72
81
76
69
74
7.
3
83
7
$50 denomination
E-1941
E-1942
E-1943
E-1944
E-1945
E-1946
E-1947
E-1948
E-1949
E-1950
E-1951
E-1952
E-1953
3
8
16
23
36
35
34
35
37
40
39
40
40
7
16
26
39
49
46
46
47
50
51
51
51
11
22
37
49
56
53
52
55
56
56
56
15
31
46
55
61
57
58
59
60
60
21
38
52
60
65
62
61
62
62
26
44
56
64
68
6^
6^
6^
31
48
60
68
71
67
35
52
64
70
72
•
>
6(
NOTE.—The percentages shown in this table are the proportions of the value of the bonds originally sold in
any calendar year v/hi.ch are redeemed (including redemption of bonds reissued as a result of partial redemptions) 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.
Footnotes at end of table.
339Z56 O - 55 - 37
558
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 39, - - P e r c e n t of savings bonds sold in each year redeemed through each yearly period thereafter,
by denominations^ --Continued
I . SERIES E SAVINGS BONDS—Continued
Series and
calendar year in
which issued
Percent of Series E savings bonds.redeemed by end of—
1
year
2
years
3
years
4
5
years years
6
years
10
9
years years
11
years
12
years
13.
years
$100 denomination
E-1941,
E-1942.
E-1943.
E-1944.
E-1945,
E-1946,
E-1947,
E-1948,
E-1949,
E-1950.
E-1951.
E-1952.
E-1953.
$200 denomination^
E-1945
E-1946
E-1947
E-1948
E-1949
E-1950
E-1951
E-1952
E-1953
$500 denoraination
E-1941
E-1942
E-1943
E-1944
E-1945
E-1946
E-1947
E-1948.E-1949
E-1950
E-1951.,,'
E-1952
E-1953
NOTE.—The percentages shown in t h i s table are the proportions of the value of the bonds originally sold
in any calendar year which are redeemed (including redemption of bonds reissued as a r e s u l t of p a r t i a l r e demptions) before Jxily 1 of the next calendar year and before July 1 of succeeding calendar years. Both
sales and redemptions are taken at raaturity value.
Footnotes at end of t a b l e .
559
TABLES
TABLE 3 9 « - - P e r c e n t of savings bonds sold in each year r e d e e m e d through each yearly period t h e r e a f t e r ,
by denominations'""--Continued
I , SERIES E SAVINGS BONDS—Continued
Series and
calendar year
in which issued
Percent of Series E savings bonds redeeraed by end o—
f
3
years
1
year
5
•
11
years
years
12
years
13
years
12
years
13
years
$1,000 denomination
E-1941.
E-1942.
E-1943.
E-1944.
E-1945.
E-1946.
E-1947.
E-1948.
E-1949,
E-1950,
E-1951,
E-1952,
E-1953,
$10,000 denomination
E-1952.
E-1953,
II. SERIES F AND G SAVINGS BONDS
Series and
calendar year
in which issued
Percent of Series F and G savings bonds redeemed by end o f —
2
years
3
years
5
years
6
years
10
years
$25 denomination'^
F-1941.
F-1942.
F-1943.
F-1944.
F-1945,
F-1946,
F-1947.
F-1948.
F-1949.
F-1950.
F-1951.
F-1952,
100
45
$100 denomination
F-1941
F-1942
F-1943
F-1944
F-1945
F-1946
F-1947
F-1948
F-1949
F-1950
F-1951
F-1952
and
and
and
and
and
and
and
and
and
and
and
and
G-1941
G-1942
G-1943
G-1944
G-1945
G-1946
G-1947
G-1948
G-1949
G-1950
0-1951
G-1952
NOTE.—The percentages shown in this table are the proportions of the value of the bonds originally sold
in any calendar year which are redeemed (including redemption of bonds reissued as a result of partial redemptions) before Jxily 1 of the next calendar year and before Jxily 1 of succeeding calendar years. Both
sales and redemptions are taken at maturity value.
Footnotes at end of table.
560
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 39. - - P e r c e n t . o f savings bonds sold in each year r e d e e m e d through each y e a r l y period thereafter
by denominations^--Continued
II,
Series and calendar year in
which issued
SERIES F A D G SAVINGS BONDS—Continued
N
Percent of Series F and G savings bonds redeemed by encof1
year
• 2
3
years- years
4
5
years .years
6
years
7
years
8
years
9
years
10
years
il
years
12
years
•0
3
34
39
33
38
42
58
57
13
years
$500 denomination .
F-1941
F-1942
F-1943
F-1944
F-1945
F-1946
F-1947
F-1948
F-1949
F-1950
F-1951
F-1952
and G-1941
and G-1942
and G-1943
and G-1944
and G-1945
and G-1946
and G-1947'
and G-1948
and G-1949
and G-1950
and G-1951
and 0-1952'
1
1
2
2
3
3
4
A
A
5
4
6
3
4
6
7
9
. 9
10
10
11
10
10
12
6
7
10
12
14
15
16
17
16
16
15
9
11
15
17
19'
. 20
22
22
21
20
15
19
24
26 .
28
29
30
29
12
15
18
22
23
25
26
26
24
19
23
28
31
32
33
33
22 •
• 27
32
34
35
36
26
31
36
38
38
^
^
91
.,
.,
..
..
, ,.
.. . . . .
..
"
$1,000 denomination•
F-1941
F-1942
F-1943
F-1944
F-1945
F-1946
F-1947
F-1948
F-1949
F-1950
F-1951
F-1952
and G-1941
and G-1942
and G-1943
and G-1944
and G-1945
and G-1946
and G-1947
and.G-1948
and G-1949
and G-1950
and G-1951
and G-1952
1
1
2
2
3
3
4
4
4
4
3
6
3
4
6
7
8
8
10
10
10
9
9
12
6
7
10
12
13
13
15
16
15
14
14
8
11
15
17
18
18
20
20
20
18
,.
..
14
18
23
25
26
27
28
28
11
15
19
21
22
23
24
24
23
. .
.
,
.
17
22
27
30
30
30
31
20
26
31
33
34 •
34
.3
2
30
35
37
37
•7
2
33
38
40
31
36
41
63
59
96
21
30
36
35
36
24
33
39
38
28
36
42
66
59
97
18
24
28
22
20
21
28
31
24
25
31
33
73
61
97
..
..
..
..
..
..
.,
,.
$5,000 denomination
F-1941
F-1942
F-1943
F-1944
F-1945
F-1946
F-19'47
F-1948
F-1949
F-1950
F-1951
F-1952
and G-1941
and G-1942
and G-1943
and G-1944
and G-1945
and G-1946
and G-1947
and G-1948
and G-1949
and G-1950
and G-1951
and G-1952
1
1
2
2
3
3
4
4
3
4
3
6
3
5
6
7
9
8
9
9
10
9
9
11
5
• 8
11
13
13
13
14
15
15
14
15
8
12
16
17
18
17
19
19
19
18
10
16
21
22
22
22
23
23
23
13
19
25
25
26
26
27
27.
16
23
28
29
29
29
31
19
26
32
32
33
33
. . ..
. . ..
..
..
. . ,.
. . ..
$10,000 denomination
F-1941
F-1942
F-1943
F-1944
F-1945
F-1946
F-i947
F-1948
F-1949
F-1950
F-1951
F-1952
and G-1941
and G-1942
and G-1943
and G-1944
and G-1945
and G-1946
and G-1947
and G-1948
and G-1949
and G-1950
and G-1951
and G-1952
1
1
2
2
2
2
2
1
2
3
4
6
3
4
5
4
5
6
6
3
6
8
8
12
5
7
9
8
8.
9
9
4
10
10
13
7
10
13
10
10
12
13
6
13
13
9
14
17
13
12
15
16
8
'
16
11
17
20
15
14
19
19
10
..
..
.. ..
.. ..
. . ..
. . ..
14
19
22
17
. 16
22
23
16
22
25
19
18
25
J
NOTE.—The percentages shown in t h i s table are the proportions of the value of the bonds o r i g i n a l l y sold
in any calendar year which are redeeraed (including redemption of bonds reissued as a r e s u l t of p a r t i a l r e demptions) before July 1 of the next calendar year and before July 1 of succeeding calendar y e a r s . Both,
sales and redemptions are taken at raatxirity value.
Footnotes a t .end of t a b l e .
561
TABLES
TABLE 39. - - P e r c e n t of savings bonds sold in each year redeemed through each yearly period thereafter
by denominations^ --Continued
III. SERIES H SAVINGS BONDS
Series and
calendar year in
which issued
Percent of Series H savings bonds redeeraed by end o f —
1
year
2
years
3
years
4
5
years years
6
years
7
8
years years
9
years
10
years
11
years
12
years
13
years
$500 denomination
H-1952
H-1953
,,,
3
A-
9
:::: ::::
..
.
.. .. .. ..
.. .. .. ..
$1,000 denomination
H-1952
H-1953
3
3
8
H-1952
H-1953
3
3
,.
,.
8
..
..
..
.
.,
,.
$5,000 denomination
..
.
..
.
• ..
; ..
$10,000 denoinination
H-1952
H-1953
4
3
9
.. , .
.. .
..
..
. . ..
. ..
IV. SERIES J SAVINGS BONDS
Series and
calendar year in
which issued
Percent of Series J savings bonds redeeraed by end o f —
1
year
2
years
3
years
4
years
5
6
years years
7
years
8
years
.9
years
10
years
11
years
12
13
years . years
$25 denomination
J-1952
J-1953
3
5
11
..
..
.,
..
,. .. ::::
, .
$100 denomination
3
5
J-1952
J-1953
, , ..
, , ..
14
., . . . . . .
,. . . .
$500 denomination
J-1952
J-1953
3
4
10
..
..
::*
.. ..
. .
... . _ J
_.
$1,000 denomination
J-1952
J-1953
•
,
2
3
..
..
10
.. .. ....
. .
....
$5,000 denomination
J-1952
J-1953
1
3
8
..
..
..
..
.. . .
.. .
.. ....
.
...
NOTE.—The percentages shown in this table are the proportions of the value of the bonds originally sold
in any calendar year which are redeemed (including redemption of .bonds reissued as a result of partial redemptions) before July 1 of the next calendar year and before July 1 of succeeding calendar years. Both
sales and rederaptions'are taken at raaturity value.
Footnotes at end of table.
562
1954 REPORT OF THE SECRETARY OF THE TREASURY
T A B L E 39 --Percent of savings bonds sold in each year redeemed through each yearly period thereafter,
by denominations^--Continued
IV. SERIES J SAVINGS BONDS—Continued
Series and
calendai" year
in v/hich issued
Percent of Series J savings bonds redeemed by end o f —
1
year
2
years
3
years
6
years
5
4
years years
7
years
8
years
9
years
10
11
years years
12
years
13
years
12
years
13
years
$10,000 denomination
J 1952:
J-1953
2
2
7
j_1952
J-1953
2
4
9
$100,000 denomination
V, SERIES K SAVINGS BONDS
Series and
calendar year
in which issued
1
year
2
years
3
years
4
5
years years
6
years
7
yesirs
8
years
9
10
years years
11
years
$500 denomination
K-1952
K-1953
2
3
7
$1,000 denomination
2
3
K-1952
K-1953
7
$5,000 denomination
K-1952
K-1953
2
3
7
$10,000 denomination
'
.
2
2
6
Series K-1952,.,
Series K-1953...
2
2
4
K-1952
K-1953
$100,000 denomination
NOTE,—The percentages shown in this table are the proportions of the value of the bonds originally sold
in any calendar year which are redeemed (including redemption of bonds reissued as a resxilt of partial rederaptions) before July 1 of the next calendar year and before July 1 of succeeding calendar years. Both
sales and redemptions are taken at matxirity value.
^ For Series A through D savings bonds data, see the 1952 annual report, p. 635.
^ Jxme 1, 1944, was the earliest issue date for bonds of the $10 denomination. Sale was discontinued March
• 31. 1950.
^ October 1, 1945, was the earliest issue date for bonds of the $200 denomination,
^ Series G savings bonds were not available in denominations of $25.
TABLES
563
TABLE 4 0 . - - S a l e s and redemptions of T r e a s u r y savings n o t e s , August 1941-June 1954
[Par value, in millions pf d o l l a r s . On basis of d a i l y Treasury statements, see "Bases of Tables"'
Amount outstanding
Redemptions
Series and period
Interest
bearing
Cumulative Aug,' 1, 1941-June 30, 1954:
Series A (tax s e r i e s ) , issued Aug, 1,
1941-June 22, 1943
Series B (tax s e r i e s ) , issued Aug. 1,
1941-Sept. 12, 1942
Series C (designated "Tax Series C"
u n t i l June 23, 1943), issued Sept.
14, 1942-Aug. 3 1 , 1948
Series D, issued Sept. 1, 1948-May 14,
1951
•..,,
Series A, issued May 15, 1951-May 14,
1953
Series B, issued May 15, 1953September 25, 1953
Series C, issued October 1, 1953October 23, 1953'^
406.4
3 67.6
338.8
4,943.8
3 182.5
4,761.3
3 32,437.8
32,434.1
11,041,3
21,392.8
3,7
12,333.1
12,326.2
9,260.9
3,065.3
6.9
9,186.6
8,635.1
4,304.6
4,330.5
551.4
4,671.4
718.6
246.1
472.5
3,952.8
()
*
679.6
104.7
64,659,3
59,568,9
4,138.9
8,758.5
8,953.7
7,015.8
3,525.5
3,056.6
2,143.9
3,994.2
6,149.9
5,142,0
4,965.0
4,224.5
2,590.8
1,124.4
4,277.6
6,867.2
6,456.3
6,935.1
4,200.0
3,303.2
3,531.5
2,549.0
5,799.0
6,174.3
6,388.3
1,963,0
20,7
183,2
502.1
550.2
2,630,3
2,184.8
1,972.1
2,078.9
1,509.7
4,633.0
3,437.4
4,306.7
1,113,7
1,103.7
4,094.4
6,365.1
5,906.1
4,304,8
2,015.2
1,331.1
1,452.6
1,039.3
1,166,0
2,736.9
2,081.7
849.4
25,2
5,7
20,4
28.5
35.5
31.6
20.5
18.0
14.0
9.8
11.2
3,014,5
7,495,4
9,556.8
10,135.8
6,711.5
5,560.1
4,393.7
4,860.2
8,472.3
7,817.7
6,612.5
4,452.8
5,079.2
471.6
478,8
952.0
686.5
^ 1.9
Total through June 30, 1954.,
All series:
By fiscal years:
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
By months:
1953—July
August
September
October
Noveraber
December
1954—January
February.'
March.
April
May
June
3 406.9
4,943.8
219.2
208.1
290.1
68.3
55.3
166.9
73.1
71.1
310.3
81.8
151.8
267.0
185.2
194.2
111.2
52.8
42.3
67.0
60.5
46.7
101.3
31.2
145.5
75.7
33.9
13.9
178.8
15.5
13.0
99.9
12.6
24.5
209.0
50.7
6.2
191.3
9.2
9.0
8.6
8.3
8.0
19.9
16.6
13.9
10.1
9.0
13,7
11,2
4,705.8
4,976.6
5,639.0
6,257.5
6,204.3
6,025.6
5,955.8
5,887.3
5,580.8
5,500,1
5,343,7
5,079.2
(*)
,
19.8
25,122,f
84.9
575.0
34,446,2
5,079.2
*Less than $50,000.
^ Monthly sales and redemptions from inception will be found in the 1943 annual report pp. 638 and 640,
and in corresponding tables in subsequent reports.
^ Includes both matured and unraatured notes.
3 Includes exchanges in connection with the offerings in September 1942 of Tax Series A-1945 and Series C.
' Since the sale of Series C savings notes was suspended as of October 23, 1954, the small amounts shown
^
in November and December are due to reporting lag.
564
1954 REPORT OF THE SECRETARY OF THE TREASURY
INTEREST ON PUBLIC DEBT AND GUARANTEED OBLIGATIONS
T A B L E 41. --Amount of interest-bearing public debt outstanding, the computed annual interest charge,
and the computed rate of interest, June 30, 1916-54, and at the end of each nnonth during 1954
[On basis of Public Debt accounts through June 1937, and subsequently on basis of daily Treasury
statements, see ."Bases of Tables"]
End of fiscal year or month
June 301916
1917
1918.,,;
1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
Interest-bearing
debt2
Computed annual interest
charge
Coraputed
rate of
interest
,
,
,
.,,
$971,562,590
2,712,549,476
11,985,882,436
25,234,496,273
$23,084,635
83,625,482
468,618,544
1,054,204,509
Percent
2.376
3.120
3.910
4,178
,
,
,
,
,
24,061,095,361
23,737,352,080
22,711,035,587
22,007/590,754
20,981,586,429
1,016,592,219
1,029,917,903
962,896,535
927,331,341
876,960,673
4.225
4.339
4.240
4.214
4.180
,
,
20,210,906,251
19,383,770,860
18,250,943,965
17,317,695,096
16,638^941,379
829,680,044
793,423,952
722,675,553
671,353,112
656,654,311
4.105
4.093
3.960
3.877
3.946
15,921,892,350
. 16,519,588,640
19,161,273,540
22,157,643,120
26,480,487,920
606,031,831
588,987,438'
671,604,676
742,175,955
842,301,133
3.807
3.566
3.505
3.350
3.181
27,645,229,826
32,755,631,770
35,802,586,915
36,575,925,880
39,885,969,732
750,677,802
838,002,053
924,347,089
947,084,058
1,036,937,397-
2.716
2.559
2.582
2.589
2.600
42,376,495,928
48,387,399,539
71,968,418,098
135,380,305,795
199,543,355,301
1,094,619,914
1,218,238,845
1,644,476,360
2,678,779,036
3,849,254,656
2.583
2.518
2.285
1.979
1.929
256,356,615,818
268,110,872,218
255,113,412,039
250,063,348,379
250,761,636,723
4,963,730,414
5,350,772,231
5,374,409,074
5,455,475,791
5,605,929,714
1.936
1.996
2.107
2.182
2.236
255,209,353,372
252,851,765,497
256,862,861,128
263,946,017,740
268,909,766,654
5,612,676,516
5,739,615,990
5,981,357,116
6,430,991,3166,298,069,299
2.200
2.270
2,329
2.438
2.342
270,603,365,860
271,144,702,117
270,743,627,740
271,290,776,018
273,127,828,865
272,880,971,497
272,632,056,906
272,535,810,124
267,822,974,871
268,855,242,834
271,280,067,380
268,909,766,654
6,593,499,657
6,620,196,004
6,646,303,304
6,603,310,854
6,617,589,191
6,585,146,916
6,574,978,787
6,583,141,027
6,409,966,913
6,397,772,417
6,365,526,902
6,298,069,299.
2.438
2.443
2.456
2.435
2.424
2.414
2.412
2.416
2.394
2.380
2.347
2.342
,
,
,
,
,
,
1945
1946
1947
1948
1949
1950
,
1951
,
1952
1953
1954
End of mon-th1953-July.....
Augxist....
September.
October..,
November..
December.,
1954-January..
February..
March
April
May
June
^ For monthly data back to June 30, 1916, see annual reports for 1929, p, 509; for 1936, p, 442;' and
corresponding tables in subsequent reports.
. ^ Includes discount on Treasury bills from June 30, 1930, but the amoxmt is deducted before calculation
of average interest rate. Savings bonds of Series A-F and J are included at "their current redemption value
from March 1935. Treasury tax and savings notes, beginning August 1941, are included at face amoimt. The
face value of matured savings bonds and notes outstanding is included xmtil all of the annual series have
matured, when they are transferred to matxired debt on which interest has ceased. For computation of average
interes't rate on savings bonds, see footnote 4 to follovring table.
TABLE 42. --Computed annual interest charge, and computed annual interest rate on the public debt by security classes, June 30, 1939-54^
[Dollar amounts in millions. On basis of daily Treasxiry statements, see "Bases of Tables"]
Marketable issues
End of fiscal year or month
Total public debt
Bills^
Totai^
Notes
Certificates
Treasxiry
bonds
Total
Nonmarketable issxies
Savings
Tax and savings "notes
bonds^
Other
Special
issues
Comtputed annual interest rate
4^
June 3 0 —
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
End of month:
1953--July
August
,...
October
November
,
December..............
1954—January
February
March
April
May
June
2.600
2.583
2.518
2.285
1.979
1.929
1,936
1.996
2.107
2.182
2.236
2.200
2.270
2.329
2.438
2.342
2.438
2.443
2.456
2.435
2.424
2.414
2.412
2.416
2.394
2.380
2,347
2.342
0.010
,038
.089
.360
.380
,381 ,
.381
.381
.382
1.014
1.176
1.187
1.569
1.711
2.254
.843
2.525
2.492
2.413
2.225
1.822
1.725
1.718
1.773
1.871
1.942
2.001
1.958
1.981
2.051
2,207
2.043
2.214
2.221
2.242
2.206
2.188
2.170
. 2.164
"
2,120
2.097
2,041
2,043
2.221
2.187
2.067
1.792
1.583
1.510
..
1.465 . .
1.326"
1.128
1.015
.959
.843
1.448
1.256
1.075
1.092
1.165
1.281
1.204
1.289
1.448
1.204
1.3*^5
1.344
1.399
1.560 .
1,754
1.838
0.564
.875
.875
.875
.875
,875
1,042
1,225
1.163.
1.875
1.875
2.319
1.928
2.368
2.450
2.482
2.482
2.482
2.482
- 2..f82
.
2.319
2,263
2.263
1.934
1.928
^
1,753
1,753
1.852
1.851
1.847
1.765
,1-765
1.831
1.832
1.832
1.839
1.838
2.964
2.908
2.787
2.680
2.494
2.379
2.314
2.307
2.307
2.309
2.313
2.322
2,327
2.317
2.342
2.440
2.913
2.908
2.865
2.277
2.330
2.417
2.473
2.567
2.593
2.623
2.629
2.569
2.623
2.659
2.720
2.751
2.900
2.900
2.858
2.787
2.782
2.788
2.789
.2.777
2.765
2.759
2.751
2.748
2.742
2.745
2.760
2.793
0.506
1.040
1.080
1.076
1.070
1.070
1.070
1.290
1.383
1.567
1.785
2.231
2.377
2.342
2.342
2.380
2.380
2.391
2.393
^ 2,_3?3
2.429
2.430
2.430
2.439
2.440
2.722
2.723
2.723
2.720
2.722
2.725
2.733
2.739
2.742
2.744
2.747
2.751
2.761
2.762
2.764
2.765
2.766
2.768
2.778
2.785
2.787
2.789
2.790
2.793
2.273
2.309
2,347
2.337
2.339
2.347
2.349
2.350
2.354
2.357
2.370
2.377
3.000
3.000
3.000
2.743
2.495
2.314
2.000
2.000
2.423
2.414
2.393
2.407
2.717
2.714
2.708
2'. 709
3.091
3.026
2.904
2.681
2.408
2.405
2.436
2.448
2.510
2.588
2.596
2.589
2.606
2.675
2.746
2.671
2.709
2.709
2.708
2,707
2.708
2.709
2.710
2.710
2.710
2.709
2.710
2.709
2.751
2.750
2.751
2.749
2.749
2.747
2.746
2.744
2.744
2.743
2.740
2.671
X
tn
s
o
H
X
vn
CO
tn
o
>
X
o
H
X
vn
H
c
X
CJomputed annual. interest charge
June 3 0 —
1939
,
1940.
,
1941
,
1942
,
1943
,
1944
,
1945
,
1946
,
1947
1948
1949
,
1950
,
1951
1952
1953
,
1954
End of month:
1953—July
Axigust...,
September.
October..,
November.,
December.,
1954—January..,
February.,
March
April
May
,
Jxme.......
$1,037
1,095
1,218
1,644
2,679
3,849
4,964
5,351
5,374
5,455
5,606
5,613
5,740
5,981
6,431
6,298
$858
858
910
1,125
1,737
2,422
3,115.
3,362
3,156
3,113
3,103
3,040
2,731
2,879
3,249
3,071
6,593
6,620
6,646
6,603
6,618
6,585
6,575
6,583
6,410
6,398
6,366
6,298
3,401
3,411
3,423
3,373
3,384
3,354
3,345
3,348
3,180
3,167
3,128
3,071
()
*
()$1
*
9
45
56
65
65
60
139
135
160
213
293
442
164
S17
145
252
299
305
221
235
361
214
178
533
368
355
$105
80
61
73
107
223
283
235
118
137
49
274
501
296
534
588
446
440
401
348
308
294
285
258
236
223
211
164
515
531
654
655
655
655
655
586
439
439
359
355
534
535
622
624
614
554
554
492
491
491
587
588
* Less than $500,000.
^ See table 18 for amounts of public debt outstanding by security classes.
^ Total includes postal savings and Panama Canal bonds, and also conversion
bonds prior to 1947.
S747
772
842
1,021
1,435
1,885
2,463
2,753
2,753
2,597
2,554
2,387
1,835
1,753
1,903
1,962
$63
92
130
307
680
1,084
1,390
1,442
1,530
1,561
1,652
1,735
2,106
2,093
2,069
2,099
$54
84
123
284
591
965
1,271
1,362
1,420
1,470
1,548
1,581
1,579
1,583
1,598
1,622
$15
78
103
109
72
59
47
63
117
123
118
99
121
11
16
10
9
51
44
41
.
37
405
391
372
357
$117
145
178
211
262
344
458
547
687
782
851
838
903
1,010
1,115
1,128
1,903
1,903
1,743
1,743
1,804
1,-848
1,848
2,010
2,012
2,012
1,968
1,962
2,075
2,082
2,096
2,106
2,106
2,100
2,104
2,108
2,104
2,105
2,104
2,099
1,598
1,598
1,597
1,597
1,599
1,598
1,604
1,610
1,614
1,617
1,619
1,622
107
115
132
146
145
141
140
138
131
130
127
121
370
369
367
363
362
361
360
360
359
359
358
357
1,117
1,127
1,127
1,124
1,127
1,132
1,126
1,127
1,125
1,126
1,134
1,128
>
vn
Included in debt outstanding at face amount, but the discount value is used
in computing the annual interest charge i n the annual interest ra-te.
ad
* The annual interjest charge and annual interest rate on United States savings
bonds are computed on the basis of the rate to matxirity applied against the amount
outstanding.
-4
568
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 43, - - I n t e r e s t on the public debt becoming due and payable by security c l a s s e s , fiscal years
195.1-54
[In raillions of dollars. On basis of Public Debt accounts, see "Bases of Tables"]
Class of secxu-ity
Public issues:
Marketable obligation's:
Treasxiry bills-'^
Certificates of indebtedness.
Treasury notes
Treasury bonds
Postal savings bonds
Liberty and Vic-tory loans....
Prewar loans
Total marketable obligations.
Nonmarketable obligations:
Treasury tax and savings notes...
United States savings bonds:
Series D, E, F, and J^
Series G, H, and K
Depositary bonds
Armed forces leave bonds
Treasxiry bonds, investment series
Adjusted service bonds of 1945...
Total nonmarketable obligations.
190,2
214.2
358.3
2,232.8
2.7
(*)
285.4
127.9
517.1
1,815.3
2,6
()
*
403.7
590.1
450.6
1,852.0
2.2
()
*
274.2
463.2
545.9
1,814.7
1.6
()
*
1,5
1.5
1.5
2,999,8
2,749.8
3,300.1
1.5
3,101.1
1,209.5
454.4
6.9
.2
370.9
1,224.3
454.2
7,8
1,234.1
433.1
8.6
117.1
1,146.8
445.4
5.8
4.3
23.8
123.1
(*)
368.5
()
*
354.9
()
*
2,153.8
1,743.2
Total public issues
5,460.1
5,254.9
489,2
554.3
462.6
665.0
Total special issues..
1,043.5
1,127.6
Total interest on public debt.
6,503.6
Special issues:
Treasury notes
Certificates of indebtedness.
*Less than $50,000.
^ Amounts represent discount treated as interest.
443.5
428 " 7
.
457.3
482.8
569
TABLES
TABLE 4 4 . - - I n t e r e s t paid on the public debt and guaranteed obligations, classified by tax status, fiscal
years 1940-54^
[In millions of dollars. On basis of Public Debt accounts, see "Bases of Tables"]
Special
issues to
Tax-exempt
Total
Fiscal year
Taxable
Total
Wholly
Partially
ment agencies and
trust funds
Grand' total
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
1,151.4
1,221.1
1,385.7
1,895.0
2,688.0
3,640.0
4,749.1
4,959.6
5,188.9
5,353.0
5,496.7
5,616.2
5,854.8
6,506.0
6,384.7
,
1,019.5
1,060.9
1,020.2
962.2
•917.8
793.4
713.5
602.6
575.8
495.0
417.0
330.2
226.4
202.0
184:2
104.2
79.2
57.1
38.3
27.2
45.3
26.0
7.0
5.6
5.1
4.3
4.2
4.1
3.7
3.1
915 .3
981.7
963.1
924.0
890.7
748.1
687.5
595.6
570.3
489.9
412.7
325.9
222.3
198.3
181.0
0.5
166.1
691.5
1,462.0
2,441.1
3,530.8
3,755.1
3,884.9
4,040,5
4,218.9
4,413.8
4,688,3
5,260.5
5,072.9
131.8
159.6
199.4
241.3
308,2
405.4
504.8
601.9
728.1
817.5
860.8
872.2
940.1
1,043.5
1,127.6
Issued by U. S. Government
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954....
1,041.4
1,110.2
1,260.1
1,813.0
2,610.1
3,621.9
4,747.5
4,958.0.
5,187.8
5,352.3
5,496.3
5,615.1
5,853.0
6,503.6
6,382.5
909.6
950.1
907.2
895.6
852.2
780.2
711.9
601.0
574.8
494.5
416.7
329.9
226.0
201.7
183.9
104.2
79.2
57,1
38.3
27.2
45.3
26.0
7.0
5.6
5.1
4.3
4.2
4.1
3.7
3.1
805,4
870,9
850,1
857.4
825.0
734.9
685.9
594.0
569.2
489.4
412.4
325.7
221.9
198.0
180.8
0.5
153.5
676.1
1,449.8
2,436.3
• 3,530.8
3,755.1
3,884.9
4,040.3
4,218.8
4,413.0
4,686.9
5,258.4
5,071.0
131 8
159 6
199.4'
241.3
308.2
405.4
504.8
728.1
817.5
860.8
872.2
940.1
1,043.5
1,127.6
Issued by Federal instrumentalities: Guaranteed .issues
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1931
1952
1953
1954
;
. .
109.9
110.9
125.6
82.0
77.9
18.0
1.6
1.6
1.1
.7
.5
1.1
1.8
2.4
2.2
109.9
110.9
113.0
66.6
65.7
13.2
1.6
1.6
1.1
.4
.3
.3
.4
.3
.2
109.9
110,9
113,0
66.6
65.7
13.2
1.6
1.6
1.1
.4
.3
.3
.4
.3
.2
12.6
15.4
12.2
4.8
.2
.1
.8
r.4
2.1
2.0
NOTE.—Amount of interest paid includes increase in redemption value of United States savings bonds and
discount on unmatured issues of Treasury bills. Interest paid" on guaranteed issues does not include amounts
paid on demand obligations of.Commodity Credit Corporation. Data for 1913-33 will be found in the 1948 annual report, p. 539, and for 1934-39 in the 1952 annual report, p. 645.
•>^Less than $50,000.
^ Figures for 1934 to 1949, inclusive, represent actual interest payments; figures for 1950 to 1954, inclusive, represent interest which became due and payable during those years without regard to actual payments .
570
1954 REPORT OF THE SECRETARY OF THE TREASURY
PRICES AND YIELDS OF SECURITIES
T A B L E 45, --Average yields of long-term Treasury bonds by months, January 1930-June 1954^
[Averages of daily figures. Percent per a n n u m compounded semiannually]
Jan. Feb.
Year
Mar.
3.41
3.30
4.11
3.31
3.32
2.79
2.78
2.54
2.68
2.51
2.32
2.22
2.17
2.11
1.93
1.75
3.29
3.27
3.92
3.42
3.20
2.77
2.73
2.66
2.67
2.43
2.26
2.12
2.10
2.12
1.91
1.70
^r.
May
June
July
Aug.
Sept.
Oct. Nov.
Dec.
Average
PARTIALLY TAX-EXEMPT BONDS2.
3.43
3.20
4.26
1930.
1931
1932
1933
1934
1935
1936
1937
1938
1939
1940.
1941
1942
1943
1944
1945
3.22
,
3.50
2.88
2.81
2.56
2.69
2.54
2.30
2.12
2.10
2.11
1.95
1.81
3.37
3.26
3.68
3.42
3.11
2.74
2.70
2.83
2.66
2.38
2.26
.2.07
2.07
2.05
1.94
1.68
3.31
3.16
3.76
3.30
3.02
2.72
2.68
2.80
2.56
2.27
2.39
2.04
2.06
1.96
1.94
1.68
3.25
3.13
3.76
3.21
2.98
2.72
2.69
2.81
2.58
2.22
2.40
2.01
2.04
1.91
1.91
1.63
3.25
3.15
3.58
3.20
2.92
2.69
2.68
2.78
2.58
2.23
2.30
1.98
2.04
1.91
1.89
1.63
3,26
3.18
3.45
3.21
3.03
2.76
2.64
2.78
2.57
2.27
2.31
2.01
2,06
1.92
1,90
1.68
3.24
3.25
3.42
3.19
3.20
2.85
2.65
2.82
2.63
2.67
2.25
2.02
2.08
1.90
1.93
1.68
3.21
3.63
3.43
3.22
3.10
2.85
2.68
2.82
2.55
2.60
2.21
1.98
2.09
1.90
1.93
1.62
3.19
3.63
3.45
3.46
3.07
2.83
2.60
2.78
2.56
2.46
2.09
1.95
2.10
1.94
1.90
1.56
3.22
3.93
3.35
3.53
3.01
2.84
2.59
2.73
.2.56
2.35
2.01
2.06
2.13
1.95
1.87
2 1.51
3.31
3.12
2.79
2.69
2.74
2.61
2.41
2.26
2.05
2.09
1.98
1.92
2 1.66
2.46
2.48
2.47
2.37
2.28
2.24
2.45
2.22
2.36
2.56
2.71
2.97
2.34
2.45
2.48
2.48
2.35
2.26
2.27
2.45
2.22
2.38
2.61
2.74
2.83
2.34
2.47
2.48
2.48
2.33
2.25
2.36
2.44
2.20
2.38
2.66
2.71
2.85
2.47
2.49
2.49
2.48
2.33
2.24
2.39
2.44
2.19
2.39
2.70
2.75
2.79
2.46
2.47
2.48
2.37
2.19
2.25
2.44
2.31
2.32
2.57
2.68
2.92
3.29
3.34
3.68
TAXABLE BONDS3
1941
1942.
1943
1944
1945.
1946
1947
1948
1949
1950
1951
1952
1953
1954
,
2.48
2.46
2.49
2,44
2.21
2.21
2.45
2.42
2.20
2.39
2.74
2.80
2.68
2.44 2.45
2.46
2.48
2.48 2.46
2.48
2.46
2.48 2.49
2.48
2.49
2.39 2.39
2.38 • 2.40
2.08 2.19
2.09
2.12
2.19 2.19
2.19
2.21
2.44 2.42
2.44
2.45
2.38 2.38
2.38
2.39
2.24
2.30 2.31
2.27
2.56 2.63
2.47
2.40
2.70 3 2.64 2.57
2.71
2.89 * 2.97 3.09
2.83
2.60
2.47 2.52
2.51
2.43
2.45
2.49
2.35
2.16
2.22
2.41
2.38
2.'33
2.65
2.61
3.09
2.54
2.46
2.45
2.49
2.34
2.18
2.25
2.44
2.27
2.34
2.63
2.61
2.99
2.47
2.46
2.48
2.36
2.23
2.24
2.45
2.24
2.33
2.57
2.70
3.00
^ For bonds selling above par and callable at par before maturity, the yields are computed on the basis of
redemption at first call date; while for bonds selling below par, yields are computed to maturity. Monthly,
averages are averages of daily figures. Each daily figure is an unweighted average of the yields of the individual i.ssues. Prior to September 1941, yields wei^ computed on the basis of the day's closing price on
the New York S'tock Exchange except that on days when an issue did not sell, the yield was computed on the
mean of closing bid and ask quotations on the Stock Exchange. Fran Sep-tember 1941 through March 1953, yields
are computed on the basis of the mean of closing bid and ask quotations in the over-the-coxinter market.
Commencing- April 1953, yields, as reported by the Federal Reserve Bank of New York, are based on over-the
counter bid quotations. For average yields by inonths from January 1919 throxigh December 1929, see p. 662 of
the annual report for 1943.
2 From July 17, 1928, through Nov. 29, 1935, yields are based on all outstanding partially tax-exempt
Treasury bonds neither due nor callable for 12 years; from Nov. 30, 1935, through Dec. 14, 1945, yields are
based on all outstanding partially tax-exempt Treasury bonds neither due nor callable for 15 years. This
average was discontinued as of Dec. 15, 1945, because there were no longer any bonds of this classification
due or callable in 15 or more years.
^Taxable bonds are those on which the interest is subject to both the normal and'surtax•rates of the Federal income tax. This average commenced Oct. 20, 1941. From Oct. 20, 1941, through Mar. 31, 1952, yields are
based on all outstanding taxable Treasury bonds neither due nor callable for 15 years; beginning Apr. 1,1952,
yields are based on all outstanding taxable Treasury bonds neither due nor callable for 12 years.
'^he average excludes the 3 l/A% taxable bond of June 15, 1978-83 first quoted on "when issued" basis A p r .
15, 1953, yields of which follow:
Year
1953
1954.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept. Oct.
Nov.
Dec.
Average
3.29
2.70
3.04
2.96
3.16
2!73
.3.26
2.72
3.22 • 3.19 3.06
2!85
3.24
2.70
3.25
2.'90
TABLE 46. - - P r i c e s and yields of m a r k e t a b l e public debt i s s u e s , June 30, 1953, and June 30, 1954, and p r i c e r a n g e s since f i r s t t r a d e d
[Price decimals are thirty-seconds and - indicates additional
f
Price range since first traded"^
Yield to
call or to
matxiritypercent"-'
Yield to
call or to
maturitypercent-'
Taxable i s s u e s :
Treasxiry bonds:
2 f Sept, 15, 1951-53
2% June 15, 1952-54^
2 1/4^ June 15, 1952-55^,
2^ Dec. 15, 1952-54''
2io Dec. 15, 1951-55^
2 1/2^ Mar. 15, 1956-58,.
2 1/4^ Sept. 15, 1956-59,
2 3/8^ Mar. 15, 1957-59,.
2 3/8^ June 15, 1958
2 1/2^ Dec. 15, 1958
2 1/4^ June 15, 1959-62..
2 1/4^ Dec, 15, 1959-62,.
2 3/4^ Sept. 15, 1961
2 1/2^ Nov. 15, 1961
2 1/2^ June 15, 1962-67..
2 1/2^ Dec. 15, 1963-68..
2 1/2^ June 15, 1964-69..
2 1/2^ Dec. 15, 1964-69..
2 1/2% Mar. 15, 1965-70..
2 1/2^ Mar. 15, 1966-71..
2 1/2% June 15, 1967-72..
2 1/2% Sept: 15, 1967-72.
2 1/2% Dec. 15, 1967-72,.
3 1/4% June 15, 1978-83..
Treasury notes:
2 1/8% A, Dec. 1, 1953...
1 3/8% A, Mar, 15, 1954..
1 7/8% B, Dec. 15, 1954..
1 1/2% A, Mar, 15, 1955..
1 3/4% B, Dec, 15, 1955,,
1 1/2% EA, Apr. 1, 1956..
1 1/2% EO, Oct. 1, 1956..
2 7/8% A, Mar. 15, 1957..
1 1/2% EA, Apr. 1, 1957.,
1 1/2% EO, Oct, 1, 1957.,
1 1/2% EA, Apr. 1, 1958..
1 1/2% EO, Oct. 1, 1958..
1 7/3% A, Feb, 15, 1959.,
1 1/2% EA, Apr. 1, 1959..
sixty-fourth]
June 30, 1954
June 30, 1953
High
X
1.00
).23
1.15
i.ll
!.20
5.30
).20
94.:
93.;
100.02
99.25
99.19
99.13
98.24
99.04
96.26
97.28
98.07
98.26
94.26
94.26
1,99
2.30
2.53
2.46
2.58
2.75
2.85
2.83
2.82
2,79
2,94
2,91
94.18
93.22
93.18
93.08
93.00
92.28
92.30
92,20
92.28
99.26
3,01
3.03
3,03
3.04
3,06
3.04
3.00
3,02
3.00
3.26
100.02
99.15
99.19
99.10
98.30
99.00
98.08
97.10
95.04
96.06
96.10
97.04
92.02
92.00
100.19
100,12
92,00
91,04
90.28
90,20
90.18
90.16
89,30
89.30
89,30
98.20
2,12
98,16
98,10
97,24
97,08
96.20
96,04
Mar,
Feb,
Feb,
Mar,
Mar.
Feb.
Apr,
June
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
11 1946
18 1946
9 1946
11, 1946
11 1946
8 1946
6 1946
30 1954
29 1954
29, 1954
1946
1946
30 1954
30^ 1954
6 1946
1946
1946
1946
.1946
1946
1946
1946
1946
1954
100.23
100.22
102.13
101.30
102.24
102.22
103.11
101.12
101.12
104.00
102.15
101.13
100,24
100,12
100,10
100.06
100,02
99,30
99.30
99,29
110.08
100.25
100.24
102.16
102.01
102.27
102.25
103,14
101.18
101.18
104,04
102.19
101.19
100.30
100,18
100.16
100.12
100,08
100.04
100.04
100.03
110.14
.41
.48
1.07
1.36
1.33
1,67
1.72
1.96
1,99
2,15
2,14
2.31
2,41
2.46
2.47
2.48
2.49
2.51
2.51
2,51
2.67
104,18
104,27
106.08
105.00
104.26
110.22
107.16
102.24
102.30
103,24
104.20
104.21
104.22
103.00
108.12
108.03
107.25
107.24
107.23
107,22
106.16
109.18
106.16
110.04
100,15
Jan, 28 1954
98.01+
100,21
100.18
101.10
101,00
101.00
103.27
100.12
100.12
99.24
99.22
100.15
99,02
100,23
100,20
101.12
.43
.70
.84
.92
1.05
1,42
1,36
1.38
1,57
1.58
1,77
1.71
100,21
101.10
101.00
101.00
104.01
100.12
100.12
100.00
99.28
100,17
99.20
May
Jxme
June
June
Feb.
June
June
Apr.
Jxme
Jxme
May
5 1954
.30 1954
30 1954
30 1954
24' 1954
30, 1954
30 1954
29, 1954
22 1954
24, 1954
1954
97.22
97.21
97.06
96.20
100,04+
95,24
94,24
93.16
96,02
99.29
98.24
103.29
100.20
100.20
100.00
99.30
100.17
99.10
Dec. 26, 1951
May 29, 1953
June 1, 1953
June 2, 1953
June 3, 1953
Jxme 1, 1953
June 2, 1953
June 2, 1953
June 1, 1953
June 1, 1953
Jvme 1, 1953
June 1, 1953
Nov. 13, 1953
Feb. 1, 1954
June 1, 1953
Jxme 1, 1953
June 1, 1953
Jxme 1, 1953
June 1, 1953
June 1, 1953
June 1, 1953
Jxme 1, 1953
Jime 1, 1953
Jxme 1, 1953
May
9, 1951
Dec. 26, 1951
Jxme 1, 1953
Jxme 16, 1953
Jxme 8, 1953
Sept. 2, 1953
Jime 5, 1953
June 2, 1953
Jxme 4, 1953
Oct. 5, 1953
June 2, 1954
June 9, 1954
H
O
H
DC
vn
9
m
H
o
H
tn
>
CO
Taxable issues—Continued
Certificates of indebtedness:
2% C, Aug, 15, 1953.,.
2 1/4% A, Feb. 15, 1954...
2 5/8% B, June 1, 1954
2 5 / ^ D, Aug. 15, 1954...
2 5/8^ E, Sept. 15, 1954..
1 5/8^ A, Feb. 15, 1955...
1 1/8% B, May 17, 1955
Partially tax-exempt issues:
Treasxiry bonds:
2 1/4% June 15, 1954-56^..
2 7/8% Mar. 15, 1955-60...
2 3/4% Sept. 15, 1956-59..
2 3/4% June 15, 1958-63...
2 3/4% Dec. 15, 1960-65...
1.90^
99.30
100.04
1.70%
100.00
100.06
1.90
2.33
2.48
100.11
100.16
100.20+
100.11
100.16
101.17
102.12
102.28
104.00
100.19
101.21
102.20
103.12
104.16
1.72
1.95
1.98
2.14
2.16
^ Prices on June 30, 1953 and 1954, are over-the-counter closing bid quotations,
as reported to the Treasury Department by the Federal Reserve Bank of New York.
^ Yields_tire_p_er_cent per annum compounded semiannxially except that in the case of
securities having only one interest payment, they are computed o i a sii^le^ interi
est basis. Quotations on yield basis are indicated by percent signs in price
colximns.
^ Excludes Treasury bills, vhich are fully taxable; and Panama and postal savings bonds,. 'Which are fxilly tax-exenpt. For description and amoxint of each issue
outstanding on Jxme 30, 1954, see table 23, for information as of June 30, 1953,
see 1953 annual report page 392.
^ Yields are computed to earliest call date when prices are above par and to
matxirity date when prices are at par or below.
100,13 5$.27 per M
100.18
.18
100.22+ . .60
.74
100.13
101.22
104.06
106.12
108.24
101.24
104.10
106.18
109.00
.46
.83
1.10
1.33
109.29 Mar, 12, 1946
116.02 Jan. 12, 1946
116.13 Jan. 26, 1946
117.04 Jan. 15, 1946
119.00 Jan. 25, 1946
100.09+ Apr. 21, 1954
98.30
Sept. 20, 1935
98.10 Apr. 1, 1937
99.15
Sept. 25, 1939
99.14 Sept. 25, 1939
* Beginning April 1953, prices are closing bid qxiotations. Prices for prior
dates are the mean of closing bid and ask qxiotations, except that before Oct. 1,
1939, they are closing prices on the New York Stock Exchange. When issued prices
""arer~includM~ln~price'range~beginning-0ct7—lx^-1939v-Da
case of recurrence are latest dates. Issues with original maturity of less than 2
years are excluded.
^ Matured on June 15, 1954.
^ Called on Feb. 15, 1954, for redemption on June 15, 1954.
" Not called for redemption on June 15, 1954, will matxnre on Dec. 15, 1954.
^
^ Callable on succeeding six-month dates from earliest call date until matxirity,
on 4 months' notice.
^ Excess of price over zero yield.
r
vn
CO
OWNERSHIP OF GOVERNMENTAL SECURITIES
-J
T A B L E 4 7 , - - E s t i m a t e d o w n e r s h i p of a l l i n t e r e s t - b e a r i n g g o v e r n m e n t a l s e c u r i t i e s o u t s t a n d i n g , c l a s s i f i e d by type of i s s u e r , J u n e 30,
4^
1941-54
[ P a r value.-^ I n b i l l i o n s of d o l l a r s ]
Held by banlcs
June 30
Total
amoxmt
outstanding
Commercial
banks
Total
Federsil
Reserve
Banks
Held
by
U. S .
Gov^
ernment
investment
accoxmts
Held by p r i v a t e nonbank i n v e s t o r s
Total
Indivlduals2
Insurance
companies
Mutual
savings
banks
Corporations^
State,
local,
and
territorial
governments*
Miscellaneoxis
investors^
H
O
I , S e c u r i t i e s of U. S . Govemment and F e d e r a l i n s t r x i m e n t a l i t i e s gxiaranteed by U n i t e d ' S t a t e s *
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
54.7
76.5
139.5
201,1
256.8
268.6
255.2
250.1
250.8
255,2
252.9
256.9
264,0
269.0
21.8
28.7
59.4
83.3
106.0.
108.2
91.9
85.9
82,4
83.9
81.4
84.0
83.6
88.7
19.7
26.0
52.2
68.4
84.2
84.4
70,0
64.6
63.0
65.6
58.4
61.1
58.8
63.6
y
2.2
2,6
7.2
14.9
21.8
23,8
21.9
21.4
19,3
18,3
23.0
22.9
24.7
25.0
B.5
10.6
14.3
19.1
24.9
29.1.
32.8
35.8
38.3
37.8
41.0
44.3
47.6
49.3
24.^
37.2
65.7
98.6
125.9
131.2
130.5
128.4 •
130.1
133.5
130.6
128.5
132.9
131.0
10.6
17.3
29.6
44.9
58.2
62.2
65.4
64.8
65,9
^ 66.5
^64.4
163.5
^ 65.0
63.6
7.1
9.2
13,1
17.322.7
24.9
24 •.6
22.8
20.5
19.8
17.1
r ^^•'^
16.0
15.3
3.4
3,9
5.3
7.3
9.6
11.5
12.1
12.0
11.6
11,6
10.2
9-.6
9.5
9,1
2.0
4.9
12.9
19,9
21.9
17.6
.13.9
13.6
15.6
^18.4
"" 2 0 . 0
"" 18.9
16.8
X
tn
0.6
.9
1.5
3.2
5.3
6.5
7.1
7.8
8.0
8.7
9.4
10.4
12.0
14,3
0.7
1.1
3.4
6.1
8.3
8.6
7-. 4
7.5
8.5
8.4
9.4
10.3
11.5
11.9
9
H
H
X
tn
v
n
II, Secxirities of Federal instrximentalities not guaranteed by United States''
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
.
. .. . .
. .
2.2
2.2
1.
-9
1.5
1.0
1.1
.5
.8
.9
.7
1.3
1.2
1.1
1.0
0.6
.7
.6
.6
.5
1.0
.4
.6
.7
.6
.8
.7
.6
.5
0.6
.7
.6
.6
.5
1.0
.4
.6
.7
.6
.8
.7
.6
.5
0.8
.8
.6
.2
(*)
(*)
(*)
(*)
(*)
0.8
.7
.7
.7
.5
.1
.1
.2
.2
.1
.'5
.5
.5
.5
0.6
.6
.6
.6
.4
.1
.1
.1
.1
.1
.4
.4
.4
.4
(*)
(*)
(*)
(*)
(*)
(*)
(*)
(*)
(*)
(*)
(*)
(*)
(*)
(*)
(*)
(*)
(*)
(*)
(*)
(
*
(
*
(«
(
*
(
*
(
*
(
*
(
*
(
*
0.2
.1
.1
.1
.1
0.1
.1
(*)
.1
(*)
(*)
(*)
(*)
(*)
(*)
(*)
(*)
(*)
(*)
(*)
(*)
(]
*
(]
*
()
*
(
*
(
*
III. Securities of State and local governments. Territories, and possessions®
1941.....
.
..........
1Q49
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
^
- 20.0
19.5
18.5
17.3
16.4
15.7
16.6
18.4
20.5
23.8
26.7
.29.2
32.3
37.4
3.7_ .
3.6
3.5
3.5
3.8
4.1
5.0
5.6
6.0
7.4
8.6
9.9
10.6
12.0
.
3.7
3.6
3.5
3.5
3.8
4.1
5.0
5.6 ..b
6.0
7.4
8.6
9.9
10.6
12.0
NOTE.—For data from 1937 through 1940, see the 1952 annuni report, pp. 764 and
765.
•Less than $50 million.
^Revised.
^Figures represent par values except in the "case of data which include United
States savings bonds of Series A-F and J, which are inclxided on the basis of current redeniption values.
^Inclxides partnerships and personal trxist accounts. Nonprofit institutions and
corporate pension trxist fxmds are inclxided under "Miscellaneous investors."
•'Exclxisive of banks and insurance companies.
^Conprises trust, sinking, and investment fxmds of State and local governments.
Territories, and possessions.
0.7
.7
.6
.6
.5
.5
.5
.5
.4
.4
.6
:?
.3
15,6
15:^"
14.4
13.3
12.1
11.2
11.1
12.3
14.2
16.0
17.6
18.6
21.0
25.1
7.9
776"
7.5
7.3
7.2
7.0
6.9
7.7
8.8
9.2
10.1
10.5
^ 11.6
14.8.
2.2
272
1.8
1.6
1.1
.9
.9
1.1
1.6
2.2
2,5
r 2.8
"" 3.5
3.7
0.5
0.5
.2
.2
.5
.4
.4
.4
.4
.4
.5
,5
.6
.8
3.9
3_9_
3.8
3.4
2.9
2.4
2.4
2.5
2.7
3.5
3.7
3.9
4.2
4.5
0,6
.6.5
.4
.4
,4
,4
.5
,5
.5
.6
.6
.6
.7
>
DO
r
m
^Inclxides savings and loan associations, nonprofit associations, corporate pension trust funds, dealers and brokers, and investments of foreign balances and .
international accoxmts in this country.
^Data on daily Treasury statement basis. Since data exclude noninterest-bearing
debt, they differ slightly from those in discxission of debt ownership. Includes
special issues to Federal agencies and trust fxmds," and excludes guaranteed securities held by the Treasury.
''see table 48, footnote 4.
^Exclxides obligations of the Philippine Islands afijer Jxme 30, 1946, and Pxierto
Rico after June 30, 1952.
(Jl
Ul
576
1954 REPORT OF THE SECRETARY OF THE TREASURY
-Estimated distribution of interest-bearing governmental securities outstanding June 30,
1941-54, classified by tax status and type of issuer^
[Par value.^ In millions of dolleirs]
Securities of U. S. Government and
Federal instrumentalities
guaranteed by U. S.^
Securities of State,
local, and territorial
governments
Securities of Federal
instrumentalities not
guaranteed by U. S.*
Tax-exempt
Tax-exempt
Wholly tax-exempt^
June 30
Total
Wholly^
Partially^
Taxable''
Special
Total
issues^
P^Mti'anV
Taxable"?
Total
Issues
Issues
of
of
TerriStates
tories
and
and
localipossesties
sions'
126
380
329
345
430
1,093
497
827
876
746
1,320
1,220
1,142
960
20,007
19,517
18,534
17,314
16,417
15,736
16,580
18,399
20,538
23,804
26,688
29,217
32,268
37,393
19,860
19,379
18,406
17,194
16,293
15,626
16,529
18,354
20,481
23,722
26,592
29,111
32,200
37,300
697
735
634
582
490
692
732
632
580
489
466
468
505
406
422
559
730
715
329
I, Total amount outstanding
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
54,747
76,517
139,472
201,059
256,766
268,578
255,197
250,132
250,785
255,226
252,879
256,907
263,997
268,990
4,903
4,260
3,050
1,414
196
180
166
164
162
160
156
142
124
96
35,871
32,987
32,215
27,489
25,656
21,335
20,939
17,826
16,187
12,877
9,276
7,402
6,678
5,997
7,853
31,386
93,336
157,869
212,103
224,732
206,725
201,931
201,660
209,833
208,794
211,623
216,657
220,668
6,120
7,885
10,871
14,287
18,812
22,332
27,366
30,211
32,776
32,356
34,653
37,739
40,538
42,229
2,200
2,210
1,852
1,453
1,008
1,093
497
827
876
746
1,320
1,220
1,142
960
1,913
1,721
1,467
1,108
579
161
109
55
14
13
12
12
12/
11
5
4
5
8
9
10
6
9
II. Held by U. S. Govemment investment accounts^°
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953......
1954.'
8,494
10,623
14,322
19,097
24,940
29,130
32,810
35,761
38,288
37,830
40,958
44,335
47,560
49,340
58
53
34
35
35
36
36
37
37
37
36
.31
23
13
2,154
2,030
1,654
1,468
1,281
992
698
503
384
371
142
86
26
12
775
63-^
306
49
1,213
1,181
1,323
943
873
529
529
559
210
117
162
654
1,763
3,307
4,812
5,770
4,710
5,010
5,091
5,066
6,127
6,480
6,972
7,086
6,120
7,885
10,871
14,287
18,812
22,332
27,366
30,211
32,776
32,356
34,653
37,739
40,538
42,229
814
824
560
186
1
808
807
557
186
1"
Abi
4
4
20
8
4
2C
£
469
506
407
423
561
733
. 733
332
1'
III. Held by Federal Reserve Banks
1941
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
2,184
2,645
7,202
14,901
21,792
23,783
21,872
21,366
19,343
18,331
22,982
22,906
24,746
25,037
1941
1942
1943
1944
1945
1946
1947
1948.-.
1949......
1950......
1951
1952
1953
1954
619.
875
1,460
3,190
5,256
6,458
7,109
7,786
8,000
8,743
9,408
10,357
11,983
14,340
1942
:
196
830
5,574
13,908
20,919
23,254
21,343'
20,807
19,132
18,215
22,982
22,906
24,746
25,037
;;
IV. Held by State and local governments. Territories, and possessions
Footnotes at end of t a b l e .
61<:
48:
39:
29]
19C
13^
n.a
n.a
n.a
n.a
n.a
n.a
n.a
n.a
392
1,062,89^
5,06e
6,31^
n.a
n.a
n.a
n.a
n.a
n.a
n.a
n.a
)
3,916
3,871
3,832
3,430
2,897
2,377
2,437
2,483
2,733
3,475
3,699
3,870
4,181
4,527
3,889
3,847
3,810
3,399
2,866
2,351
2,428
2,476
2,726
3,468
3,693
3,852
4,1764,523
27
24
22
31
31
26
9
7
7
7
6
18
5
4
577
TABLES
TABLE 4 8 . - - E s t i m a t e ^ ''^.stribution of i n t e r e s t - b e a r i n g governmental s e c u r i t i e s outstanding June 30,
1941-54, classified by tax status and type of i s s u e r i - - C o n t i n u e d
[Par value.^ In millions of d o l l a r s ]
S e c u r i t i e s of U. S. Govemment
Federal i n s t r u m e n t a l i t i e s guars
by U. S.3
Secxirities of Federal instrum e n t a l i t i e s not guaranteed
by U. S.-^
Tax-exempt
Wholly
Partially^
Tax-exempt
Taxable''
Special
issues*
Wholly
Partially^
S e c u r i t i e s of State,
l o c a l , and t e r r i t o r i a l
governments
Wholly tax-exempt'
Taxable''
Issues
Issues
of
of
TerriStates
tories
and
and
localipossesties
sions'
. Privately held secxirities
1941.
1942.
1943.
1944.
1945.
1946.
1947.
1948.
1949.
1950.
1951.
1952.
1953.
1954.
4,070
3,573
2,710
1,330
161
144
130
127
125
123
120
112
100
83
31,885
7,495
29,293 29,510
28,845 84,933
24,788 137,753
23,310 181,307
19,675 189,388
n.a.
n.a.
n.a.
n.a
1,385
1,386
1,292
1,267
1,007
1,093
497
827
876
746
1,316
1,216
1,122
952
1,104
914
910
923
579
161
109
55
120
• 363
326
345
429
1,093
497
827
876
746
1,316
1,216
1,122
952
15,394 15,279
14,911 14,800
14,068 13,964
13,302 -13,215
13,030 12,938
12,892 12,809
13,674 13,633
15,410 15,373
17,398 17,349
19,906 19,832
22,428 22,340
24,614 24,529
27,354 27,309
32,534 32,448
115
111
.104
87
92
83
41
37
86
45
86
NOTE.—For-data back to 1913, See 1946 annual report, p. 664, and-1949 annual report, p. 591
*'Less than $500,000.
j
n.a. Not available.
|
^ The "total amount outstanding" of securities of the several issuers differs from the gross indebtedness .
of these issuers as the former excludes noniniierest-bearing debt. The "total privately held securities"
differs from the net indebtedness of the borrowers in several additional respects. The former is derived by
deducting from the -total amount of interest-bearing securities outstanding the ainount df such ..securities
held by Federal agencies. Federal Reserve Banks, and by public sinking, trust, and inves-tment'funds. Net indebtedness, on the other hand, is derived by deducting from the gross indebtedness an ainount equivalent to
the total volume of sinking fund assets of the respective borrowers, but makes no allowance for any other
public assets.
|
^ In "the case of data which include United States savings bonds. Series A-D, E, F, and J, the figures for
these bonds represent current redemption values.
3 On basis of daily Treasury statements. Excludes guaranteed securities held by the Treasury.
" Includes Federal land bank bonds only through June 30, 1946; on June 27, 1947, the United States pro^
prietary interest in these banks ended. Excludes stocks and interagency loans.
^ Securities the income from which is exemp-t from both the normal rates and surtax rates of the Federal
income tax.
[
^ Securities the income from which is exemp-t only from the normal rates of the Federal income tax. In the
case of partially tax-exempt (1) Treasxiry bonds and (2) United States savings bonds, interest derived from
$5,000 aggregate principal amount owned by any one holder is exempt from the svirtax rates as well as the
normal rates of the Federal income tax.
j
'^ Securities the income from which is subject - o both the normal rates and the surtax rates of the Federal
t
income tax.
I
^ Special issues " o Federal agencies and trust funds.
t
' Excludes obligations of the Philippine Isiands.after June 30, 1946, and Puer-to Rico after June 30, 1952.
^° Excludes Federal Reserve Banks. Includes individual Indian trust funds.
TABLE 49. --Summary of Treasury survey of ownership of interest-bearing public debt and guaranteed obligations, June 30, 1953 and 1954
[Par value. In millions of dollars]
Held by investors covered by Treasury survey^
Insurance companies
Classification
Commercial
banks 2 3
June
30,,
1953
Nuraber of institutions
Jxme
30,
1954
7,05.2
6,971
Mutual savings
banks2
June
30,
1953
June
30,
1954
526
526-
Fire, casualty,
and marine
Life
Jxme
30,
1953
June
30,
1954
314
314
Jxme
30,
1953
604
Jxme
30,
1954
U. S. Government investment accoxmts
and Federal
Reserve Banks
June
30,
1953
Jxme
30,
1954
Held by all
other investors'^
Total amoxmt
outstanding
X
June
30,
1954
Jxme
30,
1953
June
30,
1953
vn
June
30,
1954
Tl
H
O
598
H
X
BY TYPE OF SECURITY
Public marketable:
Treasxiry bills
Certificates of indebtedness
Treasxiry notes
Treasury b o n d s — b a n k eligible
Treasxiry b o n d s — b a n k restricted^ ^
Postal savings and Panama Canal bonds
Guaranteed obligations (Federal Housing Administration debentxires) ^
Treasxiry bonds, investment series
Total public nonmarketable
Grand total
4,187
4,942
11,423
35,249
218
15
120
87
62
4,7li
2,521
. 27
31
6
20
9
11
51,211
Public nonmsLTketable:
United States savings bonds''
4,411
4,351
10,355
31,660
391
15
56,065
7,508
7,109
6,223
5,801
4,455
1,377
20
« 447
370
1,373
32
569
566
296
S 411
349
()
*
()
^
()
*
()
*
311
1,436
1,386
3,426
2,214
2,166
2,005
1,952
53,425-
58,230
9,513
9,061
98
101
221
5,879
789
()
^
1,561
5,026
13,797
5,024
2,775
23
2,362
6,641
13,093
5,416
1,058
13
()
*
()
*
4,537
28,206
()
*
535
11
520
7
3,141
389
3,737
3,437
9,960
9,239
327
27
5
2,628
3,227
520
7
99
4,025
1,138
()
*
132
310
529
2,811
672
1
101
202
592
3,344
296
1
vn
00
vn
o
13,155
6,052
5,678
17,146
7,659
84
12,248
6,511
6,531
17,792
5,172
68
19,707
15,854
30,425
63,980
17,245
124
8
18
51
80
o
28,583
49,783
. 48,340
147,386
150,435
H
21
1
20
6
55,073
4,420
55,287
5,034
353
"3^539
3*539
4,127
4,006
57,886
4,453
8 447
13,288
58 061
5 079
8^411
12,775
935
880
3,562
40,538
3,565
42,229
63,620
64,327
76,073
40,538
76,326
42,229
5,390
5,417
72,306
74,377
113,403
112,667
263,997
268,990
()
*
()
*
19,515
18 405
31,960
71,706
8 672
X
tn
H
96
:i:
tn
()
*
vn
>
BY CALL CLASSES
Public marketable, due or first becoming callable:
Within 1 year
1 to 5 years...,'
5 to 10 years
10 to 15 years
15 to 20 years
Over 20 years
Varioxis (Federal Housing Administration debentures)
Total public marketable.
27,247 19,954
17,782 20,472
3,477 13,150
2,569
2,382
108
76
27
31
51,211
643
360
1,704
4,683
111
306
429
1,041
118
3,030 1,048
2,599 4,500
56,065
112
120
121
20
9
11
*Less than $500,000.
^ Banks and insurance companies covered in the Treasxiry survey of ovmer ship of
securities issued or guaranteed by U. S, Government accoxmt for approximately 95
percent of the amovmt of such securities oxmed by all banks and insurance companies in the United States. Details as to each issue of secxirity sire available in
-the-"-Treasury-Bxil-letin"—(-a)-monthl-y—for—above~investors-and-(-b)—quar4ierly—throug —
the September 1947 Bulletin and semiannually thereafter for comraercial banks classified by membership in the Federal Reserve System.
2 Secxirities held in trust departments are excluded.
^ Includes trxist companies and stock savings banks.
* Includes banks and insurance corapanies which are not covered in the Treasxiry
survey (see footnote l),
^ Issues which commercial banks (banks accepting demand deposits) are not permitted to acquire prior to specified dates, with 3 exceptions: (l) Concurrently
with Fourth, Fifth, and Sixth War Loans and Victory Loan, commercial banks were
permitted to subscribe for limited investment of their savings deposits; (2) commercial banks may temporarily acquire such issues throxigh forfeiture of collateral; and (3) commercial banks may hold a limited amount of such issues for
trading purposes. Bank restricted issues as of June 30, 1954, and the earliest .
dates on which coramercial banks may ovm them are as follows:
539
406
1,606
3,120
1,403
817
1,049
1,148
741
1,551
1,528
688
39
()
*
29
()
*
4,455
16,100 16,418
6,595 7,142
1,639
1,950
3,718
2,930
155
()
*
28,206
30,194
4,491
4,102
9,927
25,333
7,796
5,849
8,218
76,017
30,162
13,018
26,546
63,291
38,407
27,113
19,937
144
1,059
1,125
1,592
1,606
()
*
8
18
51
80
28,583
49,783
48,340
Bank restricted issues of Treasury bonds
2 1/2^, Mar, 15, 1966-71,
2 1/2^, June 15, 1967-72,
2 1/2^, Dec. 15, 1967-72,
Earliest date
on which
commercial
bariks may
o ^ bonds
^m
Dec. 1, 1954
June 15, 1962
Dec, 15, 1962
>
DO
r
° Excludes guaranteed obligations held by the Treasury,
' U. S. savings bonds other than Series G, H, and K are included at cxirrent redemption values. They were reported at matxirity value by banks and insurance companies covered in the Treasxiry sxirvey and have been adjxisted to cxirrent redemption
value for this•table.
^ Includes depositary bonds held by commercial banks not included in sxirvey:
$128 million in 1953 and $112 million in 1954,
580
1954 REPORT OF THE SECRETARY OF THE TREASURY
GOLD, SILVER, AND GENERAL FUND ASSETS AND LIABILITIES
TABLE 5 0 . - - A s s e t s and liabilities ofthe T r e a s u r y , June 30, 1953 and 1954
[On basis of daily Treasury statements, see "Bases of Tables"]
June 30, 1953
June 30, 1954
Increase, or decrease ( )
-
GOLD
$22,462,596,644.72
Liabilities:
Gold certificates-'• .
Gold certificate fund - Board of Governors,
Federal Reserve System
»
Redemption fund - Federal Reserve notes
$21,926,743,671.57
-4535,852,973.15
-1 121 220 00
2,852,168,179.00
2,851,046,959.00
17,680,547,219.97
790,178,073.01
156,039,-430.93
983,663,741.81
17,561,547,208.70
861,405,136.68
156,039,430.93
496,704,936.26
-119,000,011.27
71,227,063.67
22,462,596,644.72
21,926,743,671.57
-535,852,973.15
2,126,273,078.67
•286,487,109.00
2,157,561,967.50
276,038,801.00
31,288,888.83
-10,448,308.00
2,412,760,187.67
2,433,600,768.50
20 840 580 83
2,377,378,702.00
1,143,152.00
34,238,333.67
2,393,916,871.00
1,142,371.00
38,541,526.50
16 538 169 00
• 78]_ 00
4,303,192.83
2,412,760,187.67
2,433,600,768.50
20 840 580.83
983,663,741.81
496,704,936.26
486 958 805 55
34,238,333.67
14,827,408.05
38,541,526.50
54,707,738.40
4 303 192 83
39 880 330 35
33,544,452.14
1,543,078.56
4,450,039.00
71,513,755.00
390,800.00
579,520.00
74,911,949.02
131,993.03
13,662,811.07
3,713,176.92
2,218,519.00
76,620,110.00
763,010.00
141,370.00
50,075,015.49
1,219,663,077.25
737,280,206.67
482,382 870.58
132,349,634.32
210,436,093.07
874,867,086.54
274,440,674.57
742,517,452.22
64,004,581.50
3,071,119,395.98
413,393,953.10
49,264,772.48
4,835,898,773.57
432,613,124.95
87,611,420.83
1 764 779 377 59
19,219,171.85
38,346,648.35
Subtotal
3,876,563,848.95
6,505,431,080.46
2 628,867 231.51
Total assets-, general fund.
5,096,226,926.20
7,242,711,287.13
2,146,484,360.93
Total
-486,958,805.55
SILVER
Assets:
Silver dollars
Total
....
Liabilities:
Silver certificates outstanding'''
Total
GENERAL FUND
Assets:
In Treasury offices:
Gold (as above)
Silver:
Bullion:
Unclassified - collections, etc
Subtotal
•
Deposits in:
Federal Reserve Banks:
Available funds
131
-19,881
2 170
-2 231
5 106
372
-438
-24 836
993 03
641.07
098 36
520 00
355 00
210.00
150 00
933 53
Special depositaries. Treasury tax and
National and other bank depositaries
Footnotes a t end of t a b l e .
581
TABLES
T A B L E 50. --Assets and liabilities of the Treasury, June 30, 1953 and 1954--Continued
June 30, 1953
June 30, 1954
Increase, or decrease (-)
GENERAL FUND—Continued
Liabilities:
Treasxu-er's checks outstanding
Deposits of Government officers:
Post Office Department
Board of Trustees, Postal Savings System:
5 percent reserve, lawful money.....
Other deposits
|,
.
Postmasters' disbursing accounts, etc..'.,
Uncollected items, exchanges, etc...
Total liabilities, general fund.
Balance in general fund
Total general fund liabilities and balance
$8,307,045.61
$23,778,938.77
$32,085,984.38
142,760,012.59
226,865,899.88
84,105,887.29
123,000,000.00
6,816,695.63
123,946,287.84
5,676,743.31
113,000,000.00
940,421.44
84,613,455.25
18,750,464.81
-10,000,000.00
-5,876,274.19
-39,332,832.59
13,073,721.50
425,978,678.14
476,256,225.76
50,277,547.62
4,670,248,248.06
6,766,455,061.37
2,096,206,813.31
5,096,226,926.20
7,242,711,287.13
2,146,484,360.93
•' Does not include amounts held in Treasury joffices and by Federal Reserve Banks and agents in custody for
'
the Treasxirer of the United States. See table 89.
2 Reserve against United States notes ($346,|68l,016 in 1953 and 1954) and Treasury notes of 1890 outstanding ($1,143,152 in 1953 and $1,142,371 in 1954). Treasury notes of 1890 are also secured by silver dollars
in the•Treasury.
j
^ There were 350,924,917.2 ounces of these iteras held on June 30, 1953, and 247,886,446.5 ounces on June
30, 1954, by certain agencies of the Federal Government.
I
'
TRUST FUNDS AND CERTAIN OTHER ACCOUNTS OF THE FEDERAL GOVERNMENT
TABLE 5 1 . --Holdings of F e d e r a l s e c u r i t i e s by Government agencies and a c c o u n t s , at p a r value, June 30, 1944-54
[In thousands of' d o l l a r s ]
June 30,
1944
June 30,
1945
June 30,
1946
June 30,
'1947
June 30,
1948
June 30,
1949
June 30,
1950
June 30,
1951
June 30,
1952
June 30,
1953
June 30,
1954
ACCOUNTS HANDLED PRIMARILY
BY THE TREASURY^
Federal Deposit Insurance
Corporation
Federal employees' retiremerit
funds:
Alaska railroad retirement
and disability fund
Canal Zone retirement and
disability fund
Civil service retirement
and disability fund
Foreign service retirement
and disability fund
Federal old-age and survivors
insurance trust fund
Federal Savings and Loan Insurance Corporation.........
Postal Savings System
Railroad retirement account...
Unemployraent trust fund
Veterans' life insurance funds:
Government life insurance
fund
. National service life insurance fund
Special term insurance fund
Other trust funds and accounts:
Adjusted service certificate
fund
Ainsworth Library fund.
Walter Reed General
Hospital
Alien property trust fund..
Canal Zone Postal Savings
X
tn
686,526
835,087
975,787
1,122,308
1,016,790
Footnotes at end of table.
1,275,790
1,338,350
1,422,300
1,510,700
1,612,750
X
O
1,755
1,911
2,360
2,680
3,070
3,447
9,187
10,298
11,325
12,257
13,127
13,918
()
'
()
'
H
X
7,012
7,836
8,678
9,638
12,087
14,497
16,850
16,867
16,592
16,130
15,229
vn
GO
vn
5,408,834
6,545,934
7,548,734
8,742,334
9,930,137
11,224,137
12,639,137
14,317,437
16,268,037
17,814,387
19,337,092
X
146,782
1,951,995
318,500
5,870,000
155,462
2,574,765
500,500
7,307,000
165,962
3,026,883
657,000
7,409,000
178,212
3,303,016
805,500
7,852,000
191,462
3,289,818
1,374,500
8,297,000
206,662
3,188,314
1,720,000
8,137,000
3 191,312
3,038,297
2,057,600
7,413,000
3 202,212
2,718,741
2,414,490
8,063,000
209,540
2,558,209
2,863,144
8,644,000
218,240
2,481,042
3,142,803
9,236,000
228,940
2,246,642
3,345,255
8,988,000
1,299,000
1,234,000
5,249,479
425
5,272,479
3,025
5,113
4,643
H
>
a
1,450,913
1,848,270
2,155,034
2,435,238
2,794,611
3,243,427
3,801,278
4,374,518
4,998,402
1,054,093
1,140,585
1,162,435
1,254,000
1,286,500
1,318,000
1,291,500
1,300,000
1,300,500
1,213,425
3,187,125
5,239,685
6,473,685
6,934,685
7,287,685
5,342,144
5,435,644
5,190,644
16,890
10
14,500
12,500
12,250
5,800
5,563
5,250
10
10
10
10
10
10
3,746
4,166
5,168
5,576
6,247
4,656
8,050
Comptroller of the Currency
employees' retirement fund
1,133,790
9,450
9,850
9,850
9,350
3,700
4,525
4,725
4,805
5,055-
9,350
8,850
5,165
10
^ 4,710
6,850
5,115
5,586,418
5,839,646
10
10
10
4,958
7,200
6,650
7,100
7,100
7,100
n
vn
H
>
o
H
X
tn
GO
3
District of Columbia:
Highway fund
Motor vehicle parking fund.
Public works and other
5,779
527
6,757
870
20,310
1,773
20,000
21,810
1,773
20,000
23,510
1,773
25,000
1,000
1,250
1,250
1,250
3,850
4,450
5,950
3,300
700
800
950
800
4,000
7,200
9,450
12,750
10,550
145,999
171,867
194,167
235,067
212,667"
11,500
8,100
77,300
20,600
2,000
2,000
2,000
5,000
15,000
15,000
15,000
13,930
9,961
13,964
13,974
11,237
1,773
20,452
11,429
1,773
20,000
11,629
1,773
20,000
13,556
1,773
20,000
14,991
1,773
20,000
16,904
1,773
20,000
18,444
1,773
20,000
1,000
1,000
1,000
2,431
2,431
2,431
Teachers' retirement and
Water fxmd
Exchange stabilization fund..
