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.Will

•-*-— '-1--—

iLJLI^i^MMWIpWIW

W t t W D^RtM£NT UBAUr

LIBRARY
ROOM 5030
JUN 1 ^ 1972
TREASURY DEPARTMENT

X
ciLieASE MORNING NEWSPAPERS,
*edar, May 1*, 19$k*

The Treasury Departssent announced last svsulngthat the tenders for $1,500,000,000,
or thereabouts* pt 91-day frmamwry bills to be dated Msgr 6 and to aatiar© Augus t
I9$k, which were offered on April 29, were opened at the Federal Reserve Banks on
Kay 3* •/
y
Xtif details of this Issue are as follows s
Total applied for - $2,290,218,000
total accepted
- 1,502,1*33,000 (includes 1199,591*000 entered on a
noncompetitive basis and accepted in
full at the average pries shown below)
Average price
- 99*805 l<g»lvalsai rats of dlaoowit approx. 0*773$ per annum
Hangs of accepted competitive bids:
High - 99.808 Equivalent rats of discowit apfroau 0*760$ per annua
Low
- 99.803
«
»
n
«
it
o.?79$
(10 peroent of the amount hid for at t&e low price was accepted)
Federal Eeserve
District

total
Applied for

Boston
Hew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco

#
lit, 632,000
1,687,770,000
35,169,000
36,567,000
9,3fk,000
21,559,000
265,^1,000
17,8714,000
19,312,000
67,239,000
1*0,775,000
7^,616,000

|
7,782,000
1,077,933,000
17,2te,000
26,227,000
5,810,000
11,079,000
202,906,000
16,10.0,000
17,1*12,000
1*2,832,000
33,^25,000
1*3,375,000

12,290,218,000

11,502,U33,000

total

;j1

total
Aeoepted

TREASURY DEPARTMENT
WASHINGTON, D.C
RELEASE MORNING NEWSPAPERS,
Tuesday, May 4, 1954.

H-467

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated May 6 and to mature August 5, 195k, which were offered on
April 29, were opened at the Federal Reserve Banks on May 3.
The details of this issue are as follows:
Total applied for Total accepted

2,290,218,000
1,502,433,000 (includes $199,591,000
entered on a noncompetitive
basis and accepted In full
at the average price shown
Average price
below)
- 99.805 Equivalent rate^ of discount approx.
Range of accepted competitive bids: 0.773$ pe^ annum
High

- 99.808 Equivalent rate of discount approx.
0,760$ per annum
Low
- 99.803 Equivalent rate of discount approx.
0.779$ per annum
(10 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
^__
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL

Total
Applied for
\
14,632,000
1,687 ,770,000
35 ,189,000
36 ,567,000
9,394,000
21 ,559,000
265 ,291,000
17,874,000
19,312,000
67,239,000
40,775,000
$2,290,218,000
74 ,616,000

0O0

Total
Accepted
9

( ,782,000

1,077 ,933,000
17,242,000
26 ,227,000
5 ,810,000
11 ,079,000
202,906,000
16,410,000
17,412,000
42,832,000
33,425,000
$1,502,433,000
43 ,375,000

3
^

, - 3 -

DUG shall be exee.pt from all taxation noiT or hereafter imposed on the princip

or interest thereof by any State, or any of the possessions of the United State
or by any local taxing authority. For purposes of taxation the amount of dis-

count at vfhich Treasury bills are originally sold by the United States shall b
considered to be interest. Under Sections \±2 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 lehich bills issued hereunder are sold shall not be considered t
accrue until such bills shall be sold, redeemed or otherwise disposed of, and
such bills are excluded from consideration as capital assets. Accordingly,
the ovmer of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the

price paid for such bills, y;hether on ori<£Lml Issue or on subsequent purchase
and the amount actually received either upon sale or redeieption at maturity

during the taxable year for -allien the return is made, as ordinary gain or los
Revised
Treasury Department Circular No. l£8,/*»*a*csi*v£ant, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their
issue. Copies of the circular may be obtained from any Federal Reserve Bank
or Branch.

4
2 -

payment of 2 percent of the face amount of Treasury bills applied for, unless

the tenders are accompanied by an express guaranty of payment by an incorporate
bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made
by the Treasury Department of the amount and price range of accepted bids.

Those submitting tenders will be advised of the acceptance or rejection thereof
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be accepted
in full at the average price (in three decimals) of accepted competitive bids.
Settlement for accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on ___ May 13, 1954 , in cash or
XxX
other immediately available funds or in a like face amount of Treasury bills
maturing May 13, 19$k Cash and exchange tenders will receive equal

x£xx

" "

treatment. Cash adjustments will be made for differences between the par
value of maturing bills accepted in exchange and the issue price of the newbills .
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 syx.cial troitment, 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,

TREASURY DEPARTMENT
Washington
wasnington

FOR RELEASE, MOWING NEWSPAPERS, f7 ^ 7 ^ ^
.Thursday^ May 6, 1954
The Treasury Department^ by this public notice, invites tenders for
fe 1*500.000,000 , or thereabouts, of 91 -day Treasury bills, for cash and
in exchange for Treasury bills maturing May 13, 1954 ,

the amount of

$ 1a501,29k,000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated _ May_13, 1954^ , and'mil mature August 12, 1954 , when the face

amount will be payable without interest. They wall be issued in bearer form only
and in denominations of §1,000, $5,000, &10,000, $100,000, $500,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o'clock p.m., Eastern/Staadaosx time, Monday, May 10, 1954
Tenders will 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 thre
decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which will b
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by

RELEASE MORNING NEWSPAPERS,
Thursday, May 6, 1954.

H-468

The Treasury Department, by this public notice, invites tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills, for
cash and in exchange for Treasury bills maturing May 13, 1954,
in the amount of $1,501,294,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated May 13, 1954,
and will mature August 12, 1954, when the face amount will be
payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Daylight Saving time,
Monday, May 10, 1954.
Tenders will 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
special envelopes which will be supplied by Federal Reserve Banks or
'.Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which-public announcement will be made by the Treasury Department of the amount and price
range of accepted bids. Those submitting tenders will be advised of
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders
in whole or in part, and his action In any such respect shall be
final. Subject to these reservations, non-competitive tenders for
^200,000 or less without stated price from any one bidder will be
accepted In full at the average price (in three decimals) of accepted

- 2S J i
! e bi( i 3 * Settlement for accepted tenders In accordance
on u
j m u 3 t b e m a d e o r corn P lete d at the Federal Reserve Bank
n May 13, 1954,
In cash or other immediately available funds
or in a like face amount of Treasury bills maturing May 13, 1954.
oasn and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bill3, 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. Under Sections 42 and 117 (a) (r) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the
amount of discount at which bills Issued hereunder are sold shall nol
be considered to accrue until such bills shall be sold, redeemed or
otherwise disposed of, and such bills are excluded from conslderatioi
as capital assets. Accordingly, the owner of Treasury bills (other
than life Insurance companies) issued hereunder need Include in his
income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase,
and the amount actually 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. 4l8, revised, and this
notice, prescribe the terms of the
Treasury bills and govern the
0O0
conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

The Treasury Department announced today that it is taking
s »eps to j-ioeralize the orders and regulations severnine the
acpuisition and use of gold in the United States. No change in
monetary gold eolicy, or any other chase of the Government's geld
4*

policy, is involved.
m a notice of proposed ^amendments to the Gold ^Regulations
published in the Federal Register, the Treasury proposes to relax
or eliminate a number of technical procedures and restrictions in
order to reduce as far as possible the burden of the regulations
on persons engaged in industries, professions and arts which require the use of gold. Among the more significant changes of this
type are: increasing from 35 to 50 ounces the amount of gold which
can be held by processors without a license, broadening considerably
the definition of "fabricated gold" which can be held or exported
•without a license, and cutting down on reports which have to be
filed by nersons engaged in gold industries. In addition, another
troposed change would clarify the rights of coin collectors to
acauire and possess gold coins made prior to 1933.
Some of the existing requirements which it is proposed to relax
were instituted at a time when conditions led to illegal diversion

and smuggling of gold. For some time now the price of gold in so-calle
"free" and black markets abroad has been within such a close range of
the official -nited States 135 per ounce price, that there has been
little incentive to divert geld from normal channels to such markets.

TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS,
Saturday, May 8, 1954.

H-469

The Treasury Department announced today that it
is taking steps to liberalize the orders and regulations
governing the acquisition and use of gold in the United
States, No change in monetary gold policy, or any other
basic phase "of the Government's gold policy, is involved.
In a notice of proposed amendments to the Gold
Regulations published in the Federal Register, the
Treasury proposes to relax or eliminate a number of
technical procedures and restrictions in order to
reduce as far as possible the burden of the regulations
on persons engaged in industries, professions and arts
which require the use of gold. Among the more significant
changes of this type are: increasing from 35 to 50
ounces the amount of gold which can be held by processors
without a license, broadening considerably the definition
of fabricated gold" which can be held or exported without a license, and cutting down on reports which have to
be filed by persons engaged in gold industries. In
addition, another proposed change would clarify the
rights of coin collectors to acquire and possess gold
coins made prior to 1933.
Some of the existing requirements which it is
proposed to relax were instituted at a time when
conditions led to illegal diversion and smuggling of
gold#|j For some time now the price of gold in so-called
free and black markets abroad has been within such a
close range of the official United States $35 per ounce
price, that there has been little incentive to divert
gold from normal channels to such markets.

oOo

TREASURY

'-NT
-<*

~-in;«««.i,W3«|gwi

W A S H I N G T O N ]>-C

ntawte no *m.HUa ton*, SS s to*™*,.

Ts6o*

tit

p^ *dX

•V-I io ^ „ t l 0 rf8£a * w w w «f» w* OOO.OXJ osd* . M M
•e*i*q*»*A» . M M So .aon . « u _ A . 8 i T O g lo 89*3l. , „ „ ,

TOi mcti
w

.tesatrann* tlMratoi*. «* tUfd ax fcei^m* *d xxiw nasi
too*, **,££*. 84»9^0XX. I**0? .ootf^ fi^t &g^s fe^ ^u,^iM•noilXirf S.St
-*«II«.4|»-.isa*t*ft?a*rf«8 w

«tai«*i:2

*V*M*B

j * ™ ^ ttf «fl*»»«r

X«*&*P « « l &STi»3«„ * » rtwqw I«til rwrfw 6.^«oca« «f Ixiw 8rfnsra

MISBIaTt UUtlSt,

h'Y "" "7 ' ^

Friday, Hay 7. ifrSfo,
the treasury today aimomaeed a ft percent allotment an mbmrip*
tlam tar more than $10,000 for the current amah ottering at l«*?/8
percent treasury Motes at Series A-19$9, Mane at these ST&seriptieiis
w i U be allotted less than #10,000, aast subscriptions tar #10,000 mad
lass will b® allotted in full, as previously aimoumett.
Reports received from the Federal Reserve Banks show that subscriptions total aboat 19-3/4 billion, total allotments will he about
12*2 billion.
Details by federal Saeerve Pistriets as to subscriptions and allotments will be announced when final reports are received from the Federal
Reserve Banks.

Tife Treasury spokesman said the response to
/

the offering was "very satisfactory."

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Friday, May 7, 1954.

H-470

The Treasury today announced a 22 percent allotment on subscriptions for more than $10,000 for the
current cash offering of 1-7/8 percent Treasury Notes
of Series A-1959.

None of these subscriptions will

be allotted less than $10,000, and subscriptions for
"$10,000 and less will be allotted in full,as previously
announced.
Reports received from the Federal Reserve Bunks
show that subscriptions total about $9-3/4 billion.
Total allotments will be about $2.2 billion.
Details by Federal Reserve Districts as to subscriptions and allotments will be announced when final
reports are received from the Federal Reserve Banks.
A Treasury spokesman said the response to the
offering was "very satisfactory."
oOo

flft

Hy Sear Antral 0* He ill:
k» ym. retire aftar fear and a Isilf
Cosii^a^nt of the Coast gsaj** I met M i l
again *imt » MstiagBi^sa @©a*ri*mtiea I Jliiide fmm
haw® m&m ta the Serriee mat tm "
I shall adse wesking wltk m t fe*% fea hate
felly saraed ttie retireeea* that ym hswm a o v a ^ a
reimettad, and I eaa only wish ye* OedapeeA aaf
years of happiness, i®4 reus* ay p#¥S#»*i sad
heartfelt thanks ter all th&t yam bam dma.
SiJ&eerelr ymwte.

Ties iiatrml Merlin O'SeUl
United states Coast Guard
Washington, D. 0«

J'i?

My dear Admiral O H M l l :
fleas* accept sty most sincere thanks for your
service
which you
you axe
axe now
ending by .requesting re
.ce which
m
it
Ouard.
tirsaent f roa tile Coast
You have ay apaelal thanks for postponing re tireaent for which you expressed a real desire when
your *iHtt previous/ter* was coapleted last December
S appreciate your/4assjMliag- appoiatnsat to a second
term because we fait your staying on would aalp
1 agreed then, and 1 now re
luctantly agree to recoBtiae»<J reconsideration of your
by the President, which I understand is sow
For your extended duty, as wall as your long
the Treasury and tail Nation are wa#y grateful. You
have the bast wishes of all for the enjoyaent of
your fatars years.

,<-v?f

Secretary of the treasury

Vice Admiral Merlin OfKeill
Cosmandant
United States Coast Guard
If, C.

MA^nnaxtson:nmw

rr-easurv ieere~ar" ryj^xrerey ana --s.ssistar.~ secretary.

letters exrr
exrressi~ ~'"'•
service. The letters follow:

TREASURY DEPARTMENT
WASHINGTON, D.C

IMMEDIATE RELEASE,
Friday, May 7, 1954.

H-471

Treasury Secretary Humphrey and Assistant Secretary Rose
have sent to Vice Admiral Merlin O'Neill, Commandant of the
U. S. Coast Guard whose request for retirement was approved today
by President Elsenhower, letters expressing their appreciation of
his oustanding service. The letters follow:
May 6, 1954
My dear Admiral O'Neill:
Please accept my most sincere thanks for your
service which you are now ending by requesting retirement from the Coast Guard.
You have my special thanks for postponing retirement for which you expressed a real desire when
your previous term was completed last December.
I appreciate your having accepted appointment to
a second term because we felt your staying on would
help complete certain major organizational changes
which were then pending. I agreed then, and I now
reluctantly agree to recommend reconsideration of
your request by the President, which I understand
is now being approved.
For your extended duty, as well as your long years
0
n ng
service in the Coast Guard, the Treasury
fl L°f£ ?r ^
and the Nation are very grateful. You have the best
wishes oi all for the enjoyment of your future years.
Best personal regards and best wishes.
Sincerely,
/s/G.M. HUMPHREY
Secretary of the Treasury
Vice Admiral Merlin O'Neill
Commandant
United States Coast Guard
Washington, D. C.

- 2-

May 7, 195^
My dear Admiral O'Neill:
As you retire after four and a half
years as Commandant of the Coast Guard,
I must tell you again what a distinguished
contribution I think you have made to the
Service and to the country.
I shall miss working with you; but you
have fully earned the retirement that you
have now again requested, and I can only
wish you Godspeed and many years of
happiness, and renew my personal and heartfelt thanks for all that you have done.
Sincerely yours,

/s/
H. Chapman Rose
Assistant Secretary of the Treasury

Vice Admiral Merlin O'Neill
Commandant
United States Coast Guard
Washington, D. C.

0O0

•iiiiEt.se, mmam

the Tmmmm

yi
e

KSSPAJ-SRS,

Btprtwiiifc announced last evaatas tHat tn® taadsrs imw |l f 500*000,00*

or tlswaaJMOta, if -ffeNtay tiwaaavar MLUa %a fca drnMd aay 23 aai ta amtam August 31,
l$Se* wbioh vara oTfawaA am Wm ^* w^ 4L»N** at tka FaiaFaX Basewe Bsafei ea Hay ,10*
9l*a dfrtalla «£ this Isaaa arm m fallowst
Tvewl appli** for * ft2f23$»01*tOOO
trtal mmptad
- ^ii^fts&OQO

(tasladaa t * U t & 2 * a » a«*vw* on a
msaaasiawiUwa lasis md accepted in
f a H at the average price shown balsa)
S*dn*!aw* rata af iiaeauat appraa* 0<Ji$S par annum

- 9 M K
awifc

;

5P*aiF^lWfffcpaf^r™iS

Ililh

^PTlffSjSTjIgFw**' W w

S*T*»»* l * f

KpaJwSBPHpF'a

0.«8I
0.§3*S •

- 99*19$ stslwslsa* rata af aisaam* a*?

• — * w

* m\m

X*w«

«r tba

•

M A iwt at the low price was
fatal
&mllj®d for

District
Bdstoa
Haw 1^?k
lli*U»w*Wpbla
Cleveland
Atlanta

• •

Total

l*fft*»000

13,757*000
31,7*4,000
io9tes>ym
22,679*000
ft3Q,7**»000

kQ00
11,602,010

ttfcJlUK*

it. toils

gfeGflfeOOO
aj^OfttOOD

tt**saa Citf
laltes
S^a ^raaeisco

66»05»OQO
3d,TO,"130
101,2^1,000
T0EU> ItfSwJiOWtOOO

XTtMfeOQft

MUifcooo
3it?w,oo©
SfclOfcOQO
tt,#i3»ooo
88,6§§tOO0
fX,SOQ,ati9,aO0

TREASURY DEPARTMENT
WASHINGTON, D.C

RELEASE MORNING NEWSPAPERS,
Tuesday, May 11. 1954.

H-4/2

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated May 13 and to mature August 12, 1954, which were offered on
May 6, were opened at the Federal Reserve Banks on May 10.
The details of this issue are as follows:
Total applied for - $2,285,019,000
Total accepted
- 1,500,549,COO

(includes $211,612,000
entered on a noncompetitive basis and
accepted in full at the
average price shown below)
Average price
- 99.792 Equivalent rateof discount approx.
0*825$ per annum
Range of accepted competitive bids:
High - 99,835 Equivalent rate of discount approx.
0.653$ per annum
Low
- 99.789 Equivalent rate of discount approx.
0.835$ per annum
(2 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District
Applied For
Boston $ IS,943,000 $ 17,463,000
New York
1,544,533,000
Philadelphia
26,757,000
Cleveland
35,745,000
Richmond
11,602,000
Atlanta
24,573,000
Chicago
253,331,000
St. Louis
23,074,000
Minneapolis
40,072,000
Kansas City
66,515,000
Dallas
36,723,000
San Francisco
101.251,000
TOTAL $2,265,019,000 $1,500,849,000

Accepted
$41,198,000
13,757,000
32,745,000
10,602,000
22,679,000
230,726,000
20,174,000
38,778,000
58,419,000
25,623,000
£6,585,000

Immediate Release
Monday yiay 10, 1954

Tbe Treasury Department todayy^ ietteivto the Secretary
sjj request"
t^^l^^isswsss«*^k^M^^^!^Byi^^M \js the Goverryne
of State

of, Finland 8;'statement concerning imports of hardboard from
Finnish c aapanies; %^L-fasw*ap^W^PWw^
-» / *-* ¥&i"~i£ *
It muM ha m^mmdmtmd U yam waaJA ^raavmtt
%Hs tmmm$m i^ovmtlm u> the loaish
mm bshalf a* thm Hftn*t|»
W» ftaastwgr is gfatm**! at t&t
that wtOaatary action m
thm
a

*MT%

at %h»
4afc ia

la the usitsA states at i*ftasa allugad ta as
laaAiis**
r^ot be§n afspcaialag
la balsg swat to t&§
is swing a4«*w*alA« i Tsllaiasry
la
salivas a
this

i4»
is a
tic® sf thlB

amUm at the finds*
a
this a*IdU

Mi.

witi\ Messrs.Mel
Weitl
cc-ifes^s i Tho^ten V . Kali
G.l
,State\)ept.

of Stats,

54^KR:mc
5/6/545

5^4

TREASURY DEPARTMENT
WASHINGTON. D-C.
pasr.TA?r BhSMSE

B-473

The Treasury Department tsdfey made iswiLic the follxsong letter to the

S e e ^ y ^ l S e ^ ^ ^ g ^ S ^ i ^ a l to the Goweroamt of Finland a statemeat concerning aborts of barSwaro from certain liiinish ccmpasiess
Bay 7, 393i
]^f dear Br, Secretary:
It would be appreciated if you would transmit the follosing inforation to liie Finnish Gowerimeiit on behalf o*.
the Treasury.
She Treasury Is gratified at the advice received fxom_
the Finnish GoTenraent ihst ^Ojoatary action on the part ox
the Finnish ^x^board Issoeistion has gone a long way toward
solving difTijciilties arising wader i2wj infddwjsiiiig let m rerard to haroboazd isaxarfe froa Finland, Several Flemish
companies hare been selling kardboard in the united States at
prices alleged to he wnder foreign market value, file Treaswiy
is advised That for sose tame Customs1 appraisers bare not
been appraising these entries and i&e vswal crsstoas notice as
being seat to the importers formally advising them thaw appraisement is being withheld. FreliaanEry discussions were
had wilii Fiimisb representattves in isasaingfcon coEcem^ng
Flemish export prices* Before any formal action was Lakes oy
the freaswry, the Finnish co^anies had, according to ths^
above advice, acted independently as a gronp to raise their
prices, based wpon their o*a estasates of ^ a t the statate
required*
The exact extent to w*r»cfi this price change meets the
statntary requirement is sow being stsdied hy the Treasury;
and the regaining question of injury to Ohe domestic industry will be decided pra^ily^ However, the wolantary sad
unilateral action of the Finnish companies is a sobstantial
contzibntion toward a satisfactory solatia^ of this and other
cases in this field*
Sincerely yours,
/s/ H. Chapman 3ose
Assistant Secretary of the Treasury
The Honorable
The Secretary of State.

STATUTORY

20
SeC ti0n 21

DEBT

LIMITATION

AS OF _JBT1L3Q*_

iSiL

f Second Libert

f V. A
j°
y Bond Act, as amended, provides that the face amount or obligations issued unaer auunxny
or that Act, and the face amount of obligations guaranteed as to principal and. interest by the United States (except such guaranteed obligations as may be held by the Secretary of the Treasury), "shall not exceedin the aggregate $275,000,000,000
(Act of June 26, 1946; U.S.C., title 31, sec. 757b), outstanding at any one time. For purposes of this section the current redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holder
shall be considered as its face amount."
The following table shows the face amount of obligations outstanding and the face amount which can still be issued under
this limitation:
Total face amount that may be outstanding at any one time
$ 2 7 5 * 0 0 0 , 0 0 0 000
Outstanding
Obligations .issued under Second Liberty Bond Act, as amended
Interest-bearing:
^^ _. ^_^
^
Treasury bills
$ 2 2 , 0 1 ^ , 283.000
Certificates of indebtedness
19,377,1?5»000
Treasury notes
_
32,30.9.001,900
$ 73,700,^59,900
Bonds Treasury
_
82,80? »121, 200
Savings (current redemp. value)___
57 , 966 » 560 , ^ 5 ^
Depositary
_
kll, 537,500
Investment serfes"_LI_
_
12,82^,098,000
15^,009,317,15^
Special Funds Certificates of indebtedness
Treasury notes..._
Total interest-bearing
Matured, intere s t-ce as ed

,
25 , 790 tj2x , 000
1*K 258,681,900
T
•

*& , 0*1-9 , 202 , 900
268 , 758 , 979 , 9 5 ^
303 , 337 , 600

•

Bearing no interest:
United States Savings Stamps
Excess profits tax refund bonds
..
Special notes of the United States:
Internat'l Monetary Fund series
Total

50,590,356
1,273,075

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A.
Matured, interest-ceased

1,378,000,000
„

1,429,863,^31
270,1*92.180,985

_
_,
78, 779, 086
1,046.650

79,825,736

Grand total outstanding
Balance face amount of obligations issuable under above authority

270,572,006,721
*r,*rfef , 77j?,^77

Reconcilement with Statement of the Public Debt April 30 %_ 195?' _.
"T/JaTeT '""

(Daily Statement of the United States Treasury,

Aygril 3 P , 19j?4

}

'(Date)

OutstandingTotal gross public debt
_
Guaranteed obligations not owned, by the Treasury
Total gross public debt and guaranteed obligations
Deduct- other outstanding public debt obligations not.subject to debt limitation

2 7 1 , 0 4 6 , 794,419
7 9 , 8 2 5 , 73^
271,126,620,155
55fy.613%4ffi
270,572,006,721

H-474

STATUTORY
AS O F

D E B T LIMITATION

*&?

1 2

1 9

April 3 0 . 1954___

Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under authority
of that Act, and the face amount of obligations guaranteed as to principal and. interest by the United States (except such guaranteed obligations as may be held by the Secretary of the Treasury), "shall not exceed in the aggregate $275,000,000,000
(Act of June 26, 1946; U.S.C., title 31. sec. 757b), outstanding at any one time. For purposes of this section the current redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holder
shall be considered as its face amount."
The following table shows the face amount of obligations outstanding and the face amount which can still be issued under
this limitation:
Total face amount that may be outstanding at any one time
$275,000,000,000
Outstanding
Obligations issued under Second Liberty. Bond Act, as amended
"T____?T__f * 22,014,283,000
Certificates of indebtedness
Treasury notes
Bonds Treasury
Savings (current redemp. value)
Depositary
Investment series
.
Special Funds Certificates of indebtedness
Treasury notes
Total interest-bearing
Matured,.interest-ceased
"T
<
Bearing no interest:
United States Savings Stamps
Excess profits tax refund bonds
Special notes of the United States:
Internal Monetary Fund series
Total
Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F J1.A.
Matured, interest-ceased

19,377,175* 000
32*309,001,900
8 2 , 80 7, 12£ , 200
5 7 * 966 , 56O , 4 5 4
4 U , 537,500
12,824,098,000
, ___ er>- ...
26,790,5^1»000
14.258.681.900

73,700,459.,900

154,009,317,154

4l,049,202,900
268,758,979,954
303,337,600

M
50,590,356
1,273 , 0 7 5
1,378,000,000
—

1,429,863,431
270,492.180,985

__
_.«,»
78 , 779, 086
1,046.650

79,825,736

Grand total outstanding
Balance face amount of obligations issuable under above authority

____.

270,572,006,721
» ' » s7J * —• t/

Reconcilement with Statement of the Public Debt April 30, 1954
(Daily Statement of the United States Treasury,

~7Date\
April 3 0 , 1 9 5 ^

(Date)

Outstanding Total gross public debt
Guaranteed obligations not owned, by the Treasury
Total gross public debt and guaranteed obligations
___
Deduct- other outstanding public debt obligations not.subject to debt limitation

271,046 , 794,419
79 , 825 , 7 3 "
271,126,620,155
5 5 ^ . 6 1 3 «*VjHr
270,572,006,721

- 3Business grows unhealthy, outmoded and inefficient unless
there is a constant flow to it. of invested savings t© pay tor
modernization of working condiytlone""and production. Unless
^•f L-fM^jA^-v- ^y

savings are invested, the tools in the bands of theAmeriean
worker become outmoded and bis production — and so M s
earning power — s&f» i^memimg. cy^sn*^' .x^-**^
I notlee that President Reuther Is quoted on the news
tickers this morning as pointing out that unemployment Is still
increasing In basic manufacturing Industries. This is an important point. We cannot have prosperity in America unless
the heavy industries have prosperity, fhe buyers of the
products of heavy industry -- generators, turbines, etc. -are the businesses j_n~-w_i_beh people "ihave invest «i their savings.
These heavy products are not bought by retail consumers, who
w^uld benefit -from £_# the© general income tax relief. But
provisions of the tax revision bill which will stimulate
investment will directly stimulate activity^ in the basic
manufacturing industries which Mr. Beuther has mentioned.
»

Such proposals in the tax revision bill as those which
woSllS reduce double taxation of dividends and allow more

flexible depreciation will help modernise the nation's .Industriaj
plant. And modernization can make more suramore Jobs at which
millions of people can earn higher wages by producing more and
better goods at less cost.

yip0$

\ \

Extracts from remarks by Secretary/Buaphrey before Congress
of Industrial Organizations, Hall of Hations Ballroom,
Washington Hotel, Washington, D. C , 3:00 p.»., May 11, 1954

The figures of>£et Friday afaowing#tha1^^

April was up by/5Q0,000 and unemployifeat down by <>§0,OOO from
jX X
the previoup-'month Indicate thjiir^we are heading in theN^ight
y4'

directtojtiiM making the eegifSnjbe transition from higher
y
y

lower/government spending.
y

Remember that employment In the

firatt four months of this year has been more than &0 million rv^

highest
in any filch fbur months except for last year!
I bel
that as America has confluence that it4 governmT
^
merit is doing 'th#xtMAgs it ought to jeXo — and not/doing the
nga^lt
yShoul&*r*^ Ho
ao --we
It/Shoulds^t
~- we will >on
Continue to *6e an in-

/ /

cre&sljaijly high level of activity, with more jobs and better
living £#r all*
Some people in recent months have asked when the government was going to get "in** the economy and "do something."
The fact is that the government is in the economy all the time,
in all the many ways that Its actions affect large groups of
our citizens.

street,
the gov
f*****«^is^^fcai&^
far-aMM^-M

^JCiyehouse
The actions government takes

every day are influencing — and we believe helping -- the
economy to help itself. We are —

and have been -~ taking

whatever actions are practical and proper and consistent with
the Pull Employment Act of 19*6# which charges the government
with helping to promote maximum employment "in a manner
calculated to foster and promote free competitive enterprise
and the general welfare,*

•

.Extracts rrom remark® by Seoretaryy|li»phr#y before congress
of Industrial Organisations, Sail m »atlons Mlrem,
y
Washington Betel, Washington, D. C'.V 3 J 0 0 p.a.,' May 11, 195*
The figures of JN&t Friday shoving Jlffai^^sployment in
April was up %>§&§,®d0 and' unemploj^mt down by Xd.OOO' from
the prevl©

1M1..W yr*

«r. hiding la th.

directioji in making the eofiomic transition from iigher
lower/government spe;
f tjftfc four months
highe

Remember that employment in the
y

this year has been more than 60 million -s

h four months except for last year!

I belief ijfeat'as Merita ha® confluence that tpi government is

things it ought to do — and noy doing the

thfing^ltys^ouiiir1!^'*-- 'wm will j&atxnu* to se^e an in•eifsla^ly high level of activity, with more jobs and better
IX^Xx^^mt all*
Some people In recent months have asked when the government was going to get ^in* the'economy and "d© something.**
-.••

• •

The fact Is that the government is in the economy all the time*
in all the many ways that its actions affect large groups of
our citizens.

street, tihejp^^J^^S^en vmlt^m^^^^m.-MrmhQixae
^§XS^^^^^-9^m»-hmtl to i®^ot*t* The actions"'government takes
every day are influencing — and we believe helping — the
economy to help Itself. We are — and have been — taking
whatever actions are practical and proper and consistent with
the Full Employment act of 19%6, which charges the government
iri'fh Kmininm to ©remote maximum employment *in a manner

TREASURY DEPARTMENT
Washington
FOR RELEASE ON DELIVERY
Extracts from remarks by Secretary of trie
Treasury George M. Humphrey before Congress
of Industrial Organizations, Hall of Nations
Ballroom, Washington Hotel, Washington, D.C.,
3:00 p.m., May 11, 1954

Some people in recent months have asked when the government
was going to get "in" the economy and "do something." The fact
is that the government is in the economy all the' time, in all
the many ways that its actions affect large groups of our
citizens.
The actions government takes every day are influencing —
and we believe helping -- the economy to help itself. We are -and have been — taking whatever actions are practical and
proper and consistent with the Full Employment Act of 1946,
which charges the government with helping to promote maximum
employment "in a manner calculated to foster and promote free
competitive enterprise and the general welfare."
There is a long list of things that the government has
done, is doing, and has proposed, which have a great bearing
upon the economy.
These include such things as Federal Reserve Board action
on credit; how Treasury handles its financing] the tax program;
legislation regarding old age insurance, housing, highway
construction; farm price supports, the wool industry and
Administration actions on unemployment insurance; stockpiling
of minerals; planning for public works; and many other things.
The tax program is a particular concern at Treasury.
When the tax revision bill now before the Senate Is passed,
tax cuts effective this year will total $7.4 billion -the largest total dollar tax cut in history. Also, the earliest
possible enactment of the tax revision bill will help greatly
the current economic transition. I hope for its early passage
for the good of everybody In America.
H-475

yo
- 2 While more than $4 billion of tax relief for individuals
is provided by the January 1 income tax cut and the excise
tax bill, there is also real relief in the tax revision bill
to millions of individuals who have been plagued by unjust
tax hardships for many years.
But the most important thing about the tax revision bill
is that it will stimulate investment of savings to help new
businesses to start, old businesses to modernize, and so
create more and better jobs and better living for everyone.
America has to make more jobs every year to keep the
people of America employed. So things that help the economy
expand ~- and so make more payrolls -- benefit everyone.
Breaking down the tax revision bill to say "this helps
individuals" or "this helps business" is meaningless.
Business can't have prosperity unless the great millions of
American individuals have prosperity. Likewise, millions of
individuals can't have prosperity unless the nation's economy
is healthy.
Business grows unhealthy, outmoded and inefficient unless
there is a constant flow to it of invested savings to pay for
modernization of working conditions and expansion of production.
Unless savings are invested, the power and tools in the hands
of the American worker become outmoded and his production — and
so his earning power — grow less.
1 notice that President Reuther is quoted on the news
tickers this morning as pointing out that unemployment is still
increasing in basic manufacturing industries. This is an
important point. We cannot have prosperity in America unless
the heavy industries have prosperity. The buyers of the
products of heavy industry -- generators, turbines, etc. —
are the businesses and the people who invest their savings.
These heavy products are not bought by retail consumers, who
already have been given general income tax relief. But
provisions of the tax revision bill which will stimulate
investment will directly stimulate activity and the making of
more jobs in the basic manufacturing industries which Mr. Reuther
has mentioned.
Such proposals in the tax revision bill as those which
reduce double taxation of dividends and allow more flexible
depreciation will help modernize the nation's machinery and
industrial plant. And modernisation can make more sure more
jobs at which millions of people can earn higher wages by producing
oOo
more and better goods at less cost.

>i
TREASURY DEPARTMENT
Washington

IMEDIATE RELEASE,
Wednesday, May 12.1954.

H-476

The Bureau of Customs announced, today preliminary figures showing the
quantities of wheat and wheat flour authorized to be entered, or withdrawn
from warehouse, for consumption under the import quotas established in the
President's proclamation of May 23, 1941* as modified by the Bresident»s
proclamation of April 13, 19I42, for the 12 months commencing May 29, 1953,
as follows*

Country
of
Origin

meat
:
:
r Established :
Imports
•
Quota
slyay 29, 1953, to
•
JMay 11. 1954
(Bushels)
(Bushels)

Canada
China
Hungary
Hong' Kong
Japan
United Kingdom
Australia
Germany
Syria
New Zealand
Chile
Netherlands
Argentina
Italy
Cuba^
France
Greece
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
Guatemala
Brazil
Union of Soviet
Socialist Republics
Belgium

795,000

—
_

100
—

100
100
—
—

3k
46
^
,.,

100
2,000

100
-

_
m„

1,000

100
_.
—

1,000

100
100
100
100

_
_
.»
_
_
_
—

„

Hheat flour, semolina,
crushed or cracked
wheat, and similar
wheat 1>roducts

s Established :
Imports
s
Quota
s Hay.29, 1953*
«
: to May 11. 195
(Pounds)
(Pounds)
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000

3,815,000

55ooo

100

5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

—

-V.

.=.
_

_
a.

..
mu

140

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Wednesday. May 12,1954

H-476
The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour authorized to be entered, or withdrawn
from warehouse, for consumption under the import quotas established in the
President's proclamation of May 23, 1941, as modified by the president's
proclamation of April 13, 1942, for the 12 months commencing May 29, 1953,
as follows*
9

«
«
1

s
1
1
:

Wheat
Country

of
Origin

Established :
ft
Quota
.May
ft
«
sMay
(Bushels)
«r

Canada
China
Hungary
Hong Kong
Japan
United Kingdom
Australia
Germany
Syria
New Zealand
Chile
Netherlands
Argentina
Italy
Cuba^
France
Greece
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
Guatemala
Brazil
Union of Soviet
Socialist Republics
Belgium

Imports
895 1953? to
11, 1954
(Bushels)

795,000

«.
mm
mm
mm

100

100
100

46
<m

—
—

100
2,000

100
-

1,000
-.

100
~.
...
~.

mg
mm

iheat flour., semolina,
crushed or cracked
wheat, and similar
wheat products

*
«

: Established :
Imports
:
Quota
t May 29, 1953s
to May u f 1954
(Pounds)
(pounds)
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

1,000

100
100
100
100

™

3,815,000
M
a,

mm
mm

140
100

IMMEDIATE RELEASE,
Wednesday, May 1 2 , 1954.

TREASURY DEPARTMENT
Washington
H-477

The Bureau of Customs announced today preliminary figures showing the imports for consumption of commodities on which quotas were prescribed by the
Philippine Trade Act of 1946, from January 1, 1954, to May 1, 1954, inclusive,
as follows:

Products of the
Philippines

Buttons

Unit
of
Quantity

Established Quota
Quantity

850,000

Gross

Imports as of
May 1, 1954

302,909

Cigars 200,000,000

Number

Coconut Oil 448,000,000

Pound

50,632,854

Cordage 6,000,000

Pound

733,423

Rice 1,040,000

Pound

(Refined
Sugars
(Unrefined
Tobacco 6,500,000

1,004,760

849,784
1,904,000, 000

^ound
3

ound

642,310,998
630,730

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Wednesday, May 12, 1954.

H-477

Products of the
Philippines

% Established Quota
t
Quantity

%
Unit
s
of
t Quantity

s Imports as of
s May 1, 1954

Buttons • • • • • • » • • •

850,000

Gross

302,909
1,004,760

Cigars • « . . 200,000,000

Number

Coconut Oil •..••.. • 448,000,000

Pound

50,632,854

Cordage •••••••••• 6,000,000

Pound

733,423

Rice . • . . . • ••••• 1,040,000

Pound

•»

(Refined ......
Sugars
(Unrefined 8 . . • .
TobaCCO • •••..••. 6,500,000

849,784
1,904,000,000

round
found

642,310,998
630,730

ol
IMMEDIATE RELEASE,
Wednesday, May 12, 1954.

TREASURY DEPARTMENT
Washington

H-478

The Bureau of Customs announced today preliminary figures showing the imports for
consumption of the commodities listed below within quota limitations from the beginning
of the quota periods to May 1, 1954, inclusive, as follows:

Commodity

l^hole milk, fresh or sour

Period and Quantity
Calendar Year

3,000,000

Cream Calendar Year
Butter

Fish, fresh or frozen, filleted,
etc., cod, haddock, hake, pollock, cusk, and rosefish
.•
White or Irish potatoes:
Certified seed
other

April 1, 1954July 15, 1954

12 months from
Sept. 15, 1953

Gallon

16,038

1,500,000 Gallon

308

5,000,000 Pound

50,757

33,950,386

Calendar Year

: Unit J
: of
: Imports as of
: Quantity: May 1. 1954

Pound

150,000,000
'0,000,000 Pound
0,000,000 Pound

Quota Filled (l)

80,439,787
Quota Filled

Cattle, less than 200 Lbs. each.. 12 months from
April 1, 1954

200,000 Head

536

Cattle, 700 Lbs. or more each ... April 1, 1954(other than diary cows)
June 30, 1954

120,000 Head

9,310

Walnuts ••••••••••••••••••.•••••• Calendar Year

5,000,000

Pound

2,832,999

Almonds, shelled, blanched,
roasted, or otherwise prepared
or preserved
•

12 months from
Oct. 1, 1953

7,000,000 Pound

6,951,479

Peanuts, whether shelled, not
shelled, blanched, salted, prepared, or preserved (including
roasted peanuts, but not ineluding peanut butter)

12 months from
July 1, 1953

1,709,000 Pound

6,320

Peanut Oil

12 months from
July 1, 1953

80,000,000 Pound

#0ats, hulled and unhulled and un- Dec. 23, 195>
hulled ground
Sept. 30, 1954
2,500,000
Rye, rye flour and rye meal

. 31, 1954June 30,1954

Bushel

31,000,000 Pound

1,531,090

2,463,629
Quota Filled

7l) Imports for consumption at the quota rate are limited to 16,975,194 pounds during
the first six months of the calendar year.
* Imports through May 11, 1954, from countries other than Canada.

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Wednesday, May 1 2 , 1954

H-478

The Bureau of Customs announced today preliminary figures showing the imports for
»nsumption of the commodities listed below within quota limitations from the beginning
* the quota periods to May 1, 1954, inclusive, as follows:

Commodity

Period and Quantity

lole milk, fresh or sour ••••••••

Calendar Year

s Unit s
\ of
s Imports as of
:Quantity: May l, 1954

3,000,000

Gallon

ream ••......»••«..•».»•<,<>• Calendar Year 1,500,000 Gallon
1 T>T»er «•»»©.oeee«9»

oeee.eee.eeo

sh, fresh or frozen, filleted,
.tc, cod, haddock, hake, polLock, cusk, and rosefish •••••••
lite or Irish potatoes!
Certified seed e e a e 9

April 1, 1954#uly 15, 1954

5,000,000

Pound

Calendar Year

33,950,386

Pound

12 months from 150,000,000 Pound
., Sept. 15, 1953 60,000,000 Pound

eeememmme^ee

)T/iiQlL? eeeemmmemeemmeeeeaeeeeG

16,038
308
50,757

Quota Filled ( D

80,439,787
Quota Filled

536

ittle, less than 200 Lbs. each,*

12 months from
April 1, 1954

ittle, 700 Lbs. or more each
[other than diary cows)

April l, 1954June 30, 1954

120,000 Head

9,310

limits • * . . . « . . « . . « $ . e e . a e . e . e e .