Farm tenant mortgage insxirFederal Housing Administration:
Housing insurance fxmd...
Housing investment insxirance fxmd
Military housing insurance fund
Mutual mortgage insxirance
fund
*
National defense housing
insurance fund
Title I housing insxirance
fund
War housing insxirance
fxmd
General post fund. Veterans'
10,480
1,773
20,452
2,431
72,239
2,431
87,500
2,431
92,512
2,431
107,012
121,499
129,499
^17-400400
6,400
8,000
11,000
12,000
33,500
61,000
80,600
75,900
2,142
2,316
2,666
2,666
2,866
1,390
1,334
1,334
1,433
1,434
1,945
1,030
1,780
4,350
4,350
4,350
2,770
2,770
1,670
• 1,570
47,031
18
47,802
18
41,875
18
46,060
18
43,663
18
41,293
18
39,189
18
38,843
18
35,425
18
191
191
191
193
193
193
199
199
5 7
199
16
16
16
16
16
63
63
63
86
86
86
86
86
86
86
86
86
7,070
Pershing Hall Memorial fund..
Preservation Birthplace of
Abraham Lincoln, National
Public Health Service Gift
fxmds
Public Housing Administration
Relief and rehabilitation.
Longshoremen's and Harbor
Workers' Compensation Act..
7,870
7,870
7,870
7,870
254
344
. 404
416
402
402
550
550
Footnotes at end of table.
r
vn
63
79
632
Hospital fund, U.S. Army,
Office of the Surgeon
Individual Indian trust
fxmds
National park trust fund
Office of naval records and
library fund
Patients' benefit fund.
Public Health Service
>
DD
c/5
1,845
34,076
18
31,831
18
7
199
00
TABLE 51. --Holdings of Federal securities by Government agencies and accounts, at par value, June 30, 1944-54--Continued
00
4^
[in thousands of dollars]
June 30,
1944
June 30,
1945
June 30,
1946
June 30,
1948
June 30,
1947
June 30,
1949
June 30,
1950
June.30,
1951
June 30,
1952
June 30,
1953
June 30,
1954 •
ACCOUNTS HANDLED PRZMARILY BY
TOE TREASURY^
Other trust funds and
accounts—Continued
Relief and rehabilitation.
Workmen's Compensation Act
within the District of
Columbia
Special trust account for
payment of pre-1934
Philippine bonds
U.S. Army and Air Force
Motion Picture Service
U.S. Naval Academy general
gift fund
U.S. Naval Academy museum
44
48
71
54
81
87
87
97
101
101
11,140
14,026
16,521
19,082
15,138
7,471
6,467
1,000
1,000
500
500
85
85
85
1
1
1
^ 28,605,736 ^ 32,457,637 ^ 35,432,716 ^ 37,792,150 ^37,412,519 ^40,581,392 "^43,887,613
^ 47,041,552
48,524,873
43,038
310,398
43,038
378,198
52,078
670,254
o
49,933
H
2,018
1,922
2,172
3,242
4,542
2,065
2,065
85
85
85
85
85
85
85
1
Total handled primarily by
Treasury
1
1
1
1
1
1
^18,314,656 ^24,343,293
- 85
1
home loan banks..
intermeciiate credit
land banks
National Mortgage As-
Home Owners' Loan Corporation..
Inland Waterways Corporation...
Joint stock land banks''
Panama Canal Corapany
Production credit corporations.
Reconstruction Finance CorporaRegional Agricultural Credit
Corporation of Washington,
DC
Footnotes at end of table.
H
O
H
X
vn
GO
m
o
X
tn
H
>
ACCOUNTS HANDLED PRIMARILY BY
OTHER AGENCIES^
Federal
Federal
banks
Federal
Federal
s
X
81
42,784
131,534
42,849
158,406
53,906
120,844
42,568
155,464
42,656
162,118
42,656
357,790
42,788
285,136
36,000
402,594
36,511
159,690
43,151
135,615
43,151
43,151
44,654
45,254
634
15,000
6,400
36
16,969
57,802
569
15,000
6,650
51
22,219
64,233
565
15,000
4,132
15
21,826
67,825
71,769
75,052
47,955
236
326
350
C)
5
15,200
2,288
12,400
50
10,200
50
2,000
50
i9,'350
67,036.
20
65,870
.**20
37,352
20
39,832
1,704
42,788
243,728
45,754
69
48,329
(«)
198
()
«
16
42,488
1,158
125
""26
41,780
1,158
51,252
154
15
44,593
X
12-
15
41,761
vn
H
X
vn
>
GO
c
RFC Mortgage Company, The
U.S. Spruce Production Corporation
Total handled priraarily
by other agencies
Total holdings of securities by Government
agencies and accoxmts..
956
5,467
115
115
782,830
587,138
8,017
115-
519,316
^ 19,097,487 ^ 24,930,431 ^ 29,125,051
346,765
^ 32,804,403 ^35,759,106
r Revised.
• For further details on certain of these accounts, see tables 52 through 71.
•
•
^ Transferred to civil service retirement and disability'fund.
^ Includes a U. S. Government security of $1,000 thousand which was included in
assets purchased from an insured institution to prevent default.
* Figures are as of Apr. 30, 1951.
' Information on amount of Federal secxirities held by this fund prior to June 30,
1952, is. not available at this time.
L_Som^e_oXjWiejjW(estmen't^ transactions clear throxigh the accounts of the Treasxirer
of the United States.
326,389
492,722
415,079
375,296
445,618
^° 517,250
^° 814,053
^ 38,284,872 ^ 37,827,598 ^ 40,956,688 ^ 44,333,231 ^° ^ 47,558,802
^° 49,338,926
• The proprietary interest of the United States in these banks ended June 26, 1947.
^ Thei Corporation has been liquidated.
' Represents securities of the joint stock land banks held by the Federal Reserve Banks
and branches.
^ ° Excludes securities in the amounts of $42,880 thousand and $29,280 thousand held by
the Atomic Energy Commission as of June 30, 1953,-and June 30, 1954, respectively, which
in txirn are held by trustees for the protection of certain contractors against financial
loss in event of a catastrophe.
>
r
m
00
(Jl
586
1954 REPORT OF THE SECRETARY OF THE TREASURY
T A B L E 52.-.-Adjusted service certificate fund, Jtme 30, 1954
[This trust fxmd was established in accordance.with the provisions of the act of May 19, 1924 (43 Stat. 128).
For fxu-ther details see annual report of the Secretary for 1941, p. 135]
I. RECEIPTS AND EXPENDITURES (EXCLUSIVE OF PURCHASES AND SALES OF INVESTMENTS)
Cumulative
through June
30, 1953
Fiscal year 1954
Cumulative
through June
30, 1954
Receipts:
$3,639,157,956.40
137,502,823.93
Checks for amoxmts less than $50
Checks paid by Treasurer of the United States
other than in final settlement of certificates
under the Adjusted Compensation Payment Act,
1936, less credits on accoxmt of repayments of
$3,639,157,956.40
137 704 176 97
3,776,660,780.33
Total receipts
Expenditxires:
Payments under Adjusted Compensation Payment
Act, 1936, enacted Jan. 27, 1936:
Adjusted service bonds
Adjusted service bonds (Government life
$201,353.04
201,353.04
3,776,862,133 .-37
1,850,299,900.00
27,000.00
1 850 326 900 00
500,157,956.40
83,882,398.42
1,251.00
500 157 956 40
83 883 649 42
r 1,337,165,334.99
1 337 830 690 94
693,606.95
3 772 199 196 76
^ 5,155,190.52
Balance
665,355.95
^ 3,771,505,589.81
Total expenditures
-492,253.91
4,662,936.61
II. ASSETS HELD BY THE TREASURY DEPARTMENT
Assets
Investments:
A special. Treasury certificates of indebtedness,
%
adjusted service certificate fund series:
Maturing Jan. 1, 1954
Maturing Jan. 1, 1955
Total investments
June 30, 1953
Increase., or decrease (-), fiscal year 1954
June 30, 1954
$5,113,000.00
-15,113,000.00
4,643,000.00
$4,643,000.00
5,113,000.00
-470,000.00
^ 4 643 000 00
^ 42,190.52
-22,253.91
19,936.61
^ 5,155,190.52
-492,253.91
4,662,936.61
587
TABLES
TABLE .53.--Ainsworth L i b r a r y fund, Walter Reed General Hospital, June 30, 1954
[This t r u s t fund was established in accordance with the provisions of the j o i n t resolution of Congress
approved May 23, 1935 (49 S t a t . 287). For further d e t a i l s ' s e e annual report of the Secretary for 1941,
p . 154]
I
I. RECEIPTS AND EXPENDITURES (EXCLUSIVE OF PURCHASES AND SALES OF INVESTMENTS)
Cumulative
thi.'ough
June 30, 1953
Receipts:
Bequest of Maj. Gen. Fred C, Ainsworth.,..
Fiscal year
1954
$10,700.00
4,584,40
$278,87
Cumulative
through
June 30, 1954
$10,700.00
4,863.27
15,284.40
4,937,49
278,87
15,563.27
4 937.49
10,346,91
278.87
10,625.78
Increase, or
decrease (-),
fiscal year 1954
June 30, 1954
1
I I . ASSETS HELD BY THE TREASURY DEPARTMENT
June 30, 1953
Assets
Investments—2 7/8 percent Treasury bonds of
1955-60 (par value $9,700)
Total
$9,972.81
374,10
,.,
1
$278,87
$9,972.81
652.97
10,346,91
278,87
10 625.78
588
1954 REPORT OF THE SECRETARY OF THE TREASIIRY
T A B L E 54.--Civil service retirement and disability fund, June 30, 1954
[.This trust fund was established in accordance with the provisions of the act of May 22, 1920 (41 Stat.
614). For fxirther details see annual report of the Secretary for 1941, p. 136]
I. RECEIPTS AND EXPENDITURES (EXCLUSIVE OF PURCHASES AND SALES OF INVESTMENTS)
Cumulative
through
June 30, 1953
Receipts:
On account of deductions from basic compensation and service credit payments of em- .
ployees subject to retirement act^
^ $4,145,455,606.93
r 22,758,784.51
On account of voluntary contributions
^ 3,317,358,290.00
1,491,337,768.24
Interest and profits on inves-tments
Transferred from the Comptroller of the
Currency retirement fund, act of June 28,
1948:
Cash and securities
3 ^ 5,050,000.00
8,981,960,449.68
Expenditures:
Annuity payments and refunds
Transfers to policemen's and firemen's
relief fund, D. C :
^ 3,346,195,693.34
Fiscal year
1954
Cumulative
throxigh
June 30, 1954
2 $430,351,330.85
2,615,150.00
31,397,000.00
225,654,018.14
$4,575,806,937.78
25,373,934.51
3,348,755,290.00
1,716,991,786.38
690,017,498.99
9,671,977,948.67
409,124,673,81
^ 3,755,320,367.15
5,050, ooo.'oo
55,852.61
26 628.76
55,852.61
26,628,76
^ 3,346,278,174,71
409,124,673.81
3,755,402,848.52
r 5,635,682,274.97
Balance
280,892,825.18
5,916,575,100.15
II. ASSETS HELD BY THE TREASURY DEPARTMENT
Assets
Investments:
A% special Treasury certificates of indebtedness, civil service retirement fund
series, maturing June 30:
1954
1955
3^.special Treasury certificates of indebtedness, civil service retirement fund
series, raaturing Jxme 30:
1954
1955
A special Treasury notes, civil service
%
retirement f\md series, maturing June 30:
1954
1955
1956
1957
3% special Treasury notes, civil service
retirement fund series, maturing June 30:
1954
1955
•
1956
1957
June 30, 1953
$845,440,000.00
1,048,000.00
Increase, or decrease (-), fiscal
year 1954
June 30, 1954
-$845,440,000.00
2,264,179,000.00
$2,264,179,000,00
-1,048,000.00
4,117,000.00
4 117 000.00
1,166,208,000.00
1,107,076,000,00
1,101,839,000.00
1,351,859,000.00
-1,166,208,000.00
2,372,000,00
3,006,000,00
3,408,000.00
3,462,000,00
-2,372,000.00
5,585,718,000,00
253,228,000.00
5,838,946,000.00
253,228,000.00
5,839,646,000.00
1,107,076 000.00
1 101 839 000,00
1,351,859,000.00
3 006 000.00
3,408,000.00
3,462,000.00
Total Treasury notes and certificates
United States savings bonds, 2-1/25S Series
G-1942 to 1948
Total investments
Undisbursed balance
Unappropriated receipts
Total assets
700,000,00
^ 700,000.00
5,586,418,000.00
^ 49,264,274.97
19,208,945.71
8,455,879.47
68 473 220,68
8 455 879,47
^ 5,635,682,274.97
280,892,825.18
5 916 575 100.15
NOTE,—Figures are on basis of daily Treasury statements through June 30, 1953, and the "Monthly Statement of Receipts and Expenditures of the United States Government," beginning with the fiscal year 1954,
r Reyised,
^ Represents 2 l/2^ from August 1, 1920, to June 30, 1926; 3 l/2^ from July 1, 1926, through June 30, 1942;
5i> from July 1, 1942, through Jxme 30, 1948; and 6^ thereafter. Revised to include District of Colximbia and
Government corporations contributions.
2 Includes June 1954 receipts amounting to $8,455,879.47 not appropriated until fiscal year 1955.
^ Represents cash derived from sale of securities in the amoxmt of $4,350,000.00 and $700,000.00 par
amoxmt of secxirities still held. This transaction was a transfer from the Comptroller of the Currency.
* Transferred from the Comptroller of the Currency.
TABLES
TABLE 55. - - D i s t r i c t of
589
Columbia t e a c h e r s ' r e t i r e m e n t and. annuity f u n d - - A s s e t s held by the T r e a s u r y
Deparitment, June 30, 1954
[This fund was established in accordance with 'the provisions of the act of Aug. 7, 1946 (60 S t a t . 875), as
successor t o the D i s t r i c t of Columbia t e a c h e r s ' retirement fimd established xmder the act of Jan. 15,
1920, as amended, effecting the consolidationj of the deductions fxmd and the Government reserve fund as
of July 1, 1945]
June 30,
1953^ .
(principal
cost)
In ves "traents:
Treasury bonds:
2 1/2^ cf 1956-58
2 1/2^ of June 15, 1964-69 (dated
April 15, 1943)
;
2 1/2^ of Dec. 15, 1964-69 (dated
Sept. 15, 1943)
2 1/2^ of 1965-70
2 1/2^ of 1966-71
3 1/4^ of 1978-83
2 l/2^ Investment Series A-1965....
2 3/4^ Investraent Series B-1975-80.
U. S. savings bonds, series G, 2 l/2^.,.
Increase, or
decrease(-),
f i s c a l year
.1954
June 30, 1954
Par value
Principal cost
$49,100.31
Total assets.
Assets according to accounts:
Deduction accoxmt
Voluntary contributions accoxmt.
Total assets (including accrued interesti).
$47,000.00
879,721.25
878,000.00
879,721.25
1,303,500.00
257,000.00
1,499,493.04
77,500.00
250,000.00
14,320,194.00
3,155,000.00
$1,700,000.00
1,303,500.00
257,000.00
1,517,000.00
1,777,500.00
250,000.00
14,325,000.00
3,155,000.00
1,303,500.00
257,000.00
1,499,493.04
1,777,500.00
250,000.00
14,320,194.00
3,155,000.00
21,791,508.60
1,700,000.00
23,510,000.00
23,491,508.60
140,921.39
89,957.72
2,300.37
161,437.57
143,222.26
251,395.29
22,022,388.21
Total investments.
Accrued interest receivable.
Unexpended balance
$49,100.31
1,863,737.94
23,886,126.15
21,906,425.88
115,962,33
1,841,511.93
22,226.01
23,747,937.81
138,188.34 .
22,022,388.21
1,863,737.94
23,886,126.15
Includes deductions fund and Government reserve fxmd reported on page 567 and 568 of 1946 annual report.
T A B L E 56.--Districtof Columbia water fund Investments held by the Treasury Department, June 30, 1954
th
[These investraents were made in accordance wi' the provisions of the act of June 29, 1937 (50 Stat. 392)
and in subsequent appropriation acts for the District of Colurabia. For further details see annual report
of the Secretary for 1941, p. 142]
Investments
June 30,
1953,
(principal
cost)
Increase, or
decrease (-),
fiscal year
1954
June 30, 1954
Par value
Principal cost
Treasury bonds:
2 3/8^ of 1957-59.,
2 3/455 of 1958-63.
2 3/456 of 1960-65.,
$100,000.00
749,110.01
987,511.56
$100,000.00
736,000.00
937,000.00
$100,000.00
749,110.01
987,511.56
Total investments.
1,836,621.57
1,773,000.00
1,836,621.57
339256
0 - 5 5 - 3 9
590
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 57. --Relief and rehabilitation. Workmen's Compensation Act, within the District of Columbia-A s s e t s held by the T r e a s u r y Department, June 30, 1954
[This t r u s t fund was established in accordance with the provisions of the act of May 17, 1928 (45 s t a t . 600).
For further d e t a i l s see annual report of the Secretary for 1941, p. 141]
Assets
Investments:
Treasury bonds:
2 7/8^ of 1955-60
2 1/2^ of 1962-67
2 1/2^ of 1966-71
3 1/4^ of 1978-83
2 3/4^ Investraent Series B-1975-80.
U. S. savings bonds. Series G, 2 l/2^..
June 30,
1953
(principal
cost)
Increase, or
decrease
(-), fiscal
year 1954
June 30, 1954
Par value
Principal cost
$10,000.00
5,000.00
10,000.00
4,000.00
6,000.00
65,600.00
100,475.01
$10,165.63
5,000.00
9,709.38
4,000.00
6,000.00
65,600.00
100,600.00
$10,165.63
5,000.00.
9,709.38
4,000.00
6,000.00
65,600.00
100,475.01
6,547.33
$4,806.42
11,353.75
107,022.34
4,806.42
111,828.76
^ Formerly known as D i s t r i c t of Columbia workmen's compensation fxmd.
591
TABLES
T A B L E 58...--Federal old-age and survivors insurance trust fund,, June 30, 1954
[On basis of daily Treasury statements through 1952, thereafter on basis of "Monthly Statement of Receipts
and Expenditures of the United States Government,"'see "Bases of Tables," This trust fund, the successor
to the old-age reserve account was established in accordance with the provisions of the,Social-Secxirity
Act Amendments of 1939 as amended by the Social Security Act Amendments of .1950 (64 Stat. 521), For further
details see annual report of the Secretary for 1940, p,- 212, and 1950, p, 42]
I. RECEIPTS AND EXPENDITURES (EXCLUSIVE OF PURCHASES AND SALES OF INVESTMENTS)
• Cumulative
through June
30,.1953
Adjustments to
monthly
statement
• Fiscal year
.1954•
.
, Cxumilative
through
June 30, 1954
'Receipts:
Deposits by States^
,,......
, Interest and profits on in-
$25,906,239,244,02
. - 69,867,131,06
2 -$748.85 $4,537,269,800.32 $30,443,508,295.49
'' 767,441.84
92,411,873.89
163,046,446.79
2,524,824,640,00
15,386,400,00
Transfers from general fund,...
Transfers from railroad retirement account. Sec. 5 (k)(2)(b)
of Railroad Retirement Act of
'438,908,882.68
64/503,55
...,.
^- 36.00
28,516,381,918.63
Other^
766,728.99
-
2 963 733 522.68
15 386 400.00
•1-1,595,000.00
'67,701.04
' 11 595 000 00
132 240.59
5,080,253,257.93 33,597,401,905.55
Expenditures:
9,483,514,009.26
^ -219,234.30. 3,275,556,451.89 12 758' 851 226 85
Reimburseraents to general-fund:
• Under Sec. 201 (f)(1) of the
Social Security Act, as
'. amended, administrative ex311/122,888.02
24,930,286,78
336 053 174.80
33,000,000.00
- 40,500,000:00
73 500,000.00
4,372,325.00
1,034,500.00
5,406,825,00
7,537.25
7,537.25
62,731,623,88
• 380,967,799.27
- Under Sec, 201 (f)(2)-of
the Social Security Act,
Other, Department of Health
Payments for Bureau of Old-Age
• and Survivors Insurance (Con" struction of building, Public'
Law 170 67 Stat. 254.)...'
• Administrative expenses;
• salaries and expenses,- BureaiT-'
, of Oid-Age and Survivors In-^
" 318,016,262.66
^
B'alance
678.43
3,404,760,399.80 13,554,786,563.17
18,366,356,433.69
''
*
' " ^ 219,912,73
10,150,025,484.94
766,050.56
1,675,492,858,13 20,042,615,342.38
II ASSETS HELD BY THE TREASURY DEPARTMENT
Assets
June 30, 1953 •
• Adjustments
- to monthly
• ' statement
Increase, or
decrease (-),fiscal year 1954
.
June 30, 1954
Investments:
Special Treasury certificates
of indebtedness, 2.1/4^
maturing Juhe 30:
$15,531,700,000.00
$15,531,700,000.00
17^054,405,000.00 $17,054,405,000.00
15,531,700,000.00
1,522,705,000.00 17,054,405,000.00
1955
Total special certificates
of indebtedness.,,.
• Treasury bonds:
2 l/4fo .of June 15, 1959-62
(dated Jxine 1, 1945)..'
2 1/4$^ of Dec, 15, 1959-62
(dated Nov, 15, 1945)
. 2 l/2f» of June 15, 1964-69
'
(dated Apr, 15, 1943)
2 1/2% of Dec, 15, 1964-69
(dated Sept. 15, 1§43).....
0 ^ /O'^ nf 1965 70
9 1 /??' o-T 1 Qft6 71
2 1/2^ of June .15, 1967-72
(dated June 1, 1^5),.,,...
2 l/2fo of Sept. 15, 1967-72
(dated Oct. 20, 194l)
2 l/2fa of Dec. 15, 1967-:j72
(dated Nov, 15, 1945)
938,000.00
938,000.00
3,267,000,00
58,650,000,00
116,480,000.00
3,267,000.00
58,650,000.00
116,480,000.00
18,452,000.00
18,452,000.00
75,252,000,00
456,547,500,00
.308,077,500,00
75,252,000.00
456,547,500.00
. 308,077,500.00
100,000,00
100,000.00
117;621,250,00
117,621,250.00
300,000.00
300,000.00
592
1954 REPCeT OF THE SECRETARY OF THE TREASURY
T A B L E 58. --Federal old-age and survivors insurance trust fund, June 30, 1954--Continued
II. ASSETS HELD BY THE TREASURY DEPARTMENT
Assets
Treasury bonds—Continued
2 3/4^, Investment Series
B-1975-80
....
. .
3 l/4?£ of 1978-83
June 30, 1953
Adjus-tments
to monthly
statement
Increase, or
decrease (-),
fiscal year 1954
June 30, 1954
$1,081,902,000.00
45 100 000.00
$1,081,902,000,00
45,100,000.00
^ 2 282 687 250,00
Total Treasury bonds,
^ 2,282,687,250.00
Accrued interest purchased
86,826.06
3,119,277.65
-$86,826.06
-347,772,86
2,771)504,79
17,817,593,353.71
1,522,270,401.08
19,339,863,754,79
283,690,636.63
85,465,819.23
369,156,455.86
261,884,393,52
67,391,763.95
329,276,157,47
11 26,685,04
26,685,04
Unexpended balances:
To credit of disbursing officers:
Federal old-age and survivors
insurance trust fund: benefit
On books of the Division of
Central Accounts:
Unrequisitioned balance
(Federal old-age and survivors insurance trust fund)
Unappropriated receipts
(Federal old-age and survivors insurance trust fxmd)
On books of the Treasurer,
U, S.12
To credit of disbursing officer:
Bureau of Old-Age and
Survivors Insurance:
Salaries and expenses....
Construction of building
748,85
2 -$748.85
-219,234,30
13 219,234,30
3,406,535,28-
-219,912.73
613,203,92
492,462,75
3,799,826.47
492,462.75
-1,427,28
1,676,260,335.97
20,042,615,342,38
.
18,366,356,433.69
I Appropriation to the Federal old-age and survivors insurance trust fund equivalent to the amount of taxes
collected and deposited for old-age insurance (42 U,S,C. 401 (a); see also footnote 3 ) . The Social Security
Act Amendments of 1950 (Public Law 734), approved August 28, 1950, changed in certain respects the basis of
transferring the appropriated funds to the trust fund, Effec.tive January 1, 1951, the amounts transferred currently as appropriations to the trust fund are based on estimates bf old-age insurance tax receipts made by
the Secretary of the Treasury pursuant to the provisions of Sec. 109 (a) (2) of the Amendments of 1950, and
are adjusted in later transfers on -the basis of wage and self-employment income records maintained in the
Social Security Administration.
^ Adjustment for transfer from daily Treasury statement basis to raonthly stateraent basis.
3 Amounts deposited in accordance with Title II of the Social Security Act, Sec. 218 (e) as added by Sec.
106 of Public Law 734, approved Aug. 28, 1950.
^ Receipts applicable to fiscal year 1953 appropriated in fiscal year 1954',
^ Represents reimbxirsement for services and proceeds from sale of material and products.
^ Adjustment from checks paid to checks issued basis.
" Beginning July 1, 1946, pai.d directly from the trust fund under Labor-Federal Security Appropriation Act
^
1947 (60 Stat. 679),
^ See footnote 6,
^ Effective Dec. 30, 1949, public issues held by the fund are shown at face value. Total unamortized premium is shown separately below,
1° Beginning May 1, 1953, represents net of premiuin and discount,
II Represents deposits by States in the amount of $26,595,96 and deposits "Other" in the amount of $89,08,
1? Represents outstanding checks.
13 This adjustment required to close outstanding check accoxmt. The amoxmt is now reflected in benefit payments. See footnote 6.
593
TABLES
TABLE
59. --Foreign service retirement and disability fund, June 30, 1954
[This trust fxmd was established in accordance with the provisions of Sec. 18 of the act of May 24, 1924
(43 Stat, 144), For further details see annual report of the Secretary for 1941, p. 138]
I. RECEIPTS AND EXPENDITURES (EXCLUSIVE OF PURCHASES AND SALES OF INVESTMENTS)
Cumulative
through
June 30, 1953
Fiscal year
1954
Cumxilative
through
June 30, 1954
Receipts:
On account of deductions from basic compensation and service credit payments of em$9,202,724.43
14,683,900.00
6,755,896,91
;...
Balance
614,839,11
$9,904,208.25
14,683,900,00
7,370,736.02
30,642,521.34
1,316,322,93
31,958,844.27
2,204,995.38
16,616,794.22
16,230,722.50
Total receipts
Expenditures:
Annuity payments and refunds
1 $701,483.82
14,411,798.84
Apprqpriations
Interest and profits on investments
-888,672,45
15,342,050.05
II. ASSETS HE .D BY THE TREASURY DEPARTMENT
Assets
June 30, 1953
Investments:
Ai) special Treasury certificates of
indebtedness, foreign service retirement
fund series, maturing June 30:
1954
1955
yf) special Treasury certificates of
indebtedness, foreign service retirement
fund series, maturing June 30:
1954
1955
Aio special Treasury notes, foreign service
retirement fund series, maturing June 30:
1954
1955
1956
1957
3io special Treasury notes, foreign service
retirement fund series, maturing June 30:
1954
1955
1956
1957
i
$2,753,000.00
102,000.00
Increase, or
decrease .(-),
fiscal year 1954
June 30, 1954
-$2,753,000.00
6,052,000.00
$6,052,000.00
-102,000.00
246,000.00
246,000.00
Total assets
..,,,'
-4,260,000.00
83,500.00
125,000.00
101,000.00
152,600.00
-83,500.00
16,129,900.00
-900,500,00
15,229,400.00
100,822.50
Total investments
4,260,000.00
2,739,000.00
2,436,000.00
3,377,800.00
-25,065.87
36,893.42
75,756.63
36,893.42
16,230,722.50
-888,672.45
15,342,050.05
2,739,000.00
2,436,000.00
3,377,800.00
125,000.00
101,000.00
152,600.00
NOTE.—Figures are on basis of daily Treasury statements throxigh June 30, 1953, and the "Monthly Statement of Receipts and'Expenditures of the Uniteli States Governinent," beginning with the fiscal year 1954.
1 Includes $36,893.42 receipts applicable to fiscal year 1954 not appropriated until fiscal year 1955.
594
1954 REPORT OF THE SECRETARY OF THE TREASURY
T A B L E 60. --Library of Congress trust fund, June 30, 1954
[This trust fund was established in accordance with the provisions of the act of Mar. 3, 1925 (43 Stat.1107).
For further details see annual report of the Secretary for 1941, p, 149]
1. ASSETS HELD BY THE TREASURY DEPARTMENT AND CERTAIN FEDERAL RESERVE BANKS, SUBJECT TO THE ORDER OF THE
SECRETARY OF THE TREASURY, FOR ACCOUNT OF THE LIBRARY OF CONGRESS TRUST FUND B O A R D I
June 30, 1953
Increase,
fiscal year
1954
June 30, 1954
R, R. Bowker donation
7% German extemal loan bonds, German Government....,
6 1/2^ sinking fund gold bonds, Japanese Government,,
48 shares, common stock, American Telephone &
Telegraph Co
;
,
$2,000.00
2,000.00
$2,000.00
2,000,00
4,800.00
Elizabeth Sprague Coolidge donation
496 shares, common stock. Commonwealth Edison Co..,.,
Joseph Pennell donation
4^ general consolidated mortgage bonds Series A,
Lehigh Valley R, R. Co
,
A general consolidated mortgage bonds Series D,
%
Lehigh Valley R, R. Co
,
20 shares capital stock, Lehigh Valley R, R. Co
,
4 1/2^ prior lien gold bonds. National Railways of
Mexico
,
5% consolidated mortgage bonds, Pennsylvania and
New York Canal and R. R. Co
5% sinking fxmd gold bonds, Philadelphia and Reading
Coal and Iron Co
54 shares, common stock, Pittsburgh Consolidation
Coal Co
134 shares, common stock, Pennsylvania R. R. Co
112 shares, common stock, Westmoreland Coal Co
105 shares, common stock, Westmoreland, Inc
Temporary certificate for 20 shares common stock,
Philadelphia & Reading Coal & Iron Co. (New Co)...
Total securitiesi
Unexpended balances on books of the Treasury:
Permanent loan fund:
Babine
Beethoven
Benjamin
Bowker
Carnegie
Coolidge
Louis C. Elson memorial fxmd
Friends of Music in the Library of Congress
Guggenheim
Huntington
Koussevitzky Music Foxmdation, Inc
Longworth
Miller.
' National Library for the Blind
Pennell
Porter
Roberts Fxmd
Whittall
Whittall, No. 2 Poetry Fund
Whittall, No. 3, General Literature
Wilbur
3,750.00
200.00
3,750,00
200.00
3,000.00
3,000.00
1,000.00
1,000.00
735.00
735.00
54.00
6,700.00
2,240.00
1,050.00
54.00
6,700.00
2,240.00
1,050.00
20.00
20,00
41,199,00
41,199,00
6,684.74
12,088.13
83,083.31
1,603.16
93,307.98
150,704.01
12,585.03
5,509,09
90,654,22
162,052.26
118,491.40
9,691.59
20,548.18
36,015.00
289,470.69
290,500.00
62,703.75
653,953.94
101,149.73
50,000.00
305,813.57
6,684,74
12,088,13
83,083,31
1,724,12
93,307,98
150,704.01
12,585.03
5,509.09
90,654.22
162,052.26
126,732.82
9,691.59
20,548.18
36,015.00
289,470,69
290,500,00
62,703.75
673,013.83
101,149.73
50,000.00
305,813.57
19,059.89
Total permanent loan fxmd
2,556,609.78
27,422.27
Total assets
2,597,808.78
27,422.27
2,625,231.05
1 Does not include securities held as investments for Huntington donation xmder deed of trust dated
Nov. 17, 1936, administered by designated trustees, including Bank of New York.
595
TABLES
TABLE 60. - - L i b r a r y of C o n g r e s s t r u s t fund, June 30, 1954--Continued
II.
LIBRARY OF C N R S TRUST FUND. EARNINGS T JUNE 30, 1954
O G ES
O
Cumulative
through June
30, 1953
Fiscal year
1954
Cumulative
through June
30, 1954
Income account, secxurities, r e a l e s t a t e , e t c .
Babine
Beethoven
Benjamin
Bowker
Carnegie
Coolidge
Friends of Music in the Library of Congress.
Guggenheim
Huntington
Longworth
Miller
Pennell
Porter
Wilbur
Total.
$1,785.58
4,429.73
49,744.50
6,952.86
37,838.36
117,992.63
318.22
32,759.36
2 224,071.83
757.02
412.50
84,435.28
25,369.03
107,345.09
$692.00
892.80
$1,785.58
4,429.73
49,744.50
7,644.86
37,838.36
118,885.43
318.22
32,759.36
235,302.93
757.02
412.50
85,206.50
25,369.03
107,345.09
707,799.11
694,211.99
Income accoxmt, permement loan fxmd
Babine
Beethoven
Benjamin
Bowker
Carnegie
Coolidge
Louis C. Elson memorial fund
Friends of Music in the Library of Congress.
Guggenheim
Huntington
Koussevitsky Music Foxmdation, Inc
Longworth
Miller
National Library for the Blind
Pennell
Porter
Roberts Fxmd
Whittall
Whittall No. 2,'Poetry Fund
Whittall No. 3, General L i t e r a t u r e
Wilbxir
Total.
$4, 272.85
202.46
725.17
632.23
113.30
479.85
099.51
144.53
034.34
266.14
364.07
175.04
968.09
974.67
470.17
228.04
458.69
260- 924.17
10 147.93
2 208.79
190 969.60
$267.39
483.52
3,323.34
66.93
3,732.32
6,028.16
503.40
220.36
3,626.16
6,482.10
4,889.87
387.66
821.92
1,440.60
11,578.82
11,620.00
2,508.16
26,848.05
4,045.98
2,000.00
12,232.56
$4,540.24
7,685.98
23,048.51
699.16
60,845.62
84,508.01
4,602.91
2,364.89
57,660.50
93,748.24
20,253.94
5,562.70
7,790.01
2,415.27
159,048.99
91,848.04
7,966.85
287,772.22
14,193.91
4,208.79
203,202.16
1,040,859.64
103,107.30
1,143,966.94
1,735,071.63
1,851,766.05
Includes income under deed of trxist dated iNov. 17, 1936; administered by designated trustees, including
Bank of New York.
596
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 61.--Relief and rehabilitation, Longshoremen's and Harbor-Workers' Conipensation Act, as
a m e n d e d - - A s s e t s held by the T r e a s u r y Department, June 30, 1954
[This t r u s t .fund was established in accordance with the provisions of the act of Mar. 4, 1927 (44 S t a t .
1444.) For further details see annual report of the Secretary for 1941, p. 14l]
Assets
June 30, 1953
Increase, or
decrease (-),
fiscal year
1954
Investments:
Principal cost
Treasury bonds:
$14,920.25
2 7/8^ of 1955-60
14,976.20
2 3/45S of 1956-59
15,936.38
2 3/A% of 1958-63
14,985.94
2 3/495 of 1^60-65
23,000.00
2 1/2^ of 1962-67
.2 1/2^ of June 15, 1964-69 (dated Apr.
11,500.00
15 1943)
^
v
'
79,616.88
2 1/2JS of 1966-71
25,000.00
3 1/456 of 1978-83
108,000.00
2 3/AI0 Investment Series B—1975-80
U S savings bonds Series J 2.7656 ....
348,700.00
U.S. savings bonds. Series G, 2 l/2^
June 30, 1954 O
Par value
Principal cost
$14,800.00
$14,920.25
14,850.00
14,976.20
15,600.00
15,936.38
13,900.00
14,985.94
23,000.00
23,000.00
11,500.00
82,000.00
25,000.00
108,000.00
69,425.00
348,700.00
11,500.00
79,616.88
25,000.00
108,000.00
49,986.00
348,700.00
726,775.00
706,621.65
$49,986.00
656,635.65
49,986.00
47,883.46
-20,696.84
27,186.62
704,519.11
29,289.16
733,808.27
•
1 F o r m e r l y , l o n g s n o r e m e n ' s and h a r b o r w o r k e r s ' c o m p e n s a t i o n
fund.
T A B L E 6 2 . - - N a t i o n a l A r c h i v e s gift f u n d ,
J u n e 30,
1954
[ T h i s t r u s t fund was e s t a b l i s h e d i n a c c o r d a n c e w i t h t h e p r o v i s i o n s of t h e N a t i o n a l A r c h i v e s T r u s t Fund
Board Act of J u l y 9 , 1941 (55 S t a t . 581]
I . RECEIPTS AND EXPENDITURES
Cumulative
throxigh
June 30, 1953
Fiscal year 1954
$12,888.24
12,533.36
$84,467.08
67,942.53
Receipts—Donations•
Expenditures
Cumulative
through
June 30, 1954
$97,355.32
80,475.89
16,524.55
II. ASSETS HELD BY THE TREASURY DEPARTMENT
Assets
June 30, 1953
$16,524.55
Increase, or
decrease (-),
fiscal year 1954
$354.88
June 30, 1954
$16,879.43
597
TABLES
T A B L E 63. —National park trust fund, June 30, 1954
[This trust fund was established in accordance with the provisions of the act of July 10, 1935 (49 Stat.
477). Fcr further details see I annual report of the Secretary for 1941, p, 153]
I. RECEIPTS AND EXPENDITURES (EXCLUSIVE OF PURCHASES AND SALES OF INVESTMENTS)
Cumulative
through
June 30, 1953
Fiscal year 1954
Cumulative
through
June 30, 1954
Receipts:
$43,084.13
7,857.99
4,378.98
3,500.00
55,321.10
1 23,420.00
31,022.12
Balance
$47,002,48
8,318.62
50,942.12
19,920.00
Total receipts
Expenditxires
$3,918.35
460.63
878.98
31,901.10
II. ASSETS HELD BY THE TREAE5URY DEPARIMENT
June 30, 1953
Investments:
Treasury bonds:
2 3/8 % of 1957-59
2 1/2 % of 1963-68
2 1/2 % of 1966-71
2 1/2 % of Sept. 15,
1941)
Increase, or decrease (-),
fiscal year 1954
$1,500.00
1,000.00
• 14,793.75
$1,500.00
1,000,00
• 14,793.75
1967-72 (dated Oct 20,
'
Total investments.
Unexpended balances:
Undisbursed balance....
Unappropriated receipts
Total assets.
Exclusive of investment transactions.
• Par value $15,000.
June 30, 1954
1,000.00
18,293.75
5,662.36
7,066.01
$7,449.99
-6,571,01
13,112.35
495.00
31,901.10
598
1954 REPORT OF THE SECRETARY OF THE TREASURY
T A B L E 6 4 . - - N a t i o n a l s e r v i c e l i f e i n s u r a n c e fund,
June 30,
1954
[ T h i s t r u s t fund was e s t a b l i s h e d p u r s u a n t t o T i t l e VI of P u b l i c Law 8 0 1 , approved O c t . 8, 1940 (54 S t a t .
1 0 1 2 ) . For f u r t h e r d e t a i l s s e e a n n u a l r e p o r t of t h e S e c r e t a r y f o r 1 9 4 1 , p , 1 4 3 ]
I , RECEIPTS AND EXPENDITURES (EXCLUSIVE OF PURCHASES AND SALES OF INVESTMENTS)
Cumulative
through June
30, 1953
Receipts:
Premiums and other receipts
Fiscal year
1954
Cumulative
through June
30, 1954
$5,908,766,999.07
1,465,927,735.05
4,490,903,085,54
$390,772,749.72
156,398,261.37
72,102,207.52
$6,299,539,748.79
1,622,325,996.42
4,563 005 293.06
11,865,597,819.66
619,273,218.61
12 484 8 ' 038.27
'1
3,011,253,213.13
3,549,827,637.36
230,040.67
444,748,626.67
177,600,977.68
189,146.62
3,456 001 839.80
3 727 428 615,04
419 187.29
Total
6,561,310,891.16
622,538,750,97
7 183 849 642.13
Balance
5,304,286,928,50
Total receipts
,
Expenditures:
II.
Investments:
3 percent special Treasury notes, national
service life insurance fund series, maturing:
June 30, 1954
June 30, 1955
,
June 30, 1956
June 30, 1957
June 30, 1958
June 30, 1959
Total a s s e t s .
5 301 021 396.14
ASSETS HELD BY THE TREASURY DEPARTMENT
June 30, 1953
Total inves'traents.
Undisbursed balance
-3,265,532.36.
Increase, or de
crease (-), fiscall
year 1954
June 30, 1954
$2,597,000,000,00
292,459,000.00
792,000,000.00
375,485,000.00
1,192,535,000,00
$2,597,000,000.00
10,000,000.00
2,610,000,000.00
$292,459,000,00
792,000,000.00
375,485,000.00
1,202,535,000.00
2,610,000,000.00
5,249,479,000.00
54,807,928.50
23,000,000,00
-26,265,532.36
5,272,479,000.00
28,542,396.14
5,304,286,928.50
-3,265,532.36
5,301,021,396.14
1 There has been appropriated through June 30, 1954, the amount of $4,715,244,000.00 available to the
Veterans' Administration for -transfer and certain benefit payments, in accordance with provisions of the
National Service Life Insurance Act of 1940, as amended (38 U.S.C. 804).
599
TABLES
TABLE 65. - - P e r s h i n g Hall Memorial fund, June 30, 1954
I
[ T h i s s p e c i a l fxmd was e s t a b l i s h e d i n a c c o r d a n c e w i t h t h e p r o v i s i o n s of t h e a c t of June 2 8 , 1935
(49 S t a t . 4 2 6 ) . F o r f u r t h e r d e t a i l s s e e a n n u a l r e p o r t of t h e S e c r e t a r y f o r 1 9 4 1 , p . 1 5 5 ]
i . RECEIPTS AND EXPENDITURES (EXCLUSIVE OF PURCHASES AND SALES OF INVESTMENTS)
Cumxilative
through
June 30, 1953
Fiscal year
1954
Cumulative
through
June 30, 1954
Receipts:
$482,032,92
91,045,65
$4,977.50
$482,032.92
96,023,15
573,078,57
4,977,50
578,056.07
288,629,70
82,773.69
7,466,25
288,629,70
90,239.94
371,403,39
7,466,25
378,869.64
201,675,18
-2,488.75
199,186.43
Total receipts
Expenditxires:
On account of current clairas and expenses
On accoxmt of National Treasurer,.America 1 Legion
I I . ASSETS HELD BY THE TREASURY DEPARTMENT
Assets
Investments:
U S savines bonds
June 30, 1953
'
j
2 1/2/6..,.'
Decrease (-),
fiscal year
1954
June 30, 1954
$199,100.00
2,575.18
^2,488.75
$199,100.00
86.43
201,675,18
Series G
-2,488,75
199,186.43
'
TABLE 66. --Public Health Service gift funds--Investments held by the T r e a s u r y Department,
I June 30, 1954
[These investments were made in accordance with the provisions of the ac.t of July 1, 1944 (58 Stat. 709)]
June 30, 1954
Investments
i
Treasury bonds: 2 I/25J of June 15, 1967-72(d'ated
Jxme 1 1945)
'
June 30,
1953
Fiscal year
1954
Par value
Principal
cost
$86,000.00
$86,000.00
$86,000,00
86,000.00
86,000.00
86,000,00
600
1954 REPORT OF THE SECRETARY OF THE TREASURY
T A B L E 67. --Railroad retirement account. June 30, 1954
[On basis of daily Treasury statements throxigh 1952, thereafter on basis of "Monthly Statement of Receipts
and Expenditures of the United States Government," see "Bases of Tables." This trust accoxmt was established in accordance with the provisions of Sec. 15 (a) of the act of June 24, 1937 (50 Stat. 316). For
further details see annual report of the Secretary for 1941, p. 148]
I. RECEIPTS AND EXPENDITURES (EXCLUSIVE OF PURCHASES AND SALES OF INVESTMENTS)
Cumxilative
through
June 30, 1953
Fiscal year 1954
Curaxaative
through
June 30, 1954
Receipts:
2 $5,965,720,874.74
3 $637,874,784.65 2 $6,603,595,659.39
Balance available for transfer from railroad
18,656,682.00
476,866,232.30
Total receipts
..
Expenditures:
- Benefit payments
* -18,656,682.00
98,658,516.00
575,524,748.30
6,461,243,789.04
3 717,876,618.65
7,179,120,407.69
484,583,315.65
5,819,590.69
3,722,359,410.39
27,419,398.61
5 3,237,776,094.74
21,599,807.92
Transfer to Federal old-age and survivors insurance trust fund in accordance with
Section 5 (k) (2) (b) of the Railroad
Retirement Act of 1937 as araended
11,595,000.00
11,595,000.00
5 3,259,375,902.66
501,997,906.34
3,761,373,809.00
5 3,201,867,886.38
3 215,878,712.31
3,417,746,598.69
II. ASSETS HELD BY THE TREASURY DEPARTMENT
Assets
Investments:
yf) special Treasury notes, railroad retireraent series, maturing:
,
June 30, 1954
June 30, 1955
Jxme 30, 1956
. .
....
June 30, 1957
June 30, 1958
June 30, 1959
Treasury bonds:
3. 1/4^ of 1978-83
'
June 30, 1953
$631,000,000.00
613,590,000.00
643,729,000.00
1,028,046,000.00
211,438,000.00
Increase, or
decrease (-),
fiscal year 1954
June 30, 1954
-$631,000,000.00
. 661,635,000.00
186,817,000.00
$613,590,000.00
643,729 000.00
1,028,046,000.00
873,073,000.00
186,817,000.00
Unexpended balances:
To credit of disbursing officer
On books of the Division of Central Accounts
(railroad retirement appropriated accoxmt)
Total assets
15,000,000.00
-15,000,000.00
3,142,803,000.00
202,452,000.00
3,345,255,000.00
72,491,598.69
^ 40,408,204.38
32,083,394.31
" 18,656,682.00
^
* -18,656,682.00
3,201,867,886.38
3 215,878,712.31
3,417,746,598.69
Revised.
1 Includes the Government's contribution for creditable military service xmder the act of April 8, 1942
(56 Stat. 204), Effective July 1, 1951 (65 Stat. 222 and 66 Stat. 371), appropriations of receipts are equal
to the amount of taxes deposited in the Treasxiry (less refunds) xmder the Railroad Retirement Tax Act (26
U, S, C. 1500-1538).
2 Appropriation reduced by the amoxmt of $9,000,000 covering transfer for acquisition of service and
compensation data in accordance with Public Res. 102, 76th Cong., approved Oct. 9, 1940. Of this amount
$230,000 was returned to the railroad retirement accoxmt by transfer appropriation warrant, and appropriation of $498.50 adjxistment authorized by the Railroad Retirement Board in September 1947. Appropriation
reduced $4 by transfer counter warrant in January 1950, in order to pay a claim pending in General.Accounting Office.,
^ Does not include $18,790.16 unappropriated receipts as of Jxme 30, 1954, as noted xmder trust receipts
in the final "Monthly Statement of Receipts and Expenditxires of the United States Government," fiscal year
1954.
^ Rescission by the act approved July 31, 1953 (67 Stat. 258).
^ Revised from checks paid to checks issued basis. Checks outstanding in the amoimt of $859.88 were excluded from expenditures in the unexpended balance in table 62 in.the 1953 annual report.
^ Beginning Aug. 1, 1949, paid from the trxist fund under Title IV, act of June 29, 1949 (63 Stat. 297).
T A B L E 68. - - U n e m p l o y m e n t trust fund. June 30, 1954
[On basis of daily Treasxiry statements throxigh 1952, thereafter on basis of "Monthly Statement of Receipts and Expenditures of the United States Govemment," see "Bases of Tables.
This trust fund was established in accordance with the provisions of Sec. 904 (a) of the Social Security Act of Aug. 14, 1935 (49 Stat. 640). For further details see annual
report of the Secretary for 1941, p. 145]
o
I. RECEIPTS AND EXPENDITURES (EXCLUSIVE OF PURCHASES AND SALES OF INVESTMENTS)
n
State unen5)loyment agencies
Cumulative
through
June 30, 1953
Fiscal year
1954
Cumulative
throxigh
June 30, 1954
Railroad xmeraployment insurance account!
Cxiraulative
through
June 30, 1953
Receipts:
Deposits... ''$17,819,589,246.03 $1,245,961,438.55 $19,065,550,684.58 2 $932,067,966,77
Transfers
from State
unemployment funds
to railroad unemployment
insurance
107,160,768.89
accoxmt^..
Advance by
the Secretary of
the Treasury (July
5,1939)...
15,000,0.00.00
Transfers
from railroad unemployment
insurance
administration
fund (act
of Oct.
10, 1945
(54 Stat.
90,155,411.00
1099))
Interest on
investments
1,687,612,442.06
208,728,147.50
1,896,340,589.56
168,234,579.12
Total receipts.. ^ 19,507,201,688.09
1,454,689,586.05
20,961,891,274.14
1,312,618,725.78
Fiscal year
1954
Cumxilative
through
June 30, 1954
Total, xmemployment trxist fund
Cumulative
through
June 30, 1953
Fiscal year
1954
$17,835,376.99 $949,903,343.76 ^ $18,751,657,212.80 $1,263,796,815.54
Cximulative
throxigh
June 30, 1954
$20,015,454,028.34
4^.
X
vn
H
O
vn
107,160,768.89
107,160,768.89
107,160,768.89
s
vn
H
~
15,000,000.00
15,000,000.00
15,000,000.00
o
X
vn
vn
>
4,243,628.00
94,399,039.00
90,155,411.00
4,243,628.00
94,399,039.00
15,682,728.64
183,917,307.76
1,855,847,021.18
224,410,876.14
2,080,257,897.32
37,761,733.63 1,350,380,459.41
^ 20,819,820,413.87
1,492,451,319.68
22,312,271,733.55
Expenditures:
Withdrawals
by States. ^ 10,845,833,877.06
Transfers
to railroad unemployment
insurance
account
from State
unemployment
107,160,768.89
fxmds^
Repayment
of advance
to the
Secretary
of the
Treasury
(January
1940)
Railroad
uneinployment~bene—
fit payments
Transfers
to railroad xmemployment
administration
fund (act
of June
23, 1948
(62 Stat.
577))
12,450,652,877.06
^ 10,845,833,877,06
107,160,768.89
1,604,819,000.00
107,160,768.89
107,160,768.89
15,000,000.00
15,000,000.00
15,000,000.00
732,800,244.51
^ 592,766,325.65
15,000,000.00
^ 592,766,325.65
732,800,244.51
>
r
tn
GO
12,338,198.54
1,604,819,000.00
12,557,813,645.95
^ 8,554,207,042.14
-150,129,413.95
8,404,077,628.19
12,338,198.54
12,338,198.54
12,338,198.54
140,033,918.86
760,138,443,05
^ 11,573,099,170.14
1,744,852,918,86
13,317,952,089.00
^ 692,514,201.59 -102,272,185.23
590,242,016.36
^ 9,246,721,243.73
-252,401,599.18
8,994,319,644.55
^ 620,104,524.19
Revised.
1 Established by the Railroad Unemployment Insurance Act of 1938 (52 Stat. 1104).
2 Contributions under the Railroad Unemployment Insurance Act of 1938, as amended
(45 U.S.C. 360 (a)), in excess of -the amoxmt specified for administrative expenses.
140,033,918.86
12,450,652,877.06
CO
Total
expenditures. .. ^ 10,952,994,645.95
Balance..
140,033,918.86
1,604,819,000.00
3 Amoxmts equivalent to amounts of taxes collected with respect to the period from
Janxiary 1936-to Jxme 1939, inclxisive, from eniployers who came within the purview of.the
Railroad Unemployment Insurance Act, Sec. 13 (d) and Sec. 13 (f).
o
604
1954 REPORT OF THE SECRETARY OF THE TREASURY
T A B L E 6 8 . - - U n e m p l o y m e n t t r u s t fund,
June 30,
1954--Continued
I I . ASSETS HELD BY THE TREASURY DEPARTMENT
June 30, 1953
Investments:
Special Treasury certificates of indebtedness, unemployment trust fund:
2 3/8^ series maturing June 30, 1954...
2 1/4^ series maturing June 30, 1955...
Increase, or decrease
(-), fiscal year 1954
June 30, 1954
$8,287,000,000.00
-$8,287,000,000.00
8,024,000,000.00
$8,024,000,000.00
8,287,000,000.00
-263,000,000.00
8,024,000,000.00
Treasury bonds:
2 1/4^ of Dec. 15, 1959-62 (dated Nov.
15, 1945)
2 1/2^ of 1962-67
2 1/2^ of 1963-68
2 1/2^ of June 15, 1964-69 (dated Apr.
15, 1943)
2 1/2^ of Dec. 15, 1964-69 (dated Sept.
15, 1943)
2 1/2^ of Sept. 15, 1967-72 (dated Oct.
20, 1941)
3 1/4^ of 1978-83
2 3/Ai), Investment Series B-1975-80
2 3/4^ of 1961
4,000,000.00
51,000,000.00
56,000,000.00
4,000,000.00
51,000,000.00
56,000,000.00
29,000,000.00
29,000,000.00
7,000,000.00
7,000,000.00
. .
7,000,000.00
50,000,000.00
745,000,000.00
949,000,000.00
967,555.27
-248,074,908.65
8,988,967,555.27
'^ 7,519,605.46
-6,347,771.67
1,171,833.79
^ 2,159,174.35
2,021,081.14
4,180,255.49
^ 9,246,721,243.73
Total assets
964,000,000 00
-74,908.65
9,237,042,463.92
Unexpended balances:
Trust accoxmt
Deposit account (railroad unemployment insxu-ance benefits and refunds)
15,000,000.00
1,042,463.92
Total investments
15,000,000.00
7,000,000.00
50,000,000.00
745,000,000.00
15,000,000.00
-252,401,599.18
8,994,319,644.55
I I I . AMOUNTS OF UNEMPLOYMENT TRUST FUND, CUMULATIVE TO JUNE 3 0 , 1 9 5 4 , CREDITED TO THE ACCOUNT OF EACH
STATE AGENCY AND TO THE RAILROAD UNEMPLOYMENT INSURANCE ACCOUNT
Total
Alabama
Alaska
Arizona
Arkansas
California
deposits
Net e a r n i n g s
credited to
accoxmt
Total withdrawa l s from
account
Balance
J u n e 3 0 , 1954
$193,597,602.28
28,693,117.93
63,510,271.78
91,949,820.23
2,169,363,365.05
$16,762,547.21
2,091,453.77
6,970,265.78
9,090,598.42
175,551,150.77
$135,385,000.00
26,885,378.48
25,772,234.97
57,012,846.36
1,548,440,279.44
87,870,283.22
391,183,000.00
29,513,500.20
76,209,662.88
158,175,820.77
13,088,004.52
47,216,774.21
4,292,881.22
13,402,465.80
17,383,241.29
32,447,040.19
206,816,996.24
17,086,069.51
34,087,229.25
89,262,550.60
68,511,247.55
231,582,777.97
16,720,311.91
55,524,899.43
86,296,511.46
Georgia
Hawaii
Idaho
Illinois
Indiana
215,814,192.82
37,079,282.62
57,445,097.27
1,160,573,170.14
406,359,201.56
26,064,100.48
5,616,175.28
5,836,731.35
135,606,578.14
50,509,717.25
107,018,698.83
20,296,881.25
29,367,013.78
808,209,013.81
247,094,592.27
134,859,594.47
22,398,576.65
33,914,814.84
487,970,734.47
209,774,326.54
Iowa
Kansas
Kentucky
Louisiana
Maine
147,091,180.90
. 127,371,999.59
238,271,000.00
247,701,000.00
107,973,600.00
21,451,659.00
15,825,540.20
29,432,554.11
23,743,856.55
9,509,591.28
60,744,841.32
66,216,509.23
133,177,978.21
146,382,139.06
75,164,837.04
107,797,998.58
76,981,030.56
134,525,575.90
125,062,717.49
42,318,354.24
Colorado
Connecticut.......
Delaware
Dist. of Columbia.
Florida
Revised to checks issued basis.
$74,975,149.49
3,899,193.22
44,708,302.59
44,027,572.29"
796,474,236.38
605
TABLES
T A B L E 6 8 . . - ^ U n e m p l o y m e n t t r u s t fund J u n e 30,
III.
1954—Continued
AMOUNTS OF UNEMPLOYMENT TRUST FUND,. CUMULATIVE TO JUNE 3 0 , 1 9 5 4 , CREDITED TO THE ACCOUNT OF EACH
• STATE AGENCY AND TO THE RAILROAD UNEMPLOYMENT INSURANCE ACCOUNT—Continued
Total
$277,126,000.00
'856,295,000.00
1,074,233,481.79
•240,077,807.29
83,511,978.76
Maryland......
Massachusetts.
- Michigan
Minnesota.-.-...
Mississippi...
Missouri......
. Montana
•.
•
Nebraskai,.....
Nevada
New Hampshire.
.Net e a r n i n g s
credited to
account '
deposits
-
365,072,668.20
. 63,262,197:20
. 58,070,135.90
. 30,547,820.17
71,590,368.01
Total withdraw-'
a i s from
account
$30,460,455..69
51,185,633.86
79,964,223.38
28,166,670.06
8,963,292.97
$186,300,347.37
658,862,725.57
744,216,485.64
143,395,982.32
. 53,202,412.60
199,595,464.25
214,416,964.15
28,727,957.77
41,700,680.19
- •27,146,585.10
• 39,509,216.05
17,146,734.46 • 16,468,492.68
57,155,106.20
20,459,128.42
482,834,772.51
716,429,521.02
33,490,873.51
17,854,544.782,415,620,977.24 1,270,366,092.71163,573,334.43 - 171,145,125.81
• 13,368,479.75
10,135,225.54
644,485,854.90
525,739,005;70
82,789,133.15 • 53,017,555.40
60,-798,421.00
154,835,392.41
463,969,718.98
1,115,748,998.97
21,543,183.94
211,745,673.54
48,939,760.20-
.
21,423,280.31
Ohio..
Oklahoma.........
Oregon
-.
;,
Pennsylvania...,
Rhode Island...,
• 1,027,272^94^.70
122,951,000.00
-197,565,304.50
1,428,262,000.00
' 221,203,927:95
142,951,910.90
12,855,688.55
18,068,508.-91
151,456,717.95
12,084,929.53
South. Carolina'.,
South Dakota...,
Tennessee.......
Utah.
:127,918,500.00
. 17,760,400.00
.'.261;874,779.57
370,170,000.00
68,576,867.70
13,184,-311.59
2,521,986.93
23,632,681.52
53,718,376.20
7,489,078.54
Vermont;.....-.,
Virginia
'
,
Washington...;,
West Virginia.,
Wisconsin....;.,
Wyoming........
33,654,613.16
167,319,500.00
436,130,602.61
194,438,467.76
-334,825,985.48
24,961,925.99
3,764,478.29
- 20,613,435.10
38,420,128.06
• 20,581>406.17
-55,578,182.31 •
2,962,874.98
Texas
. Total........
,
Adjustments:
Accrued i n t e r e s t credited t o
State account
,
Total.
Railroad.unemployment insurance' account:
. Deposits of Railroad Retire. . ment Board
;
...
-.
Transfers from State unemployment funds
Interest on. investments
Transfer for railroad xmemployment .insurance benefits
and refxmds
Appropriation advance and repayment.......
Transfers from-administration
fund.... .T^..'...Total
•
,
Adjustments:
Accrued interest credited t o
insxirance accoxmt.
Unexpended balance of transfers
for benefits and refunds.Total.
Total, unemployment trxist
fund
1', 081,525, 500.00
46,325,000.00
3,426,979,453.29
.298,877,000.00
19,065,550,684.58
68,827,067.63
12,931,082,70
-.104,376,020.94
279,471,345.78
34,376,969.88
16,752,017.39
20,667,074.06
91,144,084.88
-96,788,850.22
182,017,552.14
292,533,178.53
140,651,586 .-39 • 74,368,287.54242,535,738.12
147,868,429.67
15,807,761.1212,117,039.85
1,901,542,711.61 112,557,813,645.95
-5,202,122.05
1,409,279,750.24
-5,202,122.05
949,903,343.76
8,404,077,628.19
949,903,343.76
107,160,768.89
184,284,298.19
107-,160,768.89
184,284,298.19
749,318,698,54
-749,318,698.54
15,000,000.00
: 15,000,000.00
94,399,039.00
94,399,039.00
184,284,298.19
764,318,698.54
586,428,751.30
-4,180,255.49
4,180,255.49
760,138,443,05
590,242,016.36
2,080,257,897.32 13,317,952,089.00
8,994,319,644.55
-366,990,43
-366,990.43
1,166,463,151.65
20,232,013,836.23
183,917,307.76
1 Includes transfers to. railroad unemployment insurance account;
339256 O - . 5 5 - 40
72,275,743.96
• 7,351,304.23
181,131,440.15
144,417,030.42
41,688,976.36
19,065,550', 684.58 1,896,340,589.56 12,557,813,645.95
1,166-, 463,151.65
$121,-286,108.32248,617,908.29
409>98l,219.53
124,848,495.03
39,272,859,13
7,166,440.76
8,585,665.25
'3,067,406.97
-. 6,023,866.61'
.
117,738,793.53
5,020,418.29
259,007,616.66
35,841,460.24
2,080,424.98
New Jersey.....
New Mexico......
New York
North Carolina'.
North Dakota...
Balance
J u n e 3 0 , 1954
606
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE
69. --U. S. Government life insurance fund--Investments, June 30, 1:954
[This trust fund was established in accordance with the provisions of the act of June 7, 1924
(43 Stat. 607). For further det?iils see annual.report of the Secretary for 1941, p. 142]
Jxine 30, 1953
Investments:
Government securities:
Special Treasury certificates of indebtedness, 3 1/2^ maturing June 30:
1954
1955
Total investments
Increase, or decrease (-), fiscal year 1954
$1,299,000,000.00 -$1,299,000,000.00
1,234,000,000.00
June 30, 1954
$1,234,000,000.00
1,299,000,000.00
129,284,335.11
Total investments and policy loans in fund...
-65,000,000.00
-2,348,154.73
1,234,000,000.00
126 936 180.38
1,428,284,335.11
-67,348,154.73
1,360,936,180.38
1 Includes interest accrued to anniversary dates of loans.
T A B L E 70. --U. S. Naval A c a d e m y general gift fund, June 30, 1954
[This trust fund was established in accordance with the act of Mar. 31, 1944 (58 Stat. 135)]
I. RECEIPTS AND EXPENDITURES (EXCLUSIVE OF PURCHASES AND SALES OF INVESTMENTS)
June 30, 1953
Fiscal year 1954
June 30, 1954
Receipts:
$118,727.72
18,530.23
$123,727.72
20,655.23
137,257.95
22,298.73
7,125.00
7,740.14
144 382 95
30 038.87
114,959.22
Expenditxires
$5,000.00
2,125.00
-615.14
114,344.08
II. ASSETS HELD BY THE TREASURY DEPARTMENT
Assets
Inves-tments—2 l/2% Treasury bonds of 1965-70....
Undisbxirsed balance
•
.
Total assets
June 30, 1953
Decrease (-),
fiscal year 1954
June 30, 1954
$85,000.00
29,959.22
-$615.14
$85,000.00
29,344.08
114,959.22
-615.14
114,344.08
607
TABLES
T A B L E 7 1 . - - S p e c i a l t r u s t a c c o u n t f o r t h e p a y m e n t of b o n d s of t h e P h i l i p p i n e s , i t s p r o v i n c e s , c i t i e s ,
a n d n n u n i c i p a l i t i e c , i s s u e d p r i o r t o M a y 1, 1 9 3 4 , u n d e r a u t h o r i t y of a c t s of C o n g r e s s , s t a t u s a s of
J u n e 30, 1954
I . RECEIPTS AND EXPENDITURES (EXCLUSIVE OF PURCHASES AND SALES OF INVESTMENTS)
Receipts:
Taxes on exportsInterest on investments
Profits and losses on investments
Unaraortized discount on investraents '.
Sale of stock of Bank of the Philippine Islands
Deposit of Philippine Government
U, S, Treasury bonds received from the Philippine Government
Annual payments by the Philippine Governraent
Total receipts
Expenditxires:
Principal due on matured Phillippine Government bonds
Interest due on outstanding Philippine Government bonds
Return of excess cash to the Philippine Government
$1,586,135.92
2,371,706.38
498,878.35
50.75
43,100,00
13,141.85
6,269,750,00
15,646 ,'589.37
26,429,352,62
$14,259,500,00
1,150,946,88
1,000,000,00
Cancellations:
Philippine Government bonds held in account (face $3,436,000.00), cost
Balance in fund
3,533,585.13
19,944,032,01
6,485,320.61
II. FUND ASSETS
Assets
Investments:
U.S. Treasury bills due Sept. 16, 1954
Treasury bonds:
25^ of 1951-55
Face amount
.,,,
$35,000.00
U.S. savings bonds. Series G-1947, 1948, 1949, 1950, 2 I/256
91,000.00
545,550.00
.,650,000.00
25,000.00
!,921,000.00
148,300.00
648,000,00
400,000,00
2
2
.2
2
2
2
I/25S
1/4^
I/45S
I/45S
1/256
1/2^
of
bf
of
of
of
of
1956-58
1956-59
June 1 5 , 1959-62 ( d a t e d June 1 , 1945)
D e c . 1 5 , 1959-62 ( d a t e d Nov. 1 5 , 1945)
1962-67
1963-68
Total investments
Cash balance with Treasurer of the United States
Total
1 Total .cancellations were made on cost value.
6,466,850.00
18,470,61
6,485,320,61
608
1954 REPORT OF THE SECRETARY OF THE TREASURY
CORPORATIONS AND CERTAIN OTHER BUSINESS-TYPE ACTIVITIES OF THE
UNITED STATES GOVERNMENT
TABLE 72. --Borrowing power and outstanding i s s u e s of Government c o r p o r a t i o n s and c e r t a i n other
b u s i n e s s - t y p e activities whose obligations a r e guaranteed by the United States or
issued to the S e c r e t a r y of the T r e a s u r y , June 30, 1954
[ In millions of d o l l a r s ]
.Outstanding obligations
Corporation or a c t i v i t y
Borrowing
power
Held by
Treasury
Held by others
Unmatxired
I , Agencies authorized to borrow from the
Secretary of the Treasxiry:
Commodity Credit Corporation!
Export-Import Bank of Washington
Federal Deposit Insurance Corporation
Federal Farm Mortgage C o r p o r a t i o n ! , , . ,
Federal home loan banks
Federal Savings and Loan Insurance Corporation
Foreign Operations Administration:^
India emergency food aid
Loan to Spain
,
Mutual defense assistance program
Industrial and informational media guaranties
Housing and Home Finance Administrator:
Federal Nationail Mortgage Association
Housing loans for educational institutions.
Prefabricated housing loans program"^
Slum clearance program
Public Housing Administration
Reconstruction Finance Corporation (in
liquidation)^
Rural Electrification Administration
Saint Lawrence Seaway Development Corporation,
Secretary of Agriculture (Farmers' Horae
Administration)
Secretary of the. Army (natural fibers
revolving fund)
Secretary of the Treasury (Federal Civil
Defense Act of 1950)^..'
Tennessee Valley Authority
Veterans' Adrainistration (veterans' direct
loan program)
Defense Production Act of 1950, as amended:
Export-Import Bank of Washington
General Services Administration!!
Secretary of Agriculture
Secretary of the Interior (Defense Minerals
Exploration Administration)
Secretary of the Treasury!^
Unallocated
Total
II Agencies authorized to issue guaranteed obligations
only in payment of defaulted and foreclosed insxired mortgages:!"^
Federal Housing Administration
Home Ovmers' Loan Corporation (liquidated)
Total
Footnotes at end of table.
8,500
3,500
3,000
500
1,000
750
4,180
1,347
Matured
4,180
1,347
()
*
()
*
48
1,122
27
48
1,122
3 3,650
300
13
5 1,000
1,500
2,233
52
13
38
215
2,233
52
13
38
215
155
" 2,718^
105
154
2,117
154
2,117
50
1,250
48
13
594
2
13
594
2
22
388
342
15
150
15
150
27
62
1,122
193
^ 226
150
250
29
()
*
TABLES
609
*Less than $500,000.
1 Corporation may also issue obligations guaranteed by-the Secretary of the Treasury.
^ This Administration superseded the Mutual Secxirity Agency, effective Aug. 1, 1953, pursuant to
Reorganization Plan No. 7 of 1953, and Executive Order No. 10476 of Aug. 1, 1953.
^ Represents borrowing authority equivalent to amount of gross lending authority,
" Pxirsuant to the act approved Jxme 24, 1954 (68 Stat. 296), the authority of the Administrator to
^
issue obligations to the Secretary of the Treasury terminated on June 30, 1954, except for extensions or
refinancing of existing obligations.
5 Pursuant to the act approved July 15, 1949 (63 Stat, 415), the Administrator, with approval of the
President may issue notes and obligations to the Secretary of the Treasury in an amoxmt not to exceed
$25 million, which- limit could be increased by $225 million on July 1, 1950, and by further amoxmts of
$250 million on July 1 of each of the years 1951, 1952, and 1953, As of Jxme 30, 1954, the President had
approved issuance of obligations amoxmting to $200 raillion,
^ Pursuant to the act approved July 30, 1953 (67 Stat. 230), this Corporation was transferred to the
Secretary of the Treasury for liquidation, effective July 1, 1954.
' Has not been reduced to reflect payment of principal amoxmting to $26 million included in payment
received June 30, 1954, distributed after July 1, 1954.
^ Has not been reduced to reflect payment of principal amoxmting to $54 million included in payment
received .June 30, 1954, distributed after July 1, 1954.
^ In accordance with the act approved July 30, 1953 (67 Stat. 230), the activities carried on pursuant
to Section 409 of the Federal Civil Defense Act of 1950 (64 Stat. 1257), were transferred from the
Reconstruction Finance Corporation to the Secretary of the Treasury as of Sept. 28, 1953.
1° In addition to this amoxint, fxmds may be advanced until June 30, 1955, as the Veterans' Administrator
may request, provided the aggregate so advanced in any one quarter annual period shall not exceed the
sum of $37.5 million, less the amount which had been returned to the revolving fund dxiring the preceding
quarter annual period from sale of loans pursuant to Section 512 (d) of Title III of the Servicemen's
Readjustment Act of 1944, as amended (38 U.S.C. 694m),
1! The Defense Materials Procxirement Agency was abolished, and its activities were transferred to the
General Services Administration in accordance with Executive Order No. 10480 of Aug. 14, 1953.
!^ Pursuant to the act approved July 30, 1953 (67 Stat, 230), and Executive'Order No, 10489, dated Sept.
26, 1953, the activities carried on by the Reconstruction Finance Corporation in accordance with Title
III of the Defense Production Act of 1950, as amended (50 U.S.C. App. 2091-2094), were transferred to the
Secretary of the Treasury, effective at the close of business on Sept. 28, 1953.
I ' Excludes authorization of $3,175 million for subscription to the International Bank for Reconstruction and Development.
1 ^ The authority of the Maritime Administration (formerly shown xmder this heading) to issue debentxires
"
to mortgagees for the xmpaid balance on the property acquired tlxroxigh foreclosure was terminated by the
act approved Aug. 15, 1953 (67 Stat. 626). In accordance with this act, cash shall be paid to mortgagees
for the insured amoxmt of the unpaid balance on the defaulted mortgages which are assigned,
1^ Represents $22,550 million limit of authority to insure mortgages under certain titles of the National
Housing Act, as amended (12 U,S.C, 1701-1750g), and $1,750 million limit of liability on insured loans
and notes under Title I, Section 2 of the same act, as amended. Unused mortgage insurance authorizations
under all titles as of June 30, 1954, amounted to $1,560 million. Debentxires may be tendered and issued
only in exchange for insured property acquired through foreclosxire of mortgages under each title, except
Title I, Section 2. Insurance claims on foreclosed loans and notes under Title I, Section 2 are paid in
cash,
1^ Represents xmpaid balances of matured obligations. Funds are on deposit with the Treasurer of the
United States for payment of these obligations.
610
1954 REPORT OF THE SECRETARY OF THE TREASURY
=8, June 30, 1944-54
housands of dollars. On basis of dally Treasury s
Agency
Con^dit
Credit Cor oration
June 30,
1944
June 30,
1945
June 30,
1946
June 30,
June 30,
1950 '
1,301,000
900,000
June 30,
a "Bases of Tables")
510,000
13,000
580,000
108,000
1,009,982
737,000
529,000
June 30,
1952
June 30,
1953
440,000
1,669,000
3,193,000
2,555,000
1,039,600
1,970,000
1,088,100
964,411
1,096,796
1,149,963
1,188,999
244,000
June 30,
1954
3,612,000
1,227,100
'500
782,007
125,000
21^000
' • - • 366,000
June 30,
1951
4,180,000
Housing and Home Finance Administrator:
1,549,003
Housing loans for educational institutions.
26,670
3,000
489,000
274,051
1,540,220
383,000
360,000
9,205,355
347,000
9,966,141
100', 000
54,000
51,500
49,000
44,000
2,446,097
2^000
32,170
10,000
655,000
197,173
1,750,563
28^000
38,000
655,000
215,000
159,000
154,000
1,950,238 3 2,117,342
100,000
250
398,000
8,416,487
337,000
1,856,213
1,015,193
100,000
Reconstruction Finance Corporation^
500
349,000
1,456,246
1,281,136
750
362,000
'"7i8i0'74
Secretary of Agriculture (Farmers' Home
130,580
Secretary of Agriculture, Farmers' Home Ad- .
15,000
Secretary of the Army (natural fibers revolvSecretary of the Treasury (Federal Civil
Defense Act of 1950)'
•
56, •TVS
56,772
56,772
56,500
39,000
34,000
29,000
Veterans' Administrotion (veterans' direct
107,110
Defense Production Act of 1950, os amended:
333,700
61
283,700
368
150,000
7,400
57,200
122,200
500
4,500
10,000
Secretary of the Interior (Defense Minerals
149,500
10,717,260 12,168,702 11,673,128 11,-^45,841
1 This Admin:
1953, pursuant 1
of Aug. 1, 1953,
' Pursuant to
was transferred
1, 1954.
' Has not beei
2,788,924
6,851,062
8,422,756
9,096,664
9,635,881 12,196,290
12,948,850
' In accordance with the act approved July 30, 1953 (67 Stat. 230), the activities carried on pursuant to Section 409 of the Federal Civil Defense Act of 1950
(64 Stat. 1257), were transferred from the Reconstruction Finance Corporation to
the Secretary of the Treasury on Sept. 28, 1953.
' Tho Defense Materials Procurement Agency was abolished, and its activities
were transferred to the General Services Administration in oooordonoe with Executive Order No. 10480 of Aug. 14, 1953.
' Pursuant to the act approved July 30, 1953 (67 Stat. 230), and Executive Order
Ho. 10489,. dated Sept. 26, 1953, the activities carried on by the Reconstruction
Finance Corporation in accordance with Title III of the Defense Production Act of
1950, as amended (U.S.C. App. 2091-2094), were transferred to the Secretary of the
Treasury, effective at the close of business on Sept. 28, 1953.
TABLE 74. - - D e s c r i p t i o n of T r e a s u r y holdings of bonds and notes issued by Government c o r p o r a t i o n s and other b u s i n e s s - t y p e a c t i v i t i e s , June 30, 1954
[On basis of daily Treasury statements, see "Bases of Tables"]
Title and authorizing act
Coramodity Credit Corporation, act of Mar. 8, 1938, as
amended:
Notes, Series Seven—1955
Export-Import Bank of Wash.ington, act of July 31, 1945,
as amended:
Notes, Series 1959
Notes, Series 1959
Notes, Series 1959
Note, Series 1961
Notes, Series 1961
Date of issue
Redeemable (on
and aft6r)
Payable
Interest payable
Rate of
interest
Principal amount
Percent
June 30, 1954.
At any time.
June 30, 1955.
June 30, Dec. 31.
June 30, 1959.
do
Dec. 31, 1951.
June 30, 1954.
.do.
.do.
.do.
do
Dec. 31, 1961.
do
.do.
.do.
.do.
4^
$4,180,000,000.00
1
1 7/8
2
2 1/8
2
2 1/4
512,600,000.00
174,900,000.00
67,800,000.00
451,100,000.00
140,600,000.00
1,347,000,000,00
Foreign Operations Adrainistration, acts of Apr. 3, 1948, as
amended, and June 15, 1951;!
Note of Administrator (E.C.A.).
Note of Administrator ( E . C A . ) . .
Note of Administrator ( E . C A . ) . .
Note of Administrator ( E . C A . ) . .
Note of Adrainistrator ( E . C A . ) . .
Note of Administrator ( E . C A . ) . .
Notes of Administra-tor ( E . C A . ) .
Notes of Adrainistrator ( E . C A . ) .
Note of Director (M.S.A.)
Oct. 27, 1948.
Apr. 3, 1964.
do
Jan. 24, 1949.
do
do
Various
do
Feb. 6, 1952.
At any time by
agreement.
.do.
.do.
.do.
do
June 30, 1977..
June 30, 1984.
Dec. 31, 1986.
1 7/8
1,410,000.00
X
vn
o
vn
00
tn
Jan. 1, 1955.
July 1, 1958.
Various
May 1, 1954.
Various
Jan. 1, 1954.
June 1, 1954.
.do.
.do.
.do.
.do.
.do.
July 1, 1955.
do
June 30, 1960.
vn
2 1/8
2
2,209,200,000.00
24,010,000.00
vn
>
2 1/8
2 1/2
2 5/8
Jan. 1, July 1.
do.
;...
Various
Dec. 31, 1963.
June 1, 1974..
Various
Dec. 13, 1951.
9
1,202,812,609.58
Housing and Horae Finance Adrainistrator:
Federal National Mortgage Associatioij. Reorganization
Plan No. 22 of 1950:
Notes, Series A
Note, Series B
Housing loans for educational institutions, act of
Apr. 20, 1950:
Notes, Series CH
Note, Series B
Note, Series C
Prefabricated housing loans prograra. Reorganization
Plan No. 23 of 1950, and act of Sept. 1, 1951:
Notes, Series FB
Note, Series LPH.'
''
.
Slxim clearance program, act of July 15, 1949:
Notes
,
.do.
.do.
1,305,000.00
2,272,610.67
330,000.00
75,000.00
152,389.33
48,281,660.75
1,121,995,402.12
26,990,546.71
35,000,000.00
1-1,500,000.00
5,000,000.00
2 1/8
2 1/8
8,393,932.49
4,406,696.10
2
2
2
2
2
1
1
2
.do.
.do.
1/8
1/2
5/8
3/4
7/8
7/8
2 1/8
38,000,000.00
2,335,510,628.59
o
H
X
Public Housing Administration; act of Sept. 1, 1937, as
amended:
Notes, Series P
Notes, Series Q
Notes, Series Q
Notes, Series Q
,
Notes, Series Q.
,
Notes, Series Q
.do.
.do.
.do.
.do.
.do.
.do.
June 30, 1956..
Sept. 30, 1954.
do
.do.
.do.
.do.
June 30, Dec. 31.
1
1
1
1
1
1
7/8
1/8
3/8
1/2
7/8
85,000,000.00
20,000,000.00
20,000,000.00
14,000,000.00
50,000,000.00
26,000,000.00
215,000,000.00
Reconstruction Finance Corporation, act of Jan. 22, 1932,
as amended:^
Notes, Series DD
Rural Electrification Administration, act of May 20, 1936,
as amended:
Notes of Administrator
Secretary of Agriculture (Farmers' Home Administration
program), acts of July 5, 1952, June 30, 1953, and
July 31, 1953:
Notes
Note
do
July 9, 1952
.do.
.do.
June 30,1958..
June 30, 1992.
Jan. 1, July 1...
2
154,000,000.00
June 30, Dec. 31.
June 15, 1959.
2
3 2,117,342,273.87
do
2 3/4
2 1/8
182,000,000.00
43,973,827.33
- 225,973,827.33
^
Secretary of the Treasxiry (Federal Civil Defense Act of
1950), acts of Jan. 22, 1932, as amended, and July 30j
1953:^
Note, Series DD
. Notes, Series FCD
,
Note, Series FCD
,
Notes, Series FCD
,
Dec. 28, 1950.
Various
Mar. .15, 1954.
Various
• do.
.do.
.do.
Jan. 1, 1955.
July 1, 1958.
Jan. 1, July 1.
do
1 7/8
2
2 1/4
2 1/2
1,813,970.61
100,000.00
25,000.00
200,000.00
2,138,970.61
Tennessee Valley Authority, act of May 18, 1933, as
amended:
Bonds of 1951-63
Bonds of 1955-69
Aug. 15, 1939.
do
Aug. 15, 1951.
Aug. 15, 1955.
Aug. 15, 1963.
Aug. 15, 1969.
Feb. 15, Aug. 15.
do
2 3/8
2 1/2
12,500,000.00
16,500,000.00
29,000,000.00
Veterans' Administration (veterans' direct loan program);
acts of Apr. 20, 1950, as amended, and July 1, 1953:
Agreements
,
Agreement
Agreement
Agreement
Agreement
;...
Various
Sept. 23, 1953.
Dec. 24, 1953..
Mar. 25, 1954..
June 23, 1954..
At any time.
do
Indefinite due date
Jan. 1, July 1.
.do.
.do.
.do.
2
3
2
2
2
1/8
7/8
3/4
1/2
270,067,626.00
24,273,674.00
24,848,884.00
24,654,540.00
22,874,151.00
366,718,875.00
Footnotes at end of table.
DO
r
vn
C/)
TABLE 74, - - D e s c r i p t i o n of T r e a s u r y holdings of bonds and notes i s s u e d by Governnnent corporati®ns and other b u s i n e s s - t y p e a c t i v i t i e s , June 30, 1954-'-Continued
T i t l e and.authorizing act
Defense Production Act of Sept. 8, 1950, as amended:
Export-Import Bank of Washington:
Notes, Series DP
Notes, Series DP
Notes, Series DP
Notes, Series DP
Notes, Series DP
Notes, Series DP
Notes, Series DP
General Services Administration:^
Notes of Administrator
Notes of Administrator
Note of Administrator, Series D
Note of Administrator, Series D
Note of Administra-tor, Series D
Note of•Administrator, Series D
Secretary of Agricultxire:
Note
Secretary of the Interior (Defense Minerals Exploration
Administration):
Notes
Secretary of the Treasury:''
Notes, Series EE..
Notes, • Series EE
Notes, Series TDP
Notes, Series TDP
Notes, Series TDP
Notes, Series TDP
Notes, Series TDP
Notes, Series TDP
Date of issue
Redeemable (on
and after)
Payable
At any time.
.....do
Mar. 23, 1954.
Various
.do.
.do.
do
do
Oct. 1,
Nov. 2,
Dec. 3,
Mar. 1,
.do.
.do.
.do.
.do.
.do.
.do.
1953.
1953.
1953.
1954.
.do.
.do.
June 30, 1958.
Various.......
Dec. 31,-1965.
Various
do
Oct. 1,
Nov. 2,
Dec. 3,
Mar. 1,
Interest payable
.do.
.do.
Principal amount
$1,917,849.58
465,254.96
254,000.00
3,096,565.62
2,298,918.92
3,035,793.59
2,000,000.00
June 30,
do..
.do.
do
Various
do
June 30, Dec. 31.
Jan. 1 , July 1.
1958.
1958.
1958;
1959.
Rate of
interest
2
2
2
2
2
2
1/8
3/4
5/8
1/2
1/4
140,000,000.00
303,700,000.00
20,000,000.00
10,000,000.00
80,000,000.00
40,000,000.00
X
3
O
H
X
GO
July 1, 1958.
Jan. 1, July 1.
Dec. 1, 1955.
.do.
.do.
.do.
.do.
.do.
.do.
.do.
.do.
.do.
.do.
.do.
2,084,000.00
June 30, Dec. 31...
July 1, 1962.
June 23, 1954.
July 1, 1958.
.do.
.do.
.do.
.do.
.do.
2 1/8
15,000,000.00
109,100,000.00
7,000,000.00
7,500,000.00
3,100,000.00
4,800,000.00
10,500,000.00
5,500,000.00
2,000,000.00
773,352,382.67
12,948,849,567.65
vn
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! This Administration superseded the Mutual Security Agency, effective Aug. 1, 1953,
pursuant to Reorganization Plan No. 7 of 1953, and Executive Order No. 10476 of Aug.
1, 1953.
^ Pursuant to the act approved July 30, 1953 (67 Stat. 230), this Corporation was
transferred " o the Secretary of the Treasury for liquidation, effective July 1, 1954.
t
• Has not been reduced " o reflect payment of $46,440,357.25 received on June 30,
^
t
1954, representing $26,209,909.10 principal and $20,230,448.15 interest, distributed
after July 1, 1954.
^ Has not been reduced - o reflect payment of $55,786,183.99 received on June 30,
t
1954, representing $53,596,930.95 principal and $2,189,253..04 interest, distributed
after July 1, 1954.
^ In accordance with the act approved July 30, 1953 (67 Stat. 230), the activities
carried on pursuant to Section 409 of the Federal Civil Defense Act of 1950 (64 Stat.
1257), were transferred from the Reconstruction Finance Corporation to the Secretary of
the Treasury on Sept. 28, 1953.
^ The Defense Materials Procurement Agency was abolished, and its activities were
transferred to the General Services Administration in accordance with Executive Order
No. 10480 of Aug. 14, 1953. '
" Pursuant to the act approved July 30, 1953 (67 Stat. 230), and Executive Order No.
^
10489, dated Sept. 26, 1953, the activities carried on by the Reconstruction Finance
Corporation in accordance with Title III of the Defense Production Act of 1950, as
amended (U.S.C. App. 2091-2094), were transferred to the Secretary of the Treasury,
effective at the close of business on Sept. 28, 1953.
00
C
T A B L E 75.
-Treasury holdings of bonds and notes issued by G o v e r n m e n t corporations and other business-type activities, and related current year transactions,
fiscal year 1954
Transactions during the fiscal year 1954
Agency
Commodity Credit Corporation
Export-Import Bank of Washington
General Ser-vices Administration
Housing and Home Finance Administrator:
Federal National Mortgage Association program.
Housing loans for educational institutions....
Prefabrif:ated housing loans program
Slum clearance program
Foreign Operations Administration
Public Housing Adininistration
Reconstruction Finance Corporation
Rural Electrification Administration
Secretary of Agricxilture:
Farmers Home Adrainistration program
Defense Production Act
Secretary of the Interior:
Defense Minerals Exploration Administration...
Secretary of the Treasury:
Defense Production Act
Federal civil defense
Tennessee Valley Authority
Veterans' Administration
Total!'
Treasxiry
holdings
June 30> 1953
Advances by
Treasxiry
Repayments
and refxinding
612,000,000.00
227,468,441.42
283,700,000.00
$7,518,000,000.00
601,217,263.47
310,000,000.00
$5,993,227,166.00
468,617,322.22
1,446,097; 000.00
20,000; 000.00
18,786; 957.33
28,000; 000.00
,188,999; 362.72
655,000; 000.00
281,200, 000.00
,950,237, 684.66
145,869,000.00
31,500,000.00
358,756,000.00
170,733,159.78
10,000,000.00
$956,772,834.00
10,000,000.00
14,404,820.39
439,000,000.00
174,186,029.39
205,000,000.00
182,000,000.00
2,084,000.00
591,573.53
879,000,000.00
301,386,029.39
37,895,410.79
126,759,332.45
9,902,651,332.86
15,000,000.00
149,500,000.00
2,138,970.61
29,000,000.00
366,718,875.00
16,100,000.00
96,651,249.00
12,196,290,231.91
$4,180,000,000.00
1,360,068,382.67
593,700,000.00
225,973,827.33
2,084,000.00
5,000,000.00
34,000,000.00
270,067,626.00
Treasxiry
holdings
June 30, 1954^
2,233,210,000.00
51,500,000.00
12,800,628.59
38,000,000.00
1,202,812,609.58
215,000,000.00
154,000,000.00
2,117,342,273.87
5,986,328.74
165,600,000.00
2,138,970.61
^ Detailed information regarding'the indixridual security holdings is given in the preceding table.
Cancellations
5,'oOO,o6o.*00
8,193,319,163.12
956,772,834.00
12,948,849,567.65
X
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I—'
TABLE 76. --Comparative statement of the a s s e t s , liabilities, and capital of Government corporations a n d c e r t a i n other business-type activities as of June 30, 1945-54
[in thoxisands of d o l l a r s . ( n basis of reports received from the corporations and a c t i v i t i e s ]
D
ASSETS
Cash
Deposits with Governraent corporations and agencies
Loans receivable:
Interagency
Others, less reserves
Accounts and other receivables:
Interagency
Others, less reserves
Commodities, supplies, and
materials, less reserves
Investraents:
Public debt securities
Capital stock and paid-in
sxirplus of Government corporations -.
Other interagency
International Bank for
Reconstruction and Development—stock.
International Monetary
Fund—subscriptions
Others, less reserves
Land, structures, and equipraent, less reserves
Acquired secxirity or collateral, less reserves
All other assets, less reserves.
700,775
1,351,216
1,792,484
1,042,253
513,840
473,566
649,020
803,062
1,063,173
350,716
238,268
310,784
3,235
117,756
184,364
159,238
44,864
92,744
26,735
! 12,402,850 12,711,713
5,424,779
7,662,047
2,918,640
10,372,608
7,363,749
11,769,928
9,472,354
12,501,690
9,091,310
13,503,585
9,635,063
15,912,908
14,567,813
17,637,107
15,134,300
18,489,131
211,522
279,545
1,224,344
243,886
170,394
322,488
174,409
517,555
323,382
657,314
305,485
1,008,315
383,923
1,737,795
20,694,131
5,544,241
1,570,161
914,485
1,680,201
937,116
872,405
804,464
1,231,718
2,506,305
1,459,311
850,763
250,698
1,139,795
2,185,643
1,718,857
1,350,256
2,200,910
3,368,816
o
1,679,497
1,767,187
1,777,276
1,683,575
2,003,643
2,101,389
2,184,658
2,363,908
2,587,587
2,911,291
H
639,010
11,335
444,151
8,582
444,422
1,709
190,500
200,500
179,500
69
179,500
198
200,500
154
172,000
8,112
vn
vn
a
X
vn
2,750,000
179,839
2,750,000
145,817
2,750,000
52,640
2,750,000
44,642
2,750,000
54,316
X
374,581
275
242,242
20,163,729
40,625
632,374
2,750,000
123,160
2,750,000
97,528
2,750,000
88,920
28,597
494,915
29,330
473,293
52,516
54,424
85,772
41,786
2 42,345,726 44,006,994
' 23,443,798
^ 31,138,124
- 34,146,079
^
o
3,185,540
120,930
96,217
140,992
217,774
126,694
220,496
^ 34,792,648 ^ 38,115,784
^ 51,319,337
^ 55,326,957
116,991
24,300
LIABILITIES
Tot.al liabilities.
•n
H
X
vn
H
X
tn
732,046
1,099,520
567,704
1,272,217
223,019
395,849
30,779
184,467
30,301
303,753
37,915
322,111
73,823
196,278
191,881
250,284
297,310
641,912
266,198
652,353
2,749,847
258,693
1,236,957
442,813
1,057,703
505,557
698,196
177,188
232,119
288,685
303,476
380,484
264,751
284,547
222,981
450,890
277,445
550,324
203,661
864,546
12,168,702
8,500,764
1,664,831
2,803,949
11,672,128
739,304
1,559,217
2,477,787
11,945,841
767,580
589,253
1,143,647
2,788,924
129,715
903,923
825,520
6,069,055
505,687
890,372
894,528
7,458,345
1,034,598
791,913
743,279
6,380,882
1,568,951
1,407,290
451,590
7,523,562
2,054,698
1,271,702
499,008
12,121,859
2,431,698
1,182,502
787,185
12,866,065
2,237,972
1,052,217
2,516,470
29,978,352
2 19,968,128
16,628,450
' 5,738,713
9,214,501
* 11,072,120
* 10,628,111
'' 12,465,007
5 18,290,236
= 20,659,481
Bonds, debentxires, and notes
payable:
To Secretary of the Treasury.
Other interagency
Others
All other liabilities
H
>
X
2,923,604
2,457,783
15,557,797
75,382
1,593,252
635,000
635,000
158,750
Total assets.
Accounts and other payables:
Interagency
Others
Trust and deposit liabilities:
Interagency
Others
s
>
00
a
X
CAPITAL
United States interest:
Other
639,010
25,741,337
444,151
444,422
. 21,451,391 26,665,196
190,500
200,500
200,500
^ 17,360,738 ^ 21,550,871 ^ 22,672,117
179,500
179,500
* 23,670,019 ' 25,114,339
^
200,500
172,000
5 32,413,945 •^ 34,009,255
Total United States
26,380,347
458,901
21,895,542
482,056
27,109,618
268,926
17,551,238
153,846
21,751,371
172,253
22,872,617
201,341
23,849,519
315,019
25,293,839
356,937
32,614,445
414,656
34,181,255
486,221
26,839,248
22,377,598
27,378,544
17,705,085
21,923,624
23,073,959
24,164,537
25,650,776
33,029,101
34,667,477
56,817,600
42,345,726
44,006,994
23,443,798
31,138,124
34,146,079
34,792,648
38,115,784
51,319,337
55,326,957
Total liabilities and
cnpi tal ..T-1-T----T».,.»-Tt
^ Adj'xisted to include loans made by Secretary of the Treasxiry.
^ Decrease from 1945 caxised in part by elimination of interagency assets and
liabilities of merged RFC affiliates effective July 1, 1945, and establishment of
valuation and depreciation reserves.
^ Decre.eise from 1947 caused in part vith respect to (l) assets: exclusion of assets of U. S . .Maritime Commission and War Shipping Administration functions (lat"
est reports available to Tresisxiry for these agencies relating to lend-lease and
UNRRA activities are as of Mar. 31, 1947, and the remainder of War Shipping Administration fxinctions as of Feb. 28, 1947) amoxmting to $11,367,847 thoxisand and decrease of $9,365,307 thousand by cancellation (Pxiblic Law 860, approved Jxme 30,
1948) of Treasury loans to RPC for which no assets were acqxiired by Treasury except right of futxrre recoveries frcan nonlending net. assetsj (2) liabilities:
exclxision of liabilities of U. S. Maritime Commission and War Shipping Administration fxmctions (see parenthetical statement in item (l) above) amounting to
$1,160,232 thoxisand, and decrease in RFC liabilities to Treasxiry of $9,365,307
thoxisand referred to in item (l) above; and (3) United States interest other than
interagency: exclxision of proprietary interest in U. S. Maritime Commission and War
Shipping Administration fxmctions (see parenthetical statement in item (l) above)
amoxmting to $10,207,553 thoxisand,
^ See footnote 3. Reorganization Plan No. 21, effective May 24, 1950, abolished
the U, S. Maritime Commission, and transfeired its fxmctions into the Department of
Commerce.
' Includes data on maritime activities.
>
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CO
00
TABLE 77. - - B a l a n c e sheets of Government corporations and c e r t a i n other b u s i n e s s - t y p e activities as of June 30, 1954^
I—'
[in.raillionsof dollars]
00
Corporations
Department of Agriculture
Grand
total
Total
corporations
Coramodity
Credit
Corporation
Federal
Crop
Insurance
Corporation
Department
of
Commerce
Inland
Waterways
Corporation
Department
of the
Interior
Virgin
Islands
Corporation
ExportImport
Bank of
Washington
Departraent
of
Justice
Federal
Prison
Industries,
Inc.
Regular
lending
activities
X
ASSETS
99.0
1,132.7
26.7
86.3
615.7
26.7
11.9
22.0
15,134.3
18,489.1
56.0
9,670.2
383.9
1,737.8
3,368.8
186.7
224.2
2,942.2
143.4
109.4
2,801.6
2,911.3
180.1
3,439.3
8,076.6
126,7
220.5
2,653.0
9.1
53.8
2,481,8
14,6
132,0
19,152,3
()
*
0.8
2.6
26.1
3 2,271.6
55,327,0
Deposits with other Government corporations and agencies,.
Loans receivable:
Interagency
26.5
4,9
.1
0.1
()
*
4.6
tn
^ 2 761.6
8!6
00
Accoxmts and other receivables:
Commodities, supplies, and materials, less reserves
Investraents:
Obligations of Government corporations and agencies..,.
5.4
.1
.1
2,0
{*)
i3o!4
6,2
()24.4
*
()
*
31.9
12.0
()
*
6,2
,4
.1
others
9
2.2
6.8
19,4
2,793,4
tn
LIABILITIES
Accoxmts and other payables:
Others
Trust and deposit liabilities:
W
m
H
o
4,1
(*)*"
is'.?
5,535.1
2.3
()
*
•
266,2
652.4
203.7
864.5
59.9
845.2
.3
301.8
116.2
5 444.2
.
13.1
12.8
2.1
.1
()
*
()
*
()
*
.4
()
*
,1
,9
22.5
()
*
()
*
.5
>
00
Bonds, debentures, and notes payable:
U, S. Treasury
Other interagency
Others:
Guaranteed by United States
Not guaranteed by United States
All other liabilities
12,866.1
2,238.0
5,938,1
2,238.0
971.4
2,516.5
6 ,4
971.4
2,'260,8
4,180.0
1,347.0
2,019.4
6,527.4
Total liabilities
1,462.9
CAPITAL
United States interest:
Capital stock
Paid-in surplus
Expended appropriations
Earned surplus, or deficit (-)
15,0
12.3
1,620.7
1,260.7
33,414,0
-2,114.2
;....
5,792.0
-992.3
1,330.5
438.5
47.7
438.5
47.7
5,535.1
Private interest:
Capital stock
Earned surplus
-1,092.3
34,181.3
Total United States interest
1,620.7
1,260.7
2,104,4
806.1
2,793.4
81.7
-86.0
• 6.0
.8
-.6
4.9
'u'.A
330.5
Total private interest
Total capital
Total liabilities and capital..,,'
Contingent liabilities
2,705.2
,
ANALYSIS OF I^fVESTMENT OF UNITED STATES
Inves'tment of the United States
4,985.9
5,938.1
100.0
4,180,0
1,000.0
1,347.0
10,923.9
4,280.0
2,347.0
36,295.5
-2,114,2
Subtotal
Less total Treasury loans^°
36,295.5
12,866,1
49,161,6
-12,866.1
Paid-in capital and expended appropriations
Treasury loans to Governraent corporations and agencies^..
10,923.9
806.1
4,280.0
-1,092.3
108.7
-86.0
4.9
13.4
27.3
-16.4
2,347.0
330.5
Earned surplus, or deficit (-), United States share
3,187.7
34,181.3
Book value of U. S. interest, including interagency items
Interagency items—net amoxmts due to, or from (-):
Governraent corporations
Government agencies reporting
Governraent agencies not required to report
Interagency proprietary interests
Total interagency items, excluding Treasxiry loans to
Government corporations and agencies
Book value of United States interest, after exclusion
of interagency iteras
Footnotes at end of table.
-2,275.
2,275,8
20,8
11
172,0
(*)
(*)
(*)
2,275,8
-139.4
-1.0
-17.5
138.8
()
*
()
*
,
3,031.4
(*)
2
(*)
T A B L E 77. - - B a l a n c e s h e e t s of G o v e r n m e n t c o r p o r a t i o n s and c e r t a i n o t h e r b u s i n e s s - t y p e a c t i v i t i e s a s of J u n e 30,
1954-"---Continued
o
[In m i l l i o n s of d o l l a r s ]
Corporations—Continued
Export-Import Bank
of Washington—
Continued
Defense
Production
Act of 1950,
as amended
Farm Credit Administration^^
Banks
for
cooperatives
Federal
Farm
Mortgage
Corporation
Federal
Federal
Deposit
Production
intermediate
Insxirance
credit
credit
Corporation
corporations
banks
Foreign
Operations
Administration^^
Home Loan Bank Board
Institute
of InterAmerican
Affairs!'^
Federal
home
loan
baiiks
Housing and Horae
Finance Agency
Federal
Savings
and Loan
Insurance
Corporation
Cash with U. S. Treasxiry^
Deposits vrith other Government corporations and agencies
Loans receivable:
Interagency.
......*.•..........
Others, less reserves
Accounts and other receivables:
21.4
1.9
0.8
11.3
.2
15 15.9
17.6
773.9
13.1
305.5
0.2
2.8
9.1
27.6
12.8
H
()
*
1.3
.1
tn
.4
()
*
52.4
.5
.2
5.1
.1
41.8
()
*
()
*
1,608.8
.1
4.0
()
*
5.3
()
*
671.9
7.6
6.7
7.8
50.2
3.1
227.9
3!6
.1
1.2
.3
13.2
386.4
(*)**'
()
*
.5
17.1
861.7
.2
46.3
1.4
1,618.4
.1
15.9
1,399.2
()
*
234.6
>
X
K!
O
H
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tn
H
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m
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•
()
*
1.2
.8
()
*
.1
.3
4.9
()
*
11.8
.3
1.6
.1
.2
.2
()
*
()
*
tn
H
00
LIABILITIES
Others
X
tn
o
X
675.1
.1
()
*
()
*
.*...•
0.5
.1
00
Others less reserves.......
•••••
Commodities, supplies, and materials, less reserves....
Investments:
Public debt secxirities of United States
Obligations of Government corporations and agencies.
Others, less reserves
Land, struc txires, and equipment, less reserves
.Acquired security or collateral, less reserves
Accounts and other payables:
Interagency
0 thers
Trust and deposit liabilities:
X
H
O
TI
ASSETS
Total assets
3
.1
.1
.9
15*. 6
4.5
()
*
819.7
()
*
()
*
Bonds, debentxires, and notes payable:
U. S. Treasury
13.1
a'.i
17.6
Others:
.4
i26!6
All other liabilities
.3
Total liabilities
13.1
.6
140.1
iisii
736!3
1.3
()
*
119.7
'.2
121.7
15.2
751.8
.3
60.0
2.8
31.7
8.4
(16)
939.3
20.2
CAPITAL
United States interest:
150.0
()
*
Paid-in surplus
^ ^ 66.8
'
iV.'e
!
i
70.0
16.5
47!o
14,3
'i8'i,'496.*7
128.1
-143.0
^' 147.6
.1
220.0
16.5
109.8
46.0
1,496.7
.7
214.4
Private interest:
Capital stock
420.5
39.4
20 17.9
8.4
459.9
26.3
.1
246.3
16.5
109.8
46.0
1,496.7
13.2
386.4
17.1
861.7-
46.3
1,618.4
Total capital
Total liabilities and capital
.7
• 15.9
459:9
214.4
1,399.2
234.6
Contingent liabilities
ANALYSIS OF I^fVESTMENT OF UNITED STATES
150.0
()
*
62.8
31.7
143.7
66.8
13.1
150.0
()
*
62.8
31.7
143.7
66.8
Eamed surplus, or deficit (-), United States share....
13.1
.1
150.0
70.0
16.5
62.8
47.0
31.7
14.3
1,496.7
143.7
-143.0
66.8
147.6
Book value of U. S. interest, including interagency
items
13.2
220.0
16.5
109.8
46.0
1,496.7
.7
214.4
'.2
-6.7
.2
-6.7
-7.7
1,496.9
-6.0
-7.7
Treasury loans to Govenmient corporations and agencies'
13.1
Less total Treasxiry loans^°
Interagency items—net amounts due to, or from (-):
17.2
Govemnent agencies not required to report
Interagency proprietary interests
Total interagency items, excluding Treasury loans
(*)
(*)
1.2
()
*
18.4
-9.5
..^.,
.....
()
*
-9.3
-7.7
......
..^..
.2
()
*
1.5
10.2
Book value of United States interest, after exclusion
13.2
Footnotes at end of table.
238.4
16,5
100.6
46.0
()
*
11.8
TABLE 77. --Balance sheets of Government corporations and certain other business-type activities as of June 30, 1954^--Continued
tin millions of dollars]
tJ
S
Corporations—Continued
Housing and Home
Finance Agency—Cont.
Office of
the
Administrator:
Federal
National
Mortgage
Association
Public
Housing
Administr ational
Reconstruction Finance Corporation
and certain affiliates^^
Panama
Canal
Company2 2
Assets held
Regular
for the
lending
U. S.
activities
Treasury^'^
In liquidation by
Reconstruction
Finance Corpora. tion23
Tennessee
Valley
War
Defense Smaller
Damage
Authority
Hemes
War
Corporation CorporaPlants
(La liquition^s
Corporadation)
tion
X
tn
s
H
O
ASSETS
C ash on hand and in banks .....................................
Cash with U. S. Treasury^
Deposits - r t other Govemment corporations and agencies
vLh
Loans receivable:
0.2
8.0
2,301.2
Accounts and other receivables:
Interagency
()
*
22.1
5.9
.9
3.7
13.0
.2
4.9
1.5
2K4
0.1
265.7
i!o
0.3
5
^-^ 1A.2
2.0
26.2
91.3
.1
m
13.6
8.7
28.0
49.0
.3
7.0
1.3
161.1
422.5
.6
458 1
484.7
605.3
23.5
1.0
16.1
19.0
8.9
35.0
20.4
2.4
65.3
.7
1.0
41.3
1.7
4.5
.4
VA
'2.6
324.1
>
1.0
14.2
1.3
1,945.9
LIABZLITIES
Others...
..............•..........<..•••••••••••••••••••••
.1
7.6
H
o
1,629.7
127.3
2,326.3
.•.•....••••...
m
9
12.2
.5
106 3
Accounts and other payables:
Interagency...............•..••••.••.••.
Others
Trust and deposit liabilities:
00
i!6
()
*
.2
4.5
0.1
196.8
'26'346!l
196.5
3.0
9.1
Investments:
Public debt secxirities of United States.....................
• 5.8
38.2
()
*
Bonds, debentures, and notes payable:
.
215.0
154.0
29.0
2,212.2
Others:
.
"*
.....
....
•A
All other liabilities
Total liabilities.
.^......
*4!9
. 2,244.8
31.9
!.*!.*!.*!
2.3
.236.0
*
254.3
1 0
102.6
CAPITAL
United States interest:. . '
20.0
1.0
60.4
81.4
Total United States interest
1.0
222.0
196.7
. -197.6
.'222.1
100.0
377.8
"*"75!6
452.8
**"25i!6..
10.0
" -248.9
•
38.2
*"4!2
1-0
573.0
'"-36,'9
45.3
1 697.0
28 101.0
351.0
324.1
1.0
14.2
1.3
1,843.4
Private interest:
Canital stock..
81.4
Contingent liabilities..'
ANALYSIS OF INVESTMENT OF UNITED STATES
222.1
452.8
351.0
324.1
1.0
14.2
1.3
1,843.4
458.1
' 484.7
.605.3
324.1
1.0
14.2
1.3
1,945.9
. 2,426.1
,
21.0
.'..
2,326.3
28.4
Totai liabilities and capital.
419.7
215.0
377.8
100.0
154.0
573.0
1.0
10.0
38.2
1,742.4
29.0
634.7
377.8
254.0
573.0
1.0
10.0
38.2
1,771.4
573.0
-248.9
1.0
10.0
4.2
38.2
-36.9
1,771.4
101.0
1.3
1,872.4
-.3
() .3
*
. 27.9
, .
Treasury loans to Gpvernment corporations and agencies^...
Subtotal.
.....• ,
..21.0
..
Earned surplus, or deficit (-), United States share.
21.0
60.4.
..
634.7
. "-197.6
•
377.8
75.0
254.0
251.0
Book value of U. S. interest, including interagency items......
81.4^
437.1
, 452.8
505.0
Interagency items—net amounts due to, or from (-):
. Goverimient agencies reporting.........'
Government agencies not.required " o report...
t
(*)
2,235.6
-2.8
......
..^..
1.0
324.1.
41.0
34.3
.8
-1.0
• -25.4'
-.8
-13.5
18.8
75.1
.
471.6
580.1
"'"l8'.8
-1.0
.
14.2.
-14.2
. -7.1
Total interagency items, excluding Treasury loans to Gov2,232.8.
. (*)
-14.2
-.3
-6,8
1.0
,-1,0
-39,7
1,865.6
Bcjok value of United States interest, af.ter exclusion of inter-
2,314.2
.
437.1
.
284.4
•
Footnotes at end of t a b l e .
TABLE 77. - - B a l a n c e s h e e t s of G o v e r n m e n t c o r p o r a t i o n s and c e r t a i n other b u s i n e s s - t y p e a c t i v i t i e s a s of June 30,
1954''---Continued
tVJ
4i-
[in m i l l i o n s of d o l l a r s ]
Certain other business-type activities
Department of Agriculture
Farmers'
Home
Administration
Disaster
loans, etc.
Rural
Revolving
ElectriFund,
fication
Farmers'
AdminisHorae
tration
Adrainistration
Departraent
of the
Array
Department
of
Commerce
Guaranteed
loans
(World
War II)
Federal
Maritime
Board and
Maritime
Administration^^
Department
of Health,
Education,
and Welfare
Office of
Education:
Loans to
students
Department
of the
Treasury
Department
of the
Interior^o
Miscellaneous loans
and certain
other assets
X
tn
s
H
O
ASSETS
Cash on hand and in banks
Cash with U. S. Treasury^
Deposits with other Government corporations and agencies.
Loans receivable:
Interagency
Others, less reserves
Accounts and other receivables:
Interagency.
Others, less reserves
Commodities, supplies, and raaterials, less reserves
Investments:
Public debt securities of United States
Obligations of Government corporations and agencies...
Others, less reserves
"•
.
Land, structures, and equipraent, less reserves
Acquired security or collateral, less reserves
All other assets, less reserves
Total assets
,
12.8
517.0
0.1
21.8
0.1
14.1
3.0
149.7
(*)
i,078.3
!,819.0
197.2
.,513.6
426.6
3^ 12,866,1
^^ 3,649.0
(^)
7.2
353.5
45.2
24.4
258.3
171.0
1,385.5
i, 594.8
112.1
88.5
141.0
33 1,000,0
(*)
H
.1
1.1
.7
vn
4,828.8
(*)
1,1
vn
>
,.
00
LIABILITIES
Accounts and other payables:
Interagency
,
Others
Trust and deposit liabilities:
Interagency
Others
O
150,0
208.2
143.8
19.4
• { * )
(*)
(*)
42.6
160,4
.5
2.5
(*)
(*)
Bonds, debentures,- and noteis payable:
•
6,928.0
. Others:
.
2,091.1
172,4
....
....
(*)
.
80.4
All• other liabilities
'Total liabilities...
255.*7
'.3
'.••(;)••
7,785.4
174.6
2.5
"
,
;
.'..,.,,,......
*'"(*)**
•
'"'"is'.o
219,0
2,092.0.
.2
United States interest:
• • Capital stock.
•
i..
' "*i54!6 •
-63.4
2 24 , 9
'.
-35.1
91,2
.28,389.3
• 426.6
91.2
189.9
36,174,7
601.1
93.7
2,281.9
613.5
,........,........,...,,
•..,
,
,
Contingent liabilities
•
426.6
63.5
189.9
" ^ '*5.*2'
3^'5*i69!5
73^7
3 5 20,900.0
,5.2
.5,169.5
1.0
. -.2
-58.3
. ,8
.
. 15.5
20 900.0
•
•
Total liabilities and capital,
- •'
"*542!7
-116.1
28,3^9.3
Total United States interest.
•Total capital..,.
141.0
i^.............
31,309,6
-2,920.4
Private- interest: ' ., • - '
Capital stock
,2
..
.
CAPITAL
5.2'
. 5,169.5
.8
15.5
5,388.5
1.0
15,6
5.2-.
20,900.0
' .21,041.0
.3
ANALYSIS OF INVESTMENT OF UNITED STATES
Treasury loans to Government corporations and agencies^,,;.,..
Subtotal,
,
31,309.6
6,928.0
38,237.6
-12,866.1 .
25,371.6
-2,920.4
Book value of U. S. interest, including- interagency'items
•22,451.2
-
.542,. 7'
172.4
154.6
224.9
2,091.1
5.2
5,169.5
715.1
154.6
2,316.1
5.2
5.2
5,169.5
73,7
.20,900.0
73.7
:
20,900,0
-12,866,1
73,7
-58.3
8,034,0
5,169.5
2,316.1
-35.1 •
1.0
154.6
715.1 -116.1
- r-63.4
,
598.9
91.2
2,281.0
•'5.'2-
•
5,169,5
1.0
.-.2
.8
•
•
8,034.0
15.5
Interagency i t e m s — n e t amounts due to, or from'(-):'
-2,275.8
"*i6o!2
'.6
.2
, 35.9
.6
-
.2
35,9
.2
.1
' -58.7
-82.3
141.0
''
-171.0
Total interagency items, excluding Treasury loans to Gov-2,286.7
Book value of United States in'terest, after exclusion o f
interagency items.,.
,.,...
-.,
F o o t n o t e s a t end,-of t a b l e .
20,164.5
599.5
91.2
2,281.2
5.2
5,205,4
'
.• .2
.
1.0
.1
15.6
8,034.0
otv
o-
TABLE 77. --Balance sheets of Governnnent corporations and certain other business-type activities as of June 30, 1954'---Continued
[in millions of dollars]
Certain other business-type activities—Conti.nxied
Department
of the
TreasuryContinued
General
Services
Administration
Farm
Credit
Administration
Federal
AgriCivil
cxdtxiral
Defense
Act of 1950, Marketing
Act
as
amended^^
Housing and Home Finance
Agency^^
Foreign
Public
Operations
Works
AdminisFederal
tration^ ^ AdminisHousing
tration Adminis-•
(in
tration
liquidation)
Office
of the
Administrator^^
Public
Housing
Administration* °
Defense
Small
Veterans
Production
Business AdminisAct of 1950,
Admintration'^^
as
istration
amended* ^
(*)"**
134.7
\A.7
1.5
47.3
X
m
s
H
O
H
ASSETS
9!o
4^
1.0
()
*
2.8
83.2
1.5
42.5
348.9
X
tn
163.8
Deposits with other Govemment corporations and
Loans receivable:
2!2
6.1
1,543.5
""85.6
Accounts and other receivables:
*42.8
()
*
.4
.8
Commodities, supplies, and materials, less reserves
Investments:
Public debt secxirities of United States
Obligations of Government corporations and
5.4
- 3 2,212.2
^
96.9
54.4
23.5
1.5
.6
5.5
2!2
()
*
()
*
11.0
2.9
24.9
10.6
378.5
O
45.0
tn
257.1
21.0
150.0
•3
Land, structxires, and equipment, less reserves
Acquired security or collateral, less reserves
**'(*)' *
2.2
150.1
1,552.8
86.8
.5
.9
99.6
.1
541.1
19!3
()
*
2.7
2,391.8
2.
'6
11.4
*"*695!9
(^
*
.5
. {*)
83.4
805.6
3.2
462,9
750.2
.1
6.0
.2
3.1
1.2
31.2
30.3
.1
5.0
.7
LIABILITIES
Accounts and other payables:
()
*
Others
Trust and deposit liabilities:
Others
48.5
()
*
6.9
1.0
9.0
24.4
()
*
.....
....
'9
.
>
00
Bonds, debentures, and notes payable:
2.1
1,202.8
Other interagency..,,
Others:
Guaranteed by United States
Not guaranteed by United States
All other liabilities
*•(*;)"*
2,335.5
363,7
760.3
80.4
.4 " " { * ) ' "
7.5
.2
6.'8
***2i7!5
.6
1,258.1
2,2
Total liabilities
314.8
2,360,5
*1*673!3
-1,586,5
**"i5.*2
211.1
-41.7
1,565,7
-767.6
86.8
226.3
31.3
798,1
.2
16.8
373.3
839,4
4!5
-1,5
83.*1
6,5
i3!4
-102,6
3,0
89.5
-89,2
CAPITAL
United States interest:
Capital stock
Paid-in surplus.
Total United States interest
W
)
()
*
464!3
• -314.1
150.1
345.5
-50.8
294.7
73!6
Private interest:
Capi-fal stock
Earned surplus
.........
Total private interest
Total capital
()
*
150.1
2.2
1,2
Total liabilities and capital
294.7
86.8
226.3
31.3
798.1
150.1
1,552.8
86.8
541.1
2,391.8
805.6
3.0
3.0
3.2
2.2
89.5
-89,2
462,9
750.2
544,3
ANALYSIS OF INVESTMENT OF UNITED STATES
•
464.3
345.5
1,673,3
15,2
73.0
1,565.7
4,5
83.1
13,4
363.7
760,3
Treasury loans to Government corporations and
2,1
Earned surplus, or deficit (-), United States share..
464,3
2.1
464.3
-314.1
150.1
()
*
Book value of U. S, interest, including interagency
items
2,2
1,548,3 . 1,673,3
15.2
2,408.5
1,565.7
4,5
446,8
773,7
1,548.3
-50,8
1,673.3
-1,586.5
15.2
211.1
2,408.5
-41.7
1,565,7
-767,6
4,5
-1.5
446,8
6,5
773,7
-102.6
1,497,5
86,8
226,3
2,366.8
798,1
3,0
453,3
671,1
.2
2.1
Subtotal
Less total Treasury loans^*^
2,335.5
1,202.8
-2,235.7
24.4
3,*i
Interagency items—net amoxmts due to, or from (-):
()
*
. ()
*
Government agencies hot required to report
Total interagency items, excluding Treasury
loans to Government corporations and agencies...
48,*5
is
""-i56!6
()
-
-.5
,1
18.3
6.3
-18,3
3.2
6.4
456.5
677.5
-21.0
-150.0
.1
1,546.0
1,0
48,5
-2,232.3
-,5
227,3
134.4
797,7
Book value of United States interest, after
2,2
86,8
3,0
O^
Footnotes at end of table.
Footnotes for table 77.
*Less than $50,000.
^ On basis of reports received from the Government corporations and other
business-type activities. For quarterly statements see the "Treasury Bulletin."
^ Excludes unexpended balances of appropriated fxmds.
3 Includes $2,007,5 million guaranteed loans and certificates of interest held
by lending agencies.
" Includes $89.5 million guaranteed loans held by lending agencies.
^
^ Includes matxired interest amounting to $.1 million for \^hich cash has been
deposited with the Treasurer of the United States.
^ Represents matxired obligations for which cash has been deposited with the
Treasurer of the United States.
" Includes $5.0 million advanced from a revolving fxmd which has been estab^
lished by appropriations.
^ Includes deficit resulting from administrative expenses amounting to $83.8
million.
^ Shown above as a liability of each Government corporation or other businesstype activity.
^ ° Shown as "Loans receivable" of the U. S. Treasxiry, xmder "Certain other .
business-type activities,"
^^ Represents Agricultxiral Mairketing Act revolving fund. Housing and Home
Finance Administrator, and Reconstruction Finance Corporation proprietary interests in Government corporations.
^^ In accordance with the act approved Aug. 6, 1953 (67 Stat. 390), the Farm
Credit Adrainistration was transferred from the Depar'tment of Agricultxire and
designated as an independent agency, effective Dec, 4, 1953.
•• This Adrainistration superseded the Mutual Secxirity Agency, effective Axig. 1,
'3
1953, pursuant to Reorganization Plan No. 7 of 1953, and Executive Order No.
10476 of August 1, 1953.
^^ This Corporation, formerly shown xmder the Department of State, was transferred to the } Dreign Operations Administration pxirsuant to Reorganization Plan
No. 7 of 1953, effective Aug. 1, 1953. In accordance with the act approved Aug.
26, 1954 (68 Stat. 862), this Corporation shall, on and after July 1, 1954, be
subject to the applicable provisions of the Budget and Accoxmting Act, 1921, as
amended (31 U.S.C. 1 ) , in lieu of the provisions of the Government Corporation
Control Act, as amended (31 U.S.C. 841).
^^ Includes real estate sales contracts.
^^ The final repayment of capital stock was covered into raiscellaneous receipts
of the U. S, Treasxiry on Axig. 31, 1948.
^ ^ Adjusted to give effect to provision for retirement of capital stock of $10.2
"
million, which was deposited into miscellaneous receipts of the U. S. Treasury in
July 1954.
^^ The surplus is not available by law for dividend distribution and is considered by 'the Corporation as a reserve for futxire deposit insurance losses and
related expenses with respect to insured bank's.
^"^ The surplus is considered by the Corporation as available for future insurance losses and related expenses with respect to insxired institutions.
^° Includes $.1 million deposits to "Guaranty Fimd."
^^ Represents activities under the U. S. Housing Act, as amended. War housing
and other operations of the Administration are shown under "Certain other business-type activities."
^^ The balance sheet is subject to substantial change pending establishraent of
a complete plant inventory and appraisal of net assets transferred frora the Panama
Canal to the Company.
23 On Sept. 29, 1953, pursuant to the act approved July 30, 195^ (67 Stat.
230), the Reconstruction Finance Corporation started liquidation of its activities, except those carried on by the Corporation pxirsuant to Section 409 of the
Federal Civil Defense Act of 1950 (64 Stat. 1257), and those carried on pursuant
to the Defense Production Act of 1950, as amended (50 U.S.C. App. 2091-2094),.
which were transferred to the Secretary of the Treasury as of Sept. 28, 1953, and
as of the close of business on Sept, 28, 1953, respectively. On July 1, 1954, the
Secretary of the Treasury assuraed the responsibility of completing the liquidation
of certain activities of the Corporation, as provided in the act apprbved July 30,
1953. Pursuant to Reorganization Plan No. 2 of 1954, effective at the close of
business June 30, 1954, certain loans, securities, and other assets of the Corporation were transferred to the Export-Import Bank of Washington, the Federal
National Mortgage Association, and the Sraall Business Administration.
^^ Represents assets held for the U. S. Treasury in accordance with provisions
of the act approved June 30, 1948 (62 Stat. 1187-1188), which provided for cancellation of Reconstruction Finance Corporation notes in the amount of $9,313.7
million, plus interest accrued -thereon subsequent to Jime 30, 1947, representing
unrecovered costs to the Corporation as of June 30, 1947, in its national defense,
war, and reconversion activities, and stipulated that any amounts recovered by
the Corporation with respect to these activities subsequent to June 30, 1947,
should, after deduction of related expenses, be deposited in the U. S. Treasury
as miscellaneous receipts. The national defense, war, and reconversion activities
consist of the synthetic rubber, tin, and abaca prograras, and liquidating activities relating principally to the rental and disposal of World War II defense
plants and facilities, the settlement of claims, and collection of receivables.
In accordance with Executive Order No. 10539, dated June 22, 1954, the President
authorized and directed the Secretary of the Treasury to cause to be organized a
corporation under the authority and subject to the provisions of Section 10 of
the Rubber Act of 1948, as amended (50 U.S.C. App. 1929). The corporation is
known as the Federal Facilities Corporation. By Executive Order No. 10539, the
President transferred the synthetic rubber and tin programs tb the Federal Facilities Corporation, and the abaca fiber program to the General Services Administration, all effective at the close of business on June 30, 1954. On the
same date, the Secretary of the Treasury took over the responsibility of liquidating the World War II assets, with the exception of the World War II assets
which were transferred to the Export-Import Bank of Washington in accordance with
Reorganization Plan No. 2 of 1954.
2^ The equity of the Reconstruction Finance Corporation in the net assets of
this Corporation was transferred to the Federal National Mortgage Association
effective at the close of business June 30, 1954, pxirsuant to Reorganization Plan
No. 2 of 1954, •
2^ Includes loans for national defense.
2'' Represents excess of unliquidated assets over liabilities transferred to the
Reconstruction Finance Corporation (see footnote 25).
2^ Consists of net income from power operations of $253.9 raillion and net expense of nonincome-producing programs of $152.9 million.
2^ Figxires in this column are shown on a preliminary basis.
3° Consists of Indian loans and Puerto Rico Reconstruction Administration (in
liquidation). In accordance with the act approved Aug. 15, 1953 (67 Stat. 584),
the Secretary of the Interior was authorized and directed to start liquidation of
the Administration.
.
.
3 ^ Represents obligations of Government corporations and other' business-type
activities as shovm under "Bonds, debentxires, and notes payable—^U. Si Treasury."
00
X
m
H
O
H
X
vn
00
o
X
vn
H
o
vn
vn
>
^^ Inclxides $3,614.3 million loan to the United Kingdom. Partial repayments
were made on Dec. 31, 1951, Dec. 31, 1952, and Dec. 31, 1953, aggregating $135.7
million.
^^ Includes $1,000 million due under the agreement with Germany signed Feb. 27,
1953.
^* Represents expended appropriations and excess of income or expense. Figures
representing each of the two amoxints are not available at this time.
*' Includes subscriptions to the Intemational Monetary Fund and Bank and loan
to the United Kingdom (see footnote 32).
^^ Transferred from the Reconstruction Finance Corporation (see footnote 23).
^ ^ Consists of guaranty program and loan program (see footnote 13).
"
3^ Liciuidation of the Home Loan Bank Board: HDLG liquidation unit, shown under
this heading in tables 78 and 79, was corapleted during the fiscal year 1954.
^^ Consists'of Alaska housing program, ccamminity facilities service, housing
loans for educational institutions, investment in the Federal National Mortgage
Association, prefabricated housing loans program, and slxim clearance program. The
revolving fxmd for development of isolated defense sites, included under this
—headdngH:n-tabie-797-was-termlTiai;ed'-dtfflng-the-ir±scaiiryear—1954-7--In-a^
with the act approved Jxme 24, 1954 (68 Stat. 295), a revolving fxmd was established, effective Jxily 1, 1954, for use in connection with the liquidation of the
Alaska housing program, the commxmity.facilities service, and the prefabricated
housing loans program. Pxirsuant to the act approved Aug. 2, 1954 (68 Stat. 622),
the fimctions of the Housing and Home Finance Administrator, including the fimction of making payments to the Secretary of the Treasury, under Section 2 of Reorganization Plan No. 22 of 1950, together with the notes and capital stock of
the Federal National Mortgage Association held by the Administrator were transferred to the Federal National Mortgage Association.
*° Consists of Farm Security Administration program, public war housing program,
and veterans' re-use housing program. In accordance with the act approved Jxme 24,
1954 (68 Stat. 295), a revolving fxmd was established, effective July 1, 1954, for
use in connection with the liquidation of these programs.
*^ Consists of guaranteed loans to veterans, veterans' canteen service, and
veterans' direct loan program.
*^ Consists of Atomic Energy Commission, General Services Administration, and
Departments of Agriculture, the Air Force, the Army, Commerce, the Interior, the
Navy, and the Treasury. The Defense Materials Procxirement Agency, formerly in- .
eluded xmder this heading, was abolished, and its activities were transferred to
the General Services Administration in accordance with Executive Order No. 10480
of Aug. 14, 1953.-The activities carried on by the Department of the Treasury were
"^TiSns'ferred—frQm the Keconstruction Finance Corporation (see footnote 23).
*^ Represents advances made by the Administrator to the Federal National Mortgage Association. Funds for such advances were borrowed by the Administrator from
the U. S. Treasury.
** Includes $127.8 million reserves for contingent losses, expenses, and other
charges.
>
r
vn
T A B L E 7 8 . - - I n c o r i i e a n d e x p e n s e of G o v e r n m e n t c o r p o r a t i o n s . a n d c e r t a i n o t h e r b u s i n e s s - t y p e a c t i v i t i e s , f i s c a l y e a r 1954^
o
[In thousands of dollars ]
Corporations
Department of Agricultxire
Grand total
Income:
Sale of commodities and supplies
Sale of services
Rents and royalties
Interest and dividends:
Interest on loans
Interest on public debt securities
Interest, other
Dividends.
Guaranty and insurance premiums
Other income:
Gains on sale of fixed assets
Gains on sale of investments
Gains on sale of acquired security or collateral..
Other
T o t a l incoine.
,
Expense:
Cost of commodities and supplies sold
Direct operating costs
,
.•
.
Interest expense:
On borrowings from the U. S, Treasury
Other
. ^
Administrative expenses
.<^....
Depreciation (not included in cost of sales or direct
operating costs)
,..'.
Grants, subsidies, and contributions:
Direct
Indirect
Total
corporations
Commodity
Credit
Corporation
Federal
Crop
Insurance
Corporation
ExportImport
Bank of
Washington
Department
of
Commerce
Department
of the
Interior
Inland
Waterways
Corporation
Federal
Virgin
Regular
Prison
Islands
lending
Industries,
activities
Corporation
Inc.
Department
of
Justice
s
o
1,827,149
251,436
69,179
1,700,197
189,097
8,132
.803,165
62,923
32,221
69,353
237,791
284,471
55,029
7,636
1,069
111,040
3,053
1,062
17,035
35,790
3,053
902
439
28,365
17,837
215
3,410,157
2,389,431
1,246,806
27,468
2,263,095
258,374
2,124,702
156,649
1,711,749
277,789
91,634
153,103
142,653
91,123
67,255
2 90,846
10,240
7,034
405
235,176
68,037
108
1,349
501
58
2
X
86,604
339
10,071
6,236
20,669
00
m
n
163
27,*690
>
X
O
147
2,154
20,815
1,4S4
648
H
86,605
17,085
405
X
vn
H
>
00
19,* 764
28,144
.6,716
127
"1^653
323
8
G
31,060
111,106
31,060
62,645
14,989
14,395
72,768
781
8,020
i,635
1,430
4,382
391
8
10,357
31,060
2
1,518
562
375
2
2,958
171
626
14
Losses and charge-offs:
Other assets charged off.................................
Losses on sale of fixed assets,.... .....................
Losses on sale of acquired security or collateral
Other,
Net income, or loss (-), before adjustment of valuation and
operating reserves
Adjustments of valuation and operating reserves:
Reserve for losses on loans..................................
Reserve for losses on acqxiired security or collateral
Reserve for losses on commodities and supplies
Net income, or loss (—).,.......................................
Char.ges in unreserved eamed surplus or deficit:
Unreserved eamed surplus, or deficit (-), June 30, 1953
Net income, or loss (-), for the fiscal year 1954
72,640
1,796
3,615,170
2,760,804
1,835,308
38,153
3,153
2,722
18,454
29,220
-205,013
-371,373
-588,502
-10,685
-2,633
-568
2,362
57,385
-33,261
-32,123
-1,849
-389,432
7,880
19,697
-34,032
715
207
-389,432
207
12,546
-32,638
-389,432
-429,088
Total expense...........................................
-409,789
-412,627
104
-634,101
-781,162
-1,001,129
-10,581
-2,633
-568
2,362
^-3,640,432 ^ -887,269
-781,162
^ -519,260
-148,699
-145,699
23,200
23,200
-737,535
-1,001,129
-75,389
-10,581
-13,756
-2,633
-970
-568
13,762
2,362
9,443'
3
104
3
57,388
57,388
-34,905
Distribution of profits:
Dividends-. ---------Other
Prior year adjustments.•.•............•..........••....,,.,..
Unreserved eamed surplus, or deficit (-), Jxme 30, 1954
-421,910
-75,037
-5,717
629,939
-75,037
-1,456
643,576
646,357
^,157,917
-1,226,847
-1,092,306
-2,750
-22,500
17
923
-85,970
-16,390
-615
13,373
Footnotes at end of following table.
LO
TABLE 78. --Income and expense of Government corporations and certain other business-type activities, fiscal year 1954^--Continued
uo
[in thousands of dollars]
Corporations—Continued
ExportIraport
Bahk of
Washington—
Continued
Defense
Production
Act ©f 1950,
as amended
Income:
Sale of commodities and supplies..,.,
Sale of services
Rents and royalties..................................
Interest and dividends:'
Interest on loans
.....i.,..
Interest on public debt secxirities,
Interest, other
•
,
Dividends
Guaranty, and insxirance premixims
,
Other income:
Gains on sale of fixed assets....
Gains on sale of investments.....;
Gains on sale of acquired secxirity or collateral.
Other
Total income
Expense:
Cost of commodities and supplies sold
Direct operating costs
,
'
.
Interest expense:
On borrowings from theU. S. Treasury
Other
,.
Administrative expenses.......,,,.,,,................
Depreciation (not included in cost of sales or direct
operating costs)...............w...............^....
Grants, subsidies, and contributions:
Direct
Indirect
315
Farm Credit Administration 5
Federal
Banks
Farm
for
Mortgage
cooperatives Corporation
12,301
1,059
931
()
*
Federal^
Production
interme• credit
diate
corporacredit
tions
banks
19,849
1,332
13
1,096
1
Federal
Deposit.
Insurance
Corpora-.
tion
Foreign
Operations
Administration^
Housing and Home
Finance Agency
Home Loan Barik Board
Federal
home .
loan
banlcs
Institute
of InterAmerican
Affairs''
11
35,879
3
20,797
10,466
70
315.
435
4
7
13,580
1,370
21,270
7
vn
5,197
5
456
20
(*)
329
103
1
381
110
20
1,220
97,091
31,835
17,285
1,659
9,.
H
21,470
^ 1,546
9
692
S
vn
170
4,165
2,114
X
vn
15,923
60,817
27
3
190
Federal
Savings
and Loan
Insurance
Corporation
1,447
7,477
- 1
•
18,248
1,813
441
4
1
23,441
16
o
vn
vn
>
45
349
255
9
531
300
14
-293
Losses and charge-offs:
27
21
()
*
Losses on sale of fixed assets
1
82
8-
Losses on sale of acquired security or collateral
-7
Other
177
6,328
750
19,295
1,784
7,487
23,440
20,607
2,601
138
Total expense...................................
7,251
621
1,975
-564
89,604
-23,440
11,228
18,869
-23,440
11,228
18,869
-119,584
-23,440
14,794
11,228
-2,256
18,869
-18,869
Net income, or loss (-), before adjustment of valuation
Adjustments of valuation and operating reserves:
70
747
1
-1,023
-32
Reserve for losses on acquired secxirity or collateral
2
1
Reserve for losses on coramodities and supplies
12
2
1
6,208
621
1,977
-564
90,421
7
138
46,510
6,208
-1,556
22,886
621
29,365
1,977
-1,050
14,835
-564
>
817
138
-1,043
Net adjustment of valuation and operating reserves...
CO
Changes in xinreserved earned sxirplus or deficit:
Unreserved earned surplus, or deficit (-), June 30,
1953
, ,,.
,
Net income, or loss (-), for the fiscal year 1954....
90,421
-90,064
r
Distribution of profits:
Treasurer's account—deposit of earnings
-8,053
-74
-144
-7,000
Other
.
'
Prior year adjustments
-232
-1,167
-357
,
Unreserved earned sxirplus, or deficit (-), Jxme 30,
1954
145
49,996
16,506
30,060
14,271
-143,023
15,495
Footnotes at end of following table.
OJ
OJ
TABLE 78. --Income and expense of Government corporations and certain other business-type activities, fiscal year 195,4 ^--Continued
OJ
[in thousands of dollars]
4^
Corporations—Continued
Reconstruction Finance
Corporation and certain
affiliates^^
Housing and Home Finance
Agency—Cont inued
Office
of the
Administrator:
Federal
National
Mortgage
Association
Public
Hoxising
Administration^
Panama
Canal
Company^°
Regular
lending
activities
Assets held
for the
U. S.
Treasury^^
In liquidation by
Reconstruction Finance
Corporation^^
Defense
Homes
Corporationi3
Smaller
War
Plants
Corporation
4^
Tennessee
Valley
Authority
X
tn
H
O
H
Income:
Snie of f m o i t i > i n c suppl 1e8..,.,,.......,.....
om(i'*f ni
Sale of services...................................
Rents and royalties
,
Interest and dividends:
Interest on loans,,•.....•..,,,...•....,,,,•.••
Interest on pxiblic debt securities........».,
Interest, other,...•••,,,.•,..•.......•.•..•...
Dividends
1,729
98,990
3,353
560
2,514
3,581
368
25
694
105,867
14,610
86,797
26,285
430,387
368
93
152,502
9,498
50,338
3,116
45
1* 8^847
6,629
3,557
3,134
44,472
16,666
101,958
357,846
2,768.
1,078
5,507
tn
H
•
n
1,253
19,873
38,302
00
tn
o
23
15,337
Interest expense:
On borrowings from the U. S. Treasxiry
Other
,
Adnilnlp+rRtivp e'xppn.sf»s,,.....•...•.,......,.«,....
Depreciation (not included in cost of sales or
direct operating costs),,,........................
Grants, subsidies, and contributions:
Direct
Indirect
,
20
2,950
Expense:
Cont of f^ommodlt''en H v supplies sold,.,,,.,...,...
Td
X
tn
9
52
15
1,069
478
6,732
Total income
357
1,063
22,224
11,629
122
Other income:
Gains on sale of fixed assets
Gains on sale of acquired security or collateral.
Other
20,282
130,898
608
419,083
26,157
57,698
2,383
693
2,867
48
1,861
3,113
m
Guaranty and insxirance losses
,
Other expenses..,,,,..,,...........................
Losses and charge-offs:
Loans chsurged off
,
Other assets charged off,.,.
Losses on sale of fixed assets
Losses on sale of investments,...
Losses on sale of acquired security or
collateral.
Direct charges to operating reserves...........
Other
,
Total expense
.,,.,..,,..,...
Net income, or loss (-), before adjustment of valuation and operating reserves.,,
11,767
Unreserved eamed surplus, or deficit (-), Jxme 30,
1954
,
478
62
18,162
6,125
407
1,424
1,130
1
80,664
67,226
82,637
9,830
380,412
139
130,415
25,203
-52,615
4,160
16,456
49,975
-47
^5 22,087
673
368
-869
425
205
207
141
Net adjustment of valuation and operating reserves.
Changes in unreserved eamed surplus or deficit:
Unreserved eamed surplus, or deficit (-), Jxine 30,
1953
^
Net income, or loss (-), for the fiscal year 1954,.
Transfers to surplus reserves
Transfers from sxirplus reserves ....•......,.,..•,,,
Distribution of profits:
Treasxirer's accoxmt—deposit of eamings
Dividends
Other..,
Prior year adjustments
12,058
90
Adjxistments of valuation and operating reserves:
Reserve for losses on loans,,,.,,,.................
Reserve for losses on acquired security or
collateral.
Reserve for losses on fixed assets.,
.......••
Reserve for losses on commodities and supplies
Operating reseiwes
.^
...*
Other reserves,.......•..,•,........•,,.,.,,,.....•
Net income, or loss (-)
1,395
2,982
-136
-869
978
2,982
-136
25,203
-51,637
4,160
15,587
52,957
25,203
-145,171
-51,637
^ 73,554
4,160
^ 245,222
15,587
^ -301,826
52,957
368
r
in:
-183
^5 22,087
3,868.
368
''r;36,727
-183
78,885
^5 22,087
4,235
-36,909
100,972
23,200
-34,288
-446
-801
24,757
-2,682
279
-197,610
75,033
250,000
-248,869
Footnotes at end of follovdng table.
OJ
TABLE 78. --Income and expense of Government corporations anci certain other b u s i n e s s - t y p e activities, fiscal year 1954^ --Continued
OJ
[in thousands of d o l l a r s ]
Certain other business-type activities
Department
of
Commerce
Department of Agric ulture
Total certain other
businesstype activities 16
Incorae:
Sale of commodities and supplies
Sale of services
Rents and royalties
Interest and dividends:
Interest on public debt securities
Interest, other
Dividends
Guaranty and insurance premiums
Other income:
Gains on sale of-investments
Gains on sale of -acquired security or
Other
Total income
Expense:
Cost of commodities and supplies sold
Interest expense:
On borrowings frora the U. S. Treasury
Other
126,951
62,339
61,047
518,695
7,894
24,584
68,284
126,750
Farmers'
Home
Administration
Disaster
loans,
etc.i^
Rural
Electrification
Administration
Federal
Maritime
Board and
Maritime
Administration^^
Office of
Educa-Lion:
Loans to
students
26,262
25
25
2,369
Miscellaneous loans
anci certain
other assetp
Federal
Civil
Defense Act
of 1950, as
amended^o
X
vn
X
Q
X
H
337,433
74
X
m
7,321
67,834
43
660
161
57
21
1,020,726
27,085
()
*
1
1
4,586
2,375
41,885
81,318
•
138,393
101,725
60,831
22
461
25,934
2,014
32
46,344
7,284
412,588
81
tn
37
219
>
28
39,691
3,664
7
1
FJ
7,350
3,206
261
11,331
161
167,139
Department
of the
Interior^^
119
22
41,884
A
Depreciation (not included in cost of sales or
Grants, subsidies, and contributions:
Direct
Department of the
Treasury
80
60,113
5,084
34
16,596
7,425
135,136
510
85,848
Department
of Health,
Education,
and
Welfare
105,547
149
24
00
48,458
25
12,459
7,951
100
43
1,487
-1
13,354
12,965
68,386
390
Losses and charge-offs:
2
321
47
2,790
8,623
Losses on sale of acquired security or
8,012
Direct charges to operating reserves
Other....
.,
38 -
5
12,321
70,844
47,023.
854,366
50,103
48,505
166,360
-23,019
-46,131
-5,137
771
8,805
-5,118
3,420
12,225
-5,305
-10,793
-51,436
-5,480
^-2,753,163
-105,349
-11,963
-29,581
261,902
-10,793
-51,436
-5,480
3,516
-114,841
20
-3,055
-343
147,061
2
52
-187
-19,299
196,159
-343
7,673
7,150
Total expense............................
Net income, or loss (-), before adjustment of
412,588
29
Adjustments of valuation and operating reserves:
10
Reserve for losses on acquired secxirity or
-32,837
-2,056
Reserve for losses on commodities and supplies
>
5
Net adjustment of valuation and operating
Net income, or loss (-)
Changes in unreserved earned sxirplus or deficit:
Unreserved earned surplus, or deficit (-),
Jxme 30, 1953
Net income, or loss (-), for the fiscal year
1954
Transfers from sxirplus reserves
Distribution of profits:
Treasxirer's account—deposit of earnings..
Dividends,.........,.,..,,,.., ..... .....
Other
Prior year adjustments'
Unreserved earned sxirplus, or deficit (-),
June 30, 1954
Footnotes at end of following table.
10
20
-3,045
('')
-233
^ -55,209
20
412,588
29
-3,045
412,588
29
-22
-421,910
-114,841
-1
-412,588
-235
-58,255
'-4,261
-13,637
2 2-2,931,069
-116,142
-63,399
-35,061
29
OJ
TABLIE 78. --Income and expense of Government corporations and certain other business-type activities, fiscal year 1954 --Continued
OJ
00
[in thoxisands of dollars]
Certain other business-type activities—Continued
Farm
Credit
Administration'
Agricultural
Marketing
Act
Income:
Sale of commodities and supplies
Sale of services
Rents and royalties
,
Interest and dividends:
Interest on loans,.
Interest on pxiblic debt securities
Interest, other
Dividends
Guaranty and insxirance premixims..,,..
Other income:
Gains on sale of fixed assets
i
Gains on sale of investments
Gains on sale of acquired security or
collateral
Other
Public
Works
Administration
(in liquidation)
Housing and Home Finance Agency
Federal
Housing
Administration
Home Loan
Bank
Board:
HOLC
liquidation
unit2*
Office
Public
of the
Housing
Adminis- Administi-ator25 tration^^
Defense
Small
Veterans' Production
Business
AciminisAct of
Adminis- tration27
1950, as
tration
amended 2^
93
34,647
2,147
.,
Total income
21
7,869
3,049
3
117,741
S
H
O
H
51,572
26,494
2,226
212
52,658
1,349
12,328
,
Expense:
Cost of commodities and supplies sold
Direct operating costs
Interest expense:
On borrowings from the U. S. Treasury,,....
Other
Administrative expenses
,
Depreciation (not included in cost of sales or
direct operating costs)•..«......
Grants, subsidies, and contributions:
Direct
..••
Indirect •
..•..••
Foreign
Operations
Administration^^
Oeneral
Services
Aciministration
7
7
446
100,377
X
tn
"3,* 933
00
7,203
tn
'2,842
"'8,'o32
^
o
H
15,368
116
1,171
2,033
1,182
36,954
2,147
128,87-;
tn
56,751
122,590
20,496
7,003
117,861
9,590
15
5,562
1*493
"1,126
10,919
1
4,882
420
2,638
53,430
tn
>
00
24,082
22,457
29 517
509
31,316
30
52,285
()
*
594
148
15,215
3,681
GuRranty and Insurance 1o^Pfts..,....•......•,,,,.••
Other exoenses.....................................
Losses and charge-offa:
Loans charged off•,..••.••...•.•.,,•••,........
Other assets charged off
I1OOR6S on salf of f'lxpd assptp,,,,,,,,.,..,,...
Losses on sale of investments...;..............
Losses on sale of acquired security or
collateral.....................................
Other
4,262
206
247
472
4,776
3,135
12
157
4
390
Total expense.••.•,...•...,,.•................
Adjustments of valuation and operating reserves:
Reseirve for losses O H loans........................
Reserve for losses on acquired secxirity or
collateral........................................
27 336
131
76
6
53,601
7,964
5
* 58,* 515
v..
Net incOTie, or loss (-), before adjustment of valuation and operating ireservea..,
••.•,.,.,..
**14,'895
8
12
26,719
157
41,094
.6
76,683
139,886
1,170
10,235
1,989
87,780
-6
-23,254
-86,933
-1,476
-515
-875
-5
-52
-32,955
115
2
1,508.
49,508
173,433
7,243
-50,843
-1,135
"-2',056
Reserve for losses on commodities and supplies.,...
"13^660
Other reserves•.•••••••.•••.••,•,•.,.....•••....,•,
Net a j f t l f n of valuation and operating reserves.
dulffit
12
-5,987
10
Net lnc(»e, or loss (-).,....
Changes in xmreserved eamed sxrpplxis or deficit:
Unreserved eamed surplus, or deficit (-),
June 30, 1953.
•
Net income, or loss (-), for the fiscal year 1954..
Ti*ansfers to surplus reserves..*•.•,•••,,,,•.....•.
4,627
3,867
-19,811
1,182
10,235
1,989
67,970
-315,295
1,182
-54,395
10,235
-1,585,837
1,989
146,298
67,970
-6,608
-6
-2,043
-19,386
-88,977
'-817
81
-52
-817
-7,041
-1,528
6,425
-57,884
36
6,425
-48,961
-57,884
-1
-6,188
6,461
-113,034
18
r
tn
c/3
-2,691
31 ' -21,570 ^-671,134
-6
-19,386
-88,977
**-!,* 528
• '
Distribution of profits:
Treasurer's account—deposit of earnings.......
Dividends
Other
*...
Prior year adjustments. •.•..•...•....•'•......,.•.•.
Unreserved eamed sxrpplxis, or deficit (-),
June 30, 1954...
"-3*206
"*"-25
"11^637
4
-314,113
-50,768 -1,586,539
211,067
" 17*451
-41,990
-767,562
-1,528
F o o t n o t e s a t e n d o f follovring t a b l e .
OJ
TABLE 79. --Source and application of funds of Government corporations and certain other business-type activities, fiscal year 1954
[In thousands of dollars]
o
Corporations
Grand
total
Department
of
Commerce
Department of
Agricultxire
Total
corporations
Commodity
Credit
Corporation
Federal
Crop
Insurance
Corporation
Inland
Waterways
Corporation
Department
of the
Interior
Department
of
Jxistice
Exportimport
Bank of
Washington
g
Federal
Virgin
Regular
Prison
Islands
lending
Industries,
Corporation
activities
Inc.
Fxmds applied:
To acquisition of assets:
14,239,419
Pxirchase of investments:
Public debt secxirities of U. S
Purchase, construction, or improvement of fixed assets..
Cost of acquiring collateral on defaulted loans
Other
2,078,101
50,478
439,521
55,915
1,338,562
8,071,001
3,385,521
*32 9*666
341
9,000
3,151
11,795,133
4,718,012
1,791,037
1,100,947
121,790
i,*363
38,153
282
5
1,673
282
565,177
2,587
18,136
29,194
o
•n
H
X
vn
To retirement of borrowings and capital, and distribution
of sxirplus:
Repayment of borrowings:
To U. S. Treasxiry:
By cancellation of notes
To other Government corporations and agencies
To the public
Repayment of capital and surplus:
To U. S. Treasury
To others
H
X
tn
2,023,151
50,450
43*317
351,320
212
1,299,000 3*^*1,289^175
18,201,996
To expenses (excluding depreciation and other charges not
requiring fxmds)
565 172
29
3,553,317
'956,773
406,886
1,996,667
3,143,744
956,773
400,903
1,985,831
426,291
15,234
246,665
9,915
328,000
1,853,227
956>773
tn
>
4
421,910
47,599
1,617
Dividends
40,* 749
1,617
2,750
22 500
2,750
350 500
21,168
916,568
Total retirement of borrowings and capital, and dis7,826,293
6,786,197
2,810,000
689,107
-22,168
305,490
-28,303
19,959,464
7,667,743
10,347,481
956,773
6,076,876
1,755,681
28,500
78,081
61,326
29,897
996,472
1,614,562
77,847
46,890
13,338
968,727
14,254,210
8,798,240
1/651,546
2,284,235
1,264,824
34,266
4
17,940
28,486,265
To increase in v/orking capital and deferred items
Other funds applied
263
108
12,414
4,369
683,266
12
17
5
ii,*438
410
^^ 968,276
444
-28,303
38,157
Funds provided:
By realization of assets:
Repayment of loans:
By cancellation of corporation notes
Sale or collection of inves-tments:
Public debt securities of U. S
Other
.
. .
11,894
27,468
427
520
2,061
350,348
350,348
20,815
86,605
r
tn
By borrowings, capital and surplxis subscriptions, and
appropriations:
Borrowings:
00
4,351,117
199,219
1,814,110
801
115,599
646,357
1,243,350
800
104,560
646,357
239,037
9,320,085
7,355,201
2,596,947
30,788
2,511,160
30,040
28,486,265
From other Government corporations and agencies
5,254,296
205,061
1,854,621
19,959,464
447,900
3,378,000
Capital and sxirplxis subscriptions:
800
7
646,357
5,'445
1,080
4,024,357
5,445
1,880
1,957,57.3
5,243
7,667,743
38,157
Other
Total borrowings, capital and surplus subscriptions,
and appropriations
By decrease in working capital and deferred items
Footnotes at end of table.
12,414
4,369
7
447,900
346
3,502
28,213
21,168
916,568
TABLE 79. --Source and application of funds of Governnnent corporations and certain other business-type activities, fiscal year 1954^--Continued
ts)
[In thoxisands of dollars]
Corporations—Continued
SxportImport Bank
of
Washington—
Continued
Defense
Production
Act of 1950,
as amended
Foreign
Operations
Administration^
Farm Credit Administration^
Banks
for
cooperatives
Federal
Farm
Mortgage
Corporation
Federal
intermediate
credit
banks
Federal
Deposit
Productipn Insxirance • Institute
Corporation of Intercredit
corporaAmerican
tions
Affairs''
. Hoxising and Home
Finance Agency
Home Loan Bank Board
Federal
home
loan
banks
Federal
Savings
and Loan
Insurance
Corporation
. X
12,718
Pxirchase of inves-tments:
Public debt secxirities of U.S...
491,535
63
43,735
500
Purchase, construction, or improvement of fixed
assets
Cost of acquiring collateral on defaxUted loans...
Other
1,790,273
215,192
vn
723,726
24,647
860
235,123
1,376,003
49,090
00
128,450
4
191
535,962
83
2,005,465
25,507
235,607
6,279
750
19,294
1,702
88,247
2,148,819
128,454
20,593
2,304
s
O
H
To expenses (excluding depreciation and other charges
177
23,441
of borrowings and capital, and dissurplus:
of borrowings:
S. Treasxiry:
X
tn
H
a
17
tn
>
20
484
12,718
By cancellation of notes..'