Calendar Year

5,000,000 Pound

2,832,999

.monds, shelled, blanched,
pasted, or otherwise prepared
»r preserved

12 months from
Oct. 1, 1953

7,000,000 Pound

6,951,479

sanuts, whether shelled, not
thelled, blanched, salted, pretared, or preserved (including
•oasted peanuts, but not in12 months from
iluding peanut butter).......... July 1, 1953

1,709,000 Pound

6,320

sanut Oil » . . . «

80,000,000 Pound

1,531,090

2,500,000

2,463,629

ee«.«0.e««e»

• «••«

12 months from
July 1, 1953

»ats, hulled and unhulled and un- Dec. 23, 1953ulled ground
•••••••••••••• Sept. 30, 1954

200,000 Head

Bushel

e, rye flour and rye meal Mar. 31, 1954- 31,000,000 Pound
June 30,1954

Quota Filled

'jO Imports for consumption at the quota rate are limited to 16,975,194 pounds during
the first six months of the calendar year.
*

Iraoorts through May 11, 1954, from countries other than Canada.

«£—
COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than W/^J^
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUEt Provided, however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 "<*?» °* m ° r e
in staple- length in the case of the following countries8 United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italys

Country of Origin
United Kingdom
Canada . • • .
France . . . .
British India <
Netherlands . ,
Switzerland • «
Belgium . . . <
J a p a n <> <> o « <
Ghina . « . . <
Egypt . o o o<
UuDa

o » . »

Germany * * . .
Italy • . • .

Established
TOTAL QUOTA

Imports
Total Imports
s Established s
i Sept. 20, 19 53, to s 33-1/3% of i Sept. 20, 19 53,
g May 11. 1954
s Total Quota t to May 11. 1954
1,441,152

501,310

4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21.263

501,310
239,690

6,483
23,940
7iQ6B

25,443
7,088

23,940
7»088

5,482,509

850,765

1,599,886

550,105

j / Included in total imports, column 2.
Prepared in the Bureau of Customs.

54,487
16,668
1,099

75,807
22,747
14,796
12,853

16,668
1,099

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Wednesday, May 12, 1954.

H-479

Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the President's- Proclamation of September 5, 1939, as amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/4"
Imports Sept. 20. 19 53, to May 11. 1954, inclusive
Country of Origin,
Egypt and the AngloEgyptian Sudan . . •
Peru
British India
China
Mexico
........
Brazil
Union of Soviet
Socialist Republics •
Argentina
Haiti
Ecuador . . . . . . . .

Established Quota
783,816
247,952
2,003,483
1,370,791
8,883,259
618,723
475,124
5,203
237
9,333

Country of Origin

Imports

49,274
34,455
6,082,566
618,723
425,384

Honduras ..... •
Paraguay . . . . . . .
Colombia
Iraq . .
British East Africa . .
Netherlands E. Indies.
Barbados
l/0ther British W. Indies
Nigeria . . . . . .
2/0ther British W. Africa
^/Other French Africa . .
Algeria and Tunisia •

Established Quota
752
871
124
195
2,240
71,388
21,321
5,377
16,004
689

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
2/ Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or roTagh. of less than 3/4"
Imports Sept. 20. 19 53. to May 1. 1954 . _

Cotton 1-1/8" or more, but less than l-ll/l6H
Imports Feb. l a 19 54.. to May II. 1954

Established Quota (Global) Imports

Established Quota (Global)

70,000,000 8,873,706

45,656,420

Imports
20,140,533

o
TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,

H-479
Preliminary data on imports for consuiBptdoii of.cotton and eettoawaate.chargeable to the quotas
established by:ethe Pre^iden*»-s- Proclamation of September5, 193$, as-amended

Country of Origin

Established Quota

Egypt and the Anglo©

o © ©' © e Q ©

British India
•0
© o o
aivJJtLCU eeoee-oee
o

Socialist Republics
L&1&

Ecuador

e
c

o © o

• . .c . .c

783,816
247,952
2,003,483
1,370,791
8,883,259
6l8,?2>
475^124
5,203
237

e © € © c ®

49,274
34,455
6,082,566
613,723
425,384

Colombia . o . e e . 0
©

o c e . c

c e Africa
British East
Netherlands £. Indies
e

ier
Nigeria o o e e e c
j/bther French Africa

752
871
124
. 195
2,240
71,388
21,321
5,377
16,004
689

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago,
2/ Other than Gold Coast and Nigeria.
2/ Other than Algeria, Tunisia, and Madagascar.
Cotton 1-1/8" or-aorey but less than 1-11/16"
Imports Feb. l v 19 54,. to May 11. 1954,
Imports
8,873,706

Imports
20,140,533

-£COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having * staple- of less than 1-3/16 inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE* Provided, however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more
in staple length in the-case- of the following- countriess United Kingdom, France, Netherlands-,
Switzerland, Belgium, Germany, and Italys

Country of Origin

United Kingdom
Canada
,• . .
France .
.
British India. . . . . . .
Netherlands
•.
Switzerland
Belgium . . . . . . . . .
Japan
China
Egypt
Cuba . . . .
. . . , « .
Germany .
Italy

Established
TOTAL QUOTA
4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21.263
5,482,509

1/ Included in total imports, column 2.
Prepared in the Bureau of Customs.

.i
Total Imports
s Established .
Imports
l/
t Sept. 20, 1953, to s
33-1/3% of s Sept. 20, 19 53,
i May 11, 1954
s Total Quota s to May 11, 1954
501,310
239,690
mm

54,487
16,668
1,099

1,441,152

501,310

75,807
22,747
14,796
12,853

16,668
1,099

6,403
23,940
7.088

25,443
7.088

23,940
7,088

850,765

1,599,886

550,105

-3-

but shall bo Gxor^pt from all taxation novf or hereafter imposed on the princip

or interest thereof by any State, or any of the possessions of the United State
or by any local taxing authority. For purposes of taxation the amount of dis-

count at Trhich Treasury bills are originally sold by the United States shall b
considered to be interest. Under Sections k2 and 117 (a) (1) of the Internal
Revenue Code, as amended by Section 11$ of the Revenue Act of 1941, the amount
of discount at ifihich bills issued hereunder are sold shall not be considered
accrue until such bills shall be sold, redeemed or otherwise disposed of, and
such bills are excluded from consideration as capital assets. Accordingly,

the o-.mer of Treasury bills (other than life insurance companies) issued hereunder need include in his Income tax return only the difference betsreen the

price paid for such bills, "rh other Qn original issue or on subsequent purchase
and tht; amount actually received either upon sale or redemption at maturity

during the taxable year for -which the return is made, as ordinary gain or loss
Revised
Treasury Department Circular No. Ul8,/3EStxa3KS§bsb and this notice, prescribe the terms of the Treasury bills and govern the conditions of their
issue. Copies of the circular nay be obtained from any Federal Reserve Bank
or Branch.

- 2TfftBEBT

payment of 2 percent of the face amount of Treasury >«Ti«f applied far, unless

the -tenders are accompanied hjy an express guaranty of payment by an ijieorpar
bank or trust company.
IeBaediateiy after the closing hour, tenders will be opened at "the Federal

Reserve Banks and Branches, following which public annoanceiiient will be laade
by the Treasury Department of the amount and price range of accepted bids.

Those submitting tenders mil be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the rl#t to accept or reject
any or all tenders, In idiole or In part, and his action in any such respect
.shall be final. Subject to these reservations, non-caapetitive tenders for
§200,000 or less without stated price from any one bidder will be accepted

in full at the average price (in three deciduals) of accepted competitive bids.
Settlement for accepted tenders in accordance with the bids must be made or
coupleted at the Federal Reserve 3ank on Hay 20, 19$k > i» cash or
*. mm. •

other iisoediately available funds or in a like face amount of Treasury bills
maturing May 20, 19$h ___• Cash and exchange tenders will receive equal
treatment. Cash adjustments will be made for differences between the par
value of -atari ng bills accepted in exchange and the issue price of the new
bills.
The incase derived frasi Treasury bills, whether interest or gain from
the sale or other disposition of the bills, shall not have any exemption,
as such, and loss fron the sale or other disposition of Treasury bills sh.-?ll
not have any special tr^-atesnt, 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, tdaether Federal or. State,

mmm
TRSASDRT L»3PART!iBNT
7[ashington

. ,
t—/«

<-/£/

F O R H S L E ^ S S , ycxnyy} :-37;s?A?~iES,
Thursday. May 13 f 19fli
The Treasury Departments by this public notice, invites tenders for
$1,500,OCX).000 ,

thereabouts, of 91 -day Treasury bills, for cash and

in exchange for Treasury bills maturing May 20, 19$k , i11 the amount of

Wx
$1«h99»9k$ ,000
3 to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated May 20. 195U » and Trill mature August 19. 1951t , **en the face

amount will be payable v/ithout interest. They YO.11 be Issued in bearer form on
and in denominations of §1,000, §5,000, ^10,000, $100,000, $500,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o»clock p.m., Eastem/sfeaodaaB± time, Monday, May 17, 19$k

Tenders will 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 thre
decimals, e. g., 99*92$. Fractions may not be used. It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which will b
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized
dealers in investriont securities. Tenders from others must be accompanied by

TREASURY DEPARTMENT
WASHINGTON. D.CRELEASE MORNING NEWSPAPERS,
Thursday, May 13, 1954.

H-480

The Treasury Department, by this public notice, invites tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills, for
cash and in exchange for Treasury bills maturing May 20, 1954,
in the amount of $1,499,945,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated May 20, 1954,
and will mature August 19, 1954,
when the face amount will be
payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Daylight Saving time,
Monday, May 17, 1954.
Tenders will 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
special envelopes which will be supplied by Federal Reserve Banks or
.Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price
range of accepted bids. Those submitting tenders will be advised of
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders
in whole or in part, and his action In any such respect shall be
final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted

- 2 competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on May 20, 1954,
i n cash or other immediately available funds
or in a like face amount of Treasury bills maturing May 20, 1954.
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted In exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, shall not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills shall not have any special treatment, as such,
under 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. Under Sections k2 aid 117 (a) (i) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 19^1, the
amount of discount at which bills issued hereunder are sold shall not
be considered to accrue until such bills shall be sold, redeemed or
otherwise disposed of, and such bills are excluded from consideration
as capital assets. Accordingly, the owner of Treasury bills (other
than life Insurance companies) Issued hereunder need include in his
income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase,
and the amount actually 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. 4l8, revised, and this
notice, prescribe the terms of the
Treasury bills and govern the
oOo
conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

M*y 5, 1954
MBPBiWPM.tOt MB. BARTiLTs
The following transactions were made in direct and guaranteed securities
of the Government for treasury investments and other accounts daring the
aonth of April 1954s
Sales $50,924,500
Purchases 47,987,000

pe /^Ses

*2'937'5°°
iC* £• Herman

6^6f'

Chief, Investments Branch
Division of Deposits & Investments

TREASURY DEPARTMENT
WASHINGTON, D.C

IMMEDIATE RELEASE,
Tii nun i/r-Am '- ITJ I05}\i

U^kkS

During the month of Maroh, 195^,
market transactions in direct and guaranteed
securities of the government for Treasury
investment and other accounts resulted in
net sales by the Treasury Department of

0O0

IMMEDIATE RELEASE,
Thursday, Myy 13, 1954.

K-kcl

During the month of April, 1954,
market transactions in direct and guaranteed
securities of the government for Treasury
investment ana other accounts resulted in
net sales by the Treasury Department of
$2,937,500.

0O0

TREASURY DEPARTMENT
WASHINGTON,

D.C.

IMMEDIATE RELEASE,
Wednesday, May 12, 19$k<
The Treasury Department announced today that subscriptions for the current

exchange offering amount to about $2,88° million for the new 4-year and 9-month

1-7/8 percent Treasury notes and $3,881 million for the new one-year 1-1/8 percen

certificates, both to be dated May 17, 19$k. The exchange allotment for the notes

is in addition to about $2.2 billion allotted on cash subscriptions, as announced
last Friday.
The first of the following tables shows the amounts outstanding of the four

issues, eligible for exchange and the amounts of each exchanged for the new issue

the second table shows an analysis of the exchanges by Federal Reserve Districts|
and the third table shows subscription and allotment figures by Federal Reserve
Districts for the cash portion of the new note offering.
ISSUES ELIGIBLE
FOR EXCHANGE

Amount
Outstanding

Amount Exchanged
for Notes

Amount Exchanged
for Certificates

2-5/8$ Certificates,
maturing 6/l/$k

$4,858,173,000

$2,889,328,000

$1,785,399,000

2% Bonds of 19$2-$k,
maturing 6/l$/$k

1,7^2,649,500

(not eligible)

1,501,728,000

2-1/4$ Bonds of 1952-55,
called for redemption
on 6/l$/$k

372,9314,900

(not eligible)

322,529,100

311,213,250

(not eligible)

271,640,900

$7,284,970,650

$2,889,328,000

2-1/4$ Bonds of 195U-56,
called for redemption
on 6/15/5U
TOTAL

$3,881,297,000

- 2 -

EXCHANGE SUBSCRIPTIONS ?uLCLIVED AND ALLOTTED
Federal Reserve District 1-7/6% Notes l-l/8$ Certificates
Boston $ 75,513,000 $ 33,908,000
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury

1,31*1,178,000
101,900,000
141,298,000
46,605,000
101,973,000
461,973,000
133,247,000
55,9^3,000
140,856,000
71,569,000
201,833,000
15,1^0,000

2,839,31*9,000
86,979,000
111,833,000
17,303,000
51,805,000
291,186,000
72,957,000
73,809,000
79,711,000
27,184,000
187,263,000
5,010,000

TOTAL £2,389,328,000 $3,881,297,000

CASH SUBSCRIPTIONS AND ALLOTMENTS FOR NEW NOTES
Federal Reserve
District

Total
Subs c ript io ns

Boston £ 427,521,000 $ 95,164,000
New York
4,488,250,000
Philadelphia
343,895,000
Cleveland
633,3Ul,000
Richmond
365,111,000
Atlanta
363,239,000
Chicago
1,286,665,000
St. Louis
276,823,000
Minneapolis
164,35U,000
Kansas City
270,069,000
Dallas
286,230,000
San Francisco
849,03l*,000
Treasury
220,000
TOTAL f9,751*,752,000 $2,205,132,000

Total
Allotments

1,000,133,000
76,163,000
143,533,000
83,609,000
93,944,000
289,1*65,000
65,779,000
37,603,000
62,530,000
66,527,000
190,628,000
54,000

-nThe American producer and trader has no fear of fair and free
competition la a stronger world. With our enterprise and our productivity
— helped by oar freer ecor ony here and such tilings as the tax revision
bill — and with renewed esphasis on our proven n&rfeeting ability, Americans
will win a fair share of any market which Is open in the manner which
convertibility implies.
With more convertible currencies in the free world and with further
relaxation of restrict!oris, we s&y expect that markets now closed will he
opened to American goods and the total voluu© of trade and investment will
he stimulated» With higher levels of trade and Investment based on sound
and efficient production and Increased eccnoaic freedom we shall &chi<?ve
— togethegfeiti our allies —

the freer, the more unified and sore dynaaic

world of progress which is essential to our greater and sustained polities!,
a&iiftry and economic strength az%d freedom.

• 3#-

nave ati*mgth«ed their internal financial stability, their competitive
ability9 mud their gold and dollar mmrma,,.
And Jjerfeapsk most iisfasrtsnt of a H # mm

Currencies am ee**ader#

gmmmmmt

arm abandoning economic rartxie^tanlsm md

leaders and people

santttA* mad artificial values

as Instriiwnts of potisy. Warn md acre they bam tamed to gmatmr
mmmnmda freedom and th© maJbam at stronger, imra eoapetitiv* economies.
As we mtar a period when corm*rtibility he cones closer, those of
us concerned with trade and finane® mmt re<so#il»« that the wori^^enverti*
hllity" is « % a gti»rtt»nd phrase w'lch is intended to depict a certain
kind of world. Convertibility wmm

international trade and comr^titim

at realistic exchange rates with a relatively freely functioning and
internationally ecssqpetitlv© p i c e o n a n i s m . 1m its fullest sense It
means the greatest possible absenoe of hampering restrictiors, buying
In the cheapest Wfcrtet, lewering coat* ted prices, and spreading technical
iaproveiftents and new immmfclmm to all parts of the trading world. It
^eens send and efficient production and trade at a high level and the
best allocation of ragonrees for' the benefit ©f all at us*
ConverMbility in its fullest sens® mmrn a world in which foreign
eomtrlea Imre succeeded In Glancing their International accounts, md
expect to keep them in balance# It neons a world lis which a fereigncountry*s
goods can emsgmtm warn freely with American goods In its own domestic
isarket, in the United States market, and in third markets throughout the
world. It ads® mmm

a world In whidi Amf*riean goods can compete in

markets In which they have been previously restricted or even disbarred.

-m.

-£«

It will ala© banefit those wh© bay from lis, since it will enable foreign
fmrthasera to choose the *%$>$# available at the lowest price, irrespective
of the source# fai* eamiet now be done, with Inconvertible earrenciaa,
beeans© the a*«m©ility of s»ans of payment limits the range ©f caoiees
by f©reign bikers.
in his message to the Congress on foreign economic policy, the
President said *Th© CosBnission rightly regards positive progress toward
convertibility as an indispensable condition for a freer and healthier
international trade,*' The President approved the Ccsnmission*s memiwndations for cooperation In strengthening the gold and dollar reserves
of countries which save prepared themselves for convertibility by sound
Internal and external policies and said the United States will support th©
use of the resources of the International Monetary Fund as a bulwark to
strengthen the enrrmoies ©f countries which undertake convertibility.
Th© laitlattfe and responsibility for introducing currency convertibility
must r«*t with the countries cmmmedm

Fortunately such Initiative is being

talon. The United CfoejAon and other mesfcers of the €©monw«§8lth have set
twi©© to eonsider plans for the convertibility ©f sterling and they and other
Ij^ertant nations of Europe, such as the federal Btptibllc ©f Germany, nave

fta»#i©mt the p©st-«mr years the reestablishisgnt ©f coalitions ©f
©©nvertibility and non-4l^crljaSnatory miltilateral trade has been a s*J©r
aim of the f .S#G©vern»snt# As we look abeut m

in the world today, we

find that trad© and payaents, while still net as free as we would like,
are freer than at any ties since the end ©f the war. Foreign countries

4o
The purposes of th©fcasport-IfflportBank are to aid in financing
and to facilitate the foreign trade of the United States, tfrider the law
it is to smpplesasnt and encourage and not compete with private capital
®nd its loans should generally be for specifi© purposes and offer reasonable
assurance ©f payaent. In carrying ©ut its fundamental purposes th© laperV
Import Bank is regularly ree^iviafg ©©iseidering md approving escporter
credits at the instance of Ifcited Jt&tes suppliers which are within the
terms of the >ut and which the Bank considers sound.
The future of our foreign trade will also be conditioned In an
la^ortant degree by ©ur willingness to i peat ge©4s and services and thus
®a?:e it possible for foreign countries to porchase oar products. As our
program of foreign econaaic aid is reduc#d, other countries' will have t©
rely more largely on their sales to us to earn dollars tar purchases here.
In order to facilitate a freer aoveiaent of conaerce across national boundaries
within the free world, the President has reco^B&nded renewal of the Trade
iigreemente Act, authority for selective revision ©f ©ur tariffs, the
ais^lific&tion of ©ur customs adiaifdstratlon end procedures, and the
modification of our Bay African legislation.
Finally, and most basic of the President, *s proposals, from the point
©f view ©f ©ur e aborts .and of ©ur broad objectives, av> those which relate
to the convertibility of enrrencies. (to© ©f th® aost isportsnt devices
whlcl* foreign countries us® to control their imports is t© regalat© the
expenditure ©f their foreign exchange resources. T© the degree that these
regulations are related, and each foreign currency freely exchanged for
©there, th© easier it should be for us t© s©ll our products in foreiga mrkets.

In addition, the President has suggested to the Congress the desirability
of broadening the existing authority to provide guarantees against 1©*©
on new investments abroad, where these loss** are caused by war, revolution,
©r Insurrection, At present, these guarantees may be provided enly against
the risks of expropriation and Inconvertibility of currencies.
Basically, of course, if any extensively increased volume of United
States private capital is to flow abroad, the foreign countries themselves
mist create a more receptive and favorable ©liaate. Private capital cannot
be driven to other countries, no setter hew friendly. It ssst be attracted
by the nation #eeirlng the capital. tfalted states private capital will
,y

be invested where conditions ©f political end economic stability and fair
and equitable treatment provide it an opportunity for reasonable profit
and assurance of resitting earnings.
In «©se foreign countries, the opportunities for American srliato
capital ©re limited because of the lack of basic facilities, such as roads,
port facilities, irrigation, and other fundamental services. For those
development projects which may net be suitable for or attractive to
private capital, the nternational Bank for Reconstruction and tfevelopmnt,
to which the United States has mad© important capital contributions, is
the primary liifttnswnt throusa which the fro© world ©an ©©operate in public
financing of such economic develepetent. In addition, the F:rport-Import Bank
will consider on their merits applications for financing of development
projects which are not being mad© bgr th© International Bank, and which are
in the special interest ©f the ttiited States, are economically sound, are
within the ©apueity ©f th© proapectiv© borrower t© repay and within th©
prudent loaning capacity of th© Bank.

WA.VQQ

SmUkmm®* ior example, nsis ©sen s§y£&ng s^eaoy progress

in the past year or so tesar© restoration ©r & xreerecnosy ©y removing
controls over the Internal scenes^ and oy taking step© t© increase the
freedom of ifcited Kiegdoa rssidemts t© purchase abroad. Internally^
food rationing has been steadily eased and will end ©©spletsly in July;
there are now few direct controls over raw mt©rials$ private building
has been eaooar&eed sad restrictions substantially easedt crice controls
have virtually ended. Import restrictions have been substantially relased m
oovemaent trading la raw aaterial© has alsost ended. Th© rami© of raw
loaterlals. eosmodltiee and BUMasf^etured ceoss wrich say be frbeir isberted
from the dollar area has b@en steadily broadened, la ©f AoslI 1* 1954.
the Ifci^eu Lia&dom hs.s ©©controlled imports of grains, soae oils and oilseeds, condensed and dric*ti isilk. ard dried and cth^r fruite. A futures
sssfcet in grain again be ease ©perativ©, sslnly for c o m , barley and otter
coarse graine. Tho liv^rpool Cotton Exchange is due tb"'recrflS"ih liayv
Cos&cdity tsuEssts hc^e been reopened In Britain «1»6 for rubber,, coffee.
tin* cocoaA lead^ zinc, aiunlima, cof-r^r and wool. Trailers in t!i«?se sarksts
are free to isnort these coarodltieo frca any neyt or the World.
The steps w M c h heve brer; tsJom^by'aany'l^ortant countries" in"freeing
and strengthening tfxlr ecmociep and in relaxing t^ielr tr?w!!©' ©nd exchange
restrietioryB should also ©ncourag© the H e w ©f tJhiied states private litest*
laent abroad. This is an integral part ef the' President's 'sr©>»esvv ¥© this
end th@4dWUiistrati©n tax bill already pr seed by the Ion©© ©f T^pTesent&tive
contains provisions to ©ne©nrag© private lovestasnt' abroad. Ffferts sir©
also being intensified to work out with other nation© of the free world
autu&lly acceptable rales for the rair treatment of foreign investaent.

- 5
everything but which has li$>©rta&t significance. That Is th© gel*
and dollar assets held by foreign comtrie®. As a result of iaprmed
conditions abroad and our continuing aid programs and larg© overseas
expenditures, gold and dollar assets ©f foroipi countries ha*© Increassd
in th© last fosr y»ars —
1949 —

since just ©ft©r the major devaluations of

b^ more than tB billi©n# a gain of more than 50 per cent —

and the growth seems to he continuing. It Is true that earn of these
p a n s in reserve® hav® taken place in countrlos laaint&ining th© w r y
restrictions on ia^ort® of dollar goods which w© seek to slisdoats.
And, me know hav unsound internal sametary policies can dissipate reserves.
But m are justified in being greatly encouraged bj this iaprovessnt,
a good part ©f which is flmly basad on sound monetary ^fsd fiscal practices
and improved competitive ability..
As our friends abroad, further strengthen ta©ir ecmosi©© and increase
their gold and dollar reserves, w© car* see not only th© end ©f our emergency
programs of ©conosic aid bat w© can al©o hope for soae further relaxation
or ©lisinatiQn of the artificial, and dlsttrlslnatory barriers to the sal©
of American products, abroad ®n a competitive basis. In fact, part of th©
test of the strength of our friends1 sconosies will come in th® further
removal of -fees© discriminatory restrictions and greater exposure to the
forces of competition from abroad.
Imry real progress lias &!**&# been mad© in the freeing of economies
abroad and in the relaxation or removal of trade and exchange controls which
have hampered the sal© of our products in foreign countries, sotftbl© gains
in this dlrsetioa have hma sad® in amen csestwies as th© nlted Kingdom,
the Federal B&pabHc ©f Qermny9

the Ifetherlands and Belgium.

wu'

-A -

couraging initiative and freedom ®md mintaining economic progress
and a higi level of economic activity at relr.tM)3/ stable prices,
with neither isflstiai nor deflation. Such an • ©©©noisy w© believ© leads
to high lewis of demand and' vwld

trad© on a sound and. mutually beneficial

basis and Makes perhaps air greatest confc&butlcn to cur friends abroad
as well as to ourselves. Moreover, maintaining the strength and value
of ©ur tfeiited State© dollar thorough amnd internal fInane© and increased
productivity is iiaport&nt not only to confidence and the encouragement
©f savings here at hoi®. It is al&o m vital, part of cur- ©attribution
to international mnetary stability and to the value m£ ©ur convertible
dollar as a stable point of ratmrmm

~~ tor the Halted States dollar

ha® become th© touchstone for all th© curreneiss ©f -the fre© world.
As w© look abroad today, w© find good reason for lssreassd hopefulness
for tli© freer snd healtMer and mem unified trading and financial world
w© s m t . Strang© as it ssy seem in the face of continaing political
tension© and Isrsj© defense expend iter©*, the fres world is in sueh lav
pmmd' and very good snap® In pswely econesle terra® — in levels ©f
pnotafeion, cf trade, and of real inccm.
Balance of paynent® deficits of Most foreign countries have been
eliminated or reduced. Production and trad© have been maintained at high
levels. In most ©©entries badge te have been more nearly balanced and
credit measures have been effective in keeping the growth of money Bw^Ly
ssederat®. Beiees have b©en relatively stable.
In ssasnring the ©conosie and financial progress that has been
sad© and what w® s&ght expect in th© way ©f improved ©pporttmitles f©r
Asterlcan shorts, ther© is on© statistic which does not tell us

- with our p o U M c a l ^ military and econcede strength, we in the
tftdtatV-mfttasr face *n awesome re©p©nsiblll% — not only in providing

^leadership in tl«) fia© world but In wftintalnlni? a sti^i? a ^ dy^iawAe ^ '
©©©nosy here at home, m are obliged t© have military strength©r^ad
^ sufficient power not only fcr ©or own defwise bit ale© t© h©ia jfrsaste
'pas©© in tbeSrorld. But in view of the n&tar* of the Soviet t h * * * % ^
w© fae© not a brief purled of mmdm^am

sporadic defense

aW^mmWhm

as in the pe*t, but a Ic^g period of ssistalnlnr high levsle^stf'^osaTnse •
Since our defense ©spenditurea sr© no longer a passing ©r tee^porary
pbenaB»non^it is eesertial that ©or miUtasy postot© ©vers long period
* © f tis® h© mpmrtmd

-by an ©*astaa|R?wis»©h?s*»se

financial strength, And wt sast ©ncosrage initiator,©nd- ferthtr dya*©ic
growth-at th© saae %ls»,~4*« **** ©x&gftfft tsssisf *a£ fiste-S^l ;»©*&*
^ v*:M? In our domestic ©oonosi© policy this has i»*nt t&e^ reaov&l ©f
controls and restrictions which have haasered initiative and interfered
with the freer working of U J » n^rket i»charrl8s^v,lt-.l^6 aeeat trying to
get better isooem defense tern th© ©©liars w© s p ^ d . It has meant th©
eliMnation or postpenesent of loss ©seential govsraeent expenditures
and the reduction of the governaent deficit. It has ©sent a beginning
in reducing and revising ©vsr^bejdsnso®© taxation which is?&i*« initiative.
And it has seant th© freed©© and independence of the federal reserve system
to pursue its soaetary sells!** foryth© sjnsral welfare.
Thus, our policies at hose are directed toward econowic stability
m mmd strength and growth —
and control —

toward greater freedom from gewrnsant |nterferen

greater freedom for the indiviiisal to paras© his business,

spend his own aoney, and live his own life. Our policies aim at en-

"Crest autual advantages to buyer ana mmumrg. %m producer
and consaaer, to iflfector siyx to th© eosWity"%*h©re Investsent is sacs, accrue from hi#i levels of tr^de and Investaent.
They accrue no less is trade from nation to nation than In
trad© from eoasemity to ©©slanlty within a single country.

internal strength of the Assricaa economy !Ae evolvtd fill ifiSIP*
a sjetea of ^ t u a l a d v s n ^ /

* * ^ v - ^ r «ha M i s t «****,

Oar foreign ©©cnoalc policy objectives are $h* cofcierl&Ti of eft
are closely related to our dams^ic econce&c policy objectives as IsVdf"v*
as oar nationei s-curity ftisa*. a a r ^ s i I R the fr©«\©rli

W W W

©rjgenlss and conduct ourselves \i-tt w©fc©Liev>TBTrintw political
sdlitary ana ©©©noalo strength hud c^e^aic progress under £ cosMn&tloa
of ©coneale and political freedom, him believ® ti^t V.„s,y^^ defGr^cS "•' '"
agair.st the forces of the interest! ;^al eosnsonlst conspiracy ©an be
aaintsin©d here and in th* fra# world onlyUf

s|a^s#ipti

;

sound mod coape^iti©© ©c©rcsi©s ^rked ofw$asssje' y r 5 a ^ # * 4 a r ! t i & ^
snch eccrcsdc strength ©fid growth ar© s^Se#TB©n©y, ah expanding "flow of'
aataally beneficial International tradfe, an©* Incr* s©d privst© inVestant
— in short, a world of currency e» vertlbllity "and nm^Jiicrlsinatery
aultilaierel trade. As the President said In hi© forei^'econbaic policy
wmamge to the Congress on trarch 33, ear prof*** consists if four istsrralate
aajor partes
•Aid - which *© wish to curtail)
Itevis^tsent - which w£ wisji i© «eourag©§
Ccnwrtibility - which w© wish I© ifcs&liii} ascf
trad©'- which w© wish t© expand.*

RBIiiRKS BY ASEBEW H. OVmBX, ^ S H ^
SBCSFTAHT Of THE TREASURE, Hyt*S^Sa©^
-

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IOIKAUKEF ASSOCIATI^H

<F C O K F M E AMD HltwAuldB WCBLD Tf^IE O B © ,
MHaAUKEE, WISC:MSIH, Sjl5 FJa*.- MOKBA^
MAI 17, 1$54,
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I^TEKIATIClfAL HSAKCE ABB TIE OUTLOOK FOR F0MIG1J 1»E

Tonight I should like to talk about international finane© and the
outlook for foreign trad©. Sine© even Interpretation of the present Is
sometimes uncertain, it is usually hazardous t© talk about the future
• particularly In this often snhappy world, n&rked ay continuing political
tensions, large defense expenditures and even military hostilitle©.
Despite the hazard, I should like to esasdne with yen our foreign econosie
polisy objectives and the progress we have wed© toward them. If I cannot
be too precis© about the future, perhaps X can nevertheless be cautiously
optlsdstie.
In his foreign ©concede policy message to the Congress on ssrch 50
the President saldt
*Th© national interest in the field of foreign economic policy
is clear. It is to obtain, In a imnner that is consistent with
onr national security and profitable and equitable for all # the
highest possible level of trade and the aost efficient use of
capital and resources. That this would also strengthen oar
allitary allies adds urgency. Their strength is of critical
importance to the security of our country*

<4 I y

on
TREASURY DEPARTMENT
Washington
FOR RELEASE ON DELIVERY

Remarks by Andrew N. Overby, Assistant
Secretary of the 'Treasury, before the
195^ World Trade Dinner of Milwaukee
Association of Commerce and Milwaukee
World Trade Club, Milwaukee, Wisconsin,
8:15 P.M., CST* Monday, 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 sometimes uncertain, it is usually hazardous to talk
about the future — particularly in this often unhappy world,
marked by continuing political tensions, large defense expenditures and even military hostilities. Despite the hazard, I should
like to examine with you our foreign economic policy objectives
and the progress we have made toward them. If I cannot be too
precise about the future, 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 field of foreign economic
policy is clear. It is to obtain, in a manner that is
consistent with our national security and profitable
and equitable for all, the highest possible level of
trade and the most efficient use of capital and resources.
That this would also strengthen our military allies adds
urgency, Their strength is of critical importance to the
security of our country.
"Great mutual advantages to buyer and seller, to
producer and consumer, 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 mutual
advantage."
H-483

CI
- 2 Our foreign economic policy objectives are the counterpart
of and are closely related to our domestic economic policy^
objectives as well as our national security aims. Our task in
the free world is so to organize and conduct ourselves that vie
achieve maximum political, military and economic strength and
dynamic progress under a combination of economic and political
freedom. Vie believe that adequate defenses against the forces
of the international communist conspiracy can be maintained here
and in the free world 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 mutually beneficial international trade, and increased
private investment — in short, a world of currency convertibility
and non-discriminatory multilateral trade. As the President said
in 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;
Convertibility — which we wish to facilitate; and
Trade — which we wish to expand."
With our political, military and economic strength, we in the
United States face an awesome responsibility — not only in providing leadership in the free world but in maintaining a strong
and dynamic economy here at home, We are obliged to have military
strength of sufficient power not only for our own defense but also
to help promote peace in the world. But in view of the nature
of the Soviet threat, we face not a brief period of sudden and
sporadic defense expenditure as in the past, but a long period
of maintaining high levels of defense. Since our defense expenditures are no longer a passing or temporary phenomenon, it is
essential that our military posture over a long period of time
be supported by an economy which preserves its economic and
financial strength. And we must encourage initiative and further
dynamic growth at the same time.
In our domestic economic policy this has meant the removal of
controls and restrictions which have hampered initiative and
interfered with the freer working of the market mechanism. 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 expenditures and the reduction of the government deficit. It has meant a beginning in reducing and revising
over-burdensome taxation which impairs initiative. And it has
meant the freedom and independence of the Federal Reserve System
to pursue its monetary policies for the general welfare.

- 3Thus, our policies at home are directed toward economic
stability 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 higji level of
economic activity at relatively stable prices, with neither
inflation nor deflation. Such an economy we believe leads to
high levels of demand and world trade on a sound and mutually
beneficial basis and makes perhaps our greatest contribution to
our friends abroad as well 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 all the currencies of the free world.
As we look abroad today, we find good reason for increased
hopefulness for the freer and healthier and more unified trading
and financial world we want. Strange as it may seem in the face
of continuing political tensions and large defense expenditures,
the free world is in much improved and very good shape in purely
economic terms — in levels of production, of trade, and of real
income.
Balance of payments deficits of most foreign countries have
been eliminated or reduced. Production and trade have been
maintained at high levels. In most countries budgets have been
more nearly balanced and credit measures have been effective in
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 aspect in the way of improved opportunities
for American exports, there is one statistic which does not tell us
everything but which has important significance. That Is the gold
and dollar assets held by foreign countries. As a result of
improved conditions abroad and our continuing aid Drograns and
large overseas expenditures, gold and dollar assets of foreign
countries have increased in the last four years — since just
after the major devaluations of 1949 -- by more than i3 billion,
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 saintainiiig the very restrictions on
imports of dollar goods which we seek to eliminate. And, we know
now unsound internal monetary policies can dissipate reserves. But
we are lustii^ed in being greatly encouraged by this Improvement,
practices
a good part
andoiImproved
which iscompetitive
firmly based
ability
on sound monetary and fi seal

^J l^/_

- 4As our friends abroad further strengthen their economies
and increase their gold and dollar reserves, we can see not only
the end of our emergency programs of economic aid but we can
also hope for some further relaxation or elimination of the
artificial and discriminatory barriers to the sale of American
products abroad on a competitive basis. In fact, part of the
test of the strength of our friends1 economies will come in
the further removal of these discriminatory restrictions and
greater exposure to the forces of competition from abroad.
Very real progress has already been made in the freeing of
economies abroad and in the relaxation or removal of trade and
exchange controls which have hampered the sale of our products
in foreign countries. Notable gains in this direction have been
made in such countries as the United Kingdom, the Federal
Republic of Germany, the Netherlands and Belgium.
The United Kingdom, 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. Internally, food rationing has been steadily
eased and will end completely in July; there are now few direct
controls over raw materials; private building has been encouraged
and restrictions substantially eased; price controls have
virtually ended. Import restrictions have been substantially
relaxed and Government trading in raw materials has almost ended.
The range of raw materials, commodities and manufactured goods
which may be freely imported from the dollar area has been
steadily broadened. As of April 1, 1954, the United Kingdom has
decontrolled imports of grains, some oils and oilseeds, condensed
and dried milk, and dried and other fruits. A futures market
in grain again became operative, mainly for corn, barley and other
coarse grains. The Liverpool Cotton Exchange is due to reopen
in 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 import these
commodities from any part of the world.
The steps which have been taken by many important countries
in freeing and strengthening their economies 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 bill already passed by the House of
Representatives contains provisions to encourage private investment abroad. Efforts are also being intensified to work out
with other nations of the free world mutually acceptable rules
for the fair treatment of foreign investment. In addition, the

vJ <3

- 5 President has suggested to the Congress the desirability of
broadening the existing authority to provide guarantees against
loss on new investments abroad, where these losses are caused by
war, revolution, or insurrection. At present, these guarantees
may be provided only against the risks of expropriation and
inconvertibility of currencies.
Basically, 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 must be attracted by the nation
desiring the capital. United States private capital will be
invested where conditions of political and economic stability and
fair and equitable treatment provide it an opportunity for
reasonable profit and assurance of remitting earnings.
In some foreign countries, the opportunities for American
private capital are limited because of the lack of basic facilities,
such as roads, port facilities, irrigation, and other fundamental
services. For those development projects which may not be suitable
for or attractive to private capital the International Bank for
Reconstruction and Development, to which the United States has
made important capital contributions, is the primary instrument
through which the free world can cooperate in public financing
of such economic development. In addition, the Export-Import
Bank will consider on their merits applications for financing
of development projects which are not being made by the
International Bank, and which are in the special interest of the
United States, are economically 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-Import Bank are to aid in financing
and to facilitate the foreign trade of the United States. Under
the law it is to supplement and encourage and not compete with
private capital and its loans should generally be for sjjecific
purposes and offer reasonable assurance of payment. In carrying
out its fundamental purposes the Export-Import Bank Is regularly
receiving, considering and approving exporter credits at the
instance of United States suppliers which are within the terms
of the Act and which the Bank considers sound.
The future of our foreign trade will also be conditioned in
an important degree by our willingness to import goods and
services and thus make it possible for foreign countries to
purchase our products. As our program of foreign economic aid
is reduced, other countries will have to rely more largely on
their sales to us to earn dollars ior purchases here. In order
to facilitate a freer movement of commerce across national

- 6boundaries within the free 'world, the President has recommended
renewal of the Trade Agreements Act, authority for selective
revision of our tariffs, the simplification of our customs
administration and procedures, and the modification of our Buy
American legislation.
Finally, and most basic of the President's proposals, from
the point of view of our exports and of our broad objectives,
are those which relate to the convertibility of currencies. One
of the most important devices which foreign countries use to
control their imports is to regulate the expenditure of their
foreign exchange resources. To the degree that these regulations
are relaxed, and each foreign currency freely exchanged for
others, the easier it should be for us to sell our products in
foreign markets. It will also benefit those who buy from us,
since it will enable foreign purchasers to choose the supply available at the lowest price, irrespective of the source. This cannot
now be done, with inconvertible currencies, because the availability
of means of payment limits the range of choices by foreign buyers.
In his message to the Congress on foreign economic policy,
the President said "The Commission rightly regards positive
progress toward convertibility as an indispensable condition for
a freer and healthier international trade." The President
approved the Commission's recommendations for cooperation in
strengthening the gold and dollar reserves of countries which have
prepared themselves for convertibility by sound internal and
external policies and said the United States will support the
use of the resources of the International Monetary Fund as a
bulwark to strengthen the currencies of countries which undertake
convertibility.
The initiative and responsibility for introducing currency
convertibility must rest with the countries concerned. Fortunately
such initiative is being taken. The United Kingdom and other
members of the Commonwealth have met twice to consider plans
for the convertibility of sterling and they and other Important
nations of Europe, such as the Federal Republic of Germany, have
discussed their aims with us.
Throughout the post-war years the reestablishment of conditions
of convertibility and non-discriminatory multilateral trade has
been a major aim of the U.S. Government. As we look about us in
the world today, we find that trade and payments, while still 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 stability, their competitive ability, and their
gold and dollar reserves. Currencies are sounder. And perhaps

+.J

- 7most important of all, more government leaders and people are
abandoning economic restrictionism and controls and artificial
values as instruments of policy. More and more they have turned
to greater economic freedom and the value of stronger, more
competitive economies.
As we enter a period when convertibility becomes closer,
those of us concerned with tra.de and finance must recognize that
the word "convertibility" is only a shorthand phrase which is
intended to depict a certain kind of world. Convertibility means
international trade and competition at realistic exchange rates
with a relatively freely functioning and internationally
competitive price mechanism. In its fullest sense it means the
greatest possible absence of hampering restrictions, buying in
the cheapest market, lowering costs and prices, and spreading
technical improvements and new inventions to all parts of the
trading world. It means sound and efficient production and trade
at a high level and the best allocation of resources for the
benefit of all of us.
Convertibility in its fullest sense means a world in which
foreign countries have succeeded in balancing their international
accounts, and expect to keep them in balance. It means a world
in which a foreign country's goods can compete more freely with
American 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 compete in markets
in which they have been previously restricted or even disbarred.
The American 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 bill — and with renewed emphasis on our
proven marketing ability, Americans will win a fair share of any
market which Is open In the manner which convertibility implies.
With more convertible currencies in the free world and with
further relaxation of restrictions, we may expect that markets
now closed will be opened to American goods and the total volume
of trade and investment will be stimulated. With higher levels
of trade and investment based on sound and efficient production
and increased economic freedom we shall achieve — together with
our allies -- the freer, the more unified and moi"e dynamic world
of progress which is essential 0O0
to our greater and sustained
political, military and economic strength and freedom.

f
W
H

sTJRKPJ-3 myiS?kmL$,
Taasday, lay IS, lSSk*

for |1,$00,300,OOP

the Treasury B©partaaat aiwioejieed. last evening that th©
or th©xeabouts, of 91-day Treasury bills to b© dated Say 20 and to
19A9 which sere ©£f©red on amy 13, sera ©pessd at the

ay 17.