To other Govemment corporations and agencies.
To the nublic •
Repayment of capital and sinrplus:
To U S. Treasurv
O
H
Funds applied:
To acqxiisition of assets:
To retirement
tribution pf
Repayment
To U.
3
42,147
196,455
28,500
8,890
51
593,450
1,195,875
2,850
4,225
10,208
1
1,023
Treasurer's account—deposit of earnings
Dividends
7,'o6o
1,167
8,053
218
232
Total retirement of borrowings and capital, and
17
277,159
120
1
602,744
10,208
23,442
2,772,156
140,967
2,332
13,032
To increase in working capital and deferred items
Other funds applied.'.
1,198,957
4,225
821,731
7,884
3,223,715
31,435
506,280
Funds provided:
By realization of assets:
Repayment of loans:
By cash
By cancellation of corporation notes
Sale or collection of investraents:
Public debt securities of U. S
Capital of Government corporations
7,051
5,827
1,828,912
766,901
216,704
27,425
2
34,828
323,854
134,200
2,764
1
1,083,220
1
341
445
541,449
6,272
2,045,616
30,189
133,253
13,561
936
21,119
1,207
177,533
()
*
()
*
4,053
Other
315
118,186
60,591
1,910,711
1
118,186
31,379
21,141
tn
By borrowings, capital and surplxis subscriptions, and
appropriations:
Borrowings:
12,717
From other Government corporations and
53,350
204,520
" * 457 ,'500
1,152,090
Capital and surplus subscriptions:
B y U . S. Treasury
"'is,'861
8,'85i
""68,'008
Cancellation of notes to U. S. Treasury
General fund appropriations—expended
Other
Total borrowings, capital and surplxis subscriptions, and appropriations
18,861
525,508
676
12,717
4,889
39
8,069
4,579
304,558
1,639
7,884
3,223,715
31,435
323,854
23,442
2,772,156
140,967
1,152,090
266,721
Other funds provided
13,032
Footnotes at end of table.
821,731
>
tn
r
00
" T A B L E 79. --Source and application of funds of Government corporations and certain other business-type activities, fiscal year 1954 --Continued
4^
[in thousands of dollars]
Corporations—Continued
Reconstruction Finance
Corporation and certain
affiliates^i
Housing and Home
Finance Agency—Continued
Office of
the Aciminis trator:
Federal
National
Mortgage
Association
Funds applied:
To acquisition of assets:
Loans made
Purchase of inves"tments:
Public debt securities of U. S
Other secxirities
Purchase, construction, or improvement of fixed assets.
Cost of acquiring collateral on defaxated loans
Other
Public
Housing
Administration^
Panama
Canal
Company^o
Regxaar
lending
activities
Assets
held for
the U. S.
Treasury^2
In liquidation by
Reconstruction Finance
Corporation^^
Defense
Homes
Corporation^ 3
Smaller
War Plants
Corporation^'^
Tennessee
Valley
Au-thority
X
vn
X
H
o
•
n
H
X
480,783
83,374
525,717
vn
12,089
00
tn
o
17
1,189
298,616
6,586
>
480,800
526,907
6,586
83,374
12,089
80,558
62,879
78,820
9,830
378,876
298,616
O
To expenses (excluding depreciation and other charges not
To retirement of borrowings and capital, and distribution
of sxirplxis:
Repayment of borrowings:
To U. S. Treasury:
By cash
By cancellation of notes
To other Government corporations and agencies
To the public
Repayment of capital and sxirplus:
114,138
tn
H
X
vn
>
879,000
5,000
35 78,500
00
G
X
358,756
180,000
To others
49
2
1,200
19,677
Treasurer's account—deposit of earnings
..........
446
Other distribution of surplus
Total retirement of borrowings and capital, and dis359,202
To increase in working capital and deferred items
Other funds applied
78,500
879,002
2,674
8,572
929,132
1,468,788
677,343
6>532
444,819
936,017
52
88,080
180,000
1,200
24,677
1,249
437,431
368
273,114
570,964
368
Funds provided:
By realization of assets:
Repayment of loans:
359
321,594
By cancellation of corporation notes
Sale or collection of investments:
Public debt securities of U. S
Capital of Government corporations
216
Sale of acquired security or collateral
14,493
233
8,433
1,594
""26,'405
66
7
677,395
942,549
223
344,754
15,508
86,883
26,565
427,437
425
26,405
105,867
368
1,594
93
163,177
tn
By borrowings, capital and surplus subscriptions, and
appropriations:
Borrowings:
73,500
439,000
From other Government corporations and agencies
From the public
Capital and surplus subscriptions:
By U. S. Treasury
145,869
137
""'8,*696
Cancellation of notes- to U. S. Treasury
186,'335
46,177
Other
Total borrowings, capital and'sxurplus subscriptions.
145,869
73,500
485,177
929,132
186,472
8,696
731
108,426
24,700
853
Footnotes at end of table.
>
CD
1,468,788
88,080
86,188
1,249
• 437,431
974
444,819
570,964
368
TABLE 79. --Source and application of funds of Government corporations and certain other business-type activities, fiscal year 1954 --Continued
[In "thoxisands of dollars]
Certain other business-type activities
Total
certain
other
businesstype
activities
Department
of the
Army
Department
of
Commerce
Rural
Electrifi- Gxiaranteed
loans,
cation
(World
AdminisWar II)
tration
Federal
Maritime
Board and
Maritime
Administration^®
Department of Agriculture
Farmers''
Home
Administration
Disaster
loans,
etc.IV
Depar'tment
of Health,
Education,
and Welfare
Department of
the Treasury
•Department
of the
Miscellaneoxis
Office of Interior^^'
loans and,
Education:
certain
Loans to
other
students
assets
Federal
Civil
Defense
Act of
1950, as .
amended^o
6,168,419
Pxirchase of investments:
Public debt securities of U. S
Other securities
«.
Purchase, construction, or improvement
of fixed assets
Cost of acquiring collateral on defaulted loans
Other
181,118
92,919
209,969
453
H
2 '265
H
X
tn
00
tn
o
X
88,202
51
vn
43,535
H
>
55,703
39,562
370
158
1
8
181,646
92,928
210,019
43,535
453
690,090
To expenses (exclxiding depreciation and
other charges not requiring fxmds)
5,402,065
54,950
28
6,406,864
37,506
48,399
46,975
187,431
405
X
o
5,402,065
2,265
52
H
X
tn
X
tn
To retirement of borrowings and capital,
and distribution of sxirplus:
Repayment of borrowings:
To U. S. Treasury:
By cash.
By cancellation of notes
• To other Govemment corporations
X
o
Fxmds applied:
To acqxiisition of assets:
To the public
Repayment of capital and surplxis:
To U. S. Treasury
tn
>
00
409,572
126,418
46,589
440
1
G
5
5,983
10,835
•
179,626
5,319
49
62,789
4,986
86
2,165
Treasxirer's account-deposit of earnings
Dividends
Other distribution of sxirplxis
Total retirement of borrowings and
capital, and distribution of surplus.
22
421,910
6,850
49
1,040,096
126,858
383,617
6,135
835
276
346,844
141,603
313,737
49
4,270,605
111,812
. 42,682
59,783
49
412,588
108
2,166
412,588
10,152
8,526,801
1
46,590
67,775
To increase in working capital and deferred
O'ther funds applied
14
108
3,024
5,814,654
2,330
86
298,741
2,841
3,745,313
110
Funds provided:
By realization of assets:
Repayment of loans:
By cancellation of corporation
956,773
Sale or collection of investments:Public debt securities of U. S
Capital of Goveriiment corporations.
956,773
Total realization of assets
By borrowings, capital and surplus subscriptions, and appropriations:
Borrowings:
From U. S. Treasury.
From other Government corporations
and agencies
From the public
;....
Capital and surplxis subscriptions:
B y U . S. Treasury
8
183
170
12
19
5,455,970
112,172
42,713
59,783
1,019,411
Sale of acquired security or collateral
141,119
28,500
233
14,436
16,559
27,745
27,083
2,376
41,885
226
607
267
833
86
3,108
4,702,086
110
81,157
49
22
461
412,588
81
00
903,179
35 2,139
205,000
182,000
5,842
40,511
1
11,039
1
Cancellation of notes to U. S. Treasury
General fund appropriations—expended..
Other
1,004,313
25,551
""96,* 514
7,'668
^^ 162,770
"""^651
"'699,979
Total borrowings, capital and surplus
subscriptions, and appropriations....
By decrease in working capital and de-
1,964,884
207,551
96,514
212,068
169,986
-651
699,979
2,139
46,766
106
5,814,654
2,330
7,*216
Footnotes at end of table.
85,787
748
38
8,526,801
O'ther funds provided
r
tn
346,844
141,603
313,737
49
298,741
108
3,024'
-4
TABLE 79. --Source and application of funds of Government corporations and certain other business-type activities, fiscal year 1954 --Continued
00
[in thoxisands of dollars]
"
Certain other bxisiness-type activities—Continued
Farm
Credit
Administration^
Agricultural
Marketing
Act
Foreign
Operations
Administration^^
General
Services
Administration
Public
Works
Administration
(in liqxiidation)
Housing and Home Finance Agency
Federal
Hoxising
Administration
Home Loan
Bank Board:
HOLC
liquidation
unit^-^
Office
of the
Administrator 2 5
Public
Hoxising
Administration^^
Small
Business
Administration
Veterans'
Administration^''
Defense
Production
Act of
1950, as
amended2^
X
70,089
13,851
3
122,953
69,989
tn
763
23,229
20,585
13,851
26,719
32,589
70,089
108,095
6
>
23,703
2,274
125,968
64,669
28,958
1,508
49,061
165,813
o
129,970
m
H
X
tn
>
00
C
17,100
218,873
592
X
tn
H
X
2,252
53,078
borrowings and capital, and
surplus:
borrowings:
Treasury:
By cancellation of notes
To other Government corporations
and agencies
To the public
Repayment of capital and surplxis:
To U. S. Treasxiry
To others
vn
o
39,396
3
of
of
of
S.
2,274
54,950
28
39
To retirement
distribution
Repayment
To U.
474
00
Purchase of investments:
Public debt securities of U. S
Other securities
Purchase, construction, or improvement
To expenses (excluding depreciation and
other charges not requiring fxmds)
vn
X
H
O
Funds applied:
To acquisition of assets:
Cost of acquiring collateral on defaulted loans
Other
X
5,983
10,835
886
65,497
25
7,287
35,154
333
9,176
-3,929
Treasurer's accoxmt—deposit of eamings
Dividends
Other distribution of surplus
6,608
2,691
6,850
Total retirement of borrowings and
7,200
3,577
89,166
5,194
195
25
226,160
35,487
100,340
9,176
13 171
785
10,901
254 923
6,123
To increase in working capital and deferred
3
11
Other funds applied
5
Total funds applied
52,963
3,772
111
31
360,918
88,160
4,567
195,106
570,000
242,258
2,842
38
20,583
40,765
638
57
A
886
330,189
""l0,'804
23
1,383
2
27,550
Funds provided:
By realization of assets:
Repayment of loans:
447
By cancellation of corporation notes
Sale or collection of investments:
Public debt securities of U. S
Capital of Government corporations..
Other securities
141,119
28,500
739
Sale of acquired security or collateral.
Other
1,092
30,039
11
111
36,954
1,625
2,147
7
3
13,832
1,347
154,962
242,956
13,646
38
21,991
69,661
128,874
53,437
52,952
32
56,741
122,610
96,651
361,484
By borrowings, capital and surplus subscriptions, and appropriations:
Borrowings:
41,500
14,405
From other Government corporations
5,842
40,511
Capital and surplus subscriptions:
By U. S. Treasury
By others
Cancellation of notes to U. S. Treasury.
General fund appropriations—expended...
Other
Total borrowings, capital and surplus
subscriptions, and appropriations
3,815
8
-30,045
i,*46i
-30,045
15,866
6,'584
12,099
4,498
19,722
-1,237
48,084
12,107
4,498
116,373
364,062
31
16,441
8,744
711
31
360,918
88,160
46,352
By decrease in working capital and deferred
32
Other fxmds provided
5
Footnotes at end of table.
52,963
3,772
330,189
13,668
4,567
195,106
570,000
vO
Footnotes to tables 78 and 79.
fense, war, and reconversion activities, and stipvilated that any amounts recovered
by the Corporation with respect to these activities subsequent to Jxme 30, 1947,
shoxild, after deduction of related expenses, be deposited in the United States
^ Revised.
Treasxiry as miscellaneous receipts. The national defense, war, and reconversion,
*Less than $500.
. • On .basis of reports received from the Government corporations and other bxisi- activities consist of the syn-thetic rubber, tin, anci abaca programs, and liqxiidat*
•
ing activities relating principally to the rental and disposal of World War II
.ness-type activities. For semiannual statements, see the "Treasury Bxilletin."
defense plants and facilities, -the settlement of claims, and collection of re2 Includes $2,500 thousand interest paid on capital stock.
ceivables. In accordance with Executive Order No. 10539, dated Jxme 22, 1954, the
^ Represents interest on advances from appropriations and on paid-in capital.
* This amoxmt differs from the net loss shown above becaxise this figure excludes' President authorized and directed the Secretary of the Treasury to cause to be
organized a corporation xmder the authority and subject to the provisions of Secthe loss from operations by the Federal Maritime Board and the Maritime Administion 10 of the Rubber Act of 194S, as amended (50 U.S.C. App. 1929). The corporatration (see footnote 21).
tion is knoxm as the Federal Facilities Corporation. By Executive Order No. 10539,
^ In accordance with the act approved Aug. 6, .1953 (67 Stat. 390), the Farm
the President transferred the synthetic rubber and tin programs to the Federal
Credit Administration was transferred from the Department of Agricxilture and desFacilities Corporation and the abaca fiber program to the General Services Adminignated as an independent agency, effective Dec. 4, 1953.
istration, all effective at the close of business on June 30, 1954. On the same
^ This Administration superseded the Mutual Secxirity Agency, effective Aug. 1,
date, the Secretary of the Treasury took over the responsibility of liqxiidating
1953, pursuant to Reorganization Plan No. 7 of 1953, and Executive Order No. 10476
the World War II assets, with the exception of the World War II assets which were
of Aug. 1, 1953,
transferred to the Export-Import Bank of Washington in accordance with Reorganiza" This Corporation, formerly shcnm xmder the Department of State, was trans^
tion Plan No. 2 of 1954. Figxires for source and application of fxmds are shovm on
ferred to the Foreign. Operations Administration pxirsuant to Reorganization Plan
No. 7 of 1953, effective Aug. 1, 1953. In accordance with the act approved Aug. 26, a net basis.
^^ The eqxiity of the Reconstruction Finance Corporation in the net assets of
1954 (68 Stat. 862), this Corporation shall, on and after July 1, 1954, be subject
this Corporation and the fxmction of liqxiidating these assets were transferred to
to the applicable provisions of the Budget and Accounting Act, 1921, as amended
(31 U.S.C. l), in lieu of the pro-visions of the Govemment Corporation Control Act, the Federal National Mortgage Association, effective at the close of business
Jxme 30, 1954, pxirsuant to Reorganization Plan No. 2 of 1954.
as amended (31 U.S.C. 841).
^* Represents interest on the net direct investment of the Government in the
® Represents accrual of interest in lieu of dividends on capital stock.
Corporation (see footnote 10).
' Represents activities xmder the United States Hoxising Act, as amended. War
^^ Represents net income during the fiscal year 1954 from power operations.
hoxising and other operations of "the Administration are shown under "Certain other
^^ Department of the Army—gxiaranteed loans (World War II), shown in table 79,
bxisiness-type acti-\n.ties."
did not have any income or expense dxiring the fiscal year 1954.
^° Figures in this column are shown on a tentative basis.
^ ^ Revolving fxmd. Farmers' Home Administration.
"
. ^^ On Sept. 29, 1953, pursuant to the act approved July 30, 1953 (67 Stat. 230),
^^ Figxires in this colxunn are shown on a preliminary basis.
the Reconstruction Finance Corporation started liquidation of its activities, ex^^ Consists of Indian loans and Puerto Rico Reconstruction Aciministration (in
cept those carried on by the Corporation pxirsuant to Section 409 of the Federal
liqxiidation). In accordance with the act approved Aug. 15, 1953 (67 Stat. 584),
Civil Defense Act of 1950 (64 Stat. 1257), and those carried on pursuant to the
the Secretary of the Interior was authorized and directed to start liquidation of
Defense Production Act of 1950, as amended (50 U.S.C. App. 2091-2094), which were
the Administration.
transferred to the Secretary of the Treasxiry as of Sept. 28, 1953, and as o " the
f"
2° Transferred from the Reconstruction Finance Corporation (see footnote ll).
close of business on Sept. 28, 1953, respectively. On Jxily 1, 1954, the Secretary
2^ The cumulative unreserved surplus or deficit cannot be segregated from the
of the Treasury assumed the responsibility of completing the liquidation of cerGovernment's eqxiity in the activity, X ^ i h consists of expended appropriations
ihc
tain activities of the Corporation, as provided in the act approved July 30, 1953.
and cumulative xinreserved surplxis or deficit.
Pxirsuant to Reorganization Plan No. 2 of 1954, effective at the close of bxisiness
June 30, 1954, certain loans, securities,.and other assets, together with the
.22 This figxn-e will not agree with the corresponding figxire shovm as "Earned
functions relating thereto, were transferred from the Corporation to the Exportsxirplus, or deficit (-), United States share" in the "Tota!l" colxmm of the balImport Bank of Washington, the Federal National Mortgage Association and the' Small ance sheets of "Certain other business-type activities" which appear in table 77,
Business Administration. War Damage Corporation (in liquidation),' shovm xmder the
'because this figxire excludes reserve for contingencies held by the Housing and
heading "Reconstruction Finance Corporation and certain affiliates," ih table 77,
Home Finance A(iministra\;or—Commxmity facilities service, amoxmting to $250 thoudid not have any" activity dxiring the fiscal year 1954.
...
sand, and reserve for amortization held by the General Services Administration
(included xmder Defense Production Act of 1950, as amended), amoxmting to $10,444
^^ Represents accounts held for the United States Treasui^ in accordance With the
thoxisand.
act approved June 30, 1948 (62 Stat. 1187-1188), which provided for cancellation
23 Consists of guaranty program and loan program (see footnote 6).
of Reconstruction Finance Corporation notes in the amoxmt of $9,313,736 thoi^and,
2* Liqxiidation was completed during the fiscal year 1954.
plus interest accrued thereon subsequent to June 30, 1947, in its national de-
O
X
tn
s
o
H
X
tn
00
tn
n
>
O
•n
H
X
tn
H
a
5
2^ Consists of Alaska housing program, community facilities service, housing
loans for educational institutions, investment in the Federal National Mortgage Association, prefabricated housing loans, program, and slum clearance program. The revolving fund for development of isolated defense sites, included under this heading
in table 79, was terminated during the fiscal year 1954. The fxmd did not have any
income or expense during the fiscal year 1954 prior to the date of its termination.
In.accordance with the act approved June 24, 1954 (68 Stat. 295), a revolving fxmd
was established, effective Jxily 1, 1954, for use in connection with the liquidation
of the Alaska housing program, the community facilities service, and the prefabricated housing loans program. Pursuant to the act approved Aug. 2, 1954 (68 Stat.
622), the functions of the Housing and Home Finance Administrator,' including the
fxmction of making payments to the Secretary of the Treasxiry, xmder Section 2 of
Reorganization Plan No. 22 of 1950, together with the notes and capital stock of
the Federal National Mortgage Association held by the Administrator were transferred to the Federal National Mortgage Association.
2^ Consists of Farm Secxirity Administration program, public war housing program,
and veterans' re-use hoxising program. In accordance with the act approved Jxme 24,
1954 (68 Stat. 295); a revolving fund was established, effective Jxily 1, 1954, for
xise in connection with the liquidation of these programs.
2* Consists of guaranteed loans to veterans, veterans' canteen service, and vet''
erans ' direct loan program.
2^ Consists of Atomic Energy Commission, General Services Administration, and
Departments of Agriculture, the Air Force, the Array, Commerce, the'Interior, the
Na'vy, and the Treasxiry. The Defense Materials Procxirement Agency, formerly included under this heading, was abolished, and its activities were transferred to
the General Services Administration in accordance with Executive Order No. 10480
of Aug. 14, 1953. The activities carried on by the Department of the Treasury were
transferred from the Reconstruction Finance Corporation (see footnote ll).
2^ Represents interest on fxmds advanced to the Administration by allocations
and appropriations.
•'°'Represents interest on fxmds advanced to the Administration by appropriations.
3^ Represents pxirchase of commodities and other costs.
32 Represents a mortgage received from the sale of the Corporation's property
and operating equipment. As of June 30, 1954, a repayment of $444 thousand had
been made on this mortgage.
33 Represents sales and exchange of commodities and loans transferred to accoxmts receivable.
3^ Figxires in this column are shown on a net basis.
3 5 Includes $1,814 thousand transferred from the Reconstruction Finance Corporation to the Secretary of the Treasury (Federal Civil Defense Act of 1950), pursuant to Section 104 of the act approved July 30, 1953 (67 Stat. 231).
3^ Represents appropriations made by Congress during the fiscal year 1954, less
lapsed appropriations transferred to the "Payment of certified claims" accoxmt of
the United States Treasury.
G
ON
Ul
652
1954 REPORT OF THE SECRETARY OF THE TREASURY
T A B L E 80. --Restoration of capital impairment of the C o m m o d i t y Credit Corporation as of June 30, 1954
Restoration of capital impairment:
By appropriations:
Act of June 25, 1938 (appraisal as of Mar. 31, 1938, H. Doc. 670, 75th Cong.),
Act of Aug. 9, 1939 (appraisal as of Mar. 31, 1939, H. Doc, 317, 76th Cong.)..
Act of July 3, 1941 (appraisal as of Mar. 31, 1941, H. Doc. 248, 77th Cong.)..
Act of April 25, 1945 (appraisal as of Mar. 31, 1944, H. Doc. 48, 79th Cong.).
Act of July 5, 1952 (appraisal as of June 30, 1951, H. Doc. 57, 82nd Cong.)...
Total appropriations through fiscal yeeu: 1952.
By cancellation of obligations of the Corporation
held by the Treasxiry:
Act of July 20, 1946 (appraisal as of"
June 30, 1945, H. Doc. 54, 79th Cong.)
Act of May 26, 1947 (appraisal as of
June 30, 1946, H. Doc. 186, 80th Cong.)
A.ct of Sept. 6, 1950 (appraisal as of
June 30, 1949, S. Doc. 161, Slst Cong.)
Act of Aug. 31, 1951 (appraisal as of
June 30, 1950, Public Law 135, 82nd Cong.)
Act of July 28, 1953 (appraisal as of
June 30, 1952, Public Law 156, 83rd Cong',)...
Act of Feb, 12, 1954 (appraisal as of
June 30, 1953, Public Law 295, 83rd Cong.)
Total
Less sxirplus retxirned to Treasiury:
Appraisal as of March 31, 1940.
Appraisal as of March 31, 1942.
Appraisal as of June 30, 1947..
Appraisal as of June 30, 1948..
Net charges to Treasury to restore
impaired capital of Commodity
Credit Corporation
$94,285,404.73
119,599,918,05
1,637,445.51
256,764,881.04
109,391,154.00
581,678,803.33
$921,456,561.00
641,832,080.64
66,698,457.00
421,462,507.00
96,205,161.00
550,151,848.00
2,697,806,614.64
3,279,485,417.97
43,756,731.01
27,815,513.68
17,693,492,14
48,943,010.36
138,208,747.19
3,141,276,670.78
Includes $39,436,884.93 appropriated for capital impairment applicable to Mar. 31, 1943, appraisal,
^ Excludes cancellations of $56,239,432.11 representing losses incurred through sales of commodities in
connection with the Foreign Aid Act of 1947 (61 Stat, 939); $53,062,167 account of funds transferred and expenses incurred for eradication of foot-and-mouth diseases, e t c , undertaken pursuant to the act of May 29,
1884, as amended (7 U.S.C. 391 and 21 U.S.C. 111-122); and $483,456,440 net costs to the Corporation for
operations conducted under the International Wheat Agreement Act of 1949 (63 Stat. 945).
653
TABLES
TABLE 81. --Reconstruction Finance Corporation notes canceled and cash recoveries made
through June 30, 1954
Cancellations
Fiscal
year 1954
Allocations to governmental agencies,
funds for relief pursuant to authorization or direction of Congress, administrative expenses in connection
therewith, and interest paid on fxmds
borrowed for these purposes (act of
Feb. 24, 1938, Public Law 432)
Fxmds advanced to Federal Housing Administration (act of Mar. 28, 1941,
Public Law 24)
Repurchased capital stock of Federal
home loan banks (act of June 30,1947,
Public Law 132)
Loans to Secretary of Agricultxu-e (act
of July 30, 1947, Public Law 266):
Rural rehabilitation and farm tenancy
loans for Farmers' Home Administration program
Rural Electrification Administration
Total through
June 30, 1954
Total
Total through
June 30, 1954
$2,780,673,280.61
$53,497,436,45
^ $742,205,890.35
5,000,000.00
5,000,000.00
5,000,000.00
46,589,406.19
^ 199 016 539 21
184,921,320.68
632 796 366 88
122,672,200.00
^ 40 367 816 15
40,367,816.15
510,848,903.98
Transfer of public buildings (act of
July 30, 1947, Public Law 268)
Net investment of Defense Homes Corporation (act of June 28, 1948, Public
Law 796)
Unrecovered costs as of June 30, 1947,
national defense, war, and reconversion (act of June 30, 1948, Public
Law 860)
Strategic and critical materials (act
of June 30, 1948, Public Law 860):
Metals, etc
Rubber
Cash recoveries
Fiscal year
1954
9,735,561.99
1,512,930.24
9,359,742,084.04
14,479,120.49
3,632,421,98
12,848,664,319.48
290,008,163.32
• 1,742,058,812.59
"
•
r Revised.
^ In addition to the above cash recoveries, securities and other assets in the amount of $744,206,568.56
as of June 30, 1954, have been transferred from the Reconstruction Finance Corporation to other governmental
agencies.
339256 O - 55 - 43
TABLE 82. - - S e c u r i t i e s owned bythe United States Government (other than World War I and World War II foreign government obligations^), June 30, 1954, and changes during 1954
[On the basis of the face value of the s e c u r i t i e s received by the United S t a t e s , with due allowance for repayments. To the extent t h a t the s e c u r i t i e s are not held in the custody
of the Treasury, the statement i s made up from reports received fream other Government departments and establishments ]
Security and issxiing agent
Capital stock of Government corporations:
Baiiks for cooperatives
Commodity Credit Corporation
Defense Homes Corporation (in liqxiidation2)
Disaster Loan Corporation
Export-Import Bank of Washington
Federal Crop Insurance Corporation
Federal Farm Mortgage Corporation
Federal intermediate credit banks
Federal National Mortgage Association*
Federal Savings and Loan Insurance Corporation.
Reconstruction Finance Corporation (in
liquidation).'
Smaller War Plants Corporation (in liquidation). ^
U. S. Commercial Company
War Damage Corporation (in liquidation)''..
Date of authorizing act,
order, or plan
Amoxmt owned
June 30, 1954
June 16, 1933, as amended
....do
Jan. 22, 1932, as amended
Feb. 11, 1937, as amended
June 16, 1933, as amended
Feb. 16, 1938; Aug. 25, 1949...
Jan. 31, 1934, as amended
Mar. 4, 1923, as amended
June 27, 1934, as amended
June 27, 1934
$150,000,000.00
100,000,000.00
10,000,000.00
June 3, 1924, as amended
June 16, 1933, as amended
Sept. 1, 1937, as amended
Jan. 22, 1932, as amended
Net increase
during 1954
$28,500,000.00
Explanation of change
Repayment to revolving fund.
X
vn
g
1,000,000,000.00
27,000,000.00
10,000.00
60,000,000.00
20,000,000.00
76,987,000.00
H
O
8,768,000.00
Repayment of capital funds to miscellaneous receipts.
4,225,000.00
15,000,000.00
31,735,000.00
1,000,000.00
100,000,000.00
Repayments to revolving fxind.
tn
n
Jxme 11, 1942, as amended
Jan. 22, 1932, as amended
Net decrease
during 1954
4^
1,200,000.00
38,200,000.00
Repayment of capital funds to miscellaneous receipts.
Corporation dissolved—stock to be canceled by R.F.C.
....do
1,000,000.00
1,630,932,000.00
X
tn
H
o
•n
42,693,000.00
42,693,000.00
H
X
vn
Paid-in sxirplus of Govemment corporations:
2,800,000.00
1,000,000.00
2,850,000.00
3,800,000.00
Federal National Mortgage Association*
Jan. 31, 1934
June 27, 1934, as amended
2,850,000.00
2,850,000.00
Net change in paid-in surplus
Bonds and notes of Govemment corporations
and agencies held by the Treasury:
Commodity Credit Corporation
Repayments to revolving fund.
tn
Mar. 8, 1938, as amended
July 31, 1945, as amended
4,180,000,000.00
1,347,000,000.00
9 $568,000,000.00
119,900,000.00
Net borrowings from the U. S. Treasury.
Do.
Apr. 3, 1948, as amended
Apr. 3, 1948, as amended, and
June 15, 1951.
5,545,000.00
1,197,267,609.58
2,015,000.00
11,798,246.86
Borrowings from the U. S. Treasury.
Net borrowings from the U. S. Treasury.
Foreign (derations Administration:^°
Housing and Home Finance Administrator:
Federal National Mortgage Association.
Housing loans for educational institutions .
Prefabricated housing loans program...
Slum clearance program
Public Housing Administration
Reconstruction Finance Corporation (i:
liquidation).'
Reorgani zat ioi Plan No. 22 of
1950
Apr. 20, 1950.
2,233,210,000.00
Reorganization Plan No. 23 of
1950, and act of Sept. 1,
1951.
July 15, 1949
Sept. 1, 1937, as amended
Jan. 22, 1932, as amended
12,800,628,59
Rural Electrification Adrainistration
Secretary of Agriculture (Farmers' Home
Administration program).
Secretary of the Treasury (Federal Civil
Defense Act of 1950).^*
May 20, 1936, as amended
Aug. 31, 1951; July 5, 1952.
Tennessee 'Valley Authority
Veterans' Administration (veterans direct
loan program).
Defense Production Act of 1950, as
amended:'
Defense Materials Procurement Agency-"-^
May 18, 1933, as amended.,
Apr. 20, 1950, as amended..
51,500,000.00
212,887,000.00
31,500,000.00
5,986,328.74
38,000,000.00
215,000,000.00
154,000,000.00
10,000,000.00
* 2,091,132,364.77
^^ 172,376,896.38
158,410,593.81
55,581,836,45
440,000,000.00
^^ 5,000,000.00
Jan. 22, 1932, as amended, and
July 30, 1953.
29,000,000.00
366,718,875,00
13,068,382.67
593,700,000,00
12,699,941.25
' 593,700,000.00
283,700,000.00
Reconstruction Finance Corporation^'
Secretary
Secretary
Minerals
Secretary
122,200,000.00
of Agriculture
of the Interior (Defense
Exploration Administration).
of the Treasury^'
2,084,000,00
15,000,000,00
Footnotes at end of table.
11, 1942; July 1, 1944.,
2, 1942
18, 1934, as amended.
^^149,500,000.00
12,869,042,727.60
Total bonds and notes
Net change in bonds and notes.
Other securities:
Department of the Army:
Guaranteed loans (World War II)
June
Department of Health, Education, and Welfare:
July
Student war loans
Department of the Interior:
Indian loans
.
'
June
Puerto Rico Reconstruction Administration (in liquidation):^^
Apr.
Certificates of Cafeteros de
Puerto Rico.
Loans
2,084,000.00
5,000,000.00
149,500,000,00
1,818,979,837.98
744,206,509.24
Borrowings from the U. S. Treasxiry.
Net repayments to "the U. S. Treasury.
Net repayments to the U. S. Treasury smd
transfer to the Secretary of the Treasury (Federal Civil Defense Act of 1950).
Net borrowings from the U. S. Treasxiry.
Do.
Transfer to General Services Administration.
Net borrowings from the U. S. Treasury.
Borrowings from -the U. S. Treasury and
transfer from the Defense Materials
Procurement Agency.
Transfer of $131,700,000 to the Secretary
of ' h Treasury, less/net borrowings of
te
$9,500,000 prior to j i date of transUe
fer.
Borrowing from 'the U. S. Treasury.
Borrowings from 'the U. S. Treasury.
Net borrowings from the U. S. Treasxiry,
including transfer frcmi the Reconstruction Finance Corporation.
1,074,773,328.74
Repayments.
5,168,139.08
787,522,07
88,144.10
10,862,871.41
738,702.87
5,413,379,00
3,227,496.00
7,582.00
8, 1935, as supplemented.
Repayments to the U. S. Treasxiry.
Borrowings from.the U. S. Treasury, and
transfer from the Reconstruction Finance Corporation.
Repayment to 'the U. S. Treasiury.
Borrowings from -the U. S. Treasury.
96,651,249.00
Sept. 8, 1950, as amended..
Export-Import Bank of Washington
General Services Administration ^^.
Net repayments to the U. S. Treasury.
Borrowings from the U. S. Treasxiry.
Net repayments and other deductions.
Do.
Repayments.
Net repayments and other deductions.
r
tn
TABLE 82. --Securities owned by the United States Government (other than World War I and World War II foreign government obligations ), June 30, 1954,
and changes during 1954--Continued
Security and issuing agent
Date of authorizing act,
order, or plan
Amoxmt owned
June 30, 1954
Net increase
during 1954
Net decrease
during 1954
Ul
Explanation of change
Other securities—Continued
Department of the Treasury:
Credit to the United Kingdom
Loan participation in lend-lease
liquidation.
Loans to the District of Columbia
Reconstruction and Development.
Subscriptions to the International
Monetary Fund.
Disaster loans, etc., revolving fund
(Farmers' Home Administration):
Crop, livestock, and commodity loans..
Farm Credit Administration:
Loans from Agricultural Marketing Act
revolving fund.
Farmers Home Administration:
Loans to aid agriculture
Federal Housing Administration:
Mortgage notes and contracts on sales
of acquired real estate.
Stock in r'ental and war housing corporations .
June 19, 1934
July 15, 1946
Executive Order No. 9726,
dated May 17, 1946.
June 2, 1950
Feb. 28, 1920, as amended
July 31, 1945
do
$27,546,310,97
3,614,313,340.50
3,139,957.30
1,900,000.00
5,759,000.00
635,000,000,00
$46,127,434,50
2,739,835,11
$1,150,000.00
X
s
2,750,000,000,00
H
O
Apr, 6, 1949
June 15, 1929, as amended
105,040,483.22
*n
50,040,904.38
3,616,848.28
267,801,60
Net repayments and other deductions.
tn
20 476,459,424.03
2,825,351.31
Net loans made.
Net mortgage notes and contracts acqxiired
43,937,505.33
6,526,917.37
do
473,200.00
20,400.00
55,719,524.13
5,792,948.97
Jxme 27, 1934, as amended
Net defaulted notes acquired.
t^i
Sept. 7, 1916, as amended, and
Reorganization Plan No. 21
of 1950.
Apr. 3, 1948, as amended, and
June 15, 1951.
'Veterans' re-use housing program
tn
Net stock acquired.
34,355,445.23
320,743,759.21
Net mortgages and notes repaid.
tn
Foreign Operations Administration:^° •
General Services Administration (Public
Works Administration, in liquidation):
Loans to States, municipalities, railroads, and others.
Housing and Home Finance Administrator:
Alaska housing program'loans
Community facilities service loans,...
Public Housing Administration:
Farm Security Administration .program,.
H
GO
July 1, 1918, Apr. 8, 1935,
and Aug. 14, 1946, as supplemented,
do
Federal Maritime Board and Maritime Administration:
Mortgages and notes acquired from sale
of vessels.
Repayment.
Repayments.
June 16, 1933, as amended
21 346,212,499.15
1,941,189.87
Net loans made.
886,000,00
85,613,000.00
Apr. 23, 1949
Oct. 14, 1940, as amended
Sept. 1, 1937, as amended
do
....do
9,942,283.56
44,516,227.93
95,938.50
3,919,449.82
191,497.89
9,272,284.41
979,000.00
1,186,307.52
22,268,483.06
12,438.50
Net repayments.
Net repayments and other deductions.
Net mortgage notes acquired.
Do.
Do.
>
Reconstruction Finance Corporation affiliate:
Assets held for the U. S. Treasury:22
Foreign loans and note
June 30, 1948
do
12,711,356.24
3,006,900,00
12,088,794.00
Net acquired less repayments on loans.
Rxiral Electrification Aciministration:
May 20, 1936, as amended
rural telephone service.
Secretary of the Treasury (Federal Civil
Defense Act of 1950) :^'^
Loans to aid in promoting civil defense
Small Business Administration:
23 72,823,897.03
8,225,166.64
Jan. 12, 1951; July 30, 1953..
2^^ 15,858.87
15,858.87
July 30, 1953, as amended
2,236,532.83
2,236,532.83
June 22, 1944, as araended
50,776,757.32
11,320,455.92
33,005.01
11,742.78
3,289,709.74
109,507.52
Net repaj-ments.
Do.'
Veterans' Administration:
Virgin Islands Corporation, The:
Loans to aid agriculture and indxistry..
Defense Production Act of 1950, as amended:
Departm.ent of the Army:
Jxme 30, 1949
Sept, 8, 1950, as amended
Net loans acquired.
Net loans purchased.
Department of the Navy:
do
3,087,400.99
....do
25 1,657,084.39
681,274.00
Total, other securities
268,712,151,000.50
118,229,106.90
15,373,874.64
102,855,232.26
Total, all securities
2''23,215,925,728.10
1,937,208,944.88
714,037,383.88
1,223,171,561.00
1,937,208,944.88
1,223,171,561.00
Department of the Treasury:^''
Loans to aid in promoting national
defense.
Less:
Face amount of above secxirities acquired by
Government corporations or agencies from
funds or by exchange for obligations:
Capital stock acquired by:
Housing and Home Finance Administrator .
Reconstruction Finance Corporation.
Paid-in sxirplus acquired by:
Housing and Home Finance Administrator .
2,031,786.50
Net repayments.
>
Cd
r
tn
20,000,000.00
1,000,000.00
1,000,000.00
2'''23,193,925,728.10
owned by the United States.
714,037,383.88
Amount due to the United States from the Central Branch Union Pacific R. R. on accoxmt of bonds issued (Pacific Railroad Aid Bonds Acts, approved July 1, 1862, July 2, 1864, and
May 7, 1878):
Principal
$1,600,000.00
Interest
1,404,205.45
Total
3,004,205.45
O^
Footnotes for table 82.
^ Excludes World War I funded and unfunded indebtedness of foreign governments, and
World War II indebtedness of foreign governments involving lend-lease articles and sur.plus property sales agreements.
2 This Corporation, which has been in liquidation by the Reconstruction Finance Corporation, and the fxmction of completing its liquidation were transferred to the
Federal National Mortgage Association, effective at the close of business June 30,
1954, pxirsuant to Reorganization Plan No. 2 of 1954.
• Corporation fxmctions, assets, and liabilities have been transferred for liquida^
tion to the Reconstruction Finance Corporation, and ownership of stock by the U. S,
Treasury consists of a stock certificate of $24,000,000 indorsed for $18,243,104.96,
representing payment by the Reconstruction Finance Corporation. This stock certificate
has not been canceled because there is no authority to do so.
* As of June 30, 1954, the capital stock and paid-in surplus of this' Corporation were
held by the Housing and Hcane Finance Administrator.
5 Pursuant to the act approved JxJ.y 30, 1953 (67 Stat. 230), the duty of ccanpleting
the liquidation of this Corporation and winding up its affairs was assumed by the
Secretary of the Treasury on Jxily 1, 1954.
6 Under Executive Order No. 9665, dated Dec. 27, 1945, the assets of this Corporation
were transferred to the Reconstruction Finance Corporation for collection or disposal.
Liquidation of these assets after June 30, 1954, is being continued under the direction
of the Secretary of the Treasxiry.
" The capital stock of this Corporation is held by the Reconstruction Finance Cor^
poration.
^ Exclusive of net payments from the U. S. Treasxiry, or transfer of assets authorized
by law, for which no formal receipts or other evidences of payment are held by the
Secretary of the Treasxiry in the following:
Stock corporations:
Inland Waterways Corporation
$12,298,327.85
Public Housing Administration
'.
222,009,473.13
Nonstock corporations:
Federal Prison Industries, Inc
4,946,738.51
Institute of Inter-American Affairs
15,591,838.26
Panama Canal Company
377,764,946.00
Reconstruction Finance Corporation affiliate:
Assets held for the U. S. Treasury.,
572,984,787,64
Tennessee Valley Authority
45,332,861.54
Virgin Islands Corporation, The
5,996,338.01
Total
1,256,925,310.94.
^ Represents net of advances by the U. S. Treasury of $7,518,000,000, less repayments
and refundings of $5,993,227,166, and cancellations of notes amounting to $956,772,834,
^° This Administration superseded the Mutual Security Agency, effective Aug. 1, 1953,
pxirsuant to Reorganization Plan No. 7 of 1953, and Executive Order No. 10476, of
Aue. 1, 1953.
^^ Includes $1,813,970.61 transferred from the Reconstruction Finance Corporation to
the Secretary of the Treasury (Federal Civil Defense Act of 1950), pursuant to the act
approved July 30, 1953 (67 Stat. 230).
^2 Figxire differs from that shown in tables 73, 74, and 75; see explemation in footnote .3 of tables 73 and 74.
^3 Figure differs from that shown in tables 73, 74, and 75; see explanation in footnote 4 of tables 73 and 74.
•• In accordance with the act approved July 30, 1953 (67 Stat. 230), the activities
'*
carried on pursuant to Section 409 of the Federal Civil Defense Act of 1950 (64 Stat.
1257), were transferred from the Reconstruction Finaince Corporation to the Secretary of
the Treasury as of Sept, 28, 1953.
•• The Defense Materials Procurement Agency was abolished, and its activities were
"5
transferred to the General Services Administration in accordance with Executive Ord.er
No. 10480, of Aug. 14, 1953.
•^6 Includes $283,700,000 transferred from the Defense Materials Procureraent Agency
(see footnote 15).
^ ^ Pxirsuant to the act approved July 30, 1953 (67 Stat. 230), and Executive Order
"
No. 10489, dated Sept. 26, 1953, the activities carried on by the Reconstruction Finance Corporation in accordance with Title III of the Defense Production Act of 1950, as
•amended (50 U.S.C. App. 2091-2094), were transferred to the Secretary of the Treasury,
effective at the close of business on Sept. 28, 1953.
1^ Includes $131,700,000 transferred from the Reconstruction Finance Corporation (see
footnote 17),
^^ In accordamce with the act approved Aug. 15, 1953 (67 Stat. 584), the Secretary of
the Interior was authorized and directed to start liquidation of the Adrainistration.
2° Excludes borrowings from the U. S. Treasury of $172,376,896.38 shown under bonds
and notes in the preceding part of this table. Fxmds borrowed frora the U. S. Treasury
and fxmds appropriated to Farmers' Home Administration are available for the Administration to carry on its activities.
21 Excludes borrovn.ngs from the U. S. Treasury of $1,197,267,609.58 shovm under bonds
and notes in the preceding part of this table. Fxmds borrowed from the U. S. Treasury
and funds appropriated to the Foreign Operations Administration are available for the
Administration to carry on its loan activities.
22 Pursuant to Reorganization Plan No. 2 of 1954, effective at the close of business
Jxme 30, 1954, the foreign loans amoxmting to $480,356.24 and other secxirities amounting to $3,000,000 were transferred to the Export-Import Bank of Washington for liqxiidation.
23 Excludes borrowings from the U. S. Treasury of $2,091,132,364.77 shown under bonds
and notes in the preceding part of this table. Fxmds borrowed from the U. S. Treasxiry
and fxmds appropriated to the Rural Electrification Administration are available for
the Administration to carry on its activities.
2*^ Excludes borrowings from the U. S. Treasxiry of $2,138,970.61 shown xmder bonds and
notes in the preceding part of this table. Funds borrowed from the U. S. Treasury and
earnings from operations are available for the Secretary of the Treasury to. carry on
activities pursuant to this.act.
25 Excludes borrowings from the U. S. Treasury of $149,500,000 shown under bonds and
notes in the preceding part of this table. Fxmds borrowed from the U. S. Treasury and
earnings from operations are available to carry on activities pursuant to this act, as
amended.
26 Reserves amoxmting to $163,908,931.09 have been established against these securities.
2 ' Includes loans to the District of Columbia of $1,900,000 and loans made pursuant
''
to the Defense Production Act of 1950, as amended (50 U.S.C. App. 2091-2094), of
$1,657,084.39, which are held by.the Department of the Treasury. The comparable amoxmts
as of June 30, 1953, were not included in this table in the 1953 annual report.
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TABLES
659
T A B L E 83»--Dividends, interest, and sinnilar payments received by the United States Treasury from
Government corporations and certain other business-type activities, fiscal year 1954
Agency and natxire of payment
Commodity Credit Corporation:
Interest on capital stock outstanding
Interest on borrowings from the U. S. Treasury
Export-Import Bank of Washington:
The Board of Directors declared a dividend on the Bank's capital stock outstsmding.
This dividend was paid during the fiscal year 1954 out of the net profit earned
during -the' fiscal year 1953
,
Interest on borrowings from the U. S. Treasury
Farmers' Home Administration, interest on borrowings from the U. S. Treasury
Federal Farm Mortgage Corporation, pursuant to the act approved July 28, 1953
(67 Stat. 222), all cash funds in excess of operating reqxiirements for the current
fiscal year are to be declared as dividends and paid into the U. S. Treasury
Federal Housing Administration, interest on appropriations and allocations
Federal intermediate credit banks, franchise tax..,
Federal Prison Industries, Inc., payment of earnings
Federal Savings and Loan Insurance Corporation, interest in lieu of dividends on
capital stock outstanding
Foreign Operations Administration, interest on borrowings frcam the U. S. Treasury^.......
Home Loan Bank Board, surplus of Home Owners' Loan Corporation (liquidated)
Housing and Home Finance Administrator:
Federal National Mortgage Association, interest on borrowings from the U. S. Treasury
Housing loans for educational institutions, interest on borrowings from the U. S.
Treasury
Prefabricated hoxising loans program, interest on borrowings from the U. S. Treasury..
Slum clearance program, interest on borrowings from the U. S. Treasxiry
Panama Csmal Company, interest on net direct inves'tment of the Goverimient in 'the
Corporation
Public Housing Administration (U. S. Housing Act), interest on borrowings from the
U. S. Treasury
Reconstruction Finance Corporation (in liquidation), interest on borrowings from the
U . S . Treasury2
Rural Electrification Administration, interest on borrowings from the U. S. Treasury....
Secretary of the Treasury (Federal Civil Defense Act of 1950), interest on borrowings
from the U. S. Treasury-^
Small Business Administration, interest on appropriations
Tennessee Valley Authority:
Receipts from power operations and other soxirces
Interest on borrowings from the U. S. Treasury
Veterans' Administration (veterans' direct loan program), interest on borrowings from
the U. S. Treasury
Virgin Islands Corporation, The, interest on appropriations and paid-in capital
Defense Production Act of 1950, as amended:
Defense Materials Procurement Agency, interest, on borrowings frcjm the U. S. Treasury^
Export-Import Bank of Washington, interest on borrowings from the U. S. Treasury.....
General Services Administration, interest on borrowings from the U. S. Treasury*
Reconstruction Finance Corporation, interest on borrowings frcam 'the U. S. Treasury'..
Secretary of the Interior (Defense Minerals Exploration Administration), interest
on borrowings from the U . S . Treasxiry
<
Secretary of the Treasury, interest on borrowings from the U. S. Treasury'
Total
$2,500,000.00
88,345,566.39
22,500,000.00.
28,144,443.68
3,664,395.08
7,000,000.00
•20,385,528.87
386,707.20
2,750,000.00
1,727,476.44
37,469,723.02
30,061.18
50,864,079.36
,896.16
324j
'252, 223.17
;
469,
,530.20
6,649;,425.81
,231.21
9,498j
4,167J,833.93
,868.06
39,690,
,005.97
17;
^A,,531.93
,976.78
19,676;
,256.56
682,
4,274,
,656.45
,529.20
86;
,313.07
2,060,
,582.43
160,
,529.31
3,003,
,908.40
1,153,
,994.28
197,
1,456 ,974.79
359,606,248.93
^ This Administration superseded the Mutual Security Agency, effective Aug. 1, 1953, pursxiant to Reorganization Plan No. 7 of 1953, and Executive Order No. 10476 of Aug. 1, 1953.
2 Pursuant to the act approved July 30, 1953 (67 Stat. 230), this Corporation was transferred to the
Secretary of the Treasury for liquidation, effective Jxily 1, 1954.
^ In accordance with the act approved Jxily 30, 1953 (67 Stat. 230),' the activities carried on pursuant to
Section 409 of the Federal Civil.Defense 4ct of 1950 (64 Stat. 1257), were transferred from the Reconstruction Finance Corporation to the Secretary of the Treasury on Sept. 28, 1953.
^ The Defense Materials Procurement Agency was abolished, and its activities were transferred to the General Services Administration in accordance with Executive Order No. 10480 of Aug. 14, 1953.
' Pursuant to the act approved July 30, 1953 (67 Stat. 230), and Executive Order No. 10489, dated Sept.
26, 1953, the activities carried on by the Reconstruction Finance Corporation in accordance with Title III
of the Defense Production Act of 1950, as amended (50 U.S.C. App. 2091-2094), were transferred to the Secretary of the Treasury, effective at the close of business on Sept. 28, 1953.
STOCK AND CIRCULATION OF MONEY IN THE UNITED STATES
o
TABLE 84. --Stock of money, money in the T r e a s u r y , in the F e d e r a l R e s e r v e Banks, and in circulation, by kinds, June 30, 1954
[In thousands of d o l l a r s , except per capita f i g u r e s ]
Money held in the Treasury
Money outside of the Treasury
In circulation^
Kind- of money
Gold
Gold certificates
Standard silver dollars
Silver bullion
Silver certifi cates
Treasxiry notes of 1890
Subsidiary silver
Minor coin
United States notes
Federal Reserve notes
Federal Reserve Bank notes
National bank notes
Total June 30, 1954
Stock of
money
Total
$21,927,003
3 $21,927,003
'' (21,273,989) ' ^ 18,422,952)
^
275,904
491,021
2,157,562
2,157,562
* (2,394,493)
^ (1,142)
54,708
1,275,666
3,407
434,675
2,165
346,681
59,213
26,543,177
765
183,005
144
70,616
53,429,405
24,480,870
Amoxmt held •
Reserve
as security
against
against gold United States
and silver
notes (and
certificates
Treasury
(and Treasury
notes of
notes of 1890)
1890)
$21,273,989
Held for
Federal
Reserve
Banks and
agents
All other
money
Total
Held by
Federal
Reserve
Banks and
agents
Amount
Per
capita2
$156,039
$496,974
37,830
$2,851,037
215,117
$2,815,556
3,584
$35,481
211,533
$0.22
1 30
2.394,494
1,142
1,220,958
431,268
344,516
26,483,963
182,240
70,472
259,478
56,046
12,515
24,292
1,099,358
1,964
467
2,135,016
1,142
1,164,912
418,754
320,224
25,384,606
180,277
70,005
13 15
54,708
3,407
2,165
59,213
764
144
238,074
2,157,562
156,039
3
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6 655,205
• 34,195,208
7
4,273,259
29,921,949
'^'($18,422,952)
23,669,625
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' (18,422,952)
^
.01
7.17
2 58
1,97
156 29
1.11
.43
184.23
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Comparative totals of money in
circxilation-^
Paper cxirrency of each denomination in circxilation-Jxme 30, 1954
Denomination
One dollar
Two dollars
Five dollars
Ten dollars
Twenty dollars
Fifty dollars
One hundred dollars...
Five hundred dollars..
One thousand dollars..
Five thousand dollars.
Ten thousand dollars..
Fractional parts
Gold cer- Silver certificates tificates
Treasury
notes of
1890
United
States
notes
$293
177
325
222
70
1
30
$5,153
67,051
237,807
6,625
2,528
499
601
454
506
2,135,016
$9,291
13,787
3,836
5,486
1,233
1,903
125
130
$1,175,394
2,831
828,732
127,148
650
154
91
7
1,142
321,224
Deduct:
Unknown, destroyed
Unassorted, held by Treasxiry Offices
and Federal Reserve Banks
Total.
Federal
Reserve
notes
$941,819
6,197,171
9,469,745
2,605,314
5,366,703
322,174
470,635
3,455
7,590
25,384,606
1,000.
Federal Re- National
Bank
serve Bank
notes
notes
.$1,500
• 342
2,810
14,625
40,109
43,682
77,209
$340
162
11,761
21,693
23,662
5,370
6,847
87
21
Per
capita2
182,680
70,563
023,254
376,773
550,551
658,856
456,965
323,954
473,099
3,580
7,720
63
Jxme 30, 1954
May 31, 1954
Mar 31, 1954
Nov. 30, 1953
June 30, 1953
Jxme 30, 1950
Jxme 30, 1945
Jxme 30, 1940
Jxme 30, 1935
June 30, 1930
June 30, 1925
Oct. 31, 1920
$29, 921,949
29, 870,422
S 29;707,297
5 30;807,116
30, 124,952
27, 156,290
26, 746,438
7, 847,501
5,567,093
521,988
815,208
.698,215
$184.23
184.17
183.65
191.40
r188.72
179.03
191.61
59.46
43.75
36.74
41.57
53.18
28,128,059
Mar. 31, 1917
June 30, 1914
Jan. 1, 1879
4,172,946
3,459,434
816,267
40.49
34.90
16.76
1,000
>
2,135,016
.320,224
25,384,606
28,126,750
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NOTE.—For a description of security held, see table 86, footnote 2,
^ Revised.
^ The raoney in circxilation includes any'paper currency held outside the continental
limits of the United States,
2 Based on Bureau of the Census estimates of popxilation.
^ Does/not include gold other than that held by the Treasury.
^ These amoxmts are not included in the total, since the gold or silver held as
security against gold and silver certificates and Treasury notes of 1890 is.included
under gold, standard silver dollars, and silver bullion, respectively.
' This total includes credits with the Treasurer of the United States payable in
gold certificates in (l) the Gold Certificate Fxmd - Board of Governors, Federal
Reserve System, in the amount of $17,561,547,209 and (2) the redemption fund for
Federal Reserve notes in the amoxmt of $861,405,136,
^ Includes $113,000,000 lawful money deposited as a reserve for postal savings
deposits.
^ The amoxmt of gold and silver certificates and Treasury notes of 1890 should
be deducted from this amoxmt before corabining with total money held in the Treasury
to arrive at the total amoxmt of money in the United States.
^ Lowest amoxmt since November 30, 1953.
^ Highest amoxmt to date.
TABLE 85---Stock of money, nnoney in the Treasury, in the Federal Reserve Banks, and in circulation, June 30, 1913-54
[In thousands of dollars, except per capita figxires]
hkjney held in the Treasury
June 30
1913
1920
1925
1930
Stock of
money2
Total3
Amount held
Reserve
as security
against
against gold
United
and silver
States notes •
certificates
(and
(and Treasury Treasury
notes of 1890) notes of 1890)
Money outside of the Treasxiry
In circulation
Held for
Federal
Reserve
Banks and
agents^
3,777,021
8,158,496
8,299,382
8,306,564
1,834,112
2,379,664
4,176,381
4,021,937
1,475,783
704,638
2,059,799
1,978,448
150,000
152,979
153,621
156,039
1935
1940'.
1945
1946
15,113,035
28,457,960
48,009,400
49,648,Oil
9,997,362
21,836,936
22,202,115
22,649,365
7,131,431
19,651,067
19,923,738
20,397,885
156,039
156,039
156,039
156,039
5,532,590
14,938,895 •
15,239,072
15,287,592
1947
1948
1949
1950
50,599,352
52,601,129
53,103,980
52,440,353
23,633,353
25,890,134
26,861,355
26,646,409
22,318,880
24,563,132
25,554,811
25,348,625
156,039
156,039
156,039
156,039
17,223,658
19,442,373
20,429,710
20,166,524
1951
1952
1953
1954
50,985,939
53,853,745
54,015,346
53,429,405
24,175,565
25,810,840
24,960,950
24,480,870
22,894,641
24,528,270
23,702,046
23,669,625
156,039
156,039
156,039
156,039
17,698,722
19,327,733
18,470,725
18,422,952
1,184,276
1,752,744
1,796,239
All other
money
Total
Held by
Federal
Reserve
Banks and
agents
Amount*
Per capita'
208,329
337,771
210,217
91,211
3,418,692
6,483,470
6,182,799
6,263,075
1,015,881
1,367,591
1,741,087
3,418,692
5,467,589
4,815,208
4,521,988
35.16
51.36
41.57
36.74
2,709,891
2,029,829
2,122,338
2,095,441
6,714,514
11,333,196
30,491,950
32,108,938
1,147,422
3,485,695
3,745,512
3,863,941
5,567,093
7,847,501
26,746,438
28,244,997
43.75
59 46
191.61
199.76
6 1,158,433
1,170,962
1,150,505
1,141,744
32,061,222
31,831,755
31,367,726
30,976,045
3,763,994
3,928,896
3,874,816
3,819,755
28,297,227
27,902,859
27,492,910
27,156,290
196 33
190.31
184 33
179.03
32,006,293
33,243,443
34,285,718
34,195,208
4,197,063
4,217,518
4,160,765
4,273,259
27,809,230
29,025,925
30,124,952
29,921,949
180.17
184.90
^ 188.72
184.23
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^ Revised.
^ Figures differ slightly from monthly circulation statements for following
reasons: (a) Beginning June 30, 1922, form of circulation statement was revised
so as ' o inculde in holdings of Federal Reserve Banks and agents, and hence in
t
S'tock of money, gold bullion and foreign gold coin held by Federal Reserve Banks
and agents, and to include in holdings of Federal Reserve Banks and agents, and
hence exclude from money in circulation, all forms of money held by Federal Reserve Banks and agents, whether as reserve against Federal Reserve notes or otherwise. For purposes of comparison, figures in this table for earlier years include
these changes. For full explanation of this revision, see 1922 annual report, p.
433. (b) The form of circulation statement was revised again beginning Dec. 31,
1927, so as to exclude earmarked gold coin from stock of money, and hence from
money in circulation; to include in holdings of Federal Reserve Banks and agents,
and hence in stock of money, gold held abroad for account of Federal Reserve Banks;
and to include in all categories, minor coin (1-cent piece and 5-cent piece). Beginning Dec. 31, 1927, circulation statement is dated for end of month instead of
beginning of succeeding month, as was practice theretofore, and figures on revised
basis for "Money held in the Treasury" are used. For purposes of comparison, figures in this table for earlier years include these changes. For explanation of
this revision, see 1928 annual reixjrt, pp. 70-71. For figxires for earlier years
from 1860 through 1934, see annual reports for 1947, pp. 478-481, for 1952, p.708,
1,124,884
1,126,530
1,102,865
• 655,205
^
and for 1953, p. 551. Changes, minor in amount, are made in some figures in the
Jime 30 circulation statements for use in these annual report tables.
^ Excludes gold and silver certificates and Treasury notes of 1890 outside Treasury. Beginning with 1934, excludes amount (gold certificates) held for Federal Reserve Banks and agents. These items are excludted since gold and silver held as
security against them are included. Composition of the s'tock of money is shown in
table 86.
• From 1934 to da-te, amount (gold certificates) held for Federal Reserve Banka
'
and agents is excluded from "total money in Treasury, see footnote 2.
* Composition of money in circulation is shown in table 87.
' Based on Bureau of Census estimated population for continental United States.
^ On February 26, 1947, gold in amount of $1,800,000,000 held for account of exchange stabilization fund was used as follows: (l) $687,500,000.11 was paid to International Monetary Fund; (2) $275,224,999.89 was transferred to gold certifica-te
fund, Board of Governors, Federal Reserve System; and (3) $837,275,000 was transferred - o general fxmd of Treasury (and included in this column until November 1953
t
see footnote 7 ) .
• On November 9, 1953, $500,000,000 of gold held in the general fund of the
^
Treasury was used to pxirchase from the Federal Reserve System a like amount of
public debt obligations which were retired.
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TABLE 86. --Stock of nnoney, by kinds, June 30, 1913-54^
[Dollars in thousandsl
Silver
bullion^
Standard
silver
dollars^
Subsidiary
silver
Minor
coin
United
States
notes^
Federal
Reserve
notes^
Federal
Reserve
Bank notes^
National
bank
notes^
Total^
Percentage
of gold to
total money
$568,273
268,857
522,061
539,960
$175,196
258,855
283,472
310,978
$56,951
92,479'
104,004
126,001
$346,681
346,681
346,681
346,681
$3,405,877
1,942,240
1,746,501
$201,226
7,176
3,260
$759,158
719,038
733,366
698,317
$3,777,021
8,158,496
8,299,382
8,306,564
49.53
35.12
52.54
54.59
$313,309
1,353,162
1,520,295
1,909,099
545,642
547,078
493,943
493,580
312,416
402,261
825,798
878,958
133,040
173,909
303,539
325,978
346,681
346,681
346,681
346,681
3,492,854
5,481,778
23,650,975
24,839,323
84,354
22,809
533,979
469,343
769,096
167,190
121,215
115,114
15,113,035
28,457,960
48,009,400
49,648,011
60.32 .
70.15
42.10
40.83
21,266,490
23,532,460
24,466,324
24,230,720
1,923,913
1,955,072
1,988,559
2,022,835
493,462
493,100
492,857
492,583
922,656
952,299
989,456
1,001,574
348,889
359,506
371,956
378,463
346,681
346,681
346,681
346,681
24,780,495
24,503,331
24,040,979
23,602,680
409,443
358,321
313,333
277,202
107,323
100,358
93,835
87,615
50,599,352
52,601,129
53,103,980
52,440,353
42.03
44.74
46.07
46.21
21,755,888
23,346,498
22,462,818
21,927,003
2,057,227
2,093,041
2,126,273
2,157,562
492,249
491,897
491,518
491,021
1,041,946
1,117,889
1,193,757
1,275,666
388,646
402,702
418,680
434,675
346,681
346,681
346,681
346,681
24,574,934
25,753,570
26,698,400
26,543,177
245,987
223,100
202,747
183,005
82,382
78,367
74,472
70,616
50,985,939
53,853,745
54,015,346
53,429,405
42.67
43.35
41.59
41.04
1913.
1920.
1925.
1930.
$1,870,762
2,865,482
4,360,382
4,534,866
1935.
1940.
1945.
1946.
9,115,643
19,963,091
20,212,973
20,269,934
1947.
1948.
1949.
1950.
1951.
1952.
1953.
1954.
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^ See table 85, footnote 1. For figures for earlier years from i860, see
annual reports for 1947, pp. 482 - 484, for 1952, p. 709, and for 1953, p. 552.
^ Part of gold and silver included in stock of money is held as reserve against
other kinds of money, as follows: (1) As reserve for United States notes and
Treasury notes of 1890—gold bullion (gold coin and bullion prior to gold conservation actions of 1933 and 1934) varying in amount from $150,000,000 to
$156,039,431 during years included in this table; (2) also as security fgr Treasury notes of 1890 (these notes are being canceled and retired on receipt)—an
equal dollar amount in standard silver dollars; (3) as security for outstanding
silver certificates—silver in bullion and standard dollars of monetary yalue
equal to face amount of such silver certificates; and (4) as security for gold
certificates—gold bullion (gold coin and bullion before gold actions of 1933 and
1934) of value at legal standard eqxial to face amount of such gold certificates.
Federal Reserve notes are secured by deposit by Federal Reserve Banks with Federal
Reserve agents of like amount of gold certificates (gold prior to actions of 1933
and 1934) or of gold certificates and such discounted or purchased paper as. are
eligible,under terms of Federal Reserve Act, as amended, or (from Feb. 27, 1932) of
direct obligations of United States. Federal Reserve Banks must maintain reserves
in gold certificates (gold for 1933 and prior years) of at least 25 percent (40
percent prior to passage of act of June 12, 1945) including redemption fund which
must be deposited vrith Treasurer of United States, against Federal Reserve notes
in actual circulation ("Gold certificates" as herein used for 1934 and subsequent
years inclxide credits vdth Treasurer of United States payable in gold certificates). Federal Reserve notes are obligations of United States and first lien on
all assets of issuing Federal Reserve Bank. Federal Reserve Bank notes at time of
issuance were secured by direct obligations of United States or commercial paper;
however, lawful money has been deposited with Treasurer of United States for their
redemption and they are in process of retirement. National bank notes at issuance
were secured by direct obligations of United States; lawful money has been deposited vrith Treasurer for their redemption and they are being retired.
^ Totals involve duplication to extent that United States notes and Federal Reserve notes, included in full, are in part secxired by gold, also included in fiill.
Gold certificates, silver certificates, and Treasury notes of 1890 have been excluded, however, since they are complete duplications of eqxial amounts of gold or
silver held as security therefor and included in 'totals.
T A B L E 87. - - M o n e y in c i r c u l a t i o n , by k i n d s , J u n e 30,
1913-54^
[ I n thoxisands of d o l l a r s ]
Gold certificates ^
1913.
1920.
1925.
1930.
1935.
1940.
1945.
1946.
1947.
1948.
1949.
1950.
1951..
1952.
1953.
1954.
608,401
474,822
402,297
357,236
(')
(')
(')
(')
(')
(')
Standard
silver
dollars
Silver certificates^
Treasxiry
n o t e s of
1890 2
4^
United
States
notes ^
Subsidiary
silver
Federal
Reserve
notes ^
Federal Reserve Bank
notes^
National
bank
notes^
1,003,998
259,007
1,004,823
994,841
72,127
76,749
54,289
38,629
469,129
97,606
382,780
386,915
2,657
1,656
1,387
1,260
154,458
248,863
262,009
281,231
54,954
90,958
100,307
117,436
337,215
278,144
282,578
288,389
3,064,742
1,636,108
1,402,066
185,431
6,921
3,206
715,754
689,608
681,709
650,779
3,418,692
5,467,589
4,815,208
4,521,988
117,167
66,793
. 52,084
50,223
32,308
46,020
125,178
140,319
701,474
1,581,662
1,650,689
2,025,178
1,182
1,163
1,150
1,149
295,773
384,187
788,283
843,122
125,125
168,977
291,996
316,994
285,417
247,887
322,587
316,743
3,222,913
5,163,284
22,867,459
23,973,006
81,470
22,373
527,001
464,315
704,263
165,155
120,012
113,948
5,567,093
7,847,501
26,746,438
28,244,997
47,794
45,158
42,665
40,772
148,452
156,340
163,894
170,185
2,060,728
2,060,869
2,060,852
2,177,251
1,147
1,146
1,145
1,145
875,971
918,691
939,568
964,709
331,039
346,112
355,316
360,886
320,403
321,485
318,688
320,781
23,999,004
23,600,323
23,209,437
22,760,285
406,260
353,499
308,821
273,788
106,429
99,235
92,524
86,488
28,297,227
27,902,859
27,492,910
27,156,290
39,070
37,855
36,596
35,481
180,013
191,306
202,424
211,533
2,092,174
2,087,811
2,121,511
2,135,016
1,145
1,145
1,143
1,142
1,019,824
1,092,891
1,150,498
1,164,912
378,350
393,482
412,952
418,754
318,173
318,330
317,702
320,224
23,456,018
24,605,158
2.5,608,669
25,384,606
243,261
220,584
200,054
180,277
81,202
77,364
73,403
70,005
27,809,230
29,025,925
30,124,952
29,921,949
X
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^ See table 85, footnote 1. For figxires for earlier years from i860, see annual reports for 1947, pp. 485-487, for 1952, p. 710, and for 1953, p. 553.
2 For description of reserves held against various kinds of money, see table 86, footnote 2.
^ Gold Reserve Act of 1934, which was culmination of gold actions of 1933, vested in United States title to all gold coin and gold bullion. Gold coin was withdrawn
from circulation and formed into bars. Gold coin ($287,000,000) shown on Treasury records as being then outstanding was dropped from monthly circulation statement as
of Jan 31, 1934.
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TABLE 88. --Location of gold, silver bullion at monetary value, and coin held in the Treasury on June 30, 1954
[Dollars in thousands]
Location
United States raints:
Denver
Philadelphia
San Francisco
United States assay offices:
New York
Spattlp
Bullion depository. Fort Knox
Treasurer of U. S. (Gash Division)., Federal Reserve Banks, etc
Total
Gold
Silver bullion at
monetary value
Standard
silver dollars
Subsidiary
silver coin
Minor coin
$28,020
18,586
6,364
1 $612
, 1,448
^
1 1,122
71,725
1,588
150
205
20
275,904
54,708
^ 3,407
$5,875,866
2,467
591,931
$159,981
186,902
802,967
$2,560
143,191
12,743
2,971,736
1,532
12,483,415
56
687,212
• 45,685
320,500
21,927,003
2,157,562
• Includes minor metals and alloys in process of manxifacture into coins.
^
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666
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 89. - - P a p e r currency i >sued and redeemed during the fiscal year 1954, and outstanding June 30,
1954, by classes and denominations
Outstanding June 30, 1954
Outside
Treasury
and Federal
Reserve
Banks
Issued during
1954
Redeemed
during 1954
$1,090,650
$309,900
$2,815,555,600
$35,481,449
$1,637,268,000
163,300,000
1,621,040,000
163,300,000
2,929
7,411,693,350
19,741,955
3,856,635
13,440,411
2,164,947
1,282
59,213,285
764,644
143,865
259,477,820
24,292,366
1,099,357,720
1,963,670
466,700
2,135,015,623
320,223,703
1,142,371
25,384,605,540
180,276,583
70,005,059
9,057,038,000
9,220,725,519
76,038,334
4,201,113,876
28,126,750,328
1,072,668,000
21,320,000
1,364,075,000
3,012,550,000
2,705,940,000
346,700,000
497,800,000
13,170,000
12,650,000
715,000
9,450,000
1,072,044,735
21,426,304
1,405,545,490
3,146,822,620
2,743,208,520
328,558,350
419,761,000
27,861,500
44,732,000
1,015,000
. 9,750,000
9,316,582
415,742
10,630,280
15,309,210
22,187,240
7,401,850
8,413,200
1,059,000
997,000
214,564,035
12,884,516
164,536,445
374,700,670
387,425,060
82,534,950
113,174,700
8,912,500
18,266,000
2,775,000
11,240,000
2,810,100,000
.1,182;680,479
70; 563,174
2,023;254,365
6,376;773,192
9,550; 550,736
2,658;856,315
5,456; 965,420
323; 953,750
473; 098,500
3;580,000
720,000.
9,057,038,000
9,220,725,519
76,038,334
In
Treasury
In Federal
Reserve
Banks
CLASS
Gold certificates
Silver certificates
United States notes
Treasury notes of 1890......
Federal Reserve notes
Federal Reserve Bank notes.
National bank notes
Total.
7,256,470,000
DENOMINATION
$1
$2
15
$10
$20
$50
$100
$500
$1,000
$5,000
$10,000
$100,000
Fractional parts.
Unassorted
62,627
308,230
4,201,113,876
Deduct:
Unknovm, destroyed.
Unassor'ted
28,128,058,558
1,000,000
308,230
9,057,038,000
9,220,725,519
4,201,113,876
28,126,750,328
667
TABLES
CUSTOMS STATISTICS
TABLE 90.--Sunnnnary of custonns collections and e x p e n d i t u r e s , fiscal y e a r 1954
[On basis of the accounts of the Bureau of Customs]
Collections^
Customs collections:
Duties on imports
Miscellaneous collections
(fines, penalties, etc.)
Total....
Amount
$562,020,619
4,589,701
566,610,320 J
Appropriations and expenditures
Appropriation for salaries.and
expenses, Bureauof Customs
Transferred from Department of
Commerce for export control
Amount
$40,500,000
Total
Collections for other departments,
bureaus, etc.:
Other governmental agencies
Total for others
234,574,349
96,043
234,670,392 |
801,280,712
Expenditxires, obligations incurred
by:
Collectors of customs
Agency Service (investigations)
Appraisers of merchandise
Chief chemists
Customs Information Exchange
Export control
985,000
41,485,000
29,843,644
1,922,493
4,764,900
716,732
986,516
248,025
1,675,949
985,000
Total obligations incurred..
41,143,259
Balance of appropriations...
341,741
Appropriation "Refunds and
Expenditures for refunds, drawback,
and minor payments of a similar
nature
^ Excludes duties and sale of i n s u l a r property for Puerto Rico, but includes other Puerto Rican
collections.
20,481,971
TABLE 9 1 . - - C u s t o m s collections and payments, by d i s t r i c t s , fiscal year 1954
Alaska
•
Arizona
,
Buffalo
Chicago
Colorado
Connecticut
Dakota
Duluth and Superior....,
El Paso
Florida
Galveston
Georgia
Hawaii
Indiana
,
Kentucky
,
Laredo
•
Los Angeles
Maine and New Hampshire,
Maryland
,
Massachusetts
Michigan
Minnesota
Mobile
Montana and Idaho
Nev/ O r l e a n s
Nev/ York
North Carolina
Ohio
Oregon
Philadelphia.
Pittsburgh
Rhode Island
Rochester
Sabine
St. Lawrence
St. Louis
San Diego
San Francisco
South Carolina
Tennessee
,
,
,
,
,
,
$87 519
3,222,786
10,141, 538
16,413, 752
247, 182
1,594, 762
3,490, 344
2,502, 073
1,963, 211
8,447,018
10,083,977
3,1'04,160
1,770,369
1,129,880
1,343,024
4,623,660
16,337, 386
2,411,504
13,925,008
43,469,002
19,266,469
961,260
2,297,466
2,378,282
19,325,004
254,298,677
8,031,719
7,695,841
2,081,849
40,201,237
2,907,193
1,842,370
1,510,448
161,571
8,224,180
6,612,269
1,108,904
14,622,445
2,800, 132
381,897
Internal
Revenue
Service
$463
407
1,046,138
18,948,744
356,613
1,369,294
276
2,090
42,909
3,581,432
3,668,229
206,274
544,470
5,986,844
425,666
264,608
11,837,559
1,372
3,683,068
4,978,627
39,506,091
1,152,441
124,091
329
1,608,892
76,862,060
15
4,792,003
1,059,756
3,253,319
297,349
414,843
1,398,160
5,610
25,174,878
1,736,283
10,518
9,541,941
180,898
211,577
00
Payments
Collections
Duties and
miscellaneous
customs
collections
Excessive
duties and
other
refunds
Other
collections
$59
i,196
2,865
1,080
121
83
644
3,181
1,278
455
233
392
289
12,423
3,840
268
1,438
1,586
1,510
252
381
103
1,806
12,342
87
4,353
612
3,020
864
852
1,077
530
1,589
552
20,782
6,960
116
205
$88,041
3,224,389
11,190,541
35,363,576
603,795
2,964,944
3,490,741
2,504,246
2,006,764
12,031,631
13,753,484
3,310,889
2,315,072
'7,117,116
1,768,979
4,900,691
28,178,785
2,413,144
17,609,514
48,449,215
58,774,070
2,113,953
2,421,938
. 2,378,714
20,935,702
331,173,079
8,031,821
12,492,197
3,142,217
43,457,576
3,205,406
2,258,065
2,909,685
167,711
33,400,647
8,349,104
1,140,204
24,171,346
2,981,146
593,679
$3,169
51,343
311,207
279,980
2,908
19,143
37,606
8,707
50,284
96,746
376,976
11,125
83,034
4,783
4,837
28,993
397,659
45,222
139,544
1,188,357
426,465
21,447
29,100
12,210
440,459
6,682,876
61,501
106,008
55,450
950,433
29,977
110,267
5,556
809
36,199
48,913
18,487
402,657
9,107
26,393
Expenses
(net obligations)
$4,706
223,361
158
91,395
4,917
49,964
26,877
201
164,978
41
22,776
58
79,502
92,090
245,943
5,856
9
236,271
4,096,941
88,670
877,921
71,858
695,649
. 1,301
40,303
6,672
3,552
190,035
146,661
""23,"665
$173,148
343,581
1,089,700
881,754
39,440
123,448
421,201
251,319
862,801
1,135,610
556,446
203,765
494,389
84,474
47,310
1,002,402
1,075,884
856,415
1,278,038'
2,379,624
. 1,531,132
177,411
186,952
216,310
1,361,644
13,477,519
113,048
433,005
285,991
1,608,385
109,484
118,574
155,496
96,903
806,137
189,695
516,378
1,671,740
91,514
54,873
Cost to
collect
$100
$196.66
10.66
9.74
2.49
6.53
4.16
12.07
10.04
42.99
9.44
4.05
6.15
21.36
1.19
2.67
20.45
• 3.82
35.49
7.26
4.91
2.60
8.39
7.72.