The details of this issss are as follows;
total ©failed for - $2,2t?,©3§*000
Total accepted
- 1,501,255,^30

,i*55»3JO entered on a

{

f a n at th*
* 99.19$ SqaiTslent rat© of discount approx. 0*8*3% pa*
Bangs of

coifipetitiT© oids; (Haa^tiag ana tender of $IX, 030)

High
low

- ^.§00 Univalent rat© of discount apprca;. 0*791$ par
mm n.7^3
•
•
«
*
o.ai9# «
bid ~or at tea low ;.-rice

(^3 percent of th©
federal B©s©rv©
Bistliot

total

*P^
t

fork
Philadelphia
Cleveland
Atlanta
Chicago
St. I^Kds
Minneapolis
City

21,31*2,000
1,620,151,000
©3,122,30®
61,217,000
16,16%, O^O

JhSOfcooo

211,269,000

&&s
*ifcj©9,000

k3,m9om

*•*•?©*»
fOTAL

•2,ffc7»835,MO

Aeeeoted

8b,5lt»000
974,331,000
28,122,000

$$,m9®&
u.m^&oo
23,31^000
1*1,05?, GOO
28,985,000
21,333, COO
t%Q>$3t99OOQ
3s,XS5s03O
62,225,000
fi,$GM5S,ooo

TREASURY DEPARTMENT

WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, May 18, 1954.

H-484

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated May 20 and to mature August 19, 1954, which were offered on
May 13, were opened at the Federal Reserve Banks on May 17.
The details of this issue are as follows:
Total applied for - $2,227,835,000
Total accepted
- 1,501,255,000 (includes $207,455,000
entered on a noncompetitive
basis and accepted in full
at the average price shov/n
below)
Average price
- 99.795 Equivalent rate of discount approx.
0.813^ per annum
Range of accepted competitive bids: (Excepting one tender of
$100,000)
High
- 99.800 Equivalent rate of discount approx.
0.791$ per annum
Low
- 99.793 Equivalent rate of discount approx.
0.819^ per annum
(93 percent of the amount bid for at the low price was accepted)
Federal Reserve
Total
Total
District
Applied for
Accepted
Boston
$
27,342,000
$
24,592,000
New York
1,620,151,000
974,831,000
Philadelphia
43,122,000
28,122,000
Cleveland
61,217,000
55,917,000
Richmond
16,184,000
15,658,000
Atlanta
35,505,000
23,314,000
Chicago
211,269,000
191,059,000
St. Louis
30,499,000
28,935,000
Minneapolis
22,645,000
21,338,000
K-ynoas City
44,529,000
40,529,000
Dallas
43,085,000
34,185,000
TOTAL
San Francisco
72,287,000
62,225,000
$2,227,835,000
$1,501,255,000
0O0

4
DO
75 percent of its output would be marketed as cold rolled products
and about 25 percent as hot rolled products. The production
originally planned for the mill amounted to 400,000 metric tons
annually of steel strip, with the hot mill operating at a capacity
of approximately 100 tons per hour.

DO
3

decided to sell the mill in order to realize the highest possible
value and to prevent deterioration from further storage.
Funds realized from the sale will be deposited in banks in
the United States for the account of the Czechoslovak owners of
the property, but these amounts will remain blocked pending consideration of American claims against Czechoslovakia.
The sale will also bring relief to several American firms
now storing the equipment, which weighs almost 29 million pounds.
The Czechoslovak owners have for several years been in default
in the payment of storage charges, presently totalling nearly a
half-million dollars. The Argentine purchasers of the equipment
will satisfy these storage charges before removing the property.
The property sold today consists of equipment which was
designed for use in rolling and processing steel. It can produce
materials which find their end uses in the manufacture of auto
bodies, steel furniture, barrels, pipes and tin plate. The equipment does not produce raw steel but processes steel which has
already been put through a blooming or slabbing mill after having
come from an open hearth or other steel producing furnace. The
equipment includes a hot mill which does initial rolling to reduce
the guage of the metal and a cold mill which further rolls and
thins out the material.
The equipment was designed with the expectation that about

bid was received.

The Argentine bid was accepted as the only one

representing s. feir price for the entire ziill under the circunstances.
^The steel nill equipssent, for which the Czechoslovaks
originally paid approximately #16,000,000, was ordered fron the
United Engineering and Foundry Company zt Pittsburgh before the
communist coup in Czechoslovakia but was not completed until
after the coup. Ihe sending of the equipment to Czechoslovakia
was prevented -under the Ixport Control Law and the Treasury Department
blocked the property early in 1952 under the Trading with the Enemy
Act to insure that its disposition would be in accordance with the
interests of the United States.
Today's sale of the steel mill equipment parallels similar
action taken with regard to various foreign-owned property in the
United States during Iforld »>ar II where the owners, whether enemies
or not, would not or could not effectively use or dispose of
property in the United States. The 3-overnrvent has always been
willing to allow the Czechoslovak owners tc sell the equipment
to aa acceptable domestic or foreign buyer provided -that the proceeds
of sale would renain available in connection irith the settlement of
American clains against Czechoslovakia. In view of the Czechoslovak refusal to dispose of the property on this basis, it was

CO
DRAFT BAKagan:EAmold:mab 5-13-54

-* y# ± ^>oo P?r>£DT //>*-70S
The Treasury Department announced today the acceptance of a
#9,000,000 bid submitted by Argentine interests for the
Czechoslovak-owned steel mill equipment being sold by the
Department. The mill was ordered sold on March 25, 1954 under
the Trading with the Enemy Act. Laurence B. Robbins, Special
Assistant to the Secretary and MH^ Administrator of the
Reconstruction Finance Corporation, was appointed Receiver to
conduct the sale.
Sealed bids for the property were opened on April 28. The
bid of 19,000,000^ submitted by the Sociedad Mixta Siderurgia
Argentina of Buenos Aires, was the highest received. Tae next
highest bid, of approximately 31,500,000, was made by the Harvey
Machine Company, Inc. of Torrance, California.
The Sociedad Mixta Siderurgia Argentina has advised the
Treasury that it is a joint enterprise of the Argentine Government and practically all the private steel companies in Argentina.
The company has confirmed that it will use the equipment in a
new plant being built near Buenos Aires as part of a general
expansion of the Argentine steel industry.
In its order for the sale of the property the Treasury
Department reserved the right to reject all bids if no reasonable

TREASURY DEPARTMENT
WASHINGTON, D.C.

FOR RELEASE AT 5:00 P.M. EDT.,
Monday, May 17, 1954.

H-485

The Treasury Department announced today the acceptance of a
$9,000,000 bid submitted by Argentine interests for the
Czechoslovak-owned steel mill equipment being sold by the Department.
The mill was ordered sold on March 25, 1954 under the Trading with
the Enemy Act. Laurence B. Robbins, Special Assistant to the
Secretary and Administrator of the Reconstruction Finance
Corporation, was appointed Receiver to conduct the sale.
Sealed bids for the property were opened on April 28. The
bid of $9,000,000, submitted by the Sociedad Mixta Siderurgia
Argentina of Buenos Aires, was the highest received. The next
highest bid, of approximately $1,500,000, was made by the Harvey
Machine Company, Inc. of Torrance, California.
The Sociedad Mixta Siderurgia Argentina has advised the
Treasury that it is a joint enterprise of the Argentine Government
and practically all the private steel companies in Argentina.
The company has confirmed that it will use the equipment in a
new plant being built near Buenos Aires as part of a general
expansion of the Argentine steel industry.
In its order for the sale of the property the Treasury
Department reserved the right to reject all bids if no reasonable
bid was received. The Argentine bid was accepted as the only one
representing a fair price for the entire mill under the
circumstances.
The steel mill equipment, for which the Czechoslovaks
originally paid approximately $16,000,000, was ordered from the
United Engineering and Foundry Company of Pittsburgh before the
communist coup in Czechoslovakia but was not completed until
after the coup. The sending of the equipment to Czechoslovakia
was prevented under the Export Control Law and the Treasury
Department blocked the property early in 1952 under the Trading
with the Enemy Act to insure that its disposition would be in
accordance with the interests of the United States.
Today's sale of the steel mill equipment parallels similar
action taken with regard to various foreign-owned property in the
United States during World War II where the owners, whether enemies
or not, would not or could not effectively use or dispose of
property in the United States. The Government has always been

- 2 willing to allow the Czechoslovak owners to sell the equipment
to an acceptable domestic or foreign buyer provided that the
proceeds of sale would remain available In connection with the
settlement of American claims against Czechoslovakia. In view
of the Czechoslovak refusal to dispose of the property on this
basis, it was decided to sell the mill in order to realize the
highest possible value and to prevent deterioration from further
storage.
Funds realized from the sale will be deposited in banks in
the United States for the account of the Czechoslovak ov/ners of
the property, but these amounts will remain blocked pending
consideration of American claims against Czechoslovakia.
The sale will also bring relief to several American firms
now storing the equipment, which weighs almost 29 million pounds.
The Czechoslovak owners have for several years been In default
in the payment of storage charges, presently totalling nearly
a half-millIon dollars. The Argentine purchasers of the equipment
will satisfy these storage charges before removing the property.
The property sold today consists of equipment which was
designs! for use in rolling and processing steel. It can produce
materials which find their end uses in the manufacture of auto
bodie?. steel furniture^ barrels, pipes and tin plate. The
equipr.^nt does not produce raw steel but processes steel which has
already been put tarcuyn a blooming or slabbing mill after having
come from an open hearth or other steel producing furnace. The
equipment Includs-s a hot mill which does initial rolling to reduce
the guage of the metal and a cold mill which further rolls and
thins out the material.
The equipment was designed with the expectation that about
75 percent of its output would be marketed as cold rolled products
and about 25 percent as hot roller! products. The production
originally planned for, the mill amounted to 400,000 metric tons
annually of steel strip, with the hot mill operating at a capacity
of approximately 100 tons per hour.
oOo

^d^ruL^j A — ~ ~ , *~-* 't—y~-

/
lawyer and as a corporate director, I Imow h-\- important details cf this

kind can ":e to/the level of Ur-ited States foreign trade. In the long run

the level of our esports depends upon the level of our imports; and our
iiiports, in turn, depend on a host of individual decisions "by foreign

'y
"business men that is worth a considerable expenditure of their tine
A

and aoney to enter the American ~*rket jghe simplicity and reliability,
of eui Quuftms procedures is therefore a v/tal foundation for the level
A
of imports on which depends the Frpgldeiit's objective of a high level

of foreign trade for the United States.

fmt

Another large area of uncertainty and delay in which pending

legislation would give us substantial help is the field of valuation

of imports. The present provisions, with the judicial interpretations

that have grown up around them reach results which are in many cases
,ci^Xu^Zxif^fyf
commercially unrealistic, and for that reason produce ro raits which

are unpredictable "by any but the most experienced importers.
Furthermore, by requiring in many cases iMii ditdiuliicilloa. of an
investigation of the value of merchandise in the home market' ofr the
esporting country , they require-u. fciggLi of foreign inquiry which substantially delays the appraising of merchandise in many cases. These
defects in present procedures itrould be largely cured by the Jenkins Bill,
which passed the House at the last session and is now pending before the
Senate Finance Committee; and the President, in his foreign trade message
on March 30, recommended its-ew^y enactmentLror comjiderabluii.
The matters which I have discussedAn one sensejM*e matters of detail.

But from «p> considerable experience with American husinesw, both as a

.14a pattern of finding one device or mother to discourage iapart* as they
heoom© important. Shis state of mini, whether j&sfcif ied or act»A can hw»
•lX4^ ,,4 .. 'V-.tii*.
a T6fj (> dMHifl^g effect hy deterring ethers from making
«•

*!:-.

;

.••,e.

the
.vions

expenditures of time and soney rasf&ired to enter th©
^^¥« ( grown
•..
• . ar®
fhere are several things £h&t we can da about this. The first is to
y t p a i M f i f ^ t l M ^ f i e t that o w r the same 'pertad there hair® b#*m a t learnt as
reclassifications of ceaiaediti©® that have reMeed the duties en
them. Thus we can to some extent rebut the mistaken action that
i«yes.". ,*§& jt
. is> ^ hQ|a#
-w ,^
rem%MmMia&tm\iem is used as a t@®l to discourage imports.
a*port,».ns counti , th*, -*$ .re-^e*£»ee of f ©re:y^/> .hem.<<4&< tha-pa^v^Eat in view of th® fast
* iaay
that foreign and domestic businesses come to depend on a classification

**.. £<: ^y^^f^i^yyij^^ y-y- * <,
once decided,, ciianges^SSB he made, either up/&r<dcW, #aly whea the
established classification is showa to he clearly wron^. And finally, the
s
y
•' «•
ait
...*& ,.-- .- m® • • .*t. . /tu.
recommendation* of the Handall report and of the president's message far
simplifying commodity definition* a M j ^ t e s t m e t u W N t will h e of substantial
* ..j?TO ,..'£Cu.-4se&/ in one
iA^^
® m *$$& considerable experience vith. America

- 13 (<r

procedure thas has greatly speeded mp the process, and we are convinced

that it has>iA imwwte>±luUlw:MlWm&zin mmmm^amm^-^m^liM,

it we have been doing

T h U , the®.is

to reiace the interlocking problem of complexity and delay In Customs JX* JL~

procedures. We are squally^wlth the prelslpa of nrli<iw1iiii tfw»tw> B^fteiMly

in various phases of Gastoas work, and, a better understanding at hose and

A
abroad of the principles that will be applied in a given situation. I
Illustrate* the iiipertame© of this objective by a single esas^lei
First, tmha^mMa^aaamm properly provide that an American manufacturer
can challenge the classification of an import, and that if, after proper

notice and consideration. Customs decides it Bias rnifiiVg i J lusstiin.^ it c
VkUtc ±JLy
otrfluor that classification,

.
fliere have been fifty or so;instances of this

in the last half-desem years which have resulted in an increase of daty.
Most of these changes did not involve Important volumes of imports; bat
they had a psychological effect beyond their economic tijpslflea&eejf £*jfr*

Jin some cases foreign exporters have interpreted these actions as part of

-12-

/D
money, but also to expedite.

Care had to be taken, of course, not to do

anything that, would let dam. the bars to smuggling*

A statistical and trial survey showed that satisfactory and effective

results could be obtained by examining at least on® arbitrarily selected
piece, of the baggage of &f®ry passenger^; examining all the baggage of /^HTl
y:y
I and of course,
more intensive e

of all of a passengerAs luggage and, if necessary

his person, whenever/circumstances
* *%ingl«

cfiS^MftJ-**- °^j

passenger liners
cannot afford to maintain a

at lew York, Customs

staff of employees for baggage

examinations only, the men normally are on duty at the freigh; piers
• ~*t .>•-

* ^

processing coasacrcial shipments, and are teapoesrily assigned to passenger
piers whenever required. Thus, it is as important to commercial importers
as It is to the travelers to shorten the tipe it takes to process passengers,
and this new procedure has accomplished it. Itiused to recuire 4 to .if hours

to clear the pier after the qpEP m»I2^BlfH had landed, low the last -passenger

*iMT*
is through with his customs examination within

-hours* fhe new

- 11 -

load* m mmr%9 ®mtmm

is
-Tno-i&ty,

fl^alhl©, Informal

mlmT^m^

<r~> f'm.

w@§r in ^ieh

m& I ®hfSi&a lite to

Just oi». SUtotefttlo*

if •wj^sr-jjr.
to th® tra^llt^y andfcqprtiagpifttta*

of %?hat that has

Z M * ytssf vsj mad© m
mmimm%^'mw

In m

mt^ed et
mmemmmmm
***

aallad tar
at thin m%m$mUmAma
total

wmatmM?

ia aftaat

••--•- m*

mam±%m ahmt m million dolors &
in Warn fork

million dollars a y«ar. Moist of this, of count®.

#ei

^*'*a*]M& liioii am ctadaaa plM* "net only to'

-10 -

we are therefore exercising «is^|adainistmtiv# ^Bsjtf|pMl|Sjy^|di«oretion W^e
we had before the Customs Simplification Act was passed, and also the

additional i&fte&an which that Act gave to usi; and i^* we are doing ***ir-

$S& is simply to apply modern jaan&ge&eat techniqueg and methods which are

common to most progressive business concerns* Means of measuring workload
and manpower requirements have bean developed and instituted; *sj&~certain
operating practices have bean modernized, streamlined and sij^lif ied/ ^n
some instances, the basic organisational structure in the field off ices hag
been reget^ts ganrara that- ^:i ^ffiiti|Hir^#'»<s<i^^

.•ft— ty^-^y^'^^^^%^Awm^re^^^ttWsaW^^

,. (fostojas has 44 ports of entry

1* this country; now for the first tbeo we are in a position to knm

with

some precision the rates of production of each* %n e&eh department at y^XZ^J

activity. ^2k®_

Lie** * J***.

* mftoia*.

|L^ As a result, we find that some offices hav# almost ©oa$iet#lr worked
1

off their local be4$&e|5*| Others, while they now eeem to be staffed

-—r

appropriately for normal current workload velum* still have a substantial
backlog* In such cases the backlog® are being moved to the offices with
little or no backlogs of their own but with some indicated capacity

> W

-9-

The effect of this one change has bean to expedite the final
determination of duties payable en individual importation* sad to
free a substantial mmber of experienced eifj&oyeea fear sore productive
work. These people thus released hove contributed &reatiy to the
reduction of backlog i*ftich I have described*

•a~
The solution isae found in tiro appraeehes 5 first, in the

areas mewm the statutes let us do se> to revise procedures and

improve iaanage:,ent in search of more efficiency; and, second, to
ask for legislative changes where the statutes ©l^^cM inefficient

or *mst®ful procedures* A lai*ge part of the legislative changes
ne ^SSSTtsag enacted in the uustoms Simplification Act of 1953*
This Act, ishieh was the culmination of several years* study, cut
dotsn materially on the amount of unproductive isork that Customs
nas required to do by statute, and eliminated isany of the cumbersome
and outmoded procedures that had accumulated in the enactments of
more than a hundred years,.
One of the most helpful steps was the repeal of obsolete
accounting procedures. Previously, the Gastcsas had been required

dutiable or free. The repeal of this provision
^ e installation of a modern accounting and internal audit system*

- f -

nhich had increased almost 3 times end represented the equivalent

of a whole year*a t?ork at the prevailing rate of production*
The backlog of unliquidated entries continued to rise to

J
si&m*-~**"

its all-tine peak of 336,000 on September 30 of last year. But
then *e turned the corner. The measures that bad been taken began
to make themselves felt. In six months *j» have reduced this backlog
by more than one-fifth. This reduction is aeceleratingj snti by the
end of 1954 "«ie expect th© baddeg to be down to a 60-tc—90-day basis,
So while the intermingled problem^of complex! 1gr and" delay in •~*~->**
cue teas procedure has been by no means fa!3y solved as yet, great
strides"have been taken in that direction*
go*, how hair this* been done? Not by adding more* people
or spending sore money. Customs T&H spend a little lees money,
and employ soaewhat fewer people, this year than last year, and
iUt..yyt**>*M~*m>-m&m*-*. sjp«- .«*•*--&

" next year than'this^aarT^ ** ***** pwi^i^i

mm*a**iev*mxr^

4&e y^tallatioa of a &@0&m accoufitiqg nag lateraal avadtt ayatera*

-*-

customs procedui*©s had alee succeeded, by and large, in^pn-ently

processing the freight shipaasnts-jtbat .had c(S8i%.m^.that tbs

plgraieal fwrehaaiis*/ &tapJM£:*t*?A entered the country with*»i% *W ^
substantial delay*

However, (fratcyJbad-iMatolialfly falleja^beMlKi

im the work of finally 4fejeee£ia£i*g, horn much du% •«•» owing*

Ihe

backlog of gwpyyptrtiympart ©ntriee had. groan jfram 2329!3Hy or , ^
the eguivalent of about one-half a year*s work-in Wff Jfe J^U#Q11JQ

And*,as I pointed out, although the iiaportar. saay have p%sical3y
received his merchandise, an. unliquidated-entry is still an iapajftant

sjatter to hZm because,^antll. final liquidation, he does not know
it
the exact ammxxt at dmtp, and this . ssy.jiiake/diffloult for him to

(jhM/ AM &
determine Ms-^selling pvlmd^yh^^^Jt. &£r1KfCL' %m%

Wmmi

ehsS em ^Q sum,up the preblea, jm found a current workload that had
gone up SO^to 1C0 per cent, and a backlog of unliquidated entries

-6-

•*» % *h

full postwar fiscal year, «Juae 30,^1946 - 1947 coispare as foil
mtth those of fiseal 1953t ** **~ *«* in* -.*\ *&**• *N
the number of shipments that entered this country rose from
541,000 to 9Sl,OX»3 or 81 par. cent; the number of cairiera^lBcluding
ships, automobiles, trains and tke-Mic%> rose froa lb.l million to
30*9 stillion, or 7© per eeatj and the nuaher of people crossing the
borders increased from 78*9 WmWUbm to H7*9, or 49 per\cent* im^
0

»*» fi^e. caaaot * . „ « * . oat * «*.„*r* .

—

„

Jg?

sent of workload; but in the various categories the
m to 10© per cent. - ^.^d&fce* •Qta$r & mttn *n is^artaisi
„»tv^

la spite-of various lapcrtaat,steps that nere taken to writ
productivity, the Customs Service had not been able to

up sith :^lU&xm*ed

«s*load 4artJ«r> this "period, it had*

of course, to process currently all of the people and the baggage
they bring isith thea, because you cannot let people stack up on the
docks and piers, or in automobiles or trains at the borders* The

> a*

- 4 -

I have been told that thisAms sufficient to

in the legislature of th® «s^LgtN»tl**g country. Mhough the amount ~*

{*&**

involved ma trivial, the ineMemt was thought to have- symbolic: » "^*^*

Xe^kMAJ j^^vW * -jr. ^ ^^
ilm^n^^^^jiii

importance* as perhaps indicating that a -mm

y^yLt^^J^-

*" 's^

^»****

^"^Sj«*iBS^r

^timWa^Am:9^^^^^

importer complain to me that while his goods were ptf^sically
processed through Custom® idth sufficient speed, the delay in
figuring his final bill for duties eas a real handicap to selling
thea* .,«tt. %bm ijw^sa- *

fe indicate the sise of this problem of delay which we
faced a year ago and liiat has been dam about it slues then, let

m. give you a few fact® about the Gustotss workload and backlog;
the best measure of the Customs workload is the mmfcer oi
shipments of goods entering the country 1smdT"'tlks laab«r of people
and vehicles that eoste in each yes#*» The- figures for the first
'ji*m* at ~-. -^utraobilae- oar %t:i>&m at 'the hrcrtfmu. ««*

H<*

-S~

significant deterrent to imports; sore importantly, they
v*» y&r*

create irritations which are eetriaental to our total fareigm
**»# ^ftaigfe* tlM «est
****myO *
of tiiaog by- coi

**«*.& '$6$ ^esteass wm&ym&

sift M i

Ls t » a
- j^a«»At6 of f«M8£!& *? ^arlag a-*s etrentry m&
S B * vtmelss teat --soae itr eess ;f ®ar* ' i

the KvajUei* of pse^l«'

>.j*«

*,$•», 04

-2-

JU^^J*^

been dealing with the problem* I have become convinced thatAcustonai
mmemmwm iisportan^to our world trade*;
t* I know that B K n p waxiy of you are among those who do
realise it; the Randall report has emphasised it; but nevertheless I
would HJke to describe w awn reasons f» fascist this way and tissa
go on to indicate what we have done so far about the problem as we
seen Its what mod we think this has accomolisheds and what
we mm m and should do Mm 1&is direetieii*

^y~-j^

The three sjain criticisias that have come to m© regarding customs
procedures have been uncertainty, undue complexity, and delay* Before
I evaluate these three* I should like to amy that in the fifteen months
of ^.association with it, I hare cose to have a high regard for the
efficiency, integrity and qualify of th© Customs Service and its
personnel* IsrirtlMla*** partly because of th®ytatutes under which it
operated, and partly because of t£* procedures
which have been inherited fro® an earlier day, there la eosto validity to
one of the three criticise that I
The Randall report described their effect In these
*?h@ present complexities of customs administration are a

- lm

^t^mmm^im4iM^t^^

I want to talk to you today about the significance of

customs procedures to United States world trails*
On March 30, the President,in the light of the Randall report,

defined the broad objective of our foreign trade policy in the
ioiiowing wsa-ast

"The national interest in the field of eeonoadc policy
is clear* It is to obtain in a Banner that is consistent
with our national security and profitable and equitable for
all the highest possible level of trade and the most efficient
use of capital and resources. . • • •*
sills have already been introduced in Congress, and others will
follow, covering the various elements of •that, march 30 aessage on
foreign economic policy*
there are wany igiportant^Lngrfaio^a fc*itf but I want to
- :~-'-w. ***-••-^

•-- &t'zmtt : \ .-••.:••' .-T^-. ,.,>*..-•• >mamm§^.

concentrate on the one that is closest to the field of ay own peoartsental
rasponsibility. That is the relationship of customs procedures to the
objectives' which the President has stated*

My reason for this is that, in the year or so In which 1 have

^ '

TREASURY DEPARTMENT
Washington

CORRECTION

In Treasury release H-486, text of address by
H. Chapman Rose, Assistant Secretary of the
Treasury, May if before the World Trade Conference
at the Shoreham Hotel, Washington, the last
sentence in the third paragraph on page 5 should
read:
"The new procedure thus has greatly
speeded up the process, and we are
convinced that it has not decreased the
practical protection against smuggling."
The first sentence of the fifth paragraph on
the same page should read:
"We are equally 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 will be
applied in a given situation."

TREASURY DEPARTMENT
Washington
FPU RELEASE ON DELIVERY
Remarks by H* Chapman Rose, Assistant Secretary
of the Treasury, before the World Trade Conference
at the Shoreham Hotel, Washington, D. C , 4:00 RI,
EDT, Monday, May 17, 1954.

TREASURY DEPARTMENT
Washington
FOR RELEASE ON DELIVERY

Remarks by H. Chapman Rose, Assistant
Secretary of the Treasury, before the
World Trade Conference at the Shoreham
Hotel, Washington, D. C , 4:00 PM, EDT,
Monday, May 17, 195^.
I want to 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 Randall report,
defined the broad objective of our foreign trade policy in the
following 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 all the highest possible level of
trade and the most efficient use of capital and
resources. . . . ."
Bills have already been introduced in Congress, and others will
follow, 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 substantial importance to
our world trade. I know that many of you are among those who do
realise it; the Randall report has 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 accomplished; and
what more we can do and should do in this direction.

H-486

- 2The 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 statutes under which it operated, and partly
because of procedures which have been inherited from an earlier
day, there has been some validity to each one of the three
criticisms that I named.
The Randall 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 are 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 legislature of the originating country, even though it
exported to us only $36,000 worth of 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 policy existed in this country to restrict
imports by reclassification of commodities,
I have had many an importer complain to me that while his
goods were physically 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
full postwar fiscal year, June 30, 1946 - 1947 compare as follows
with those of fiscal 1953:
The number of shipments that entered this country rose from
541,000 to 981,000, or 8l percent; the number of carriers,
including ships, automobiles, trains and airplanes, rose from
18.1 million to 30,9 million, or 70 percent; and the number of
people crossing the borders increased from 78.9 million to 117.9,
or 49 percent. These figures cannot be averaged out in terms of
a single measurement of workload; but in the various categories the
increase ranged from 50 to 100 percent.

- 3 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,
of course, to process currently all of the people and the baggage
they bring with them, because you cannot let people stack up on
the docks and piers, or In automobiles or trains at the borders.
The customs procedures had also succeeded, by and large, in
currently 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 fallen
substantially behind in the work of finally determining how much
duty was owing. The backlog of unliquidated or unsettled 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 d whole
year's work at the increased rate of liquidation which had then
been attained. And, as I pointed out, although the importer may
have physically received his merchandise, an unliquidated entry
is still an important matter to him because, until final
liquidation, he does not know the exact amount of duty, and this
may make it difficult for him to determine the right selling 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 of unliquidated 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 all-time peak of 886,000 on September 30 of last year. But
then we turned 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-fifth. This reduction is
accelerating; and by the end of 1954 we expect the backlog to
be down to a 60~to~90-day basis. So while the Intermingled
problems of complexity and delay in customs procedure has been
by no means fully 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 will spend a little less money,
and empjoy 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 statutes let us do so, to revise procedures and
improve management in search of more efficiency; and, second, to
ask for legislative changes where the statutes required inefficient or wasteful procedures. A large part of the legislative changes we recommended was enacted in the Customs

- 4Simplification Act of 1953. This Act, which was the culmination
of several years' study, cut down materially on the amount of
unproductive work that Customs was required to do by statute,
and eliminated many of the cumbersome and outmoded procedures
that had accumulated in the enactments of more than a hundred
years.
One of the most helpful steps was the repeal of obsolete
accounting procedures. Previously, the Customs had been required
to conduct a 100$ audit of every entry, whether the goods were
dutiable or free. The repeal of this provision allowed us
to begin the installation of a modern accounting and internal
audit system. The effect of this one change has been to expedite
the final determination of duties payable on individual
importations and to free a substantial number of experienced
employees for more productive work. These people thus released
have contributed greatly to the reduction of backlog which I have
described.
We are therefore exercising such limited administrative
discretion as we had before the.Customs Simplification Act was
passed, and also the additional discretion which that Act gave
to us. What we are doing is simply to apply modern management
techniques and methods which are common to most progressive
business concernsr Means of measuring workload and manpower
requirements have been developed and Instituted; certain
operating practices have been modernized, streamlined and
simplified; and in some instances, the basic organizational
structure in the field offices has been reset.
Customs has 44 ports of entry in this country; now for the
first time we are in a position to know with some precision
the rates of production of each, in each department of its
activity.
As a result, we find that some offices have
almost completely worked off their local backlogs. Others, while
they now seem to be staffed appropriately for normal current
workload volume, still have a substantial backlog. In such
cases the backlogs are being moved to the offices with little
or no backlogs of their own but with some indicated capacity
beyond their current load. In short, Customs is increasingly
adopting the flexible, informed management techniques that one
expects of a modern well-managed American business.
I have given you a very general statement of the way in which
procedures have been improved; and I should like to add just
one concrete illustration of what that has meant to the travelling
and importing public.

*"« »

- 5Last 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 examination at
that port was. running about $1 million a year. The total amount
of import duty collected on passengers' baggage in New York was
also about $1 million a year. Most of this, of course, was
on articles voluntarily declared and only a small fraction came
from undeclared articles 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 arbitrarily selected piece of the baggage of every passenger;
examining all the baggage of some passengers; and of course, more
intensive examination of all of a passenger's luggage and, if
necessary, of his person, whenever suspicious circumstances
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 normally
are on duty at the freight piers processing commercial shipments,
and are temporarily assigned to passenger piers 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, Nov/ the last passenger is through "with
his customs examination within 2-1/2 to 3 hours. The new
procedure thus has greatly 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 equally concerned with the problem of reducing an
uncertainty in various phases of Custor.s work, and achieving a
better understanding at home and abroad of the principles that will
be applied in a given situation. I may illustrate the importance
of this objective by a single example:
First, as I indicated above, Customs procedures properly
provide that an American manufacturer can challenge the
classification of an 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

- 6 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 some 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 expenditures 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 future
more rigidly apply the principle changes which will be made,
either up or down, only when the established classification is
shown to be clearly wrong. And finally, the recommendations of
the Randall report and of the President's message for simplifying
commodity definitions and rate structures will 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 imports. The present provisions, with the judicial
interpretations that have grown up around them,reach results
which are in many cases commercially unrealistic, and for that
reason produce situations 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 substantially delays the appraising of
merchandise in many cases. These defects in present procedures
would be largely cured by the Jenkins Bill, which passed the
House at the last session and is now 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 detail, 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.

v . ^

- 7In the long run, the level of our exports depends upon the
level of our imports; and our imports, in turn, depend on a host
of individual decisions by foreign business men that It is worth
a considerable expenditure of their time and money to enter
the American market. Those decisions will be largely influenced
by whether our Customs procedures are simple and reliable. The
simplicity and reliability 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.

0O0

v"-D

w
The Bureau of Customs has announced that it has under consideration
adoption of rules for the handling of imported wheat being trans-ported or
warehoused unrer "bond.
The proposed regulations would prohibit,except as specifically
authorized under sections 311 and 562 of the Tariff Act of 1930,as amended,
the mixing, "blending, commingling, or manipulation in customs bonded
elevators, during transportation in bond, while on conveyor belts on the way to
the exporting vessel, or while otherwise in customs custody
v'ith domestic wheat of any class m^yi**~y~<
Notice of the intended rule making, with text of the proposed
regulations,was made by publication under the administrative Procedure Act,
in the Federal Register of Friday,May 14,1954. Interested parties may submit
their views in writing to the Commissioner of Customs within-a period of
30 days from the date of publication.No hearing will be held.

*&**

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Tuesday, May 18, 1954.

H-487

The Bureau of Customs has announced that it has
under consideration adoption of rules for the handling
of imported wheat being transported or warehoused under
bond.
The proposed regulations would prohibit, except
as specifically authorized under sections 311 and
562 of the Tariff Act of 1930, as amended, the mixing,
blending, commingling, or manipulation of imported
wheat with domestic wheat of any class while in customs
bonded elevators, during transportation in bond, while
on conveyor belts on the way to the exporting vessel,
or while otherwise in customs custody.
Notice of the intended rule making, with text of
the proposed regulations, was made by publication under
the Administrative Procedure Act, in the Federal
Register of Friday, May 14, 1954. Interested parties
may submit their views in writing to the Commissioner
of Customs within a period of 30 days from the date of
publication.

No hearing will be held.

0O0

3b
- 3-

but shall be except fron all taxation now or hereafter imposed on the principal

or interest thereof by any State, or any of the possessions of the United State
or by any local taxing authority. For purposes of taxation the amount of dis-

count at vfhich Treasury bills are originally sold by the United States shall b
considered to be interest. Under Sections 42 and 117 (a) (1) of the Internal
Revenue Code, as amended by Section Hf> of the Revenue Act of 1941, the amount

the oT/nor of Treasury bills (other than life insurance companies) issued hereunder need include in his incor.o tax return only the difference between the

price paid for such bills, rrhDther on oriyinal issue or on subsequent purchase
and the aaount actually received either upon sal-- or redemption at maturity

during the taxable year for -which the return is nade, as ordinary gain or loss
Revised
Treasury Department Circular No. 4l8,/aS3CJOBCS!±xsfc, and this notice, prescribe the terns of the Treasury bills and govern the conditions of their
issue. Copies of the circular nay be obtained fron any Federal Reserve Bank
or Branch.

"2~

payment of 2 percent of the face amount of Treasury bills applied for, unless

the tenders are accompanied by an express guaranty of payment by an incorporate
bank or trust company.
Immediately after the closing hour, tenders mil be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made
by the Treasury Department of the amount and price range of accepted bids.

Those submitting tenders will be advised of the acceptance or rejection thereof
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, in wholo or in part, and his action in any such respect
shall be final. Subject to these reservations, non-coiapetitive tenders for
$200,000 or less without stated price from any one bidder will be accepted
in full at the average price (in three decimals) of accepted competitive bids.
Settlement for accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on May 27, 19$k 3

cash or

other immediately available funds or in a like face amount of Treasury bills
e

maturing

May 27 1 195k

Cash and exchange tenders will receive equal

jrsHr

treatment. Cash adjustments vri.ll be made for differences between the par

* C\
value of maturing bills accepted jpr^xehange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or gain from
the sale or other disposition of the bills, shall not have any exemption,
as such, and loss fron the sale or other disposition of Treasury bills shall

not hav.".: any special troatnont, as.^such, under the Internal Revenue Code, o
laws amendatory or supplementary thereto. The bills shall be subject to
estate, inheritance, gift or other excise taxes, whether Federal or State,

x
1*4)1
'f^^

lUu
KMXW-KKXK
ISKXX
TREASURY DEPARTMENT
Washington
FOR RELEASE, HORNING NEWSPAPERS,
Thursday, May 20, 19$k

^*^

The Treasury Department, by this public notice, invites tenders for
$1,500,000,000 , or thereabouts, of 91 -day Treasury bills, for cash and

~~aw~

in exchange for Treasury bills maturing
gay 27. 19$k
3 ^ n ^he amount of
§ 1«500•726,000 3 to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated May 27, 19$k , and will mature August 26, 19$k 3 '--hen the face

anount will be payable without interest. They will be issued in bearer form only
and in denominations of $1,000, $5,000, $10,000, §100,000, $500,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o'clock p.m.. Eastern/Sfcaotaxktime, Monday, May 2k, 19$k
Tenders will 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 thre
decimals, e. g., 99*92$. Fractions may not be used. It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which will b
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust corxoanies and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by

RELEASE MORNING NEWSPAPERS,
Thursday, May 20, 1954.