9.09
6.50
4.07
1.41
3.47
9.10
3.70
3.42
5.25 .
5.34
57.78
2.41
2.27
. 45.29
6.92
3.07
9.24
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Washington
•
Total
Collections deposited to the credit of Government of Puerto Rico
Grand total
798,470
508,320
1,260,196
123,315
4,122,754
8,792,627
8,230,222
2,261,920
78,484
106,945
395,410
13,102
9,419,491
470,209
288
405
1,627
2,126
1,285
4,518,452
8,806,134
17,651,340
2,734,255
79,769
106,945
25,118
74,562
175,971
21,362
357
846
1,744
475
16,653
57,268
566,610,320
4,711,318
234,574,349
96,043
801,280,712
4,711,318
12,914,153
7,567,818
41,143,258
5.13
571,321,638
234,574,349
96,043
805,992,030
12,914,153
7,567,818
41,143,258
3 5.13
17.67
5.77
7.14
4.51
2 1,950,017
• Customs receipts, on the basis of reports of collecting officers, are credited to the districts in which the collections are made. Receipts in various districts do not indicate
'
•
the tax bxirden of the respective districts, since the taxes may be borne eventually by persons in other districts. Customs duties and sale of insular government property for Puerto
Rico ($4,711,318) are deposited to"the credit of the Government of Puerto Rico.
2 Bureau and foreign.
^ If export control expenditures of $985,000 be excluded, thus limiting costs to strictly customs enforcement and providing a total comparable v/ith that for the previous year, the
cost of collecting $100 of revenue was only $5.01 in 1954.
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I ' A B L E 9 2 , - - V a l u e of d u t i a b l e a n d t a x a b l e i m p o r t s f o r c o n s u m p t i o n a n d e s t i m a t e d d u t i e s and t a x e s c o l l e c t e d by t a r i f f s c h e d u l e s , f i s c a l y e a r s 1953 a n d 1954
Value of dutiable and taxable
imports for consumption
Tariff schedule
1953
1. Chemicals, oils, and paints
2. Earths, earthenware and glassware
3. Metals and manxif actures...
4.. Wood and manufactures'.
5 . Sugar, m o l a s s e s , and manuf actu;res
6 . Tobacco and manxafactures
7 . A g r i c x i l t u r a l p r o d u c t s and p r o v i s i o n s . .
8 . - S p i r l t a , v i n e s , and o t h e r beverages
9 . Cotton manufactures
1 0 . F l a x , heii]{>, j u t e , and manufactxjres
1 1 . Wool and manxifa c t u r e s
1 2 . S i l k manxifactxires
1 3 . Manufactxires of rayon and o t h e r s y n t h e t i c t e x t i l e s .
1 4 . Pxilp, p a p e r , and b c x ^ k s . . . . . ; . . .
15. S u n d r i e s . . . .
F r e e - l i s t commodities t a x a b l e xmder. Revenxie Act of 1932
and sxibsequent a c t s . ^ . .
...^........
D u t i a b l e under S e c . 406, T a r i f f l e t of 1930, e t c
Total
,
i
1954
Estimated duties and
import taxes^
1953
-J
O
Percentage increase,
or decrease ( )
Duty
1954
$183,886,843
129,446,819
1,133,931,885
236,429,714
382,571,870
83,841,186
810,749,199
134,128,991
4S,029,909
144,920,725
424,507,844
30,272,337
34,088,431
46; 219,536
316,0.95,953
$173,562,926
136,702,976
1,089,219,342
221,614,049
378,657,032
83 744,802
756,758,357
156,184,932
57,591,003
114,216,979
280,825,623
26,885,260
20 792,968
46,281,766
298,389,012
$24,350,677
30,414,382
133,803,118
12,086,296
37,031,234
16,946,689
78,072,162
31,539,659
10,557,694
8,913,259
98,865,775
9,317,938
6,442,410
4,499,888
62,305,978
$24,728,501
31,239,486
126,812,291
13,516,933
36,579,213
16,959,780
68,761,632
36,905,016
12,224,994
8,293,709
60,897,458
8>101,786
4,746,837
4>471,699
61,057,609
-5.6
5.6
-3.9
-6.3
-1.0
-0.1
-6.7
16.4
19.9
-21.2
-33.8
-11.2
-39.0
0.1
-5.6
1.6
2.7
-5.2.
11.8
-1.2
.1
-11.9
17. Q
15.8
-7.0
-38.4
-13.1
-25.7
-.6
-2.0
' 693,640,136
^ 5,250,117
783,572,685
3,919,344
^ 37,683,936
r 1,849,506
29,092,751
1,386,647
13.0
-25.4
-22.8
-25.0
4,838,011,495
4,628,919,056
604,680,601
545,776,342
-9.7
CD
X
tri
X
g
Hi;
^n.
H
X
fri
vn
9
vn
H
O
^ Revised.
^ Taxes collected.on dutiable commodities under the revenue acts and the Sxigar Act of 1937 are included in appropriate schedules.
^ Does not inclxide $40,391,110 which represents the value of imports on inforiaal entries and informal mail entries for which the duties collected were not shown by
tariff schedules. See also fcjotnote to table 96.
tn
tn
>
T A B L E 93.--Value of dutiable imports and amounts of duties collected at specific, ad valorem, and compound rates, fiscal years 1939--54
[ In millions of dollars ]
Specific
Ad valorem
Compound
Average ad valorem equivalent
Percent of total value
Compound
Ad va- Comlorem pound
Fiscal year
Value
1939.
1940.
1941.
1942.
1943.
1944.
1945.
1946.
1947.
1948.
1949.
1950.
1951.
1952.
1953.
1954.
820
920
1,011
1,166
1,032
1,249
1,199
1,592
2,096
2,489
2,839
3,064
4,919
4,368
4,838
4,669
Duty
312
340
385
386
330
421
343
429
476
402
374
415
615
541
605
546
Value
Duty
Value
Duty
Value
502
611
769
894
827
1,015
910
1,103
1,508
1,878
2,138
2,338
3,511
3,002
3,281
3,258
206
245
315
319
288
372
283
323
333
271
233
264
346
294
320
286
268
265
205
226
174
201
251
430
513
530
589
616
1,202
1,171
1,306
1,192
78
71
50
45
28
36
45
83
115
105
109
117
207
191
214
197
50
44
37
46
31
33
38
59
75
81
112
110
206
195
251
219
Specific Ad valorem
Duty
28
24
20
22
14
13
15
23
28
26
32
34
62
56
70
62
38
37
38
33
32
34
29
27
23
16
13
14
13
12
13
12
41
40
41
36
35
37
31
29
22
14
11
11
10
10
10
9
57
56
53
49
45
39
38
39
39
32
28
31
30
28
28
28
Specific
61
66
76
77
80
81
76
69
72
76
75
76
71
69
68
70
Percent of total duty
Specific
66
72
82
83
87
88
83
75
70
68
63
64
56
55
53
52
Ad valorem
25
21
13
12
9
9
13
19
24
26
29
28
34
35
35
36
Compound
10
10
12
11
ttn
-4
672
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE94 --Estimated customs duties, value of imports entered for consumption, and ratio of duties
to value of dutiable imports and to value of all i m p o r t s , calendar y e a r s 1943-53 and monthly January
1953-June 1954^
[Dollars in thousands]
Calendar year and month
1943
1944
1945
1946
1947
1948
1949
,. ..
1950
1951
1952
1953
1953—January...
February..
March
April
May
June
July
August....
September,
October...
November..
December..
1954—January...
February..
March
April
May
June......
Estimated
duties
(including
taxes on
imports)
$391,540
368,234
382,212
482,860
427,679
404,778
364,618
522,337
591,261
570,062
584,350
48,743
43,904
55,040
52,507
49,336
49,586
49,732
45,833
50,460
49,446
46,602
43,162
39,117
40,313
42,122
49,958
42,363
46,668
Value of imports
entered for consumption
$3,390,101
3,887,490
4,098,101
4,824,902
5,666,321
7,092,032
6,591,640
8,743,082
, 10,817,341
10,747,497
10,777,426
1 913,348
'
r 847,313
r 992,081
r 997,483
r 890,946
^ 923,982
892,610
835,452
928,130
822,015
838,233
895,833
836,512
815,706
873,400
943,057
829,731
971,607
$1,207,301
1,164,561
1,350,487
1,889,228
2,213,764
2,908,976
2,709,716
3,967,246
4,851,594
4,486,364
4,856,275
407,681
' 361,936
444,139
436,477
411,622
414,130
413,803
394,054
416,674
396,474
384,570
374,715
339,679
348,214
374,938
406,228
' 377,429
. 402,141
Ratio of
dutiable
to total
Percent
35.61
29.96
32.95
39.16
39.07
41.02
41.11
45.38
44.85
41.74
45.06
44.64
42.72
44.77
43.76
46.20
44.82
46.36
47.17
44.89
48.23
45.88
41.84
40.61
42.69
42.93
43.08
45.49
4i.39
Ratio of duties to
value of
Dutiable
imports
32.43
31.62
28.30
25.56
19.32
13.91
-13.46'
13.17
12.19
12.71
12.03
11.96
12.13
12.39
12.03
11.99
11.97
12.02
11.63
12.11
12.47
12.12
11.52
11.52
11.58
11.23
12.30
11.22
11.60
Total
imports
11.55
9.47
9.33
10.00
7.55
5.71
5.53
5.97
^ 5.30
5.42
5.34
5.18
5.55
5.26
5.54
5.37
5.57
5.49
5.44
6.02
5.56
4.82
4.68
4.94
4.82
5.30
5,11
4.80
r Revised.
• Amount of customs duties is calculated on basis of reports of Bureau of the Census showing quantity and
'
•
value of merchandise imported. Figures back to 1867 can be found in annual reports for 1930, p. 523; 1932,
p. 382; and corresponding tables in subsequent reports.
TABLE 95. - - E s t i m a t e d c u s t o m s duties, value of dutiable i m p o r t s , and r a tio of e s t i m a t e d duties to value of dutiable i m p o r t s , by tariff s c h e d u l e s ,
and monthly J a n u a r y 1953-June 19541
[Dollars in thousands]
Calendar year
and riionth
Estimated
duties
Value of
dutiable
imports
Ratio of
duties to
imports
Schedule 1.—Chemicals,
oils, and paints
1943
1944
1945
1946
1947
1948
1949
1950...
1951
1952
1953
1953—January...
February..
March
April
May
June
July
August...;
September.
October..,
November..
December..
1954—January..,
February.,
March....,
April
May
June
Estimated
duties
Value of
dutiable
imports
Ratio of
duties to
imports
Estimated
duties
Schedule 2.—Earths, earthenware, and glassware
$7,634
8,037
10,051
13,622
16,578
14,252
10,635
23,133
25,.749
20,709'
26,558
$41,480
54,122
71,859
90,198
119,282
114,896
77,975
149,773
200,441
163,944.
192,725
Percent
18.40
14.85
13.99
15.10
13.90
12.40
13.64
15.45
12.85
12.63
13.78
$4,071
3,103
3,884
9,546
13,643
15,321
16,220
21,935
31,663
29,569
32,073
1,998
1,888
2,268
2,607
2,341
2,477
2,343
2,023
2,470
2,117
1,889
2,138
1,583
1,867
1,686
2,364
1,982
2,267
16,072
13,628
18,277
19,754
16,704
17,508
16,291
14,042
16,394
14,662
13,280
16,113
11,212
13,290
12,517
16,522
13,784
15,456
12.43
13.85
12.41
13.20
14.01
14.15
14.38
14.41
15.07
14.44
14.22
13.27
14.12
14.05
13.47
14.31
14.38
14.67
2,206
2,094
2,670
2,873
2,616
2,704
2,779
2,775
2,969
3,152
2,866
2,369
1,992
2,083
2,216
3,042
2,391
2,605
$18,399
10,765
14,760
30,941
44,308
60,710
59,496
82,737
120,317
119,734
138,249
10,144
8,986
11,253
13,142
11,205
12,351
12,293
11,966
12,165
12,492
11,422
10,831
9,304
9,638
10,676
12,436 .
11,182
12,299
Percent
22.13
28.83
26.31 .
30.85
30.79
25.24
27.26
26.51
26.32
24.70
23.20
21.75
23.30
23.73
21.86
23.35
21.89
22.61
23.19
24.41
25.23
25.09
21.87
21.41
21.61
20.76
24.46
21.38
21.18
Value of
dutiable
imports
Ratio of
duties to
imports
c a l e n d a r y e a r s 1943-53
Estimated
duties
Value of
dutiable
imports
Ratio of
duties to
imports
Schedule A.-—Wood and
manufactures
Schedule 3.—Metals
and manufactures
$31,434
28,919
38,496
50,628
51,079
53,421
48,513
85,475
108,145
109,905
140,408
$120,054
117,660
150,019
197,984
246,376
348,465
337,977
658,793
927,602
896,048
1,204,829
Percent
26.18
24.58
25.66
25.57
20.73
15.33
14.35
12.97
11.66
12.27
11.65
$1,642
2,297
2,867
4,191
3,073
4,624
4,564
8,514
9,866
10,134
13,520
$27,852
37,299
44,563
54,610
42,112
127,501
97,541
237,168
211,560
214,917
237,326
10,659
9,944
13,308
12,581
12,427
12,986
12,983
11,067
11,587
11,869
11,091
9,906
8,653
9,409
9,248
10,170
9,637
11,192
94,573
87,312
112,342
110,157
109,233
114,317
113,071
99,533
95,833
97,215
88,286
82,959
74,846
78,281
82,814
85,144
89,175
102,061
11.27
11.39
11.85
11.42
11.38
11.36
11.48
11.12
12.09
12.21
12.56
11.94
11.56
12.02
11.17
11.94
9.92
10.97
1,090
968
1,190
1,183
1,208
1,266
1,136
1,077
1,055
1,161
1,106
1,081
1,038
1,080
1,043
1,376
1,146
1,219
16,956
17,334
20,913
19,545
20,938
23,698
21,866
21,089
20,941
19,671
17,923
16,452
12,433
15,825
18,747
18,889
16,644
21,134
Percent
5.90
6.16
6.43
7.67
7.30
3.63
4.68
3.59
4.66
4.72
5.70
6.43
5.58
5.69
6.05
5.77
5.34
5.20
5.11
5.04
5.90
6.17
6.57
8.35
6.82
5.56
7.28
6.89
5.77
>
00
Footnotes at end of t a b l e .
00
TABLE 95. - - E s t i m a t e d customs duties, value of dutiable innports
and r a tio of e s t i m a t e d duties to value of dutiable i m p o r t s , by tariff s c h e d u l e s , c a l e n d a r y e a r s 1943-53 and
monthly J a n u a r y 1953-June 1954^--Continued
4^
[Dollars in thousands]
Calendar year
and month
Estimated
duties
Value of
dutiable
imports
Ratio of
duties to
imports
Schedule 5.—Sugar, molasses, and
manufactures
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
;..,
,
,
,
,
,
$55,730
29,096
. 10,430
10,167
67,280
34,565
37,206
37,635
34,957
36,044
35,845
1953—January...
February..
March
April
May
June
July
August
September,
October..,
November..
December..
1954—January...
February..
March
April
May
June
3,093
2,518
4>328
4,240
3,708
3,288
3^481
3,961
3,125
1,491
1,284
1,327
2,956
3,360
4,141
4,213
3,656
3,584
$194,349
101,071
35,418
42,524
436,404
336,010
345,663
359,948
368,691
384,937
372,383
Percent
28.68
28.79
29.45
23.91
15.42
10.29
10.76
10.46
9.48
9.36
9.63
32,066
26,264
43,602
43,555
36,115
34,601
35,989
40,383
32,375
16,991
r4,v865
15,577
34,877
32,345
38,829
42,470
38,516
35,440
9.65
9.59
9.93
9.73
10.27
9.50
9.67
9.81
9.65
8.78
8.64
8.52
8.48
10.39
10.66
9.92
9.49
10.11
Estimated
duties
Value of
dutiable
imports
Ratio of
duties to
imports
Schedule 6.—Tobacco and manufactures
$23,044
24,882
28,253
24,916
25,757
23,784
23,522
19,534
20,484
16,758
17,000
1,467
1,325
1,462
1,302
1,395
1,483
1,233
1,527
1,622
1,525
1,412
1,248
1,309
1,286
1,461
1,461
1,401
1,475
$43,209
65,930
82,278
89,337
92,367
79,943
75,278
78,654
87,831
82,517
84,481
7,241
6,629
7,337
6,560
6,913
7,489
6,109
7,783
7,975
7,579
6,938
5,929
6,352
6,315
7,184
7,329
6,851
7,401
Percent
53.33
37.74
34.34
27.89
27.89
29.75
31.25
24.84
23.32
20.31
20.12
20.26
19.99
19.93
19.85
20.18
19.80
20.18
.19.62
20.34
20.12
20.35
21.05
20.61
20.36
20.34
19.93
20.45
19.93
Estimated
duties
Value of
dutiable
imports
Ratio of
duties to
imports
Schedule 7.—Agricultural products
and provisions
Estimated
duties
Value of
dutiable
imports
Ratio of
duties to
• imports
Schedule 8.—Spirits, wines,
other beverages
$40,256
37,584
42,542
43,405
36,347
56,729
51,914
66,673
71,369
75,081
71,218
$248,557
266,284
314,005
354,680
311,800
5?9,066
489,055
623,196
785,114
772,956
775,318
Percent
16.20
14.11
13.55
12.24
11.66
10.72
10.62
10.70
9.09
9.71
9.19
$61,563
85,671
45,340
50,520
31,718
23,834
24,145
29,284
31,456
30,025
35,899
$83,094
115,304
67,923
95,150
67,305
86,434
89,594
116,485
125,405
127,552
152,422
Percent
74.09
74.30
66.75
53.10
47.13
27.57
26.95
25.14
25.08
23.54
23.55
7,232
6,100
8,031
6,942
5,173
4,532
4,899
4,800
5,602
5,314
6,634
5,.957
5,467
5,841
6,549
7,169
5,420
5,109
70,911
57,369
67,429
71,151
58,198
53,059
59,851
60,207
70,100
62,165
77,103
67,775
51,775
57,201
56,791
72,567
62,453
58,772
10.20
10.63
11.91
9.76
8.89
8.54
8.19
7.97
7.99
8.55
8.60
8.79
10.56
10.21
11.53
9.88
8.68
8.69
1,893
2,044
2,801
2,443
2,729
2,645
2,720
2,404
3,382
4,800
4,391
3,647
2,133
2,335
2,527
2,970
2,616
2,980
8,183
8,401
11,732
10,564
11,396
11,235
11,264
10,270
14,356
19,459
19,144
16,417
9,076
9,588
10,499
12,449
11,204
12,458
23.13
24.33
23.87
23.13
23.95
23.54
24.15
23.41
23.56
24.67
22.94
22.21
23.50
24.35
24.07
23.86
23.35
23.92
H
O
tn
o
s
Estimated
duties
Calendar year
and month
Value of
dutiable
iraports
Ratio of
duties to
imports
Schedule 9.—Cotton manufactures
1943
1944
1945
•
1946
1947
1948
1949
1950
1951
1952
1953
,
1953—January..,
February..
March....,
April.
May
,
June
,
July
August...
September
October..
November..
December.,
1954—January..
February..
March....
April
May
June
,
$2,707
1,900
4,533
5,453
4,921
6,224
5,376
9,742
10,875
8,981
12,329
$8,946
6,709
26,392
23,451
15,986
26,079
22,510
40,999
47,661
40,445
57,206
884
827
1,080
1,035
960
1,025
966
956
1,218
. 1,217
1,127
1,033
883
936
766
1,314
892
916
3,911
3,503
4,754
4,844
4,470
4,727
4,551
4,608
5,759
5,838
5,364
4,878
4,033
4,154
3,422
6,129
4,361
4,494
Estimated
duties
Value of
dutiable
imports
Ratio of
duties to
imports
Schedule 10.—Flax, hemp, j u t e , and
manxif actxires
Percent
Estimated
duties
Value of
dutiable
imports
Ratio of
duties to Estimated
duties
imports
Schedule 11.—Wool and manufac;tures
Value of
dutiable
imports
Ratio of
duties to
imports
Schedule 12.—Silk manufactures
Percent
Percent
30.26
28.32
17.18
23.25
30.78
23.87
23.88
23.76
22.82
22.21
21.55
$4,857
2,252
3,982
15,394
13,878
10,000
7,035
9,279
11,098
8,364
8,565
$40,635
10,047
17,863
106,202
149,880
173,155
141,656
144,843
184,027
162,200
124,147
Percent
11.95
22.41
22.29
14.50
9.26
5.77
4.97
6.41
6.03
5.16
6.90
$134,360
114,379
144,039
167,759
95,072
81,410
58,040
94,294
103,170
103,623
75,769
$218,316
179,016
229,513
276,042
199,090
291,730
239,329
394,178
721,552
461,864
339,238
61.54
63.89
62.76
60.77
47.75
27.91
24.25
23.91
14.30
22.44
22.34
$209
307
927
2,459
5,272
6,258
5,670
8,953
9,672
9,077
8,972
$438
598
1,928
5,159
10,930
20,398
21,483
29,272
31,687
29,324
29,678
47.72
51.34
48.08
47.66
48.23
30.68
26.40
30.59
30.52
30.95
30.23
22.60
23.61
22.72
21.37
21.48
21.68
21.23
20.75
21.15
20.85
21.01
21.18
21.89
22.53
22.38
21.44
20.45
20.38
372
731
847
755
635
603
602
587
711
759
734
729
890
698
690
753
557
583
14,013
11,385
12,214
11,026
9,388
8,964
8,781
8,372
9,464
10,629
10,010
9,902
8,556
10,210
11,418
10,263
8,755
7,858
6.22
6.42
6.93
6.85
6.76
6.73
6.86
7.01
7.51
7.14
7.33
7.36
10.40
6.84
6.04
7.34
6.36
7.42
7,751
6,804
6,712
7,282
7,107
7,145
6,791
5,377
6,127
5,624
4,673
4,376
4,121
3,415
4,007
5,528
4,948
5,911
35,454
31,467
30,028
32,921
30,401
30,926
29,174
24,552
26,857
25,549
21,547
20,362
20,628
16,666
20,305
25,701
22,413
27,071
21.86
21.62
22.35
22.12
23.38
23.10
23.28
21.90
22.81
22.01
21.69
21.49
19.98
20.49
19.73
21.51
22.08
21.84
887
651
653
576
526
595
755
892
896
919
811
811
603
550
517
512
399
437
2,834
2,112
2,210
1,985
1,789
1,990
2,479
2,951
2,967
3,065
2,614
2,683
1,982
ly853
1,711
1,770
1,362
1,448
31.30
30.82
29.55
29.02
29.40
29.90
30.46
30.23
30.20
29.98
31.03
30.23
30.42
29.68
30.22
28.93
29.. 30
30.18 •
r
tn
Footnotes at end of table.
ON
-J
TABLE 9 5 . - - E s t i m a t e d c u s t o m s d u t i e s , value of dutiable i m p o r t s , and r a t i o of e s t i m a t e d duties to value of dutiable i m p o r t s , by tariff s c h e d u l e s , c a l e n d a r y e a r s 1943-53 and
monthly J a n u a r y 1953-June 1954i--Continued
[Dollars in thousands]
Estimated
duties
Value of
dutiable
imports
Ratio of
duties to
imports
Estimated
duties
Value of
dutiable
imports
Ratio of
duties to
imports
Estimated
duties
Value of
dutiable
imports
Ratio of
duties to
imports
Calendar year
and month .
Schedule 13.—Manufactures of rayon or
other synthetic textiles
,
,
,
,
$113
198
1,252
5,341
4,623
6,744
1,706
7,877
9,296
6,112
6,270
$219
362
2,529
15,819
15,686
28,136
7,233
35,209
49,146
34,563
31,833
Percent
51.60
54.70
49.51
33.76
29.47
23.97
23.59
22.37
18.92
17.68
19.70
1953—January...
February..
March.....
A p r i l — ..
May
June
,
July
August....
September.
October..,
Noveraber.,
December.,
1954—January...
February.,
March....,
April
May
,
June
,
497
559
816
733
515
660
631
496
416
325
291
333
313
380
351
455
328
429
2,602
2,870
4,544
4,262
2,603
3,326
3,328
2,498
1,889
1,333
1,251
1,328
1,025
1,452
1,464
2,024
1,363
1,838
19.10
19.48
17.96
17.20
19.78
19.84
18.96
19.86
22.02
24.38
23.26
25.08
30.54
26.17
23.98
22.48
24.06
23.34
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
,
,
Schedule 14.—Pulp, paper, and books
$1,029
1,038
1,260
1,980
3,186
3,442
2,199
2,691
3,673
3,677
4,712
367
370
451
455
376
419
418
355
353
410
361
377
332
323
' 358
457
333
395
Estimated
duties
Value of
dutiable
imports
Ratio of
duties to
imports
Free-list commodities taxable under
the Revenue Act of 1932 and subsequent acts^ dutiable under Section
466, Tariff Act of 1930, etc.
Schedule 15.—Sundries
$7,432
7,711
8,773
15,692
23,304
29,803
21,443
27,144
39,231
38,649
48,841
Percent
13.85
13.46
14.36
12.62
13.67
11.54
10.26
9.91
9.36
9.51
9.65
$17,457
21,069
33,008
60,854
39,468
45,419
43,374
61,370
58,832
57,135
63,863
$115,815
118,006
170,234
334,444
207,728
267,551
225,844
338,043
336,008
294,740
316,276
Percent
15.07
17.85
19.39
18.20
19.00
16.98
19.21
18.15
17.51
19.38
20.19
$5,163
7,502
11,347
16,626
15,784
18,750
24,499
35,947
50,956
44,868
31,350
$38,506
73,677
112,430
156,996
231,207
389,100
457,636
650,803
615,319
661,974
751,322
Percent
13.41
10.18
10.09
10.59
6.83
4.82
5.35
5.52
8.28
6.78
4.17
3,694
3,790
4,680
4,665
3,916
4,377
4,343
3,736
3,791
4,310
3,630
3,910
3,395
3,281
3,572
4,710
3,436
4,169
9.94
9.76
9.64
9.75
9.60
9.57
9.62
9.50
9.31
9.51
9.94
9.64
9.78
9.84
10.02
9.70
9.69
9.47
5,086
4,710
5,514
4,900
4,729
5,105
5,496
5,272
6,174
6,268
5,506
5,103
4,231
4,319
3,767
5,618
4,299
5,004
25,525
24,536
28,333
25,484
24,488
26,096
26,609
24,887
29,143
30,037
25,571
25,567
21,020
21,234
19,292
26,998
22,906
25,124
19.93
19.20
19.46
19.23
19.31
19.56
20.65
21.18
21.19
20.87
21.53
19.96
20.12
20.34
19.53
20.81
18.77
19.92
2,762
2,372
2,908
2,601
2,891
2,654
2,499
2,266
2,752
2,494
2,425
2,726
2,613
2,432
2,796
2,554
2,359
2,562
63,504
56,350
64,492
56,863
63,866
59,466
57,805
57,176
66,667
65,479
65,622
74,033
69,162
66,880
75,696
60,830
63,025
65,117
4.35
4.21
4.51
4.57
4.53
4.46
4.32
3.96
4.13
3.81
3.70
3.68
3.78
3.64
3.69
4.20
3.74
3.93
•' Araount of customs duties is calculated on basis of reports of Bureau of the Census, shov/ing quantity and value of merchandise imported. Total estimated duties and total value
'
of dutiable imports will be found in table 96. For figures back to 1890 see annual reports for 1930, p. 525; 1932, p. 383; and corresponding tables in subsequent reports.
^ Taxes collected on dutiable commodities under revenue acts and Sugar Act of 1937 are included in appropriate schedules.
-J
ON
X
vn
X
H
O
H
X
vn
O
tn
>
GO
677
TABLES
TABLE 9 6 . - - V a l u e of dutiable imports for consumption and estimated duties collected, by countries, fiscal y e a r s 1953 and 1954
Percentage
increase, or
decrease (-)
Value
North America:
Canada and Newfoundland...,
Cuba
,
Central American countries,
Dominican Republic
',
.
Haiti
.'..,
Jamaica
,
Mexico
,
Netherlands Antilles
,
Trinidad and Tobago
,
Other
Total North America...,
South America:
Argentina
Bolivia
Brazil
Chile
Colombia
Ecuador
Paraguay
Peru
Surinam
Uruguay
Venezuela
Other
$993,526,915
392,649,387
8,154,331
16,514,536
3,093,616
7,017,503
196,945,742
99,607,665
4,382,893
2,276,754
Duty
$962,540,500
380,905,356
8,691,173
15,432,479
2,117,766
14,076,052
140,334,129
101,267,328
3,214,096
2,395,091
$64,022,533
39,994,654
844,128
1,580,561
318,271
634,985
21,979,430
•4,898,324
345,498
170,918
$62,716,456
39,867,061
674,817
1,200,869
228,472
1,022,367
15,584,254
3,083,086
218,781
164,564
-3.1
-3.0
6.6
-6.6
-31.5
100.6
-28.7
1.7
-26.7
5.2
-2.0
- .3
-20.1
-24.0
-28.2
61.0
-29.1
-37.1
-36.7
-3.7
1,724,169,342 1,630,973,970
134,789,302
124,760,727
-5.4
-7.4
,
,
,
,
,
,
,
,
,,,
,
,
,
129,854,778
1,957,837
40,261,855
9,053,393
39,025,507
5,480,159
6,182,020
39,590,489
17,480,787
77,843,897
329,687,390
2,391,731
74,667,431
7,337,033
36,092,247
5,326,555
40,867,668
5,144,092
3,137,792
54,725,155
18,581,613
31,780,183
388,869,494
2,176,614
24,038,411
140,628
3,252,698
1,864,981
1,891,367
439,550
753,629
4,059,429
1,370,796
18,031,087
17,869,955
155,537
13,027,914
589,531
2,958,099
465,918
1,406,182
382,435
237,938
5,258,959
1,458,501
6,510,959
13,498,257
146,584
-42.5
274.8
.-10.4
-41.2
4.7
-6.1
-49.2
38.2
6.3
-59.2
18.0
-9.0
-45.8
319.2
-9.1
-75.0
-25.7
-13.0
-68.4
29.6
6.4
-63.9
-24.5
-5.8
Total South America...,
698,809,843
668,705,877
73,868,068
45,941,277
-4.3
-37.8
27,031,821
168,908,642
743,866
26,568,567
7,552,843
140,263,891
196,500,364
17,326,438
1,877,087
7,079,676
4,865,203
132,370,628
93,659,441
35,770,024
13,013,261
15,105,468
56,784,010
35,267,631
139,255,949
43,225,748
370,749,311
1,887,738
24,481,164
1,044,341
27,427,770
149,121,197
2,235,423
35,601,347
11,800,838
131,279,601
209,730,515
18,222,563
1,094,507
7,650,045
2,542,887
122,920,510
119,856,062
32,539,909
14,686,880
17,366,502
48,318,962
32,284,110
137,114,216
40,757,995
365,001,490
1,346,985
19,723,714
1,236,023
3,880,365
18,916,578
191,713
2,495,471
1,007,132
24,421,184
34,203,646
' 2,889,233
494,023
802,568
627,245
26,485,214
8,485,029
2,981,488
1,062,063
3,403,092
10,047,606
4,790,059
39,546,005
9,648,353
69,663,425
224,110
2,329,964
441,903
4,464,941
17,163,260
638,276
2,657,863
1,487,858
23,274,258
35,572,493
3,112,121
260,729
800,146
'381,311
24,786,845
10,116,191
2,602,820
1,190,725
4,125,546
8,609,731
4,090,968
37,500,172
9,423,591
67,597,042
155,569
2,367,140
447,690
1.5
-11.7
200.5
34.0
56.2
-6.4
6.7
5.2
-41.7
8.1
-47.7
-7.1
28.0
-9.0
12.9
15.0
-14.9
-8.5
-1.5
-5.7
-1.6
-28.7
-19.4
18.4
15.1
-9.3
232.9
6.5
47.7
-4.7
'4.0
7.7
-47.2
-.3
-39.2
-6.4
19.2
-12.7
12.1
21.2
-14.3
-14.6
-5.2
-2.3
-3.0
-30.6
1.6
1.3
1,561,333,112
1,549,860,051
269,037,469
262,827,286
-.7
122,535,142
1,177,279
1,910,919
6,230,915
7,687,589
161,236,634
21,669,805
11,449,923
7,586,606
10,615,962
195,645,077
20,145,684
314,657
2,284,516
3,741,265
6,331,802
7,763,122
126,357,745
1,137,240
3,080,575
495,170
8,612,153
121,473,445
30,863,003
13,504,714
8,151,662
12,192,570
192,332,894
29,421,099
6,638,785
1,361,641
3,543,055
3,263,528
5,123,249
9,802,799
142,830
537,521
667,585
2,284,330
9,251,345
1,833,380
1,678,109
1,028,609
1,134,003
50,079,855
2,614,295
27,789
584,733
657,534
985,774
734,769
7,689,648
141,960
814,680
116,903
2,262,407
7,528,619
2,010,355
1,839,528
971,906
1,294,214
50,934,774
3,571,711
486,642
493,987
542,326
586,022
588,175
3.1
-3.4
61.2
-93.1
12.0
-24.7
42.4
17.9
7.4
14.9
-1.7
46.0
2,009.8
-40.4
-5.3
-48.5
-34.0
-21.6
-.6
51.6
-82.5
-1.0
-18.6
9.7
9.6
-5.5
14.1
1.7
36.6
1,651.2
-15.5
-17.5
-40.6
-20.0
588,326,897
567,552,528
84,045,260
81,873,857
-3.5
-2.6
Europe:
Austria
Belgium
Czechoslovakia
Denmark
Finland
France
Germany
Greece
Hungary.
Iceland
Ireland
Italy
Netherlands
Norway
Poland
Portugal.'
Spain.}
Swbden
Switserland
Turkey
United Kingdom
U.S.S.R
Yugoslavia
Other
•.
.
,
,
;.,
Total Europe
Asia:
Arabia Peninsula States....
British Malaya
Burma
China and Manchuria
Hong Kong
India
Indonesia
Iran
Iraq
Israel and Palestine
Japan
Korea.
Outer Mongolia
Syria
Taiwan
Thailand
Other
Total Asia
678
1954 REPORT OF THE SECIIETARY OF THE TREASIIRY
TABLE 96.--Value of dutiable imports for consumption and estimated duties collected, by countries, f i s cal y e a r s 1.953 and 1954--Continued
Percentage
increase, or
decrease (-)
Duty
Value
Country
1953
Oceania:
Australia
$107,067,320
47,459,526
840,545
155,367,391
Other
Africa:
Anglo-Egyptian S u d a n . . . . . . . . .
British East Africa
Egypt
Gold Coast..,^^.
Union of South Africa
Other
Total Africa
Grand t o t a l .
1,659,264
2,735,499
2,389,594
2,191,779
29,390,813
6,413,719
11,903,215
3,247,210
3,966,610
661,208
41,952,189
3,493,810
1954
1953
Value
1954
$93,052,271 $18,841,540
20,424,480 11,752,993
57,635
848,838
114,325,589 30,652,168
$13,534,027
4,466,406
63,195
18,063,628
94,736
188,337
146,693
127,809
151,068
393,497
194,506
116,217
2,163,391
1,552,484
525,679
593,206
713,400
659,932
1,629,462
1,699,486
197,489
176,199
117,849
167,536
5,955,798
6,140,301
398,263
494,561 .
110,004,910
119,474,851 12,288,334
12,309,565
4,838,011,495 ^4,650,892,866 604,680,601 545,776,340
2,921,802
2,030,381
4,561,198
1,691,960
18,724,188
6,488,626
13,003,986
3,282,000
5,829,653
1,138,451
56,040,964
3,761,642
Duty
-28.2
-62.0
-13.1
-57.0
1.0
-26.4
-41.1
76.1
-25.8
90.9
-22.8
-36.3
1.2
9.2
1.1
47.0
72.2
33.6
7.7
98.8
-12.9
160.5
-40.2
-28.2
12.8
-7.5
4.3
10.8
42.2
3.1
24 2
9.6
8.6
.2
-3.9
-9 7
^ Beginning with April 1954, no distribution was made by countries of the value of imports having a value
of $250, or l e s s , covered by informal entries and informal mail e n t r i e s . For the period'July 1, 1953, to
March 31, 1954, the value of such merchandise aggregated $21,973,810. Therefore, the t o t a l value of imports
in t h i s table exceeds that shown in table 92 by the above amoxmt.
TABLE 97.--Merchandise entries by number, fiscal y e a r s 1953 and 1954
Type
1953
Consumption entries
Warehouse and rewarehouse entries
Warehouse withdrawals
Mail entries
Baggage entries
Informal entries
•.
Appraisement entries
All other
'
Total
909,114
72,300
310,100
647,552
1,853,703
432,646
10,720
647,798
4,883,933
1954
863,701
66,763
307,778
524,852
1,951,075
428,349
7,875
749,632
4,900,025
Percentage
Increase, or
decrease (-)
-5.0
-.7
-18.9
5.2
-1.0
-26.5
15.7
.3
TABLE 9 8 . - - V e h i c l e s and persons entering the United States by number, fiscal y e a r s 1953 and 1954^
Kind of entrant
1953
1954
Percentage
increase, or
decrease (-)
Vehicles:
Undocumented vessels
Ferries
.*
Freight cars
Aircraft
Other vehicles
Passengers by:
Ferries
Aircraft
Other vehicles
Pedestrians
^ Excludes San. Juan and the Virgin Islands.
27,149,015
49,464
21,994
134,382
25,797
2,418,190
95,920
1,038,860
28,564,058
48,499
21,085
122,964
24,311
2,330,777
99,906
971,584
80,278,349
864,625
210,807
2,357,576
1,412,219
1,562,413
7,130,725
24,100,503
117,917,217
79,209,175
845,424
75,184
2,526,971
1,375,583
1,693,070
6,283,609
22,065,010
114,074,026
5.2
-2.0
-4.1
-8.5
-5.8
-3.6
4.2
-6.5
-1.3
-2.2
-64.3
7.2
-2.6
8.4
-11.9
-8.4
-3.3
679
TABLES
TABLE 99 --Airplanes and airplane p a s s e n g e r s entering the United States by number, fiscal years 1953
and 1954
Percentage
increase, or .
decrease (-)
Airplane passengers
Airplanes
Maine and New Hampshire,
Vermont
Massachusetts
St. Lawrence
Rochester
Buffalo
New York
Philadelphia
Maryland
Norfolk
Florida
New Orleans
Galveston
Laredo
El Paso
San Diego
Nogales
Los Angeles
Washington.
Alaska
Hawaii
Montana and Idaho
Dakota
Minnesota
Duluth and Superior.'....
Michigan
,.
Chicago
Cleveland
;
Other
550
1,845
7,812
733
507
2,465
16,688
195
927
446
23,316
1,437
565
3,940
2,287
1,612
2,596
1,820
4,691
2,197
7,410
1,952
1,325
349
1,622
1,935
918
2,634
1,146
95,920
Total
719
1,897
10,113
650
546
2,875
16,169
432
1,076
1,401
24,321
1,591
Passengers
486
1,742
2,298
1,191
2,954
1,746
1,435
13,914
108,709
1)866
7,046
32,484
489,758
844
16,738
7,249
382,848
30,780
15,076
60,783
8,564
4,289
11,967
36,593
59,310
13,454
152,804
15,168
14,651
3,218
3,766
3,747
27,668
23,668
14,016
3,820
16,784
121,077
1,617
8,032
43,299
556,616
1,108
19,517
9,712
396,402
30,214
14,321
64,156
3,082
4,334
2,920
29,669
65,220
14,110
165,612
10,918
16,087
4,215
3,795
5,376
34,443
28,532
18,082
30.7
2.8
29.5
-11.3
7.7
16.6
-3.1
121.5
16.1
214.1
4.3
10.7
11.3
7.3
-48.0
.4
-49.0
7.5
14.9
-16.7
-15.1
-11.0
13.4
39.3
7.4
18.8
29.7
12.1
52.4
166.2
20.6
11.4
-13.4
14.0
33.3
13.7
31.3
16.6
34.0
3.5
-1.8
-5.0
5.5
-64.0
1.0
-75.6
-18.9
10.0
4.9
8.4
-28.0
9.8
31.0
.8
43.5
24.5
20.6
29.0
99,906
1,562,413
1,693,070
4.2
8.4
629
4,229
1,190
1,618
1,325
1,956
5,392
1,830
6,291
1,737
1,502
T A B L E 100.--Drawback transactions, fiscal years 1953 and 1954
Transactions
1953
1954
Percentage
increase, or
decrease (-)
Certificates of importation issued
Drawback allowed:
Manufactured from imported or substituted mercliandise..;
Duty paid on merchandise exported from continuous
Merchandise which did not conform to sample specifications and returned to customs custody and exported..
Imported materials used in construction and equipment
of vessels built for foreigners
Internal revenue refund on accoxmt of domes-tic alcohol
Total
Number
13,590
174,234
2,686
6,954
15,885
4,574
Amount
$6,050,348.60
Amount
$7,191,062.24
18.9
159,503.40
Notices of ladine
Number
12,286
143,098
2,796
7,163
13,258
3,851
30,802.89
-80.7
187,871.19
294,003.95
56.5
10.6
21.8
-3.9
-2.9
19.8
18.8
4,028.76
6,397,723.19
856,091.74
7,519,897.84
646,324.14
17.5
-24.5
7,253,814.93
8,166,221.98
12.6
680
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 10 1.--Principal commodities on •which drawback was paid, fiscal y e a r s 1953 and 1954
Commodity
Watch movements and parts
Lead ore, matte, pigs
Tobacco, xmmanufactur-ed
Sugar
Petroleum, crude
Aluminum
Zinc ore, blocks, and manxif a c t u r e s . . .
Machinery and parts
Automobiles and aircraft parts
Copper
Cotton cloth
;
Rayon and other synthetic textiles...
Txmgsten ore and powder
Iron and steel scrap
Bauxite
Manganese
Steel mill products
Paper and manxif actures
Chemicals '.
Flax and hemp yarn
Tires and tubes,* rubber and synthetic
Coal tar products
Barley
;
Nickel
,
Burlap
Magnesite
Carpets and rugs
Nuts and preparations
Quicksilver
,
Electrical raachinery
Wool
Precious stones
1953
1954
$395,721
649,972
745,998
475,346
500,091
323,360
308,502
40,393
87,046
193,112
409,830
82,034
223,962
54,994
7,128
112,498
42,725
117,340
93,868
3,061
14,707
206,713
16,782
32,592
47,218
56,091
40,603
20,637
37,091
10,307
104,344
21,779
Percentage
increase, or
decrease (-)
$990,981
666,357
629,667
553,432
388,083
366,904
333,116
294,890
281,995
220,242
195,149
194,164
164,757
164,227
135,967
114,816
106,499
98,674
90,590
89,897
62,033
45,980
45,692
47,425
43,718
40,506
40,289
32,404
29,795
29,682
27,44024,063
150.42
2.5
-15.6
16.4
-22.4
13.5
8.0
630.1
224.0
14.0
-52.4
136.7
-26.4
198.6
1,807.5
2.1
149.3
-15.9
-3.5
2,836.9
321.8
-77.8
172.3
45.5
-7.4
-27.8
-.8
57.0
-19.9
188.0
-73.7
10.5
T A B L E 102.--Seizures for violations of customs laws, fiscal years 1953 and 1954
Percentage
increase, or
decrease (-)
1953
Automobiles and trucks:
Number-''
Value
Aircraft:
Number-'Value
Boats:
Number-'
Value
Narcotics:
Number
Value
Liquors:
Number
'
Gallons
Value
Prohibited articles (obscene, lottery, etc.)
Number
Value.
Other seizures:
Number
Value: Cameras
Edibles and farm products
Furs—skins and manufactures
Guns and ammunition
Jewelry, including gems
Livestock
Tobacco and manxifac-txires
Watches and parts
Wearing apparel
Miscellaneous
Total value of other seizxires
Grand total:
Number-'Value
1954
^ 579
$672,525
515
$543,714
-11.1
-19.2
8
$567,500
4
$22,750
-50.0
-96.0
36
$18,218,130
35
$12,980,236
-2.8
-28.8
1,007
$239,064
1,013
$146,029
.6
-38.9
3,424
4,694
$121,412
3,876
17,459
$216,332
13.2
272.0
78.2
1,641
$57,072
1,856.
$36,924
6,432
5,897
-8.3
$45,390
1,862,J 98
4,550
32,953
211,512
109,991
23,845
18,996
75,141
1,113,425
3,498,701
$23,166
1,178,732
10,390
56,126
592,756
1,086,256
11,059
46,258
81,344
1,938,429
5,024,516
-49.0
-36.7
123.4
70.3
180.2
887.6
-53.6
143.5
8.3
74.1
43.6
12,504
$23,374,404
12,642
$18,970,501
1.1
-18.9
Revised.
• Total nxunber of seizures does not include number of automobiles, trucks, aircraft, and boats seized
'
since these are seized frequently in connection with seizvu-es of liquor, narcotics, etc.
13.1
-35.3
681
TABLES
TABLE 103. - - S e i z u r e s for violations of c u s t o m s laws, classified according to agencies i>articipating,
fiscal year 1954
. Joint
seizures by
Customs and
other
agencies
Seizures by
customs
officers
Seiziu-es by
other
agencies
334
$274,403
30
$28,712
35
$25,215
399
$328,330
97
$197,969
Seizures
13
. $15,740
6
$1,675
116
$215,384
Total
Automobiles:
Value
Trucks:
Value
Aircraft:
4
$22,750
4
$22,750;
Boats:
Number •
'
Va lue
Narcotics:
Value
Prohibited articles:
Nxunber
Value
Other seizures:
Value
Total seizures:
Number ^
Value
4
$9,780
3
$3,220,000
35
$12,980,236
10
$3,494
42
$7,853
1,013
$146,029
3,845
17,388
$214,782
20
56
$1,221
11
15
$329
3,876
17,459
$216,332
1,845
$29,052
5
$7,440
6
$432.
5,613
$5,001,369
Value
Liquors:
28
$9,750,456
961
$134,682
.
209
$8,620
75
$14,527
5,897
$5,024,516
12,264
$15,625,463
244
$75,007
134
$3,270,031
12,642
$18,970,501
1,856
. $36 924
^ Total nxunber of seizures does not include number of automobiles, trucks, a i r c r a f t , a n d boats seized ;
these are seized frequently in connection with seizures of 'liquor, n a r c o t i c s , e t c .
TABLE 104.--Investigative and patrol a c t i v i t i e s , fiscal y e a r s 1953 and 1954
Percentage
increase, or
decrease ( )
Investigations of violations of customs laws:
Undervaluation
Marking violations
Baggage violations
Diamond and jewelry smuggling
Narcotic smxiggling
Other smuggling
Touring permits
Navigation, aircraft, and vehicle violations.
Prohibited importations
Other investigations:
Alleged erroneous customs procedxire
Drav/back
Classification and market value
Application for customhouse brokers' licenses
Application for bonded truckmen's licenses...
Petitions for relief from additional duty....
Personnel
Pilferage of merchandise
Export control
Miscellaneous
Examination of customhouse brokers' records..
Cases.of cooperation with other agencies.....
2,071
86
944
729
2,760
1,214
1,968
1,425
1,913
74
692
698
3,140
1,377
1,121
1,008
51
-7.6
-14.0
-26.7
-4.3
13.8
• 13.4
-43.0
-29.3
-42.7
197
863
789
138
132
636
754
251
1,200
1,530
348
1,762
129
804
781
126
192
616
1,043
198
768
1,515
572
2,300
-34.5
-6.8
-1.0
-8.7
45.5
-3.2
38.3
-21.1
-36.0
. -1.0
64.4
30.6
682
1954 REPORT OF THE SECRETARY OF THE TREASURY
FEDERAL AID TO STATES
T A B L E 1 0 5 , - - E x p e n d i t u r e s f o r F e d e r a l a i d t o S t a t e s , i n d i v i d u a l s , e t c . ( e x c l u s i v e of e m e r g e n c y a p p r o p r i a t i o n s
f r o m w h i c h p a y m e n t s a r e m a d e t o o r w i t h i n S t a t e s ) , f i s c a l y e a r s 1 9 3 0 , 1 9 4 0 , 1 9 5 0 , a n d 1954
Appropriation
titles
I.. A P P R O P R I A T I O N S F R O M W H I C H P A Y M E N T S
A R E MADE FOR G R A N T S TO S T A T E S AND
L O C A L UNITS
DEPARTMENT OF AGRICULTURE
•Payments to States, Hawaii, Alaska, and Puerto
Rico, Office of Experiment Stations, Agricultxiral
Research Administration (7 U. S. C. 361-427j) .. •.
f $4,335,000
Payments to States and Territories .for agricultural
experiment stations (7 U.-S. C. 301-308, 361386f, 369a, 427-427g)
Cooperative agricultxiral extension work (7 U. S. C.
301-308, 341-348, 343c-343e, 343f, 343g)
[ 7,539,786
>
Payments to States, Hawaii, Alaska, and Puerto
Rico for cooperative agricultural extension work
(7 U. S. C. 343, 386b, 386f)
Payments to States and Territories from the na1,565,032
tional forests fund (16 U. S. C. 500)
Payments to school fxmds, Arizona and New Mexico
(act June 20, 1910, 36 Stat. 561, 573,
41,243
Sees. 6, 24)
National school-lunch program (act June 22, 1946,
60 Stat. 290)
Removal of surplxis agrlcxiltural commodities (acts
Aug. 24, 1935, 49 Stat. 774, Sec. 32; Feb. 29,
1936, 49 Stat. 1151, Sec. 2; Feb. 16, 1938, 52
Stat. 38, Sec. 203 (7 U. S. C. 612c))
1,383,041
Forest-fire cooperation (16 U. S. C. 564-570)
State and private forestry cooperation (act Axig.
25, 1950, 64 Stat. 473)
Commodity Credit Corporation funds
Cooperative farm forestry (16 U. S. C. 567-568b)
139,196
Cooperative distribution of forest planting stock
(16 U. S. C. 567)
Payments to counties from submarginal land program
(7 U. S. C. 1012)
Research and Marketing Act of 1946 (act Aug. 14,
1946, Pub. Law 733)
Agrlcxiltural Marketing Act, as amended, (7 U. S. C.
1621-1629)
$6,848,149
$7,399,422
$13,251,611
18,458,267
31,025,919
31,540,393
1,192,370
1,987,538
60,775
122,755
81,213,235
23,555
81,687,941
50,326,135
8,768,555
154,710,878
^ 9,729,293
2 119,795
13,697,824
90,332
708,112
228,447
461,034
6,183,682
1,290,999
207,365,227
311,609,825
•
Total.
DEPARTMENT OF COMMERCE
Federal-aid airport program. Federal Airport Act,
Civil Aeronautics Administration (act May 13,
1946, 60 Stat. 171, Sec. 6)
Cooperative construction of rural post roads (23
U. S. C. 21, 54) (see also items of similar type
under class II)
Federal-aid postwar highways (acts Dec. 28, 1945,
59 Stat. 638, and Mar. 26, 1946, 60 Stat. 70)
Federal-aid highways (23 U. S. G. 1-24, 41, 21a,
23a, 41a)
Federal-aid secondary or feeder roads (act June 16,
1936, 49 Stat. 1521, Sec. 7
Elimination of grade crossings (act Jxme 16, 1936,
49 Stat. 1521, Sec. 8)...'
'
.
Public-lands highways (act June 16, 1936, 49 Stat.
1520, Sec. 3)
32,782,999
7,023,393
77,887,693
400,989,712
>
520,911,808
105,351,358
18,355,139
3,477,250
29,521,720
10,155,389
1,349,927
2,128,682
775,395
1,129,599
455,361,899
541,269,577
467,516
988,885
Maritime activities
State marine schools, act Mar. 4, 1911 (34 U. S. C.
1121)3..
50,000
140,036
77,937,693
155,647,405
DEPARTMENT OF DEFENSE
Payments to States, Flood Control Act, June 30,
1938, as amended (52 Stat. 1221-1222)
Footnotes at end of table.
TABLES
683
TABLE 105.--Expenditures for F e d e r a l aid to States, individuals, etc. (exclusive of emergency a p p r o priations from which payments a r e made to or within States), fiscal y e a r s 1930, 1940 1950 and
1954--Continued
Appropriation t i t l e s
I. APPROPRIATIONS FROM WHICH PAYMENTS
ARE MADE FOR GRANTS TO STATES AND
LOCAL UNITS--Continued
DEPARTMENT OF HEALTH, EDUCATION, AMD WELFARE
Colleges for agriculture and the mechanic arts
(7 U. S. C. 321-343g)
Fxirther endowment of colleges of agriculture and
the mechanic arts (7 U. S. C. 343-343g; 54
Stat. 582)
Cooperative vocational education in agriculture
(20 U. S. G. 11-30)
Cooperative vocational education in trades and
industries (20 U. S. C. 11-30)
Cooperative vocational education, teachers, etc.
(20 U. S. C. 11-30).i
Cooperative vocational education in home economics (20 U. S. C. 11-30)
Cooperative-vocational education in distributive
occupations (20 U. S. C. 11-30)
Cooperative vocational rehabilitation of persons
disabled in industry (29 U. S. C. 31-45b)
Promotion and further development of vocational
education (20 U. S. C. 15h-15p; 54 Stat. 583,
29-30; 29 U. S. C. 31-35)
Promotion of vocational education, act Feb. 23;
1917, Office of Education (39 Stat. 929-931,
Sees. 1 ^ , 20 U. S. C. 11-14)
To promote the education of the blind (American
Printing House for the Blind) (20 U. S. C.
101,102)
Mental health activities. Public Health Service
(act July 8, 1947, 61 Stat. 269)
Control of venereal diseases. Public Health
Service (42 U. S. C. 24, 25; 52 Stat. 439,440)..
Control of tuberculosis. Public Health Service
(act of July 1, 1944, 58 Stat. 693, Sec. 314 (b))
Operating expenses. National Heart Institute,
Public Health Service (act June 29, 1949, 63
Stat. 291)
Salaries, expenses, and grants. National Heart
Institute, Public Health Service (act July 2,
1952, 66 Stat. 366)
Operating expenses,.National Cancer Institute,
Public Health Service (act Apr. 19, 1946, 60
Stat. 106)
Salaries, expenses, and grants. National Cancer
Institute, Public Health Service (act July 2,
1952, 66 Stat. 366)
Grants, water pollution control. Public Health
Service (act June 30, 1948, Sec. 8 (a). Pub.
Law 845)
Disease and sanitation investigations and control.
Territory of Alaska (act July 1, 1944, 58
Stat. 704)
Assistance to States, general. Public Health
Service (act July 1, 1944, 58 Stat. 693, Sec.
314 (c))
Grants to States for public health work. Social
Security Act, Aug. 14, 1935 (42 U. S. C.
801-803)
Payments to States for sxirveys and programs for
hospital construction. Public Health Service
(act Aug. 13, 1946, 60 Stat. 1040-1049)
Grants for hospital construction Public Health
Service (act Aug. 13, 1946, 60 Stat. 1040-1049)
Grants to States for maternal and child welfare
services of the Social Security Act, Aug. 14,
1935, as amended (42 U. S. C. 701-731)
Grants to States for public assistance. Social
Security Administration (42 U. S. C. 301-306,
1201-1206)
Payments - o States, Vocational Rehabilitation Act,
t
as amended. Office of Vocational Rehabilitation
(act July 3, 1945, 59 Stat. 374)
Payments to States, including Alaska, Hawaii, and
Puerto Rico, Office of Vocational Rehabilitation
(29 U. S. C , ch. 4)
Total
Footnotes at end of table.
$2,550,000
$2,550,000
$5,030,000
$5,051,500
2,480,000
151,340
' 19,730
^
956,295
" 9,787
^
029,078
^ 10,000
248,957
'^"18,431
735;619
2,082,198
' 10,000
^
19,384,914
125,000
185,000
3,293,697
75,000
2,307,841
12,399,314
3,095,584
6,781,262
4,273,665
3,095,842
1,054,134
6j592,932
3,840,237
564,000
9,500,706
14,081,127
57,073,217
11,234,511
29,380,329
329,303,433 1,134,960,863
1,437,516,484
24,741,510
23,059,077
379,217,408 1,X7,568,754
1,633,986,908
684
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 105.--Expenditures for Federal aid to States, individuals, etc. (exclusive of emergency appropriations from which payments are made to or within States), fiscal years 1930, 1940, 1950, and 1954--Continued
Appropriation titles
1930
1940
1950
1954
I. A P P R O P R I A T I O N S F R O M W H I C H P A Y M E N T S
A R E M A D E FOR GRANTS TO STATES AND
L O C A L UNITS--Continued
DEPARTMENT OF THE INTERIOR
Federal aid in fish restoration and management
(act Aug. 9, 1950, Public Law 681)
Federal aid, wildlife restoration (act Sept. 2,
1937, 50 Stat. 917)..
Payraents to counties from receipts under Migratory
Bird Conservation Act (16 U. S. C. 715e)
Payments to States from receipts under Mineral
Leasing Act (30 U. S. C. 191)
$1,387,838
Payments to States under Grazing Act, June 28,
1934, public lands (43 U. S. C. 315i)
Payments to States under Grazing Act, June 28,
1934, Indian ceded lands (43 U. S. C. 315j)
Payments to States of 5i> of proceeds of public
lands (receipt limitation) (31 U. S. C. 711,
par. 17; annual appropriation provided for 1942,
act Junp 28 1941 55 Stat. 310)
18,292
Coos Bay wagon-road grant fund (act Feb. 26, 1919,
40 Stat. Sec. 5)
43,613
Revested Oregon and Cali-fornia Railroad and reconveyed Coos Bay wagon-road grant lands, Oregon
(reimbursable) (act Aug. 28, 1937, 50 Stat. 874).
Payment to certain counties in Oregon in lieu of
taxes on Oregon and California grant lands (receipt liraitation) (act June 9, 1916, 39 Stat.
222, Sec. 10, and various supplemental acts;
additional annual appropriation provided for
>
979,387
1939, act June 25, 1938 52 Stat. 1129)
Payraent to counties, Oregon and California grant
lands (50^)
Payment to counties in lieu of taxes on Oregon and
California grant lands, 25 per centum fund (25^)
(act Aug. 28, 1937, 50 Stat. 875)
Payment of proceeds of sales of Coos Bay wagonroad grant lands and timber (receipt limitation)
1
r
$2,290,967
$451,299
$7,577,938
12 8l8 526
88,419
2,151,654
470,621
11,328,583
18,741,004
503,970
185,489
67 200
602
5,518
142,041
313,845
1,761,766
6,422,027
12,771
Payments to Coos and Douglas Counties, Oreg., in
lieu of taxes on Coos Bay wagon-road grant lands
221
58,190
Payment to Oklahoma from royalties, oil and gas,
south half of Red River (receipt limitation)
41,778
8,803
8,786
Payments to States from potash deposits, royalties
and rentals (act Feb. 7, 1927, Sees. 5 and 6)
49,256
Payment to Alaska under Alaska Game Law (48 U. S.
199
"^ii-hd-iv
49,286
87 864
600,000
r
600,000
3,654,726
21,655,190
41,877,619
3,366,606
207,617,255
200 135 916
3,366,606
207,617,255
200,135,916
20,281
K^
Payment to Arizona and Nevada for Colorado River
Dam fund, Boulder Canyon Project (43 U. S. C.
Operation and maintenance, Bxireau of Reclamation
24 441
Total
.
2,470,908
DEPARTMENT OF LABOR
Promotion of v/elfare and hygiene of maternity and
• 9,522
7
Grants to States for Unemployment Compensation
and Eraployment Service Adrainistration, Bureau
of Employment Security (act Jxme 6, 1933, as
amended, 29 U. S. C. 49-491)
Grants to States for Unemployment Corapensation
Administration (act Aug. 14, 1935, 49 Stat.,
Sees 301 302)
Payftient to States, United States Eraployment Service (29 U. S. C'. 49-49i)
Total
Footnotes at end of t a b l e .
9,522
685
TABLES
TABLE105.--Expenditures for Federal aid to States, individuals, etc. (exclusive of emergency appropriations from which payments a r e made to or within States), fiscal years 1930, 1940, 1950, and 1954--Continued
Appropriation titles
1930
1950
1940
1954
I. A P P R O P R I A T I O N S F R O M W H I C H P A Y M E N T S
A R E M A D E FOR GRANTS TO STATES AND
L O C A L UNITS--Continued
INDEPENDENT ESTABLISHMENTS
Housing and Home Finance Agency
Annual contributions. Federal Public Housing Authority (42 U. S. C. 1410)
Capital grants for slum clearance and urban redevelopment. Office of Administrator (July 15,
1949, 63 Stat. 414)
United States Housing Authority fund (42 U. S. C.
1404 (d), 1418; 50 Stat. 889, 897, Sec. 4 (d),l8)
$5,737,706'
$38,233,895
11,583,.710
$1,386,1.32
1,386,132
5,737,706
49 817 605
19,386
28,315
34,895
6,909,143
Total
2,327,310
Federal Power Commission
Payments to States under Federal Power Act (16
U. S. C. 810)
$12,875
Veterans' Administration
(Annual appropriations xmder title "General operating expenses. Veterans' Administration"):
Supervision of on-the-job training (act June
22, 1944, 58 Stat. 290)
Administration of unemployment and selfemployment allowances (act Jxme 22, 1944",
58 Stat. 294)
"fiaintenance and operation of domiciliary facilities. Veterans' Administration":
State and territorial homes for disabled
soldiers and sailors (24 U. S. C. 134)
4,354,348
• 575,206
Total class I
978,767
3,273,924
575,206
Total
978,767
14,537,415
6,072,676
572,870,641 2,220,339,277
2,785,793,906
106,755,791
3,745,366
n. A P P R O P R I A T I O N S F R O M W H I C H P A Y M E N T S
A R E M A D E F O R S E L E C T E D P R O G R A M S INV O L V I N G P A Y M E N T S TO.INDIVIDUALS,
ETC.. , W I T H I N T H E S T A T E S
DEPARTMENT OF AGRICULTURE
Cooperative construction, etc., of roads and
trails, national forests (act July 11, 1916, 39
Stat. 358)
Federal forest road construction (act Feb. 28,
1919, 40 Stat. 1201)
Forest roads and trails (23 U. S. C. 23, 23a)
Forest reserve fund,. roads and trails for States
(16 U. S. C. 501)
Conservation and use of agricultural land resources (act Feb. 29, 1936, 16 U. S. C. 590g590q)
Administration of Sugar Act of 193,7 (7. U. S. C.
1100 1183)
Grants and loans, Farm Housing (act Jxily 15, 1949,
63 Stat. 434, Sec. 504 (a))
. («)
. («)
. («)
1 ^^
'
? 7,961,032
>
'
DEPARTMENT OF COMMERCE
Forest highways construction (Sec. 10 (a), act
Dec. 20, 1944, 58 Stat. 838-843)
552,042,804
289,951,995
237,799,633
46,321
7,961,032
Total
11,478,686
563,521,490
1
289,998,316 • -237,799,633
1
:
26,916,655
21 747 ^^2
26,916,655
22,016,621
Maritirae activities
State marine schools,, act Mar. 4, 1911 (34 U. S.
C. 1121)
Footnotes at end of t a b l e .
339256 O - 55 - 45
269 179
686
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 105.--Expenditures for Federal aid to States, individuals, etc. (exclusive of emergency appropriations from which payments are made to or within States), fiscal years 1930, 1940, 1950, and 1954--ConAppropriation titles
1930
1940
1950
$31,987,927
$71,019,749
$87,261,167
1954
II. A P P R O P R I A T I O N S F R O M W H I C H P A Y M E N T S
A R E M A D E F O R S E L E C T E D P R O G R A M S INV O L V I N G P A Y M E N T S T O INDIVIDUALS.
E T C . , W I T H I N T H E STATES--Continued
DEPARTMENT OF DEFENSE
Army
National Guard (32 U. S. C. 21, 22)
Maintenance and improvement of existing river and
harbor works (act July 24, 1946, 60 Stat. 637,
Sec. 6)
. .V. . .
Flood control, general (act July 24, 1946, 60
Stat. 637, Sec. 6)
Total
609,498
I
•
$120,000,696
120,000,696
31,987,927
71,019,749
87,870,665
44,295,643
86 685 683
31,987,927
71,019,749
132,166,308
206,686,379
Air Force
Air National Guard (act Oct. 29, 1949, 63 Stat.
1016-25)
DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE
Civilian Conservation Corps (16 U. S. C. 584-584q;
54 Stat. 581)
Ar-thritis and metabolic disease activities.
Public Health Service (act July 31, 1953, 67
Stat. 253)
Operating expenses. National Cancer Institute,
Public Health Service (act Apr. 19, 1946, 60
Stat. 106) ^
Salaries, expenses, and grants. National Cancer
Institute,' Public Health Service (act July 5,
1952, 66 Stat. 366)
Operating expenses. National Heart Institute,
Public Health Service (act June 29, 1949, 63
Stat. 291)'
Salaries, expenses, and grants. National Heart
Institute, Public Health Service (act July 5,
1952, 66 Stat. 366)
Operating expenses, dental health activities.
Public Health Service (act June 24, 1948, 62
Stat. 598-602, Sec. 421)
Dental health activities. Public Health Service
(act July 5, 1952, 66 Stat. 366)
Microbiology activities. Public Health Service
(act July 31, 1953,.67 Stat. 253)
Operating expenses. National Institutes of Health,
Public Health Service (act July 1, 1944, 58
Stat. 692, Sec. 301)
Mental health activities. Public Health Service
(act July 8, 1947, 61 Stat. 269)'.
Neurology and blindness activities. Public Health
Service (act July 31, 1953, 67 Stat. 253)
Total
•
.
270,356,832
3,669,055
>
5,177,886
4,909,702
I
10,673,853
231,764
>
11,963,612
270,528
2,102,983
5,726,699
3,635,866
6,878,368
19,681,917
43,320,037
3,.' 4,745
•
270,856,832
DEPARTMENT OF LABOR
Reconversion unemployment benefits for seamen (act
Aug. 10, 1946, .60 Stat. 982)
Unemployment compensation for veterans, Bureau of
Bnployment Security (act July 16, 1952, 66
Stat. 684)
905,964
81,852,147
DEPARTMENT OF THE TREASURY
Public Health Service^°
Preventing the spread of epidemic diseases
Studies in rural sanitation
Total
Footnotes at end of t a b l e .
273,330
71,117
345,159
689,606
687
TABLES
T A B L E 105.--Expenditures for Federal aid to States, individuals, etc. (exclusive of emerge:ncy appropri;
tions from which payments are m a d e to or within States), fiscal years 1930, 1940, 1950, and 1954-Continued
Appropriation t i t l e s
1930
1940
1950
1954
II. A P P R O P R I A T I O N S F R O M WHICH P A Y M E N T S
ARE MADE FOR S E L E C T E D PROGRAMS INVOLVING P A Y M E N T S TO INDIVIDUALS,
E T C . . WITHIN T H E S T A T E S - - C o n t i n u e d
INDEPENDENT ESTABLISHMENTS
General Services
Administration
C o n s t r u c t i o n s e r v i c e s . P u b l i c B u i l d i n g s Adminis t r a t i o n ( a c t June 1 5 , 1 9 3 8 , 40 U. S . C. 265)
$172,178
N a t i o n a l S c i e n c e Foxmdation .
S a l a r i e s and e x p e n s e s , N a t i o n a l S c i e n c e F o u n d a t i o n
(42 U. S . C. 1 8 7 5 ) , ( a c t Aug. 8, 1 9 5 3 , 67 S t a t .
488).
Veterans'
$5,612,198
Administration
V e t e r a n s ' m i s c e l l a n e o u s b e n e f i t s , V e t e r a n s ' Adm i n i s t r a t i o n ( a c t Mar. 2 4 , 1 9 4 3 , 57 S t a t . 4 3 ) . . , .
Read jxistment b e n e f i t s . V e t e r a n s ' A d m i n i s t r a t i o n
( a c t June 2 2 , 1944, 58 S t a t . 284)
,
A u t o m o b i l e s and o t h e r c o n v e y a n c e s f o r d i s a b l e d
v e t e r a n s ( a c t Aug. 8 , 1946, P u b l i c Law 6 6 3 ) . .
I
2,815,021,445
f
600,350,904
2,169,664
Total class I I
$40,638,565
Grand t o t a l
147,394,356
4,963,237
2,817,191,109
Total
605 314 141^
$905,398,071 3,287,032,447
1,202,601,156
5,507,371,724
3,988,395,062
1,478,268,712
• ^ Includes $19,484, expenditures for fire control activities on non-Federal lands in connection with the
flood prevention and watershed protection programs.
^ Estimated cost of perishable food coramodities acquired -throxigh price-support operations as ordered for
distribution within States, pursuant to Sec. 416 of Pub. Law 439, 81st Cong., approved Oct. 31, 1949.
^ For additional payments from -this appropriation, see Part II.
* Deduct; represents net repayments. These accounts were discontinued, but their functions are continued
under the two accounts iramediately following.
' Reported as an expenditure in addition to the expenditxires for general health assistsmce (see following
table, column 21).
^ Special fxmd account repealed as a permanent appropriation, effective July 1, 1935, by Sec. 4 of the
Permanent Appropriation Repeal Act, June 26, 1934 (48 Stat. 1227). Annual appropriation provided for same
object xmder the account imraediately following.
" Activities xmder this caption expired Jxme 30, 1929.
® These accoxmts consolidated with combined accounts immediately following.
' For additional payments from this appropriation see Part I.
•• Beginning July 1, 1939, expenditures of Public Health Service stated under Federal Security Agency which
"^
was superseded by the Department of Health, Education, and Welfare, effective April 11, 1953.
688
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 106.--Expenditures made by the Government as direct payments to States under cooperative a r r a n g e ments and expenditures within States which provided relief and other aid, fiscal year 1954
[The Treasury Department, for general information, has compiled from figxires fumished by the departments
and establishments concerned the following statement, exhibiting by States and Territories the ainounts
paid to or within each under the appropriations for Federal aid to States shown under classes I and II in
the preceding table.]
PART A. GRANTS TO STATES A D LOCAl' UNITS
N
.
Department of Agriculture
States,
Territories
etc.
Agricultural
experiment,
stations—
Regular
grants
Cooperative agricultxiral
extension
work—
Regular
grants
National
school
Ixmch
program-'' —
Regular
grants
(2)
(3)
$347,557
173,307
285,108
345,212
218,106
173,499
132,538
$1,197,197
183,237
991,703
721,834
352,596
166,076
95,702
217,767
400,165
172,547
354,800
333,196
347,912
239,536
332,837
265,715
181,171
200,894
195,144
328,601
299,533
347,423
318,748
177,811
223,412
133,652
149,486
199,912
174,608
J72,874
467,148
176,106
381,858
257,344
219,905
443,021
148,544
284,446
190,000
348,605
493,698
174,660
149,328
327,050
251,883
273,809
318,608
363,394
1,252,060
274,708
953,269
769,707
885,746
641,999
1,119,934
787,250
226,158
294,612
219,180
855,482
844,271
1,225,414
1,016,609
284,342
536,194
117,174
125,293
220,024
254,793
773,102
1,510,831
405,402
1,052,834
885,348
340,230
991,874
70,824
846,907
402,085
1,153,404
1,978,727
202,060
167,531
931,321
407,572
549,586
821,731
$2,933,071
512,150
1,861,222
3,763,956
667,936
673,517
101,912
177,666
1,734,067
2,883,699
405,818
2,964,007
1,850,727
1,316,109
959,376
2,402,132
2,503,404
509,738
945,938
1,693,674
2,558,088
1,633,673
2,604,404
1,935,147
271,451
587,966
58,443
267,636
1,548,691
505,747
4,728,997
3,675,830
374,346
3,118,500
1,593,559
733,050
3,992,170
283,524
2,108,911
331,534
2,762,318
4,443,182
475,648
231,097
2,106,865
1,043,864
1,531,471
1,503,031
(1)
.Alabama
•...-...
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia..
Florida
Georgia
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Ma~"ssachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island..
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
National
forests
fund^ —
Shared
revenues
(4)
$197,427
618,170
453,508
2,760,310
342,305
182,275
121,911
939,037
17,410
3,377
472
Submarginal. land
program,
payment
to counties—
Shared
revenues
Cooperative
projects
in marketing and
Commodity
Credit
Corporation^
(5)
(6)
$21,410
$339,635
9,572
66,474
5,931
13,434
'6,000
258^903
1,386,420
23,571
61,346
12,666
20,256
4,504
3,835
16,080
22,850
8,140
36,945
58,146
47,653
54,800
25,267
30,450
27,128
34,346
• 18,049
79,517
32,109
82,540
27,090
11,548
10,048
549,714
540,304
143,185
54,223
70,881
33^388
1,620
118,381
309,033
243,011
134,103
123,576
427,797
273,259
327,212
226,545
77,994
2,218
27,567
89,342
112,880
*78
"44,617
151,735
2,621
45,097
150,212
• 176,012
406,035
35,410
554,259
16,927
53,449
40,288
8,525
692
86,892
5,779
"142)013
33
4,411
52,315
6,029,381
48,727
270,871
106,216
71,412
575,318
170,039
35,748
56,205
3,434,617
49,266
96,500
(7)
13,302
974
30,791
9,105
225,046
State
and
private
forestry
cooperation, etcf
1,460
21,002
681
3,831
79,465
3,679
18,886
5,256
46
'is
41,482
30,035
634
82
1,159
'6,535
2,030
17,100
139,689
62,235
20,776
13,855
39,346
15,677
7,098
6,664
11,219
17,000
29,365
33,870
10,819
3,200
36,777
61,420
24,104
53,215
279,931
335,116
12,623
75,804
97,861
611,608
195,644
20,567
297,327
30,968
233,402
214,635
33,036
74,312
254,512
563,220
77,542
323,509
689
TABLES
T A B L E 106. --Expenditures m a d e by the Government as direct payments toStates under cooperative arrangements and expenditures within States which provided relief and other aid, fiscal year 1954--Continued
PART A. GRANTS TO STATES AND LOCAL UNITS—Continued
Department of Agriculture
States .
Territories .
etc.
CooperaAgricultive agri" tural
cultural
experiextension
ment
work—
stations~
Regular
Regular
grants
grants
(1)
Wyoming
Alaska
Hawaii
Puerto Rico
Virgin Islands
Advances and other
undistributed
Total
(2)
National
school
lunch
program-^—
Regular
grants
(3)
National
forests
fund 2 —
Shared
revenues
Submarginal land
program,
payment
to countiesShared
revenues
Cooperative
projects
in marketing and
Commodity
Credit
Corporation^
(A)
(5)
(6)
$152,751
121,014
143,388
. 285,374
$184,690
60,498
176,534
651,344
$145,516
30,696
340,396
3,247,008
55,063
$171,349
6,784
13>251,611
31,540,393
81,687,941
18,817,881
$22,661
""3,^863
461,034
State
and
private
forestry
cooperation, etc.'^
(7)
$3,000
5,043
11,445
. 33,785
$3,873
1,410,794
9,729 293
15,410
9,620
NOTE.—This table does not include Federal payinents to State and local governments for State and local
taxes or in lieu of such taxes on federally owned property.