The Treasury Department, by this public notice, invites tenders
for $1,500,000,000, Q r thereabouts, of 91-day Treasury bills, for
cash and in exchange for Treasury bills maturing May 27, 1954,
in the amount of $1,500,726,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated May 27, 1954,
and will mature August 26, 1954, when the face amount will be
payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Daylight Saving time,
Monday, May 24, 1954.
Tenders will 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
special envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price
range of accepted bids. Those submitting tenders will be advised of
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders
in whole or in part, and his action In any such respect shall be
final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted

- 2 competitive bid3. Settlement for accepted tenders in accordance
v/ith the bids must be made or completed at the Federal Reserve Bank
on May 27, 1954,
in cash or other immediately available funds
or in a like face amount of Treasury bills maturing May 27, 1954.
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, shall not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills shall not have any special treatment, as such,
under 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. Under Sections 42 and 117 (a) (l) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the
amount of discount at which bills Issued hereunder are sold shall not
be considered to accrue until such bills shall be sold, redeemed or
otherwise disposed of, and such bills are excluded from consideration
as capital assets. Accox*dlngly, the owner of Treasury bills (other
than life Insurance companies) Issued hereunder need include in his
income tax return only the difference between the price paid for
such bills, whether on original Issue or on subsequent purchase,
and the amount actually 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. 4l8, revised, and this
notice, prescribe the terms of the
Treasury bills and govern the
oOo
conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

myrjftgr^e., Mfly fiQi Treasury Secretary Gcui^e M. Humphrey today
presented\four aircraft companiesfajgBBPi Treasury -department citations
for their outstanding record in promoting the sale of U. S. Savings Bonds

through the Payroll Savings Plan during a recent nation-wide Payroll Savings
Campaign?^ ***#&>, **&- *** ^ —^_--~«^_

ing of the Aircraft Industry Association in WiiHamsburgf Va», were W. M« All
president, Boeing Aircraft Company:; J. V. Na^sh, executive vice-president
A
Consolidated Vultee; Carl Squier, vice-president, Lockheed Aircraft Corporationj
and Lt. Gen. Ira C. Eaker, vice-president, Hughes Aircraft Corporation.
as**In t2S53SKSad$. industry-wide campaign under the chairmanship of Robert E.
Gross3 president and chairman of the boarol^ Lockheed Aircraft Corp., er
196,000 new payroll savers were added ea the aircraft industry. J*
400,000 the number of aircraft employees now purchasing
savings bonds regularly # am lAnmii ui/numfti 1 HW

5 7 per cent +\e\ employee

aawwgfcwwait»uu Uml nuinawlil"} Hi' "3gP/LjJ Jl
participation.
bonds by the aircraft employees w>^4iiwuPaywiiiiuaai higaggfcaB>

A
Secretary Humphrey in presenting the awards told the aircraft leaders

that Jfthelr payroll savings record is an achievement in which every partic
pant can take pride.lit sets a most commendable example for every employer

and employee in American industry, Systematic bond buying on the JisEEaaf /

jyl 'iiiriTiiW^iriM aids the Treasury in managing the ^atioMal debt in a ma
that will preserve 1 elaUi VIPVMBBAMV of the
the same time, each bond buyer

provide f o r his own security."

iru
- 2 Citations were presented several months ago to
Mundy Peale, president of Republic Aviation Co. of New York,
and H. M. Horner, president of United Aircraft Corporation
of Connecticut, for outstanding payroll savings participation
records among aircraft manufacturing companies in the East.
Competition between employees of the various companies
to establish the best bond-buying records was marked by
the attainment of 100 percent employee participation in an
-Arizona plantAwith 2,000 employees, and 99.25 percent
y

yi^ /?p/c/Lf^/ mt^k^^^T"

participation at a Georgia paant with l4,0Cfo employees.
Secretary Humphrey in presenting today's awards told the
aircraft leaders assembled here that their payroll savings
record is an achievement in which every participant can
take pride.
"It sets a most commendable example for every employer
and employee in American industry," the Secretary said.
"Systematic bond buying on the payroll savings plan aids
A

the Treasury in managing the public debt in a manner that
will help preserve the value of the dollar.

At the same

time it helps each bond buyer provide for his own security."

RELEASE MORNING NEWSPAPERS,
Friday, May 21, 1954.

ii^
H- M'° l

^Treasury Secretary Humphrey today presented. Treasury
Department citations to four aircraft companies for their
outstanding records in promoting the sale of U. S. Savings
Bonds through the Payroll Savings Plan during a recent
nation-wide Payroll Savings Campaign.
'"^y The awards, made at the annual meeting of the Aircraft
Indus t^fAssociation in Williamsburg, ~J£fe} were accepted on
behalf of their employees by W. M. Allen, president,
Boeing Aircraft Company^J. Jf, Naish, executive vice-president,
Consolidated Vultee^ Carl Squier, vice-president, Lockheed
Aircraft Corporation^^and Ltf. Gen. Ira C. Eaker, vice-president.
Hughes Aircraft Corporation. CaJ^L-£$®*^, CssMf,
In an industry-wide campaign under the chairmanship of
Robert E. Gross, president and chairman of the board of the
Lockheed Aircraft Corporation, more than 196,000 new payroll
savers were added to the aircraft industry rolls, bringing
to 400,000 the number of aircraft employees now purchasing
savings bonds regularly.
participation.

This represents 57 percent employee

The investment being made in Savings Bonds

by the aircraft employees is close to $100,000,000 annually.

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Friday, May 21, 1954.

H-489

Williamsburg, Va., May 20 — Treasury Secretary Humphrey
today presented Treasury Department citations to four aircraft
companies for their outstanding records in promoting the sale of
U. S. Savings Bonds through the Payroll Savings Plan during a
recent nation-wide Payroll Savings Campaign in the aircraft
industry.
The awards, made at the annual meeting of the Aircraft
Industries Association in Williamsburg, viere accepted on behalf
of their employees by W. M. Allen, president, Boeing Aircraft
Company, Seattle, "Wash.; J. V. Naish, executive vice-president,
Consolidated Vultee Aircraft Corporation, San Diego, Calif.,
(now Convair division of General Dynamics Corporation);
Carl Squier, vice-president, Lockheed Aircraft Corporation,
Burbank, Calif.; and Lt. Gen. Ira C. Eaker,vice-president,
Hughes Aircraft Corporation, Culver City, Calif.
In an industry-wide campaign under the chairmanship of
Robert E. Gross, president and chairman of the board of the
Lockheed Aircraft Corporation, more than 196,000 new payroll
savers were added to the aircraft industry rolls, bringing to
400,000 the number of aircraft employees now purchasing savings
bonds regularly. This represents 57 percent employee
participation. The investment being made in Savings Bonds by
the aircraft employees is close to $100,000,000 annually.
Citations were presented several months ago to Mundy Peale,
president of Republic Aviation Co. of New York, and H. M. Horner,
president of United Aircraft Corporation of Connecticut, for
outstanding payroll savings participation records among aircraft
manufacturing companies in the East.
Competition between employees of the various companies
to establish the best bond-buying records was marked by the
attainment of 100 percent employee participation in an Arizona
plant of Hughes Aircraft with 2,000 employees, and 99.25 percent
participation at a Georgia plant of Lockheed Aircraft with
14,000 employees.
Secretary Humphrey in presenting today's awards told the
aircraft leaders assembled here that their payroll savings
record is an achievement in which every participant can take pride.

- 2 "It sets a most commendable example for every employer
and employee in American industry," the Secretary said.
"Systematic bond buying on the payroll savings plan greatly
aids the Treasury in managing the public debt in a manner that
will help preserve the value of the dollar. At the same
time it helps each bond buyer provide for his own security."

0O0

in>
- 10 National Board of Fire Underwriters
cin

Dra#t #2
5/W54

this" jft&fet-yeaF may tw eanparedw/"jfetli
The rapidity with which moves have been taken to expand

the availability of credit during the last year has done much
to ease the current adjustment. With credit nwllty available,
businessmen have been able to carry out a gradual liquidation of
any excess inventories. An ample credit supply has also permittee
housing, plant and equipment development, and municipal construemove
tion to h€ mmxm forward as defense orders have been cut.

It has

enabled many businesses to convert from defense productinn to
production of things for more and better living.
The present business outlook is reassuring.
confidence

We have

than* our program is sound. The steps

that have been taken have been significant in smoothing the
current transition. But, more important, they are laying the
groundwork for the continued economic growth of our nationf«-w

* * * * *

!F*"<4k

While the major responsibility for monetary policy rested

^Jj^M^^^^t

y
with the-Board, the Treasury worked in the same direction with
other executive departments vto reduce Government spending, and
to adJjjfi't the Government's)operations so as to avoid adding to
the expansion of bank credit.
The Readjustment
JPiie middle of last year there was a turn in the economic
situation. As~usua4T when a« inflationary trend is- checked.
there ^an a,Imest inevitable readjustment^ That readjustment
App^y^^luXmmmm^ -*m~jL,* ,*.«£.«•»« «• +f

involved a gradual shift from the accumulation of inventories
A
to their reduction, from a steady expansion of consumer credit
to a desire to repay debts* and a shift from extravagance to

3 fid
Dr^t #2
National Board of Fire Underwriters

5/JL8/54

J it
- 7 National Board of Fire Underwriters

Dra** #2
5/ljg/54

after, followed by the inflation of Korea, had cut the buying
power of the foliar nearly in half and, if continued, would have
run the risk of a violent deflation.
In recent years we have learned more about these great
economic movements which can carry such grave dangers. Experience
both here and abroad has demonstrated some of the principles of
keeping them under control and curbing their destructive power
<ffe human welfare. A major cause of these movements has been unwise governments policies. A major cure is found in sound
fiscal and monetary policies.
The first principle is to avoid and stop inflation.

want to prevent depressions, we must first learn how to prevent
inflation

Drafp m
National Board of Fire Underwriters

5/^8/54

country to make long-term, dynamic progress; freedom to make
more and better jobs and to produce higher standards of living.
Aside from war, what are the economic enemies of human
progress? One such enemy is too much Government^ too many
controls, too high taxes, and too much Government spending.
It is WS& the people of the country who make 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.

X
J
Another great enemy of human welfare has been inflation or
deflation. Inflation robs the saver for the benefit of the

fcy &fy~y a*u»*4 tie <***% /*»
speculator and (s^efStLmtesasSmmilte^^

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

i Jy

- 5 Draff #2
5/1V54

National Board of Fire Underwriters

securities, or if the Reserve System is used for political
purposes. Freedom of the Federal Reserve System from these
pressures was partially regained in 1951, as a result of
Congressional hearings and public pressures.

Its freedom has

been more fully regained in the past sixteen months, jmd jthe
System

used its powers

to combat inflation in

1952 and the early part of 1953#

The third requirement for honest money is that our great

<^*

national debt of $270 billion shall be so handled as to more

nearly neutralize its influence for inflation or deflation. This
means spreading the debt out over a longer period of years and
gradually placing it more widely among the people. Progress has
been made indoing so^^^^t^^ I ^^ t+&* jj
Now let me come back to the basic human principles of this
program.

The great, outstanding purpose is more freedom and the

removal of handicaps to freedom; freedom for the people of this

1 J v1

- 4 National Board of Fire Underwriters

Df>ft #2
5/W54

, its early enactment by the Congress will be nrfji helpful
during the present transition period to less defense spending by
Government.
The third aim of the Treasury is honest money — money that
will retain its TOJiiiiHiff level of buying power over the years
that the person who buys U. S. Savings Bonds, or saves money in
other ways, may reasonably expect that when he comes to use his

savings, they will have about the same value as when he saved the
Honest money requires first a budget that is under control —
that is not a cause of continued inflation. The figures given
above show that the budget is being brought under this control.

A second requirement for honest money is the Federal Reserve

System's freedom to perform its statutory duty of influencing the
money supply for the public welfare. This cannot be done if the
powers of the System are used to peg the price of Government

- 3 -

Draft #2
5/18/54

National Board of Fire Underwriters

ft-* 6XJL
Tfrinpln gnnacally •

e many benefits for

the sixty million American earners of wages and salaries ri
In addition, more flexible
depreciation allowances, as well as partial relief from double
taxation of dividends are aaong the provisions which will stimulate business.

These

will not only help new businesses

get started but will encourage existing businesses to expand,
to modernize and so create more and better jobs«xiM*fe—efl&gprw

The tax revision bill will result in loss of revenue of
$1.4 pillion, but; 'J * J-,,-**-- *^t +]irt rnrimr"*'1' "
at 52 percent instead of going down to 47 percent.

#Z,*nM
I

H n l l B g n ^ •*f'"" ?1* »—T^*"*'"-

While 4 p is basically a tax reform

National Board of Fire Underwriters

Drk^t r #2
5/1w54

First, the Administration's budget for fiscal 1955 is
$12 billion less than the budget submitted to the Congress by the
past Administration for fiscal 1954. We are cutting spending
as quibfa'ly a<§ possible without either endangering our military
strength or risking too severe a readjustment in the economy.
Second, tax cuts which will be effective this year, if
the President's program is adopted, will total $7.4 billion,
the largest total dollar tax cut^ made in any year in the history /
of the country.
About two-thirds of the tax cuts' go directly to individuals. 7
The other third goes to stimulate production more directly and
make more and better jobs and improve standards of living. -Swtfeh
«»j '"*•*'

mot "forgeT',''Tltt* (these tax cuts are possible only because we have
reduced Government spending.
Part of this tax program is the tax revision bill now
before the Senate Finance Committee. It is a comprehensive
revision of the whole revenue code. This bill is the result of
more than a year's work of our Treasury tax team and the
Committees of the Congress.

Drjr*V#2
L8^4

1
Address by/ W. Randolph Burgess
A- Deputy to the Secretary,/before the/
National Board of Fire Underwriters,
Commodore Hotel, New York City,
7:30 p.m., Thursday, Hay 20, 1954.
"PUBLIC FINANCE AND THE PEOPLE'S WELFARE"

Lve program which is conservative in economic*
s o:

Treasury,, Be jMurtment.
Tuuighl I ulf IV QMtlim

%mr

3SeSEig^~?f&£*>---

Ose aims, and

is and

standard of t^ir effect on human f e t f W U ^
"%m4mAJA*

The aims and objectives of the
as economy, lower taxes, and honest money.

be summarized
These are clear
|rf*^

People generally may not realize how much has been done in
sixteen months towards reaching these three objectives.

11 r.
~ 22 ~
#

,4s

Dr«fV#2

It has enabled #any.^bu#«.a«sses to
.•*t*?fcs fe i"i» .s^v^tiu*', y before th%?
m-:^ymt 'w.r-'* <Mf Fare $*<}«***:* ter»,

convert fn^mtdefansa production to
product ion of things for more ®r\Q
bettef jML t ving'^fl
fce^ggfrSfct' $ ,~r^#^ 4fa>y ^.^ram which is conservative in e c o i o S l ^ ^ i

reas^ur mar We have confidence that
our program is sound* The steps

*^*that-*<Jia¥e been -taken?- have-- been.**.
significant in smoothing the current
transition,,
^

But, more rwporttnt, they

- **

-£••- fc^^^-**^-^** be summarized

••Htr

*% *ara laying the groundworkft##or t&@r <«*
i^ healthy long term^economic growth of
^i

yn%. < ^ *,.«* mtkch h^s been done is

our nation*
**>***<*&

*. ^

•<.••.-•-•

- .^..vt ', :v-^*.^ thrme object I veil:

Tiv.-- ra;:i : ity -• i th ' vhi?n

moves

yyt. i ee.i taki,.. 'io insure The
avai.la.1 ilitv of .6ro;dit'"<Jur irt£ tn©
last vrar hs- don*- much to eate the
ourn-nt ad jurtsiey.t. with c. ufjit
availifrlr,, :-upinps?.mon havr been alio
to -osrrv out a radual reduction of
txct-ss inveniorit.s. , A;i a«mlfc» credit
yiiaolv Ua? al'-o permitted housing,
olant and «*,»,ui ,»nt;i»t development, and
.Eiunic-iisal construct ion -to ;<iov&
forvsrd t? defen-e0n?lfirs have'•horn, c

1V^

- 20 -

HIE R^m^MMMl
Beginning with the middle of
last year there was a turn in the
economic situation* The inflationary
trend was checked; a readjustment
followed* That readjustment invoivea
a gradual" shift from Government to
private spendingf from the
accumulation of inventories to their
reduction, and from a steady exp^n^ion
of consumer credit to a desire to rep^y
debts.

While the major responsibility
for monetary policy re*ted «ith3the
Federal Resarve, the Treasury worked
in the same d irect t on***i th-othsr1***^
executive departments to reduce
Sovsrnnent spending, and5totpl3h the
Government's fin?ncino operations so
as to avoid adding to the^expansion
of hank credit.

1 /i

- 18 Whs t ha pp'etied i n rf he *f ir s< h#1 f
of 1953 was'the' comina to V HeVd'o*f the
inflationary movement th*?ty^d corta on
for a numher of years.

in llaling with

this mbvameht, fraasury^pBl1cy®wts in
accord wi th the policyr*of 'r'estr? intaby
the nonpartisan Federal°R3Serve'n8osrd,
a policy begun montns b§for@P|r§s t0ok
office. The System's policy of
restraint took the form of higher
discount rates and an open markat polic
that kept pressure on bank reserves.

- 17
The Treasury, /forking Mi th tlvet Federal
r -i

Reserve System, ha$ been u H n g j t s f ..

influence to avoid inflation or „,,
T
' * J one on
eflat ion.
n dfealina with

V/he.n this Administration c.^m^ into
power, we ware in the latter sttaes of
o ^ t

an inflationary boom which #had

/•% 4 %

sua /r-4

followed the Korean military .effp.r.t.
I»I# ^

which,

•;*'0

iuw

in its turn, had followed the

inflation of $orld War I I,. These
1

* fcs.

inflations had cut the value of the
*\ ~* 1 a-$ %£ _X * i~*

ollar

fe# 1

in half, with much of thi*

shrinkage since thj end of World War II,

1.^

Mr . Barnard garucb:was:i. HitOtsH§aifewil"
day- ago as saying that ifweewtnt to
prevent seores^ ion^f we ^unt iirrst
learn how.to prevent inflation. . . /'
T

he second princ iplet i anto^me into

recognize recessionMniitssDarlyges ^f
stages ani to estabi i^hiahgbvernm ntil
climate favorable to r3covery?ffort
This is the br^oad h^ck ^rouridtbf
the uconom ie philosophy lagai nstewh1ch
to i nt iroret theuevahtsvofu/thsfp*~ t
sixteen month?. ~*ith much of this
•K-e tha ane of -Vorlc War II

-"15'-'
Experience both here and abroad has
demonstrated some of the principles
of keeping +hem under control ^na
curbing their destructive power over •
human welfare. * major cau~e of these
movements has been unwise government
policies. A major cure is found in
sound fiscal and morieta1ryvpbl re ies.
The first "principle is to ivoid
and stop inflation.

I / m)

The i nf la t ion' of *tbe Ivte^O1 e*wW
followed by the def lat i onOof*» ths*©s

'30' s. The inflatiNOn of•» Worlds W*»r I

and af terV f oHowed*<by* the;*f i nf 1 nt
of*Konea, had cut the*buying power* of
the dollar nearly in half ami/ if nt
cent inued, would* have run the ri sk of
a violent -.dfcfla-t ion\«tary policies."
In recent year's swe h?jve learned
more ahou*t,|1:he«=,e3 oreat economic
movements '.vhich can carry such gr^ve
dangers.

1 >b ••

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 wav for deflation.
This country has had bitter
experiences with both inflation and
deflation. The inflation of World
War I was followed bv the deflation of
1921.

<%
_r1 2 3 _~

One such1 enemy *i s too much "U«mi
Sovernment --ytoo'many controls, too
h i gh11 taxes, and^ tob^mu'ch" Sovernment*
spending. It* is •the*people*of*the,nd
country who make prosperity -- with30,
their effort, theifdinitiative, and
the ir gen i us. *f This*Government' s%Rc!
program for economy*alow§rHaxes,
reducingscoritrolsf and'freer'markets is
a program to release more of the
energies of the American people to work
for their own welfare.

1/«
- 11 (*nw Now let me icomeobacktto the b^sic
humanrpr i nc i ples^of th i s^pnograra. toThe
-. V-'.

greatPoutstanding^purobseoisrmoret
freedom*and the removal "*of©handictps
to freedom; freedom»forrthe peoplehof
this country to* makeHong-term, and
dynamic progress;'freedomitoimake more
and better jofcs^and.tooproduceehigher
standards-oftMving.^o freer" narket* i*
« ®' Aside from11 war, what aretthe
economise enemies1 of* hum?nj progress? ork
far the-ir own welfare.

1>d

- 11 - 11 -

% w l*t 08 *don» h«ck "to the ba^ie
Yho \hirr" reculrenont for bonnet
%^-n^n sr frtuipies'-of this-'profrfw. "The
money is tnav. our great national delt
*?r-*;-*t ocitsts^d inf pur->o9e ?t«~ wore :
of f,270 billion shall he so-handled as
f
f3f|ti« and th# removtl of^htndicips
to 10m nearly neutralize itr
to fr«aao«? freedOTt-for the peoalt •*:'
influence for inflation or deflation.
this car#ntfy to' nttee : long-tern*
This nnans spreading thr dnbt out over
i^fiamc tfc»fr0.ff.; freedom-to fttaice more
a longer period of yearn and gradually
mptf -beti^r jo** and to produce higher
placii.g it wore widely anong the
**-at*H*;u*<!s of living*"
people, i ro^ress lias been nado in
4sitie from w-trt what are; the
doing so through larger sales of
ec^ncntc enemies' of h u m m p r o c e s s ?
Savings Bond- and market !-ondr.

13U

- 9 freedom of the Federal Reserve System
'•.•• \ • i • J I r" — -^

" L\;nc vt

from these pressures was partially
, ••; :• y :\ y- t\-y L ?ifbt

regained in 1351t as a result of
Congressional hearings and public
y

.. y

•-:

pressures•

t \

••:. i f .-•

i ••.

Its freedom has been more

fullv regained in the past sixteen
months.

The System used its powers

to combat inflation in 1952 and the
i : i • yy • •• 'i >•••?:'- ~ ^ ; tfp-

early part of 1953,

In the past year

•-. y •- . i t •.: .re • — -: yi&fJl- Li

it acted with equal vigor to create
a financial climate to ease the impact
y y i ^ ''; ':

;..

'-'.X' \*jy-. • i\ x.

of cuts in Sovernment spending%

The figures giv^n aoove f3fr0^r %that stem
the budget i s be i ng broughtiundery
this control. result of
A second requ irementrf or? honest
money is the Federal^Resenve -System1s

freedom to perform its startutorjy -..duty
of influencing the^money sutpply for the

public welfare • Th i s rcalnnut •••be.- do
if the powers of the System- ar^umed to
peg the price of Government Bacurrties,
or if the Reserve System is used for ct
poli t i cal purposes ^nt sptnd i ng

- 7yyy

The third aim of the Treasury
honest money -- money that will
retain its general level of buying
power over the years so*»that* theirst
per son who buys U, S J Sa V i ngst^ofvds^
or **saves money* in other ways^ may uty
reasonably expect^ that when he comes
to use his savings, theynwill havett
about the* same value as when the isaved o
them.
Honest money requires* fin,st a
budget that i^untier control — th^t is
not a cause of continued inflation.

1 Xi

- 6' -

The tax revision hill will
result in loss of revenue oftll.i
billion, but this loss isoiargely
offset by continuing the corporation
tax rate at 52 percent instead of
going down to 47 perc#nt^2yst nay
While this bill is basically* y
a tax reform measure, its^earUy
enactment by tha Congress will be
helpful during the present transition
period to less defense spending by
Sovernment*

It will help in the•"d'hift

of workers from public to private
employment.

This '"ill provides ?"tany benefits
Tor the sixty will ion American
earners of wages and salaries. In
addition, oore flexible depreciation
anoyances, as well as partial relief
from double taxation of dividends
arc among the provisions which VMH
stimulate JMjr-inens. . These chanqes
win not only help new businesses aet
start*-.'! ::-ul vill encourage exist ina
yusi,iRsr!;s to expand, to nodorn i 7«.
and BO create rioro, .and better io'-s.

These tax cuts are possible only
because we have reduced Sovernment
spend ing.
Part of this tax program is the
tax revision bill now before the
Senate Finance Committee.
comprehensive revision of the whole
revenue code* This bill is the
result of more than a yearfs work of
our Treasury tax team and the
Committees of the Congress.

Second, tax cuts which ^111 be
effective this "year, • ff the Wis icfent1 s
program is adopted, will tot^l $7.4
billion, the larjjes't*tottrtfBll^r1 t*x
cut made in ^ny 'year*ih^theihi story
of the country.
About two-fh irdt1 of * the6 tlx^ctit
goes directly to indiviiuklsthaThe othe

th i r d goes sto stimuli t'feJ pr bduc t i*on *
more directly1andtm%keamore^ind better
jobs'and improve8 ^tsntf-irris* of living.

First, the

Administration's

budget for fiscal 1955 is $12 billion
less than the budget submitted to the
Congress by the p$st Administration
" _.'•

',Jt

•

•V*"'

Jm.

for fiscal 1954. ie are cutting
i

spending as rapidly as possible without
e i ther endanger ing our mi 1i tary
strength or risking top severe
readjustment in the economy.

VU8LIC r IN4NU^ AND THE PEOPLE'S
WELFARE11
The aims and objectives of the

financial oroaram of this Administrate
may be summarized as economy, lower
taxis, and honest monev*

These are

clear aims and they have important
implications for human welfare.
People aenerallv mav not realize
how much has been done in sixteen
months towards reaching these three
object i ves.

3 3y

IOTACT mm

MIWBB

ii ntmmim rsmGrss, mmn130 its slogan!
BEFGRP THt"
m S X Q M L BaJUt»yOF J3IE ISDKR&RIT^>S

7*30 •'. ., THBSSUAI, KAI 20, l$$k

TREASURY DEPARTMENT
Washington
FOR RELEASE Oil DELIVERY
Extracts from address by •'». Randolph Burgess,
Deputy to the oecretarj of the Treasury, before
the National Board of J*ire Underwriters,
at the Commodore Hotel, New York, N. Y., 7:30 RI,
EDT, Thursday, May 20, 1954.

iPUBLIC FINANCE AIID 'THE PEOPLE'S VSLFAHEI

1 da

TREASURY DEPARTMENT
Washington
FOR RELEASE ON DELIVERY

Extract from address by W. Randolph Burgess,
Deputy to the Secretary of the Treasury,
before the National Board of Fire Underwriters,
at the Commodore Hotel, New York, New York,
7:30 PM, EDT, Thursday, May 20, 1954.
PUBLIC FINANCE AND THE PEOPLE'S WELFARE

The aims and objectives of the financial program of this
Administration may be summarized as economy, lower taxes, and
honest money. These are clear aims and they have important
implications for human welfare.
People generally may not realize how much has been done in
sixteen months towards reaching these three objectives.
First, the Administration's budget for fiscal 1955 is
$12 billion less than the budget submitted to the Congress by
the past Administration for fiscal 1954. We are cutting
spending as rapidly as possible without either endangering our
military strength or risking too severe a readjustment in the
economy.
Second, tax cuts which will be effective this year, if the
President's program is adopted, will total $7.4 billion, the
largest total dollar tax cut made in any year in the history of
the country.
About two-thirds of the tax cut goes directly to individuals.
The other third goes to stimulate production more directly and
make more and better jobs and improve standards of living.
These tax cuts are possible only because we have reduced
Government spending.
H-490

1 as
- 2Part of this tax program is the tax revision bill now
before the Senate Finance Committee. It is a comprehensive
revision of the whole revenue code. This bill is the resulc ol
more than a year's work of our Treasury tax team and the
Committees of the Congress,
This bill provides many benefits for the sixty million
American earners of wages and salaries. In addition, more
flexible depreciation allowances, as well as partial relief from
double taxation of dividends are among the provisions which will
stimulate business. These changer* will not only help new
businesses get started but will encourage existing businesses
to expand, to modernize, and so create more and better jobs.
The tax revision bill will result in loss of revenue of
$1,4 billion, but this loss is largely offset by continuing the
corporation tax rate at 52 percent instead of going down -co
47 percent.
While this'bill is basically a tax reform measure, its early
enactment by the Congress will is helpful during the present
transition period to less defense spending by Government. It
will help in the shift cf workers from public to private
employment.
The third aim of the Treasury is honest money — money that
will retain its general level of buying power over the years so
that the person who buys ~u\ S. Savings Bonds, or saves monsy in
other ways, may reasonably expect that when he comes to uss his
savings, they will have a-sout" che same value as 'when he saved
them.
Honest money requires first a budget that \s under control —
that is not a cause of continued inflation. The figures given
above show that the budget is being brought under this control.
A second requirement for honest money is the Federal
Reserve System's freedom to perform its statutory duty of
influencing the money supply for the public welfare. This cannot
be done if the powers cf the System are used to peg the price
of Government securities, or if the Reserve System is used for
political purposes. Freedom of the Federal Reserve System from
these pressures was partially regained in 1951, as a result of
Congressional hearings and public pressures. Its freedom has
been more fully regained in the past sixteen months. The System
used its powers to combat inflation in 1952 and the early part
of 1953. In the past year it acted with equal vigor to create
a financial climate to ease the impact of cuts in Government
spending.

:*/

- 3The third requirement for honest money is that our great
national debt of $270 billion shall be so handled as to more
nearly neutralize its influence for inflation or deflation.
This means spreading the debt out over a longer period of years
and gradually placing it more widely among the people. Progress
has been made in doing so through larger sales of Savings Bonds
and market bonds.
Now let me come back to the basic human principles of this
program. The great, outstanding purpose is more freedom and
the removal of handicaps to freedom; freedom for the people of
this country to make long-term, dynamic progress; freedom to
make more and better jobs and to produce higher standards of
living.
Aside from war, what are the economic enemies of human
progress?
One such enemy is too much Government — too many
controls, too high taxes, and too much Government spending. It
is the people of the country who make 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 »30'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.
In recent years we have learned more about these great
economic movements which can carry such grave dangers. Experience
both here and abroad has demonstrated some of the principles
of keeping them under control and curbing their destructive
power over human welfare. A major cause of these movements has
been unwise government policies. A major cure is found in sound
fiscal and monetary policies.
The first principle is to avoid and stop inflation.
Mr. Bernard Baruch was quoted a few days ago as saying that "if
we want to prevent depressions, we must first learn how to
prevent inflation, . . . "

The second principle is to recognize recession in its early
stages and to establish a governmental climate favorable to
recovery.
This is the broad background of the economic philosophy
against which to interpret the events of the past sixteen
months. The Treasury, working with the Federal Reserve System,
has been using its influence to avoid inflation or deflation.
When this Administration came into power, we were in the
latter stages of an inflationary boom which had followed the
Korean military effort which, in its turn, had followed the
inflation of World "War II. These inflations had cut the value
of the dollar in half, with much of this shrinkage since the
end of World War II.
What happened in the first half of 1953 was the coming to
a head of the inflationary movement that had gone on for a number
of years. In dealing with this movement, Treasury policy was in
accord with the policy of restraint by the nonpartisan Federal
Reserve Board, a policy begun months before we took office.
The System's policy of restraint took the form of higher
discount rates and an open market policy that kept pressure on
bank reserves.
While the major responsibility for monetary policy rested
with the Federal Reserve, the Treasury worked in the same
direction with other executive departments to reduce Government
spending, and to plan the Government's financing operations so
as to avoid adding to the expansion of bank credit,
THE READJUSTMENT
Beginning with the middle of last year there was a turn in the
economic situation. The inflationary trend was checked; a readjustment followed. That readjustment involved a gradual shift from
Government to private spending, from the accumulation of
Inventories to their reduction, and from a steady expansion
of consumer credit to a desire to repay debts.
The rapidity with which moves have been taken to insure the
availability of credit during the last year has done much to
ease the current adjustment. With credit available, businessmen
have been able to carry out a gradual reduction of excess
inventories. An ample credit supply has also permitted housing,
plant and equipment development, and municipal construction to
move forward as defense orders have been cut. It has enabled
many businesses to convert from defense production to production
of things for more and better living.
The present business outlook is reassuring. We have confidence
that our program is sound. The steps that have been taken have been
signixicant in smoothing the current transition. But, more
important, they are laying the 0O0
groundwork for the healthy lone term
economic growth of our nation.

** si

Uyql
RELEASE MOENIUO IPTSFAPERS,
' '
'l I
Tuesday, May 2$9 19gi».
The Treasury Department announced last evening that the teadmrm for |1,50O,O0O,OQ<
or thereabouts, of 91-day Treasury bills to ha dated May 27 and to mature August 26,

195U, which mere ottered on lay 20, were opened at the Federal Reserve Banks on May 2li,
The details at this issue are as follows*
total applied for - $2,327,388,000
Total accepted
- 1,503,051,000

(includes $173,311,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
Average price
- 99.818/ Equivalent rate of discount approx, 0.718$ per annua
Range of accepted competitive bids:
High - 99#822 Equivalent rate of Recount approx. 0.70l$ per anm®
tow
- 99.817
*
a e
«
»

0.72W

(2*7 percent of Hie amount bid for at the low price was accepted)
Federal Beserve Total Total
District

Applied tot

Boston I 22,290,000 # 18,790,000
lew Xork
1,71*3,7101,000
Philadelphia
23,190,000
Cleveland
3$, 167,000
lichaond
8,1*8,000
Atlanta
18,619,000
Chicago
257,463,000
St. levia
17,481,000
Minneapolis
16,71*0,000
Kansas City
1*6,737,000
Dallas
53,910,000
San Francisco
80,865,000
Total #2,327,388,000 H, $03,051,000

Accepted
1,095,207,000
6,2*40,000
23,81*3,000
7,182,000
12,1*58,000
170,1^3,000
l6,iij6,OG0
10,790,000
29,741,000
44,360,000
67,$$1, OCX)

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, May 25, 1954.

H-491

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated May 27 and to mature August 26, 195k, which were offered on
May 20, were opened at the Federal Reserve Banks on May 24.
The details of this issue are as folloi^s:
Total applied for - $2,327,388,000
Total accepted
- 1,503,051,000 (includes $173,311,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.816/ Equivalent rate of discount approx.
0.718$ per annum
Range of accepted competitive bids:
High - 99.822 Equivalent rate of discount approx.
0.704$ per annum
Low
- 99.817 Equivalent rate of discount approx.
0.724$ per annum
(47 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District

Applied for

Boston $ 22,290,000 $ 18,790,000
New York
1,743,744,000
Philadelphia
23,190,000
Cleveland
38,167,000
Richmond
8,182,000
Atlanta
13,519,000
Chicago
257,453,000
St. Louis
17,461,000
Minneapolis
16,740,000
Kansas City
46,737,000
Dallas
53,510,000
San Francisco
i0,So5,000
TOTAL $2,327,388,000 $1,503,051,000
0O0

Accepted
1,095,207,000
6,240,000
23,843,000
7,182 000
12,458,000
170,453 000
16,436,000
10,790 000
29,741 000
44,360 000
67^551*000

1 if"
- 3 -A_T .TST • *

JaaBg

but shall be exempt fron all taxation now or hereafter imposed on the principal

or interest thereof by any State, or any of the possessions of the United State
or by any local taxing authority. For purposes of taxation the amount of dis-

count at which Treasury bills are originally sold by the United States shall be
considered to be interest. Under Sections l\2 and 117 (a) (1) of the Internal
Revenue Code, as amended by Section 115 of the Revenue Act of 19U1, the amount

the o'-Tner of Treasury bills (other than life insurance companies) issued here
under need include in his income tax return only the difference between the

price paid for such bills, rhothcr on original issue or on subsequent purchase,
and the; amount actually received either upon sale or redemption at maturity

during the taxable year for -which the return is made, as ordinary gain or loss
Revised
Treasury Department Circular No. Ul8,/aaascx3caiia±, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their
issue. Copies of the circular may be obtained from any Federal Reserve Bank
or Branch.

- 2 -

payment of 2 percent of the face amount of Treasury bills applied for, unless

the tenders are accompanied by an express guaranty of payment by an incorporat
bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made
by the Treasury Department of the amount and price range of accepted bids.

Those submitting tenders mil be advised of the acceptance or rejection thereof.

The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, in wholj or in part, and has action in any such respect
shall be final. Subject to these reservations, non-competitive tenders for
$200,000 or less -without stated price from any one bidder will be accepted
in full at the average price (in three decimals) of accepted competitive bids.
Settlement for accepted tenders in accordance with the bids must be made or
coi-noleted at the Federal Reserve Bank on June 3, 195k , ip- cash or
—
TS2y
~*
other immediately available funds or in a like face amount of Treasury bills
maturing June 3, 19 $k • Cash and exchange tenders will receive equal
treatment. Cash adjustments will be made for differences between the par
value of maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or gain from
the sale or other disposition of the bills, shall not have any exemption,
as such, and loss fron the sale or other disposition of Treasury bills shall
not have any special treatment, as such, unaer 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,

1 &d

TREASURY DEPARTMENT
Washington

/,. *—•/

m^^l

*^~~

FOR RELEASE, MORNING NEWSPAPERS,

?l®sdayAJIay 2$. 195k ___
The Treasury Department, by this public notice, invites tenders for
% 1,500.000*000 , or thereabouts, of 91 -day Treasury bills, for cash and
in exchange for Treasury bills maturing June 3, 195k ,
$1,500,998,000

the amount of

, to be issued on a discount basis under competitive and non-

competitive bidding as hereinafter provided. The bills of this series will be
dated June 3, 1951* , and will mature September 2, 195k , when the face
amount will be payable without interest. They will be issued in bearer form only,
and in denominations of &1,000, $5,000, ^10,000, §100,000, $500,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o'clock p.m., Eastern^ifasEJbcx± time, Friday, May 28, 195k

Tenders will 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 thre
decimals, e. g., 99.92$. Fractions may not be used. It is urged that tenders

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, May 25s 1954.

The Treasury Department, by this public notice, invites tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills, for
cash and in exchange for Treasury bills maturing June 3, 195k,
in the amount of $1,500,998,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated June 3, 195k,
and will mature September 2, 195k, when the face amount will be
payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up-to the closing hour, two o'clock p.m., Eastern Daylight Saving time,
Friday, May 28, 195k.
Tenders will 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
special envelopes which will be supplied by Federal Reserve Banks or
.Branches on application therefor.
Others than banking Institutions will not be permitted to submit
tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers In Investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price
range of accepted bids. Those submitting tenders will be advised of
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders
in whole or in part, and his action In any such respect shall be
final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted

- 2competitive bids. Settlement Tor accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on June 3, 195k,
in cash or other Immediately available funds
or in a. like face amount of Treasury bills maturing June 3, 195k.
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether Interest or
gain from the sale or other disposition of the bills, shall not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills shall not have any special treatment, as such,
under 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. Under Sections k2 and 117 (a) (lb) of the Internal Revenue
Codej, as amended by Section 115 of the Revenue Act of 19kl, the
amount of discount at which bills issued hereunder are sold shall not
be considered to accrue until sunn bills shall be sold, redeemed or
otherwise disposed of, and such bills are excluded from consideration
as capital assets. Accordingly, the owner of Treasury bills (other
than life insurance companies) Issued hereunder need include in his
Income tax return only the difference between the price paid for
such bills, whether on original Issue or on subsequent purchase,
and the amount actually 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. 4l8, revised, and this
notice, prescribe the terms of the
Treasury bills and govern the
oOo
conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

1 r
TREASURY DEPARTMENT
Washington
FOE RELEASE A.M. PAPERS MAY 26, 1954
i

»m m

nHI mi m n n - M i n i n

II mum—mmum

m n

'" "•' »"i—«—>•«

i _ <mtmmmmm.\ n . .

Remarks by Secretary of the Treasury George
M. Humphrey, Farra-City Conference, Town Hall,
New York City, about 8:30 p.m., Tuesday,
May 25, 1954 (following presentation of the
Government Economy Award to forme? President
Hoover, Senator Harry Byrd and Secretary
Humphrey).
The American economy is the key economy in the world. It
is vital to the security and well-being of our millions of
citizens. And, every other nation is vitally affected by its
strength or weakness.
As long as our economy is sound and growing, there will
be more and better jobs for our people and better living for
all. And as long as the American economy is sound, growing and
prosperous, our allies are helped, Together, we can not only
protect ourselves against aggression but, from a position of
strength, can work to achieve real peace in the world.
If 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 living all around. But we would
not suffer alone. Our allies would also suffer. The strength
of the whole free world would be threatened.
To maintain this vital strength of our nation we must
have economical 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 economy.
In 17 of the past 20 years, this government has engaged
in deficit financing — spending more than its income.
This course for a government, as for a family, can only
lead to eventual disaster. The resulting depreciation of our
currency has already seriously hurt millions of Americans.
Continued cheapening of the dollar might finally result in the
collapse of our entire economic system. History records that
many great nations have fallen because of unchecked inflation
leading to economic collapse.
H-493

- 2 This Administration, when it took office in January 1953,
pledged its efforts to institute sound money policies. We
pledged ourselves to reduce government expenditures and to
strive toward attaining a balanced budget as rapidly as proper
regard for our security would permit.
The trend toward continually growing deficit financing
and all its evils has been halted.
The deficit for fiscal 1953 was almost $9^ billion. The
budget this Administration found when it assumed office presented an estimated deficit of nearly $10 billion. But because
of overestimates of revenue, this deficit would actually nave
been more than $11 billion.
The Eisenhower Administration has cut requested appropriations by more than $12 billion, and expenditures in this fiscal
year have been reduced by about J>7 billion. This will give us
an estimated budget deficit in our first full year of operation
of less than §4 billion. In the coming year, Fiscal 1955, we
have further cut planned expenditures by more than an additiona lf$5~l billion.
Our plans, of course, can badly miscarry if adverse
serious developments occur in the world, resulting in a revision of our future foreign undertakings.
We must and will 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 wisdom.
And barring major unexpected future international developments, we must provide adequately f*>r our security for the
long pull and still continue to strive to make further savings
in addition to those already made.
The cornerstone of our whole program is our firm belief
that a sound economy is an absolute prerequisite to a strong
defense over any extended period. It is the balance needed for
maximum development of both that we must maintain.
I am honored to accept this tribute in behalf of this
Administration, which is dedicated to obtain more economy and
efficiency in government. I am honored to receive this award
with such distinguished and effective workers for economy and
efficiency in government as former President Hoover and Senator
Byrd, who have made such conspicious contributions to its accomplishment over such a long period of years.

r-m

- 3 The achievements for which these awards are presented are
vital. Tney are vital because they go to the very heart of
the maintenance of a strong and healthy economy in this
nation which is not only the foundation for better jobs and
better living for all our people but actually is the free
world's first line of defense.

0O0

M a y 21, 1954

Dear M r . Secretary:
It has been a great privilege for me to have
served under you in the Treasury for the past year
and to have done what I could to advance the financial
program of this Administration in which I deeply
believe.
I have been on leave from the First Wisconsin
Trust Company in Milwaukee, and for reasons which
you understand I feel that I must now return there.
I am, therefore, submitting m y resignation as an
Assistant to the Secretary, effective May 31,
I look forward to continuing to work in private
life for the objectives which you and the other members
of your distinguished "Treasury T e a m n are seeking with
such unselfish devotion here in Washington.
Sincerely,

y/bc
Catherine B. Cleary
Honorable George M . Humphrey
Secretary of the Treasury
Washington, B.C.