^ Includes $14,826,278, value of commodities distributed to participating schools. In addition the schoollunch prograin is a recipient of some of the commodities reflected xmder the appropriation" Removal of surplus
agricultural commodities" and under "Commodity Credit Corporation, value of commodities donated."
2 Includes $122,755, payments to school fxmds, Arizona and New Mexico.
• Comprises $1,290,999, "Cooperative projects in marketing" and $119,795, "Commodity Credit Corporation, '
'
value of commodities donated."
^ Comprises $9,709,809, State and private forestry cooperation, and $19,484, forest fire control activities under flood prevention and watershed protection programs.
690
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 106. - - E x p e n d i t u r e s made by the Government as d i r e c t paynnents t o S t a t e s under cooperative a r r a n g e nnents and expenditures within States which provided relief and other aid, fiscal year 1954--Continued
PART A. G A T TO STATES A D L C L UNITS—Continued
R NS
N OA
Departnlent of
AgricvL t u r e — .
Contjnued
States,
Territories, etc.
Removal
of surplus
agricultural
commodities—
Value of
commodities distributed
within
States
(8)
Alabaina
Arizona.
Arkansas...'
Califomia.
Colorado
Connecticut
Delaware.
District of Colximbia
Florida
Georgia
Idaho
Illinois
Indiana.
Iowa.
Kansas
Kentucky
Louisiana
Maine
Maryland...
Massachusetts
. Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah.
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
Alaska
Hawaii
Puerto Rico
Virgin Islands
Advances and other
undistributed
Total
$3,877,513
1,016,765
2,635,135
8,157,697
1,569,980
1,554,472
494,132
784,672
2,899,999
3,965,692
500,813
6,078,250
2,531,930
2,464,922
1,859,140
4,486,856
5,450,614
753,336
1,889,335
6,255,556
4,590,369
3,365,283
2,412,473
3,319,629
398,507
1,009,406
221,026
739,026
4,421,264
1,122,572'
10,073,299
4,952,178
713,635
9,138,822
2,957,900
1,369,257
10,916,622
850,671
2,746,098
849,924
4,690,758
6,956,087
1,381,456
497,352
4,214,376
2,144,965
3,328,194
2,466,992
351,982
259,703
671,874
2,299,858
52,511
154,710,878
Disaster
loans, etc. Civil
Aero(payments
to assist
nautics
States in
Administrationfximishing
hay in
Federal
droughtairport
stricken
programareas)—
Regular
Emergency
gr suits
grants
(9)
$200,000
50,000
• 205,800
^
235,000
31,000
1,604,000
82,500
135,000
704,000
596,000
90,000
4,043,300
Defense
Department
Department Df Commerce
(10)
$305,227
66,739
176,030
735,946
495,360
64,468
9,955
274,203
140,955
100,722
1,615,738
324,964
207,358
138,043
311,422
80,079
44,701
67,728
902,089
566,883
192,677
128,634
858,213
58,709
317,137
79,524
16,339
411,695
80,428
.808,611
648,987
83,670
170,551
358,743
260,924
2,339,086
66,000
180,082
126,583
195,638
672,093
516,569
13,368
314,424
293,451
129,876
548,784
91,966
300,216
172,099
388,142
30,113
17,481,945
blic Roads:
Bureau of Pu
Highway con struction
Regular
grants*
(11)
$14,957,970
6,761,523
7,633,643
28,836,738
7,750,476
2,910,590
1,219,933
2,244,975
7,007,349
11,238,674
6,197,839
26,636,109
11,031,813
9,696,137
13,564,574
10,216,363
7,421,484
5,343,462
4,137,673
9,256,127
13,913,759
12,170,190
10,792,608
17,705,582
6,434,163
5,543,897
4,792,535
2,455,680
11,945,657
7,874,526
30,332,737
10,379,943
7,399,064
31,768,312
8,017,817
9,756,906
27,920,421
2,694,274
6,053,377
6,776,743
12,815,801
32,010,633
6,869,518
2,648,113
13,660,755
7,623,819
3,690,195
17,858,093
5,159,956
24,339
3,678,533
2,383,937
537,245,339
Emergency
grants*
(12)
-$157,020
Maritiine
activities:
State
marine
schoolsRegular
grants
(13)
$57,525
ArmyLease of
flood
control
landsShared
revenue
(U)
$54,210
60,422
24,309
622
2,299
-17,597
*"*7*235
49,900
21,959
42,574
990
844
36,691
4,500
43,460
39,476
41i111
4,148
187,382
* "67)199
4
540
1,456
77,147
88,045
12,527
-638
24,103
3,481
58,387
1,033
***i6]666
138,622
84,192
'"36)954
42,517
-172
2,231
6,725
96,671
7,982
139,221
2,616
10,248
39,701
330
42,867
28,570
105,088
23,393
300
22,883
2,484
6,867
5,228
"giiisw
1,250,349
« 396,298
988 885
' Comprises $520,911,808, Federal aid highways; $1,349,927, prewar Federal aid grade crossing elimination;
$13,854,005, access roads, act of 1950; and $1,129,599, public lands highways.
* Ccffijprises -$105,631, access roads (defense a c t ) ; $94, f l i g h t s t r i p s ; $505,818, sxirvey and planning;
$39,701 s t r a t e g i c highway network; and $810,367, war and emergency damage, Hawaii.
"^ Includes $5,800, payments on a reimbxirsable b a s i s t o a s s i s t S t a t e s in wind erosion control program.
* Includes expenditures of $252,345 for maintenance and r e p a i r of v e s s e l s , as follows: Califomia $30,920;
Maine, $143,493; Massachusetts, $37,490; and New York, $40,442.
691
TABLES
T A B L E 106. - - E x p e n d i t u r e s m a d e by the G o v e r n m e n t a s d i r e c t p a y m e n t s t o S t a t e s u n d e r c o o p e r a t i v e a r r a n g e m e n t s and expenditures within States which provided relief and other aid, fiscal y e a r 1954--Continued
PART A. GRANTS TO STATES AND LOCAL U N I T S - C o n t i n u e d
Department of Health, Education, and Welfare
Office of Education
States,
Territories,
etc.
Colleges
for agriculture
and mechanic
arts—
Regular
grants
(15)
Alabama
Arizona
Arkansas
California.
Colorado
Connecticut;
Delaware
District of Columbia.
Florida
^
Georgia
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
,
Louisiana
Maine
Maryland
,
Massachusetts
Michigan
,
Minnesota
,
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota.
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
'
South Carolina........
South Dakota
Texas
Utah
Vergipnt.;
Virginia
Was&ington
West Virginia
Wiscionsin
WyoMng
•
Alaska
Hawaii
P u e r t o Rico
Virgin Islands
Advances and other imdistributed
Total
$100,541
77,477
89,048
175,599
83,218
90,023
73,173
97,644
104,360
75,872
156,906
109,245
96,146
89,006
99,375
96,769
79,115
93,372
116,789
133,559
99,751
91,735
109,448
75,895
83,222
71,597
75,319
118,233
76,795
217,934
110,518
76,181
149,269
92,278
85,176
174,720
77,899
91,118
76,511
102,835
146,921
76,872
73,768
103,104
93,731
90,006
104,260
72,898
71,283
74,986
50,000
5,051,500
Cooperative' vocational education—
Regxilar
grants
(16) .
$670,987
170,153
491,697
1,222,094
217,420
255,287
158,654
96,162
393,203
720,644
158,935
1,098,786
655,604
555,178
366,810
680,790
491,851
154,934
282,568
499,933
889,109
571,955
614,315
695,773
154,625
287,991
132,435
153,503
500,499
167,431
1,561,705
958,134
202,404
1,109,584
438,879
263,375
1,242,328
111,959
492,257
201,546
715,420
1,248,752
165,983
158,258
643,318
362,316
414,354
615,079
158,654
64,327
158,654
479,789
34,991
25,311,392
Public Health Service
School
Mainteconstruc- nance and
operation
tion and
survey—' |of schoolsEmergency
Emergency
grants
grants
(17)
(18)
$4,577,918
4,222,208
2,299,703
15,536,857
2,752,129
371,819
18,042
$1,005,150
591,125
634,066
13,135,753
1,619,456
1,208,353
11,855
2,711,288
5,435,386
1,001,360
1,444,264
1,255,800
662,687
2,371,701
1,422,670
964,454
393,4^
6,552,684
58,864
2,930,350
420,915
1,322,185
1,615,407
636,604
689,774
764,977
1,396,413
2,255,321
475,609
1,470,389
978,285
293,368
2,671,243
970,469
444,603
429,276
1,661,613
663,963
1,567,051
132,322
523,365
939,659
202,717
806,203
695,376
339,474
950,039
1,061,886
1,852,037
439,390
148,200
2,714,192
2,684,120
259,316
1,019,858
563,420
996,388
531,664
545,874
4,729,809
710,404
54,460
5,125,785
3,240,308
33,988
310,682
124,362
1,317,752
960,789
-15,526
927,027
3,697,805
2,462,955
1,949,731
84,698
3,325,643
2,075,596
274,547
1,012,091
165,112
1,663,090
173,338
1,438,657
5,446,642
1,800,535
45,199
9,078,078
4,826,126
6,615
120,338
901,146
1,356,562
105,265,046 67,481,674
Venereal
disease
control-Regxilar
grants
(19)
$131,125
24,437
80,304
20,406
19,296
9,228
"127,844
277,095
189,412
14,850
141,579
15,520
20,042
62,925
229,257
55,701
7,314
60,017
179,224
81,053
36,182
17,532.
95,438
135,806
6,045
61,846
52,430
106,014
223,313
164,310
221,342
9,384
74,454
43,796
4,150
1,147
92,069
3,599
' 3,095,584
Tuberculosis
control—
Regxilar
grants
(20)
$100,752
49,215
71,862
246,317
33,519
55,985
18,963
41,265
85,594
122,699
15,618
215,737
80,055
37,969
42,558
114,323
86,119
26,030
81,384
131,609
133,051
54,658
90,339
100 639
18,984
19,104
9,974
14,177
113,245
32,102
367,127
119,042
28,174
182,282
64,077
36,614
235,946
23,679
86,257
19,082
121,673
166,581
12,039
16,703
115,826
51,912
55,976
49,260
10,921
50,879
36,455
171,290
8,024
4,273,665
Does not include payments to Housing and Home Finance Agency for construction of federally owned
schools, pursuant to Sees. 303, 304, Public Law 246, 83rd Cong., approved Aug. 8, 1953.
^° Includes $930,994 in services and supplies furnished in lieu of cash and excludes $9,854 in services to
the federally operated center in Arkansas'.
692
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 106. --Expenditures made by the Government as directpayments toStates under cooperative a r r a n g e ments and expenditures within States which provided relief and other aid, .fiscal year 1954--Continued
PART A. GRANTS TO STATES A D LOCAL UNITS—Continued
N
Department of Health, Education, and Welfare—Continued
Public Health Service—Continued
National
Institutes
States,
Territories,
etc.
Total
Mental
health
activities—
Regular
grants
Cancer
control—
Regular
grants
(21)
Alabama
Arizona
Arkansas.
California.
Ccjlorado
Connecticut
Delaware
District of Columbia.
Florida
-..
Georgia
Idaho
Illinois
Indiana.. •....
Iowa
Kansas
Kentucky
Louisiana............
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North• Dakota...-.
Ohio
Oklahoma
Oregon
Pennsylvania
,..
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
,
Utah...
,
Vermont
,
Virginia
Washington
,
West Virginia
,
Wisconsin
,
Wyoming
,
Alaska
Hawaii
,
Puerto Rico
,
Virgin Islands
,
Advances and other
xmdistributed
,
General
health
assistance—
• Regular
grants
(22)
(23)
$304,679
74,725
198,248
537,164
100,261
88,285
17,672
37,483
219,172
309,975
59,821
413,367
201,063
159,751
. 131,241
260,292
231,282
75,350
136,026
249,975
345,913
190,350
263,476
251,194
52,477
100,235
29,767
39,010
244,991
74,438
669,054
369,698
57,892
429,387
176,350
108,505
584,541
41,895
• 210,137
60,633.
280,851
541,336
63,664
35,446
246,849
137,671
155,794
198,700
38,082
^^ 37,972
34,532
247,731
4,666
$51,507
10,995
31,148
135,166
18,493
22,648
18,496
18,367
44,177
56,116
18,493
108,082
52,204
36,237
27,461
42,209
• 43,263
18,393
33,437
62,778
83,380
36,780
39,537
56,847
18,401
14,444
12,538
17,891
65,750
18,496
10,129,059
188,606
61,895
18,496
108,330
32,822
19,754
145,253
18,148
35,739
18,134
46,182
115,716
16,827
18,496
51,204
32,257
30,126
42,184
5,452
17,936
18,496
34,235
17,819
2,307,841
$58,001
12,607
37,915
139,467
23,120
26,95<5
4,770
10,655
47,151
60,061
13,335
120,600
43,441
41,254
30,733
43,080
42,262
17,248
33,282
71,270
74,656
45,019
48,287
63,907
12,856
12,253
5,477
63,129
13,771
203,078
' 68,826
13,552
112,406
37,004
17,993
116,480
12,054
38,703
10,492
39,206
107,972
6,990
8,646
51,832
27,116
32,466.
36,070
7,821
5,301
7,372
34,742
611
2,213,299
Heart
disease
control—
Regular
grants
(24)
$28,734
24,586
49,778
15,856
18,318
10,700
7,595
26,677
33,382
13,909
36,550
24,979
22,550
19,015
24,018
21,851
5,621
20,920
24,514
37,100
22,376
29,056
29,188
12,576
11,928
8,224
11,026
29,088
14,433
57,413
28,097
13,793
42,173
19,498
8,751
53,639
4,000
23,239
11,365
17,389
10,989
12,982
8,983
16,625
19,705
16,550
• 5,379
9,759
13,330
23,391
2,536
1,054,134
Hospital
construction—
Regular
grants
Construction of
community
facilitiesEmergency
grants
(25)
(26)
$1,791,474
851,218
2,025,701
2,312,087
432,949
526,371
99,* 607
950,947
2,762,301
7,454
3,452,941
2,438,478
1,693,947
1,821,370
3,589,802
2,831,010
425,328
1,962,200
3,080,532
1,586,401
3,020,050
2,705,433
189,951
938,246
183,625
205,665
1,836,591
389,025
3,330,096
3,186,131
246,543
5,261,671
1,518,656
557,355
5,414,511
256,444
3,850,933
125,385
3,453,618
4,725,715
296,624
181,426
2,129,757
1,415,069
2,315,709
1,525,500
131,525
593,890
98,781
3,492,563
88,218,606
of Health,
[construction
grants
National
Cancer
Institute—
Regular
grants
(27)
$96,000
80,700
281,986
$845,000
517,081
536,980
44,570
531,233
25,285
60,965
261,938
6/822
216,528
10,000
516,718
260,000
93,610
1,078,892
"2,'328
4,124,798
1,626,938
•• An additional payment of $564,000 was made " o Alaska for disease and sanitation investigation and con''
•'
t
trol activities.
693
TABLES
TABLE 106. --Expenditures nnade by the Government as direct payments t o S t a t e s under cooperative a r r a n g e ments and expenditures within States which provided relief and other aid, fiscal y e a r ' 1954--Continued
PART A. GRANTS TO STATES A D LOCAL UNITS-Continued
N
Department of Health, Education, and Welfare—Continued
Scxjial Security Administration
Grants. to States for matemEil
and child welfare services
States,
Territories,
etc.
Maternal
and child
health
servicesRegular
grants
(28)
Alabama
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Idaho.
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
,
Maryland
,
Massachxisetts
,
Michigan
,
Minnesota
,
Mississippi
Missouri
,
Montana
Nebraska
Nevada
New Hampshire
New Jersey.
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon.
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee.
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
;
Alaska
Hawaii
Puerto Rico
Virgin Islands.......
Advances and other
xmdistributed
Total....
Services
for c r i p pled c h i l dren—
Regxilar
grants
Childwelfare
servicesRegular
grants
(29)
(30)
292,464
318,081
90,609
182,906
69,075
132,153
180,772
360,184
78,467
353,633
155,043
211,511
120,858
355,009
238,192
87,119
260,693
192,618
315,325
216,328
292,811
250,789
89,694
103,875
52,407
84,049
173,492
76,025
337,534
425,324
85,213
328,628
236,177
99,389
446,153
101,084
284,422
79,088
351,243
507,718
114,679
72,713
310,109
146,364
144,716
246,570
53,354
142,127
138,475
315,736
63,953
$229,040
64,000
172,253
214,542
72,749
65,851
39,665
28,916
124,843
294,916
39,986
163,149
61,553
157,369
109,405
232,075
168,949
71,643
97,001
76,635
210,651
164,261
213,330
169,709
61,716
40,300
33,855
48,762
78,300
69,430
183,140
332,965
44,814
162,732
142,180
57,541
298,266
39,112
207,708
71,918
227,109
321,110
57,586
52,072
213,304
109,685
177,767
169,775
40,398
36,393
41,961
162,568
30,232
11,898,073 0.0,727,066
6,755,190
$447,733
110,819
240,988
484,091
193,959
124,310
84,498
154,332
247,738
431,004
85,804
314,714
193,298
153,166
• 127,188
334,749
311,481
92,161
322,730
322,614
340,834
224,406
338,393
250,203
'85,110
91,314
65,059
71,278
145,873
108,67i
436,041
523,580
86,801
383/268
160,426
110,438
467,463
83,349
262,125
63,943
424,551
519,504'
.125,391
78,760
344,195
169,885
219,684
197,129
76,233
80,005
136,198
370,166
80,420
$362,115
Grants to States for public assistance
Aid to
Aid to depermanently' pendent
Old-age
assistance— and totally] children—
disabledRegular
Regxilar
Regular
grants
grants
grants
(31)
(32)
$17,588,150 $2,236,013
5,550,394
719,620
15,236,902
123,195,362
1,787,791
20,291,692
6,615,154
39,139
618,559
680,324
1,095,071
26,451,048
2,404,464
31,115,134
381,027
3,713,589
39,854,941
2,379,967
13,735,385
16,780,234
1,340,592
15,384,997
18,424,759
4,380,638
48,727,802
5,306,410
1,572,818
3,744,949
4,483,137
35,584,306
804,537
32,082,822
102,804
19,457,319
573,500
16,990,454
6,293,081
57,308,122
604,816
4,196,644
7,539,268
1,113,520
67,490
2,826,590
1,305,029.
7,835,183
734,822
4,684,329
44,190,317 16,102,566
2,929,493
15,465,716
292,871
3,103,523
3,051,299
42,984,729
1,904,636
37,851,084
1,15.7,928
8,903,685
4,622,876
23,758,394
434,983
3,021,028
2,021,554
12,475,739
199,148
4,022,686
331,467
20,879,383
72,751,482
668,584
3,777,601
118,775
2,445,140
1,547,052
5,111,772
2,668,625
26,770,425
2,148,701
7,171,309
504,812
18,020,385
183,649
1,666,458
668,415
486,213
652,012
617,359
1,779,394
7,116
62,690
960,582,456
174,891,316
(33)
Aid to the
blindRegular
grants
(34)
11,611,362
2,215,525
687,825
5,332,775
6,891,123
11,933,451
5,805,777
385,498
656,9982,197,848
1,800,208
23,757
$376,029
304,927
622,464
5,536,541
144,884
126,553
112,532
101,063
1,283,921
1,127,685
88,342
1,571,195
704,463
575,235
264,653
895,029
741,497
237,932
174,025
784,051
771,994
524,025
965,957
1,337,542
223,639
322,588
39,746
125,221
375,553
180,692
1,986,023
1,834,264
44,250
1,654,333
884,341
159,546
3,924,723
72>977
550,063
75,744
1,078,323
2,249,378
90,718
66,862
425,186
356,111
358,557
514,650
30,542
24,725
41,932
53,039
3,196
364,923,251
37,119,461
$6,768,371
3,169,903
3,430,896
41,188,181
4,099,017
3,073,953
624,125
1,774,360
10,905,438
8,536,904
1,513,364
15,812,956
5,793,686
4,388,423
3,057,549
11,701,159
11,159,964
3,144,328
4,059,029
8,110,277.
13,356,686
5,086,314
3,710,761
13,007,900
1,686,279
1,903,486
912,031
3,651,970
4,529,101
40,340,081
11,078,510
1,013,992
10,356,285
9,380,161
2,639,393
20,390,868
2,018,848
3,360,262
1,854,458
12,791,835
694
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 106. --Expenditures made by the Government as direct payments t o S t a t e s under cooperative a r r a n g e nnents and expenditures within States which provided relief and other aid, fiscal year 1954--Continued
PART A. GRANTS TO STATES A D LOCAL UNITS-Continued
N
Department of Health,
Education, anti
Welfare—Continued
American
Printing
Hoxise
for the
BlindRegular
grants
(35)
States,
Territories,
etc.
Alabama
Arizona
Arkemsas
California
Colorado
Connecticut
Delaware
Loxiisiana
Maine
Maryland
Massachxisetts
283
2,067
$582,693
129,602
364,338
1,701,318
173,519
279,998
143,723
251,634
712,640
1,583,486
58,186
1,314,948
342,882
299,416
210,741
130,660
462,669
84,088
442,968
245,742
991,970
305,456
388,254
439,725
I X , 137
195,124
24,028
45,860
483,274
116,171
1,477,114
805,779
93,869
505,023
469,194
321,598
1,627,713
106,224
504,961'
73,492
650,433
997,561
107,301
96,325
486,762
463,182
509,272
550,953
76,939
39,346
167,233
290,553
185,000
23;059,077
$4,784
1,217
3,454
,
,
,
,
_,
.
,
,
,
,
,
,
,
;..,
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
'
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
Alaska
Hawaii
Puerto Rico
Virgin Islands
Advances and other
xmdistributed
Total
(36)
,
D i s t r i c t of Colximbia,
Florida
Georgia
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Office of
Vocational
Rehabilitation—
Regxilar
grants
10,531
1,982
2,321
""3%
3,256
4,699
651
9,767
3,312
3,907
2,067
3,369
3,652
"3)768
6,907
8,804
4,360
3,227
4,218
651
1,047
6,398
1,840
15,315
9,484
878
9,653
2,435
2,123
11,324
"2)519
1,047
4,360
6,851
906
"5)265
2,180
2,888
4,897
Department
of Labor
Department of the Interior
Federal
Aid, Wildlife Restoration,
Fish and
Wildlife
Service^^Regxilar
grants
Payments
from receipts
under
Migratcjry
Bird Conservation
Act and
Alaska
game
law"_
Shared
revenues
Payments
from receipts
xmder
Mineral
Leasing
ActShared
revenues
(37)
(38)
(39)
$247,735
326,290
280,278
725,156
477,239
89,861
111,438
"204)561
76,222
332,717
268,956
274,304
311,219
866,081
260,574
168,386
149,380
103,272
92,469
629,722
367,5ir
165,794
859,206
464,349
211,444
149,578
146,277
134,777
216,498
786,426
206,912
173,537
545,144
392,485
323,061
636,069
38,457
224,901
192,536
264,887
691,960
229,397
69,089
165,913
259,901
150,249
605,233
253,975
133,938
41,292
2,834
10,000
$227
1,139
1,490
97
42,502
4,924
3,511,557
2,875,616
Payments
under
certain
special
funds^*—
Shared
revenues
(40)
$1,810
328,831
1,014
52,896
28,330
305
1,215
772
21,342
2,211
1,833
'31)136
"'1)166
34,398
938
294,913
632
576
28
1,394
1,585
6,359
597
11,474
32,004
3,337
35)245
'2)666
14
181
72
1,004,615
2,344
155,986
32,316
582
40,431
677
1,809
4,742
16,602
3,449,455
332,606
56,183
1,309
"'7)225
30,688
21,189
4,483
9,161
6,453,169
63,476
5,077
1,016,696
32,273
1,419
12,196
363
87,952
6,226,609
149,295
102,462
545
558,485
18,741,004
7,468,636
5,560
l6
99
1,633
154
6,706
1,245
32
407
1,537
'12)245
Unen5)loyment Compensation
and Employment
Service
Administration—
Regxilar
grants
(41)
$2,658,254
1,871,693
1,936,822
20,743,727
1,617,477
3,182,709
476,908
694,386
2,946,904
2,952,299
1,044,688
9,019,592
3,710,213
1,612,290
1,466,552
2,335,388
2,700,475
981,368
3,492,166
8,621,154
9,505,430
3,047,376
1,900,870
3,507,407
979,432
867,051
596,264
689^327
7,073,571
1,057,552
29,680,965
3,754,661
601,012
• 9,733,492
2,301,773
2,578,797
17,066,884
1,649,082
2,445,211
476,144
2,875,204
8,450,280
1,379,048
618,308
1,841,378
4,081,503
1,518,778
3,147,634
551,840
692,464
643,857
733,164
22,026
3,066
15,109,493
200,135,916
^2 Comprises $12,818,526 for Federal aid, wildlife restoration, and $2,290,967 for Federal aid in fish
restoration and management.
^^ Con^jrises payments of $470,621 under Migratory Bird Conservation Act and $87,864 xmder Alaska game
law.
^* Comprises $412,820 payments to States from grazing receipts; $8,803, payments to Oklahoma frcjm
royalties, oil and gas. South Half of Red River; $6,422,027, payments to counties, Oregon and California
grant lands; $545, payments to Territory of Alaska, income and proceeds, Alaska school lands; $300,000
each to Arizona and Nevada xmder Colorado River Dam Fund; and ^4,441, operation and maintenance. Reclamation Fund.
695
TABLES
T A B L E 106. - - E x p e n d i t u r e s m a d e by the G o v e r n m e n t a s d i r e c t p a y m n e t s t o S t a t e s u n d e r c o o p e r a t i v e a r r a n g e m e n t s and e x p e n d i t u r e s within States which provided relief and other aid, fiscal y e a r 1954--Continued
PART A. GRANTS TO STATES AND LOCAL UNITS—Continued
Federal Civil Defense
Administration
States,
Territories,
etc.
Federal
contributionsEmergency
grants
(42)
Housing and Home Finance Agency
Federal
Power
Commission: Payments to
Disaster States unrelief- der Federal
Emergency
Power
grants
ActShared
revenues
(43)
(44)
Public
Housing
Administration
Office of Administrator
Slum clearDefense
ance and
community urban rede- Disaster
facilities velopment reliefand
program- Emergency
grants
servicesRegular
Emergency
grants
grants
(45)
(46)
$157,955
$43
$149,653
651
61,395
16 '"259)589
14,976
Arkansas
21,511
219,072
2,130,707
California
580
1,500
106,886
199,227
161,495
113,209
District of Columbia...
'366,666
53,738
Florida
5
966,006
367,496
Georgia
60,500
101
3)316
Idaho
482,830 $5)342)246
442,694
Illinois
353,874
100,861
13,031 '"$98)571
Iowa
""22)515
100,533
Kansas
1,128,213
70,945
Louisiana
22,371
215,833
93,125
15,065
Maine
1)563)165
246,922
Maryland
i
33,764
'132,148
388,910
"'67
16,176
251,363
Michigan
11
179,169
Minnesota..............
'"4,943
24
268
44,057
Mississippi
170,110
'85,564
'862
16,127
""56)148
58,262
Nebraska
'"""962
12,727
Nevada
149,933
23,162
New Hampshire
926
310,640
New Jersey
16
New Mexico
886
' *2,266,658
New York
403,168 4)733)365
23,541
'31
/•
.
216,805
6,953
North Dakota
16,700
759,095
Ohio
675,677
228,765
Oklahoma
3
1,988
142,213
16
1,128,234
78,120
Rhode Island
South Carolina
983
5,692
418
'1)249)244
186,426
144,268 '"267)650
1,260 '1,464,717
29,101
Ut^h
15,121
16
135,508
Virginia
1,767
293,869
5,654
3
West Virginia
42
126,635
Wisconsin
240
1,354
481,269
534
5,949
103,347
Alaska
18,549
Hawaii
I3
215,902
Virgin Islands
Advances and other
3,489
^'1,890,758
(48)
(47)
Alabama
Total
13,696,766
974,981
^ ' I n c l u d e s $ 4 , 4 8 3 , c o n t r i b u t i o n t o i s l a n d of Guam.
34,895
8,578,659 11,583,710
Annual
contributionsRegular
grants
'"$36)662
$2,210,292
200,942
454,524
1,379,741
69,547
1,223,996
177,469
1,207,936
2,571,163
33,939
1,262,569
476,105
"*l66)88l
10,044
""32)719
""81)658
""27)198
1,878,341
1,484,495
22,623
1,295,224
1,643,870
423,018
350,604
383,178
445,677
41,908
199,205
28,129
296,043
2,094,227
24,863
3,445,513
1,469,045
'""1)666
34,229
1,603,129
750,667
926,963
1,676,231
3,262,039
"'136)976
1,028,628
306,606
124,163
390,106
I3
168,224
112,002
987,348
69,374
489,945
38,233,895
696
1954 REPORT OF THE SECRETARY OF THE TREASURY
T A B L E 106. - - E x p e n d i t u r e s m a d e b y t h e G o v e r n m e n t a s d i r e c t p a y m e n t s t o S t a t e s u n d e r c o o p e r a t i v e a r r a n g e m e n t s and e x p e n d i t u r e s within States which p r o v i d e d relief and other aid, fiscal y e a r 1 9 5 4 - - C o n t i n u e d
PART A. GRANTS TO STATES AND LOCAL UNITS—Continued
Veterans'
States, Territories,
Alabaraa
Arizona.
Arkansas
California
Colorado
Connecticut
"
.
Delaware
District of Columbia
Florida
Georgia
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
'.
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
;
Oregon
,
Pennsylvania
Rhode Island
'.
.
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
•Virginia
Washington
West Virginia....'
Wisconsin
Wyoming
Alaska
Hawaii
Puer'Eo Rico
Virgin Islands
Advances and other undistributed.
• .Total
'.
etc.
Administration
S t a t e and
territorial
homes f o r d i s abled s o l d i e r s
and s a i l o r s —
Regular grants
(49)
S u p e r v i s i o n of
on-the-job
training—
Regular grants
(50)
$64,749
18,425
44,221
212,178
64,408
30,675
Total grant
payi'iients
( P a r t A)
(51)
77,867
7,380
7,582
72,749
26,802
61,037
35,435
81,394
25,969
27,693
309
12,952
29,440
16,661
51,094
79,207
2,318
87,981
50,430
9,586
121,606
12,858
35,791
33,914
99,717
135,851
22,195
6,519
54,186
16,087
48,168
.45,.789
2,550
10,408
$67,181,131
27,597,642
44,754,258
283,887,789
48,902,217
23,697,011
4,886,625
8,899,604
64,763,487
86,109,512
18,228,175
127,110,324
48,901,342
43,599,668
48,468,863
64,504,059
93,915,965
18,949,157
34,407,716
83,681,498
92,884,219
52,684,537
50,679,734
118,098,228
19,498,221
22,984,203
9,835,639
10,296,553
47,542,268
32,197;257
204,650,134
69,423,882
15,952,651
131,000,531
75,828,922
44,099,489
133,368,434
13,926,202
46,147,889
17,436,493
71,206,611
169,058,317
23,011,226
8,778,554
57,158,042
68,749,895
37,462,877
57,430,832
17,407,978
6,450,078
13,559,381
21,243,682
582,697
1,907,721
3,745,366
2,327,310
3,004,989,428
$866,945
7,257
208,197
54,855
121,460
28,923
440,574
121,908
91,219
9,749
343,540
329,221
135,614
51,084
26,795
62,446
17,855
79,290
23,103
269,801
135,690
94,378
64,034
54,826
25,280
167,004
121,829
13,238
35,746
36,256
48,013
136,979
697
TABLES
T A B L E 106. - - E x p e n d i t u r e s m a d e b y t h e G o v e r n m e n t a s d i r e c t p a y m e n t s t o S t a t e s u n d e r c o o p e r a t i v e a r r a n g e m e n t s and e x p e n d i t u r e s within States which p r o v i d e d relief and other aid, fiscal y e a r 1 9 5 4 - - C o n t i n u e d
PART B. FEDERAL AID PAYMENTS TO INDIVIDUALS, .ETC., WITHIN THE STATES OTHER THAN DIRECT GRANIS AND LOANS
Departraent of Agriculture
Department of Commerce
Defense
Department
Commodity Credit
Corporation
States,
Territories, etc.
Agricultural conservation
program
(52)
Administration of
Sugar Act
program
(53)
Alabama
$4,633,424
Arizona
1,333,766
Arkansas
4,527,848
California
4,501,152 $7,525,427
Colorado
4,815,362
3,746,138
Connecticut
354,200
Delaware
330,194
District of
Columbia
Florida
1,470,933
2,011,680
Georgia
5,726,404
Idaho
•...
3,571,222
1,596,697
Illinois
7,246,795
55,952
Indiana
4,234,822
5,183
Iowa
19,067
7,446,628
Kansas
6,461,852
89,157
Kentucky
6,636,105
Louisiana
7)269,476
2,976,807
724,216
Maine
Maryland
1,180,996
Massachusetts....
• 403,471
Michigan
1,474,045
4,942,690
Minnesota
1,689,559
3,761,420
Mississippi
3,601,262
8,405,556
Missouri
3,305,235
Montana
1,447,221
6,604,005
Nebraska
1,959,622
286,656
Nevada
290,997
New Hampshire....
723,237
New Jersey
1,716,179
New Mexico
3,804,957
New York
4,322,818
North Carolina...
841,249
4,873,038
North Dakota
5,029,454
448,165
Ohio
5,348,216
Oklahoma
1,986,744
Oregon
4,962,092
Pennsylvania
40,548
Rhode Island
2,751,435.
South -Carolina...
3,314,526
South Dakota.....
4,710,545
Tennessee
46,492
14,404,982
Texas
1,035,636
1,806,759
Utah
915,840
Vermont
3,505,539
Virginia
2,455,140
Washington
1,030,996
West Virginia
215,788
• 5,206,681
Wisconsin
1,239,587
1,571,971
Wyoming
24,843
Alaska
140,295 10,075,979
Hawaii
834,864 16,878,550
Puerto Rico
7,899
170,856
Virgin Islands...
Advances and other]
xmdistributed..
Total
Disaster
loans, etc.
(Handling,
Losses on
transportation- and eraergency feed
sold to
other
farmers and
costs-feed
stockmen at
furnished
less than cost
to farmers
and
stockmen)
(55)
(54)
$108,500
$186,000
3,294,000
'5,698)366
"554)366
746,400
Bureau
of Public
Roads,
forest
highways
State
Marine
Schools
(Subsistence of
cadets)
(56)
(57)
$112,745
1,137,649
130,303
3,491,231
1,161,679
$47,503
10,161
62,378
2,627,157
1,948,8
669,8
3,100,200
1,071,900
92,436
16,969
58,637
50,197
261,400
4,748,600
367,300
7,599,500
318,400
3,166,100
4,199,600
"36i)8o6
3,778,400
1,368,500
9,128,300
101,300
2,316,000
14,526,400
73,000
742,532
480,600
2)288)406
408,891
344,390
34,945
63,260
1,871,113
35,335
190,324
95,541
112,842
691,706
1,022)666
"263)966
""4l8)l37
137,500
129,400
33,400
45,073
77,039
2,504,181
24,383
30,961
155,349
68,150
65,500
658,422
41,696
98,997
1,062,623
157,309
54,380
1,187,200
2,836,643
49)266
500,000
tl-72,760,644 |65,033,939 |30,230,100 |^^ 46,559,837 |21,747,442
National
Guard
(58)
$1,670,375
408,651
1,916,289
3,454,218
722,541
607,849
351,939
1,457,050
483,124
1,740,261
838,131
1,407,104
3,482,758
742,873
433,038
643,814
2,044,222
1,696,995
503,048
1,645,264
2,153,203
1,013,550
2,543,304
1,152,606
2,001,508
368,625
3,203,129
358,183
1,183,209
399,611
6,517,214
439,906
1,875,321
5,404,983
840,493
732,392
2,481,794
456,340
434,335
583,952
920,733
1,566,155
515,738
350,991
122,509
592,431
467,371
1,064,093
1,407,319
971,657
834,220
2,240,553
15,226,206
269,179
' 86,685,683
Not distributable by States, representing reimbursement to Commodity Credit Corporation for hay
furnished to farmers and stockmen at less than cost.
^ ^ Represents expenditures accounted for by the National Guard Bureau. The amount each State received
"
cannot be ascertained.
^^ Represents estimated obligations based principally on applications for emergency feed assistance. They
are subject to revision depending upon quantities of feed actually delivered.
^' On obligation basis.
698
1954 REPORT OF THE SECRETARY OF THE TREASURY
T A B L E 1 0 6 . - - E x p e n d i t u r e s m a d e by t h e G o v e r n m e n t a s d i r e c t p a y m e n t s t o S t a t e s u n d e r c o o p e r a t i v e a r r a n g e m e n t s a n d e x p e n d i t u r e s w i t h i n S t a t e s -^vhich p r o v i d e d r e l i e f a n d o t h e r a i d , f i s c a l y e a r 1 9 5 4 - - C o n t i n u e d
PART B. FEDERAL AID PAYMENTS TO INDIVIDUALS, ETC., WITHIN THE STATES OTHER THAN DIRECT GRANTS AND LOANS
Department of Health, Education, and
Welfare—National Institutes of Health
Defense Department—Continued
Research grants
States,
Territories,
etc.
National
Guard
(59)
Alabama
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbie
Florida
Georgia.
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania..;
Rhode Island
South Carolina
South Dakota
Tennessee
Texas'.
Utah
Vermont
Virginia
Washington
West Virginia
'
.
Wisconsin
Wyoming
Alaska
Hawaii
Puerto Rico
Virgin Islands
Advances and other
xmdistributed
Total
' On obligation basis.
$3,147,913
1,404,465
1,851,508
6,641,422
911,092
1,536,262
697,806
704,411
2,995,700
3,557,531
1,094,589
3,015,999
2,900,645
2,260,416
1,396,477
1,243,734
2,329,072
1,621,337
2,381,642
3,340,422
3,612,394
3,646,221
1,954,243
2,693,335
872,959
1,286,901
519,393
1,486,994
5,319,059
1,037,461
8,474,755
2,298,609
900,450
2,711,038
2,300,584
2,166,052
3,244,162
656,033
2,862,477
392,098
2,467,879
7,191,303
1,197,248
821,099
2,050,176
2,359,000
1,400,726
2,716,933
626,393
665,005
?, 072,833
1,453,929
120,000,696
National
Arthritis
and
Metabolic
Diseases
Institute
National
Neurological
Diseases
and
Blindness
Institute
National
Cancer
Institute
(60)
(61)
(62)
$13,339
10,300
9,503
302,529
61,953
118,556
$6,200
$92,576
12,350
304,864
30,782
29,720
17,954
691,425
4,931
135,279
71,170
20,682
32,206
96,400
213,497
51,015
23,431
13,923
29,345
58,707
5,488
51,592
475,691
100,000
30,323
183,998
29,916
42,972
50,118
116,882
386,247
76,573
85,914
163,397
70,159
15,779
4,147
460,153
58,676
51,186
56,150
6,000
42,686
175,061
134,807
1,136,139
235,077
135,746
114,638
113,938
27,297
27,788
(63)
$7,777
15,000
45,435
6,048
6,000
11,940
31,363
34,797
114,297
11,394
12,085
77,996
60,360
176,235
National
Heart
Institute
(64)
(65)
$7,005
2,900
2,263
221,466
21,920
16,449
$41,882
56,914
3,000
24,764
135,633
20,932
''43)624
95,330
4,530
104,644
161,326
62,777
53,676
26,522
751,875
77,539
70,906
12,600
117,461
38,778
71,712
"473,225
15,719
9,723
71,130
42,129
164,809
4,212
24,030
10,480
14,067
7,353
" 205)181
1,087,549
144,330
296,520
10,724
155,241
33,000
53,813
27,443
3,500
311,713
39,383
50,012
16,632
10,800
1,362,945
215,324
33,946
111,253
5,'345
13,720
25,660
11,603
436,856 1,307,252
95,460
53,031
- 6,534
132,240
127,611
11,243
117,661
52,044
83,244
499,971
194,716
27,026
3,976
21,750
2,500
23,398
118,521
26,730 . 128,127
93,949
130,070
29,900
55,832
22,376
102,639
73,628
9,700
5,000
564,017
39,836
5,400
169,883
12,463
37,408
257,425
National
National
MicroInstitute
of Dental biological
Institute
Research
11,448
29,091
14,700
22,650
123,452
5,460
3,677
165,584
4,666
13,640
"34)763
78,479
13,048
3,477
"14)633
18,316
'2)656
381,891
51,721
13,300
439,311
26,910
3,500
102,656
90,927
15,223
26,080
68,452
135,109
6,000
69,266
11,450
11,114
3,269,807
2,326,033
7,496,397
228,482
2,012,682
7,120,146
699
TABLES
T A B L E 1 0 6 . - - E x p e n d i t u r e s m a d e by the G o v e r n m e n t a s d i r e c t p a y m e n t s t o S t a t e s u n d e r c o o p e r a t i v e a r r a n g e m e n t s and e x p e n d i t u r e s within S t a t e s which p r o v i d e d r e l i e f and other aid, fiscal y e a r 1 9 5 4 - - C o n t i n u e d
FEDERAL AID PAYMENTS TO INDIVIDUALS, ETC., WITHIN THE STATES OTHER THAN
DIRECT GRANTS AND LOANS-Continued
Department of Health, Education, and
Welfare—National Institutes of Health—Continued
Research
Erants-Continued
States,
Territories, etc.
National
Institute
- of
Mental
Health
(66)
Alabama
Arizona
Arkansas
California
Division
of
Research
Grants
(67)
Traineeship awards
National
Arthritis
and
Metabolic
Diseases
Institute
(68)
National
Neurological
Diseases
and
Blindness
Institute
(69)
$18,000
$171,315
31,912
148,371
Delaware
District of Columbia..
Florida
Georgia
Idaho
Illinois
Indiana
Iowa
27,486
14,976
29,502
9,574
259,309
22,000
54,123
83,756
Kentucky
Maine
Maryland
Massachusetts.........
Michigan
110,437
21,288
132,105
486,531
172,485
55,576
121,158
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New MdScico.*
New York
North Carolina
North Dakota
Ohio
10,336
293,824
57,749
18,217
7,200
3,600
$3,600
63,956
68,613
59,728
10,800
3,600
337,091
33,023
70,892
27,376
20,178
28,018
21,120
243,804
490,138
58,969
138,133
2,195
115,824
4,320
900
3,043
3,600
(70)
$7,200
16,200
671,986
102,286
101,095
National
Cancer
Institute
(71)
$3,600
31,500
11,260
3,600
6,600
10,200
3,000
22,300
10,259
10,300
3,600
14,400
22,249
61,880
10,270
5,600
12,666
10,200
$115,109
54,742
54,340
13,300
3,600
7,200
3,600
6,000
7,200
13,800
122,333
30,501
'13,400
31,000
19,033
52,300
21,600
32,400
25,200
22,050
12,070
50,637
25,370
5,582
12,571
34,215
24,027
"121)266
. 25,200
66,443
12,000
161,133
40,150
600
3,600
10,800
3,600
79,050
55,200
51,235
6,610
6,600
151,217
21,340
11,740
3,600
23,550
5,800
10,333
7,200
7,200
47,000
7,200
'"16)266
10,800
3,200
26,736
6,800
39,150
Utah
•
Vermont
Virginia
Washington
West Virginia
Wyoming
Alaska
Hawaii
Puerto Rico
Virgin Islands
Advances and other
Total
46,900
263,050
23,040
72,734
42,434
26,930
1,787
19,895
132,043
3,600
5,920
5,500
3,600
.2,611,768
4,224,426
116,970
South Dakota
Tennessee
(72)
38,853
491,313
112,841
2,999
121,606
16,011
4,000
201,407
24,013
14,715
9,436
47,088
103,670
. 80,255
7,681
31,896'
111,536
25,477
8,926
Oregon
Pennsylvania
National
Mental
Health
Institute
$10,366
3)666
3,600
16,368
3,625
10,800
National
Heart
Institute
8,738
37,868
10,104
23,120
13,800
3,000
16,250
3,000
3,600
3,600
3,600
7,232
10,800
238,336
100,400
490,820
396,103
1,533,097
700
1954 REPORT OF THE SECRETARY OF THE TREASURY
T A B L E 106. - - E x p e n d i t u r e s m a d e b y t h e G o v e r n m e n t a s d i r e c t p a y m e n t s t o S t a t e s u n d e r c o o p e r a t i v e a r r a n g e m e n t s and e x p e n d i t u r e s within States which p r o v i d e d relief and other aid, fiscal y e a r 1 9 5 4 - - C o n t i n u e d
PART B. FEDERAL AID PATIENTS TO INDIVIDUALS, ETC., WITHIN THE STATES
OTHER THAN DIRECT GRANTS AND LOANS—Continued
Department of Health, Education, and Welfare—
National Institutes of Health—^^Continued
Special
control
grants
Teaching grants
States,
Territories,
etc.
National
Neurological
Diseases
and
Blindness
Institute
(73)
National
Cancer
Institute
National
Heart
Institute
National
Mental
Health
Institute
(74)
(75)
$30,000
$25,000
$15,000
24)991 " " 2 5 ) 6 6 6
"'15)660
(76)
National
Cancer
Institute
(77)
163,491
25,000
25,000
159,309
25,000
39,-894
148,900
49,069
82,470
.$9,317
1,630
3,000
135,557
13,382
30,838
85)060
93)379
25,000
82,660
137,068
30,078
177,098
53,728
85,000
51,359
30,000
5,000
138,750
""94)836
"'56)256
'3l)lo5
134,925
50,000
85,225
15,000
110,790
271,326
69,637
76,216
5,000
93,302
66,406
15,000
""66)666
56)666
'"238)336
79,844
5,000
84,914
25,000
29,999
185,977
" * 296)136
106,416
15,000
73,997
25,000
14,000
219,015
"312)767
""25)666
5,000
85,000
34,894
25,000
24,999
54,744
30,000
5,000
55,000
13,200
76,292
36,070
25,000
10,952
48,246
24,948
14,958
200,772
92,485
34,133
35,115
14,999
22,662
66,601
108,508
51,990
39,073
14,931
2,333
14,300
'"25)600
11,000
4l)l75
25,013
14,050
10,916
Kentucky
Louisiana
Maine
35,000
16,699
8,460
11,619
Massachusetts.
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire..-.
New Jersey
New Mexico....
New York
""32)466
2,280,365
2,605,612
2,556,647
163,831
29,968
45,046
25,000
30,000
55,000
56,666
.8,000
20,400
""$4)556
$22,180
3,908
4,250
2)566
'16)625
15,000
""36)666
4,950
9,603
58,373
14,180
29,350
5,250
4,950
"•"49)286
5,000
""49)766
14,020
North Dakota
Ohio
Oklahoma
43)736
25,000
15,120
Rhode Island
South Dakota
tJtah
13,000
14,700
Virginia
(79)
15,000
25,000
55,000
Idaho
Illinois
(73)
National
Neurological
Diseases
and
Blindness
Institute
"*36,708
""25)666
"* $24)192
National
Arthritis
and
Metabolic
Diseases
Institute
'"137)424
25,000
36,000
65,000
144,891
46,587
33,981
77,315
45,789
67,513
Arizona
Delaware
District of Columbia...
Florida
Fellowship awards •
....
West Virginia
Wyoming
Alaska
Hawaii
Puerto Rico
Virgin Islands
Advances and other
xmdistributed
Total
'"139)579
""36,356
3,943
39,206
146,453
15,000
20,785
4)966
"261)343
85)644
6)212
""5)666
19)882
4,250
6)426
7,659
4)256
7,287
9,100
2,219
5)566
9,268
160,412
118,453
""5)416
399,854
1,074,764
701
TABLES
T A B L E 106. - - E x p e n d i t u r e s r n a d e b y t h e G o v e r n m e n t a s d i r e c t p a y m e n t s t o S t a t e s u n d e r c o o p e r a t i v e a r r a n g e m e n t s and e x p e n d i t u r e s within States which p r o v i d e d relief and other aid, fiscal y e a r 1954--Continued
PART B. FEDERAL AID PAYMENTS TO INDIVIDUALS, ETC., WITHIN THE STATES
OTHER THAN DIRECT GRANTS AND LOANS—Continxied
Department
of Labor
Department 3f Health, Education, and Welfare-^
National Institutes of Health—Continued
Fellowship awards—Continued
States,
Territories,
etc, •
National
Cancer
Institute
National
Dental
Institute
(80)
(31)
National
Microbiological
Institute
(82)
National
Heart
Institute
(83)
National
Division
Mental
of
Health
. Research
Institute
Grants
(34).
(85)
$3,602
$86,317
$3,375
34,657
$8,800
30,209
California
Colorado
10,658
9,150
$12,364
18,391
•..
3,963
7,150
$9,240
3,900
Florida
14,400
Idaho
Illinois
47,320
3,707
999
4,250
13,284
6,356
21,924
4,900
13,483
Kansas
5,250
31,555
100,932
Maine
3,911
• 4,950
10,434
4,900
14,961
149,549
12,700
4,600
12,650
13,459
7,500
5,432
22,389
3,800
9,736
Michigan
3,450
26,343
Mississippi
14,934
3,900
Nebraska
Nevada
New Hampshire
'
9,246
New Mexico
New York
32,843
13,816
37,817
34,770
""23)928
8,548
2,562
5,333
33,123
4,950
20,650
5,038
'2,072
30,674
North Dakota
Ohio
Oklahoma
17,199
3,934
5,525
38,964
117,572
16,997
23,656
2,580
5,337
Rhode Island
South Dakota
953
1,486
14,293
4,250
Utah
12,700
18,789
5,250
4,565
14,300
22,267
4,900
3,900
'"26)597
13,753
4,320
Virginia . . . .
Washirigton
West Virginia
Alaska
Hawaii
3,906
4,126
Virgin Islands.
Advances and other
Unemployment compensation
for
veterans
(86)
$3,139 453
521,079
1,340,424
4,575,844
660 827
362 927
111,438
552,272
1,105 593
1 915 697
452 574
3,096,822
1,901,028
645,010
551 475
3 573 527
1 404 54.8
800,624
1,253 587
• 1 920 188
3 602 900
1,589 573
1 559 464
2 126 230
292 239
289 433
54 890
224 331
1,246,128
693,703
3,736,077
2 734 646
335,427
2,756,664
1,320,856
1 309 794
3 953 679
629 635
1,748,392
456,244
3 873 356
3,856,731
405,362
143,431
2,329,140
1 853 782
• 3 536 324
1,403,306
93,083
151,968
570,617
2,799,136
31,609
187 500
Total
621,266
339256 O - 55 - 46
42,046
90,301
' 551,992
^
176,856
92,467
31,852,147
702
1954 REPORT OF THE SECRETARY OF THE TREASURY
T A B L E 106. - - E x p e n d i t u r e s m a d e by the G o v e r n m e n t a s d i r e c t p a y m e n t s t o S t a t e s u n d e r c o o p e r a t i v e a r r a n g e nnents and e x p e n d i t u r e s within S t a t e s which p r o v i d e d relief and o t h e r aid, f i s c a l y e a r 1 9 5 4 - - C o n t i n u e d
P a r t B. FEDERAL AID PAYMENTS TO INDIVIDUALS, ETC., WITHIN THE STATES OTHER THAN DIRECT GRANTS AND
LOANS—Continued
National Science Foundation
States,
Territories etc,
Research
grants
Fellowship
awards
(87)
$36,200
18,300
Alabama
Arizona
Arkansas
California
Colorado.... .
•
Connecticut
Delaware.
District of
Columbia
""-Florida
Georgia
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
LouislEoia
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Mon-tana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina.
North Dakota.......
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island.
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
Alaska
Hawaii
Puerto Rico
Virgin Islands
Advances and other
xmdistributed....
Total-..
(88)
$10,618
3,503
2,115
- 214,159
21,193
48,860
263,100
41,700
101,35019,000
85,900
42,900
48,400
3,500
351,900
78,500
38,050
24,500
14,100
40,200
23,100
84,000
292,400
88,700
46,100
9,600
138,000
35,000
34,900
11,500
149,250
12,350
416,900
130,500
'4,400
173,950
29,100
38,700
279,700
47,600
13,100
3,500
82,900
60,150
61,600
36,100
107,200
208,720
16,963
21,193
6,345
116,540
50,803
38,113
23,265
6,345
6,345
4,230
33,883
101,950
50,803
48,731
14,805
55,076
8,460
19,078
6,345
6,345
67,852
8,460
224,491
8,460
8,460
84,815
38,113
19,035
124,914
8,460
2,115
4,'230
14,805
42,343
10,575
4,230
12,690
27,538
67,938
4,273
20,000
32,000
6,600
Veterans'
Administration
Readjustment
benefits
AutomobilesJ (Public Law
Total payments
346, June 22,
etc., for
within States] Grand total
1944) and
disabled
(Parts A and B)
(Part B)
vocational
veterans
rehabilitation]
(Public Law
16, March 24,
1943)
(89)
(90)
(91)
$67,200
43,080
68,695
470,726
50,995
62,314
9,600
$21,145,498
2,824,361
11,019,861
46,442,994
7,920,190
5,462,918
720,956
$34,543,418
7,715,234
30,061,731
81,740,692
21,869,943
9,541,964
2,253,533
54,192
115,097
71,913
20,775
196,787
111,870
63,990
35,200
134,390
89,450
30,400
60,140
155,032
210,662
105,600
75,181
119,615
15,995
33,600
3,190
33,495
134,288
16,000
462,857
111,064
20,681
228,432
39,407
41,575
334,046
54,400
62,390
30,150
115,194
233,488
24,000
17,100
71,757
^ 84,765
57,600
92,800
8,000
3,094
25,600
126,400
7,630,046
16,926,715
20,935,237
2,467,569
23,940,172
12,533,844
10,951,513
5,936,330
9,137,470
13,701,497
1,542,707
4,660,709
15,331,680
14,362,848
13,620,079
13,700,649
17,782,721
2,682,716
7,539,276
325,314
1,356,891
8,628,539
2,929,979
42,756,259
17,904,460
5,356,279
17,338,237
12,907,301
5,325,499
30,634,165
2,664,455
9,670,036
3,233,718
14,811,748
36,312,257
5,274,011
1,221,608
9,136,863
8,707,119
3,938,530
11,374,498
1,440,989
109,558
1,626,356
9,325,663
11,605,017
26,201,309
34,557,051
12,685,935
42,448,756
25,728,051
22,654,626
21,091,669
23,473,061
30,668,849
6,752,002
11,618,672
29,322,658
32,053,785
27,052,479
24,160,572
46,210,309
12,579,823
18,424,480
5,318,041
3,914,289
17,574,603
14,965,322
73,634,521
29,847,490
14,300,738
36,441,245
29,337,552
15,324,546
49,063,084
4,629,154
17,721,282
8,834,954
31,569,032
88,159,563
11,822,101
3,680,531
19,458,296
19,694,886
11,237,401
23,^55,196
7,851,215
4,782,768
15,479,481
33,775,186
210,364
(92)
$101,724,549
35,312,876
74,815,989
365,628,481
70,772,160
33,238,975
7,140,158
20,504,621
90,964,796
120,666,563
30,914,110
169,559,080
74,629,393
66,254,294
69,560,532
87,977,120
124,584,814
25,701,159
46,026,338
113,004,156
124,938,004
79,737,016
74,840,306
164,303,537
32,078,044
41,403,683
15,153,680
14,210,842.
65,116,871
47,162,579
278,284,655
99,271,372
30,253,389
167,441,776
105,166,474
59,424,035
132,431,518
18,555,356
63,369,171
26,271,447
102,775,643
257,217,880
34,833,327
12,459,085
76,616,338
88,444,781
43,700,278
80,686,028
25,259,193
11,232,846
29,038,362
55,018,868
793,061
8,965
3,885,221
On obligation basis.
1,726,978
24,569,966
40,492,637
42,400,358
4,963,237
600,350,904
1,279,391,094
4,284,380,522
703
TABLES
GOVERNMENT LOSSES IN SHIPMENT
TABLE 107. --Governnnent losses in shipment revolving fund
[Established July 8, 1937, under authority of the Government Losses in Shipraent Act, as amended, 5 U.S.C.
134-134h ]
SECTION I - STATUS OF FUND AS OF JUNE 30, 1954
Cumulative
through
June 30, 1953
Transactions
Receipts:
Appropriation
Transferred (Sept. 21, 1939) from securities trust fund.
Recoveries of payments for losses
Repayments to the fimd-
$802,000.00
91,803.13
447,523.37
3,924.32
Fiscal year
1954
Cumulative
through
June 30, 1954
$8,633.47
$802,000.00
91,803.13
456,156.84
3,924.32
1,345,250.82
1,353,884.29
Expenditures:
Payments for losses
Other payments (refunds, etc.).
1,095,539.02
92.57
1,128,052.72
92.57
Total expenditures.
Balance in fxmd
1,095,631.59
249,619.23
32,513.70
-23,880.23
1,128,145.29
225,739.00
1,345,250.82
8,633.47
1,353,884.29
Total receipts.
SECTION II - VALUE OF SHIPMENIS MADE, FISCAL YEARS 1933-1954
[in millions of dollars]
Classification^
Total
shipments
Fiscal year
1933-52
1953
1954
No. 1 (currency, coin,
bullion
specie, etc.)
No. 2
(negotiable
securities)
No. 3
(canceled
coupons)
No. 4
(all other)
$4,500,097
495,216
561,235
$1,770,894
178,799
222,129
$31,383
3,109
3,376
$2,613,391
309,427
332 127
5,556,547
Total
$78,928
3,880
3,604
86,412
2,171,821
37,868
3,260,446
SECTION III - ESTIMATED SAVINGS OF INSURANCE PREMIUMS, FISCAL YEARS 1938-1954
Fiscal year during which
shipments were made
Estimated insurance premium savings, calculated
on basis of premium rates in effect f o r —
19382
1936-38*
(average)
1937'
$39,731,000
3,883,000
4,791,000
Total.. . ^ .
$49,768,000
4,844,000
5,977,000
$47,862,000
4,662,000
5 752 000
48,405,000
1938-52
1953
1954
60,589,000
58,276,000
SECTION IV - AGREEMENTS OF INDEMNITY ISSUED BY THE TREASURY DEPARTMENT THROUGH JUNE 30, 1954'
Agreements of indemnity
Amount
Number
Issued through June 30, 1953
289
14
$2,520,539.03
13,332.14
Total issued
Canceled throxigh June 30, 1954
303
28
2,533,871.17
1,027,685.47
275
1,506,185.70
Footnotes at end of table.
704
1954 REPORT OF THE SECRETARY OF THE TREASURY
T A B L E 107. --Governnnent losses in shipment revolving fund--Continued
SECTION V - CLAIMS MADE AND SETTLED THROUGH JUNE 30, 1954
Claims
Clairas made through June 30, 1953
Made during the fiscal year 1954:
Processed by the Bureau of the Public Debt
Total claims made through June 30, 1954
Settled through Jime 30, 1953
Settled during the fiscal year 1954:
Processed by the Deposits Branch, Bureau of Accounts:
Settled by credit in appropriate accounts
Settled without payment or credit
Losses of paid armed forces leave bonds and paid United States
savings bonds, not lost in shipment, settled outside the provisions of the Government Losses in Shipment Act, as araended,
through the Bureau of the Public Debt by reducing the outstanding
public debt liability and crediting the appropriate accounts
Processed by the Bureau of the Public Debt:
Approved for payment out of the fund:
Armed forces leave bond redemption cases
Total claims settled through Jime 30 1954....
Unadjusted as of June 30, 1954^
'
.
Total
Number'
Amount
4,949
$3,379,646.68
103
105
62.606.61
30,360.61
5,157
3,472,613.90
4,838
3,356,396.94
68
50
21
3,347.70
67,409.03
2,063.98
2
3,432.50
84
30
23,324.55
5,841.45
5,143
14
3 461 816.15
10,797.75
5,157
3 472 613.90
^ Classifications Nos. 1,2, and 3 include classes of valuables which were covered by the Treasury's insurance contracts with private companies prior to enactment of the Governraent Losses in Shipment Act. The
classes of 'valuables included in Classification No. 4 were not, as a general practice, insured.by the
Government prior to the effective date of the act.
2 Year of lowest rates under insurance contract systera.
' Year when estimates of insurance premium savings were presented to Congress.
* Last three years of Governraent insurance con'tract system.
' The Govemment has not sustained any actual monetary loss in connection with its liability under these
agreements of indemnity.
^ Includes claims in process of adjustment by the Bureau of the Public Debt.
705
TABLES
INTERNATIONAL CLAIMS
TABLE108. --Mexican claims fund, status as of June 30, 1954
Status of the fund:
Credits:
Payments received from Govemment of Mexico under the agreement of Nov. 19, 1941:
Under the agrarian claims agreement of 1938
On exchange of ratifications of the agreement
'
Annual installments due from Government of Mexico through November 1953
Appropriation by Government of the United States on accoimt of awards and
appraisals raade on behalf of Mexican nationals
Total credits
36,533,658.95
Debits: Ainounts paid by fiscal years to American nationals:
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
;
i
Undisbursed balance June 30, 1954
231,603.72
Claims certified for payment:
By the Secretary of State:
•
•
•
Decisions rendered by the General Claims Commission..
Appraisal agreed upon by the commissioners designated by the Governments of the
United States and Mexico, pursuant to the general claims pro-tocol between the
United States and Mexico, signed Apr. 24, 1934
Subtotal
By the American-Mexican Claims Commission:
Decisions under the provisions of Sees. 4 (b), 4 (c), and '5 (d) of the
Settlement of Mexican Claims Act of 1942 (22 U.S.C. 664-669)...
637,036.24
6,333,636.13
1,443,226.94
4,993,915.35
3,076,040.354,354,144.31
2,821,873.65
2,586,320.53
2,628,951.39
2,425,573.61
2,513,796.66
2,432,539.56
36,302,055.23
Total debits
Total claims certified
$3,000,000.00
3,000,000.00
30,000,000.00
;
201,461.08
2,599,166.10
2,800,627.18
37,948,200.05
40,748,827.23
TABLE 109..--Awards of the Mixed Claims C o m m i s s i o n , United States and G e r m a n y , certified to the S e c r e t a r y of the T r e a s u r y by the S e c r e t a r y of State, through June 30, 1954
-J
o
Total
number
of
awards
1. Amount due on accoxmtPrincipal of awards:
Agreement of Augxist 10, 1922
Agreement of December 31,
1928
Private Law No. 509
Class I
Class II
Class III^
Private Law No. 509
approved July 19, 1940
United States
Government
Total amount
Number
of
awards
Awards on accoxmt of death Number
of
and personal
awards
injury
Awards of
$100,000
and less
Number
of
awards
Awards over
$100,000
4734
$175,955,880.92
424
$3,549,437.75
3996
$15,562,321.98
310
5,582,354.38
160,000.00
115
556,625.00
2169
2,447,803.92
7
Amount
2,577,925.46
1
181,698,235.30
Amount
$42,034,794.41
42,034,794.41
160,000.00
w;T^012.50
H
O
42,034,794.41
Less ainounts paid by Alien
Property Custodiem and
-187,226.85
X
W
X
s
""$l66)666!66
160,000.00
117,387,252.24
18,010,125.90
4,106,062.75
Number
of
awards
4
$114,809,326.78
2291
1
Number
of
awards
-139,214.35
181,511,008.45
4,106,062.75
17,962,113.40
117,248,037.89
78,751,456.32
745,302.98
7,113,930.76
51,682,897.36
2,649,630.04
64,000.00
115,976.22
971,159.15
1,562,494.67
Total payable to January 1,
1928
262,976,094.81
4,967,341.95
26,047,203.31
170,493,429.92
224,000.00
61,244,119.63
Interest thereon to date of payment or, if unpaid, to June 30,
1954, at 5 percent per annum, ,
as specified in the Settlement
of War Claiins Act of 1928
159,386,994.56
236,195.75
2,061,598.87
75,777,148.23
176,177.62
81,135,874.09
9
Interest to January 1, 1928, at
rates specified in awards:
Agreement of August 10, 1922
Agreement of December 31,
1928
Private Law No. 509
vn
64,000.00
o
3
6165
28,108,802.18
317
3,549,437.75
3983
15,497,158.79
2149
2,445,886.69
1
310 2 127,054,595.71
556,625.00
7026
2. Payments made on account through
June 30, 1954Principal of awards:
Agreement of August 10, 1922
Agreement of December 31,
1928
Private Law No. 509
19,209,325.22
422,363,089.37
539
5,203,537.70
4717
146,101,192.25
424
2271
1
6,142,794.02
165,053.06
115
7
246,270,578.15
2 3,140,282.33
"1
400,177.62
'3'165)653!66
4
142,379,993.72
>
Interest to January 1, ].928, at
rates specified in awards:
Agreement of August 10, 1922
Agreement of December 31,
1928
Private Lav No. 509
$7,852,463.96
Net payments made to claimants through June 30,1954
3. Balance due on accountPrincipal of awards:
Agreement of August 10, 1922
Agreement of December 31,
1928
Private Law No. 509
2,045,380.09
* 15,363,130.14
* 31,626.92
5,203,537.70
28,065,971.34
145,558,008.18
196,679.98
-22,249.66
-121,173.14
-709,013.02
* -41,702.22
5_ 983.^0
-3,767.97
-19,156.68
-18,777.57
6989
178,129,075.76
327
27
1
Interest to January 1, 1928, at
rates specified in awards:
Agreement of Auguat 10, 1922
Agreement of December 31,
1928
-983.40
539
6132
27,925,641.52
317
144,830,217.59
100,559,684.40
13
17,150.69
310
20
1,917.23
7
195,696.58
39,298,414.08
1,002,055.03
58,946.94
1,000,137.80
5,177,520.07
1
4
1
61,244,119.63
58,946.94
r
vn
00
6,769.78
6,769.78
,774.36
Accrued interest at 5 percent
per annum from January 1,1928,
on total amount payable as
of January 1, 1928, through
June 30, 1954
Balance due claimants through
June 30, 1954
236,195.75
5 -852,435.82
Less 1/2 of 1 percent deduction
from each payment:
Agreement of August 10, 1922
Agreement of December 31,
1928
Private Law No. 509
970,384.79
179,024,197.20
Total payment through June 30,
195i;
$7,107,160.98
115,976.22
17,676,332.90
Interest at 5 percent from
January 1, 1928 to date of
payment, as directed by the
Settlement of War Claims Act
of 1928
$745,302.98
1,086,361.01
774.36
141,710,661.66
355
243,338,892.17
' 16,218.78
33
42,830.84
144,550.70
60,414,018.09
317
100,712,569.97
1
203,497.64
81,135,874.09
4
142,379,993.72
^ On February 27, 1953, the Federal Republic of Germany agreed to pay $97,500,000.00 (U. S. dollars) in full settlement of Germany's obligations on account of Class III awards
and Private Law 509.
^ Includes payments on account of interest to January 1, 1928. Payments on this class of awards are first applied on accoimt of the total amount payable as of January 1, 1928,
as directed by the Settlement of War Claims Act bf 1928 until total of all payments on the 3 classes equals 80 percent of the amount payable January 1, 1928. Payment of accrued
interest since January 1, 1928, on this class of claims deferred in accordance with the act.
• Includes payment on accoimt of interest to January 1, 1928.
*
* Payments made in accordance with Public Law 375, approved August 6, 1947.
' Represents deductions from payments under the agreement of August 10, 1922.
* Of this amount, $24,150.09 has been paid to the Government of Germany. A further sum of $17,552.13 is payable in connection with the adjudication of late claims under the
agi\5ement of December 31, 1928.
'interest accrued from January 1, 1928, to March 11, 1940, on $26,612.06, representing awards plus interest to January 1, 1928. No applications filed by claimants. Time for
filing applications expired March 11, 1940.
o
708
1954 REPORT OF THE SECRETARY OF THE TREASURY
GOLD AND CURRENCY TRANSACTIONS AND FOREIGN GOLD AND DOLLAR HOLDINGS
TABLE 110. --United States net gold t r a n s a c t i o n s with foreign c o u n t r i e s , fiscal y e a r s 1951-54
[In millions of d o l l a r s a t $35 per ounce. Negative figures represent net sales by the United S t a t e s ;
p o s i t i v e figures, net purchases]
1954
Country
Afghanistan
Argentina
Ii6!6
Belgian Congo
-45.0
-9.9
'.,..
1953
1952
1951
-2.5
-94.8
-63.9
-2.0
20.2
-49.9
10.3.
-11.0
15.3
Canada
Chile
China
.
.3
6.9
2.0
-110.0
-5.0
-4.2
-3.5
.
^
-19.2
-20.0
-4.2
-4.0
14.0
28.2
-15.5
-4.0
-3i!6
-3.5
59.3
-4.8
71.6
-176.5
-16.4
-25.0
-6.7
-18.5
-50.0
-1.1
112.7
-162.7
-84.3
:
Cuba
Denmark
Dominican Republic
-20.2
Egypt
Finland
France
-145.6
-11.2
-2.8
80.3
-40.0
Mexico
Netherlands;
Norway
-50.0
-53.1
-125.0
-5.0
-13.0
Poland
Portugal
-""'""-54!9
-34!9
Switzerland
Switzerland-Bank for International Settlements
"-10.0
-20.0
-71.0
-10.0
-45.0
-34.5
Syria
Turkey
United Kingdom
Uruguay
'
-170.0
-5.0
-10.0
-4.0
9.3
-40.0
-6.0
-4.1
51.0
-17.0
22.5
5.8
.12.7
-35.0
-40.0
-73.9
Saudi Arabia
South Africa
Vatican City
-.5
.-...
All other
-519.5
-3.3 .
-5.6
-1,420.0
-86.7
2!6
-996.6
1,469.9
68.0
5.0
9.5
-30.0
-1.5
Total
-1.0
-1.2
-440.0
. -10.2
-2.5
-.9
9.2
1,670.1
-2,425.2
709
TABLES
TABLE 1 1 1 . - - E s t i m a t e d g o l d and s h o r t - t e r m dollar r e s o u r c e s of foreign countries,•"as of June 30, 1953 and 1954
[In millions of dollars]
Jxme 30,
1953
June 30, 1954
Area and coxmtry
Total gold
and dollars
W e s t e r n Exu-ope:
Austria
Belgixmi, Luxemboxirg, and B e l g i a n Congo
Denmark
Finland
France and dependencies
Germany (Western)
Greece
Italy
Netherlands, N.W.I., and Surinam
Norway
Portugal and dependencies
Spain and dependencies
Sweden
Switzerland
Trieste
Turkey
Other'^
239
1,056
124
• 73
1,091
1,503
125
802
'
1,122
178
516
142
342
2,105
2
151
Total, Europe (excluding sterling area)
•
Sterling area countries in Westem Exu-ope:
Iceland
Ireland
United Kingdom.
•United Kingdom dependencies
495
418
•1
1
1,085
• 346
-798
47
.419
116
•219
1,469
114
456
324
131
97
26
123
636
2,091
4
152
734
10,615
6,157
4,458
8,907
290
10,924
6,447
4,477
1
• 17
2,550-
3
14
936
105
2,563
1,113
3,030
247
91
14
2
10
33
91
334
14
.6
3
52
212
232
105
3,681
338
14
35
'
. 48
.
225
239
(5)
33
38
187
148
2
7
• 19'
306
9,213
5
30
2,836
109
899
246
830
3,221
1,359
3,910
2,463
Canada
Africa:
Egypt and Anglo-Egyptian Sudan
Ethiopia
Tangier
Other Africa
653
4,530
Total, sterling area
1,042
1,421
2,238
52
8
36
13
229
7
27
11
226
12
36
13
174
4
{')
237
173
109
274
45
140
171
Total, Africa^
102
60
926
393
82
660
953
164
412
134
280
42
• 596
409
9
31
Other sterling area countries
Total, Asia^
•
166
1,044
93
144
585
3,536
Sterling area countries in Western Europe
Footnotes at end of table.
238
•180
309
Total Western Europe (excluding sterling area)
Asia:
Afghanistan
Indonesia
Iran
Israel
Japan
Lebanon
Philippine Republic
Saudi Arabia
Syria
Thailand (Siam)
Other Asia and xinidentified
51
876
31
31
Total gold
and dollars
994
Eastern Europe
Other sterling area countries:
India
Iraq
New Zealand........'.
Pakistan.;
Union of South Africa
Other
Short-term
dollar balances^
Gold'2
42
31
137
3
59
34
46
246
155
16
29
746
t
;....
29
615
1,022
113
43
24
299
19
21
130
202
53
316
16
26
311
206
617
1,435
2,413
131
46
9
70
308
19
36
243
245
()
'
15
2,052
710
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 1 1 1 . - - E s t i m a t e d g o l d and s h o r t - t e r m dollar r e s o u r c e s of foreign countries,^
as of June 30, 1953 and 1954--Continued
[In millions of dollars]
June 30,
1953
June 30, 1954
Area and coxmtry
Total gold
and dollars
Short-term
dollar balances^
Gold 2
Total gold
and dollars
Latin America:
Bolivia
Brazil.
Chile
Colombia
i,.
Cuba
Dominican Republic
Ecuador
El Salvador
Haiti
Hondxiras
Mexico
Uruguay
Other Latin America and xmidentified
Total, Latin America^
'3,723
373
6
321
42
86
2
186
12
23
29
27
2
(*)
57
3
(*)
36
227
403
(*)
1,835
•
24,035
177
31
96
61
231
. 13
346
56
18
45
48
9
19
201
16
87
67
108
218
41
1,888
519
47
451
129
197
14
579
59
47
74
72
15
15
339
16
97
109
311
530
52
3,672
6
6
Unidentified, all areas
Total, all areas
550
37
417
103
317
15
532
68
41
74
75
11
19
258
19
87
103
335
621
41
13,340
16
10,695
21,736
* Less than $500,000.
^ Excludes gold and short-term dpllar holdings of the International Bank and International Monetary Fund
and gold holdings of the U.S.S.R.
^ Official gold holdings. For countries whose current holdings have not been published, available estimates have been used, or the figures previously published or estimated have been carried forward.
^ Includes reported holdings of United States Government secxu-ities matin-ing within 20 months after
date of purchase.
* Includes gold and dollar holdings of the Bank for International Settlements, the European Payments
Union, the Tripartite Commission for the Restitution of Monetary Gold, other Westem European coimtries,
and xmpublished gold reserves of certain Western Exu:opean coxmtries.
' No estimate made.
^ Excludes sterling area countries and dependencies of European countries.
711
TABLES
TABLE 112 . - - A s s e t s and liabilities ofthe exchange stabilization fund, June 30, 1953 and 1954
Assets and liabilities
June 30, 1953
June 30, 1954
ASSETS
Cash:
Treasurer of the United States,
$207,364,834.89
Federal -Reserve Bank of New
York, special accoxmt
Disbursing officers' balances
and advance accounts
$6,413,149.90
27,846,530.97
182,314,204.05
2,261.65
3,965.01
$235,215,330.87
$189,229,615.60
57,971,871.12
Total cash
Special accoxmt of Secretary of the
Treasury with Federal Reserve Bank
of New York—Gold (schedule l ) . . . .
Due from foreign banks (foreign
exchange):
100,019,518.96
61,973.74
United States Government securities
(schedule 2)
Accrued interest receivable
(schedule 2)
20,000,000.00
103,045.69
7,680.23
313,332,157.52
Total assets
•25,000,000.00
32,936.11
40.68
314,359,860.48
LIABILITIES AND CAPITAL
Liabilities:
.