15/

MAY 2/1954

n A tf

Dear Miss Cleary:
It is with sincere regret that I accept your
resignation as Assistant to the Secretary and from tae
Government service effective Hay 31. '
Much as we ia the treasury shall hate to lose you,
1 must honestly say ttiat I am pleased about what I
understand are your prospects for greater opportunity
on your return to the company froa which ymm have been
on leave since cowing into Governsest a year age. A
:. • . \r*

As Assistant Treasurer of the Suited States for
six months, and later mm Assistant to the Secretary,
you have gives loyal sad intelligent public service.
S%iis I recogaiss© that the opportunity i®* advancement
in your private field im s cospelling one at this tine,
1 must say fast your talent will be truly Missed here at
Ifrsssnury,
sir
#* ^ -,u <*B..
:,. .•;. w y

My sincere best wishes for all possible success
and happiness on y#sr return to private life and deepest
thank© for your months of splendid service to the Govern
ssent
'** %f
'****
Best personal regards, * 'afttlsK
-0

Kiss Cattevias B. Cleary Wurcpl^tAssistant to the Secretary rv '
Washington, D4 C,

NALennartson:nmw
5/24/54

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE
Wednesday, May 26, 1954

N ^ ^ /

H-494

The Treasury Department today made public the following
exchange cf letters by Assistant to the Secretary Catherine B
Cleary and Treasury Secretary Humphrey pertaining to Miss
Cleary»s resignation to be effective May 31:
May 24, 1954
Dear Miss Cleary:
It is with sincere regret that I accept your
resignation as Assistant to the Secretary and*from
the Government service effective May 31.
Much as we in the Treasury shall hate to lose
you, I must honestly say that I am pleased about
what I understand are your prospects for greater
opportunity on your return to the company from which
you have been on leave since coming into Government
a year ago.
As Assistant Treasurer of the United States for
six months, and later as Assistant to the Secretary,
you have given loyal and intelligent public service!
While I recognize that the opportunity for advancement in your private field is a compelling one at
this time, I must say that your talent will be truly
missed here at Treasury.
My sincere best wishes for all possible success
and happiness on your return to private life and
deepest thanks for your Months of splendid service
to the Government.
Best personal regards,
Sincerely,
/s/ G. M. HUMPHREY
Miss Catherine B. Cleary
Assistant to the Secretary
Treasury Department
Washington, D. C

- 2 May 21, 1954
Dear Mr. Secretary:
It has been a great privilege for me to have
served under you in the Treasury for the past year
and to have done what I could to advance the
financial program of this Administration in which
I deeply believe.
I have been on leave from the First Wisconsin
Trust Company in Milwaukee, and for reasons which
you understand I feel that I must now return there.
I am, therefore, submitting my resignation as an
Assistant to the Secretary, effective May 31.
I look forward to continuing to work in private
life for the objectives which you and the other
members of your distinguished ^Treasury Team" are
seeking with such unselfish devotion here in
Washington.
Sincerely,
/s/ Catherine B. Cleary
Catherine B. Cleary
Honorable George M. Humphrey
Secretary of the Treasury
Washington, D. C.

H-y**

mimm uaum MTSPAIKIS,
Mtwdayj a y t»t 19ft.

Th© treasury Bepartis©tit anasimced last evening taat the tawdmra for #1,500,000,00c

or tfaersalMmta, <a* fl*4ay fisasai'r bills %a at dated mm 3 md ts aatsrs isptsalwr 2,

Iffs* «hi<s» iwsre atferad on lay IS* w?© asanas at tas 9aaaral Baavria Banks ©a Hqr 2

total applied tat ~ ft,200,202*000
fatal asaapsss' - 1,500,501,000

(iaalaasg flfr, 060,000 *atsra6 an a
asassssntltiva basis ana' accepted in
full at the average price shown below)
Atsrass pries
- 99.620 &salirsl«at rats of alasount a p p m . Q*?U$ pea? amain
Image ©I accepted competitive bids* (gntptlag on® tandar of $200, OCX))
- 9fM$ Bquivalent rate af discount appm* 0*6*2$ psr annua

- so«a!8

0.7%®$ »

(31 persaat of the amount bid for at the low price was accepted)

IWeral Seserve
0istsist

fatal
AaalMfaf.

Basistt

|
36,258,000
1,660,372,000
28,705,000
32,551,000
6,830,000
36,186,000
232,306,000
11,111,000
6,*10,000

wPW X03Fi£

Cleveland
Atlanta
Qiieago
S*» J^-xiS

Kansas City

©aUaa
San framlma
TOTat

Total
r

.& #y§n8kz$$^iit3

|
26,919,000
1,063,193,00)
13,636,000
28,729,000
6,67k,000
13,951,000

iaa,i?3,ooo

39,076,000
llt*lt«X)

s6t5!0*ooo

11,2^,000
8,810,000
bi,961,000
2i,3S7,ooo
$3,77k9QM

If, 200,102,000

11,500,501,000

TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS,
Saturday, May 29, 1954.

H-495

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated June 3 and to mature September 2, 1954, which were offered on
May 25, were opened at the Federal Reserve Banks on May 28,
The details of this issue are as follows:
$2,200,412,000
1,500,501,000 (includes $159,080,000
entered on a noncompetitive
basis and accepted in full at
the average price shown
Average price
below)
99.820 Equivalent rate of discount approx.
per annum
(Excepting
one tender of
Range of accepted competitive bids: 0.714$
$200,000)

Total applied for
Total accepted

- 99.825 Equivalent rate of discount approx.
0.692$ per annum
Low
- 99.818-Equivalent rate of discount approx.
0.720$ per annum
(31 percent of the amount bid for at the low price was accepted)
High

Federal Reserve
District

Total
Applied for

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL

Total
Accepted

$
36,258,000
1,680,372,000
28,705,000
32,551,000
8,830,000
16,186,000
232,306,000
11,718,000
8,910,000
46,551,000
39,076,000
58,949,000

$
28,929,000
1,083,193,000
13,636,000
28,729,000
6,674,000
13,951,000
188,173,000
11,294,000
8,810,000
41,981,000
21,357,000
53,774,000

$2,200,412,000

in
$1,500,501,000

0O0

- 15 country in tines of peace and to stand ready to help
fight its battles if say should earn®* It is the price
that ms paid ten years ago by those Coast Guardsmen
who faced the Japanese forces at Guam and Okinawa. It
is the price that was paid by those young men who
parachuted to death OF slavery for our protection in
the jungles of Indo-China this very month*
You have shonn the willingness and have taken a
long step toward the accomplishment of your purpose*
A grateful Bation is indebted to you for dedicating
yourselves to this Service, and it claims you, as do
your own parents and families today, as our vary oun.

o o 0 o o

16\

- 14 -

in it for them. But at this particular time in the
world's affairs it was a shining light of hope — hope
that nmn are still willing to answer a call to a service
?t
that is above and beyond self —

a hope that men*s

imaginations and loyalties can still be stirred to a
point where the sacrifice of life itself is not too
great to sake for a great cause.
Every loyal American will agree that the preservation
of freedom in the world is such a cause. But this cause
cannot be won without the will of free men to pay the
price of winning it. The price to be paid is the "u0
willingness of young AneFioams to offer their services,
as you have done, to promote the best interests of your

Less than a month ago, several hundred young men
from France volunteered as paratroopers to drop into
a doomed and dying fortress in Indo-China in an effort
to breathe life into an obviously hopeless military
situation. These youngsters, many of whom had never
worn a parachute before, jumped to certain death or
capture — which to many has been worse than death —
when they parachuted into the fortress at Men Bien Phu
in Xndo-China, hoping to bolster the morale and spirit
of their comrades who had withstood intolerable attacks
for weeks on end. Why did they do it? What did they
hope to gain? lhat was in it for tham? Well, I don't
know. In the light of cold logic or reason perhaps
there was no sense in it. Certainly, there was nothing

1 i'^

- 12 patriotism and high resolve are encouraged by the
example of others, I would like to call to your mini
a very recent demonstration of the faet that young men
of yoni* generation still possess these virtues in a
high degree.
There is much of cynicism! there is mmh of m
defeatism; there is mmh of despair in parts of the
world today. We are semetiaes concerned about apparent
unwillingness or lack of courage to stand, fight and,
if nmei. be, to die for something bigger "than ourselves*
It is particularly heartening, therefore, to see an
example of courage, patriotism — yes, of idealism, if
you please, that shows that the human spirit still rises
above the discouragements and defeats of the day*

life that calls young son into the Coast Guard as a
career. There was something of tha spirit and of d
the heart, as wall as of the head, that caused each .
of you to take your-oath as a Coast Guardsman.
fhe nation is indebted to you for the decision
you made to eater this Service, and it is indebted to
you for the days of toil and the nights of study that
have been the ingredients of your, success at this
Academy. The nation will, I am sure, have cause to,
continue to be indebted to you for youp^willingness
to keep constantly fit and efficient, as an essential
part of the*security team, to protect and, if need be,
to defend your country* - vSince I am convinced that the qualities of courage,

-"10l~
1 hn
lifeboat of the United States Coast Guard Cutter fMPI.
It is the only tangible scrap that remains of this ship
which was torpedoed in the English Channel in September
1918, during the First World War* The loss of the crew
of one hundred Coast Guardsman by the sinking of the
filPl was, up to that time, the satani-largest singlenaval loss ever suffered by the United States, a,In at
proportion to its strength, the Coast ^tard suffered
the highest losses of any of the Armed Ssrrle** during
the First World War* * to '^ -or yi^r wllllajpea-i'
Sacrifices of this kind are not made by men"*whO'l
are just looking for an easy^berth for life — men who
are just trying to make a living* There must be
something beyond the mere ambition to get ahead in '!•%>•#•,

for whom the leader is responsible, and a willingness
to share £a3Xly unpleasant and difficult, as well as
dangerous responsibilities, fvsry of fleer who
possesses those qualities should go far towards
making his own solid contribution to maintaining and
constantly renewing the high esprit de corps that has
always characterised the United States Coast Guard*
In the maim Treasury Building in lashiagten
there is a small trophy room — there can be found
mementoes of past achievement by the Treasury Department
and by its bureaus and services. One of the proudest
exhibits there is a small brass flats about 2 inches
wide hj 5 inches long* It was picked up on a French
beach in 1924. It Is the identification plate from a

-a*
fhe faithful and efficient perfmatto* of these
duties that might mean so much to American security
can be guaranteed only if the high morale that has
been traditional in the United States Coast Guard is
maintained. I am sure that each of you members of the
graduating class of 19S4 will make your own contribution
to standards of leadership upom whi-oh.morale depends.
I have no doubt but that during your courses at the
Aeademy you have had frequent instruction in leadership.
from my own observation I am convinced that real
leadership cannot exist in the absence of certain toaan
qualities of the leader. These are a complete devotion

?
to duty, a thorough knowledge 'of the task to be
accomplished, a high sense of fairness to every person

I^H

. 7 -

Just as more constant tension has caused the
United States temporarily to abandon its traditional
;, L . .
."i'^.

'•'. £•

;' -

policy to the extent of maintaining armed forees by
compulsory military service, so a p»eater part of the
activities of your dual service has become related to
essential tasks involving the nation's security. lot
only is the degree of military preparedness, which you
as officers will be required to maintain in your future
commands, higher than during former periods of peace,
'&-. _ y.

but it is also true that a greater proportion of your
current activities will be performed with the feeling
of urgency that arises from the knowledge that upon
their faithful performance m^ rest important security
interests of your country.

job in time of war.

••'»'• - ^ «

-•• w«

fhe role of the Coast Guard, it seems^to me,,;fi*^
mi

illustrates uniquely America*s historical-military
posture. Until the threat of world "domination* by w|#
imperialist dictatorships became a constant hazard,
it had always been American policy to rely on simll ^
professional fighting forces, supplemented in time ?cu
of war by a trained and alert citisenry. Hie Coast ^^s
Guard is the only organization in American life that
is'designed to follow this precise pattern. "It $'m^
performs essential functions oovering the whole field"
of maritime aids in time of peace, but becomes an
efficient war machine as a' part of the- lavy In time ^1
of war.

- 5 Even a short visit to this section of our country,
which was truly one of the cradles of the Republic,
reminds one that not only is the United States Coast
Guard a proud Service, but it is an old Service. In
fact, it is about as old as the Republic itself.
Alexander Hamilton first recommended the founding of
the Lighthouse Service and the Revenue Marine in the
years 1789 and 1790. During the entire period of
185 years, this Service has combined in a very peculiar
way those practices which ought to be a part of every
American's course of conduct; that is, the performance
of a worthwhile peace time job when the nation enjoys
the blessings of peace, and an instant readiness and
yo

ability to perform, an effective and valiant military

17'J

- 4 -

these stirring pictures to mind is that "every American
is thrilled by a demonstration of his eountry*s
military might. Furthermore, nearly every American
boy is born with two strong sentiments — one: a love
of country; and the other: a love for the sea. * I am
sure you do not need to be 'reminded hj me that these
two sentiments will play a great part in*every ttay**
of your lives as commissioned officers in the United
States Coast Guard. They have combined during the
9s--

history of our Republic to produce the finest tradition
of naval performance in time of war "and an equally fine
tradition of maritime service in time of peace. To
both of these great traditions the Coast Guard has made
a major contribution.

17/
- 3 spring afternoon, it is not difficult for me to call
to mind that earlier and distant picture. Ihea I
do, I am nearly overwhelmed with a feeling of pride
and satisfaction at the p*eat display of America's
might and purpose that met the eyes of the Japanese
defenders of Guam as they awoke mi that fateful
morning*
I say it is not difficult to conjure up this
picture. lor is it hard to see again a similar scene
nine months later when the largest fleet of battle
and troop ships ever to assemble in a single operation
lay off the coast of Okinawa to commence the battle
that rang down the curtain of the Pacific War. I
suppose the reason that it is not difficult to call

17y1
- 2 the great armada of ships that stood off the shores
of Guam on that July day in 1944, the great American
Service which you are today entering as ee»&is®ieEeI
officers was well represented.
I deeply appreciate the privilege that has been
given me today to speak to the graduating class of
1954, since it affords me an opportunity in such a
public way to pay tribute to a sister Service of the
United States Amy, in nhieh, as a civilian soldier,
I have maintained an active interest for S5 years.
While it is a far cry, both in years and miles, to
that mid-Pacific July morning of 1844* and while it
is difficult to imagine a greater contrast with the
surroundings of this beautiful spot on a peaceful

1 *v -

Address Ij Elbert P. Tuttle, General Counsel
of the Treasury Department, at the 68th
Commencement Exercises of the United
States Coast Guard Academy, lew London, *if
Connecticut, May 28, 1954, A:*e %%r^> £&*-

Admiral O'leill, Admiral Hall, Members of the
Graduating Class of 1954, Ladies and Gentlemen:
A few days ago I received from General Lemuel
C« Shepherd, Jr., Commandant of the United States
Marine Corps, an illustrated history published by
the Marines, entitled wThe Recapture of Guam®*
This little book brought back to mj mind most vividly,
both by picture and text, days and nights of high
purpose and achievement by American arms in one of
the momentous battles of the War with Japan. It seems
appropriate for me to mention this event today, because
it gave me my first strong tie and bond of common
interest with the United States Coast Guard. For, in

J^m-jf/ft

1
TREASURY DEPARTMENT
Washington
FOR RELEASE 2:00 P.M., EDT
Friday, Hay 28, 195U

Address by Elbert P. Tuttle, General Counsel
of the Treasury Department, at the 68th
Commencement Exercises of the United
States Coast Guard Academy, New London,
Connecticut, May 28, 19$k, 2:00 p.m. EDT.

Admiral O'Neill, Admiral Hall, Members of the Graduating Class of
195U, Ladies and Gentlemen;
A few days ago I received from General Lemuel C. Shepherd, Jr.,
Commandant of the United States Marine Corps, an illustrated history
published by the Marines, entitled "The Recapture of Guam". This little
book brought back to my mind most vividly, both by picture and text,
days and nights of high purpose and achievement by American arms in one
of the momentous battles of the War with Japan. It seems appropriate
for me to mention this event today, because it gave me my first strong
tie and bond of common interest with the United States Coast Guard* For,
in the great armada of ships that stood off the shores of Guam on that
July day in 1944, the great American Service which you are today entering
as commissioned officers was well represented.
I deeply appreciate the privilege that has been given me today to
speak to the graduating class of 1954, since it affords me an opportunity
in such a public way to pay tribute to a sister Service of the United
States Army, in which, as a civilian soldier, I have maintained an active
interest for 3$ years a While it is a far cry, both in years and miles, to
that mid-Pacific July morning of 1944, and while it is difficult to
imagine a greater contrast with the surroundings of this beautiful spot
on a peaceful spring afternoon, it is not difficult for me to call to mind
that earlier and distant picture. When I do, I am nearly overwhelmed with
a feeling of pride and satisfaction at the great display of America' s
might and purpose that met the eyes of the Japanese defenders of Guam as
they awoke on that fateful morning.
I say it is not difficult to conjure up this picture. Nor is it hard
to see again a similar scene nine months later when the largest fleet of
battle and troop ships ever to assemble in a single operation lay off the
coast of Okinawa to commence the battle that rang down the curtain of the
Pacific War* I suppose the reason that it is not difficult to call these
stirring pictures to mind is that every American is thrilled by a
demonstration of his country's military might. Furthermore, nearly every
American boy is born with two strong sentiments — one: a love of country;
and the other: a love for the sea. I am sure you do nob need to be*

1
- 2
reminded by me that these two sentiments will play a great part in every
day of your lives as commissioned officers in the United States Coast
Guard. They have combined during the history of our Republic to produce
the finest tradition of naval performance in time of war and an equally
fine tradition of maritime service in time of peace. To both of these
great traditions the Coast Guard has made a major contribution.
Even a short visit to this section of our country, which was truly
one of the cradles of the Republic,, reminds one that not only is the
United States Coast Guard a proud Service,, but it is an old Service. In
fact, it is about as old as the Republic itself* Alexander Hamilton first
recommended the founding of the Lighthouse Service and the Revenue Marine
in the years 1789 and 1790*. During the entire period of 16$ years,, this
Service has combined in a very peculiar way those practices which ought to
be a part of every American's course of conduct; that is, the performance
of a worthwhile peace time job when the nation enjoys the blessings of
peace, and an instant readiness and ability to perform an effective and
valiant military job in time of war..
The role of the Coast Guard, it seems to me, illustrates uniquely
America's historical military posture* Until the threat of world
domination by imperialist dictatorships became a constant hazard,, it had
always been American policy to rely on small professional fighting
forces,, supplemented in time of war by a trained and alert citizenry*
The Coast Guard is the only organization in American life that is designed
to follow this precise pattern.. It performs essential functions covering
the whole field of maritime aids in time of peace, but becomes an
efficient war machine as a part of the Navy in time of war*
Just as more constant tension has caused the United States temporarily
to abandon its traditional policy to the extent of maintaining armed
forces by compulsory military service, so a greater part of the activities
of your dual service has become related to essential tasks involving the
nation's security.. Not only is the degree of military preparedness, which
you as officers will be required to maintain in your future commands,, higher
than during former periods of peace, but it is also true that a greater
proportion of your current activities will be performed with the feeling of
urgency that arises from the knowledge that upon their faithful performance
may rest important security interests of your country.
The faithful and efficient performance of these duties that might mean
so much to American security can be guaranteed only if the high morale that
has been traditional in the United States Coast Guard is maintained. I am
sure that each of you members of the graduating class of 19£H will make
your own contribution to standards of leadership upon which morale depends..
I have no doubt but that during your courses at the Academy you have had
frequent instruction in leadership.. From my own observation I am convinced
that real leadership cannot exist in the absence of certain human qualities
of the leader. These are a complete devotion to duty, a thorough knowledge

17H
- 3of the task to be accomplished, a high sense of fairness to every person
for whom the leader is responsible, and a willingness to share fully
unpleasant and difficult, as well as dangerous responsibilities. Every
officer who possesses these qualities should go far towards making his
own solid contribution to maintaining and constantly renewing the high
esprit de corps that has always characterized the United States Coast
Guard.
In the main Treasury Building in Washington there is a small trophy
room — there can be found mementoes of past achievement by the Treasury
Department and by its bureaus and services. One of the proudest exhibits
there is a small brass plate about 2 inches wide by $ inches long* It
was picked up on a French beach in 192iu It is the identification plate
from a lifeboat of the United States Coast Guard Cutter TAMPA* It is the
only tangible scrap that remains of this ship which was torpedoed in the
English Channel in September 1918, during the First World War. The loss of
the crew of one hundred Coast Guardsmen by the sinking of the TAMPA was,
up to that time, the second largest, single naval loss ever suffered by the
United States. In proportion to its strength, the Coast Guard suffered
the highest losses of any of the Armed Services during the First World War.
Sacrifices of this kind are not made by men who are just looking for
an easy berth for life — men who are just trying to make a living* There
must be something beyond the mere ambition to get ahead in life that calls
young men into the Coast Guard as a career. There was something of the
spirit and of the heart, as well as of the head, that caused each of you to
take your oath as a Coast Guardsman,
The nation is indebted to you for the decision you made to enter this
Service, and it is indebted to you for the days of toil and the nights of
study that have been the ingredients of your success at this Academy. The
nation w ill, I am sure, have cause to continue to be indebted to you for
your willingness to keep constantly fit and efficient, as an essential
part of the security team, to protect and, if need be, to defend your
country.
Since I am convinced that the qualities of courage, patriotism and high
resolve are encouraged by the example of others, I would like to call to
your mind a very recent demonstration of the fact that young men of your
generation still possess these virtues in a high degree.
There is much of cynicism; there is much of defeatism; there is much
of despair in parts of the world today. We are sometimes concerned about
apparent unwillingness or lack of courage to stand, fight and, if need be,
to die for something bigger than ourselves. It is particularly heartening,
therefore, to see an example of courage, patriotism — yes, of idealism,
if you please, that shows that the human spirit still rises above the
discouragements and defeats of the day.

17D

-k Less than a month ago, several hundred 3>-oung men from France volunteered
as paratroopers to drop into a doomed and dying fortress in Indo-China in
an effort to breathe life into an obviously hopeless military situation.
These youngsters, many of whom had never worn a parachute before, jumped to
certain death or capture — which to many has been worse than death — when
they parachuted into the fortress at Dien Bien Phu in Indo-China, hoping to
bolster the morale and spirit of their comrades who had withstood intolerable
attacks for weeks on end. Why did they do it? What did they hope to gain?
What was in it for them? Well, I don't know. In the light of cold logic or
reason perhaps there was no sense in it. Certainly, there was nothing in
it for them1. But at this particular time in the world's affairs it was a
shining light of hope — hope that men are still willing to answer a call to
a service that is above and beyond self — a hope that men' s imaginations
and loyalties can still be stirred to a point where the sacrifice of life itself is not too great to make for a great cause.
Every loyal American will agree that the preservation of freedom in the
world is such a cause0 But this cause cannot be won without the will of
free men to pay the price of winning it. The price to be paid Is the willingness of young Americans to offer their services, as you have done, to
promote the best interests of your country in times of peace and to stand
ready to help fight its battles if war should come. It is the price that was
paid ten years ago by those Coast Guardsmen who faced the Japanese forces at
Guam and Okinawa., It is the price that was paid by those young men who
parachuted to death or slavery for our protection in the jungles of Indo-China
this very month.
You have shown the willingness and have taken a long step toward the
accomplishment of your purpose, A grateful Nation is indebted to you for
dedicating yourselves to this Service, and it claims you, as do your own
parents and families today, as our very own.

0O0

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Author(s):
Title:

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UWMA News: Lewis Asks Secretary Humphery to Name Labor, Farm Governors to Reserve
Board

1954-06-01

Journal:

Volume:
Page(s):
URL:

Federal Reserve Bank of St. Louis

https://fraser.stlouisfed.org

June
First
1954

Bear Join
Thank yo® for ymmtt* mate #f
Jmne 1. W e appreciate very much yomr
suggestion.
It is feet my responsibility
to nominate m e m b e r s &t the Federal
Reserve Board, but I mm sure it is most
desirable to seek out prospective m e m b e r s
with broad background and understanding
coupled with the highest possible competence
and qualification, by experience, to perform
the particular duties and responsibilities mi
this Board.
Tfeaaks again for your suggestion.
Sincerely

Mr..Jobs !Ul*wi*
9©0 Fifteenth Street, N. W .
Washington, B . C .

TREASURY DEPARTMENT
WASHINGTON, D.C.

FOR IMMEDIATE RELEASE
Tuesday, June 1, 1954

H-497

The following letter was
George M. Humphrey tonight to
of the United Mine Workers of
letter received earlier today
"Dear John

sent by Treasury Secretary
John L, Lewis, President
America, in reply to a
from Mr. Lewis:

Thank you for your note of June 1. We
appreciate very much your suggestion.
It is not my responsibility to nominate
members of the Federal Reserve Board, but I
am sure it is most desirable to seek out prospective members with broad background and
understanding coupled with the highest possible
competence and qualification, by experience,
to perform the particular duties and responsibilities of this Board.
Thanks again for your suggestion,
Sincerely,
/s/

George

Mr. John L. Lewis
900 Fifteenth Street, N. W.
Washington, D, C."

18V
- 3 -

but sha.ll bo exempt fron all taxation now or hereafter imposed on the principa

or interest thereof by any State, or any of the possessions of the United State
or by any local taxing authority. For purposes of taxation the amount of dis-

count at which Treasury bills are originally sold by the United States shall be
considered to be interest. Under Sections L\2 and 117 (a) (1) of the Internal
Revenue Code, as attended by Section H5> of the Revenue Act of l°Ul5 the amount

of discount at which bills issued hereunder are sold shall net be considered to
accrue until such bills shall be sold, redeemed or otherwise disposed of, and
such bills are excluded from consideration as capita.1 assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the

price paid for such bills, whether on original issue or on subsequent purchase,
and the amount actually received either upon sale or redemption at maturity

during the taxable year for which the return is made, as ordinary gain or loss.
Revised
Treasury Department Circular No. ]±1Q,/sga&j&BSkasij and this notice, prescribe the terms of the Treasury bills and govern the conditions of their
issue. Copies of the circular may be obtained from any Federal Reserve Bank
or Branch.

mmJSSl

payment of 2 percent of the face amount of Treasury bills applied for, unless

the tenders are accompanied by an express guaranty of payment by an incorporat
baric or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, f ollowing which public announcement will be made
by the Treasury Department of the amount and price range of accepted bids.

Those submitting tenders will be advised of the acceptance or rejection thereo

The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, non-competitive tenders for
$200,000 or less vrithout stated price from any one bidder will be accepted
in full 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 10, 195^ s i-n cash or

w2
other immediately available funds or in a like face amount of Treasury bills
maturing June 105 19$k • Cash and exchange tenders will receive equal
treatment. Cash adjustments v/ill be made for differences between the par
value of maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or gain from
the sale or other disposition of the bills, shall not have any exemption,
as such, and loss from the sale or other disposition of Treasury bills shall
not have any social treatment, as such, uin/'cr 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,

1 Hq,

TREASURY DEPARTMENT
Washington

t h - <ft

FOR RELEASE, HORNING NEWSPAPERS,
Thursday, June 3, 1 9 ^
The Treasury Department, by this public notice, invites tenders for
$ 1»$QQ.QQQ»QQQ 3 or thereabouts, of Jl^-day Treasury bills, for cash and
in exchange for Treasury bills maturing June 10. 19$k >

^e amount of

XXX

% 1,501»139>QQ0

, to be issued on a discount basis under competitive and non-

competitive bidding as hereinafter provided. The bills of this series will be
dated J^ne .1Q, 19ffb. 3 and'-will mature September 9» 19$k 3 vjhen the face
xix
xsx
amount will be payable without interest. They will be issued in bearer form only,
and in denominations of £>1,000, $£,000, ^10,000, $100,000, $£00,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o'clock p.m., Eastern jjffc««i««i tirnp.j Monday, June 7, 19$k

Tenders will not be received at the Treasury Department, Washington. Each tende
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 thr
decimals, e. g., 99*92$. Fractions may not be used. It is urged that tenders
be made on the printed forms and forwarded in the special envelopes which will
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust corrroanies and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by

y . ^M-MM,»^*

TREASURY DEPARTMENT /7^J\\
WASHINGTON, D.C

RELEASE MORNING NEWSPAPERS,
Thursday, June 3, 1954.

H-498

The Treasury Department, by this public notice, invites tenders
for $L,500,Q00,QQ0, or thereabouts, of 91-day Treasury bills, for
cash and in exchange for Treasury bills maturing June 10, 1954*
in the amount of $1,501,139,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated June 10, 1954,
and will mature September 9, 1954, when the face amount will be
payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Daylight Saving time,
Monday, June 7, 1954.
Tenders will 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
special envelopes which will be supplied by Federal Reserve Banks or
.Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price
range of accepted bids. Those submitting tenders will be advised of
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders
In whole or In part, and his action In any such respect shall be
final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be
accepted In full at the average price (in three decimals) of accepted

" d.

competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on June 10, 1954 •
In cash or other immediately available funds
or In a like face amount of Treasury bills maturing June 10, 1954.
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the 1Bsue price of the new
bills.
The income derived from Treasury bills, whether Interest or
gain from the sale or other disposition of the bills, shall not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills shall not have any special treatment, 8,3 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. Under Sections k2 aad 11? (a) (l) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the
amount of discount at which bills issued hereunder are sold shall not
be considered to accrue until fiuch bills shall be sold, redeemed or
otherwise disposed of, and ouch bills are excluded from consideration
as capital assets. Accordingly, the owner of Treasui-y 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 actually 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, 4l8, revised, and this
notice, prescribe the terms of the
Treasury bills and govern the
oOo
conditions of their Issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

Governmental programs, the paper said, deal with four
major causes of income loss:

industrial accidents, old age,

death of the family provider, and unemployment.
"The multiplicity of financing problems associated
with our public programs for the assurance of income
maintenance should not obscure the fact that we have
a program that has thus far functioned remarkably
well," Mr. Folsom summed 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 virtues."

IK/

- 3Mr. Folsom!s report to the Columbia Bicentennial Conference
IV was made 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 our plans, both in Government and in industry,
we proceed on the assumption that such efforts on the
part of the individual will be continued, if not
intensified.

For example, our social security program

has been consciously formulated with a view toward
providing no more than a basic minimum of protection
so that it will stimulate additional, supplementary
efforts by the individual. By providing this minimum
protection, old-age and survivors insurance was designed
to encourage additional efforts to achieve a comfortable
retirement."
Among 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.

1*rt
- 2 Fifty-four percent of all non-farm families owned
their homes at the beginning of 1953* compared with
4l percent before World War II.
An estimated 5*500,000 persons now own American
industrial stocks directly, with many millions more
r

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 income of less than $10,000
and 56 percent had income of less than $5,000. These
groups owned 53 percent and 37 percent of the stock,
respectively.
Proposed partial relief from 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 more of their members, 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 policyholders.

The grand total more than doubled after the

end of World War II.

Extracts from remarks by Under Secretary of the Treasury
Marion B. Folsom before Bicentennial Celebration, Columbia
University, New York City, New York, 9:30 a.m., Friday,
June 4.

1 ^H
CURRENT ISSUES IN FINANCING INCOME SECURITY

Progress of a three-pronged American program to provide
income security for individuals was described to a Columbia
o
University Bicentennial Conference today by Marifiua B. Folsom,
/lu^A^
83& Secretary of the Treasury.
fegggg of the nation!s attack on potential economic
adversities were listed by Mr. Folsom as the efforts of
individuals themselves, of employers, and of the Government,
f

•

ance the force of U JiQlLltiiiiW first importance.

wiETTY§ie~Xr^

&yyyyi*+*sC jzrfi+yy
jzrfi+yy •

t the results of seifeEg&^*a^ Mr. Folsom said:
A

"Various indicators suggest that, on the whole,
individuals have acquired a greater measure of
protection against the loss of earnings than ever
before.

That protection takes various forms, including

cash and bank deposits, home ownership, investment in
securities (both privately issued and governmental),
and the ownership of insurance, property and productive
business enterprises."
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 million families and unattached individuals.

3l'

TREASURY DEPART! LENT
Vlashington

FOR RELEASE RI NEWSPAPERS
Friday, June 4, 1954

J G *f

1 d ,/

TREASURY DEPARTMENT
Washington

FOR RELEASE PM NEWSPAPERS,
Friday, June 4, 1954.

H-499

Extracts from remarks by Under Secretary of
the Treasury Marlon B. Folsom before
Bicentennial Celebration, Columbia University,
New York City, New York, 9:30 a.m., Friday*
June 4, 1954.
CURRENT ISSUES IN FINANCING INCOME SECURITY
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 employers, and of the Government, with
individual self-reliance the force of first importance.
Praising the results of individual effort, Mr. Folsom said:
"Various indicators suggest that, on the whole,
individuals have acquired a greater measure of
protection against the loss of earnings than ever
before. That protection takes various forms, including
cash and bank deposits, home ownership, investment in
securities (both privately issued and governmental),
and the ownership of insurance, property and productive
business enterprises."
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 million families and unattached individuals.

- 2 Fifty-four percent of all non-farm families owned
their homes at the beginning of 1953* compared with
4l 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 income of less than $10,000
and 56 percent had income of less than $5,000. These
groups owned 53 percent and 37 percent of the stock,
respectively.
Proposed partial relief from 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 more of their members, 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 policyholders, The grand total more than doubled after the
end of World War II.
Mr. Folsom's report to the Columbia Bicentennial Conference IV
was made 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 our plans, both in Government and in industry,
we proceed on the assumption that such efforts on the
part of the individual will be continued, if not
intensified. For example, our social security program
has been consciously formulated with a view toward
providing no more than a basic minimum of protection
so that it will stimulate additional, supplementary
efforts by the individual. By providing this minimum
protection, old-age and survivors insurance was designed
to encourage additional efforts to achieve a comfortable
retirement."

1
- 3Among 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 unemployment.
"The multiplicity of financing problems associated
with our public programs for the assurance of income
maintenance should not obscure the fact that we have
a program that has thus far functioned remarkably
well," Mr. Folsom summed 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 virtues."

oOo

IMMEDIATE RELEASE
^JThnggdayT~3nhe 3, 1954
Q^>-^ c) r9y

O
The Bureau of Customs announced today that
the Canadian wheat and wheat flour quotas prescribed
in the President's Proclamation of May 28, 1941, as
modified, were filled at the opening moment of the
quota period, 12:00 noon eastern standard time on
June 1, 19$ka

TREASURY DEPARTMENT
WASHINGTON, D.C

IMMEDIATE RELEASE,
Friday, June 4, 1954.

H-500

The Bureau of Customs announced today
that the Canadian wheat and wheat flour
quotas prescribed in the President's
Proclamation of May 23, 1941, as modified,
were filled at the opening moment of the
quota period, 12:00 noon eastern standard
time on June 1, 1954.

oOo

1Mb

]Ay[

RELEASE IttHIHQ HSTSPAP&IS,

ima^r, jam 8. Mgh.
The fmajmry ^m^mTtmm assmmmd last emmlm

that the tmndmra tar fl,$00,000*00^

or thereabouts, of 91-day Treasury bills to be dated June 10 and to iflatur

X9&*, which were offered on June 3* were opened at th© Federal Reserve Bank
The details of this issue are as follows:
f@t8& apflSM far - f^^StQfOOQ
Total accepted
- 1,^00,160,00')

(includes $167,307,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
Average pric©
~ 99.344/ Equivalent rait of diacount approx. 0.616^ par amm
Range @£ accepted competitive bids:
- 99.81$$fi$gl*B3*&&rate of discount appnm. Q*60$$ par am
- 99*842
•
n
•
•
«
§M$$
*
«

of the amount bid taw at the Im price was

Blgipidt

?@tal
ABslifid tmtf

total
Aec»Dted
$

Mmtmk

$ a$,iso,ooo
if5o§»s$9*ooo

$X93$$*QQ®

Philadelphia
Clevelard
Eichrviond
Atlanta

m
9M$om
12,338,000
31,351,000

m»?88#ooo
l69m*QQQ
99m*o®®
i&,f©5#oo0

Chicago
St. Louis

Uhy

3L8,li36,00®

MfeUfcQOO

M,E3S#000
t?,288,000
10,393,000
22,&3,000
19-3,226,000
16,896,000
$99$09Q00
%$*k$$9QQQ

m9m9<m
®.9m>ow

Dallas
San Francisco
TOT4L

$2,068* 8TQ»O0O

|i,$oo,i6o,ooo

1H (

TREASURY DEPARTMENT
WASHINGTON, D.C
RELEASE MORNING NEWSPAPERS,
Tuesday, June 8, 1954.

H-501

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated June 10 and to mature September 9, 195^, which were offered on
June 3, were opened at the Federal Reserve Banks on June 7.
The details of this issue are as follows:
Total applied for - $2,068,870,000
Total accepted
- 1,500,160,000 (includes $187,307,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
Average price
below)
- 99.844/ Equivalent rate of discount approx.
Range of accepted competitive bids: 0.616$ per annum
High - 99.846 Equivalent rate of discount approx.
0.609% per annum
Low
- 99.842 Equivalent rate of discount approx.
0.625$ per annum
(86 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Boston
Mew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

TOTAL

Total
Applied for
$
25,150,000
1,508,989,000
31,335,000
28,942,000
12,338,000
31,353,000
227,788,000
16,896,000
9,450,000
26,905,000
45,316,000
104,406,000
$2,068,870,000
0O0

Total
Accepted
$
18,436,000
1,034,199,000
16,235,000
27,282,000
10,393,000
22,553,000
198,228,000
16,896,000
3,950,000
25,455,000
40,288,000
81,245,000
$1,500,160,000

1HH
- 2 Bonds. A true and devoted volunteer to the cause of public
service whose contribution to the economic welfare of the
nation and the individual security of the people will be long
and gratefully remembered. *•
The task force agency executives and advertising media
representatives present were outspoken in their pledge of con
tinu@d support for the Savings Bonds program. They included:
Eugene J. Garvy and John M. Rolfe of Foote, Cone &
BeIdlag
Thomas H. Lane of McCann-Erickson, Inc.
Fred Adams and Walter F. Mulhall of G. M. Basford
Company
F. W. Townshend of Campbe 11 ~Ba\^mjM^T^^
William Scudder of Compton Advertising, Inc
Fred Vosse of Schwimiuer and Scott, Inc.
Lewis Gifford of J. Walter Thompson Company
John R. Buckley of Hearst Magazines, Inc.
Albert E. Winger of Crdwe11-Collier Publishing
Company
Leonard W. Trester of General Outdoor Advertising
Co., Inc.
Philip Everest of Transportation Displays, Inc.
Donald M. Bernard of the Washington Post & Times
Herald
Ralph Hardy of National Association of Radio &
Television Broadcasters
Earl H. Gammons of Columbia Broadcasting System
Everett Holies of Mutual Broadcasting System
Leslie G. Arries, Jr. of DuMont Television Network
George Wheeler of National Broadcasting Company
*Iarry 0*Mealia, Jr. of OHlealia Outdoor Advertising
Co.
The Advertising Council was represented^'hyt'lt'c- president
Theodore S. Repplier, Hector Perrier, and James Lambie, Jr. of
the White House. Those attending from the Treasury Department
and Savings Bonds Division in addition to Secretary Humphrey,
Mr. Burgess and Mr. Shreve were: Arthur B. Hill, special
assistant to Mr. Shreve; Edmund J. Linehan, assistant national
director for Advertising and Promotion.
6 Go

TREASURY DEPARTMENT
WASHINGTON, D.C.

FOR IMMEDIATE RELEASE
Tuesday, June 8, 1954
Treasury Secretary Humphrey today present
Distinguished Service Award to Thomas H. Young
advertising executive, who is retiring after six years* service
as The Advertising Council*s volunteer coordinator for Savings
Bonds advertising.
Presentation was made at a luncheon at the Statler Hotel
sponsored by The Advertising Council and attended by nearly
50 executives of advertising agencies and national media who
have volunteered their services to promote the sale of Savings
Bonds. Secretary Humphrey also congratulated Robert R,
Mathews of New York, New York, vice president of the American
Express Company, who last week was announced as succeeding
Mr. Young as coordinator.
The appreciation of President Eisenhower for the volunteer
work of the advertising industry was conveyed by Sherman Adams,
The Assistant to the President, during a three hour morning
session at the Treasury Department prior to the luncheon. Appreciation to the advertising men in behalf of Secretary
Humphrey was given by Nils A. Lennartson, Assistant to the
Secretary.
Principal speakers at the morning session included
W. Randolph Burgess, Deputy to the Secretary: Dr. Neil H.
Jacoby of the Council of Economic Advisers, and Earl 0. Shreve,
National Director of the Treasury's Savings Bonds Division, who
presided.
Mr. Shreve gave an optimistic report on current sales of
Savings Bonds, stating that sales of the E and H series since
January 1 have each month broken records for 7 to 9 years.
The Distinguished Service Award was presented to Mr. Young
by the Secretary "for leadership in building security for the
people and the nation through United States Savings Bonds,"
and carried the following engraved text: "Citation to Thomas
H. Young, Advertising Council Coordinator of the United States
Savings Bonds Program from 1948 to 1954, under whose leadership
the advertising industry contributed more than three hundred
million dollars in time and space for the promotion of Savings

TREASURY DEPARTMENT
WASHINGTON, D.C.
FOR IMMEDIATE RELEASE,
Tuesday, June 8, 1954.