11,755.33
Employees' payroll allotment
account. United States savings
bonds
8,630.04
2,074.65
134,209.49
1,151.33
123,497.98
144,914.18
136,404.64
Total liabilities
Capital:
200,000,000.00
Excess of earnings over administrative expenses (schedule 3 ) . .
Reserve for expenses and con-
200,000,000.00
112,739,694.12
. 114,214,946.30
456,058.76
313,195,752.88
Total liabilities and capital..
314,214,946.30
313,332,157.52 .
314,359,860.48
712
1954 REPORT OF THE SECRETARY OF THE TREASURY
T A B L E 1 1 2 . - - A s s e t s and l i a b i l i t i e s o f t h e e x c h a n g e s t a b i l l z a t i o n f u n d ,
J u n e 3 0 , 1953 a n d 1 9 5 4 - - C o n t i n u e d
SCHEDULE 1 . SPECIAL ACCOUNT OF THE SECRETARY OF THE TREASURY IN THE FEDERAL RESERVE BANK OF N W YORK
E
June 30, 1953
June 30, 1954
Location of gold
Ounces
Total gold
1,233,831.179
422,507.972
43,184,091.24
14,787,779.88
1,634,897.153
1,222,803.363
1,656,339.151
Federal Reserve Bank of New York
U. S Assay Office New York
....
Dollars
57,971,371.12
2,857,700.516
Ounces
Dollars
57,221,400.34
42 798 118 62
.100,019,518.96
SCHEDULE 2 . UNITED STATES GOVERNMENT SECURITIES
June 30, 1954
Issue
Face value
Cost
Average price
1/2^ U. S. Treasyry
1/2^ U. S. Treasury
1/2^ U. S. Treasury
1/2^ U. S. Treasury
bonds
bonds
bonds
bonds
of 1964-69
of 1965-70
of 1966-70
of 1967-72
$2,600,000
10,000,000
2,400,000
10,000,000
$2,599,500.00.
10,000,000.00
2,398,343.75
10,000,000.00
25,000,000
2
2
2
2
99.93077
100.00000
99.95182
100.00000
24,998,343.75
Accrued
interest
$2,663.93
72,690.21
17,445.65
10,254.90
103,045.69
SCHEDULE 3 . INCOME AND EXPENSE
Jan. 31, 1934, Jan. 31, 1934,
through Jxme
through Jxme 30,
30, 1953
1954
Earnings:
' ..
Profits on British sterling transactioiTs
Profits on French franc transactions
Profits on gold bullion (including profits from handling charges
on gold)
Profits on gold and exchange transactions
Profits on silver transactions
.
'
Profits on sale of silver bullion to Treasury
Profits on investments
Interest on investments
Miscellaneous profits
Interest earned on foreign balances
Interest earned on Chinese yuan
Total earnings.
Expenses:
Personal services
Travel
Transportation of things.
Communications
Supplies and materials...
Other
Total administrative expenses.
Net income
$310,638.09
351,527.60
$310,638.09
351,527.60
56,452,114.97
49,164,525.40
102,735.27
3,473,362.29
1,876,790.55
8,698,066.89
861,546.95
2,349,683.19
1,975,317.07
58,276. 417.51
49,629, 045.26
• 102 J
735.27
3,473, 362.29
1,876, 790.55
9,238; 299.65
861; 546.95
2,999j 126.68
1,975; 317.07
126)116,308.27
129,094,806.92
10,093,183.99
500,940.35
686,263.87
575,885.04
107,177.20
1,413,163.20
11,333,868.30
553,585.51
713,463.80
593,059.36
113,196.38
1,522,686.77
13,376.614.15
14,879,860.62
112,739,694.12
114,214,946.30
713
TABLES
T A B L E 11 3.--Foreign currency balances in the accounts of the United States Treasury Department,
representing currencies acquired by the United States Government without purchase with dollars
as of June 30, 1954
Balance as of June 30, 1954
Country
Currency
Units of
foreign currency
GROUP I—GENERAL FUNDS^
Austria.
Belgium
Brazil
Burma
Ceylon
Chile
China
Columbia
Denmark
Dominican Republic.
Ecuador
Egypt..."
Ethiopia
France
Germany
Germany
Greece
Hungary
Iceland
Indonesia
Iran
Iraq
Ireland
Israel
Italy
Japan
Jordan
Korea
Lebanon
Mexico
Netherlands
Nicaraugua
Norway
Pakistan
Peru
Poland
Portugal
South Africa
Spain
Sweden
Switzerland
Thailand
Trieste
Turkey
United Kingdom
Vietnam
Yugoslavia
Schilling
Franc
Cruzeiro
Kyat^
Rupee
Peso
N.T. Dollar
Peso
Kroner
R. D. Dollar ,
Sucre
Pound
Eth. Dollar
Franc
West D. Mark
East D. Mark
Drachma
Forint
Kroner
Rupiah
Rial
Dinar
Pound
Pound
Lira
Yen
Dinar
Hwan
Pound
Peso
Guilder
Cordoba
Kroner
Rupee
Sol
Zloty
Escudo
Poxmd
Peseta
Kroner
Franc
Baht
Lira
Lira
Poxmd
Piastre
Dinar
215j 233,077.51
36j 694,699.30
17)463,307.40
323,714.54
Ij 113,759.65
2j 343,307.00
10, 903,341.20
48,123.39
325,049.63
33,078-.00
70,371.60
107,775.39
79,060.00
,322 398,215.00'
76, 964,329.35
32,042.69
636,538.06
931,544.33
758,231.72
079,030.43
707,936.10
156,973.20
132,650.26
14,482.56
2,545 122,133.00
7,293, 391,634.60
39,500.00
512,306.30
1,352.30
516,724.65
185,003.34
090,972.26
120,703.30
194,076.23
496,599.12
100,000.00
995,157.21
8,892.79
392,457.26
191,376.05
173,641.72
841,46'/. 47
240,000.00
259,670.21
578,243.47
45 933,793.17
443,957.00
4,479
Total Group 11
$3,280, 272.21
736,416.79
304, 333.47
63, 912.13
235, 560.17
7, 322.31
701, 179.49
19; 249.36
4,980, 564.70
38, 073.00
A) 073.08
310, 432.66
31; 879.03
5,240, 665.54
13,324, 822.00
1, 387.13
11,889, 552.83
40, 240.44
967, 355.30
134, 465.30
108, 849.20
444, 234.17
907.91
373 J
8;066.03
4,072,195.41
20,259, 421.21
111, 390.00
525,071.15
420.62
361, 789.64
9,036,806.95
155, 353.03
1,133, 522.61
968, 204.92
24, 892.18
4,000.00
34, 330.50
25; 633.47
753, 312.51 •
423, 959.24
41, 636.05
267, 956.83
24, 334.00
807, 023.14
1,629,923.77
1,026,628.47
14,931,431.59
109,927,712.64
CaiOUP II~AGENCY FUNDS^
Austria
France
Germany
Israel
Netherlands.
Norway
Spain
Yugoslavia
Total Group II.
Footnotes at end of table.
Schilling
Franc
West D. Mark
Pound
Guilder
Kroner
Peseta
Dinar
14,670.00
61,568,191.00
9,281,424.73
3,018,913.05
396,341.91
8,639.84
804,170,656.69
192,914,598.00
564.23
175,903.94
2,209,860.32
1,681,380.37
104,905.16
1,'213.32
18,701,631.96
643,048.66
23,518,513.46
714
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 113 .--Foreign currency balances in the accounts of the United States T r e a s u r y Departnient,
representing c u r r e n c i e s acquired by the United States Government without purchase with dollars
as of June 30, 1954--Continue d
Coxmtry
Currency
Balance as of June 30, 1954
Units of
Dollars
foreign currency
CSIOUP HI—TRUST FUNDS
Germany
Philippines
Total Group I I I
West D. Mark
Drachma
Peso
128,690,956.98
5,680,295.24
2,186,351.24
$30,640,704.04
139,343.17
1,091,426.54
31,921,473.75
165,367,704.84
-^ Group. I—general funds, represents those currencies from which the proceeds of sales are for credit to
miscellaneous receipts of the Treasury.
^ Group II—agency fxmds, represents currencies acquired by the United States under guaranty provisions
of Section 111(b)(3) of the Economic Cooperation Act of 1948, as amended (22 U.S.C. 1509(b)), from which the
proceeds of sales are for credit to the accoxmt of 'the Export-Import Bank; and currencies acquired by the
United States through the sale of certain agricultxu:al products from which the proceeds of sale are for
credit to the account of -the Commodity Credit Corporation.
TABLES
715
TABLE 114. - - F o r e i g n c u r r e n c y t r a n s a c t i o n s in the accounts of the United States T r e a s u r y Department r e p resenting c u r r e n c i e s acquired by the United States Government without p u r c h a s e with dollars,^ December
1, 1953, through June 30, 1954
[In United S t a t e s dollar equivalent]
Balance in the Treasiury Department Dec. 1, 1953
Transferred to the Treasury Department on Dec. 1, 1953, by U. S.
agencies pursuant to Treasury Department Circular No. 930, dated
October 19, 1953
Collections—Dec. 1, 1953 to June 30, 1954
$25,114,797.88
280,722,226.29
242,374,400.38
Total available
548,211,424.55
Withdrawals—Dec. 1, 1953 to June 30, 1954:
Sales for d o l l a r s (financed from United S t a t e s dollar appropriations of agencies):
General fxmds, the proceeds of which were credited to.miscellaneous r e c e i p t s of the Treasury
Funds, the proceeds of which are for discharge of i n v e s t ment guarantee l i a b i l i t i e s under the Mutual Security Act
(administered by Export-Import Bank of Washington)
Fxmds derived from sale of sxrrplus a g r i c u l t u r a l products,
and applied to reimbin-se the Commodity Credit C o r p o r a t i o n . . . . .
$245,371,697.53
1,203,546.32
512,562.79
Total sales for d o l l a r s
247,087,806.64
Requisitioned, pxu*suant t o law, without reimbursement to the
Treasxu-y:
For obligations incurred p r i o r to July 1, 1953 (Public Law 207,
83d. Cong., 31 U.S.C. 724)
For other purposes (Sees. 550 and 708(c) of Public Law 118. 83d.
Cong. 31 U.S.C. 724 and 22 U.S.C. 1513), and trust funds^
76,263,790.64
59,293,839.63
Total amounts requisitioned
135,557,630.27
Total withdrawals
Adjustments (rate fluctuations, etc.)
Balance in the Treasury Department June 30, 1954:^
General funds for credit to miscellaneous receipts
Informational media guaranty funds for credit to Export-Iniport
Bank of Washington
Commodity Credit Corporation funds
Trust funds
•
Total.
382,645,436.91
;
-198,282.79
109,927,712.64
4,816,886.50
18,701,631.96
31,921,473.75
165,367,704.85
^ Pursuant to.Executive Order No. 10488 of September 23, 1953, the Treasury issued regulations which became
effective on December 1, 1953, governing the pxu-chase, custody, transfer, and sale of foreign exchange by
executive departments and agencies (Department Circular No. 930, dated October 19, 1953, see exhibit 74).
^ Trust funds included in this category amoxmt to $9,183,044.82.
^ For detail of currencies held see preceding table. In addition to the balance held by the Treasury,
U. S. Government agencies also held foreign currencies, acquired by.the United States without pxn-chase with
dollars on June 30, 1954, in the amount of $60,324,272.84. These currencies represent unexpended balances of
amounts requisitioned from the Treasury without reimbursement therefor during the period December 1, 1953, to
June 30, 1954, shown in the table under the caption "Withdrawals." The currencies, according to purpose for
which requisitioned, are as follows:
Liquidation ofrau-tualsecurity prograra obligations incurred prior to July 1, 1953
(continued available)
$22,893,993.77
Liquidation of other than mutual security program obligations incurred prior to
July 1, 1953 (lapsed)
894,915.71
Purposes of Sees. 550 and 708(c) of the Mutual Security Act of 1953 (31 U.S.C.724)
35,141,826.60
Trust funds
1,393,531.76
Balance held by agencies, June 30, 1954
60,324,272.84
INDEBTEDNESS OF FOREIGN GOVERNMENTS
TABLE 11 5.-.-Indebtedness of foreign governments to the United States a r i sing from World War I, and payments thereon as of June 30, 1954
Indebtedness
Coxmtry
Principal
Payments
Poland
Rxunania^°
Yugoslavia^2
Total
$32,773,042.16
26,024,539.59
578,423,077.60
$11,959,917.49
13,623,712.32
114,900,000.00
Unmatured
$12,356,768.34
235-, 780,000.00
Due and xmpaid-"$20,813,124.67
. 44,058.93
177,743,077.60
51,181,108.90
216,359,708.41
.51,118,599.51
114,060,000.00
3 29,644,470.81
13,178,457.94
3,674,012.87
12,792,000.00
" 7,125,775.82
^
6,780,678.82 . 5 345,097.00
5,377,092,964.36 1,293,841,430.30 2,569,808,569.70 1,513,442,964.36
951,000,000.00 3,417,000,000.00 3,414,759,301.93
7,782,759,301.93
9,280,095.10
19,091,000.00
12,425,000.00
40,796,095.10
1,429,709.53
397,060.00
3 3,338,269.53
•1,511,500.00
2.116,976,159.34
112,076,159.34
411,900,000.00 1,593,000,000.00
^ 12,267,942.04
5,388,477.84
1,509,264.20
5,370,200.00
3 11,004,247.03
1,335,680.00
4,862,002.00
4,806,565.03
3 370,988,404.20
91,233,294.87
534,973,095.00
66,200,631.28
43,312,000.00
20,310,560.43
192,601,297.37
- 13,153,000.00
162,745,000.00
43,550,000.00
164,931,404.20
27,372,734.44
342,371,797.63
4,575,631.28
48,472,000.00
Funded debts
$862,668.00
$862,668.00
52,191,273.24 17,100,000.00
12,286,751.58
20,134,092.26 •19,829,914.17
1,248,432.07
10,726,332.65
2,-219,321.18
486,075,891.00 161,350,000.00
2,024,854,297.74 232,000,000.00
4,127,056.01
981,000.00
556,919.76
73,995.50
100,829,880.16 37,100,000.00
761,549.07
9,200.00
36,471.56
1,237,956.58
234,783.00
168,575.84
22,646,297.55 ^ 1,287,297.37
^° 4,791,007.22 • 2,700,000.00
^^ 8,750,311.88
2,588,771.69
1,225,000.00
Unfunded debts
Funded debts
Unfunded debts
X
$2,057,630.37
10,000,000.00
$14,490,000.00
1,246,990.19
- 8,197,696.20
64,689,588.18
38,650,000.00
202,181,641.56 1,232,775,999.07
2,922.67
1,983,930'. 00
482,171.22
364,319.28
5,766,708.26
621,520.12
26,000.00
1,001,626.61
141,950.36
' 19,310,775.90
29,061.46
1,798,632.02
727,712.55
17,297,981,019.07 3,143,790,043.88 8,290,513,718.36 5,863,677,256.33 2,754,874,535.86 '476,973,179.22 281,990,396.99 1,324,556,529.03
• Includes amounts postponed and unpaid under .moratorium agreements for the fiscal year
"
1932. For total principal and interest by coxmtry see Annual Report of the Secretary of
Treasury for 1947, p. 107.
^ The German Government was notified on April 1, 1938, that the Government of the
United States would look to the German Government for the discharge of the indebtedness
of the Government of Austria to the Government of the United States.
• Increase over amount funded due to exercise of options with respect to the payment
^
of interest due on original issue of bonds of debtor government.
^ The act approved August 24, 1949 (20 U.S.C. 222 - 224), provides that any sum due
or paid by the Govemment of Finland to the United States as the resxilt of World War I
shall be deposited in the Treasury and made available for educational and technical
instruction and training in the United States for citizens of Finland, and to provide
opportunities for American citizens to carry out academic enterprises in Finland. Payments by Finland after the approval date of the act through June 30, 1954, totaling
$2,023,351.98, were made available pxn-suant to the act.
' Represents payments deferred.
^ The Hungarian Government deposited with the foreign creditors' accoxmt at the
Hungarian National Bank an amoxmt of pengo eqxiivalent to the interest payments due
Interest
Total
Due and Unpaid^
Axistria^
Belgium
Cuba
Czechoslovakia
Estonia
Finland
France
Great Britain
Greece
Hungary^
Italy
Latvia
Liberia
Lithxiania
Principal
Interest
Total
$18,543,642.87
2 286,751 58
304,178.09
1,441.88
309,315.27
221,386,302.82
357,896,657.11
1,159,153.34
753.04
57,598,852.62
130,828.95
10,471.56
1,546.97
26,625.48
2,048,224.28
263,313.74
^^ 8,750,311.88
636,059.14
vn
X
s
H
O
•n
H
:i:
tn
vn
9
vn
H
O
671,354,430.62
from December 15, 1932, to June 15, 1937. The debt-funding and moratorium
agreements with Hungary provide for payment in dollars to the United States.
• The United States held obligations in the principal amount, of $289,898.78,
^
which, together with accrued interest thereon, were canceled on October 6,
1939, pursuant to, the agreement of April 14, 1938, between the United States
and the Republic of Nicaragua, ratified by the United States Senate on Jxme
13, 1938.
^ Excludes claim allowance of $1,813,428.69 dated December 15> 1929.
^ Excludes book credit of $408.02 for overpayment.
-- Excludes payment by the Rumanian Government to the Treasxu'y on June 15,
"^
1940, of $100,000 as "a token of its good faith and of its real desire to
reach a new agreement covering" Rumania's indebtedness .to the United States.
Silver bullion in the amount of $29,061.46 was paid to the United States on
J-ane .16, 1933, which payment was credited June 15, 1947.
•"^ Consists principally of proceeds of liquidation of assets of the Russian''
•Government in the United States. (See Annual Report of the Secretary for 1922,
p. 283).
•- This Government has not accepted the provisions of the moratorium.
"^
H
X
vn
tn
>
717
TABLES
T A B L E 1 1 6 . - - W o r l d W a r 1 i n d e b t e d n e s s of G e r m a n y t o t h e U n i t e d S t a t e s a n d a m o u n t s p a i d a n d n o t p a i d .
J u n e 3 0 , 1 9 5 4 ( a g r e e m e n t of J u n e 2 3 , 1930)
PART I . INDEBTEDNESS OF GERMANY, JUNE 3 0 , 1954
Indebtedness
as fxmded
Class
Total
indebtedness
June 30, 1954^
Principal
balance
Interest accrued
and xmpaid
Army costs (reichsmarks)
1,048,100,000
1,197,933,770.25.
997,500,000
2 200,433,770.25
Mixed claims (reichsmarks)
2,121^600,000
-489,600,000
2,550,000,000.00
-881,790,000.00
2,040,000,000
-489,600,000
510,000,000.00
-392,190,000.00
1,632,000,000
1,668,210,000.00
1,550,400,000
117,810,000.00
2,680,100,000
2,866,143,770.25
2,547,900,000
318,243,770.25
$1,080,384,330 $1,155,915,732.54
$1,027,568,070
$128,347,712.54
Total
Total (in U. S. dollars, at 40.33
cents to the reichsmark)
PART I I . PAYMENTS RECEIVED FROM GERMANY THROUGH JUNE 3 0 , 1954 (AGREEMENT OF JUNE 2 3 , 1930)
T o t a l payments
r e c e i v e d a s of
June 3 0 , 1954
Army c o s t s ' ( r e i c h s m a r k s ) . . .
Mixed c l a i m s ( r e i c h s m a r k s ) .
51,456,406.25
37,210,000.00
Total (reichsmarks)
Payments of
principal
50,600,000.00
31,600,000.00
Payments of
interest
356,406.25
5,610,000.00
133,666,406.25
132,200,000.00
6,466,406.25
$33,587,809.69
Total payments (in U. S. dollars).
$31,539,595.84
$2,048,213.85
PART III. AMOUNTS NOT PAID BY GERMANY ACCORDING TO CONTRACT, JUNE 30, 1954 (AGREEMENT OF JUNE 23, 1930)
Funding agreement
Due date
Principal
Total to June 30, 1953, (reichsmarks)
Less cancellation of April 1,
19533
Moratorium
agreement
Total
Interest
30,580,989.00
2,093,639,614.00
30,580,989.00
1,211,849,614.00
Total (reichsmarks)
Total (in U. S. dollars, at 40.33
cents tp the reichsmark)
-392,190,000.00
259,963,625.00
33,050,000
38,050,000
32,202,125.00
20,792,031.25
997,400,000
Sept. 30, 1953 (reichsmarks)
March 31, 1954 (reichsmarks)
652,153,625.00
-489,600,000
921,300,000
Subtotal
1,410,900,000
312,962,731.25
30,530,989.00
1,340,943,770.25
• $402,251,420
$126,217,889.66
$12,333,312.86
$540,802,622.52
-881,790,000.00
70,252,125.00
58,342,031.25
PART IV. INDEBTEDNESS OF GERMANY UNDER THE AGREEMENT OF FEBRUARY 27, 1953, AS OF JUNE 30, 1954
Class
Mixed claims (U. S. dollars)
Indebtedness
as funded in
U. S. dollars
$97,500,000
Total
payments through
June 30, 1954
$6,000,000
Total
indebtedness
June 30, 1954
$91,500,000
^ Includes interest accrued xmder unpaid moratorium agreement annuities.
^ Includes 4,027,611.95 reichsmarks deposited by German Govemment in the Konversionskasse fxir Deutsche
Auslandsschulden and not paid to the United States in dollars as required by the debt and moratorium agreement .
3 Reduction of 439,600,000 reichsmarks xmder agreement of February 27, 1953, (24 bonds in the amount of
20,400,000 reichsmarks each) in exchanges for 26 dollar bonds ($97,500,000) of the Federal Republic of
Germany payable in U. S. dollars and due in installments on April 1 of each year until paid, (see Part IV).
339256
0-55-47
TABLE 1 17. --Summary of amounts billed, collected arid ba-lances due the United States under lend-lease and surplus property repayment a g r e e m e n t s (World War 11),
as of June 30, 1954
Collections
Country
Amount b i l l e d
(Net)
United Sta-tes
dollars (less
refunds)
Foreign
currency
00
Due United States
Other
credits
Advance
payments
by foreign
Governments
Due
this year
To be repaid
over a period
of years by
agreement
X
vn
Australia
Austria
Belgium and Belgian Congo
Burma
Canada
China
Czechoslovakia
Denmark
Ethiopia
Finland
France
Germany
Greece
Greenland
Hungary
Iceland
India
Iran
Iraq
Italy
Japan
Korea
Lebanon
Liberia
Luxerabourg
Middle East
Netherlands
Nev/ Z e a l a n d
Norway
Philippines
Poland
Saudi Arabia
Southern Rhodesia
Sweden
Thailand
Turkey
Union of South Africa....
Union of Soviet Socialist
Republics
$42 420,061.25
9' 926,435.08
114, 274,462.50
6. 244,079.26
3 8 8 758,509.03
85 179,153.13
755,058.02
218,032.26
558,958.37
429,205.57
1,111, 455,147.41
207 J518,.253.59
62, 844,431.50
•8,351.28
,114,557.34
855,981.42
240, 442,356.66
11' 342,707.95
54.00
246 231,503.12
034,716.93
14;
451,903.50
656,638.01
440,619.66
120.00
50 377,450.28
169, 800,240.77
A,935,238.23
21 076,124.16
5 000,000.00
,218,825.23
,158,129.77
,415,510.98
115,595.48
2,
048,773.88
7'
494,344.43
14'
774,297.35
117
$25,796,084.78
1,139,955.58
30,886,958.39
276,629,203.27
33,273,794.58
383,753,509.03
16,062,109.14
596,730.50
4,177,773.85
41,745.49
4,135,054.80
333,866,162.19
11,244,117.06
8,351.28
4,496,553.29
62,080,717.71
8,940,537.00
54.00
96,386,293.65
167,937.27
120.00
11,126,630.72
42,000,072.46
602,556.05
10,706,151.00
$2,113,074.09
1,937,500.00
6,035,892.83
3,241,910.88
1,062,961.45
456,770.00
1,990,965.94
42,337.42
578,036.44
692,567.69
49,013,124.92
$13,678,113.12
6,292,172.49
14,577,183.20
2,860,091.06
$832,739.26
556,307.01
62,724,428.08
142,077.32
$3,584,435.73
1,208,175.00
44,568,193.53
33,000,000.00
3,124,924.92
1,206,763.08
3,502,757.43
32,000.00
2,271,212.11
1,317,744.93
23,835,948.70
8,428,055.56
2,524,307.70
521,813.51
3,544,507.95
756,926.82
3,977,576.38
1,134,819.50
85,426.76
$3,126.86
$13,674,986.26
6,292,172.49
14,577,183.20
2,860,091.06
38,597,809.31
4,480,278.50
496,343.51
3,939,176.44
15,393,408.08
634,007,661.77
174,518,253.59
47,270,393.06
511,762.19
11,770,530.55
327,428.13
171,503,466.96
122,464,752.82
4,849,734.55
20,950,019.42
4,501,533.12
2,856,610.28
5,940,651.75
6,837,031.85
109,687,069.22
4,849,734.55
20,950,019.42
19,272,682.3
28,383,278.87
531,422.75
163,713.12
2,507,115.11
5,820,481.67
39,234,823.16
1,998,000.00
557,459.28
2,711,023.97
1,205,855.29
4,929,578.77
1,371,931.69
240,689.98
2,235,685.85
11,070,243.87
116,608,622.69
1,666,936.90
2,947,197.62
2,110,714.28
242,487.98
50,112.60
650,931.47
1,269,799.84
923,186.68
H
O
•n
72,701,479.72 31,309,524.65 .$2,794,145.76
313,667.55
5,104,400.13
310,454.08
21,509.90
541,150.99
22,797.58
3,939,176.44
15,393,408.08
634,007,661.77
174,518,253.59
47,270,393.06
12,794,054.93
327,428.13
176,005,000.08
2,902,170.95
X
97,418,889.44
3,243,850.15
7,495,236.07
1,287,029.60
31,061,896.51
15,158,129.77
GO
tn
9
tn
H
>-<
o
•n
m
19,272,682.39
97,418, 889.44
3,243, 850.15
7,495^ 236.07
1,287 029.60
32,468' 764.79
15,158 129.77
43' 579.29
157 806.00
1,214 958.94
1.44
44,
H
243,355,413.69 15,584,369.68
1,379,162.13
157,806.00
1,214,958.94
44,086.44
5,278,378.00
222,492,666.01
vn
>
Balances
Credits
Collections
Coxmtry
Amount billed
(Net)
United States
dollars (less
refunds)
Foreign
currency
Due United States
Other
credits
Advance
payments
by foreign
Government s"
--
Total
Past due^
Due
this year
To be repaid
over a period
of years by
agreement
United Kingdom and
Yxigoslavia
American Republics
American Red Cross
Federal agencies........
Military withdrawals....
Miscellaneous items
United Nations Relief and
Rehabilitation Adminis-
$971,027,133.32
963,376.50
136,676,660.05
2,023,386.90
242,452,491.94
187,629.76
1,472,077.38
7,226,762.25
Totals
4,743,735,103.77
$157,405,198.71 $16,687,407.24 $154,635,335.62
623,065.20
16,300.00
63,376.50
3,154,183.21
105,837,875.59 10,354,163.15
2,023,386.90
242,401,129.81
186,980.76
649.00
335,504.23
1,136,573.15
$3,763.89
$6^2,299,191.75
260,634.80
17,334,201.99 $4,017,235.39
5i,*362!i3
$642,299,191.75
260,634.80
13 316 966.60
$51,362!13
7,226,762.25
1,789,937,577.48 223,099,990.39
321,989,043.97 3,589,966.24 2,412,298,458.17 65,147,273.21' 17,432,546.83 2,329,718,638.13
• Represents cash received from foreign governments in excess of billings under cash advance agreements.
'
^ The majority of items listed as past due represerit billings considered past due as of July 1, 1953, and also, items which are the subject of negotiations between
the foreign governments and the Department of State.
>
GO
I—'
720
1954 REPORT OF THE SECRETARY OF THE TREASURY
TABLE 117.--Summary of amounts billed, collected, and balances due the United States under lend-lease
and surplus property repayment agreements (World War II), as of June 30, 1954--Continued
Accounts receivable involving—
Lend-lease
settlement
agreements
Australia
Austria
Belgium
China
India
711,753.36
;
42,667,083.76
5,900,000.00
Sweden
Thailand
Total
20,213,406.45
31,398.66
Germany
Greece
Hungary
Union of South Africa
Union of Soviet Socialist
Republics
United Kingdom
Yugosla-via
American Republics
Federal Agencies
$8,374,346.11
5,104,400.13
541,150.99
326,647,534.68
Liberia
Middle East
Netherlands
New Zealand
Norway
Philippines
Poland
Saudi Arabia
Other
lend-lease
accoxmts
$52,483,073.27
Denraark
Ethiopa
Finland
Italy
Japan
Surplus
property
agreements
$5,303,267.01
6,292,172.49
14,577,183.20
2,860,091.06
Country
3,857,777.78
15,393,403.03
307,360,127.09
174,513,253.59
47,270,393;06
12,794,054.93
327,428.13
10,792,424.24
2,100,417.59
122,464,752.82
4,849,734.55
20,950,019.-42
14,405,251.98
3,243,850.15
1,595,236.07
1,287,029.60
32,468,514.79
165,212,575.84
90,000.00
19,272,682.39
15,996.40
40,346,553.70
250.00
15,158,129.77
43,579.29
157,806.00
1,214,958.94
44,036.44
236,244,534.76
531,328,484.63
260,634.30
16,214,824.65
1,212,544,322^57
Total
$13,678,113.12
6,292,172.49
14,577,183.20
2,360,091.06
72,701,479.72
5,104,400.13
541,150.99
3,939,176.44
15 393 408 08
634,007,661.77
174,518,253.59
47,270,393.06
12,794,054.93
327,428.13
176,005,000.08
2,902,170,95
122,464,752 32
4 849,734 55
20,950,019.42
19,272,632.39
15,996.40
97,413,889.44
3,243,850.15
7,495,236.07
1,287,029 60
32 468 764 79
15,158,129.77
43 579 29
157,806.00
•1,214,953.94
44,086.44
1,730.33
1,117,597.01
51,362.13
243,355,413.69
642,299,191.75
260 634 80
17,334,201.99
51 362 13
856,118,550.33
343,635,585.22
2,412,293,453.17
43,200,757.70
7,110,873.93
62,769,949.42
721
TABLES
TABLE 118.--Outstanding indebtedness of foreign countries on U n i t e d S t a t e s Government c r e d i t s , a s o f June
30, 1954, by a r e a , country, and type
[In millions of doUars]
•ExportImport
Bank
Area and coxmtry
//estern Europe:
Austria
5elg:.um and Luxembourg
Germany (western)
Gree(!e
Icpliind
.. ..
.
•
6
75
16
37
1,003
13
43
74
35
7
12
It&lr
Port-igal.
Spain
Turk ^y
Unit 3d Kingdom
Yugo slavia
Lend-lease,
surplus property, and
settlements
for grants^
Mutual
security
6
63
33
233
25
2
5
128
98
150
60
39
49
20
35
392
55
To tal Western Europe
1,438
Total
8
15
1
19
670
1,171
66
(*)
153
98
11
(*)
4
642
3,614
2,863
3,614
(-)
1,387
Other
credits
13
153
50
106
1,911
1,196
81
6
128
300
322
106
46
61
21
95
4,648
55
9,302
Other Europe:
Poland
U.S.S.R
5
13
32
222
Tctal Other Europe
Asia:
Afglanistan
Chira
..
India
^8
53
311
1
20
33
Irar
Isr£ el
Japsn
5
13
70
222
273
38
123
172
57
24
190
17
123
35
5
21
15
Pak-i Stan
Phij.ippines
3
15
4
333
Tcital Asia
65
4
223
65
424
10
9
1
Othdr Asia.
4
21
156
361'
127
24
123
90
21
15
79
24
5
1,046
Latin jlmerica:
Bol- via
Bra'sil
Chi Le
Colombia
•
Hai ti.-.
96
34
430
79
.33
6
12
17
9
13
Peru
115
16
11
7
6
1
371
Africa:
Egypt
Literia
Rhcdesia and Nyasaland
French Morocco
Fooinotes at end of t a b l e .
(*)
(*)
()
*
2
1
()
*
()
*
16
13
6
2
23
4
20
19
10
^
96
34
437
79
33
6
12
17
9
18
115
18
12
7
6
17
916
6
22
23
10
722
1954 REPORT OF THE SECRETARY OF TI-IE TREASURY
TABLE 1 18.--Outstanding indebtedness offoreign countries on United States Government c r e d i t s , a s of June
30, 1954, by a r e a , country, and type--Continued
[In milUo ns of dollars]
Area and country
ExportImport
Bank
Lend-lease,
surplus property, and
settlements
for grants^
Mutual
security
Other
credits
Total
Africa—Continued
75
(-)
(*).
8
84
4
37
24
2
Other Africa
14
3
2
75
12
()
*
17
4
149
Oceania:
2
2
15
5
20
11
International organizations
Total all areas
"1
1
62
2,765
1,667
3,624
62
3,761
11,316
S o u r c e : U. S . D e p a r t m e n t of Commerce.
*Less than $500,000.
\ Data on lend-lease, surplus property, and settlements for grants include approximately $1,268,000,000 for
sxur.plus property and other credits outstanding and administered by Federal agencies other than the Treasury
Department, and exclude about $54,000,000 in defaulted short-term "cash" credits and past due interest.
723
TABLES
PERSONNEL
TABLE I 19.--Number of employees i n t h e d e p a r t m e n t a l and field s e r v i c e s o f t h e
q u a r t e r l y from June 30, 1953, to June 30, 1954
June 30,
1953
Office of the Secretary
Comptroller of the Cui-rency,
Engraving and Printing, Bureau of.
Fiscal Service:
International Finance, Office of..
U. S. Coast Guard
U. S. Savings Bond Division
U. S. Secret Service
Total civilian employees
Military employees—U. S. Coast
Guard
Grand total
NOTE.—The
quarter.
^ Includes
^ Includes
^ See note
Sept. 30,
1953
Dec. 31,
1953
Mar. 31,
1954
TreasuryDepartment
Increase, or
June 30, decrease (-),
1954
since June
30, 1953
518
520
512
507
507
1,083
8,781
5,614
1,099
8,452
1 5,339
1,109
8,317
5,160
1,104
8,281
4,938
1,109
8,325
4,701
2 3,123
3,304
• 1,179
2 55,913
147
945
371
4,992
592
569
2,589
3,411
1,149
51,590
143
883
373
4,963
583
567
-157
78
-62
-1,653
-17
-128
-4
-879
-55
-210
-11
26'
-456
-913
2,746
3,439
1,211
53,243
160
1,011
377
5,342
638
777
2,630
3,328
1,195
51,312
157
973
378
5,107
621
^ 591
2,546
3,223
1,198
51,168
152
957
376
4,959
603
580
35,490
81,702
80,865
85,965
80,393
-4,597
34,491
34,894
32,967
30,339
29,154
-5,337
119,981
116,596
113,832
116,354
110,047
-9,934
figures in t h i s table show the actual number of paid employees for the l a s t month in each
152 guards transferred from U. S. Secret Service, effective July 1, 1953.
seasonal employees.
1.
INDEX
Accounting and financial reporting. Government;
Page
Accounting systems and procedures
101
Cash deposits and withdrawals
97, 99^ 384,385,387
Cash transactions, reports
98,386
Central accounting plan and progress
99,100, 387-391
Central reporting and accounting changes
97-101
Checking accounts, procedural changes
100
Comptroller General of the U. S., role in new reporting system . . . . . . . .
98
**Daily Statement of the U. S. Treasury, *' changes
97-99, 384-387, 407
Deposit of public moneys and payment of Government checks
398-400
Direct deposit of collections
100,104, 391-394
Disbursing officers, procedural changes
100, 386,391
Foreign currencies and credits acquired from property disposal
and lend-lease settlements
102, 397, 718
Foreign exchange acquired without purchase with
dollars
97,101, 394-397, 713-715
General Accounting Office audit activities
98, 384
Integration of agency-Treasury data
98,383, 386,387
Joint Accounting Program
97, 98,382
**Monthly Statement of Receipts and Expenditures
of the U. S. Government'*
5, 7,16,18, 97, 98, 385,407
Printing economies
^....
99
Receipt and expenditure reports, joint proposal to improve, Oct. 5,
1953
382-384
Regulations relating to
386, 391,394, 397, 398
Statements by officials relating to
,
382, 385, 387
Treasury reporting changes, Feb. 17, 1954
16, 97-99, 385-387
Accounts, Bureau of:
Accounting and reporting developments
97
Administrative report
97-113
Commissioner, functions delegated to
375
Employees, number of, quarterly, June 30, 1953 to 1954
723
Liquidation of certain agencies, delegation of authority
113
Management improvement program
* 67,107
Accountstibroughwhich Treasury operations are effected, description
409
Actuary, Government
106
Adjusted service certificate fund:
^
Certificates of indebtedness issued to:
Interest, computed rate
471
Issues and redemptions:
1953 and 1954 and monthly 1954
520, 521, 524
1954
531
725
726
INDEX
Adjusted service certificate fund—Continued
Certificates of indebtedness issued to--Continued
Outstanding:
Page
1953 and 1954, June 30
472, 531, 586
1954, June 30
471, 486
Description,
,
486
Investments
582, 586
Receipts and Expenditures:
1946-54
o
447
1953 and 1954 and monthly 1954
436,438
1954 and cumulative
586
Statement
586
Administrative and staff officers of Treasury Department.
XV
Administrative Assistant Secretary, personnel security cases, final actions on .
375
Admissions tax
„
243, 244, 246, 284, 450, 457
Agricultural adjustment taxes 1934-36
458
Agricultural conservation program expenditures
424
Agricultural Marketing Act:
Income and expense
o
638
Securities for loans, owned by U. S
,
656
.Agricultural Marketing Service expenditures
426
Agricultural Research Service expenditures
424
Agriculture and agricultural resources, expenditures
17,445
Agriculture, Department of:
Expenditures:
1947-54
445
1951-54 and average for 1947-50
17
1953 and 1954 and monthly 1954
,
424-427
1954 and estimates 1955 and 1956
18,451
Grants to States and local units:
1930, 1940, 1950, and 1954 by appropriation
titles
682
1954 by States and programs
688
Payments to individuals, e t c . , within States:
1930, 1940, 1950, and 1954 ^y appropriation
tities
685
1954 by States and programs
697
U. S. Government corporations, e t c . :
Balance sheets
618, 624
Capital stock owned by U. S
619
Income and expense
630, 636
Source and application of funds
640,646
Ainsworth Library fund, Walter Reed General Hospital;
Investments
582, 587
Statement of receipts, expenditures, and assets
587
Air Force, Department of, expenditures:
1947-54
419,444
1953 and 1954 and monthly 1954
428
Payments to individuals, e t c . , within States;
1950 and 1954
686
1954 by States
697
Airplanes and passengers entering U. S
679
Alaska Railroad retirement fund;
Investments o,
582
Treasury notes issued to, outstanding June 30, 1944-49
472
Alcohol taxes
8, 12. 14,125, 245. 455
Alien property trust fund . . »
582
American-Mexican Claims Commission
112, 705
Anglo-American Financial Agreement
60,110,133, 656
INDEX
727
Army, Department of;
Expenditures:
Page
1789-19S4
415
1947-54
444
1953 and 1954 and monthly 1954
428
Grants to States and local units by;
Appropriation
titles
682
States
690
Payments to individuals, e t c . , within States;
1930. 1940, 1950, and 1954 by appropriation
tities
686
1954 by States
698
Hospital fund. Office of Surgeon General, investments made by Treasury 1944-54
583
Securities for loans, owned by U. S
655, 657
World War II guaranteed loans;
Balance sheet
624
Source and application of funds
646
Assistant Secretary of the Treasury, new statutory position
68
Assistant Secretary of the Treasury Overby:
Remarks;
Dec. 16, 1953, before the U. S. Council of the International Chamber of Commerce
309
May 17, 1954, before the Milwaukee Association of Commerce and
Milwaukee World Trade Club
305
Assistant Secretary of the Treasury Rose;
Statements:
May 17, 1954 before the World Trade Conference
297
June 22, 1954, before the House Ways and Means Committee, on
customs simplification
301
Atomic Energy Commission expenditures
16,18,330,422,444,451
Automobiles, trucks, tires, inner tubes, e t c . , taxes
244,245,449,456
Awards program for suggestions by employees
66,107
B
Banking system (see also Commercial banks; Federal Reserve Banks) governmental security holdings;
Federal securities:
1941-54, June 30
36, 574
1954, June 30, chart
37
1954 changes in types
39
Increase 1954
35
Percent of debt outstanding June 30, 1941, 1953, 1954, and Feb. 28,
1946
36
Nonguaranteed securities of Federal instrumentalities June 30, 1941-54 . .
575
State and local government securities June 30, 1941-54
575
Banks. (See specific classes.)
Banks for cooperatives:
Balance sheet
620
Capital stock owned by U. S
4 1 , 321, 654
Income and expense
632
Investments;
1944-54
584
1953 and 1954
442
Repayments
654
Source and application of funds
642
728
INDEX
Page
Bases of tables, explanation
407
Bills. Treasury:
Engraved, printed, and delivered
88
Exchanges
497-514, 522
Interest (discount);
Computed charge and rate, June 30, 1939-54
566
Computed rate
471
Due and payable 1951-54
568
Rates on issues
29,189
Investor classes;
1953 and 1954, June 30
578
1954 changes
,
39
Issues and redemptions;
1953 and 1954 and monthly 1954
518-521
1954
28,189,497-514, 526, 540
New money sources 1954
28
Outstanding:
1944-54, June 30
472
1953 and 1954, June 30
23, 28, 526, 540,578
1954, June 30
471.476,490,540,542
Description
476
Limitation, statutory
467
Press releases, issue of June 24, 1954
185,186
Regulations amended
191-193
Tax Anticipation Series;
Interest (discount) rates on issues
29,190
Issues and redemptions 1954
29,190,
500,509,510, 514, 526, 541, 542
New money sources
29
Outstanding, June 30, 1953
526, 541
Press releases, issue of April 27. 1954
186-188
Bonds, issues of capital stock, deeds of conveyance, e t c . , taxes
245,449
Bonds, U. S. Government;
Adjusted service;
Interest due and payable 1951-54
568
Issues and redemptions:
1953 and 1954 and monthly 1954
518, 519, 522
1954
535
Outsunding June 30;
1953 and 1954
535
1954
472,490
Armed forces leave;
Interest due and payable 1951-54
568
Outstanding June 30;
1947-51
472
1953 and 1954
535
1954
490
Redemptions:
1953
519
1953 and 1954 and monthly 1954
522
1954
535
Bank eligible bonds. (See Treasury bonds.)
Bank restricted bonds. (See Treasury bonds.)
Conversion, outstanding June 30, 1944-46
472
INDEX
Bonds, U. S. Government--Continued
Depositary:
Interest:
Computed rate
Due and payable 1951-54
Investor classes June 30, 1953 and 1954
Issues and redemptions;
1953 and 1954 and monthly 1954
1954
Outstanding;
1944-54, June 30
1953 and 1954, June 30
1954, June 30
Description
Limitation, statutory
Engraved, printed, and delivered
Excess profits tax refund;
Issues and redemptions;
1953 and 1954 and monthly 1954
1954
Outstanding;
1944-54, June 30
1953 and 1954, June 30
1954, June 30, and description
Limitation, statutory
Investment series. Treasury bonds;
Exchanges
Interest;
Computed rate
Due and payable 1951-54
Investor classes
Issues, 1953
Outstanding:
1948-54, June 30
1953 and 1954, June 30
1954, June 30
Description
Limitation, statutory
Redemptions:
1953 and 1954 and monthly 1954
1954
Liberty, outstanding June 30, 1954, and redemptions
Panama Canal outstanding:
1944-54, June 30.
1953 and 1954, JuneSO
1954, June 30, description
Postal savings:
Interest due and payable 1951-54
Outstanding;
1944-54, June 30
1953 and 1954. June 30
1954, June 30
Description
Redemptions 1954
Postal savings and Panama Canal:
Investor classes, June 30, 1953 and 1954
Limitation, statutory, not subject to
729
Page
471
568
578
518, 519,522
498-515. 531
472
30, 531, 578
471,485
485
467
88
518, 519, 522
543
473
543
491
467
29, 519,498-515, 522
471
568
39, 578
519
472
30, 531, 578
22,471,485
485
467
522
29, 30,498-515, 531
533
472
529
479
568
472
529, 533
479,490
479
497, 505, 529, 533
578
467
730
INDEX
Bonds, U. S. Government--Continued
Savings;
Page
Advertising donated
,
157
American Bankers Association program
158
Duplicate bond applications
118
Exchanges
201, 516, 518, 519, 522
Held by Treasurer of U. S. for depositors
124
Interest or accrued discount:
Accruals on bonds redeemed and outstanding;
1942-54 and monthly 1954, Series E through K by
series
548-551
1953 and 1954 and monthly 1954
522
Checks issued on income type bonds
118
Completed charge and rate, June 30, 1939-54
566
Computed rate
471
Due and payable 1951-54
568
Investor classes;
1953 and 1954, June 30
578
1954, June 30
35
1954 changes in holdings
39
Issues:
1935-54
31, 547
1941-54
481
1951-54, chart
31
1953 and 1954 and monthly 1954
518, 519
1954
30,116.497-515, 529, 535
E through K by series 1941-54 and monthly 1954;
Amounts
548
By denominations, amounts and pieces
552
Series E and H
,..;
22, 30,156, 548, 556
Series F, G, J, and K
32, 548
Issuing and paying agents for Series A-E
118
Limitation on holdings
207
Lost, e t c . , applications for duplicates
118
Objectives of sale
156
Optional extension plan, bonds held
31
Outstanding:
1944-54, June 30
472
1951-54, June 30, chart
31
1953 and 1954, June 30
30, 529. 535, 578
1954, June 30
22.116, 471, 481. 490
Description
481
E through K by series 1941-54 and monthly 1954
548
Limitation, statutory
467
Series E and H, June 30, 1954
156, 548
Series F, G, J, and K
548
Payroll savings plan;
Bonds, number, issued to Federal employees
104
Companies operating, 1950-54, agents for
118
Expansion
157
Records of sales and redemptions
116
Redemptions:
1935-54
31, 547
1941-54
481
1951-54, chart
31
1953 and 1954 and monthly 1954
522
INDEX
731
Bonds. U. S. CJo vernment--Continued
Savings- -Continued
Redemptions- -Continued
E through K by series 1941-54 and monthly 1954?
Page
Amounts»o«»... o
oooo
o. o • . o . » . . . , • . » .
548
Pieces by denoniinations «o o » . . « » , • o..».««
»..».»
554
Percent sold in each year redeemed each year thereafter, by
serieSo.,.,. o«...»o
o.o
».....«.«.
32, 557
Series E and H
•. o.»»«,.. o o
o.o....
30,32,548
Series F, G, J, and K, „
32,548
Regulations amended
o. •
203-209
Reinvestment of Series F and G at maturity «
201
Retirement and reissue transactions, revised procedure, « . . . . . . . . . .
114
Series E;
Additional denomination of $100, 000 authorized »
203
Issuance authorized to trustees of employees' savings plan « . , .
203
Offset printing of $25 denomination,
202
Thrift promotion».. o
o
156
Withdrawal from sale at certain local post offices ,
67, 201
Treasury:
Bank eligible;
Investor classes. June 30, 1953 and 1954 ,
578
Outstanding?
1944-54, June 30
472
1953 and 1954, June 3 0 , , , . . . . .
23.578
Limitation, statutory «o
467
Bank restricted;
Dates of bank eligibility of certain bonds
«
23, 579
Investor classes, June 30, 1953 and 1954 «
578
Outstanding;
1953 and 1954, June 3 0 . . . . . . .
23,472,578
Limitation, statutory.
o
467
Exchanges
.25. 26. 28,167,171,176,180,183,500,507,512,522
Interest;
Computed charge and rate, June 30, 1939-54
566
Computed rate
o . . . ..o.
471
Due and payable 1951-54
„
568
Investor classes:
1953 and 1954, June 30
,
578
1954 c h a n g e s . . ,
39
Issues;
1954.
,o
24,27.503,504,507,518-520,528
By Federal Reserve districts
183
Cash offerings
-.
22-24, 26
Circulars on
„. 177,178,180
New money sources
22 -24, 26
Outstanding:
1944-54, June 30 ,
472
1953 and 1954, June 30
23,528,534
1954, June 30.
471,477,490
Description
„
477
Limitation, statutory
467
Prices and yields:
1953 and 1954, June 30, and price range since first t r a d e d . . . .
572
Yields, monthly, and annual averages 1930-54
570
732
INDEX
Bonds, U. S. CJo vernment--Continued
Treasury- -Continued
Redemptions:
Page
1953 and 1954 and monthly 1954
<.«. .521
1954 by issues
26,500,507,512,514,528,534
Calls for redemption
23, ^7,184
Bowling alleys and billiard and pool tables taxes
.^ 246,450
Bretton Woods Agreements Act, gold price, determination affected by
290
Budget (see also Expenditures; Receipts):
Accounts, explanation,
409
Estimates:
1955 and 1956, expenditures
>...
17,18,451
1955 and 1956, receipts ,
10-15,449
Expenditures and receipts:
1951 -54, chart
o
o
o
6
1954..
330
Objectives and programs
1,220
Budget and Accounting Procedures Act of 1950:
Joint accounting improvement program
97^ 101,382e 384,386-388
Warrant procedures, modification ,
388
Budget, Director of the Bureau of:
Joint proposal Oct. 5, 1953, with the Secretary of the Treasury and the
Comptroller General to improve receipt and expenditure reports
382
Joint statement Feb. 17, 1954, with the Secretary of the Treasury and
the Comptroller General relative to changes in Treasury reporting . . . .
385
Building and savings and loan associations, agents for Series A-E savings
bonds
„,
118
Cabarets tax..
,
•
244,246,450,457
Canal Zone Postal Savings System:
Funds due depositors:
1944-54, June 30
......o..
475
Description
496
Investments made by Treasury 1944-54.
582
Treasury notes issued to:
Interest, computed rate,
471
Outstanding:
1944-54, June 30
472
1954. June 30
471,486, 531
Description
486
Canal Zone retirement fund:
Investments
582
Treasury notes issued to, outstanding June 30. 1944-49
472
Capital stock tax
454
Capital transfers deducted from budget receipts and expenditures
418
Carriers Taxing Act taxes. (Sge Social seciurity program. Receipts.)
Cash deposits and^ withdrawals, reporting. (See Accounting and financial
reporting. Government.)
Cash income and outgo
97, 99, 382, 384. 385. 407. 453. 463
Cash room. Treasurer of U. S., checks, etc., deposited for collection
123
Cash transactions. Government, regulations governing reports
386
Central accounting, (See Accounting and financial reporting. Government,)
Central Bank for Cooperatives, debentures engraved, printed, and delivered .
88
Central Branch Union Pacific Railroad, amoimt due U. S
657
INDEX
7 33
Central reporting. (See Accounting and financial reporting, (Jovernment.)
Certificates of indebtedness:
Page
Engraved, printed, and delivered
88
Exchanges
26,27,28,167,170,174,176,180,183,498,507,512,522
Interest:
Computed charge and rate, June 30, 1942-54.
,
566
Computed rate
471
Due and payable 1951-54
568
Payments«
16
Investor classes:
1953 and 1954, June 30«
5 78
1954 changes . o . . . . . . . . . ,
39
Issues and redemptions:
1953 and 1954 and monthly 1954
518-521
1954
24-28,165-170,498,500,507, 512,513,527,538
Circular on May 17, 1954, issue
167
Issues by Federal Reserve districts.
170
Summary of information in circulars»
169
Outstanding:
1953 and 1954, June 3 0 .
23,472,527,538,578
1954, June 30
471.476,490
Description
476
Limitation, statutory
467
Prices and yields, June 30, 1953 and 1954
573
Special short-term, issued and redeemed
.,
34,517
Tax Anticipation Series:
Circular on July 15, 1953, issue
165
Issue;
1954 e .
*
o
24,25,497
By Federal Reserve districts.
166
New money source
22-24
Redemptions..
509
Certificates of interest. Commodity Credit Corporation.
17
Chans:
E and H bonds 1951-54.,
31
Federal budget picture 1951 -54
„
6
Organization of Treasury Department, Dec. 10, 1954
, „..
XX
Ownership of the debt, June 30, 1954
37
Structure of the debt, June 30, 1954
22
Trends in the Federal debt, 1946-54
21
Checks:
Claims for proceeds, paid on forged endorsement •
123
Deposit account. Chief Disbursing Officer authorized to sign
380
Foreign, withheld in certain a r e a s , ,
112
Outstanding, clearing account
412
Payment, regulations governing
398-400
China, foreign assets control regulations,
,
61
Cigar taxes
245,449,455
Cigarette papers and tubes taxes
,,
449
Cigarette taxes
244, 245,449,455
Circulars, Department, Nos.;
176, revision, Apr. 26, 1954, regulations governing deposit of public
moneys and payment of (k)vernment checks
,
398
418, amendment, July 3, 1953. Treasury bills
191
418. revision. Feb. 23, 1954, Treasury bills
191
339256 O - 55 - 48
734
INDEX
Circulars, Department, Nos.--Continued
Page
530, amendment, Feb, 23, 1954, U„ S. savings bonds
oc«..„
206
530, amendment, May 25, 1954, U. S. savings bonds , ,
208
653, amendment, Feb, 23, 1954, Series E, U. S, savuigs bonds
203
799, revision, Oct, 1954, regulations for administration of foreign
currencies and credits under disposition of surplus property abroad
and lend-lease settiements
".. o , , . , , . . ,
397
922, amendment. Sept, 25, 1953, withdrawal of Series B Treasury
savings notes , „ , . . . , , , . .
,,,......
194
925, July 6, 1953, tax anticipation certificates, Series C-1954 . , . , , . , .
165
929, Sept. 2, 1953, Treasury notes, Series A - 1 9 5 7 , o . , „
171
930, Oct, 19, 1953, regulations governing the purchase, custody,
transfer, and sale of foreign exchange by executive departments
and agencies
, , . . o,
, .,•.,,.,..
394
931, Oct. 1, 1953, offering of Series C Treasury savings notes . . . . . . . . .
194
932, Dec. 1, 1953, regulations governing the making of loans to
public or private agencies of the U. S,
400
933, Oct. 28, 1953, Treasury bonds of 1961^
„
177
935, Nov. 18, 1953, Treasury bonds of 1958 (additional issue)
178
936, Nov. 18, 1953, Treasury notes. Series B-1954 . . . . . . . ,
172
937, Jan, 18, 1954, .regulations governing the direct deposit of
collections by certain departments and agencies
,.,.
391
939, Feb. 1, 1954, Treasury bonds of 1961
180
940, Feb. 17, 1954, regulations. governing reports of certain cash
transactions of U, S, (Government
386
941, Apr, 1, 1954, regulations goveming Federal .Housing
Administration d e b e n t u r e s , . . . »
209
943, May 4, 1954, certificates of indebtedness, Series B-1955
167
944, May 4, 1954, Treasury notes, Series A - 1 9 5 9 . . . ,
174
945, statement. May 11, 1954, system of central accounts for
U. S. (jovernment , . . . „ . . . „ „
.,
387
Civil Aeronautics Administration and Board expenditures . „
426
Civil defense procurement fund
422
Civil Service Commission expenditures
,...,
18, 422,451
Civil service retirement fund;
Certificates of indebtedness issued to:
Issues 1953 and 1954 and monthly 1954
520, 521
Issues and redemptions 1954
531
Outstanding:
1953 and 1954, June 30.
472, 531, 588
1954, June 30
.......
486
Description , . »
„
486
Receipts and expenditures:
1953 and 1954 and monthly 1954
434,436
1954 and cumulative
,
588
Redemptions
,
525
Investments
,
•
582,588
Statement
588
Treasury notes issued to;
Interest, computed rate.
471
Issues and redemptions:
1953 and 1954 and monthly 1954.
521, 524
1954
oo
531
Outstanding:
1944-54, June 30
472
1953 and 1954, June 30
531, 588
INDEX
735
Civil service retirement fund--Continued
Treasury notes issued to--Continued
Outstanding--Continued
P^g^
1954, June 30
471, 486
Description
486
Claims of nationals. (See Nationals, U. S.)
Classified security information, delegations and instructions
365-375
Clearing account for outstanding checks, etc
412
Club dues and initiation fees, taxes
244. 246, 450,458
Coconut, e t c . , oils processed, taxes.
.^
450
Coin-operated amusement and gaming devices, taxes
246, 450
Coins. (See Money.)
Collection and deposit of funds
120
Collection basis of data
408
Commerce, Department of:
Expenditures:
1953 and 1954 and monthly 1954
426
1954 and estimates 1955 and 1956
18,451
Grants to States and local units by:
Appropriation titles
682
States
,
690
Payments to individuals, e t c . , within States:
1950 and 1954
685
1954
697
U. S. Government corporations, e t c . :
Balance sheets
618, 624
Capital stock owned by U. S
619
Income and expense
630, 636
Source and application of funds
640, 646
Commercial banks:
Depositaries for receipt of public moneys
,..
12,102, 319, 580
Security holdings (governmental):
Federal securities:
1941-54, June 30
,
,
574
1941-54, selected dates.
„.......,...,
36
1953 and 1954, June 30, by type of issue
578
1954 changes in types ..,
....
38, 39
1954, June 30, chart
,.
37
Nonguaranteed issues of Federal instrumentalities, June 30, 1941-54
575
State, local, and tenitorial government securities,
June 30, 1941-54
,
<
.
...............
575
Tax and loan accounts, Treasury
25, 28, 29,103, 580
Commodity Credit Corporation:
Appraisals of assets and liabilities
107, 652
Balance sheet
618
Borrowing power
,
40, 608
Capital impairment, restorations
,
107, 652
Capital stock owned by U. S. ,
619, 654
Certificates of interest
„
17
Expenditures, 195(f and 1954. „
17, 426
Federal aid to States
,
697
Income and expense
630
Interest paid to Treasury
108, 659
Obligations:
Held by Treasury:
1944-54, June 30.
.^
610
1953 and 1954, June 30.
..
615
736
INDEX
Commodity Credit Corporation--Continued
Obligations--Continued
Held by Treasury--Continued
Page
1954, June 30
608, 612, 654
Cancellations ,
108, 615, 652
Description
612
Transactions
615. 654
Held outside Treasury;
1944-52, June 30
474
1954, June 30
494
Market transactions (net) 1953
440
Source and application of fiinds
640
Stamtory debt retirements from capital repayments
545
Commodity Stabilization Service expenditures
426
Comptroller General of the United States:
Audit responsibilities under Budget and Accounting Procedures Act of
1950
,
97. 384
Joint proposal Oct. 5, 1953, with the Secretary of the Treasury and
the Director of the Bureau of the Budget to improve receipt and
expenditure reports ,
382
Joint statement Feb. 17, 1954, with the Secretary of the Treasury
and the Director of the Bureau of the Budget relative to changes in
Treasury reporting
385
Comptroller of the Currency, Bureau of:
Administrative report
69-71
Employees, number, quarterly June 30, 1953 to 1954
723
Retirement fund, investments made by Treasury 1944-49
582
Contipgent liabilities of U. S., certain:
Description.
496
Outstanding, June 30, 1944-54
475
Contracts (war), renegotiation
„
444
Contributions and donations.
106,450
Corporation income and excess profits taxes:
Collections:
1929-54
„
454
1947-54
444
1953
287
1953 and 1954
7, 8.126,420
1954 and estimates 1955 and 1956
11,13. 219i 449
Mills plan, effect.
,
5
Payments, acceleration
5, 8,11,14,47, 218, 235, 285
Proposed legislation .,
„
449
Rate continued
247. ^ 8
Corporations, governmental security holdings:
Federal securities:
1941-54, June 30 . . ,
,
36,574
Decrease 1954
37
Nonguaranteed securities of Federal instrumentalities, Jiine 30, 1941-54.
575
State, local, and tenitorial governraent securities, June 30, 1 9 4 1 - 5 4 . . .
575
Corporations and certain other business-type activities of U. S. Govemment
(see also specific corporations):
Advances by Treasury 1954
,
,,
40
Assets, liabilities, and capital
4 1 , 616, 618-629
Balance sheets
,
618-629
Borrowing power
,
,
40, 608
Capital stock owned by U. S
,
4 1 , 619, 621. 623, 654
INDEX
737
Corporations arid certain other business-type activities of U. S.
Government--Continued
Page
Dividends, interest, e t c . , paid to Treasury
41,659
Income and expense
k
630-639
Interest rates adjusted to interest cost to Treasury
40
Investments in public debt securities
442,448
Obligations:
Guaranteed, held outside Treasury:
1934-54, June 30
413,468
1944-54, June 30, by agencleSc
474
1953 and 1954, June 30
,
21, 578
1954, June 30
,
,
494,608
Calls for redemption
211. 212
Description
,.............
494
Interest:
Computed rate.,.
471
Paid 1940-54 by tax sutus
569
Investors June 30, 1953 and 1954
....o....
578
Limitation, sututory ,
34,467,468
Market transactions (net):
1947-54
465
1953 and 1954 and monthly 1954 by agencies
440
Held by Treasury:
1944-54, June 30, by agencies ,.
,.,
610
1953 and 1954, June 30
615
1954, June 30
608, 654
Cancellations
615, 652
Description
612
In safekeeping by Treasurer of U. S
124
Repayments and refunding
615
Transactions
615, 654
Interest rates
40
Not guaranteed, held outside Treasury:
Bank and nonbank investors, June 30, 1941 -54 , ,
575
Market transactions (net):
1947-54
465
1953 and 1954 and monthly 1954 by agencies
440
Tax status and Investors, June 30, 1941-54
576
Outstanding
,
40,42, 608
Partially owned, checking accounts with Treasurer of U. S.
(net expenditures)
438
Sources and application of funds
640-651
Summary for 1954
40-43
U. S. investment in
41,619,621,623.626,627
Corps of Engineers, expenditures
428
Counterfeiting:
Authority related to, delegated
379
Laws, e t c , violations investigated
160
Counterfeit money seized
,
160
Credit agencies. (See Corporations and certain other business-type
activities of U. S. Govemment.)
Credit unions, agents for issuing and redeeming Series A-E savings bonds . . . . .
118
Criminal cases, functions relating to compromise delegated
380
Cumulative sinking fund. (See Sinking fund, cumulative.)
Currency. (See Dollars; Foreign currencies; International financial and
monetary developments; International Monetary Fund; Minor coin;
Money; Paper currency.)
7 38
INDEX
Customs:
Page
Agency Service
80, 667
Antidumping:
Changes proposed in law
,
304
Countervailing duty and convict labor enforcement
75
Appraisement of merchandise
74, 667
Backlog of unliquidated or unsettled entries
298, 301
Bureau of:
Administrative report
72-"87
Commissioner, functions delegated to
375, 376
Cost of administration
83, 668
Employees, number of, quarterly June 30, 1953 to 1954
723
Expenditures . ,
430. 667, 668
Extent of operations
74
Law enforcement activities
80, 680
Legal problems and proceedings
80
Management improvement program
66, 83*87, 301
Office of Deputy Commissioner (Tariff and Marine Administration) established
376
Officers designated and order of succession
360, 361
Classification and valuation of merchandise
74, 302
Collections:
1789-1954.
414
1947-54
444
1953 and 1954
7,10, 72,420,460
1954
667
1954 and estimates 1955 and 1956
11,13,15,450
By commodities and countries
73
By districts
, 73, 668
By tariff schedules
673
Drawback transactions
74,460, 667, 668, 679, 680
Excess tax deposits, Commissioner authorized to refund
376
Export control
76
Imported articles, classification
74, 302
Information Exchange
75, 667
Investigative and patrol activities...
681
Laboratories
75
Marine activities, documentation, etc
77-80
Merchandise entries
74, 298, 678
Persons and vehicles entering U. S
74, 678
Ports and stations, changes in
83
Procedures:
Accounting changes and recommended changes
299, 300
Significance to world trade
297
Protests and appeals
76
Refunds and drawbacks
420, 460, 667, 668
Seizures
,
680, 681
Simplification Acts of 1953 and 1954
66, 80, 83, 299, 301
Statistics
460, 667
Tariff schedules, revisions proposed
302
Technical services
75
Watch movements, insular possessions
304
Workload
298
Czechoslovakia:
Foreign assets control
61,134
International Monetary Fund membership.
59
INDEX
739
D
' ' Daily Statement of the United States Treasury'':
Page
Account of the Treasurer of the U. S
o. . . . , . . * . . . . o , . o . . , , , «
19
Basis of data
,
..,..,,.
18, 407
Changes i n . ,
,..,..
.,..«.
97-99, 384-387, 407
Preparation and economy in printing
,...,
99
Defense, Department of, expenditures:
1953 and 1954 and monthly 1954
« 422, 428
1954
,
....,.,.,
15, 330
1954 and estimates 1955 and 1956
18, 451
Grants to States and local units.
,
.,
682, 690
Mutual military program „
,.
422, 444
Payments to individuals, e t c . , within States:
1930, 1940, 1950, and 1954 by appropriation titles
686
1954 by States
697
Defense Homes Corporation
622, 634, 644, 654
Defense Lending, Office of
69, 381
Defense Materials Procurement Agency:
Interest paid to Treasury
659
Obligations held by Treasury:
1952 and 1953, June 30
,
610
1954, June 30
655
Transactions
655
Defense Minerals Exploration Administration
608, 610, 614, 615, 655, 659
Defense Production Act of 1950:
Balance sheet ,
620, 626
Borrowing power
608
Defense production activities (certain):
Balance sheet
620
Income and expense
638
Source and application of funds
648
Interest paid to Treasury
659
Obligations held by Treasury
,
,.
615
Securities for loans, owned by U. S
655, 657
Treasury holdings of obligations issued:
1951 -54, July 30
610
1954, June 30
,
608. 614
Deficit. (See Surplus or deficit. U. S. Government.)
Depositaries, Government:
Balance 1953 and 1954
,
580
Excise tax collections
.......,.,,
12,102
Foreign exchange accounts
,.................
395
Income taxes, c o l l e c t i o n s . . . .
102
Number, amount of deposits, by classes of depositaries
122
Purpose and supervision
,...,..,
102, 319
Regulations governing direct deposits.
391
Securities held by Treasurer of U. S., against deposits in . . . . .
......
124
Deposit fund accounts:
Explanation
19, 411
Expenditures, net
438, 452
Deposits, direct, of collections by administrative agencies, . . . . . „ . . , . , , . . , , .
391
Deposits, Treasury, tax and loan accounts, . . . , . . . . . . . , „ . . , . .
25,28,29,103.580
Deputy to the Secretary of the Treasury:
Addresses:
Dec. 29, 1953, at a joint meeting of the American Economic
Association and the American Finance Association p
341
740
INDEX
Deputy to the Secretary of the Treasury--Continued
Addresses- -Continued
June 18, 1954, before the Graduate School of Banking,
Page
American Bankers Association, New Brunswick, N . J
348
Dec. 3, 1953, before the National Association of Manufacturers
338
Statements:
Mar. 13, 1954, before the Subcommittee on Economic Development
of Committee on Economic Matters, Venezuela
231
Mar. 29, 1S54, before the Subcommittee on Federal Reserve Matters
of the Senate Banking and Currency Committee, on gold
290
May 13, 1954, before the Subcommittee on Federal Reserve Matters
of the Senate Committee on Banking and Currency
347
June 15, 1954, before the Senate Banking and Currency Committee,
on the Export-Import Bank
296
Destruction Committee, obsolete security stock received
88
Diesel fiiel oU tax
244, 246, 450
' * Digest of Appropriations*', discontinuance
99
Disaster Loan Corporation
654
Disaster loans, e t c , , revolving fund:
Balance sheet,
624
Income and expense
636
Securities for loans, owned by U, S
656
Source and application of funds
646
Disbursement, Division of:
Operations
103
Management improvement program.
67
Disbursing officers' checking accounts:
Classes and checks paid
122
Maintenance by disbursing stations
100
Reports on transactions, regulations
386
Distilled spirits tax
244, 245, 282, 449, 455
District of Columbia:
Budget expenditures. Federal contribution
432, 451
Investments made by Treasury
583
Loans to
656
Relief and rehabilitation fund, securities held by Treasurer of U. S
124
Special deposit account expenditures (net) ^
438
Teachers' retirement and annuity fund:
Investments
583, 589
Securities held by Treasurer of U. S
124
Statement
589
Trust account:
Expenditures
438
Receipts
436
Water fund:
Investraents
583, 589
Statement
589
Workmen's Compensation Act fund:
Investments
584, 590
Stateraent.
590
Dividends and other earnings, receipts 1954 and estimates 1955 and 1956 . . . .
450
Dividends, Interest, e t c . , received from Government corporations, e t c . .
41,659
Dollars, sliver, in circulation. Federal Reserve Banks, and Treasury,
and stock
135,136, 580, 660, 663-665
Donations and contributions
106, 450
Drawback transactions
74,460, 667, 668, 679, 680
Dues, club, and Initiation fees, taxes
244, 246, 450, 458
INDEX
741
E
Economic and technical assistance expenditures (Mutual Security Act)
(see also Export-Import Bank; Foreign assistance by U. S.; Foreign
Operations Administration; Mumal security):
Page
1948-54
444
1954, reduction
16
Economic Report of the President, statement on by Secretary of the
Treasury
219
Economic Stabilization Agency^ liquidation
113, 375
Education, Office of:
Expenditures
428
Grants to States and local units
683, 691
Student loans
624, 636, 646
Electrical energy tax
456
Electric, gas, and oil appliances, taxes
243, 245, 449, 456
Electric light bulbs tax
243, 245, 449
Employment taxes. (See Internal Revenue Service; Social security
program. Receipts.)
Engraving and Printing, Bureau of:
Administrative report
87-96
Assets and liabilities 1953 and 1954, July 1
90
18-subject currency program
92
Employees, number of, quarterly June 30, 1953 to 1954
723
Income and expense 1954
89
Internal revenue tax stamps, orders for and distribution . . . . . . . i
363
Management improvement program
65, 66, 91
Operational improvements
92
Organization changes
91
Personnel programs and activities
94
Procedural improvements
93
Production
87
Theft of Federal Reserve notes
95,159
Estate and gift tax collections:
1953
287
1953 and 1954
7, 9,125, 420
1954 and estimates 1955 and 1956
11. 13,15, 450
Estate tax , . ,
247, 273, 278, 286, 287, 454, 545
Estimates of receipts and expendimres. (See Expenditures; Receipts.)
European Economic Cooperation, Organization for
56, 111
European Productivity Agency
Ill
Excess profits taxes (see also Corporation income and excess profits taxes;
Taxation)
10,11, 44.454
Exchange stabilization fund
58, 289, 573, 711
Excise taxes (see also Depositaries, Government; Excise Tax Reduction Act
of 1954; specific taxes);
Changes made by 1954 Code
281-284,286
Collections:
1953 and 1954
7, 8. 420
1954 and estimates 1955 and 1956
9-14. 219, 449
Excise Tax Reduction Act of 1954, e f f e c t . . ,
8,12, 44, 45
Payment and filing returns, changes in method ,
9,12
President's recommendations
219
Proposed legislation
449, 450
Reduction scheduled April 1, 1955
8,11,12
742
INDEX
Excise Tax Reduction Act df 1954(see also Taxation):
Page
Effective date
8,10, 44
Estimated effect of rate changes between Dec. 31, 1953, and
April 1, 1954,
44
Rates prior to and after enactment
,
245, 246
Revenue effect
,.,
,
8,10,12, 44, 45, 242
Summary
,
242-246
Executive Office of the President, expendimres
,
422, 451
Executive Order No. 10501, safeguarding official Information
367
Expenditure accounts, explanation
.
410
Expenditures:
1789-1954
415
Budget:
1932-54 and monthly 1954
,
412
1947-54 by major classifications
444
1947-54 derivation of cash
464
1951-54
,
.,..
16
1951-54, chart
6
1953 and 1954.
5, 7
1953 and estimates
,,.
329
1954
,
.
18, 20, 330, 422-433, 451
1955 and 1956 estimates
17,18, 451
Average 1947-50
16
Compared with President's program as modified by C o n g r e s s . . . . . . . . .
98
Details 1953 and 1954 and monthly 1954.
422-433
National security outlay decrease
6,15
Objectives
1, 326, 328. 329, 338, 349
Proposed legislation, reserve for.
451
Reduction in.
1, 219, 222, 226, 287, 349
Refunds and capital transfers deducted
418
Reporting basis,
97-101, 383-387, 407, 408, 410
Summary for 1954
15-17
Export-Import Bank:
Balance sheet
618
Borrowing power
608
Capital stock owned by U. S.
619, 654
Defense Production Act of 1950
620. 632, 642
Dividends paid to Treasury
659
Expendimres:
1947-54
444
1953 and 1954 and monthly 1954.
422
1954 and estimates 1955 and 1956
18, 451
Foreign assistance, credits authorized
60
Foreign trade, financing
308
Income and expense
630
Indebtedness of foreign countries on U. S. credits
721
Interest paid to Treasury
659
Obligations held by Treasury:
1947-54, June 30
610
1953 and 1954, June 30
615
1954, June 30
,
608. 612, 614, 654, 655
Description
612, 614
Transactions
• 615, 654, 655
Payments received, principal and interest
60
Source and application of funds
640
Treasury statement in support of S. 3589, June 15, 1954
296
INDEX
743
Farm Credit Administration:
Page
Balance sheet
620, 626
Expenditures
18.422,451
Income and expense
632. 638
Securities for loans owned by U. S
656
Source and application of funds
642, 648
Farm housing program
610
Farm Security Administration program
656
Farm tenant mortgage Insurance fund;
Investments made by Treasury 1948-54
583
Treasury notes Issued to;
1953
521. 525
Interest, computed rate
471
Outstanding;
1948-54. June 30
472
1953 and 1954. June 30
531
1954. June 30
471,486
Description
•,
486
Farmers* Home Administration;
Balance sheet
624
Borrowing power (Secretary of Agriculture)
608
Expenditures 1953 and 1954 and monthly 1954
426
Income and expense
636
Interest paid to Treasury
659
Obligations held by Treasury:
1950-54. June 30
,
610
1953 and 1954. June 30
615
1954. June 30
608. 613, 655
Description
613
Transactions
615, 655
Securities for loans, owned by U. S.
656
Source and application of funds.
646
Federal agencies and trust funds, governmental security holdings.
(See Government investrnent accounts.)
Federal agencies, liquidation
69,113, 381
Federal aid to States, expenditures for;
Grants to States and local units;
1930, 1940. 1950, and 1954 by appropriation tities and agencies . . .
682
1953 and 1954, and monthly for 1954
428
1954 by States, agencies, and programs
688
Intergovernmental Relations, Commission on
. 338
Payments to individuals, e t c . . for selected programs:
1930. 1940, 1950, and 1954 by agencies and appropriation titles . . .