H-502

Treasury Secretary Humphrey today presented the Treasury's
Distinguished Service Award to'Thomas H. Young, New York, N. Y.,
advertising executive, who is retiring after six years' service
as The Advertising Council's volunteer coordinator for Savings
Bonds advertising.
Presentation was made at a luncheon at the Statler Hotel
sponsored by The Advertising Council and attended by nearly
50 executives of advertising agencies and national media who
have volunteered their services to promote the sale of Savings
Bonds. Secretary Humphrey also congratulated Robert R. Mathews
of New York, New York, vice president of the American Express
Company, who last week was announced as succeeding Mr. Young
as coordinator.
The appreciation of President Eisenhower for the volunteer
work of the advertising industry was conveyed by Sherman Adams,
The Assistant to the President, during a three hour morning
session at the Treasury Department prior to the luncheon.
Appreciation to the advertising men in behalf of Secretary
Humphrey was given by Nils A, Lennartson, Assistant to the
Secretary.
Principal speakers at the morning session included
W. Randolph Burgess, Deputy to the Secretary: Dr. Neil H. Jacoby
of the Council of Economic Advisers, and Earl 0. Shreve,
National Director of the Treasury's Savings Bonds Division, who
presided.
Mr. Shreve gave an optimistic report on current sales of
Savings Bonds, stating that sales of the E and H series since
January 1 have each month broken records for 7 to 9 years.
The Distinguished Service Award was presented to Mr. Young
by the Secretary "for leadership in building security for the
people and the nation through United States Savings Bonds,"
and carried the following engraved text: "Citation to
Thomas H. Young, Advertising Council Coordinator of the
United States Savings Bonds Program from 1948 to 1954, under whose
leadership the advertising industry contributed more than three
hundred million dollars in time and space for the promotion of
Savings Bonds. A true and devoted volunteer to the cause of public
service whose contribution to the economic welfare of the nation
and the individual security of the people will be long and
gratefully remembered.

- 2 The task force agency executives and advertising media
representatives present were outspoken in their pledge 01
continued support for the Savings Bonds program.
They
included:
Eugene J. Garvy and John M. Rolfe of Foote, Cone &
Belding
Thomas H. Lane of McCann-Erickson, Inc.
Fred Adams and Walter F. Mulhall of G. M. Basford Company
F. W. Townshend of Campbeil-Ewald, Inc.
William Scudder of Compton Advertising, Inc.
Fred Vosse of Schwimmer and Scott, Inc.
Lewis Gifford of J. Walter Thompson Company
John R. Buckley of Hearst Magazines, Inc.
Albert E. Winger of Crowell-Collier Publishing Company
Leonard W. Trester of General Outdoor Advertising Co., Inc.
Philip Everest of Transportation Displays, Inc.
Donald M. Bernard of the Washington Post & Times Herald
Ralph Hardy of National Association of Radio &
Television Broadcasters
Earl H. Gammons of Columbia Broadcasting System
Everett Holies of Mutual Broadcasting System
Leslie G. Arries, Jr. of DuMont Television Network
George Wheeler of National Broadcasting Company
Harry O'Mealia, Jr. of O'Mealia Outdoor Advertising Company
The Advertising Council was represented by its president
Theodore S. Repplier, Hector Perrier, and James Lambie, Jr. of
the White House, Those attending from the Treasury Department
and Savings Bonds Division in addition to Secretary Humphrey,
Mr. Burgess and Mr. Shreve were: Arthur B. Hill, special
assistant to Mr. Shreve; Edmund
J. Linehan, assistant national
0O0
director for Advertising and Promotion.

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
S^iesday. June j £ 1954.)

H-5Q3

The Bureau of Customs announced today preliminary fig-ores showing the
quantities of wheat and vriieat flour authorized to be entered, or withdrawn
from warehouse, for consumption under the import quotas established in the
President's proclamation of May 28, 194l* as modified by the President's
proclamation of April 13, 1942, for the 12 months commencing lay 29, 19«>4*
as follows g

Country
of
Origin

Wheat
:
:
t Established s
Imports
fcMay 29*1954 5 to
Quota
s
June 8, 19«2i
(Bushels)
(Bushels)
9

795*000
„

795,000

„

—
—
_
__

—

100
-

100
100
100

2,000

—

100

1,000
mm

100
_o

—
—

1,000

100
100
100
100

_
_
-.
—
—

Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products

•

. Established t
Imports
•
Quota
: lay 29, 1?&,
«
% to June §*J&
(Pounds)
(Pounds )
3,815,000
24,000
13,000
13*000
8,000

3,815,000

75,000

1,000

5*000

5*ooo
1,000
1,000
1,000
14*000
2*000
12,000
1*000
1,000
1,000
1,000
1*000
1,000
1,000
1*000
1,000
1*000
mm

—

_
—

mm
am

|B
•am
mm

__
_

_
*M

Mr*

MM,

m.
mm
m.
ma

„

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
ifednesday. June 9, 1954,

•<

H-503

The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour authorized to be entered, or withdrawn
from warehouse, for consumption under the import quotas established in the
President's proclamation of May 28, 1941* as modified by the president's
proclamation of April 13, 1942* for the 12 months commencing May 29, 1951*,
as follows?

Wheat
Country
of
Origin

Established :
Imports
Quota
iMay 29, 1954? to
•June 8, 1,954
\ (Bushels)
(Bushels)

Canada 795,000
China
Hungary
Hong Kong
Japan
United Kingdom
Australia
Germany
Syria
New Zealand
Chile
Netherlands
Argentina
Italy
Cuba,
France
Greece
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
fugoslavia
Norway
Canary Islands
Rumania
3uatemala
Brazil
Jnion of Soviet
Socialist Republics
Belgium

795,ooo

100
100
100

100
2,000
100
1,000
100

1,000
100
100
100
100

Iflheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established s
Imports
Quota
t May 29, 1954?
* to June J L J254
(Pounds)
(Pounds)
3,815,000
24,000
13*000
13*000
8*000

75,ooo
1,000
5*000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1*000
1*000
1*000
1,000
1,000
1,000
1,000
1,000

3,815,000

IMMEDIATE RELEASE, - 4
Wednesday, June 9, 1954,

TREASURY DEPARTMENT
Washington

H-504

Unit
:
of
: Imports as of
Quantity: May 29. 1954

Commodity

Whole milk, fresh or sour

Calendar Year

Cream ,

Calendar Year 1,500,000 Gallon 336

Butter ,

April 1, 1954- 5,000,000 Pound 51,072
July 15* 1954

Fish, fresh or frozen, filleted,
etc., cod, haddock, hake, pollock, cusk, and rosefish
White or Irish potatoes:
Certified seed
Other

3,000,000

Gallon

22*258

Calendar Year 33,950,386 Pound Quota Filled(D
12 months from 150,000,000 Pound
Sept. 15, 1953 60,000,000 Pound

96,651*662
Quota Filled

Cattle, less than 200 lbs. each,

12 months from
April 1, 1954

200,000 Head

2,395

Cattle, 700 lbs. or more each .
(other than dairy cows)

April 1, 1954June 30, 1954

120,000 Head

19*879

Walnuts

Calendar Year

5,000,000 Pound

3,682,968

12 months from
Oct. 1, 1953

7,000,000 Pound

6,983*180

12 months from
July 1, 1953

1,709,000 Pound

6,820

Almonds, shelled, blanched,
roasted, or otherwise prepared
or preserved
Peanuts, whether shelled, not
shelled, blanched, salted, prepared, or preserved (including
roasted peanuts, but not including peanut butter)
Peanut Oil

12 months from 80,000,000 Pound 1,529,820
July 1, 1953

*0ats, hulled and unhulled and un- Dec. 23, 1953hulled ground
Sept. 30, 1954
2,£00,QG0
Rye, rye flour and rye meal

Bushel

2,463,629

Mar. 31, 1954- 31,000,000 Pound Quota Filled
June 30, 1954

(1) Imports for consumption at the quota rate are limited to 16,975,194 pounds during
the first six months of the calendar year.
*

Imports through June 8, 1954* from countries other than Canada.

IMMEDIATE RELEASE,
Wednesday, June 9. 1954.

TREASURY DEPARTMENT
Washington

H-504

The Bureau of Customs announced: today preliminary figures showing Hie imports for
consumption of the coniaodities listed below within quota limitations from the beginning
of the quota periods to May 29, 1954, inclusive, as follows:

Conuiodity

Period and Quantity

Whole milk, fresh or sour .......•• Calendar Year

: Unit x
: of
: Iaports as of
Quantity: May 29. 1954

3,000,000

Gallon

22,258

Cream

Calendar Year 1,500,000 Gallon

336

Butter •

April 1, 1954- 5,000,000 Pound
July 15, 1954

51,072

Fish, fresh or frozen, filleted,
etc., cod, haddock, hake, pollock, cusk, and rosefish ......
White or Irish potatoes:
Certified seed ........
Other

Calendar Year

33,950,386 Pound

Quota Filled

12 months from 150,000,000 Pound
Sept. 15, 1953 60,000,000 Pound

96,651,662
Quota Filled

200,000 Head

2,395

Cattle, less than 200 lbs. each..

12 months from
April 1, 1954

Cattle, 700 lbs. or more each ..
(other than dairy coTis)

April 1, 1954June 30, 1954

120,000 Head

19,879

Walnuts

Calendar Year

5,000,000 Pound

3,682,968

12 months from
Oct. 1, 1953

7,000,000

Pound

6,983,180

12 months from
July 1, 1953

1,709,000

Pound

6,820

Almonds, shelled, blanched,
roasted, or otherwise prepared
or preserved
Peanuts, iqfoether shelled, not
shelled, blanched, salted, prepared, or preserved (including
roasted peanuts, but not including peanut butter)
Peanut Oil

12 months from 80,000,000 Pound
July 1, 1953

*0ats, hulled and unhulled and un- Dec. 23, 1953hulled ground
•
Sept. 30, 1954

2,£00,000

Bushel

Rye, rye flour and rye meal .....liar. 31, 1954- 31,000,000 Pound
June 30, 1954

1,529,820

2,463,629
Quota Filled

(1) Imports for consumption at the quota rate are limited tc 16,975,194 pounds during
the first six months of the calendar year.
*

Imnorts through June 8, 1954, from countries other than Canada.

9i/K

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Wedne sday * June 9, 195*1

H-505

Established Quota
Quantity

Products of the
Philippines

Buttons

850,000

Unit
of
Quantity
Gross

Imports as of
May 29, 1954
365,039

Cigars 200,000,000

Number

1,342,135

Coconut Oil 448,000,000

Pound

57,906,561

Cordage 6,000,000

Pound

1,002,899

Rice 1,040,000

Pound

(Refined
Sugars
(Unrefined
Tobacco 6,500,000

849,784
1,904,000,000

Pound
847,878,819

••
Pound

693,230

7\\ ('

TREASURY DEPARTMENT
Washington
M E D I A T E RELEASE,
3dne3day, June 9, 1954.

H-505

Products of the
Philippines

Buttons

Established Quota
Quantity

850,000

Unit
of
Quantity
Gross

Imports as of
May 29, 1954
365,039

Cigars 200,000,000

Number

1,342,135

Coconut Oil 448,000,000

Pound

57,906,561

Cordage 6,000,000

Pound

1,002,899

Rice 1,040,000

Pound

(Refined
Sugars
(Unrefined
Tobacco 6,500,000

849,784
1,904,000,000

Pound
847,878,819
Pound

693,230

-2-

COTTON WASTES
(In pounds)
5

°
«"a staple of less than 1-3/16 inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE* Provided, however, that not more than -33-1/3 percent of the quotas shall
be filled by cotton wastes-other than comber wastes made from cottons of 1-3/16 inches or more
in staple length in the case of the following countries s United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italys

°SS2IPC^?»SI?SS

mde fr m Catton hav4fl

Country of Origin
United Kingdom
Canada . . . .
France . . . .
British India. ,
Netherlands „ ,
Switzerland . e
Belgium . . , .
Japan . „ . » •
China 0 . . . .
Egypt o o o . .
LlUDa o 0 . a a

Germany „ . . •
X"Daiy

0 0 0 0

Established
TOTAL QUOTA

4*323*457
239*690
227*420
69,627
68,240
44*388
38,559
341*535
17*322
8*135
6*544
76,329
21,263
5*482,509

l/ Included in total imports* column 2.
Prepared in the Bureau of Customs.

Total Imports
Sept. 20* 1953* to
1954
501,310
239,690

Established
33-1/3% of
Total Quota
1*441*152

Imports
1^
Sept. 20* 1953*
to
June 8, 1954
501,310

75*807
54,487
16,668

22,747
14*796
12*853

16,668

6,544
23,940
7,088

25*443
7,088

23,940
,088

850,826

1*599*886

550,105

1,099

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Wednesday, June 9, 195^-*

H-506

Preliminary data on imports for consumption of cotton and cotton waste,chargeable to the quotas
established by the President's Proclamation of September 5, 1939, as amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/4"
Imports Sept. 20, 1 9 5 ^ to June 8 f 195L. inclusive
Country of Origin, Established Quota Imports Country of Origin Established Quota
Egypt and the Anglo- Honduras 752
Egyptian Sudan . . .
783,816
Peru
247,952
British India
2*003,483
China
1*370*791
Mexico". W W W
.
8*883,259
Brazil
618,723
Union of Soviet
Socialist Republics .
475,124
Argentina . . . . . . .
5,203
237
Haiti
Ecuador '..'..'..*.
9,333

49,274
34,455
6,256*331
618*723
431,975
-

Paraguay
Colombia
Iraq • • • • • • • • •
British East Africa . .
Netherlands E. Indies.
Barbados
l/Other British W. Indies
Nigeria
2/0ther British W. Africa
^Other French Africa . .
Algeria and Tunisia .

9 71
124
^
0
2,2k0
71,388
21*321
5,377
16*004
689

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
2/ Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less than 3/4" Cotton 1-1/8" or more, but less than l-ll/l6»
Imports Sept. 20. 1953, to May 29, 1 9 5 4 ^ _
Imports Feb. 1. 1954, to June 8* 1954,
Established Quota (Global) Imports Established Quota (Global) Imports
70,000,000

9,658,422

45,656,420

23,855,343

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Wednesday, June 9, 1954.

c05

Preliminary data on imports for consumption ofcotton, andv.eettoa waste chargeable to the quotas
established by. the President's- Proclamation of September 5, 1939, as-amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other i;han rough or harsh under 3/4"
Imports Sept. 20 9 195 3T to June 8. 1954. inclusive
Country of Origin, Established Quota Imports Country of Origin Established Quota
Egypt and the Anglo- Honduras ..... • 752
Egyptian Sudan . . .
783,816
Peru
. . . .
247,952
British India . . . . .
2,003,483
China
1,370,791
Mexico
8,883,259
Brazil
618,723
Union of Soviet
Socialist Republics .
475,124
Argentina . . . . . . .
5,203
Haiti
237
Ecuador
9,333

49,274
34,455
6,256,331
618,723
431,975
-

Paraguay . . . . . . .
Colombia . . . . . . .
Iraq
. .
British East Africa . .
Netherlands E. Indies.
Barbados . . . . . . .
l/0ther British W. Indies
Nigeria . . . . . .
.
2/0ther British W. Africa
j}/0ther French Africa . .
Algeria and Tunisia .

871
124
195
2,240
71,388
21,321
5,377
16,004
689
-

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
2/ Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less than 3/4" Cotton 1-1/8" or more, but less than 1—ll/l6n
Imports Sept. 20, 1953\ to May 29, 1 9 5 4 ~ _
Imports Feb. 1,. 1954. to June 8, 1954
Established Quota (Global) Imports Established Quota (Global) Imports
70,000,000 9,658,422 45,656,420 23,855,343

-£COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of leas than 1-3/16 inches in length, COMBER
WASTE, LAP WASTE, OLIVER WASTE* AND ROVING WASTE* WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUEs Provided* however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more
in staple length in the case of the following countries; United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy*

Country of Origin

Established
TOTAL QUOTA

:
Total Imports
s Established s
Imports
TJ
s Sept. 20* 1953* to s 33-1/3* of : Sept. 20* 1953,
Total Quota s to
June 8* 1954
mjwm 8 a 1??4

United Kingdom . . . . .
4*323,457
Canada . . . . . . . . .
239*690
France
227,420
British I n d i a . . . . . . .
69*627
Netherlands • .
68,240
Switzerland . . . . . . .
44*388
Belgium .
38,559
Japan . . . . . . . . . .
341*535
China . . . . . . . . . .
17,322
Egypt o
8*135
Cuba
6*544
Germany . . . . . . . . .
76,329
Italy
.....
21,263

501,310
239,690

1,441,152

75,807

54,487
16,668

—

6,544
23,940
7,088

25*443
7,088

5*482,509

850,826

1,599,886

1/ Included in total imports* column 2.
Prepared in the Bureau of Customs.

—

1,099

501,310

22,747
14,796
12*853

16,668
1,099

•»

23,940
7,083.
550,105

?J I
- 3 -

but shall bo 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 State
or by any local taxing authority. For purposes of taxation the amount of dis-

count at which Treasury bills are originally sold by the United States shall be
considered to be interest. Under Sections 42 and 117 (a) (1) of the Internal
Revenue Code, as amended by Section 115 of the Revenue Act of 1941, the amount

of discount at which bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold, redeemed or otherwise disposed of, and
such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the

price paid for such bills, whether on original issue or on subsequent purchase,
and the amount actually received either upon salu or redemption at maturity

during the taxable year for which the return is made, as ordinary gain or loss.
Revised
Treasury Department Circular No, 418, asacacsxKSaEi, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their
issue. Copies of the circular may be obtained from any Federal Reserve Bank
or Branch.

- 2 -

payment of 2 percent of the face amount of Treasury bills applied for, unless

the tenders are accompanied by an express guaranty of payment by an incorporate
bank or trust company.
Immediately after the closing hoiir, tenders will be opened at the Federal
Reserve Banks and Branches, f ollowing which public announcement will be made
by the Treasury Department of the amount and price range of accepted bids.

Those submitting tenders will be advised of the acceptance or rejection thereof
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, in whole; or in part, and has action in any such respect
shall be final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be accepted
in full 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 17, 1954

}

in cash or

other immediately available funds or in a like face amount of Treasury bills
maturing June 17, 1954 . Cash and exchange tenders will receive equal
\" J

treatment. Cash adjustments will be made for differences between the par
value of maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or gain from
the sale or other disposition of the bills, shall not have any exemption,
as such, and loss from the sale or other disposition of Treasury bills shall
not havo any special treatment, as sv.ch, un/ler 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,

Pi,-!
imHHiiiitiiM

TREASURY DEPAETLIENT
y^ashington

/Ar> 7

Thursday. June 10, 195l(.
The Treasury Department, by this public notice, invites tenders for
§1.-500.000.000 , or thereabouts, of 91 -day Treasury bills, for cash and

m—

"H*~

in exchange for Treasury bills maturing

June 17* 1954

, in the amount of

PP
01,501,048,000
* to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series ifill be
dated Jane 17, 1954 , and will mature September 16, 1954, when the face
^

amount will be payable v.athout interest. They will be issued in bearer form onl
and in denominations of §1,000, $5*0/00, ^10,000, $100,000, $500,000, and
$1,000,000 (maturity value).
Tenders wiH be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o'clock p.m., Eastem/gyg^ggg: time. Monday, June 14, 1954

Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of §1,300, and in the case of competitive tenders

the price offered must be expressed on the basis of 100, with not more than thre
decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which will b
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized
dealers in inv-stm^nt securities. Tenders from others must be accompanied by

TREASURY DEPARTMENT
WASHINGTON, D.C

RELEASE MORNING NEWSPAPERS,
Thursday, June 10, 1954.

H-507

The Treasury Department, by this public notice, invites tenders
for $1,500,000,000, or thereabouts, of 93-day Treasury bills, for
cash and in exchange for Treasury bills maturing June 17* 1954,
in the amount of $1,501,048,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated June 17* 1954,
and will mature September 16, 1954, when the face amount will be
payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o^lock p.m., Eastern Daylight Saving time,
Monday* June 14* 1954.
Tenders will 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
special envelopes which will be supplied by Federal Reserve Banks or
.Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price
range of accepted bids. Those submitting tenders will be advised of
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders
in whole or in part, and.his action in any such respect shall be
final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted

- 2 competitive bids. Settlement for accepted tenders In accordance
with the bids must be made or completed at the Federal Reserve Bank
on June if, 1^4,
i n c a s n o r other immediately available funds
or in a like face amount of Treasury bills maturing j u n e 17 1954
Cash and exchange tenders will receive equal treatment. Cash
"
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price of the new
bill3.

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. Under Sections 42 and 117 (a) (l) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the
amount of discount at which bills Issued hereunder are sold shall not
be considered to accrue until such bills shall be sold, redeemed or
otherwise disposed of, and such bills are excluded from consideration
as capital assets. Accordingly, the owner of Treasury bills (other
than life Insurance companies) Issued hereunder need Include in his
income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase,
and the amount actually 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. 4l8, revised, and this
notice, prescribe the terms of the
Treasury bills and govern the
0O0
conditions of their Issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

CORRECTED COPY

S T A T U T O R Y - D E B T LIMITATION

AS OF m.3.l,...19.5k..

June 10, 1954

1 11 21

^°iSefC°nd Libe«y rBo^.Act,

of M,^? ?
as amended provides that the face amount of obligations issued under authorit
oi that Act, and the face amount of obligations guaranteed as to principal and.interest by the United States (except such guaranteed obligations as may be held by the Secretary of the Treasury), "shall not exceed in the aggregate $275,000,000,000
(Act of June 26, 1946;.U.S.C, title 31, sec. 757b), outstanding at any one time. For purposes of this section the current redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holder
shall, be considered as its face amount."
The following table shows the face amount of obligations outstanding and the face amount which can still be issued under
this limitation;:
Total face amount that may be outstanding at any one time
$ 2 7 5 * 0 0 0 ,000 ,000
Outstanding
Obligations.issued under Second Liberty.Bond Act, as amended
Interest r bearing:
Treas ury bills
$22,019,266,000
Certificates of indebtedness
1 8 , 5 7 6 , 790 ,000
Treasury notes
37.266.226.600
BondsTreasury

$ 77,862,282,600

8 0 , 709 , 981, 700

Savings (current redemp. value)
Depositary

58,025,444,800
4 0 6 , 714,500

Investment series

12,812,380,000

Special Funds Certificates of indebtedness
Treasury notes
Z Z
Total interest-bearing
Matured, interest-ceased

^
Q
27»12o,OO2,000
14,238,338,900

151,954,521,000

41,367,000,900
271,183 , 804, 500

7£.„

2 7 5 » 575» 3 3 5

Bearing no.interest:
United States servings stamps,, v _
E x c e s s profits tax refund bonds
Special notes of the United States:
Internat'l Monetary F u n d series _
Total

50»385»488
1,261,368
1,411,000,000

II"

1,462,646,856
2 7 2 , 922 , 026 , 691

Guaranteed obligations (not held b y Treasury):
Interest-bearing:
Debentures: F . H . A .
Matured, interest-ceased

79,418,236
1,035,050

80,453,286

Grand total outstanding
Balance face a m o u n t of obligations issuable under above authority

2 7 3 , 0 0 2 , ^ 7 9 ,977
1 , 9 9 7 , 520 ,023

Reconcilement with Statement of the Public Debt "S-JjT 31, 195^
(Daily Statement of the United States Treasury,

(Daie)
Ma^T 2 8 » l $ 5 z
"(Daie)

Outstanding Total gross public debt
Guaranteed obligations not o w n e d b y the Treasury
Total gross public debt and guaranteed obligations
D e d u c t - other outstanding public debt obligations not.subject to debt limitation

2 7 3 » 4 ? 4 , 7 8 1 ,l47
00,^53*200
273,555,234,433
5 5 2 , / lr**^QO
273,002,479,977

H-508

CORRECTED COPY
•

STATUTORY DEBT L.M.TAT.ON

AS OF m.3±L.J35>±

June

. b

Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued undera^utTTorify"
of that Act, and the face amount of obligations guaranteed as to principal and interest by the United States (except such guaranteed obligations as may be held by the Secretary of the Treasury), "shall not exceed in the aggregate $275,000,000,000
(Act of June 26, 1946; U.S.C., title 31, sec. 757b), outstanding at any one time. For purposes of this section the current redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holder
shall be considered as its face amount."
The following table shows the face amount of obligations outstanding and the face amount which can still be issued under
this limitation:
Total face amount that may be outstanding at any one time
$275,000,000,000
Outstanding
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
,,
Treas ury bills
$22, 019 , 266 , 000
Certificates of indebtedness
18,576,790,000
Treasury notes
Z'ZZ
37.266.226.600 . $ 77,862,282,600
Bonds Treasury

80 , 709, 981, 700

Savings (current redemp. value)

5^,025,444,800

Depos itary
Investment series

406, 7l4,500
1 2 , 8 1 2 , 380 , 000

Special Funds Certificates of indebtedness
Treasury notes
Total interest-bearing

Z...

Matured, interest-ceased

151,954,521,000

_
ss^ nr\r\
oa
27»12o , OO2,000
14.238,338,900

41,367,000,900
2 7 1 » 1 8 3 ,804» 5 0 0

2j 5 , 5 7 5 , 3 3 5

Bearing no interest:
United States shavings stamps^.,_.,_
Excess profits tax refund bonds _
Special notes of the United States:
Internat'l Monetary Fund series .

50,385,^88
1,261,368
1,411,000,000

1,462,646,856

Total

272,922,026,691

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A.
Matured, interest-ceased

_.
„

79,418,236
1,035,050

80,453,286

Grand total outstanding

273 , 002, ^79,977

Balance face amount of obligations issuable under above authority

1 , 997 > 520 , 023

Reconcilement with Statement of the Public Debt ...?!^y....31.»....195'7
(Daily Statement of the United States Treasury, M a y %Q
Outstanding Total gross public debt

l^ffi
(Date)

„

Guaranteed obligations not owned by the Treasury
Total gross public debt and guaranteed obligations
Deduct- other outstanding public debt obligations not subject to debt limitation

)

2 7 3 , 4 7 4 , 7 8 1 ,l47
8 0 ,^53 ,286
273*555,234,433
552,75^,^56
273.002,479,977

H-508

7\ i

This proposal lias beeca discussed fully with the
President a?ul Cabinet members and lias their enthusiastic
support*
£&rly emietstent of the bill is re^oisaeiiied so that this
protection can be given families of employees as soon as
possible*

On the average* about '1,000 Federal employees die

each »onth»*ift If enactment is delayed until the next
session of Con-rress nany families will lose the, insurance
benefits this plan q£±l provide*

coverage tiould be continued at present premium rates*
To take advantage of this arra*aa*Mt* the msweiftUoa .wait
have to terminate all of its life Insurant® agrewcat* and
turn over assets sufficient, .11 possible* to eover .the liabilities involved*
If this M i l passe** there will p ^ ^ l O y b e shout
1,750,000 employees take advantage of the pregran if the
in industry.
acceptance is as general as isixiiiiiM^iic The mount of
insurance Issued rill be in the nei#borhood of ? billion
dollars i and the annual pradua collections will be In the
neighborhood of 70 minionfoliar*,-of nhieh about $22,?gO,OQ0
will be the OovermanV* eostrihrtion* these are large
siaonats, and it w u l S fiesn desirable to establish an Advisory
Council on Hroup Insurance to advise with the Commission on
the pro^pm. The bill provides for such a Council consisting
of the Secretary of the treasury as Qertnra* the Secretary
of Labor, and the Mrect or of the Bureau of the Budget* In
addition, the Conniaaion would report eosawllf to Congress
upon the operation of this Act*
The bill provides that the insurance and contribution
provisions would be effective efaast directed hf the Civil
Service Cos&dseion* following its purchase of the required
policies and the completion of administrative arrangements
necessary to put the program Into effect*

• 8 This m o u n t would bc^stAiUmUajto th© states/- ^ f**f»e&taL£r
the geographical distribution of the insured federal employees.
Thus each state would gain tax income in equitable proportion.
•• y'-

'- -y

i $&*»

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 haws grown up over
the years a number of non-profit eaployee beneficial associations.
We have record of 17 such association* covering 135,000 employees,
kafcdthgRgxix** xyfahahlyxasutax They exist simply for the purpose
of providing Federal employees with small amounts of group life
insurance. They have no official connection «tth the Federal
Government, although their officers are usually Federal employees.
fbe preaiuas charged under these plans are higher than under the
>

-Osy- ,-u

proposed group life plan. In sons cases the current preaiuss
would probably have to be increased in the future to avoid
financial difficulties. This wtmld be mrtieularly true if new
and younger menfeers art not recruited.
Because of the advantages of lower pfeMu£s^eitPsiay thus
be difficult fof/ilese beneficial association plans to continue.
The bill accordingly provides that in fairness to former employee*
not eligible to participate in the new program, but i&osc insurance
protection might otherwise be lost because of it, their present

9/u
«* v —
rates would be mde 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 preraiua income over mortality and ether
claim charges and expenses would be held as an interest-bearing
contingency reserve, for use only to meet future charges under
the policy or for eventual return to the Treasury.
It is contemplated that expenses cf the plan,* including the
administrative
< ^
cost of the/M**#**i office of the insurance companies,, the
administrative expense and risk charges of the individual companies j vyill be less than 2 forwent of the premiums. There will
-l underwriting commissions ., •-**

interesting

be a e / m g S M k m * include! in the expenses. It is we&mmglsg
to note that the national Association of life fMerwriters national
xJUyy
Couneil unanimously endorsed tiw nropesal of grout* life ln**raa**
underwriting \ ,^
%
for Federal employees despite the fact that ne/conmssicms would
be paid.
Another item
^esctxpl^i in the cost mcuxMxfeexemgx&tam which should be paris
ticularly drawn to your attention ** the 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 million.

?•/!

Hie bill authori^ea the Commission to contract directly
wife one or mm

life insurance companies which are licensed to

transact business in all states ami the Metric* etf e*lus*t* and
have im,fCMt at least 1 percent of tetai employee mm»

life

insurance* .tbent eight (S) companies meet this te*t at present*
The company or companies selected would 1$,,required to reinsure portions of the. total .Insurance with other ^companies
electlog to participate in the underwriting of the risk. The .
reinsurance would be apportioned according to a forjaula which
' V
ew^p*i!snspp*a

- j^^m^ w *SP

ainw«wiw

••#sw(swaMMMSfrmpym

TpP^^JBnmt^^^e'j^pNiw^wMP

.ww-

se&'*wpa»Jwfc^iFSF

^jwewsswe* ^*'

wt* .ate -r A P •«? WIF((W ^p"^aa ^armse. -. msmw

their total group life insurance talamw JftM the larger fern*
fanie*. All Campania* including those vyvicb. manage.the plan a m
would participate in accordance with

Accordingly, the w^eewritiflf;.eC the fveffteft $m

weuld.be

spread among all the insurance companies with a reasonable mini*
mm of experience in the employee* giwt? life insurance field
desiring to participate, rath^ than ..be concentrated^ in one, or
only a few companies.
m e premfcp rates to be change! by insurance companies would
be determined hy the Civil Service Cem*i**loa on 8 basis consistent
with the lowest rates charged large employers for group life and
group accidental death and aiaNribefmewt insurance. MJustment cf

?•/•/

- 5 ft*

available to private employers, ft is ^poiieltltat Ithe liMrance
be cooperatively underwritten through the facilities of a ikrge
group of life insurance companies having "experience In employe*
group life insurance benefits. These companies would ^establish
a single administrative office to assure the utmost e c k i ^ i i 1 *
the operation of the plan.®

" hmfim^yy

y f*»

The bill provides that any life Insurance company wit& group
life insurance in force on employes of at la^st SS different
employers can particlpmte In the u^fe^writi^ of the risi. fell
». i **,

over seventy-five (75) companies meet this test, and nation-wide
thus

-**

mma.

Compaq representation in the program w#ld/be possible. * ^
•*-ai
It is not practical to make direct separate contracts with
(

each such company* Among other reasons, federal employees are
located in all sections of the country, white many of "Ihe life
insurance companies are not licensed to transact business in
every state and the District of CeltaMa. ^neiy the lipproaeh
used in the bill is similar to that often used % the bovertaiiit,
i&ereby a large contract of purchase is made with one or more
prime contractors who in turn would sub-oentraot^to many other
concerns. A similar procedure is followed by a number of other
leige employers who obtain insurance of various kinds through a
reinsurance arrangement among several insurance companies.

premium payments to insurance companies and for expenses of the
Civil Service Commission in administering the Act.
If the employee should leavs 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
company or companies 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 neeessarj

that the individual be in good health to obtain this insurance
at the usual rates charged by the insurance company at the tiise
of separation from the Federal service. The insurance company
would be prohibited from charging an extra premium because the
separated employee was a poor insurance risk.
Another most valuable feature 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 premiums on his part whatsoever. The
full amount of insurance continues "in effect until ne attains
the age of 85, at which time it starts to decrease as previously
described.
The President's message stated that:
"In order to have advantages under this plan that are norma

the employee would have dismemberment insurance In accordance
with schedules to be laid down by the Commission,

formally this

kind of contract provides that the face amount of the policy is
payable for loss of two wes&ers (such as two legs or two arms)
and one-half the face amount of the policy is payable for loss
of one member.
As his share of the cost of all three types of insurancelife, accidental death, and dismemberment—an amount would be
withheld from each salary payment at a rate not exceeding 25 tents
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 example,
$26.00 a year for the $4,000 salaried employee.

This represents

about the average premium now being paid hj employees in private
industry for similar insurance. The employing agency would contribute from its salary appropriations an amount not exceeding
one-half the amount withheld from the employee. The experience
in industry would indicate that net costs, over the iQistg run, can
be reduced below those figure*.

It is necessary, however, that a
for contingencies and.
ssntingesey reserve be built up during the eerljr years/to meet
future
resulting from the coverage of
the/increase in death benefits,/** more people hasmexsmTOref* afta
retirement.
fhe contributions by employees and employers would be deposit!
to a special fund in the Treasury, which would be available for

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 from his pay to provide this insurance. He can also drop
out of the plan on any pay date in the future by formal notice.
learly all civilian employees of the three branches of the
Government, and of the government of the District of Columbia,
would be eligible for insurance coverage. This includes members
of Congress, judges, and elected as well as appointed officials
of the executive branch. Non-citisen employees stationed overseas would be excluded.

The Civil Service Commission could by

regulation, after consultation with the agency head concerned,
exclude employees whose coverage would be administratively
impracticable.
The amount of life insurance for which an employee would be
eligible would equal annual compensation raised to the next higher
subject to a maximum of $20,000.
multiple of $1,000,/ Ho choice as to amount would be permitted.
Following more recent industrial practice, the amount of insurance
would be reduced by 2 percent per month after the employee attained
age 65, subject to a minimum of not less than 25 percent of the
original amount.
In addition, if the employee should die by accidental means,
double the face amount of insurance would be payable. Furthermore,

Statement of liar ion B. Folsom
Under Secretary of the Treasury
Before the
Senate Committee on Post Office and Civil Service
Thursday, June 10, 1 ^ 1
~ & ^ >,

3>^°1

lb>. Chairman, I am glad to have this opportunity to discuss
insurance
this group life'proposal with you. The purpose of this bill is
to offer to Federal employees the same opportunity teb^y life
insurance on a low-cost basis that massy millions in private
industry have had for a number of jmmrt..
The principal reasons why group life insurance has proved
to be so popular with employee* in industry are: its low cost,
the sharing of the cost hj 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 fluctuation, the premium doesn't increase from year
to year as it would In case of an Individual term policy.
Another factor, which reduces the cost, is the low administrative
expense In £&» handling the insurance on a large group basis.
Tim overwhelming laajerity of group life insurance plans
similar to that proposed in the bill are on a contributory basis,
the cost being shared by the employees and the employer.
This plan is purely voluntary.

lm order to save time and

expense, the bill provides that the protection would be automatically granted to each employee unless he signed a paper indicating
\A-SO*\

TREASURY DEPARTMENT
Washington

Statement of Marion B. Folsom, Under Secretary
of the Treasury before the Jenate Committee on
Post Office and Civil Service on S.3507,
Thursday, June 10, 195^.

Mr. Chairman, 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 to buy
life insurance on a low-cost basis that many millions 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 availabilitjr
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 fluctuation, the premium doesn't increase from year
to year as it would
in case of an individual term policy.
Another factor, which reduces the cost, is the low administrative
expense in handling the insurance on a large group basis.
The overwhelming majority of group life insurance plans
similar to that proposed in the bill are on a contributory basis,
the cost being shared by the employees and the employer.
This plan is purely voluntary. In order to save time and
expense, the bill provides that the protection would be automatically granted to each employee 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 from his pay to provide this insurance. He can also drop
out of the plan on any pay date in the future by formal notice.
Nearly all civilian employees of the three branches of the
Government, and of the government of the District of Columbia,
would be eligible for insurance coverage. This includes members
of Congress, judges, and elected as well as appointed officials
of the executive branch. Non-citizen employees stationed overseas would be excluded. The Civil Service Commission could by
regulation, after consultation with the agency head concerned,
exclude employees whose coverage would be administratively
H-509
impracticable.

- 2 -

9.1! J

The amount of life insurance for which an employee would be
eligible would equal annual compensation raised to the next higher
multiple of $1,000, subject to a maximum of $20,000. No choice
as to amount would be permitted. Following more recent industrial
practice, the amount of insurance would be reduced by 2 percent
per month after the employee attained age 65, subject to a
minimum of not less than 25 percent of the original amount.
In addition, if the employee should die by accidental means,
double the face amount of insurance would be payable. Furthermore, the employee would have dismemberment insurance in accordance
with schedules to be laid down by the Commission. Normally this
kind of contract provides that the face amount of the policy is
payable for loss of two members (such as two legs or two a r m s )
and one-half the face amount of the policy is payable for loss
of one member.
As his share of the cost of all three types of insurance—
life, accidental death, and dismemberment--an amount would be
withheld from each salary payment 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 example,
$26.00 a year for the $4,000 salaried employee. This represents
about the average premium now being paid by employees in private
industry for similar insurance. The employing agency would
contribute from its salary appropriations an amount not exceeding
one-half the amount withheld from the employee. The experience
in industry would indicate that net costs, over the long r u n , can
be reduced below those figures. It is necessary, however, that
a reserve be built up during the early years for contingencies
and to meet the future increase in death benefits, resulting
from the coverage of more people, after retirement.
The contributions by employees and employers would be deposited
to a special fund in the Treasury, which would be available for
premium payments to insurance companies and for expenses of the
Civil Service Commission in administering the A c t .
If the employee 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 p r i v i l e g e — h e has the right to purchase from the
company or companies 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 from charging an extra premium because the
separated employee was a poor insurance risk.

yyu

- 3Another most valuable feature 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 premiums on his part whatsoever. The
full amount of insurance continues in effect until he attains
the age of 65, at which time it starts to decrease as previously
described.
The President's message stated that:
"In order to have advantages under this plan that
are normally available 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 companies would
establish a single administrative office to assure the
utmost economy in the operation of the plan."
The bill provides that any life insurance company with group
life insurance in force on employees of at least 25 different
employers can participate in the underwriting of the risk. Well
over seventy-five (75) companies meet this test, and nation-wide
company representation in the program would thus be possible.
It is not practical to make direct separate contracts with
each such company. Among other reasons, federal employees 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 similar to that often used by the Government,
whereby a large contract of purchase is made with one or more
prime contractors who in turn would sub-contract to many other
concerns. A similar procedure is followed by a number of other
large employers who obtain insurance of various kinds through
a reinsurance arrangement among several insurance companies.
The bill authorizes the Commission to contract directly
with one or more life insurance companies which are licensed to
transact business in all states and the District of Columbia and
have in force at least 1 percent of total employee group life
insurance. About eight (8) companies meet this test at present.
The company or companies selected would be required to reinsure portions of the total insurance with other companies
electing to participate in the underwriting of the risk. The
reinsurance would be apportioned according to a formula which
would give the smaller companies a larger share in relation to
their total group life insurance business than the larger
companies. All companies including those which manage the plan
would participate in accordance with the formula.

9/H
Accordingly, the underwriting of the proposed plan would be
spread among all the insurance companies with a reasonable
minimum of experience in the employees group life insurance field
desiring to participate, rather than be concentrated in one, or
only a few companies.
The premium rates to be charged by insurance companies would
be determined by the Civil Service Commission on a basis consistent
with the lowest rates charged large employers for group life and
group accidental death and dismemberment 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 premium income over mortality and otherclaim charges and expenses would be held as an interest-bearing
contingency reserve, for use only to meet future charges under
the policy or for eventual return to the Treasury.
It is contemplated that expenses of the plan, including the
cost of the administrative office of the insurance companies and
the administrative expense and risk charges of the individual
companies, 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 the 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 million. This
amount would be paid to the states by the companies 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 number of non-profit employee beneficial associations.
We have record of 17 such associations covering 135,000 employees.
They exist simply for the purpose of providing Federal employees
with small amounts of group life insurance. They have no official
connection with the Federal Government, although their officers
are usually Federal employees. The premiums charged under these
plans are higher than under the proposed group life &lan. In
some cases the current premiums 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.

- 5-

*>J(

Because of the advantages of lower premiums of the proposed
plan, it may 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
arrangement, the association would have to terminate all of its
life insurance agreements and turn over assets sufficient, if
possible, to cover the liabilities involved.
If this bill passes, there will probably be about
1,750,000 employees take 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 million dollars, of which about $22,750,000 will be the
Government's contribution. These are large amounts, and it
would seem desirable to establish an Advisory Council on Group
Insurance to advise with the Commission on the program. 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 Commission
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
Commission, following its purchase of the required policies and
the completion of administrative arrangements necessary to put
the program into effect.
This proposal has been discussed fully with the President
and Cabinet members and has their enthusiastic support.
Early enactment of the bill is recommended so that this
protection can be given families of employees as soon as
possible. On the average, about 1,000 Federal employees die
each month. If enactment is delayed until the next session of
Congress many families will lose the insurance benefits this
plan would provide.
0O0

9 <y

-_ /

(*X^Cy / LyC^^y^
i Kw. >•] J

The Treasury Department today made public a
repert of monetary gold transactions with foreign governments and central banks for the first quarter of 19$h*
The net g«ld outflow from the United States in this period
was $63 million, the smallest volume of net sales for any
quarter since the third quarter of 193>2.
The «utward gold movement from the United States
continued te be low in the second quarter of 19$k* U0S0 net
purchases of $kk million in April were offset by net sales
of $U8 million in May. Data for these two months are not
yet available for publication on a country-by-country basis.
A table showing net transactions, by country,
for the first quarter of 19$h »nd calendar 1953 is
attached.

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Thursday, June 10, 1954.

H-510

The Treasury department today made public a
report of monetary gold transactions with foreign governments and central banks for the first quarter of 19$k*
The net gold outflow from the United States in this period
was $63 million, the smallest volume of net sales for any
quarter since the third quarter of 195>2.
The outward gold movement from the United States
continued to be low in the second quarter of 19?4. U.S. net
purchases of $44 million in April were offset by net sales
of ^1|8 million in May. Data for these two months are not
yet available for publication on a country-by-> country basis,
A table showing net transactions, by country,
for the first quarter of 1954 and calendar 19^3 is
attached.

UNITED STATES GOLD TRANSACTIONS T7ITH FOREIGN COUNTRIES
January 1, 1954 - March 31, 1954
(in millions of dollars at $35 per ounce)
Negative figures represent net sales by the
United States 5 positive figures, net purchases
First Quarter
1954

Country
Argentina
Belgium .............................
Belgian Congo •••••
Bolivia
.****.*
Colombia
Denmark
Germany
Lebanon
Mexico

......................
•
•

....

Calendar Year
1953
>»"^po4 • 8

&13.2
-40.0
-8.8
- r.
t

-84,9
-9.9
-3.5
-13.2
-130.0
-4.6
-28.1

Netherlands ......................... Norway
.......•.•,.•.•
Portugal
-20.0
Sweden ..............................
-

-65.0
-5.0
-59.9
-20.0

Switzerland *........................
Switzerland-Bank for
International Settlements•........•
-7.9
Syria
•
Turkey
^

-65.0

United Kingdom
Uruguay
Vatican City
All Other

-5.0
5,5
-.2

Total -$63.0

Figures may not add to totals because of rounding.

-94.3
-.5
-3.3
-480.0
-15.0
4.0
-1.5
-yl,l64.2

^A-Sll

RELEASE MORNING NEWSPAPERS,
Tuesday, June 1$, 1954.

The Treasury Department announced last evening that the tenders for $1,500,000,000,

or thereabouts, of 91-day Treasury bills to be dated June 17 and to nature Septemb
1954, which were offered on June 10, were opened at the Federal Reserve Banks on
June 14.
The details of this issue are as follows:
Total applied for - $2,225,153,000
Total accepted
- 1,500,303,000 (includes $203,913,000 entered on a
noncompetitive basis and accepted in
full st the average price shown below)
Average price
- 99.840 Equivalent rate of discount approx. 0.6|j£ per annum
Range of accepted competitive bids:
- 99-8I50 IqniTalent rate of discount approx. 0.593$ P®*" annum
- 99.837
*
a
a
m.
a
Qm$&%
"
•

High
Low

(31$ pereent of the amount bid for st the low price was accepted)
Federal Reserve
District

Total
Applied for

Total
Aeeepted

Boston
Hew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

f
27,103,,000
1,585,0^ ,000
24,610,,000
46,241:,000
14,102,,000
34,987,,000
2tl,9S3i,000
13,626,,000
10,710,,000
54,664.,000
55,717.,000
136,656,,000

Total

$2,225,453,000

22,103,000
942,754,000
9,610,000
46,241,000
12,102,000
34,587,000
187,933,000
13,626,000
10,110,000
49,664,000
54,417,000
117,156,000
#1,500,303,000

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, June 15, 1954.

H-5H

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated June 1'7 and to mature September 16, 1954, which were offered
on June 10, were opened at the Federal Reserve Banks on June 14.
The details of this issue are as follows:
Total applied for - $2,225,453,000
Total accepted
- 1,500,303,000 (includes $203,913,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.840 Equivalent rate of discount approx.
0.633$ per annum
Range of accepted competitive bids:
High - 99.850 Equivalent rate of discount approx.
0.593$ per annum
Low
- 99.837 Equivalent rate of discount approx.
0.645$ per annum
(35 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
___
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco TOTAL

Total
Applied for
$ 27,103,000
1,585,054,000
24,610,000
46,241,000
14,102,000
34,987,000
221,983,000
13,626,000
10,710,000
54,664,000
55,717,000
136,656,000
$2,225,453,000
0O0

Total
Accepted
$

22,103,000
942,754,000
9,610,000
46,241,000
12,102,000
34,587,000
187,933,000
13,626,000
10,110,000
49,664,000
54,417,000
$1,500,303,000
117,156,000

9 i i
June 2, 1954

•yy^MMM

IX): MS. BA.ir-.Lf8

The following transactions were made in direct and guaranteed securities
of the Government for Treasury investments and other accounts during the
month of 'ay, 19§4i
Purchases — $3,799,000,00
Sales -— ~_ 1,037.800,00
r\JmmS\

/^j\^,^v

^rT<^

S523SSS5SSS3ETE2SS5E

Charles 3U Brannan
(•**>

Chief, Investments Branch
Division of Deposits & Investments

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Thuroclay, Muy 13","'

f 2U-—

//ay
.
During the month of -Aprew., 1954,
market transactions in direct and guaranteed
securities of the government for Treasury
investment and other accounts resulted in

net

by the Treasury Department of

0O0

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Tuesday, June 15, 1954.

H-512

During the month of May, 1954, market
transactions in direct and guaranteed
securities of the government for Treasury
investment and other accounts resulted in
net purchases by the Treasury Department of
$2,761,200,

oOo

y -»
<PhP Division of Diobursemcffct-epcratod the large atfli pihnrFiinc fiystam in the world thrott^i-ltrs olii«oc in>
4ffafih1 nrcfton find twenty-m* Y rag i 11 m 1 i. r r 11' i" l. In • 11
"Qnt9FTE thrmichgiiit thr TTnltrl ntntrn, tin Vr rrltinrioa rind thr
~Pha.3iiprinp<?,'—£n*~13R34iJ^tt-4ai_i£s-^

~ftm©£Ae»s—fehe-^

^dayjt&a^tt- hao received $50 blllluil I n collections for the
^-£P^exnjB£R&-aftd^&siifi4^
^und©*»--Mr r-JBana;
jidings^eyafrioii undtfr Mr. Banning^ leadership
An outstanding^gpuiatiflii
was the organization S&SSHBEBSBnP of aL program
program in
in 1950
iypu for
lor
the issuance of some 15,000,000 dividend checks in five months.
to veteran policy holders of National Service Life Insurance.
Mr. Banning entered the Government service in 1918 in
the Ordnance Disbursing Office of the War Department.

In the

Treasury he has served as Chief Accountant, Assistant
Commissioner of Accounts and Deputy Director of the Fiscal
Branch of the Procurement Division as well as Chief Disbursing
Officer.
During World War II he was a Lieutenant Colonel in the
United States Army and for a time served as Chief Accountant
for the Allied Commission in Italy^
Mr. Banning was born in Mt. Vernon, Ohio, August 17, 1892.
He attended Oberlin College in Ohio, Georgetown University
Law School and Pace Institute both in Washington.

In addition 4>

fit ^00%

law degree he hulifu ID ajpsajpete** a Certified PubJic
Accountant.

jk A*yjy &g

„•

**- 3^2-

>*Ut^*>wfc*L
The ^s^sslfa^iubuiulilg^aftraHsi1 iJffFelrts the operations
of the Treasury's Division of Disbursement and its 26
regional disbursing offices in the United States,
Puerto Rico, Alaska, Honolulu and the Philippines.

supervises the disbursing activities of 1700 assistant
disbursing officers and agent cashiers in the United States
and foreign countries.
The Division of Disbursement makes payments for all agencies of the executive
branch of the Government except the military, the Post Office, the U* S« Marshals .
and a few Government corporations. The volume of payments made by the Division
annually t
more than 2CO million items,
•along aiwm^uiiillLiLL'O Uf in
excess of $40/billiori.

m^<^^^^j>c^^<M^^y^

^^yC^eM-^c^^^^.^MM-r^

}Q^ycyy-/

yy^

y4y
- 2Mr. Banning1s constant search for management improvements
has enabled the Division of Disbursement to realize substantial
and tangible savings which have been returned each year to
the Treasury.

Because of his far-reaching, intuitive under-

standing and his pursuance of management and operating
principles which have brought forth these savings,
Mr. Banning has consistently been commended by the Congress
during appropriation hearings for his devotion to his
assignment," the Treasury Awards Committee said in recommending
Mr. Banning for the Exceptional Civilian Service Certificate.

c^yt<^-4.,^st y 4&-~**f j (yjy-<&^yy*

y*J j '/*

Paul D. Banning, s*¥^S3gS? Chief Disbursing Officer of
the Treasury Department/ who will retire on June 30 after
34 years of Government service, today received the Treasury's
^certificate for Exceptional Civilian Service.
Presentation of the award, including a certificate,
gold medal and lapel button, was made to Mr. Banning by
W. Randolph Burgess, Deputy to Secretary.Humphrey, in a
ceremony at the USO quarters adjoining the Treasury Annex.
The award was made "for the development and improvement of
methods and procedures which have accomplished extroardinary
results for the Treasury Department."
Accomplishments of the Treasury's Division of Disburseraem
under Mr. Banning's direction included decreasing the average
unit cost of issuing Government checks from 6-3/8 cents in
1947 to 5-2/5 cents in 1953. This reduction was made despite
higher salaries and increased cost of equipment and supplies.
The Division wrote 27 million more cheeks in 1953 than in
1947 with approximately 1,000 fewer employees.
In the fttfiHTip pffrind QF his service^as Chief Disbursing
Officer, Mr. Banning disbursed $203 billion in one and a half
billion checks.

TREASURY DEPARTMENT
W A S H I N G T O N , D.C.

IMMEDIATE RELEASE
Tuesday, June 1$3 19$k
Paul D. Banning, Chief Disbursing Officer of the Treasury Department who
will retire on June 30 after 34 years of Government service, today received the
Treasury's Certificate for Exceptional Civilian Service.,
Presentation of the award, including a certificate, gold medal and lapel
button, was made to Mr, Banning by W« Randolph Burgess, Deputy to Secretary
Humphrey, in a ceremony at the USO quarters adjoining the Treasury Annex© The
award was made "for the development and improvement of methods and procedures
which have accomplished extraordinary results for the Treasury Department."
Accomplishments of the Treasury«s Division of Disbursement under Mr. Banning!s
direction included decreasing the average unit cost of issuing Government checks
from 6-3/8 cents in 1947 to $-2/$ cents in 1953o This reduction was made despite
higher salaries and increased cost of equipment and supplieso The division wrote
27 million more checks in 19$3 than in 1947 with approximately 1^000 fewer em-*
ployees0
In his service since 1947 as Chief Disbursing Officer, Mra Banning disbursed
$203 billion in one and a half billion checks*
"Mr, Banning's constant search for management improvements has enabled the
Division of Disbursement to realize substantial and tangible savings which have
been returned each year to the Treasury. Because of his far-reaching, intuitive
understanding and his pursuance of management and operating principles which have
brought forth these savings, Mr. Banning has consistently been commended by the
Congress during appropriation hearings for his devotion to his assignment,» the
Treasury Awards Committee said in recommending Mr. Banning for the Exceptional
Civilian Service Certificate.
The official honored today directs the operations of the Treasury1s Division
of Disbursement and its 26 regional disbursing offices in the United States,
Puerto Rico, Alaska, Honolulu and the Philippines0 He supervises the disbursing
activities of 1,700 assistant disbursing officers and agent cashiers in the
United States and foreign countries.
The Division of Disbursement makes payments for all agencies of the executive
branch of the Government except the military, the Post Office, the U. S. Marshals
and a few Government corporations. The volume of payments made by the Division
annually is more than 200 million items, totaling in excess of $40 billion. The
items include payments from social security and other trust funds and transfers
of funds between Government departments.

9aa
•9 2 •»

An outstanding example of Mr. Banning1 s leadership was the organization of
a program in 19^0 for the issuance of some 1$9000^000 dividend checks in five
months at a cost of 3-1/4 cents each, to veteran policyholders of National Service
Life Insurance.
Mr. Banning entered the Government service in 1935 in the Ordnance Disbursing
Office of the War Department. In the Treasury he has served as Chief Accountant,
Assistant Commissioner of Accounts and Deputy Director of the Fiscal Branch of
the Procurement Division as well as Chief Disbursing Officer.
During World War II he was a Lieutenant Colonel in the United States Army
and for a time served as Chief Accountant for the Allied Commission in Italy.
Mr. Banning was born in Mt. Vernon, Ohio, August 17, 1892• He attended
Oberlin College in Ohio, Georgetown University Law School and Pace Institute both
in Washington. In addition to holding a law degree he is a Certified Public
Accountant.
He resides at 3902 Jocelyn Street, Northwest, in Washington.

oOo

9#h
- 3 -

but shall be exempt fron all taxation now or hereafter imposed on the princip

or interest thereof by any State, or any of the possessions of the United Sta

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
considered to be interest. Under Sections 42 and 117 (a) (1) of the Internal

Revenue Code, as amended by Section 11$ of the Revenue Act of 194i5 the amoun
of discount at which bills issued hereunder are sold shall not be considered

accrue until such bills shall be sold, redeemed or otherwise disposed of, and
such bills are excluded from consideration as capital assets. Accordingly,

the owner of Treasury bills (other than life insurance companies) issued here
under need include in his income tax return only the difference between the

price paid for such bills, whether on ori<yinal issue or on subsequent purcha
and the amount actually received cither upon sale or redemption at maturity

during the taxable year for which the return is made, as ordinary gain or los
Revised
Treasury Department Circular No. 418,/ttKXDaeadjad, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their
issue. Copies of the circular nay be obtained from any Federal Reserve Bank
or Branch.

9a(
- 2
MMUKAAI

payment of 2 percent of the face amount of Treasury bills applied for, unless

the tenders are accompanied hy an express guaranty of payment by an incorporate
bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following -Hhich public announcement mil be made
by the Treasury Department of the amount and price range of accepted bids.

Those submitting tenders will be advised of the acceptance or rejection thereof

The Secretary of the Treasury expressly reserves the rigjht to accept or reject
any or all tenders, in whol^ or in part, and. his action in any such respect
shall be final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be accepted
in full at the average price (in three decimals) of accepted competitive bids.
Settlement for accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on Jane 24, 1954 , in cash or
other immediately available funds or in a like face amount of Treasury bills
maturing «faw> 2k 19$k • Cash and exchange tenders will receive equal
rhfk\t
KJ i

treatment. Cash adjustments will be made for differences between the par
value of maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or gain from
the sale or other disposition of the biHs, shall not have any exemption,
as such, and loss fron the sale or other disposition of Treasury bills shall
not have any special treatment, as stch, wirier the Internal Revenue Code, or
laws amendatory or supplementary thereto. The biHs shall be subject to
estate, inheritance, gift or other excise taxes, whether Federal or State,

9&H

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
TJtosday, June 17, 1954
The Treasury Department, by this public notice, invites tenders for
$1.£00,OQOjOOP

or thereabouts, of 91 -day Treasury bills, for cash and

in exchange for Treasury bills maturing Jane 24« 1?54 _>

^e amount of

$1,$01,190,OOP , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated «fa®e Ji4, 1954 , and. will mature September 23, 1954 , when the face
yyjj.

3£E2X

amount will be payable without interest, They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000, $£00,000,

an^

$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o'clock p.m., Eastern/&g&Rfcsx& time, Monday, June 21, 1954
Tenders will 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 thre
decimals, e. g., 99*92$. Fractions may not be used. It is urged that tenders

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Thursday, June 17, 1954.
The Treasury Department, by this public notice, invites tenders
for $1,500,000,000, or thereabouts, of 9I-day Treasury bills, for
cash and in exchange for Treasury bills maturing June 24, 1954,
in the amount of $1,501,190,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated June 24, 1954,
and will mature September 23, 1954,when the face amount will be
payable* without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Daylight Saving time,
Monday, June 21, 1954.
Tenders will 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
special envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account. Tenders will be reoeived
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announce^
ment will be made by the Treasury Department of the amount and price
range of accepted bids. Those submitting tenders will be advised of
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders
in whole or in part, and his action in any such respect shall be
final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted

- 2competitive bids. Settlement for accepted tenders In accordance
with the bids must be made or completed at the Federal Reserve Bank
^ . .
cdon or
ur other
uunei- immediately
immeQiateiy available
available fund.**
on June -.,
^4, _
1954,
ix nn cash
r in a like face amount of Treasury bills maturing June 24,
24 l'yVi.
or
ash
and
exchange
tenders
will
receive
equal
treatment.
Caa..
C:
adjustments will be made for differences between the par value of
bills.
maturing
bills accepted in exchange and the issue price of the ne
The income derived from Treasury bills, whether Interest or
gain from the 3ale 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, a3 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. Under Sections 42 and 117 (a) (r) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 194l, the
amount of discount at which bills Issued hereunder are sold shall not
be considered to accrue until such bills shall be sold, redeemed or
otherwise disposed of, and such bills are excluded from consideratlor
as capital assets. Accordingly, the owner of Treasury bills (other
than life Insurance, companies) Issued hereunder need include in his
income tax return only the difference between the price paid for
such bills, whether on original Issue or on subsequent purchase,
and the amount actually 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. 4l8, revised, and this
notice, prescribe the terms of the Treasury bills and govern the
oOo
conditions of their issue. Copies
of the circular may be obtained
from any Federal Reserve Bank or Branch.

?r\'.»
• 5 -

htwan n«sifas«e#

:te has been timise

4 aejor oatte® of tttese

policies. This

policies. A isajor exnm Is found lis seoix! fiscal and

^"C&

is our €fcJe*Uae» *

Jfc^'^&A^^^--, ^ ^

$tLa*> *^W**-«iyr*
^..*..*-A- *&-

r^'^X.

-4 Aside tram war, what are the eeonossie eneades of huaen progress? One soon
enemy %s tarn mmah Goveraaent — too saay controls, too high taxes, and hem sees
Govenasant seeding* It is the people of %ha mmwBfary **» Bake prosperitr —- with
their effort, their initiative, and their genius* this Cownsent's progresi for
eooMsy, lower taxes, redaeins eentrels, and freer aarkots is a program to release
sore of the energies of the American people to work for their own welfare.
Another great ens^r of lasses welfare has haam inflation or deflation.
Inflation robe the saver far the benefit of the speculator and too often pates
the way for deflation, this country has had bitter experiences with both inflation sad deflation. The inflation of World War I was followed by the deflation
of 1921. The inflation of the late *£0's was followed by the deflation of the
•30»s, The inflation of World War H and after, followed by the inflation of
lores, had e«t the buying power of the dollar nearly la half and, If continued,
would have ran the risk of a violent deflation.
Experience both here and abroad has demonstrated sees of the principles
of avoiding inflation and deflation and euroing their destructive power over

252

-3-

the federal Eeterve System has hmmm trmmd ha ejeerelae its powers through
the discount rate am open siarket operations and changes in reserve requirsaents
to cheek the Inflationary tendency in @arly 1953 and, when the turn mama, to
encourage the frejp/i^pe of sonsy and check recession. It has been a flexible policy
In their efforts to encourage stability and growth, the treasury and the
Ksserve System have been following preei^ely the principles laid down in 1950
by the Douglas Stahomlttse of the Jolt it Oewlttee on the Leono^c risforfe, as
follows:
me reoommnd not only that appropriate, vigorous, and coordinated
sscsttry, oredit, and ttsssl policies he employed to proaot* the purposes of the Empl&ymmt Act, hot also that sash policies constitute the
&mermmeit*& prlssry and s#fte*4s*JL sstbsdjaf psoaeting those purpose*.*
It should he noted also that the Fatsan Susssssittse of the sa«e general
eossstttee amlmamd in 1952 the farsgsifif statement by the DouglaE Srisasssiltts*.
The great, sststandisig purpose at ths program of this as*dAlstew£lsA Is
»re freedom and ths rmmml of hasdieaps to trssdesf freadom far the people of
this

SSSBSYT

to make losg-ters* dysajais progress* freedom to safe* more and better

Jobs a©d to prods** higher standards of llvJag.

25s3
- 2 -

spending is thus twelve billion dollars, this Is abcmt as fast as spending can

progress*
taxes: Cuts in tastes, effective last January 1, totaled five billion dollars
a year. The excise lax oat on April 1 was about one billion dollars* the tax:

reform hill now before Congress, If passed, will rednse taxes another 1.4 billio
dollars. These ents add up to 7*4 billion dollars, the largast.tax reduction

ever sade in a single year.
About two-thirds of these outs go to individuals. The rest relieve? business

aid encourages it to move ahead — to easloy siore people.
Honest nosey* For a year and a half, the price level has been relatively

stable. Inflation was stoppedf mm ensuing resdjmstssnt was slid and gives

evidence of leveling off.
ths frsasery md the federal Heserve System haws used their powers viforously
toward economic stability and growth. Cutting expenses and reducing taxes were

for that purpose. ?he arrangement of types of Treasury finanelng has been adjwst

to this end.

SRiUCT FitOa &BIKSSS BI W. 1AIIXSJ*S BQ>DE^ 9 DEPUTT 10 IBB SECHETJUil OF f IE

tii^sijfii, to m e & m t i

SCHOOL

ot aoniG, Anssica* mmM^&$$om.fim.

ago when I spoke here, it was only possible to tell yen the aiss

purpose? of ths Eisenhower Administration.

today, we can begin to speak of aohievesent*
A legislative program has been presented to the Congress which was as
thoroughly prepared as any program of legislation ever presented, this program

is conservative In economic principles, liberal in hesan objectives.
Mach of the program is well on its way through the Congress. Sosas of it
is in controversy and needs the thoughtful attention of people like
In finance, we can report Rome success. The aims were singles

lower taxes, honest womy* These aim had to he pursued in an
international tension, which respired the aaintenanos and strengthening of the
military power of this ©©mitry md our allies. Sewsrthsl&ss, progress has

>% Is have cnt spending this fissal year, wliish ends in.a few days,

hy **vsn billion dollars from ths franan budget, lext fissal year, we have
budgeted for a reduction of another five pillion dollars, the total decrease in

TREASURY DEPARTMENT
Washington
FOR R2LEASZ ON DELIVERY

H-*515

Extract from address by W. Randolph Burgess,
Deputy to the Secretary of the Treasury, to the
Graduate School of Banking, American Bankers
Association, at Rutgers University, New Brunwick,
New Jersey, at 7:00 P.M., SDT, Friday, June 13,

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 achievement.
A legislative program has been presented to the Congress
which was as thoroughly prepared as any program of legislation
ever presented. This program is conservative in economic
principles, liberal in human objectives.
Much of the program is well on Its way through the Congress.
Some of it is in controversy and needs the thoughtful attention
of people like you.
In finance, we can report some success. The aims were simple
economy, lower taxes, honest money. These aims had to be pursued
in an atmosphere of international tension, which required the
maintenance and strengthening of the military power of this
country and our allies. Nevertheless, progress has been made.
Economy: We have cut spending this fiscal year, which ends
in a few days, by seven billion dollars from the Truman budget.
Next fiscal year, we have budgeted for a reduction of another
five billion dollars. The total decrease in spending is thus
twelve billion dollars. This is about as fast as spending can
be cut while still maintaining adequate defense and not giving
the economy too severe a jolt. Contrary to some reports, there
is no present plan for changing this budget program.
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 reform bill now before Congress, if
passed, will reduce taxes another 1.4 billion dollars. These
cuts add up to 7*k billion dollars, the largest dollar tax
reduction ever made in a single year.

C v./ o

- 2About two-thirds of these cuts go to individuals. The rest
relieves business and encourages it to move ahead --to employ
more people.
Honest money: For a year and a half, the price level has
been relatively stable. Inflation was stopped; the ensuing
readjustment was mild and gives evidence of leveling off.
The Treasury and the Federal Reserve System have used their
powers vigorously toward economic 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 turn 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 Subcommittee of
the Joint Committee on the Economic Report, as follows:
"We recommend 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 constitute the
GovernmentTs primary and principal method of promoting
those purposes."
It should be noted also that the Patman Subcommittee 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 removal of handicaps to
freedom; freedom for the people of this country to make long-term,
dynamic progress; freedom to make more and better jobs and to
produce higher standards of living.
Aside from war, what are the economic enemies of human
progress? One such enemy is too much Government -- too many
controls, too high taxes, and too much Government spending. It
is the people of the country who make 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.

- 3Another great enemy of human welfare has been inflation or
deflation. Inflation robs the saver for the benefit of_jthe
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 ^G's vjas followed
by the deflation of the f30's. The inflation of World War 11
and after, followed by the inflation of Korea, had cut the
buying poller 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 some of the
principles of avoiding inflation and deflation and curbing their
destructive power over human welfare. A major cause of these
movements has been unwise government policies. A major cure
is found in sound fiscal and monetary policies. This is our
objective, to avoid the excesses of inflation and deflation ana
other handicaps to the prosperity and economic growth of the
country.

oOo

y-sy

mmim wmim unseats,
faasday, Jttne 22, lf9u

the treasury Department announced last evening that the tenders for $1,500,000,000
or thereabouts, of ?l-day Treasury Mils to be dstsd June 2k and to satst* Septeaber 23
19$k9 which osre offered on Jane 17, were opened at ths Federal Reserve Banks on Jose £
The details of this issue are as follows:
total applied for - f 2,207#t®?,OO©
Total accepted
* 1,500,973,000

Average price

(includes $22h933$9000 entered on a
tire hasis sad accepted in
fall st the average price shown below)
- 99*b%0 Equivalent rate sf discount appro*. 0.63&S

Hi«h
- 99. &&
Equivalent rate sf dissenat approx. Q.6132 per ana
la®
- 99.§36
•
s e e
(Hi percent sf the

district
Boston
lew lark
Philadelphia
Cleveland
Atlanta

fetal
AnpHsdfsr

fatal
Aoospted

299%$i9®m
lf$6» f &6»000
31,06?,0<S)
10,6*6,000
3&6%T,ooo

3©,5$a,ooo
14,0^000
W»*5,aoo

Kansas City
Bellas

Qmdm\m •

bid for at the lew price

OlsSlSsOOO
i?,6q3»ooo
15,386,000

St. talis

15,(81,000
121,156,000
36*067,000
il£,833,Q00
!Sf8li7,(W
20,522, OX)
230,6*5,000
19,603,000
25,236,000
*s»5i*7,000
k/Lh9$$900Q

m*3$69QQQ
TOTAL

$2,207,297,000

»l#5OO,973tO0O

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday.-June 22, 1954, .

.
"^-1-°

The Treasury Department announced last evening that trie tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury Dills uo oe
dated June 24 and to mature September 23, 1954, which were oiiered
on June 17, were opened at the Federal Reserve Banks on June dx.
The details of this issue are as follows:
Total applied for - $2,207,297,000
Total accepted
- 1,500,973,000 (includes $224,335,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.840 Equivalent rate of discount approx.
0.635$ per annum
Range of accepted competitive bids:
High - 99.845 Equivalent rate of discount approx.
0.613$ per annum
99.836
Equivalent
rate of discount approx.
Low
0.649$ per annum
(l4 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District

Applied for

Boston $ 29,051,000 $ 25,051,000
New York
1,569,696,000
Philadelphia
31,067,000
Cleveland
49,888,000
Richmond
15,847,000
Atlanta
30,552,000
Chicago
237,575,000
• St. L S U I S
19,603,000
Minneapolis
15,336,000
Kansas City
44,891,000
Dallas
46,955,000
San Francisco
116,786,000
TOTAL $2,207,297,000 $1,500,973,000
^r\*~.

Accepted
89^,156,000
16,067,000
49,868,000
15,847,000
29,522,000
230,695,000
19,603,000
15,286,000
4-4,547,000
46,955,000
109,356,000

sL. <w w

- 3 -

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. Under Sections L\2 and 117 (a) (1) of the Internal
Revenue Code, as amended by Section 115> of the Revenue Act of 19Ul, the amount
of discount at which bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold, redeemed or otherwise disposed of, and
such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the
price paid for such bills, whether on ori^r.al issue or on subsequent purchase,
and the amount actually received either upon sale or redemption at maturity
during the taxable year for which the return is made, as ordinary gain or loss.
Revised
Treasury Department Circular No. 4I8, xsxxxxxstgg, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their
issue. Copies of the circular may be obtained from any Federal Reserve Bank
or Branch.

26i
- 2 -

payment of 2 percent of the face amount of Treasury bills applied for, unless
the tenders are accompanied by an express guaranty of parent by an incorporated
bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following •which public announcementTO.11be made
by the Treasury Department of the amount and price range of accepted bids.
Those submitting tenders Twill be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, in whole or in part, and his action in any such respect
snail be final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be accepted
in full 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

Jbly -1, 1954

, in cash or

other immediately available funds or in a like face amount of Treasury bills
maturing

July 1, 1954

. Cash and exchange tenders will receive equal

treatment. Cash adjustments will be made for differences between the par
value of maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or gain from
the sale or other disposition of the bills, shall not have any exemption,
as such, and loss from the sale or other disposition of Treasury bills shall
not have any social 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,

2*1
fflmiiaMfaiiirfwna

TREASURY DEPARTMENT
Washington
FOR RELEASE, :iCRl-Ti:^G S7SPAPERS, H-517
Thursday, June 2k. 195*1pas
The Treasury Department, by this public notice, invites tenders for
$ 1,500,000,000 , or thereabouts, of 91 -day Treasury bills, for cash and
in exchange for Treasury bills maturing July 1, 1954 , in the amount of
01,500,672,000

, to be issued on a discount basis under competitive and non-

competitive bidding as hereinafter provided. The bixls of this series will be
dated July 1, 1954 , and'will mature September 30, 1954 , when the face

amount will be payable without interest. They will be issued In bearer form only,
and in denominations of mi,000, $5,000, £>10,000, $100,000, $500,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o'clock p.m., Eastern/siasxasisaad. time, Monday, June 28, 195*1Tenders will 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*92$. Fractions may not be used. It is urged that tenders
be made on the printed f orms and f orwarded in the special envelopes which will
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by

TREASURY DEPARTMENT
WASHINGTON, D.C
RELEASE MORNING NEWSPAPERS,
Thursday, June 24, 1954.

H-517

The Treasury Department, by this public notice, invites tenders
for $1,500,000,000 or thereabouts, of 91-day Treasury bills, for
cash and In exchange for Treasury bills maturing July 1, 1954,
in/the amount of $ 1,500,672,000,to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated July 1, 1954,
and will mature September 30, 1954,when the face amount will be
payable without Interest. They will be issued in bearer form only,
and In denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o8clock p.m., Eastern Daylight Saving time,
Monday, June 28, 1954.
Tenders will 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
special envelopes which will be supplied by Federal Reserve Banks or
.Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account. Tenders will be received ?••
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities* Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company,
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price
range of accepted bids. Those submitting tenders will be advised of
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders
in whole or in part, and his action in any such respect shall be
final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted

- 2competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on July 1, 1954,
i n cash or other immediately available funds
or in a like face amount of Treasury bills maturing July 1, 1954,
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted In exchange and the Issue price of the new
bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, shall not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills shall not have any special treatment, as such,
under 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. Under Sections k2 and 117 (a) (r) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the
amount of discount at which bills Issued hereunder are sold shall not
be considered to accrue until such bills shall be sold, redeemed or
otherwise disposed of, and such bills are excluded from consideration
as capital assets. Accordingly, the owner of Treasury bills (other
than life Insurance companies) Issued hereunder need Include in his
Income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase,
and the amount actually 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 bills and govern the
0O0
conditions of their Issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

•

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am the
Isatlasm H ? Association, the American MmtAUtm, of _ „ _ _ . _ ,

by the i3taf fB of the Joist C&mittee,

Una* the bill

Us) asselfi© ssMaias isslMssd is the bill ao& the
e
ma#& to isslintajt tsas wa#af of course, det«r&l&ed by
os Waym asH ^ a s a itself, which fataataMsjiy mmwmtmd virtually
every waridtsg say teisg a parloa of el^gt waaka to thla task*

21V
*i§ *

golag o% the Coaslttee on lays
pubUe saaYias* a s s ®
., f*aa»aatly laatlag vail into the night,
3>C00 aa&aaigr $riata* sagas at taatisssy* Ovar 600

in the

Is addition, at the direction of m a Chairman mi the

to lass lata the more technical tax areas. I^assisg tax
is thia

wmwm9&a\mWeimww •'•^saas

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«a ^wsjas sja*<<wwS'S><si^awaPjS>^awasF

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to
of this sort is the
asi Was are likely to be
by saw proviaieaas is thia axmm% Thmmm sjFsssa merged is as
advisory

2? j

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fe*,

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"ly is 1953, the Treaaury and the
mk

*•

,---*to it,

offlciale

ti*jk*

274

- «

to mm t« e^ti*.
*•

' • •

ft* ssjaff^ar ** ft* saasla a m to the jpa* of the

mvithnrlfiT of s resolution »&*a«ife*ifl w t&a *!•»•*** fhramttrtTiia as
m taa satiam.affffififfwfm.ftt+fgits

is tha x^isiaB sf mm tmm ***** Islam af M I i s thi*
Is this ssvass*^ ^^.y, -#v tj^ J&L&

£*am all sstfa of i&t zwmtty.

fssasasi® ^

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*m& Jjajpsifaswsjii I W I .issss'fss*

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Is atmfiam* fas st***** the Joi&t €sa*4tfsa mm a t fsa
a large mtsa«ar of 4«*a©li«it*«* letters

^y
• it -

tax ssassal. X have se doubt fist tax practitioners
without this Jtlnd of artificial subsidy provided at
the expense of the taxpeyisg public.
Borne of fsa oajastivaa X have Juat cites estail largely
with little lose of revenue. Otters» *^hich
lacitxle aasa of those
involve revenue losses of varying
will of necessity sees fa ha deferred., for taa
situation iasosea severe Hattatiosa os the additions?
time Ooverwaeet can take at thia tie*.
1 «a»*«fr that the oeoole agree with the riaalilaiit that

tax reduction ©sly aa rapidly aa pregraaa is ••atsjlttnni redaction

the appeal of a

it
F
The Process of Tax aevjaloa
revision of the revenue code la aa aaaastial to
the country asd cosprlasa a aaior s la sent is the

??6
• U

at sssCtaJL ssins ratas* 1
s variety of thaws hiaia of
*&iy p m i t thas* is saattim to exploit mam

tm***fe4am£

the tam law clearer as* aara ea**aia« This will

Otelfiaatiost of the fas 1 M S as! repOatiooa will go a
with

•tr

s^afas has far aoaa tia* heam. called tha
Vast is assst by this is that our
find it accessary to

27 (

to® basw^r i« *a*t is sat able t » * P * t i s * m s s a ^ ^
am it caul* if ast as bar&eaeti -tsst it i» is. a^retsMfStri^favpositios when buaiaeaa aisd^aaii i® higaly a^pe-Utive •

o«io*3*o ^IPPHWSS^. sissassMPW* es*i

smiistte « l e r fa* stis*s>t-lis* sstssi* This will permit about
ss*»fltiii» mi tha oast of an aaaat to ha depreciated m the first
half of ita life us compared to half of the cost under ths ordinary
mtm^xUUm

method. Bssisaiatlom durixm the second half of the

lif*- of tfc* ussat will ha corresiWidittgly s.mller so that the e m u lative total of asfraaistlos m$m

ISSSIBS

•anehanged.

-i.hls ant related chases ens ha instrumental is stiaulatiag
building., is)sas*i&s, stod sso&ariiisat-ioia of plasta asd equiptsent and
provMitig ls*as*iaas for *va*tar pateoftaa*
sofhis* Is no vital to ssslasiS. strength and preparedness
for tot#^«tioml oosftiap^taa aa ® m&srnimd

industrial plaat»

Mfcltfas * f U issss* w r a Joss ssjtac higHs* sagas tsss ©osttoad
W3mtW^%m®,%Wmm

Warm owe should i&cl&de #!## tha pFohlsi& of dtHtMLt* taxation
of oassjsajfes dividends. fsl* its* Mm had a top hillla* on alsaat

A be^-eii^ is tha diraotlom of relievitig double taxation of
mmtmm

mtU atifuilsta the m^pl; mi isvaatsa&t capital* It

sttt ssststtsss to the a o u M r ^ s of the whols saaatsy lay mmklug

27b
• 8 -

<^asoad» ^** atjaetlwas of tag raviaiOB include the redaction
te enterprise. Aa business ta parslttad and
to mm and expand, 1% crsstaa Ummr

pft*roXU# tsora
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sat hattar Joba, sad %m*m* as* ssra wldal^ distributed m^^9Ssmmm
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retards «a» raplaoeatst of o M stas —
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elation thas would ha availahlft mdmw to* declirii^-'halaiice
"

»f assfaalstion which s*/%*

•**

-7.T«a
of Wb is

fa contribute to this

«» mm™

<* m nmwf

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which will

obstacle to the

of tin

calls this the
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saxpayar**?
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aa a

ralaflag to the filing of tax

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the past-5^ years, aa the administration is
..&.

to
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at fsa
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to

to
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unit.

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f9 since that f las, sa
ti*

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1*3

is for legislation to provide

tax

results is

role. The

SK-%

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fill a
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to taa

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life, by

diaaatisfaction with
\a It

• 2 •

fsa tax revialos sill la a vital part of the Praalssmt'a tax
a t that program, fa be asrs, iaclsaaa a large am
tax redaction. Is fact, aa the Preaidest poistad aw*jto oss.of
his raaaat praaa eosfaraaaeo, Xfjk witness ad the IssgasM
A
tios asse is asy sdsgle year is osr history.
The year sagas with a reduction Is isdiwisual
asd fsa expiration of taa excess profits tax a* laaaary 1,
gating $5 billios. The axaiaa tax reduction bill possat Is the
Sprisg wuiiafsi to as additlosal $1 billios.

> ***ttar

fsa rawiatos of the revesne coda, to waiafe SQ
directs*, i* srisarlly s refers sssasra* It will, however,

$800 million win aafraa to isMwisssls as* $006 snllios fa
poratioss* fals

IIIWIJBMI

loss will be largely offoat sy extension

mi the 52 saraast corporatios isaosa tax siUr fsorisad for ** the
legielatioa, which siasjntii ty abas* $1.2 hillloo t a i s i w .
fsa s**t *lsa»--aja* ajnfaan^Hfa^^

'^wvfggss;

A atrlMag faatsra of fa* pasting tax legislation ia the
usanlslty asd persist sacs with which it has seas reassstad far
aosa tioe. fsa raviaioa of the tax atrsatara

TREASURY DEPARTMENT
Washington
FOR RELEASE ON DELIVERY
Remarks by Elbert P. Tuttle, General Counsel of the
Treasury Department, at the Sixth Annual Conference
on Federal Taxation at the University of Virginia
Law School, Charlottesville, Virginia
Thursday, June 24, 1954, 9:30 a.m., EST

is m9

ia a asssssstsl undertaking sot to mm asplainsd
4*r * . ss **> - m - - ^m*
m.w
* -•
or avail 30 aisataa* Aa s t*c nical taahf it
*fe-3** flBl ' -- * * * & • •

•'^S*** SJ»-

--'t

legislation of a aooia newer bafora even ati
It occurs to a* that you easy fee interested is
-

_• w •:.