685
1954 by States, agencies, and programs
697
Federal Civil Defense Act of 1950:
Balance sheet
626
Income and expense
636
Interest paid to Treasury
659
Obligations held by Treasury:
1954, June 30
608. 610. 613. 615. 655
Description
613
Transactions
655
Securities for loans, owned by U. S
657
Source and application of funds
646
744
INDEX
Page
Federal Civil Defense Administtation expenditures
422.451.695
Federal Crop Insurance Corporation;
Balance sheet
618
Capital stock owned by U. S
619,654
Income and expense
630
Source and application of funds
640
Federal Deposit Insurance Corporation;
Balance sheet
620
Borrowing power
608
Capital stock owned by U. S
621
Income and expense
632
Investments in public debt securities
442
Investments made by Treasury 1944-54
582
Securities held by Treasurer of U. S
124
Source and application of fluids
642
Treasury notes issued to;
Interest, computed rate
471
Issues and redemptions:
1953 and 1954
520, 521, 524
1954
531
Outstanding:
1944-54. June 30
472
1953 and 1954. June 30
531
1954. June 30
,
471.487
Description
,
487
Federal Extension Service expenditures
424
Federal Facilities Corporation
69
Federal farm loan bonds
„
88,124
Federal Farm Mortgage Corporation;
Balance sheet
620
Borrowing power
608
Capital stock owned by U. S
621,654
Dividends paid to Treasury
,
659
Expenditures 1953 and 1954 and monthly 1954
422
Income and expense
632
Obligations:
Held by Treasury 1944-49, June 30
610
Held outside Treasury:
1944-54, June 30
474
1954, June 30
42,494,608
Market transactions (net) 1953 and 1954 and monthly 1954
440
Principal and interest paid by Treasurer of U. S
,..,.
124
Source and application of funds
642
Federal home loan banks;
Balance sheet
620
Borrowing power
608
Income and expense
632
Investments;
1944-54
584
1953 and 1954
440
Notes engraved, printed, and deUvered
88
Obligations (not guaranteed):
Market tiansactions (net) 1953 and 1954 and monthly 1954
442
Principal and interest paid by Treasurer of U. S
124
Source and application of funds
642
INDEX
745
Federal home loan banks--Continued
Treasury notes issued to;
Page
. 1953 and 1954 and monthly 1954
520. 521
Interest, computed rate
471
Issues and redemptions:
1953 and 1954 and monthly 1954
524
1954
531
Outstanding:
1948-54. June 30
472
1953 and 1954, June 30
531
1954, June 30
471,487
Description
487
Federal Housing Administration:
Balance sheet
626
Borrowing power
608
Changes in authority to insure loans and mortgages
42
Debentures:
Engraved, printed, and delivered
88
Supplemental regulations governing.
209
Expenditures 1953 and 1954 and monthly 1954
424
Income and expense
638
Interest paid to Treasury
659
Investments in public debt securities 1953 and 1954
442
Investments made by Treasury 1944-54
583
Obligations held outside Treasury:
1944-54
474
1953 and 1954. June 30. by Investor classes
578
1954, June 30
. 42,471,494, 608
Description
494
Market transactions (net):
1953 and 1954 and monthly 1954
440
1954 and estimates 1955 and 1956
452
Principal and interest paid by Treasurer of U. S
124
Securities for loans, owned by U. S
656
Source and application of funds
648
Treasury notes issued to;
Interest, computed rate
471
Issues and redemptions 1953 and 1954 and monthly 1954 . . .
520, 521. 524
Outstanding, June 30;
1947-54
473
1954
42,471
Federal Insurance Contributions Act. (See Social security program,
Receipts.)
Federal intermediate credit banks;
Balance sheet
620
Capital stock owned by U. S
621, 654
Debentures engraved, printed, and delivered
88
Expenditures 1953 and 1954 and monthly 1954
422
Franchise tax paid to Treasury
659
Income and expense
632
Investments, 1944-54
584
Market transactions (net);
1953 and 1954 and monthly 1954
440
1954 and estimates 1955 and 1956
452
Source and application of funds
642
Statutory debt retirements from franchise tax receipts
545
746
INDEX
Page
Federal land banks
440,442, 584
Federal lending agencies. (See Corporations and certain other
business-type activities of Uo S. Government.)
Federal Maritime Board and Maritime Administration (see also
Maritime activities);
Balance sheet
624
Income and expense
„
636
Securities owned by U. S.
,
656
Source and application of funds.
646
Federal National Mortgage Association;
Balance sheet
622
Borrowing power
608
Capital stock owned by U. S.
623.654
Expenditures
424
Income and expense
634
Inteiest paid to Treasury
,,.....,
659
Investments 1944-54
584
Market operations (net), estimates for 1955 and 1956
452
Obligations held by Treasury:
1951-54. June 30
610
1953 and 1954, June 30
,
615
1954, June 30
608. 612, 655
Description
612
Transactions
„
615,655
Source and application of funds
17,644
Federal old-age and survivors insurance trust fund; Appropriations to;
1947-54
,,..
i
444
1953 and 1954
,
7, 9,420.434
1954 and cumulative
591
1954 and estimates 1955 and 1956
11-13,15,451
Certificates of indebtedness and Treasury notes issued to;
1954. June 30
,
,
,.
471
Interest, computed rate
471
Issues and redemptions;
1953 and 1954 and monthly 1954
520. 524
1954
531
Outstanding;
1944-54, June 30
472
1953 and 1954. June 30
531
1954. June 30
487
Description (certificates)
„
487
Investments
442,448. 582, 591
Receipts and expenditures:
1946-54
447
1953 and 1954 and monthly 1954
434,436
1954 and cumulative
591
1954 and estimates 1955 and 1956
452
Statement
,
591
Federal Power Commission
,
685. 695
Federal Prison Industries, I n c . ;
Balance sheet
618
Earnings paid to Treasury
659
Income and expense
630
Source and application of funds
640
INDEX
747
Page
Federal Public Housing Authority
685
Federal Reserve Bank notes;
In circulation. Federal Reserve Banks, and Treasury.
and stock
580. 660. 661, 663, 664, 666
Redeemed and outstanding
6Q6
Federal Reserve Banks;
Advances for industtial loans
656
Deposits by Treasurer of U. S.
102.120, 580
Excise tax collections, deposits
12
Federal security holdings:
1941-54, June 30
. 36,574.576
1954 changes in types
39
1954. June 30, chart
37
Franchise tax receipts 1918-33
545
Interest on Federal Reserve notes outstanding deposited in Treasury
105
Money held by and for
,
660,662
Paper currency
114, 666
Securities, authority to purchase direct from Treasury
347
Federal Reserve notes;
Contingent liabilities of U. S.;
1944-54. June 30
475
D^cription
496
Engraved, printed, and delivered
88
In circulation. Federal Reserve Banks, and Treasury,
and stock
580, 660, 661, 663, 664, 666
Inteiest charges on notes in circulation deposited in Treasury
105
Issued, redeemed, and outstanding
666
Redemption fund for
580
Federal Reserve System
340-347
Federal Savings and Loan Insurance Corporation;
Balance sheet
620
Borrowing power
,
608
Capital stock owned by U. S.;
1954. June 30
621. 654
Interest paid to Treasury
659
Repayments
4 1 , 654
Income and expense
632
Investments in public debt securities 1953 and 1954
442
Investments made by Treasury 1944-54
582
Source and application of funds
642
Treasury notes issued to:
Interest, computed rate
,
471
Issues and redemptions;
1953 and 1954
520, 524
1954
531
Outstanding:
1944-54, June 30
473
1953 and 1954, June 30
,
531
1954, June 30
471,487
Description
487
Federal securities (public debt and guaranteed obligations);
Disttibutlon:
By call classes and investors 1953 and 1954
579
By maturity, marketable interest-bearing and guaranteed
475
Federal Reserve Banks, authority to purchase direct from Treasury
347
748
INDEX
Federal securities (public debt and guaranteed obligations)--Continued
Page
Interest, paid 1940-54 by tax status
569
Outstanding:
1932-54, June 30, and monthly 1954
413
1934-54, June 30
468
1941-54, June 30, by tax status and investor
576
1946-54, chart
21
1947-54, Increase or decrease
465
1953 and 1954, June 30
20, 21
1954, June 30
471
Description
476-492
Limitation, statutory;
Amounts subject to
413,467,468
Explanation
34
Temporary increase
35,413,467
Per capita
468
Structure, June 30, 1954, chart
22
Ownership;
1941-54, June 30, by investor classes
574
1941-54, June 30, distribution by tax status and investors
576
1941-54. selected dates, by Investor classes
36
1944-54, June 30, by Ck)vernment agencies and accounts
582
1953 and 1954, June 30, by investors covered in Treasury survey . . . .
578
1954, June 30, by investor classes
36, 37
Estimated changes by type of issue
39
Privately held, June 30, 1941-54
,
577
Summary for 1954
35-39
Federal Unemployment Tax Act. (See Social security program. Receipts.)
Fees and charges, receipts 1954 and estimates 1955 and 1956
450
Fermented malt liquors tax
244, 245,282,455
Finance, commerce, and industry expenditures
17.445
Financing. Treasury. (See Fiscal operations; Public debt.)
Fines, penalties, and forfeitures, receipts 1954 and estimates 1955 and 1956.. 450
Finland, payments on World War I indebtedness
109, 716
Firearms, shells, and caroridges, taxes
243.245.283,449
Fiscal Assistant Secretary
96. 379
Fiscal operations;
1932-54 and monthly 1954
412
Public debt, effect on. 1954 and estimates 1955 and 1956
453
Report on
5-54
Summary
5-7
Fiscal policy objectives (see also Budget; Public debt. Management;
Taxation)
306, 310,312,321.323,329. 348
Fiscal Service;
Administrative reports
96-124
Expenditures 1953 and 1954 and monthly 1954
432
Management improvement program
65
Fishing rods, creels, etc., taxes
449
Flood prevention and watershed protection expenditures
424
Floor stocks refiind or credit
,,
45,243
Foreign assets control
61,134
Foreign assistance by U. S. (see also Export-Import Bank; Foreign countries;
Foreign Operations Administtation; International affairs and finance;
International monetary affairs and developments; Mutual security);
Aid in U. S. balance of payments 1954
55
Credits by area, country, and type, outstanding indebtedness June 30,
1954
721
INDEX
749
Foreign assistance by U. S. --Continued
Page
Economic aid
55,60,110-112
Economic and technical assistance
16,444
Expenditures by U. S. Government
16.18.422,444
Grants and credits utilized 1954
55
Military assistance
16. 55,422.444
Settiement for grants
721
Foreign countries (see also Foreign assistance by U. S.; Foreign
currencies; Foreign Operations Administration; International affairs and
finance; International monetary affairs and developments; Mutual security):
Capital investment in
232, 313, 315
Coins manufactured by U. S
135
Consultation of representatives with United States officials
56
Dollar balances, short-term, claims against U. S. gold
292,294
Exchange systems, changes
289
German debt settlement obligations and payments
109,110. 707. 717
Gold and dollar resources
55.296.307. 311,314. 709
Gold and U. S. dollar, importance of constant relationship
291,295
Gold transactions of U. S. with
55, 290, 293, 708
Indebtedness on U. S. credits
,
110, 718, 721
Indebtedness to U. S., postwar foreign assistance
59,110. 721
Investments of private American businesses and individuals
59
Loan transactions . , ; . . . .
656
Supplies and services furnished by U. S., collections on
110
Tax treaties with
128,232
World War I obligations
109, 716, 717
World War n. accounts receivable June 30. 1954, under repayment
agreements
'
720
World War II obligations
110
Foreign currencies;
Account of the Secretary of the Treasury
395, 396
Acquired under lend-lease and surplus property agreements.,..
102,110, 297
Acquired without purchase with dollars;
Balances
713
(Changes in accounting
101
Regulations governing
^
97,101.394-398
Transactions
715
Convertibility
56, 295, 296, 308, 311, 317
Exchange stabilization fund earnings on
ttansactions
712
Functions delegated relating to purchase, custody, etc
379
Payment of U. S. taxes in
286
Special deposit account balance June 30. 1953 and 1954
580
Surplus property and lend-lease settlements, regulations
102.397
Foreign Economic Policy. Commission on
296-298.302, 303
Foreign exchange. (See Foreign currencies.)
Foreign financial policy. (See International financial and monetary
developments.)
Foreign government indebtedness to U. S. (See Foreign countiies.)
Foreign government obligations owned by U, S.;
Public debt retirements from payments on, 1919-39
545
Receipts
from
716. 717
Securities held by Treasurer of U. S
124
Foreign Operations Administration;
Balance sheet
620, 626
Borrowing power
608
Income and expense
632, 638
339256 O - 55 - 49
750
INDEX
Foreign Operations Administration--Continued
Page
Industrial and informational media guaranties
608
Literest paid to Treasury
659
Obligations held by Treasury:
1949-54, June 30
610
1953 and 1954, June 30
*
615
1954, June30
608,612.654
Description
612
Transactions
615, 654
Securities for loans, owned by U, S
656
Source and application of funds.
642, 648
Foreign service retirement fund:
Certificates of indebtedness issued to;
Issues and redemptions:
1953 and 1954
520
1954
525, 532
Outstanding;
1953 and 1954, June 30
473,532.593
1954, June 30
488
Description
488
Investments
582, 593
Receipts and expenditures;
1953 and 1954 and monthly 1954
434,436
1954 and cumulative
. 593
Statement
,
593
Treasury notes issued to;
Interest, computed rate
471
Issues and redemptions;
1953 and 1954 . .•
521, 524
1954
532
Outstanding;
1944-54, June 30
473
1953 and 1954, June 30
532,593
1954. June 30
471.488 *
Description
488
Foreign trade of U. S. (See Customs; International financial and monetary
developments.)
Foreign trade zones
82
Forest service, expenditures 1953 and 1954 and monthly 1954
424
Fountain pens and pencils taxes
449
Fractional currency
491, 543
Funds appropriated to the President . . . . . ' .
422,451
Furs tax
243-245,450,457
G
Gasoline tax
244, 245,449, 456
General Accounting Office, audit of Government financial reports
98, 384
General and special fund appropriation accounts, explanation
,
410
General fund:
V Account of the Treasurer of the United States
19. 20. 580
Assets and liabilities. June 30. 1953 and 1954
..,...,.,..
580
Balance:
1914-54. June 30
544
1932-54 and monthly 1954
413
1953 and 1954. June 30
20, 581
INDEX
751
General fund--Continued
Balance—Continued
Page
1953 and 1954, and estimates 1955 and 1956
453
1954, June 30
5
Increase or decrease;
)
1916-54 and cumulative
544
1932-54 and monthly 1954
413
1953 and 1954
5
1954 and estimate 1955
453
Gold, used to retire public debt
26
Receipt accounts, definition
409,458
Summary for 1954
19
General Services Administration;
Borrowing power
608
Expenditures;
1953 and 1954 and monthly 1954
424
1954 and estimates 1955 and 1956
18,451
Payments to individuals, e t c . . within States 1950
687
Interest paid to Treasury
659
Obligations held by Treasury;
1953 and 1954, June 30
608,610.614.615
Description
614
Transactions
615. 655.656
Securities for loans, owned by U. S
656
U. S. Government corporations, e t c . ;
Balance sheet
626
Income and expense
638
Source and application of funds
648
Germany;
Awards of Mixed Claims Commission to U. S. and its nationals;
Debt settiement indebtedness and payments
109,110,707. 717
Payments by classes
706
Exchange relaxation and customs liberalization
57
Indebtedness to U. S.;
World War I
109, 717
World War n
110, 720
Postwar economic assistance, repayments
110, 718
Gifts and contributions, receipts 1954 and estimates 1955 and 1956
450
Gift tax
278,286,287,454
Ciold;
Acquisitions
121,136
Assets and liabilities of Treasury
580
Certificate fund. Board of Governors. Federal Reserve System
580
Certificates
580, 660, 661, 664, 666
Exchange stabilization fimd
58, 289, 712
Free market, domestic proposal
290,295
Gold Reserve Act of 1939, powers bf Secretary of Treasury under
290
In circulation, June 30, 1913-30
664
Increment from reduction In weight of gold dollar, receipts
121,436
In Treasury
121, 580,660, 665
Liabilities against gold June 30:
1953 and 1954
580
1954
121,660
Potential claims against, in foreign short-term dollar balances
292,294
Price changes:
In free market on selected dates
293
Proposed increase
290,295
339256 O - 55 - 50
752
INDEX
Gold--Continued
Page
Production and use
139.293, 294
Proposed legislation relating to policy
290
Received and withdrawn (excluding intermint transfers)
136
Relationship to U. S. dollar, importance
291, 295
Reserve against U. S. notes and Treasury notes of 1890
580, 660
Reserves:
Importance of
291
Increase
293
Requirements and potential claims versus
291
United States. 1922-53 and Jan. 31, 1954
292
World, 1913-53
294
Retirement of public debt securities by use of
26
Stock
55,136, 291, 292, 295, 660, 663, 665
Standard, proposal to remrn to
290
Transactions with foreign countries
i
„ 55, 290. 293, 708
Treasury policy
56. 29Q,
Government corporations. (See Corporations and certain other business-type
activities of U. S. Govemment.)
Government Investment accounts, governmental security holdings (see also
Trust account and other transactions):
Federal securities:
1941-54, June 30
574, 576
1941 -54, selected dates
36
1944-54, June 30
582
1954 changes ,
35, 38, 39
1954, June 30, chart
37
Nonguaranteed securities of Federal instrumentalities 1941-54
575, 576
Responsibility for
105
State, local, and territorial government securities, 1941-54
575,576
Government life insurance fund:
Adjusted service bonds issued to, outstanding June 30. 1944 and 1 9 4 5 . , . .
473
Certificates of indebtedness issued to:
Interest, computed rate
471
Issues and redemptions:
1953 and 1954 and monthly 1954
521, 524
1954
532
Outstanding:
1945-54, June 30
473
1953 and 1954, June 30
532
1954, June 30
471, 488
Description
,
488
Investments
442, 448. 582, 606
Policy loans outstanding
606
Receipts and expenditures:
1946-54
447
1953 and 1954 and monthly 1954
434,438
Statement
606
Treasury notes issued to, outstanding June 30, 1944-46
473
Government losses in shipment revolving fund
' 104, 703
Government officers, deposits 1953 and 1954
^
581
Government products, receipts from sales 1954 and estimates 1955 and 1956 , .
450
Greece, exchange rates
^
,
59
Group life insurance fund, explanation
334
Guaranteed obligations. (See Corporations and certain other business-type
activities of U. S. Government, Obligations.)
INDEX
753
H
Health, Education, and Welfare. Department of:
Expenditures:
Page
1953 and 1954 and monthly 1954
428
1954 and estimates 1955 and 1956
18. 451
Grants to States and local units:
1930. 1940, 1950, and 1954 by appropriation tities
683
1954 by States and programs
691
Payments to Individuals, e t c . , within States:,
1940, 1950, and 1954 by appropriation
titles
686
1954 by States and programs
698
Smdent loans:
Balance sheet
624
Income and expense
636
Security owned by U. S
655
Source and application of funds
646
Transactions
655
Home Loan Bank Board:
Balance sheets
620
Expenditures
424
Income and expense
632, 638
Source and application of funds
642, 648
Home Owners' Loan Corporation:
Income and expense
638
Investments 1944-50
584
Matured obligations, unpaid balances, June 30, 1954
608
Obligations:
Held.by Treasury, 1944-49, June 30
610
Held outside Treasury:
1944-54, June 30
474
1954, June 30
;
42, 494
Market transactions (net) 1953 and 1954 and monthly 1954
440
Principal and Interest paid by Treasurer of U; S
124
Source and application of funds
648
Housing and community development expendimres
17, 445
Housing and Home Finance Administrator:
Balance sheets
622, 626
Borrowing power.
608
Expenditures 1953 and 1954 and monthly 1954
424
Income and expense
634, 638
Interest paid to Treasury.
659
Obligations held by Treasury:
1950-54
..
610
1953 and 1954, June 30
615
1954, JuneSO.
608,612.655,656
Description
,
612
Transactions
615, 655, 656
Source and application of funds.
644, 648
Housing and Home Finance Agency:
Expenditures:
1951-54 and average 1947-50
17
1953 and 1954 and monthly 1954
424
1954 and estimates 1955 and 1956
18, 451
Grants to States and local units:
1940, 1950, and 1954 by appropriation
tities
685
1954 by States and programs
695
754
INDEX
Housing and Home Finance Agency--Continued
U. S. Government corporations, e t c . :
Balance sheets
Income and expense
Source and application of funds
Housing insurance fund:
Debentures:
Engraved, printed, and delivered
Held outside Treasury:
1944-54, June 30
1954. June 30
Calls for redemption of Series L, M, and Q
Investments made by Treasury 1944-54
Treasury notes issued to:
Issues and redemptions
Outstanding:
1952-54, June 30
1953 and 1954, June 30
Housing investment insurance fund:
Investments made by Treasury 1951 -54
Treasury notes issued to:
Outstanding:
1953, June 30
Description
Redemptions
Housing loans for educational institutions
Page
620, 626
632, 638
642, 648
,,.
88
474
494
213
583
532
473
532
583
473. 488, 532
488
532
608, 610, 612, 615, 655, 659
I
Imports, by countries or tariff schedules, and values
670-678
Income and profits taxes (see also Corporation income and profits taxes;
Individual Income tax; Taxation):
1863-1954
414
1929-54
454
1947-54
444
1953 and 1954
7
1954 and estimates 1955 and 1956
449
India, emergency food aid
608
Indians (see also Interior Department, Loans):
;
Investments, 1944-54
583
Loans
624, 636, 646, 655
Tribal funds, receipts and expendimres
436, 438
Trust funds, securities held by Treasurer of U. S
124
Individual Income tax (see also Taxation):
Collections:
1929-54
454
1953
287
1953 and 1954
7, 8,125
1954 and estimates 1955 and 1956
11,13,449
1955 estimate
^19, 226, 246
Withheld and not withheld by employers:
1953 and 1954
7, 8,125
1954 and estimates 1956 and 1956
11,13, 449
Withheld by employers;
1943-54..'
„
454
1947-54
444
1953 and 1954
125,420
1954 and estimates 1955 and 1956
449
Constitutional amendment proposal
287
INDEX
755
Individual income tax--Continued
Page
Declarations of estimated tax
216, 284
Normal tax and surtax rate schedules
246, 247
Rate reduction, effect
„
10,11, 44, 330
Revenue effect of tax revisions estimated
44, 226, 228, 246, 247
Individuals, governmental security holdings:
Federal securities:
1941 -54, June 30
574
1941-54, selected dates
36
1954, June 30
35
1954, June 30, chart
,
37
1954, type of security
35
Increase
340
Savings bonds
35
Nonguaranteed securities of Federal instrumentalities June 30, 1941-54 . .
575
State, local, and territorial government securities June 30, 1941-54
575
Inland Waterways Corporation:
Balance sheet
618
Capital stock owned by U. S
619, 654
Income and expense
630
Investments
.-..
584
Source and application of funds
640
Instimte of Inter-A merican Affairs
620. 632. 642
Insurance companies, governmental security holdings:
Federal securities:
1941 -54, June 30
574
1941 -54, selected dates
36
1953 and 1954, June 30, by type of issue
578
Maturity length, average
36
Nonguaranteed securities of Federal instrumentalities June 30, 1941-54 . .
575
State, local, and territorial government securities June 30, 1941-54
575
Interest on public debt. (See Public Debt.)
Interest receipts 1954 and estimates 1955 and 1956
450
Intergovernmental Relations, Commission on, grants in aid
338
Interior Department:
Expendimres:
1953 and 1954 and monthly 1954
430
1954 and estimates 1955 and 1956
,
18, 451
Grants to States and local units:
1930, 1940, 1950, and 1954 by appropriation
tities
684
1954 by States and programs
694
Indian loans:
Balance sheet
624
Income and expense
636
Securities for, owned by U. S
655
Source and application of funds
646
Transactions in securities owned by U. S.
655
U. S. Government corporations, e t c . :
Balance sheet
618
Income and expense
,
630
Source and application of funds
640
Internal auditing in Treasury Department
101,133.155, 299
Internal revenue:
Bureau of. (See Internal Revenue Service.)
Collections:
1792-1954
414
756
INDEX
Internal revenue--Continued
Collections--Continued
Page
1929-54 by tax sources
454
1947-54
444
1953 and 1954
125, 420
Internal Revenue Service:
Accounting system revised
131
Additional taxes assessed
126
Administrative report
125-133
Advanced Training Center
132
Closing agreerflfnts relating to tax liabilities, authority
delegated . .^^ !
364
Collections for, by Bureau of Customs
667, 668
Cost of administration
129
Excess tax deposit refunding transferred to Commissioner of
Customs
376
Excise taxes, changes in payment and filing of remrns
9,12
Jeopardy assessments, authority to abate
364
Law enforcement activities
;
". 126
Management improvement program
67,129-133, 218, 332
Organization changes
,
129-133, 218, 332,362-365
Personnel, number, 1953 and 1954, June 30
129, 723
Refunds
104,127,141, 420
Tax assessment lists, authority to certify delegated.
362
Tax dispute settlements
128
Tax forms and requirements revised
131
Tax returns, authority to grant permission to inspect.
364
Technical functions
128
Title changed from Bureau of Internal Revenue
363
Workload
126
Tax stamps, order governing
363
Internal Revenue Code of 1954(see also Taxation; specific taxes):
Changes from previous laws
233. 248-284
Excise taxes, changes.
8, 9,12, 44, 45, 243-246, 281-284, 286
Legislative history, summary
45
Loophole closing
,
51, 234, 239
Objectives
47, 214, 220-222, 226, 228, 230, 234-242
President's statement upon signing
6
233
Problems remaining for further smdy
241
Procedural and administrative matters
284-286
Revenue effect of tax revisions estimated
10,11,14,
44,219,220,223,226,234,235, 246-248
Summary
246-286
Taxpayers, number affected by
248
International affairs and finance, expenditures
15,16,444
International Bank for Reconstruction and Development:
Loans
60, 313
Notes of U. S. as payment to. (See Notes, Special notes of U. S.
issued to International Bank and Fund.)
Statement by Secretary of the Treasury at panel- meeting
314
Statement of Governor for the U. S. at ninth annual meeting
312
Stock
i
656
International claims
705
International Claims Commission
Ill
International Finance Corporation, proposal
60
INDEX
757
Intemational Finance, Office of:
Page
Administrative report
133,134
Eraployees, nuraber of, quarterly June 1953 to June 1954,
723
Internationai financial and monetary developments (see also Foreign as- sistance by U. S.);
Balance of payments and gold movements, U. S.
55
Consultations of U. S. officials with foreign government
representatives
56
Cunency convertibility, movements toward resumption.....,, 55, 56-58,
295,296, 306, 308, 309-312.317,319
Export-Import Bank
60, 296
Foreign assets control
13, 61
Foreign economic policy. President's recommendations . . 305, 308, 312, 317
Foreign exchange and the International Monetary Fund.
58
Foreign investment by U. S.:
Private.
59-61, 307, 313, 314-317
U. S. Government
59-61,313
International Bank, new loans
60
Sumraary for 1954
, 54-61
International Monetary Fund:
Activities
57
Exchange rates and transactions
58
Exchange restrictions and systems
58, 289
Funds available for stabilization of Peruvian currency
289
Notes of U, S, as payments to. (See Notes. Special notes of U, S,
issued to International Bank and Fund.)
Philippine Trade Agreement
59
Resources, conditions for use
318
Statement by Under Secretary of the Treasury for Monetary Affairs,
at discussion of annual report
317
Statement of Governor for the U. S. at ninth annual meeting
312
Subscriptions of U. S
656
Internationai Wheat Agreement, net cost covered
108
J
Jewelry tax
Joint stock land banks. Investments 1944-46
Judiciary. The. expendimres
Justice, Department of:
Expenditures:
1953 and 1954 and monthly 1954
1954 and estimates 1955 and 1956
U. S. Government corporations, etc:
Balance sheet
Income and expense
Source and application of funds
243-245,450, 457
584
18,422,451
430
18, 451
,
., .c..;,«
...
618
630
640
K
Korea:
Aid to
Foreign assets control
International Monetary Fund, resolutions for admission to
428, 444
61,134
,,...
51
758
INDEX
L
Labor, Department of, expendimres:
Page
1953 and 1954 and monthly 1954
,.
430
1954 and estimates 1955 and 1956
18. 451
Grants to States and local units:
1930. 1940, 1950. and 1954 by appropriation titles
.684
1950 and 1954
686
1954 by States
694
Payments to individuals, e t c . . within States, 1954
701
Law enforcement activities:
Customs. Bureau of
80, 680
Internal Revenue Service
126
Narcotics, Bureau of
139-142
U. S. Coast Guard
143
U. S. Secret Service,
159
Legal tender notes
,
491
Legislative branch expenditures
18, 422,451
Lend-lease and surplus property:
Foreign Indebtedness to U. S
110, 718, 721
Payments
110, 718
Regulations fox administration of foreign currencies and credits
397
Liberty bonds and Victory notes
490, 568
Library of Congress trust fund:
Donation
106
Investments
594
Statement
594
Liquidation of Federal agencies
69,113, 381
Liquor taxes. (See Alcohol taxes.)
Loans and investments of U. S. Government, receipts from, 1954
and estimates 1955 and 1956
450
Loans, credits, and grants to foreign countries. (See Foreign assistance by
U. S.)
Loans to Government corporations and agencies and capital subscriptions by
U. S
107
Longshoremen* s and Harbor Workers' Compensation Act fund:
Investments
583. 596
Statement
596
Luggage taxes
243-245,450, 457
M
Machines, business and store, taxes
245, 449
Management improvement program (see also specific bureaus):
Developments
65-68. 83-87. 91. 107.
113,120.129-132,138,139,142,154,158, 299, 301
Summary of progress
65-68
Manufacturers' excise tax collections:
1929-54 by sources
456
1953 and 1954
8,125
1954 and estimates 1955 and 1956
12,14,449
Proposed legislation
449
Rate changes
243-245
Revenue decrease, estimate
243
Tax returns, payment and filing changes in method
V
9,12
Maritime activities(see also Federal Maritime Board and Maritime Administration) grants to States and local units
426, 682, 685, 690
INDEX
759
Page
Matches, taxes
243, 245, 449
Merchandise entries into U. S. .
74, 678
Mexico:
American-Mexican Claims Commission..
112, 705
Peso, change in rate
*
289
Stabilization agreement: with U. S
58, 289
Military assistance. (See Defense. Department of; Funds appropriated
to the President; Mumal security.)
Military housing insurance fund:
Debentures engraved, printed, and delivered
88
Investments 1950-54
583
Treasury notes issued to:
Outstanding, 1953. June 30
473, 532
Redemptions 1954
532
Minor coin:
In circulation, Federal Reserve Banks, and Treasury, and
stock
136, 580, 660, 663-665
Issued by mints, pieces, and face value
135
Mint, Bureau of:
Administrative report
134-139
Coin distribution, transfer of functions relating to
380
Employees, number of, quarterly June 30, 1953 to 1954
723
Internal audit
137
Management improvement program
,,
68,138,139
Receipts from seigniorage and coinage,
450
Miscellaneous intemal revenue tax receipts:
1929-54 by sources
454-458
1953 and 1954
125
Miscellaneous receipts:
1947-54
444
1953 and 1954
7,10. 420
1954 and estimates 1955 and 1956
11,13,15.450
Increase resulting from changes in accounting for certain foreign
currencies
10
Miscellaneous taxes:
Internal revenue
,...,.
8,14.125, 457, 458
Other
450
Rate changes
243, 244, 246
Revenue decrease, estimate
,
243
Mixed Claims Commission. U. S. and Germany
109. 706
Monetary developments, international. (See International financial and
monetary developments.)
Monetary policies. (See International financial and monetary developments.)
Money (see also specific issues):
Circulation by kinds, June 30, 1913-54
,
664
Coins
135,136
Delivered by Bureau of Engraving and Printing
87
" Deposit of public, regulations governing
398-400
Location of gold, silver, and coin held by Treasury
665
Paper currency, (See Paper currency.)
Stock by kinds, June 30, 1913-54
663
Stock, in Treasury, in Federal Reserve Banks, and in circulation
June 30:
1913-54
;
,
662
1954 by kinds
660
760
INDEX
' ' Monthly Statement of Receipts and Expenditures of the U. S.
Government' ' :
Page
Basis of data
407
Content and purpose
'
18, 97-99, 385, 407
Publication, initial
5,16. 97, 98. 385
Trust account and other transactions, tables
18
Municipalities and States. (See State, local, and territorial governments.)
Mutual defense assistance. (See Defense. Department of; Funds appropriated
to the President; Mutual security.)
Mutual military programs. (See Mutual security.)
Mumal mortgage insurance fund:
Debentures engraved, printed, and delivered
88
Debentures held outside Treasury:
1944-54, June 30
474
Calls for redemption of Series E
211
Description
494
Summary of calls for redemption
213
Investments made by Treasury 1944-54
583
Treasury notes issued to:
Issues and redemptions 1954
532
Outstanding:
1947-54, June 30
473
1953 and 1954, June 30
532
1954. June 30
488
Description
488
Mutual savings banks, governmental security holdings:
Federal securities:
1941-54, June 30
574
1941-54, selected dates
36
1953 and 1954, June 30, type of Issue
578
1954, June 30.
37
Maturity length, average
37
Nonguaranteed securities of Federal instrumentalities June 30,
1941-54
575
State, local, and territorial government securities Juhe 30, 1 9 4 1 - 5 4 . . . . . .
575
Mutual security:
Economic and technical assistance (Mumal Security Act)
16, 444
Expenditures
,
16.18, 422, 444
Foreign governments' indebtedness to U. S
721
Military assistance and direct forces support, expenditures
18
Mutual military program:
Expendimres
16, 422, 444
Supplies and services exported
55
Organization for European Economic Cooperation, funds transferred
Ill
N
Narcotic and marihuana laws enforcement
139-142
Narcotics, Bureau of:
Administrative report
139-142
Commissioner, delegation of functions to
380, 381
Employees, number of. quarterly June 30. 1953 to 1954
723
Management improvement program
142
National Advisory Council on International and Financial Problems.
lending policies, coordination
297
National Archives gift fund
596
National bank and Federal Reserve Bank notes
,.
467, 473. 524, 543
INDEX
761
Page
National bank notes
491, 580, 660, 661, 663, 664, 666
National banks:
Assets and liabilities
70
Number, capital stock changes, and liquidation
71
National Cancer Institute gift fund. (See Public Health Service, Gift funds.)
National debt. (See Federal securities; Public debt.)
National defense housing Insurance fund:
Debentures engraved, printed, and delivered
88
Investments
583
Treasury notes issued to:
Issues and redemptions 1954
533
Outstanding:
1953 and 1954, June 30
473, 488, 533
Description
488
Natiorial Housing Act, insurance of mortgages increased
42
National Institute of Health gift fund. (See Public Health Service, Gift funds.)
National Institutes of Health, Federal aid to States
698
National Park Service account for preservation of birthplace of Abraham
Lincoln, investments made by Treasury 1945-54
583
National park tmst fund;
Investments.
583, 597
Statement of receipts, expendimres, and assets
597
National Science Foundation expenditures
702
National security expenditures.
.:...,.
6,15,16, 444
National service life insurance fund:
Investnients
442, 448, 582. 598
Receipts and expenditures:
1946-54
447
1953 and 1954 and monthly 1954
434. 438
1954 and cumulative
598
Statement
598
Treasury notes issued to:
Interest, computed rate
471
Issues and redemptions:
1953 and 1954
520, 521, 524
1954
533
Outstanding:
1944-54, June 30
473
1953 and 1954, June 30.
533, 598
1954, June 30
»
471, 489
Description
,
489
Nationals, U. S., international claims of
111,705,706
Namral fibers revolving fund
608, 610
Natural resources, expenditures.
17, 445
Naval records and library fund.
583
Navy, Department of:
Expenditures:
1789-1954
415
1947-54
444
1953 and 1954 and monthly 1954
428
Securities for loans, owned by U. S.
657
Nonbank investors, governmental security holdings:
Federal securities:
1941-54, June 30, by investor classes
36, 574
1954 changes in types
39
1954, June 30
,
35, 37
762
INDEX
Nonbank investors, governmental security holdings- -Continued
Federal securities--Continued
Page
1954 transactions
39
Decrease 1954
35
Nonguaranteed securities of Federal instrumentalities 1941-54,
June 30, by investor classes
575
State, local, and territorial government securities 1941-54,
June 30, by investor classes
575
Nonbudget accounts, explanation
410
Notes:
Engraved and printed
88
Special notes of U. S. issued to International Bank and Fund:
Issues and redemptions:
1953 and 1954 and monthly 1954
518, 519, 522
1954
543
Outstanding:
1947-54, June 30
473
1953 and 1954, June 30
543
1954, June 30, description
491
Limitation, statutory
.'
467
Treasury:
Marketable:
Exchanges
25, 27,176,178,180,183, 504, 507, 522
Interest:
Computed charge and rate, June 30, 1939-54
566
Computed rate
471
. Due and payable 1951-54
568
Investor classes:
1953 and 1954, June 30
578
1954 changes
39
Issues and redemptions:
1953 and 1954 and monthly 1954
....
518-521
1954
24-28,171-176,498-515, 527, 536
Circular on Sept. 15, 1953, issue
171
Circular on Dec. 1, 1953, issue.
172
Circular on May 17, 1954, issue"
174
Issues by Federal Reserve districts
176
New money sources
22, 24, 27
Outstanding:
1944-54, June 30
472
1953 and 1954, June 30
23, 527, 578
1954, June 30
471,477, 490
Description
477
Limitation, statutory
467
Prices and yields, June 30, 1953 and 1954
572
Retired by use of gold to reduce outstanding public debt
26
Savings:
Circular on Series C offering
194
Interest:
Computed cha1:ge and rate, June 30, 1942-54
566
Computed rate
471
Due and payable 1951-54
568
Rates, range on new issues
33
Investor classes:
1953 and 1954, June 30
578
1954 changes
39
INDEX
763
Notes--Continued
X Treasury--Continued
Savings- -Continued
Issues and redemptions:
Page
1942-54
563
1953 and 1954 and monthly 1954
518, 519, 522
1954
29. 30, 33,498-515, 529. 537
Outstanding:
1944-54, June 30
472
1953 and 1954, June 30
30. 529, 536, 537
1954, June 30
471, 480, 490
Description
480
Limitation, statutory
467
Redemptions applied in payment of taxes:
1953 and 1954 and monthly 1954
522
1954
33
Series B, withdrawal
194
Series C, suspension of sale
33, 201
Tax-payment or redemption values and investment yields
200
Victory, redemptions 1954 and outstanding by series
534
o
Occupied areas, government and relief in
Oil transporation by pipeline, tax
Oils, lubricating, tax
Old demand notes
Organization for European Economic Cooperation
444
246, 250
243, 245, 449, 456
491, 543
56, 111
p
f
Panama Canal Company:
Balance sheet
622
Income and expense
634
Interest paid to Treasury
659
Investments 1944-54
584
Source and application of funds
644
Panama Canal exp.enditures
428
Paper currency:
Audit decentralized to Federal Reserve Banks
114,119
Deposits for retirement of national bank and Federal Reserve Bank
notes
467,473
Engraved, printed, and delivered
88
In circulation, Federal Reserve Banks, and Treasury, and stock . 661, 663, 664
Issued, redeemed, and outstanding
122, 666
Payroll plan for U. S. savings bonds
118,157
Payroll taxes. (See Social security program. Receipts.)
Pens and pencils, mechanical; and lighters, taxes
243, 245
Permits, privileges, and licenses, receipts from fees 1954 and estimates 1955
and 1956
450
Pershing Hall Memorial fund:
Investments
583, 599
Statement of receipts, expenditures, and assets
599
Personnel:
Number, by bureaus, e t c . , quarterly June 30, 1953 to 1954
723
Security information, delegations and instructions
365-375
Security program revised and amended
350-359
764
INDEX
Page
Persons and property transportation taxes
243. 246,450, 457
Persons and vehicles entering U. S
74. 678
Peru, stabilization agreement with U. S
58, 289
Philippine Islands:
Account in U. S. Treasury for payment of bonds
112, 584, 607
Exchange tax extended
;.
,
59
Refunding agreement
112
Securities, payments by Treasurer of U. S. as agent
124
Philippine War Damage Commission, liquidation
113
Photographic apparatus taxes
243, 245, 449
Pistols and revolvers tax
243, 245, 449
Playing cards tax
245.449
PostOffice, Departmentof:
Expenditures:
1953 and 1954 and monthly 1954
430
1954 and estimates 1955 and 1956
18,451
Contributing to deficiencies in postal service
402.461
Grants from Treasury to cover postal deficiency, 1911-54
461
Postal revenues, expenditures, surplus or deficit, and surplus revenue
paid into Treasury 1911-54
461
Reporting of transactions for 1954 on new basis
98, 461
Postage stamp dies engraved
96
Postal Savings System:
Funds due depositors and security for
124,475, 496
Investments made by Treasury 1944-54
582
Treasury notes issued to:
Interest, computed rate
471
Outstanding:
1944-54, June 30
473
1953 and 1954 and monthly 1954
524
1953 and 1954, June 30
533
1954. June 30
471. 489
Description
489
Redemptions 1954
533
Postal Service. (See Post Office Department.)
Postmaster General:
Documentary stsimps, orders for and distribution
363
Penalty Mail Act, delegation of authority for certification under . . .
379
Prefabricated housing loans program
608, 610, 612, 615, 655, 659
President:
Address, Mar. 15, 1954, on the tax program
221
Extract from the Budget Message of January 21, 1954.
214
Foreign economic policy recommendations
305, 308. 312, 317
Funds appropriated to
422, 451
. Recommendations for legislation
43,45,46,
214-^219, 221, 230, 234, 241, 287, 308, 322
Statement, Aug. 16, 1954, upon signing H. R. 8300, the Internal
Revenue Code of 1954
233
Prices and yields of public debt issues. (See Public debt.)
Printing and Publication, Committee on
66, 350
Production credit corporations:
Balance sheet
620
Capital stock owned by U. S
41, 621, 654
Expenditures 1953 and 1954 and monthly 1954
422
Income and expense
632
INDEX
765
Production and credit corporations--Continued
Investments:
Page
1944-54
584
Repayments
654
Source and application of fiinds
642
Property, Government, receipts from sales 1954 and estimates 1955 and 1956 .
450
Public debt (see also Circulars; Federal securities; specific classes):
Cash borrowing or repayment*of borrowing, derivation
465
Changes in
5,16, 20, 21, 45,115,413, 526, 544
Description, amounts issued, retired, and outstanding
476
Effect of Federal financial operations
,
453
Estimated changes 1955 and 1956
453
Interest;
Changes in rate
321
Computed charge and rate;
1916-54, June 30
564
1939-54, June 30, by security classes
566
Computed rate:
1953 and 1954
341954 by security classes
471,497-515
Expenditures;
1789-1954
415
1940-54 by tax stams
569
1947-54
,
445
1951-54 and average 1947-50
16
1953 and 1954
34, 432
1954
15,16
1954 and estimates 1955 and 1956
18,451
Due and payable by security classes, 1951-54
568
Investments of Government agencies in securities:
1944-54
582
1946^54
448
19 54
,
19
Issues and redemptions (receipts and expenditures);
1953 and 1954 and monthly 1954 by security issues
518-525
1954 by security issues
24, 25, 497-515, 526
1954, June 30, cumulative by issues
476
Management;
Corporation tax payments, effect of acceleration
37,218, 235
Maturity lengthening
22, 26
Objectives and principles
1, 22, 229, 321, 338-341
Marketable securities:
Increase 1954
20, 21, 39
Maturity distribution, June 30, 1944-54
475
Outstanding, June 30;
1953 and 1954
21
1954 by time to maturity, chart
22
Matured debt, transferred to, by issues 1954
526
Nonmarketable securities
20, 21, 22, 29, 39
Offerings by issues
165-209
Operations 1954
22-35.497-515, 518, 526
Operations and ownership of Federal securities
20-39
Outstanding;
1790, Dec. 31-1954, June 30, gross
469
1853-1954, June 30, interest-bearing, matured, noninterest-bearing, and gross
*
469
1915-54, June 30
544
766
INDEX
Public debt--Continued
Outstanding--Continued
1916-54, June 30, interest-bearing
564
1932-54, June 30, and monthly 1954
413
1934-54, June 30, gross
468
1944-54, June 30, by security classes
472
1946-54, chart
,
21
1947-54. increase or decrease
465
1953 and 1954. June 30, by issues
526
1953 and 1954, June 30, by marketable security classes . . .
23
1954, June 30
5
1954, June 30, by issues
,
476
1954, June 30, by security classes
471
Effect of Federal financial operations on
453
Limitation, statutory:
Amounts subject to:
1938-54
,
413
By selected dates
468
Increase temporarily authorized
35
Obligations affected June 30, 1954
34, 467
Retirement of notes by use of gold to hold debt within
26
Structure, June 30, 1954, chart
22
Ownership of securities by investor classes
35-39. 578
Per capita gross debt
.....<
469
Prices and yields, public marketable securities:
1930-54 monthly and annual average yield of long-term Treasury
bonds
570
1953 and 1954, June 30, by issues
572
1954 prices and rates of Treasury bills
189
Registered individual accounts for other than savings bonds
118
Sinking fund:
Appropriations, available funds, and debt retired
546
Credits and debt retirement
34
Retirements from^
545, 546
Special issues.to Government investment accounts:
Increase 1954
"20, 21, 34
Interest;
Computed charge and rate, June 30, 1939-54
566
Computed rate by funds, etc
471
Due and payable:1951-54
568
Paid 1940-54
569
Issues and redemptions:
1953 and 1954 and monthly 1954 by funds, etc
520, 524
1954
531
Outstanding:
1944-54, June 30, by funds, etc
472
1953 and 1954, June 30
21, 5.31, 578
1954, change
.'
39
1954, June 30, by funds, etc.
471, 486
1954, June 30, chart
'
22
Description by funds, etc
i...
486
Limitation, statutory
467
Statutory retirements:
1916-54
544
1918-54
545
Tax-exempt and taxable issues, terms
476
INDEX
767
Page
409
Public Debt accounts basis of data
Public debt and guaranteed obligations. (See Federal securities.)
Public Debt, Bureau of;
Administrative report
113.119
Employees, number of
115, 723
Management improvement program
67,113
Public debt operations and ownership of Federal securities
20-39
Public Health Service:
Expenditures
428
Federal aid to States
683, 686, 691
Gift funds, investments
583, 599
Hospitals, patients' benefit fund
583
Public Housing Administration;
Balance sheet
622, 626
Borrowing power
608
Capital stock owned by U. S
623, 654
Expenditures 1953 and 1954 and monthly 1954
424
Income and expense
634, 638
Interest paid to Treasury
659
Investments made by Treasury 1944-48
583
Obligations:
Held by Treasury;
1944-54, June 30
610
1953 and 1954, June 30
615
1954, June 30
608. 613, 655
Description
613
Transactions
615, 655
Held outside Treasury 1944-49, June 30
474
Repayments by local housing authorities
17
Securities for loans, owned by U. S
656
Source and application of funds
17, 644, 648
Public or private agencies of U. S., loans to, regulations governing
400
Public Roads, Bureau of, expenditures
426
Public Works Administration
545, 626, 638, 648, 656
Puerto Rico, securities, payments by Treasurer of U. S., as agent
124
Puerto Rico Reconstruction Administration, securities owned by U. S
655
R
Radios, phonographs, television sets, e t c . , taxes
Railroad retirement account:
Appropriations to:
1947-54
1953 and 1954
1954 and estimates 1955 and 1956
Investments
Receipts and expenditures:
1946-54
1953 and 1954 and monthly 1954
1954 and cumulative
1954 and estimates 1955 and 1956
Statement
Treasury notes issued to:
Interest, computed rate
Issues and redemptions:
1953 and 1954 and monthly 1954
1954
339256 O - 55 - 51
245,449,456
444
7. 9. 420. 434
11-13,15, 451
442. 448, 582, 600
447
434, 436
600
452
600
471
520, 521, 524
533
768
INDEX
Railroad retirement account--Continued
Treasury notes issued to--Continued
Outstanding:
Page
1944-54, June 30
;
473
1953 and 1954, June 30
533
1954, June 30
471, 489
Description
489
Railroad Retirement Board expenditures, 1954 and estimates 1955
....
18,451
Railroad Retirement Tax Act. (See Social security program. Receipts.)
Flailroad unemployment insurance account, receipts and expenditures,
1953 and 1954 and monthly 1954
434,436
Railroad Unemployment Insurance Act. (See Social security program.)
Railroads:
Employment taxes. (See Social security program. Receipts.)
Securities owned by U. S., 1954, June 30
656
Randall Commission report (see also Foreign Economic Policy, Commission
on)
297, 298
Receipts (see also Internal revenue. Collections; Social security program;
Taxation; specific taxes);
1789-1954
414
1947 -54 by major classifications
444
Appropriations to Federal old-age and survivors insurance trust fund. (See
Federal old-age and survivors insurance trust fund.)
Budget:
1932-54 and monthly 1954
412
1947-54 derivation of cash
463
1951-54, chart
6
1953 and 1954
5, 7,421
1954
7. 20.420, 449
Compared with President's program as modified by Congress . . . . . . .
98
Corporation tax payments, effect of acceleration
5, 8,11.14, 47.218. 235
Details 1953 and 1954 and monthly 1954.
420-422
Estimates, 1955 and 1956
10-15,449
Net budget, explanation of term
7
Postponement of automatic reductions of tax rates,
effect estimated
219, 242, 244, 331
Refunds and capital transfers deducted, 1931-48
418
Reporting basis
97-101, 383, 387
Summary for 1954
7-10,407,409
Tax revisions, effect estimated
44, 219, 247. 220, 222, 226,
229, 233, 235, 242, 243, 246, 331
Surplus or deficit. (See Surplus or deficit. U. S. Government.)
Trust account and other transactions. (See Trust account and other transactions.)
Receipts, expenditures, and balance in general fund:
1932-54 and monthly 1954
412
1953 and 1954
5,121
Reporting of
99, 407, 409
Reciprocal aid agreements, collections
110, 718
Reconstruction Finance Corporation:
Affiliate assets held for U. S. Treasury
657
Balance sheets
622
Borrowing power
608
Capital stock owned by U. S
623, 654
Dividends paid to Treasury
..
108
INDEX
769
Reconstruction Finance Corporation--Continued
Expenditures:
P^S^
1953 and 1954 and monthly 1954
422
1954
.
18,451
Income and expense
634
Interest paid to Treasury
659
Investments 1944-52
,
..
584
National defense, war, and reconversion cost recoveries
108, 653
ObUgations;
Held by Treasury;
1944-54. June 30
610
1953 and 1954, June 30
615
1954, June 30
'.
608, 613, 655
Cancellations
653
Description
613
Transactions
615, 655
Held outside Treasury:
1944-47, June 30
474
1954, June 30, matured
494
Source and application of funds
644
Termination and transfer of functions
•••••.
69. 381
Recoveries and refunds,' receipts 1954 and estimates 1955 and 1956
450
Refrigerators, air conditioners, e t c . , taxes
243, 245,449, 456
Refugee Relief Act of 1953:
Delegation of certain functions under
379
Regulations
,
109, 237
Refunds;
Deducted from budget receipts and expenditures:
1931-48
418
1953 and 1954
7,420
1954 and estimates 1955 and 1956
11,13,15,450,451
Interest paid 1953 and 1954 and monthly 1954
432
Proposed legislation
451
Taxes and duties:
1947 -54
444
1953 and 1954
10
Customs refunds
,
460
Internal revenue taxes and iriterest
127
Regional Agricultural Credit Corporation, investments 1944-46
584
Regulations, Department;
Oct. 19, 1953, governing the purchase, custody, transfer, and sale of
foreign exchange by executive departments and agencies . . . . . . ; . . . . .
394
Dec. 1, 1953i governing the making of loans to public or private agencies of the United States pursuant to the Refugee Relief Act of 1 9 5 3 . . . .
400
Jan. 18, 1954. governing direct deposit of collections by certain d e partments and agencies
.
391
Feb. 17, 1954, governing reports of certain cash transactions of the U. S.
Government
386
Apr: 26, 1954, governing deposits of public moneys and payment of
Government checks
398
Oct. 19, 1954, for the administratiori of foreign currencies and credits
under disposition of surplus property abroad and lend-lease settlements
397
Renegotiation of war contracts
444
Rent receipts of 1954 and estimates 1955 and 1956
450
Reporting and accounting changes. Government
97-101, 382-400
Reserve requirements, reduction for banks
229, 321
770
INDEX
Retailers* excise tax collections;
Page
1942-54 by sources
457
1953 and 1954
8,125
1954 and estimates 1955 and 1956
12,14, 450
Rate changes
244, 245
Revenue decrease, estimate
243
Tax returns, payment and filing changes in method
9,12
Retirement funds. Federal employees' (see also Alaska Railroad retirement
fund; Canal Zone retirement fund; Civil service retirement fund; Foreign
service retirement fund);
Investments:
1944-54
582
1946-54
448
1953 and 1954 and monthly 1954
442
Receipts and expenditures:
1946 -54
447
1953 and 1954 and monthly 1954
434, 436
1954 and estimates 1955 and 1956
452
Revenue Act of 1954. (See Internal Revenue Code of 1954.)
Revolving and management fund accounts, explanation
410
RFC Mortgage Co. investments 1944-46
585
Royalties, receipts 1954 and estimates 1955 and 1956
450
Rural Electrification Administration;
Balance sheet
624
Borrowing power
608
Expenditures 1953 and 1954 and monthly 1954
426
Income and expense
636
Interest paid to Treasury
659
Obligations held by Treasury:
1948-54, June 30
610
1953 and 1954, June 30
615
1954, June 30
608, 613, 655
Description
613
Transactions
615, 655
Securities for loans, owned by U. S
657
Source and application of funds
646
s
Safe deposit box tax
243, 244, 246,450
Safety Advisory Committee
65
Saint Lawrence Seaway Development Corporation;
Borrowing power
608
Expenditures
451
Secretaries, Under Secretaries, and Assistant Secretaries of the Treasury,
1953, Jan. 20-Nov. 15, 1954
XIH
Secretary of Agriculture, obligations held by Treasury:
1950-54
610
1953 and 1954
615
1954, June 30
608, 613, 614, 655
Borrowing power
608
Secretary of the Army;
Borrowing power
608
Obligations held by Treasury, outstanding 1949-51
610
Secretary of Defense, Office of, expenditures
428, 444
INDEX
771
Secretary of the Interior:
Page
Borrowing power
608
Interest paid to Treasury
659
Obligations held by Treasury:
1951-54, June 30
610
1953 and 1954, June 30
615
1954, June 30
608, 614. 655
Secretary of the Treasury:
Announcement, Feb. 18, 1954, of signing a stabilization agreement
between U. S. and Peru
289
Borrowing power
608
Foreign exchange account
395
Joint proposal, Oct. 5, 1953, with the Director of the Bureau of the
Budget and the Comptroller General to improve receipt and expenditure reports
382
Letters:
Mar. 17, 1954, to Speaker. House of Representatives, urging
enactment of tax revision bill
224
Apr. 8, 1954, to Chairman of the Senate Finance Committee, on
Treasury participation in resolving technical suggestions concerning the tax revision bill
230
Apr, 26, 1954, to Chairman of the Senate Committee on the
Judiciary, on a proposed constitutional amendment relative to
taxes on incomes, inheritances, and gifts
287
Powers under Gold Reserve Act of 1934
v
290
Remarks:
Apr. 15, 1954, before the American Society of Newspaper Editors...
320
May 11, 1954, before the Congress of Industrial Organizations Full
Employment Conference
323
May 25, 1954, following presentation of the Government Economy
Award
328
Securities held for, by Treasurer of U. S
124, 610, 613-615, 655
Staff
XV
Statements:
Feb. 2, 1954, before the Joint Committee on the Economic Report on the 1954 Economic Report of the President
219
Feb. 2, 1954, before the Joint Committee on the Economic Report on the reason for keeping Government deposits in banks
319
Feb. 17, 1954, with the Director of the Bureau of the Budget and
the Comptroller General relative to changes in Treasury reporting.
385
Mar. 2, 1954, on proposed reductions in excise taxes
242
Apr. 7, 1954, before the Senate Finance Conimittee. on the tax
revision bill
225
Sept. 24, 1954, at the ninth annual meeting of the Board of Governors of the International Monetary Fund and the International
Bank for Reconstruction and Development
312
Sept. 28. 1954, before the Board of Governors of the International
Bank for Reconstruction and Development
314
Securities (see also Federal securities; Public debt):
Custody of Treasurer of U. S., amounts
124
Governmental, ownership of
574
Guaranteed by U. S. (See Corporations and certain other business-type
activities of U. S. Government, Obligations.)
Not guaranteed by U. S. (See Corporations and certain other businesstype activities of U. S. Government, Obligations.)
772
INDEX
Securities--Continued
Owned by U. S.;
Page
1954, June 30
43, 654
Foreign government obligations
124, 716
Receipts from
420
Summary for 1954
43
Security program. (See Personnel.)
Seigniorage. (See Silver.)
Silver (see also Money):
Assets and liabilities of Treasury
121, 580
Bullion:
Stock
121,136. 580. 660. 663. 665
Tax on sales and transfers
449
Certificates:
Engraved, printed, and delivered
88
In circulation. Federal Reserve Banks, and Treasury, and
stock
580, 660, 661, 664
Issued and redeemed
666
Lend-leased to foreign governments
110
Monetized
121,137
Production and use
139
Seigniorage:
Deposits by Bureau of the Mint
137
Mint receipts 1953 and 1954 and monthly 1954
420
Transactions at mint institutions
137
Sinking fund, cumulative;
Credits and total available:
1921-54
546
1954
34, 546
Statutory debt retirements from . . . . . . . . . *
.....
545, 546
Slum clearance program
608, 610.612, 615. 655, 659
Small Business Administration;
Balance sheet
626
Expenditures
422,451
Income and expense
638
Interest paid to Treasury
659
Securities for loans, owned by U. S. . . , ^
657
Source and application of funds
648
Smaller War Plants Corporation . . .
41,622, 634, 644, 654
Sriuff tax
;
449
Social Security Act. (See Social security program.)
Social security program;
Employment taxes. (See Receipts, taxes and contributions, below.)
Expenditures:
Administrative . . . . .
428
Total
17, 445
Railroad programs amended
54
Railroad Unemployment Insurance Act, receipts arid expenditures
602
Receipts, taxes and contributions (employment taxes);
1953 and 1954
7
1954 and estimates 1955 and 1956 . .
9-13
By acts:
1947-54
444
1953 and 1954
9, 454
1954 and estimates 1955 and 1956
15,450
Changes in coverage and rates
53
Tax rate increase, effect
13
INDEX
773
Social security program--Continued
Social Security Act:
^^^^
Amendments of 1954, provisions
53
Grants to States
428, 683
Payments by States and programs
693
Social security, welfare, and health expenditures
17, 445
Soil Conservation Service expenditures
424
Spain, loan to
608
Special fund receipt accounts, explanation
410
Sporting goods tax
243, 245, 449
Stabilization fund
58, 289, 711
Stamp taxes
8,12,14, 245,455
Stamps engraved, printed, and delivered
88, 96
Stamps, U. S. savings:
Issues and redemptions;
1953 and 1954 and monthly 1954
518, 519, 522
1954 . . . '
543
Outstanding:
1944-54, June 30
473
1953 and 1954, June 30
,
543
1954, June 30
491
Limitation, statutory
467
State, Department of, expenditures;
1947-54
444.
1953 and 1954 and monthly 1954
,
430
1954 and estimates 1955 and 1956
18,451
State, local, and territorial governments:
Federal aid to, expenditures by agencies;
1930, 1940, 1950, and 1954 by appropriation
tities
682
1954 by States and programs
688
Governmental security holdings:
Federal securities:
1941-54
36, 574, 576
1954, June 30
38
State, local, and territorial government securities, June 30,
1941-54
'
...
575, 576
Securities held by various classes of investors, June 30, 1941-54 . . . .
575, 576
State unemployment agencies, receipts and expenditures
602
Stock transfers tax
,
245. 449
Strategic and critical materials
16, 61,134,444
Subsidiary silver coin;
Coinage
135
In circulation. Federal Reserve Banks, and Treasury, and
stock
136, 660, 663-665
Sugar tax
246, 450, 458
Surety bond operations
105
Surplus or deficit, U. S. Government:
1789-1954
415
1916-54
544
Budget:
1932-54 and monthly 1954
412
1947-54
445
1951-54, chart
6
1953 and 1954
5, 7, 432
1954 and estimates 1955 and 1956
451,453
Cash basis estimate.1954 and 1955
220
774
iNDfx
Surplus property disposal:
Administration of foreign currencies and credits
Lend-lease, and foreign indebtedness to U. S
Receipts from:
1947-54
1953 and 1954 and monthly 1954
Page
102, 397
110
444
420
Tariff act, imported articles, classification
304
Tariff Commission, tariff schedules, revisions proposed
302
Tax and loan accounts. Treasury
25, 28. 29,103, 580
Taxation (see also Internal revenue. Collections; specific taxes):
Accounting provisions
258
Alimony and separate maintenance payments
251
Annuities
48,215, 236, 247, 248, 250, 254
Armed forces combat pay
253
Burden reduction
1
Business expansion, removal of deterrents
;
49
Business income from foreign sources
218, 231, 241, 247, 248, 269
Capital gains and losses
247, 248, 272, 275
Charitable contributions
48, 236, 247, 248, 255, 280
Children:
Care expenses
48, 215, 233, 236, 247, 248, 253
Foster
215
China Trade Act corporations
269
Clarification of tax law
240
Clergymen, exclusion from gross income of rental allowance
253
Collapsible corporations and partnerships
52, 239, 270
Consolidated returns of corporations
241, 247, 248, 265, 272
Constimtional amendment proposal, relating to income, inheritance,
and gift taxes
287
Cooperative housing, tax and interest deductions
255
Corporation Income tax;
Payments, acceleration
5, 8,11,14. 37, 47, 218, 235, 285
Rate continued
247, 248
Reduction, deferment recommended
219, 223, 226
Revenue estimates
14, 44, 226, 234, 235, 246
Schedule of payments under 1950 law and under Internal Revenue
Code of .1954
285
Surtax exemption
217
Corporations, reorganization and recapitalization
217, 234,, 240, 266-269
Death benefits
52
Dependents, exemptions
48, 214. 227, 233, 235, 247
Depletion of natural resources
247, 248
Depreciation allowances
49, 216, 220, 227, 233, 236.237, 247, 248, 256
Developments 1954
43-54, 214
Distributable trusts
247
Dividends:
Double taxation
50
Exemptions
216, 220, 222, 224, 227, 234, 237, 247, 248, 256
Intercorporate
241
Employees, plans for:
Medical insurance and sick benefits
48, 52, 215, 233, 236, 239, 251
Multiple death benefits
239, 252
Pension and profit sharing
215, 265
Stock-bonus
265
INDEX
775
Taxation--Continued
Page
Estate and gift taxes
278, 287
Estates and trusts
240, 273
Estate tax
247, 273, 278, 286
Evasion or avoidance opportunities, removal of
51. 270
Excess profits tax, expiration
10,11, 44
Excise taxes (see also Excise-Tax Reduction Act of 1954):
Automatic rate reductions postponed
44, 45, 244
Depositary receipt system, inclusion of
9,12.102. 458
Excise Tax Reduction Act of 1954, effect
8,10,12, 44, 45, 242
President's recommendation
219
Rate changes
242, 243-246
Revisions made by Revenue Code of 1954
281-284, 286
Tax returns, changes in payment and filing method
9,12
Gift tax revisions
286
Income tax:
Basic definitions, changes in individual
248
Business income, 1954 legislative changes
256
Declarations of estimated tax, individual
216, 247, 284
Filing date
216, 236, 284
Heads of households
214, 247 -249
Hobby losses
254
Income earned over a period of years
251
Individual income concepts, components, exclusions, deductions, and credits
248-255
Normal tax and surtax rate schedules
246. 247
Personal exemptions, estimated effect of increasing
223. 228
Rate reduction
10, 11, 44, 330
Revenue estimates
44, 226, 228, 246, 247
Splitting provisions
48, 214, 235, 247-249
State and local withheld from Federal employees' compensation . . . .
106
Indebtedness of corporations, discharge of
270
Liequities in tax structure
47, 214, 219, 225, 226, 231, 234, 235, 331
Installment purchases, interest
48. 227, 236. 247. 248. 254
Interrial Revenue Code of 1954. (See Internal Revenue Code of 1954.)
Inventories. LIFO. liquidation
270
Legislation, miscellaneous, enacted by Eighty-third Congress
288
Lessee corporations
269
Level determined by defense needs . . , . . ,
221. 235
Life insurance:
Companies
272
Proceeds
52. 239. 247, 248, 250, 279
Liquidations of corporations
267
Loophole closirig
51, 234, 239
Loss carryback or carryforward
50, 217, 234. 238. 239, 247, 248, 257, 269
Loss corporations, tax evasion device
51, 217, 239
Meals and lodging furnished by employer
252
Medical expens.es
48, 215, 227, 233, 236, 247. 248, 253
National income, proportion for taxes
226
Natural resources
260
Objectives of tax program
47, 214, 220-222, 226, 228, 230, 234-242
Operating loss deductions
254
Organization, reorganization, and acquisition of corporations
268
Organizational expenses of corporations
259
Partnerships ,
217, 240, 262
Parmerships and proprietorships taxed as corporations
247, 248
776
INDEX
Taxation--Continued
Page
Personal holding companies
271
Preferred stock bail-out
51, 239
President's recommendations
43, 45,46, 214-219, 221, 234. 241, 287, 322
President's statement upon signing the Internal Revenue Code of 1954 . . .
233
Prizes and awards
251
Property and stock distributions of corporations
266
Proposed legislation
449
Real estate taxes and special assessments
254
Regulated investment companies.
271
Reporting and collecting procedures simplification
218, 284
Research and development expenses
50, 217, 233,238, 258
Retirement income tax credit
48, 227, 233, 236, 247, 248, 255
Revenue effect of tax revisions, estimated
44, 219, 220, 222, 226,
229,234,235.246,247,331
Scholarship and fellowship grants
252
Secretary of the Treasury's reconimendations
225
Social security taxes and benefits
53
Soil and water conservation expenses
49, 217,
227,233,236,247,248,258
State and local income taxes withheld from Federal employees* compensation
106
Subsistence allowances
253
Surplus accumulation
51. 217, 234, 238, 247, 248, 264
Tax accounting definitions, clarification
52, 217, 240
Tax-exempt organizations
272
Taxpayers, number affected by certain tax revisions
223, 227, 248
Tax revision bill. (See Internal Revenue Code of 1954.)
Tax treaties with foreign countries for alleviating double taxation
232
Treaties with foreign nations
128
Trusts, tax revisions
:
273
Western Hemisphere Trade corporations
269
Tax evasion convictions
^ • 127
Tax-exempt and taxable Government issues, terms of
476
Tax returns received, examined, and investigated
126
Telephone, local service, tax
243, 246,450, 457
Telephone, telegraph, cable, and radio facilities, e t c . , tax
243, 244,
246,250,457
Television tax. (See Radios, phonographs, television sets, e t c . )
Tennessee Valley Authority:
Balance sheet
622
Borrowing power
..=
608
Expenditures:
1953 and 1954 and monthly 1954
422
1954 and estimates 1955 and 1956
18, 451
Income and expense
634
Interest and receipts from, power operations paid to Treasury
659
Obligations:
Held by Reconstruction Finance Corporation, June 30, 1944-46 . . . .
475
Held by Treasury:
1944-54, June 30
610
1953 and 1954, June 30
615
1954, June 30
608, 613, 655
Description
613
Transactions
615,655
Source and application of funds
644
INDEX
777
Page
Thrift and Treasury savings stamps
- 491, 543
Tobacco taxes
8,12, 14,125, 245, 281, 283,449.455
Toilet preparations tax
243-245,450, 457
Trade agreements program
313
Transportation and communication, expenditures
445
Transportation, persons and property, taxes
242, 243.450. 457
Treasurer of the United States;
Account of the
.....
19. 20, 98.100,120
Accounts of the
•_.
,..
121, 580
General account of the
97, 98, 99
General fund accbunt of die
,.
19.20,458, 580
General fund of the
19,103, 580
Office of;
Administrative report
119-124
Claims for proceeds of paid Philippine war damage and Veteran's
Adminisaation depositary checks developed and adjudicated
123
Coin distribution, functions transferred to Bureau of the Mint
380
Employees, number of, quarterly June 1953 to 1954
723
Management improvement program
67,120
Paid check claims processed by
,
123
Treasury assets and liabilities
580
** Treasury Bulletin, " corporations* quarterly statements in
628
Treasury, Department of:
Administrative and staff officers
XV, 68
Awards program
XVIII, 66,107
Classified security information, delegations and instructions
365-375
Dividends; interest, e t c . , received from Government corporations . . . . . .
659
Employees, number of, quarterly June 30, 1953 to 1954 .
723
Expenditures;
1953 and 1954 and mondily 1954, details
430
1954 and estimates 1955 and 1956
18, 451
Payments to individuals, e t c . , within States, 1930 by appropriation
titles
,
686
Internal auditing
101,133,155, 299
Liquidation and lending, offices established and functions transferred •
69, 381
Loans and assets, miscellaneous:
Balance sheet
624
Income and expense
636
Source and application of funds
646
Management improvement programs. (See Management improvement
program.)
Orders
350
Organization and procedure
350
Organization changes
68
Organization chart
XX
Personnel security cases, designation of Administrative Assistant Secretary to take final actions
375
Secretaries, Under Secretaries, and Assistant Secretaries
XHI
Securities acquired by
656, 657
Security officers designated
359
Vouchers, authority to certify delegated
362
Treasury fund structure, description
409
Treasury Management Committee
XVIII, 65
Treasury notes of 1890
,
580, 660, 661, 664, 666
Treasury (war) savings securities (matured)
490, 542
778
INDEX
Trust account and other transactions (see also Cash income, outgo, and
balance; Government investment accounts; Public debt. Special issues;
specific funds):
Investments of Government agencies in public debt securities, net;
1946-54
1953 and 1954 and monthly 1954
1954
1954 and estimates for 1955 and 1956
Major classifications 1946-54
Net of, excess of receipts or expenditures;
1932-54 and monthly 1954
1946-54
1953 and 1954
1954 and estimates 1955 and 1956
Rederaptions and sales of obligations of Governraent agencies in the
market, net;
1946-54
1953 and 1954 and monthly 1954
1954
1954 and estiraates 1955 and 1956
Suraraary for 1954
Trust accounts, e t c . ;
Expenditures (except net investments);
1946-54 . . , ,
,
1953 and 1954 and raonthly 1954
1954 and estiraates 1955 and 1956
Explanation
Receipts;
1946-54
1953 and 1954 and raonthly 1954
1954 and estiraates 1955 and 1956
Receipts, or expenditures, net:
1946-64
1953 and 1954 and mondily 1954
1954
Uninvested trust funds, interest
Trust fiinds and certain other accounts of the Federal Government
Page
448
442
19
452
447
412
448
5
452,453
448
440
19
452
18
447
436-438
452
410
447
434-437
452
447
438
19
432
582-607
u
Under Secretary for Monetary Affairs;
New statutory position
Statement, Sept. 25, 1954, at the discussion of the annual report of the
International Monetary Fund
Under Secretary of the Treasury Folsora:
Reraarks and stateraent:
Dec. 3, 1953, before the National Association of Manufacturers
June 4, 1954, at Bicentennial Celebration. Columbia University
June 10, 1954, before the Senate Committee on Post Office and
Civil Service
June 24. 1954. before the National Council for Community I m provement
Aug. 19. 1954. before the American Management Association, on
the philosophy of the new tax bill
Unemployment Insurance, Federal Unemployment Tax Act extended and
revised
68
317
329
333
334
338
234
54
INDEX
779
Unemployment trust fund:
Amounts credited to accounts of State agencies and to raihoad unemPage
ployment insurance account
604
Certificates of indebtedness issued to;
Interest, computed rate
471
Issues and redemptions:
1953 and 1954 and monthly 1954
520, 521, 524
1954
533
Outstanding;
1944-54, June 30
473
1953 and 1954, June 30
533, 604
1954, June 30
471. 489
Description
489
Deposits by States
434. 452
Investments
., 442, 448, 582, 604
Receipts and expenditures:
1946-54
447
1953 and 1954 and monthly 1954
434,436
1954 and cumulative
602
1954 and estimates 1955 and 1956
452
Statement
602
United Kingdom (see also Anglo-American Financial Agreement), sterling
area gold and dollar reserves
56, 57
United Nations, Relief and Works Agency for Palestine Refugees in the Near
East
112
U. S. Army and Air Force Motion Picture Service, investments made by
Treasury 1944-54
584
U. S. Coast Guard:
Administrative report
142 -155
Commandant, functions delegated to
376-378
Expenditures, 1953 and 1954 and monthly 1954
430
Funds available, obligations, and balance
155
Law enforcement activities
143
Management improvement program
68,154
Personnel, number
152, 723
U. S. Commercial Company
654
U. S. Housing Authority
685
U. S. Information Agency expenditures
422,451
U. S. Naval Academy;
General gift fund;
Investments
,.
584, 608
Statement of receipts, expenditures, and assets
606
Museum fund, investments
584
U. S. notes;
Engraved, printed, and delivered
88
In circulation, Federal Reserve Banks, and Treasury, and
stock
580, 660. 663. 664
Issued and redeemed
666
Public debt item (U. S. notes less gold reserve);
Limitation, statutory, not subject to
467
Outstanding June 30;
1944-54
473
1953 and 1954
543
U. S. savings bonds. (See Bonds. U. S. Government.)
U. S. Savings Bonds Division;
Administrative report
156-158
780
INDEX
U. S. Savings Bonds Division--Continued
Page
Employees, number of, quarterly June 30, 1953 to 1954
723
Management improvement program
67, 68
U. S. Secret Service:
Administrative report
158-161
Arrests and cases disposed of
161
Chief, delegation to of authority relating to offences with respect to
coins, etc
379
Employees, number of, quarterly June 1953 to 1954
723
Investigation of criminal and noncriminal activities, 1953 and 1954 . . . .
160
Law enforcement activities
159
Management improvement program
158
Protective and security activities
159
Theft of Federal Reserve notes, recoveries
, 159
U. S. Spruce Production Corporation, investments 1944-46
585
V
Vehicles and persons entering U. S
74. 678
Veterans' Administration:
Borrowing power
608
Expenditures:
1947-54
445
1951-54 and average 1947-50
16
1953 and 1954 and monthly 1954
424
1954
15,16
1954 and estimates 1955 and 1956
18, 451
Grants to States and local units;
1930, 1940, 3950, and 1954 by appropriation
titles
685
1954 by States and progranis
696
Payments to individuals, etc. within States by:
Appropriation titles 1950 and 1954
687
States and programs 1954
702
General post fund Investments
583
Guaranteed loans:
Balance sheet
626
Income and expense
.
638
Source and application of funds
648
Interest paid to Treasury
659
Obligations held by Treasury
608, 610, 613, 655
Securities for loans to veterans, owned by U. S
657
Veterans' direct loan program
608, 610
Veterans' life insurance funds;
Investments
442, 582
Receipts and expenditures
434,438, 452
Veterans' special term insurance fund:
Certificates of indebtedness issued to;
Issues and redemptions:
1953 and 1954
520, 521, 525
1954
533
Outstanding:
1953 and 1954, June 30
.......
473. 533
1954, June 30 \
471,489
Description
489
Investments
582
INDEX
Virgin Islands Corporation;
Balance sheet
Income and expense
Interest paid to Treasury
Obligations held by Treasury:
1948 and 1949, June 30
1954, June 30
Source and application of funds
y3j
Page
618
630
659
610
657
640
w
Wagering tax
246,450
War Damage Corporation
622, 654
War Department. (See Army, Departmentof.)
War housing insurance fund;
Debentures:
Engraved, printed, and delivered
88
Held outside Treasury:
1944-54, June 30
474
Calls for redemption of Series H and J
213
Description
494
Investments made by Treasury 1944-54
683
Treasury notes issued to:
Issues and redemptions
533
Outstanding:
1947-54, June 30
473
1953, June 30
533
Warrants-issued basis of data
408
Wines tax
244, 245, 282, 449, 455
Working fund accounts, explanation
410
Workmen's Compensation Act Fund. (See District of Columbia.)
Y
Yields of Treasury securities. (See Public debt. Prices and yields.)
Yugoslavia, internationai claims, payments
U. S. GOVERNMENT PRINTING OFFICE : 1955 O - 339256
Ill
@FedFRASER