* may ^ ^ i

: y » # * ^ •^Jfc*.. - —

southing of ths AssiaU^atl«s*s objective* %m giving this
.•./•••y::-<-~- - - r- : mm
-- •^.•^.;ai-^^--*«faa-n*
l#St©Iat ion hi£n> priority, of the jsrocodure* followed is its
i*

•^••••.. .--*,

- .-:--

'.y^ssfr,

dmml&pmmtf tri of the patters asd organisational «fcmet«af«
of ths oaw srossst«
X ^OJIM asm yon to view-sy oonMBta as those of am
m% directly isvol«s£ in ta* dny*fs*ssy worm on the
bill* Bowavar, with hsssflt of a ri^g*aide seat, X say ha
solo ha glwa yarn a sl»y*by*|^ay mmmmt of the psrforssitos*
% talk zmcerm tax rmfmm as* tax revision* asd not
ham reduction, mile the two are interrelated, it ia wall
to keep thas apart, for thay tmm&m a different grosp of
eos&idsrstl

< /

?Mtt

TREASURY DEPARTMENT
Washington
FOR RELEASE ON DELIVERY
Remarks by Elbert P. Tuttle, General Counsel
of the Treasury Department, at the Sixth
Annual Conference on Federal Taxation at the
University of Virginia Law School,
Charlottesville, Virginia, Thursday, June 2k,
1954, 9:30 a.m., EST.
THE BACKGROUND AND ORGANIZATION OF THE
INTERNAL REVENUE CODE OF 195^

I am glad to have an opportunity to discuss with you some
aspects of the Internal Revenue Code of 195^, now in process of
being legislated. The bill passed the House on March 18 and is
now in the Senate.
I phrase my assignment in restricting terms for, as you
know, the new code is a monumental undertaking not to be explained
in 20, or even 30 minutes. As a technical task, it represents
legislation of a scope nevei" before even attempted.
It occurs to me that you may be interested in hearing
something of the Administration's objectives In giving this
legislation high priority, of the procedures followed in its
development, and of the pattern and organizational structure of
the new product.
I would ask you to view my comments as those of an observer
not directly involved in the day-to-day work on the bill. However, with benefit of a ring-side seat, I may be able to give
you a play-by-play account of the performance.
My talk concerns tax reform and tax revision, and not tax
reduction. While the two are inter-related, it is well to
keep them apart, for they involve a different group of
considerations.
H-518

p.". I
- 2The tax revision bill is a vital part of the Presidents tax
program and that program, to be sure, includes a large measure of
tax reduction. In fact, as the President pointed out In one of
his recent press conferences, 1954 witnessed the largest total
dollar tax reduction made in any single year in our history.
The year began with a reduction in individual income taxes
and the expiration of the excess profits tax on January 1,
aggregating $5 billion. The excise tax reduction bill passed in
the Spring amounted to an additional $1 billion.
The revision of the revenue code, to which my remarks are
directed, Is primarily a reform measure. It will, however,
result in $1.4 billion of tax reduction in fiscal year 1955, of
which approximately $800 million will accrue to individuals and
$600 million to corporations. This revenue loss will be
largely offset by extension of the 52 percent corporation income
tax rate provided for by the same legislation, which will net
about $1.2 billion this year.
The Need for Tax Reform
A striking feature of the pending tax legislation is the
unanimity and persistence with which it has been requested for
some time. The revision of the tax structure has been consistently
urged since the closing months of World War II, as thoughtful
people in Washington and other parts of the country turned their
attention to post-war problems. Implicit in this widespread
movement was a recognition of the importance of sound taxation
for peace-time economic prosperity.
During the post-war years, several Congressional committee
reports dealt with the subject. Taxpayer organizations, trade
associations, professional organizations and citizens groups have
all urged legislation to bring the tax structure into better
alignment with the requirements of a private enterprise economy
Indeed, the numerous reports on this subject would fill a good-"
sized bookshelf.
Equally striking is the widespread agreement in regard
to the areas which require urgent attention and what should be
done about them. This explains why so many of the provisions in
the new code have been publicly supported by men in all walks of
life, by business, large and small, by labor and farmers, and bv
political groups on both sides of the aisle.

?*b
- 3This general dissatisfaction with present law results from
the way the tax system has developed. It has evolved piecemeal,
particularly during the past 20 odd years, as the administration
in office and the Congress sought to meet year-to-year revenue
problems. There have been exceptions, such as the Revenue Act
of 1948, but the typical process was to add taxes on top of taxes.
During the four decades since the imposition of the income
tax, vie have had some 30 separate revenue acts, generally enacted
under the stimulus and pressure of one national crisis or another.
Now and then important structural changes were made, but they were
generally added to the existing structure without any attempt to
integrate the related provisions into a complete unit.
A limited codification of the tax laws was accomplished in
1939, but this did not include revision of all of the technical
provisions of then existing law. Moreover, since that time, as
you know, we have had important revenue legislation from virtually every session of Congress.
When the pressure is for legislation to provide more revenue,
tax reform generally occupies a secondary role. The reason is
that reform, especially of the variety readily accepted, generally
results in revenue reduction.
Some of the inequities in the present tax system date back
to the early '30's. However, their restraining effects viere not
so evident then because all Federal taxes in the aggregate
represented a comparatively small part of national income.
A faulty provision in the revenue code may be tolerable to
the country as a whole when the total Federal tax structure takes
less than 10 percent of national income, as it did in the pre-1940
years. It becomes of major moment, however, when Federal tax
collections approach a quarter of national income, as they do today
When as much as a quarter of national income goes for the
support of the Federal Government, the economy becomes sensitive
to faulty taxation. It begins to be reflected in the stifling of
industrial ingenuity and in a general reluctance to proceed with
venturesome expansion. In these and other ways tax considerations
become a major factor in businessmen's decisions.
It is significant, too, that the growing complexity of the
tax laws occurred during a period when the proportion of our
population directly affected by Federal taxes markedly increased
In 1939, there were scarcely four million individual income
taxpayers. Since then, the number has increased 12 fold. Today
the number of taxable returns is approaching 50 million
This has meant that during the time when their wider impact in
terms of numbers of the population affected, called for simpler tax
laws, they were becoming more complex and more difficult for the
taxpayer to comprehend.

?>o
- 4There has been a change also in the direction of a better
general appreciation of the intimate relationship between our
tax laws and economic health. There is evident an increasingly
better comprehension of the importance of sound and fair tax
provisions to the efficient functioning of private enterprise
and its continuing contribution to dynamic economic groxvth.
The experience of the past quarter century suggests that
to insure steady economic progress, without inflation and
wasteful public spending, the tax system must be rid as quickly
as possible of inequities to individuals and of barriers to
enterprise and risk taking. The tax system must not be permitted
to inflict serious restraints on future development.
While war and inflation stimulated the economy, faulty tax
provisions could be tolerated. However, none of us wants
prosperity made conditional on war and inflation. We prefer
normal incentives and wholesome progress. The revenue revision
of 1954 is designed to contribute to this end.
The Objectives of Tax Revision
In his first State of the Union Message, President Eisenhower
set as one of the goals of his Administration the development of
a tax system which will impose the "least possible obstacle to the
dynamic growth of the country." Secretary Humphrey calls this the
creation of "a proper economic climate in America." This broad
objective seeks to achieve a number of separate but interdependent results.
First, it seeks to make tajc burdens fairer for millions of
individual taxpayers by removing inequities and tax complications.
This involves also the removal of provisions which serve as a
trap for the unwary.
In this category one might include better tax treatment for
working children, child care expenses, doctors' bills, and
annuities. Others are the provisions relating to the filing of tax
returns and declarations of estimated tax.
Second, the objectives of tax revision include the reduction
of tax deterrents to enterprise. As business is permitted and
encouraged to grow and expand, it creates bigger payrolls, more
and better jobs, and larger and more widely distributed incomes.
This increases the national income and, incidentally, tax revenues.

?>l£j.

- 5Fairer tax treatment of depreciation is one of the outstanding examples in this area. Under'present law, deductions on
account of depreciation of investment are usually written off
uniformly and often, especially in the early years, in amounts
less than actual depreciation. This discourages long-range
investment on which the risk cannot be clearly foreseen, and
retards the replacement of old with new, improved equipment.
It also makes it more difficult to obtain financing.
Pending changes in this area would permit taxpayers to
compute depreciation under the declining-balance method or any
other consistent method which does not result in greater
depreciation than would be available under the declining-balance
method. The maximum amount of depreciation which may be taken
in any year under the declining-balance method is twice the amount
available under the straight-line method. This will permit about
two-thirds of the cost of an asset to be depreciated in the first
half of its life as compared to half of the cost under the ordinary
straight-line method. Depreciation during the second half of the
life of the asset will be correspondingly smaller so that the
cumulative total of depreciation taken remains unchanged.
This and related changes can be instrumental in stimulating
building, revamping and modernization of plants and equipment and
providing incentives for greater production.
Nothing is so vital to national strength and preparedness
for international contingencies as a modernized industrial plant.
Nothing will insure more jobs paying higher wages than continued
modernization.
Here one should include also the problem of double taxation
of corporate dividends. This item has had a top billing on almost
every prescription of tax reform offered in the past several years.
A beginning in the direction of relieving double taxation of
dividends will stimulate the supply of investment capital. It
will contribute to the soundness of the whole economy by making
equity financing — that is, buying of shares of stock instead
of bonds in an enterprise -- more attractive. It will counter
the recent trend toward excessive use of borrowed money for
working capital and expansion.
This group needs no reminding that an enterprise which is
too heavily in debt is not able to develop so well or so quickly
as it could if not so burdened; that it is in a relatively unfavorable position when business slackens in highly competitive
times. This is the connection between the reduction of double
taxation of dividends and economic growth, steadier employment
and a bigger national income.

?$J
- 6A

third objective of tax revision is the closing of tax
evasion opportunities. This involves repairing those provisions
in present law which enable some taxpayers to avoid their
share of the tax burden by taking advantage of technicalities.
Included here, for example, is trafficking in loss corporations, which enable some taxpayers to reduce their tax
liabilities. Other examples are the use of collapsible partnerships and other devices employing the partnership form. You are
familiar with the practice of amortizing premium on bonds with
short-term call dates against ordinary income and subsequently
realizing a profit on the sale at capital gains rates. The
revenue laws contain a variety of these kinds of provisions
which permit those in position to exploit them to use them in
a manner not intended, in order to minimize their tax obligations.
Finally, there is the objective of simplification and
clarification. Taxpayers have been pleading for years that
Congress make the tax law clearer and more definite. This will
lighten the burden of compliance and reduce the amount of paper
work. Clarification of the tax laws and regulations will go a
long way toward reducing arbitrary interference with business
decisions, minimizing areas of unnecessary dispute and controversy, and eliminating painful uncertainties in the final
determination of tax liability. It will obviate needless
adjustment in income and deduction items from one year to another.
The Federal tax system has for some time been called the
tax practitioners paradise. What is meant by this is that our
laws are so complex that taxpayers find it necessary to employ
professional tax counsel. I have no doubt that tax practitioners
can prosper without this kind of artificial subsidy provided at
the expense of the taxpaying public.
Some of the objectives I have just cited entail largely
technical revisions with little loss of revenue. Others, which
unfortunately include some of those of greatest importance
incentive-wise, involve revenue losses of varying amounts. Some
of these will of necessity need to be deferred, for the existing
budgetary situation imposes severe limitations on the additional
revenue loss the Government can take at this time.
I think that the people agree with the President that taxes
and expenditures should come down together; that we can afford
tax reduction only as rapidly as progress in expenditure reduction
makes it possible. However much the appeal of a particular tax
reform, it must take second place to the over-all goal of bringinp
the Federal budget under control.

9^/
- 7The Process of Tax Revision
Because the revision of the revenue code is so essential to
the welfare of the country and comprises a major element in the
President's economic program, the Administration was determined
to bring to this task the best skills, talents and knowledge
available. The development of a revenue code best suited to the
interests of the majority of the people and to the good of the
entire country has been a lengthy, painstaking and time-consuming
undertaking.
The machinery was set in motion in the summer of 1952, when
under authority of a resolution adopted by the Joint Committee on
Internal Revenue Taxation on the motion of Chairman Reed, its
staff sent a detailed questionnaire to those groups and taxpayers
interested in the revision of the tax laws. Some of you in this
room probably participated in this survey.
The response to the questionnaire was immediate and widespread from all parts of the country. Thousands of individual
taxpayers, businesses, tax practitioners, professional groups,
and trade associations responded. Over 15,000 taxpayer suggestions for improvements were received.
In addition, the staffs of the Joint Committee and the
Treasury Department received a large number of unsolicited letters
from individuals who described the types of tax problems confronting them and suggested changes in the law.
The Joint Committee Staff analyzed these replies to the
questionnaire and the correspondence. Later it prepared and
published for the use of the Joint Committee on Internal Revenue
Taxation a report of 150 closely printed pages, presenting
a comprehensive digest of problems raised by taxpayers and
remedies they proposed.
Early in 1953, the Treasury and the Joint Committee organized
some 50 working groups of government tax specialists to examine
particular tax problems and prepare materials which would be
helpful to the Congressional tax committees in revising the tax
laws. These working groups consisted of attorneys, accountants,
economists, and tax administrators from the staffs of the Joint
Committee, the Treasury, and the Internal Revenue Service. They
examined the problems and suggestions which had been outlined
by taxpayers.

?V1
- 8Each of these working groups prepared a report on the
specific problem assigned to it, defining the problem and presenting a digest of the considerations relevant to an evaluation
of alternative solutions. These reports were submitted to the
Chief of Staff of the Joint Committee on Internal Revenue
Taxation and to the Treasury officials concerned with tax policy.
While these studies were going on, the Committee on Ways and
Means conducted nearly two months of public hearings on 40
separate tax topics. These hearings, frequently lasting well
into the night, totaled almost 3,000 printed pages of testimony.
Over 600 witnesses were heard representing every class and segment
of tax opinion. The views ot these witnesses were included in the
analyses being prepared by the staff working groups.
In addition, at the direction of the Chairman of the Ways and
Means Committee, advisory groups composed of outside experts were
organized to look into the more technical tax areas. Leading tax
experts throughout the country volunteered to participate in this
effort. Such technical areas as those relating to taxation of
estates and trusts, income from foreign sources, depreciation,
double taxation of dividends, pension trusts and profit-sharing
plans, and corporation reorganizations were examined in this
manner. To insure a balanced and objective approach, it was
regarded as extremely desirous to obtain the views of persons
who meet problems of this sort in the normal course of business
and who are likely to be more immediately and directly affected
by new provisions in these areas. These groups served in an
advisory capacity.
Moreover, the committees of Congress had the assistance of
studies undertaken by more than 25 national organizations, such
as the American Bar Association, the American Institute of
Accountants, and the bar associations of individual States.
These materials were analyzed and processed by the staffs of the
Joint Committee, the Treasury Department and the Internal Revenue
Service. By the time the bill passed the House, these technicians
had spent over 300,000 man-hours at the task.
Next followed the executive sessions of the Committee on
Ways and Means. At these sessions, Treasury officials and the
Chief of the Staff of the Joint Committee outlined the basic
policy issues and alternative remedies with respect to the
different problems, on the basis of the reports of the staff groups
which took into account the suggestions obtained through the
questionnaires, letters from taxpayers, committee hearings, and
reports of advisory groups.

The specific policies included in the bill and the language
used to implement them were, of course, determined by the Committee
on Ways and Means itself, which painstakingly devoted virtually
every working day during a period of eight weeks to this task.
This, as you know, is only part of the story. The process
is now being continued on the Senate side of the Capitol.
The Finance Committee devoted most of April to public hearings
on the subject. It received almost 2,500 printed pages of
testimony.
The material presented to the Finance Committee was analyzed
by staffs of the Joint Committee and the Treasury.
The Finance Committee spent most of the month of May and
part of this month in examining the House bill in the light of
the testimony it has received. The staffs kept pace by
assembling information for the use of the Committee on the
contested provisions of the bill and by drafting statutory
language to give effect to the policy decisions of the Committee.
The Senate version of this legislation differs in some
important respects from the bill as passed in the House. The more
significant differences are in the provisions, relating to pension,
profit-sharing and stock bonus plans, income from foreign sources,
corporate reorganizations and distributions, the tax treatment of
the natural resources industries, consolidated returns, heads of
households, child care, and the introduction in the Finance
Committee bill of an election which would permit certain restricted
classes of corporations to be taxed as partnerships and certain
partners and individual proprietors to be taxed as corporations.
It will devolve on the conferees of the two Houses to reconcile
these differences.
I have related at this length the principal steps in the
progress of this legislation to convey to you some sense of the
magnitude of the effort which has gone into the task, giving it
the benefit of the best thinking and the differing shades of
opinion in the country.
Structure and Organization of the New Code
While one is reluctant to describe a piece of legislation
before its Congressional processing is completed and the President
has appended his signature, this one is sufficiently well advanced
to permit at least a brief description of the physical form it is
likely to take.

?*s
- 10 I hold in my hand the bill as it emerged from the House and
was introduced in the Senate. It is a 7-1/2 by 11-inch document
of almost 900 pages.
When you examine it in detail, you will be impressed,
I think, as I have been, with the amount of time and effort that
must have gone into putting it Into a form which will make it as
useable and understandable as the complexities of present-day
economic life permit.
The guiding principle in this phase of the undertaking has
been to bring together all provisions of the law pertaining to
the same and related topics. Where this was not possible, cross
references were provided generously. As a result, you can find
the related provisions in the code by reference to a simple table
of contents and without using an elaborate index.
The entire code is organized under seven subtitles designated
by capital letters. The first five relate to respective tax
categories. Subtitle A covers the income taxes; Subtitle B,
estate and gift taxes; Subtitle C, employment taxes; Subtitle D,
miscellaneous excise taxes; and Subtitle E, alcohol, tobacco
and certain other excise taxes. These are followed by Subtitle F,
which brings together all procedural and administrative provisions
hitherto scattered throughout the code. The final and by far
the shortest subtitle, designated G, describes the organization,
membership, powers and duties of the Joint Committee on Internal
Revenue Taxation.
The several subtitles are organized according to a uniform
pattern. They begin with the tax-imposing sections and those
setting the tax rates. These are followed by other provisions
of general applicability to all taxpayers. The concluding
sections of each subtitle pertain to the provisions of more
limited applicability and those relating to specialized situations.
For example, there are separate income tax subchapters on such
topics as accounting requirements, exempt organizations, banking
institutions, natural resources, insurance companies, capital
gains and losses and inter-year adjustments.
In Subtitle F, which deals with tax procedure and administration, the organization follows the ordinary sequence in taxpayer
procedures. Moreover, the materials pertaining to the corresponding aspect of ail the taxes are brought together into one chapter
whenever this vias practicable. The provisions pertaining to dates
for filing tax returns, time and place for paying taxes, assessment, collection, abatements, credits and refunds, interest on
overpayments and underpayments, definitions of crimes and other
offenses, each comprise separate chapters.

•«o
- 11 Each subtitle is subdivided into numbered chapters and these
in turn into subchapters. There are 92 chapters. As in the 1939
code, the section numbers run consecutively through the volume
from section 1 through section e-023, with a generous quantity of
section numbers having been reserved throughout the book for
future legislation.
To facilitate comparison between the 1939 and 1954 code, two
cross-reference tables are appended to the statute. One is keyed
to the section numbers in the 1939 code; the other to the section
numbers in the 1954 code. In addition, each section carries in
its margin cross references to the corresponding sections in the
1959 code.
Incidentally, these cross-reference tables provide a quick,
bird's eye view of the extent to which widely scattered provisions
in present law have been brought together in one section. In some
cases, one new section replaces 30 or more separate, widely
scattered provisions in present law. A striking illustration
is section 5601(a), which prescribes the general rule pertaining
to interest on underpayment, nonpayment, or extensions of time
for payment of tax. This five-line section takes the place of
parts of provisions scattered through almost 40 sections of the
present code.
Those accustomed to working with the 1939 code and conversant
with the particular provisions of most direct concern in their
practice will doubtless feel some nostalgia for the eld ana
familiar volume. I am afraid that there just isn't any escape
for all of us having to relearn section numbers.
I am confident, none the less, that the conveniences of having
the related provisions accumulated under a single chapter in a
logically organized volume will quickly win more loyal friends
for the r.ew code than the old could ever have hoped to accumulate.
Conclusion
I would not want to leave with you a false sense of optimism
with regard to the achievements of the 1954 codification. It
will not solve everybody's tax problems. No quid: nor easy
solutions are available to everybody's problems; and if they were
available they probably could not be put iirco effect immediately,
if only because of budgetary limitations.
It is well to recognize also that no tax bill, however wellconceived and well-drafted, would please everyone. Our economy
is too diverse and the inter-relationships of economic interest
too intricate to permit a satisfactory resolution of every taxpayer's proolem -without bogging down into a mire of hopeless
statutory complexity.

/n f

- 12 Some very important sections of present law, involving
frequently criticized provisions, are being carried over largely
unchanged into the new code. This is true of most of the excise
provisions.
Moreover, some income tax provisions which would have been
changed under the House bill were restored to their old form in
the Senate. The time available was too short for working out
some of the problems which developed while the bill was before
the Finance Committee.
A number of areas have been reserved for further study before
recommendations for change are submitted to the Congress. In his
Budget Message, the President specifically placed in this category
the taxation of capital gains and losses, taxation of oil and mining
industries, the tax treatment of cooperatives and tax-exempt
organizations, and provisions relating to retirement income to
people not covered by pension plans. These important subjects are
necessarily reserved for future legislation.
I conclude with a few words recently written about this legislation by Secretary Humphrey:
"In my opinion, our tax system is a key to whether
or not this country stays strong and growing. This
program will breathe into American industry a new
incentive that will create more and better jobs, more
and better products, and above all, will bring our money
affairs to a level of sanity."

0O0

•&&u v^-jag?^^
Extracts from remarks by Marlon B. Folsom,
Under Secretary of the Treasury, before the
National Council for Community Improvement,
IIMsuaJiimilll, '' H^rmirjday, June 24, 1954

tgmmm

/^*j7/v"
f^U^f^''

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 billion 40 years ago, $42 billion 20
years ago, and are now about #296 billion. The 1953 debt was about 81 percent
of our 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 from #9.4 billion last year to an estimated
$3.3 in the fiscal year which ends next week. Expenditures have been cut $7
billion this year with another $5 billion cut projected for next year. These
reductions in expenditures 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. Bo corresponding reduction has been made in the
Federal grant-in-aid contributions for State and local governments.
These grants-in-aid amount 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 expenditures.
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 has amounted to a much higher percentage* These grant-in-aid programs
have accumulated for years. Many originated pieceineal with small, initial
appropriations to encourage particular activities. Twenty-five years ago all
Federal aids to State and local governments totaled well under #200 million*
This whole question of grants-in-aid is one of the most important parts
of the work of the Commission on Intergovernmental Relations. All of us
on the Commission agree that it is time to have an objective appraisal of
this whole system to see what should be done with it — to find out, first,
whether the functions are really necessary; what level of government can
best perform these functions; and, assuming we must continue some grant-inaid 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 Commission is developing objective, constructive recommendations.
The fundamental importance of strengthening local governments will receive
heavy weight in the Commission's deliberations as it does in the
Administration's program*

r^C^

301
TREASURY DEPARTMENT
Washington
FOR RELEASE ON DELIVERY

H-519

Extracts from remarks by Marion B. Folsom,
Under Secretary of the Treasury, before the
National Council for Community Improvement,
Mayflower Hotel, Washington, D. C , 7 P.M.,
EDT, Thursday, June 24, 1954.
The financial condition of our governments —
and local — must be strengthened.

Federal, State

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 billion 40 years ago, $42 billion 20 years ago, and are now
about $296 billion. The 1953 debt was about 81 percent of our
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 from $9.4 billion last
year to an estimated $3.3 in the fiscal year which ends next week.
Expenditures have been cut $7 billion this year with another
$5 billion cut projected for next year. These reductions in
expenditures 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 governments.
These grants-in-aid amount 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 expenditures.

3Ui;

- 2 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 has amounted to a much higher
percentage. These grant-in-aid programs have accumulated for
years. Many originated piece-meal with small, initial
appropriations to encourage particular activities. Twenty-five
years ago all Federal aids to State and local governments totaled
well under $200 million.
This whole question of grants-in-aid is one of the most
important parts of the work of the Commission on Intergovernmental
Relations. All of us on the Commission agree that it is time to
have an objective appraisal of this whole system to see what
should be done with it — to find out, first, whether the
functions are really necessary; what level of government can
best perform 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 Commission is developing objective, constructive
recommendations. The fundamental Importance of strengthening
local governments will receive heavy weight in the Commission's
deliberations as it does in the Administration's program.

oOo

3
Statement showing comparison of principal items of assets and liabilities of active national
banks as of April 15, 1954, December 31, 1953, and April 20, 1933
(in thousands of dollars) ;-J
:
s
:
:Increase or decrease:Increase or decrease
l April 15, :
Dec. 31,
: April 20,
isince Dec. 31. 1953 Islnce Apr* 20. 1953
1
1954
1
1953
:
1953
1 Amount
: Percent: Amount
: Percent
Bumber of banks*
k9Sk8
4,864
4,890
-16
-42
ASSETS
Commercial and industrial loans. 16,075,240
Loans on real ©state
8,991.931
All other loans, including
overdrafts
13.199.073
Total gross loans....
38,266,224
Less valuation reserves....
562,576
Bet loans...
37.703.648
U. S. Government securities:
Direct obligations
34.560,499
Obligations folly guaranteed..
26,997
Total U. S. Securities
3^.587.4^6
Obligations of States and
political subdivisions
6,783,450
Other bonds, notes and debentures
1,936,535
Corporate stocks, including
stocks of I'ed.Reserve banks...
209,664
Total securities
43,517.1^5
Total loans and securities.; 81,220,793
Currency and coin..
1.260,549
Reserve with J'ed.Reserve banks*. 12,638,566
Balances with other banks
10,303,967
Total cash, balances with
other banks, including reserve balances and cash items
in process of collection.... 24,203.082
Othor assets
1,475*022
Total assets
106,898,897
• •

16,468,455
8,786,686

16,785,508
8,391,963

-393*215
205,225

13.243.586
38.498,727
554.581
37.944,146

11,920,912
37.098,383
531.577
36,566,806

-44.513
-232,503
7.995
-2*10,498

-.34 1,278,161
-.60 1,167.841
1*44
30.999
-.63 1,136,842

10.72
3.15
5**3
3lll~

35.563.334
25,429
35*588.763

33.449,868
21.283
33.471.151

-1,002,835
1,568
-1.001.267

-2.82 1,110,631
6.17
5.71*1
-2.81 1,116,345

3.32
26.85
3.33

6,330,265

6,314,550

453,185

7.16

468,900

7.43

2,086,723

2,068,282

-150,188

-7.20

-131.747

-6.37

204,482
44,210,233
82,154,379
1,292,254
13,130,530
12,122,73**

199,290
42,053.273
78,620,079
1,289,432
13,013,129
9,678.259

5*182
-693.0-8
-933*586
-31.705
-491,964
-1.818,767

2.53
10.374
-1.57 1.463,872
^ 1 4 2,600,714
=2?*5
-28,883
-3*75 -374,563
-15.00
625.708

5.21
3.48~
3.*^T
-2.24
-2*88
6.47

26.545.518
l,41o,802
110,116,699

23.980.820
1,337.701
103.938.600

-2.342.1*36
58.220
-3,217,802

-8*82
222.262
4.11
137.321
-2.92 2,960,297

*93
3jj27
1085

. i . ••

•

-2*39
2.3k

1 . 1

-710,268
599.9*J8

-4.23
7.15

ijfc——maama^mmmm,

Comparison of principal items of assets and liabilities of national banks - Oontinusd
4
(In thousands of dollars)
1—
""""""
J
\
""J
"~
:Increase or decrease : Increase or decrease
. Apr. 25, j Dec. 31, . Apr. 20, :since Dec* 31. 1953 :since Apr* 20, 1953
5
1954 »
1953 : 1993
:~~Iiount : Percent :"~lmouni '.Percent
LIABILITIES
Deposits of individuals, partner-

'-»•->

^M .^??!!!?*? 53.886,291 56.614,391 •n.m.w -2.728,100 .*.« 172.494 .32
iS_T
23.4248gg
22,863,011 21,881,788
561,817
2.W 1.5»*3.040
s
B^^Trf^'^'a^^;::::::::
v.nej\.n
w.m
2.376,27s
-350,049 -12.42
90,900
Postal savings deposits
Deposits of States and political
lubdiTisions
Deposits of Dank

13.236

13,»*2

13.^23

-206 -1.53

6.917.357
9.143,411

.793.6>
H>.155.9*2

6.451.277
8,428,765

7.05
3.«

123.723
-1,012,531

-187 -1-39
%,,-/- ft-n 7 5S>
1.82 *66,080
7.28
-9.97 714,646 S.H6

°TsMars.S"he£fietc:).:?! i^TT.-T 1.689.586 1.470,809 -212,249 -12.56 6,528 M
Total deposits.....
9t.329.638100.947,233 9>t,336,l37-3,617.595
Bills payable, rediscounts, and
S^Ji8^168 f°r . 319.^66 14,851 626,840 304,6l5 2iW.l4 -307,374 -49.04
^Slt^ao"^.:^!!.. 99.278,757 102,707.183 96,760,910 -3.^28,426 -3.34 2,517,847 2_60

-3-58 2,993.501

3^17

CAPITAL ACC00MTS

"•SEte*?* ^.953 5.211 5.619 -258 -4.95 -666 -11.85
^fr6*—---::::::::::::::
2.347:728
2,296.545
2,249,223
Siy;
2,352,681
2101.757
2,254.842
0

a^J ™-

;

S^ed'-Drofits
Sefertes
!".'.'.'. WW.......

. . 3.&.W
l.385.3>*6
2T3&5

i.^.W3
1.310.761
273.555

5__i82
50.924

2.21

37337355fes2^
1,300.877
264,011

74,585
-90

5.69
-.03

z&—?___i—j_a
97.839 4.34;

S O T 7^7
84.469
6.49
9,4^ 3_5§

S-S£!!:.!!^!!:.^.. ^^ 5.107.759 «.«.«« 159.700 _a gujg MO
SotaHapiU account
7.6a0.l4o
7.409.516 7,177.690
4

210,624

""oSita^aocounts!! 106.898.897 UO.ll6.699 103,9^8.600 -3,217.802 -2.92 2,960,297 h*L\
Percent
Percent
Percent
RATIOS:
TT.s. Oovtt securities to total

l.sk W.450

6.16

3^4.

- 2 -

to $13,200,000,000 were about the same as December, >ut were up 11 percent
over a year ago* She percentage of loans and discounts to total assets on
-April 15, 1954 was 35»27 in comparison with 34.46 in December and 35.I8 in
April 1953.
Investments of the banks in United States Government obligations on
April 15, 1954 aggregated $34,600,000,000 (including $27,000,000 guaranteed
obligations), a decrease of $1,000,000,000 since December. These investments
were 32 percent of total assets, the same as in December* Other bonds, stocks
and securities of $8,900,000,000, which included obligations of States and
political subdivisions of $6,800,000,000, were $300,000,000 more than in
December, and $348,000,000 more than held in April last year. Total securities

held amounting to $43,500,000,000 were $693,000,000 less than the December 1953
figure*
Cash of $1,300,000,000, reserve with Federal Reserve banks of $12,600,000,00

and balances with other banks (including cash items in process of collection) o

$10,300,000,000, a total of $24,200,000,000, showed a decrease of $2,300,000,000
since December.
The capital stock of the banks on .April 15, 1954 was $2,350,000,000, including nearly $5,000,000 of preferred stock* Surplus was $3,600,000,000, undivided profits $1,^0,000,000, and capital reserves $270,000,000, or a total of
$5,270,000,000. Total capital accounts of $7,620,000,000, which were 7.83
percent of total deposits, were $200,000,000 more than In December when they
were 7.34 percent of total deposits.

0
J

**' '^

TREASURY DEPARTMENT
Comptroller of the Currency
Washington

RELEASE MORNING NEWSPAP1BRS
Monday, June 28, 1954.

H-520

She total assets of national banks on April 15, 1954 amounted to nearly
$107,000,000,000, it was announced today by Comptroller of the Currency
Hay M* Gidney. She returns covered the 4,848 active national banks in the
United States and possessions. She assets were $3,200,000,000 below the amount
reported by the 4,864 active banks on December 31, 1953* the date of the previous
call, but were nearly $3,000,000,000 over the aggregate reported by the 4,890
active banks as of April 20, 1953. the date of the corresponding call a year ago.
She deposits of the banks on April 15 were $97,330,000,000, a decrease of
$3,600,000,000 since December, but an increase of nearly $3,000,000,000 in the
year. Included in the recent deposit figures were demand deposits of individuals
partnerships, and corporations of $53,900,000,000, which decreased $2,700,000,000
or 5 percent, since December, and time deposits of individuals, partnerships, and
corporations of $23,^00,000,000, which increased $562,000,000* Deposits of the
United States Government of $2,500,000,000 decreased $350,000,000 since
December; deposits of States and political subdivisions of $6,900,000,000 showed
an increase of $124,000,000; and deposits of banks amounted to $9,100,000,000,
a decrease of $1,000,000,000* Postal savings were $13,000,000 and certified
and cashiers1 checks, etc., were $1,500,000,000.
Net loans and discounts on April 15, 1954 were $37,700,000,000, a decreass
of $2*10,000,000 since December, but $1,100,000,000, or 3 percent, above the
April figure last year. Commercial and industrial loans were $16,000,000,000,
a decrease of nearly $*K30,000,000 since December*

Loans on real estate of

$9,000,000,000 were up 2.3 percent. Other loans, including consumer loans to
individuals, loans to farmers, to brokers and dealers and others for the
purpose of purchasing and carrying securities, and to banks, etc*, amounting

TREASURY DEPARTMENT
Comptroller
the Currency
>ller of tht
Washington
RELEASE MORNING NEWSPAPERS
Monday, June 26, 1954.

•»'/^

H-520

The total assets of national banks on April 15, 1954 amounted to nearly
$107,000,000,000, It was announced today by Comptroller of the Currency
Ray M. Gidney. She returns covered the 4,84$ active national banks in the
United States and possessions* The assets were $3,200,000,000 below the amount

reported by the 4,864 active banks on December 31, 1953» *be date of the previous
call, but were nearly $3,000,000,000 over the aggregate reported by the 4,890

active banks as of April 20, 1953. the date of the corresponding call a year ago.
She deposits of the banks on April 15 were $97,330,000,000, a decrease of
$3,600,000,000 since December, but an increase of nearly $3,000,000,000 In the

year. Included in the recent deposit figures were demand deposits of individuals,

partnerships, and corporations of $53,900,000,000, which decreased $2,700,000,000

or 5 percent, since December, and time deposits of individuals, partnerships, and
corporations of $23,^00,000,000, which increased $562,000,000* Deposits of the
United States Government of $2,500,000,000 decreased $350,000,000 since
December; deposits of States and political subdivisions of $6,900,000,000 showed
an increase of $124,000,000; and deposits of banks amounted to $9,100,000,000,
a decrease of $1,000,000,000. Postal savings were $13,000,000 and certified
and cashiers1 checks, etc., were $1,500,000,000.
Net loans and discounts on April 15, 1954 were $37,700,000,000, a decrease
of $2*40,000,000 since December, but $1,100,000,000, or 3 percent, above the
April figure last year. Commercial and industrial loans were $16,000,000,000,
a decrease of nearly $^00,000,000 since December. Loans on real estate of
$9,000,000,000 were up 2.3 percent. Other loans, including consumer loans to
individuals, loans to farmers, to brokers and dealers and others for the
purpose of purchasing and carrying securities, and to banks, etc., amounting

3fiH
-

to $13,200,000,000 were about the same as December, but were up 11 percent
over a year ago. The percentage of loans and discounts to total assets on
April 15, 1954 was 35.27 in comparison with 34.46 in December and 35*18 in
April 1953.
Investments of the banks in United States Government obligations on
April 15, 1954 aggregated $34,600,000,000 (including $27,000,000 guaranteed
obligations), a decrease of $1,000,000,000 since December*

These investments

were 32 percent of total assets, the same as in December. Other bonds, stocks
and securities of $8,900,000,000, which included obligations of States and
political subdivisions of $6,800,000,000, were $300,000,000 more than in
December, and $3*48,000,000 more than held in April last year. Total securities
held amounting to $43,500,000,000 were $693,000,000 less than the December 1953
figure*
Cash of $1,300,000,000, reserve with Federal Reserve banks of $12,600,000,000
and balances with other banks (including cash items in process of collection) of
$10,300,000,000, a total of $24,200,000,000, showed a decrease of $2,300,000,000
since December*
She capital stock of the banks on April 15, 1954 was $2,350,000,000, including nearly $5,000,000 of preferred stock. Surplus was $3,600,000,000, undivided profits $1,1*00,000,000, and capital reserves $270,000,000, or a total of
$5,270,000,000. Sotal capital accounts of $7,620,000,000, which were 7.83
percent of total deposits, were $200,000,000 more than in December when they
were 7*34 percent of total deposits*

cr:

Statement showing comparison of principal items of assets and liabilities of active national
banks as of April 15, 1954. December 31. 1953. aad April 20, 1953
(In thousands of dollars)
...1«III»«H»

Number of banks,

April 15,
1954
4,848

ASSETS
Commercial and industrial loans. 16,075.2^0
Loans on real estate..
8,9911911
All other loans, including
overdrafts.
13.3-99.073
Total grosa loans..........• 38,266,224
Less valuation reserves....
562,576
Net loans
37.703.648
U. S. Government securities*
Direct obligations
34,560,499
Obligations fully guaranteed..
26,997
Total U. S. Securities
34.5^7,49b
Obligations of States and
political subdivisions.
6,783,450
Other bonds, notes and debentures
1.936.535
Corporate stocks, including
stocks of Fed.Reoerve banks...
209,664
Total securities............ 43,517,145
Total loans and securities.. 81,220,793
Currency and coin
« 1,260,549
Reserve with Ped.Res9rve banks.. 12,638,566
Balances with other banks
10,303.967
Total cash, balances with
other banks, including reserve balances and cash items
in process of collection.... 24,203.082
Other assets
1,475,022
Total assets....••«.••...... 106,898,897

m .n » I M I «

Dec. 31,
1953
4,864

1 IT m

1111 mimmi »

Li m

•• » m

llncrease or decrease:Increase or decrease
tsince Dec. 31. 1953 Isince Apr. 20, 1953.
: Amount
; Percent? Amount

.In. i tmn.

April 20,
1953
4,890

-42

-16

.710,268
599,948

-4.23
7.15

1,278,161
1,167,841
1.44
30,999
-.63 1,136,842

10.72
3.15

1,110,631
5,714
i±±L
"^2781 17116,345

3.32
26. S5
3.33

16,468,455
8,786,686

16,785.508
8,391.963

-393.215
205,225

-2.39
2.34

13.243,586
3S.498.727
554.581
37.944,146

11,920,912
37,098,383
53L577
36,566,806

-44,513
-232,503
7,995
-240,498

-.34

35.563.334
25,429
35.588,763

33.449,868
21,283
"33,471.151

-1,002,835
1.568
,
-1,001,267

6,330.265

6,314.550

453.185

7.16

468,900

2,086,723

2,068,282

-150,188

-7.20

-131.747

204,482
44,210,233
82,1547379
1,292,254
I3.130.53p
12.122.734

199.290
42,053.273
78,620,079
1,289,432
13,013,129
9.678,259

26,545,518
1.416,802
110,116,699

23,980.820
1.337.701
103.938.600

-2.82

3.33

7.43
-6.37

5,182
2.53
-693.088
~3757
-9 33. 5S£~~ ~-i.l¥"
-31.705
-2.115
-491,964
-3.75
-1.818.767 ^l&OO

10,374
1.463.872
2,600,714
-28,883
-374.563
625*708

3.3i
-2.24
-2.88
6.1*7

-2.342,436
58,220
-3,217.802

222.262
137.321
2.960,297

10.27
2.25

-8.82
4.11
-2.92

5.21

J^z

fSl

-eO':

Comparison of principal items of assets and liabilities of national banks - Continued
(In thousands of dollars;
, _
—
—
— ~ ~
—
—
— j —
sincreaseor decrease {Increase or decrease
Apr. 15, . Sec. 3 L j A®** 20, .since Dec. 31, 1953 isincejgr. 20, 1953
1954
.
1953
$
1953
riiaount
t ^erceni^I^rccmnt
.Percent,
LIABILITIES

leposits of individuals, partnerships, and corporations!
Demand.
•••...
Time
)eposits of U. S. Government
Postal savings deposits.
•
Deposits of States and political
subdivlsions.........«..•••••••
Deposits of banks,
Other deposits (certified and . * • » • •
cashiers* checksf etc.)*....
Total deposits......
Bills payable, rediscounts, and
other liabilities for
. a • . • .
borrowed money
Other liabilities....
Total liabilities, excluding
capital accounts...••••.«*«
CAPITAL ACCOUNTS
Capital stocks
Preferred....••.••••••••••»•••»"
Common.
Total
Surplus...
Undivided profits
Reserves
».»»»
Total surplus, profits, and
reserves.
*
Total capital accounts.
RATIOS:Total liabilities and
capital
accountsto total
U.S. Gov*t
securities
e S
Lolni & discountsHo^oUi-4s S ei S :
Ganiial accounts to total deposits,

53,886,291
23,424,828
2,467,178
13,236
6,917,357
9,143,411
1,477,337
97,329~338~

53.713,797
21,881,788
2,376,273
13,423

•2,728,100
561,817
-350,049
-206

-4.82
2.46
-12.42
-1.53

172,494
1.543,040
90,900
-187

.32
7.05
3.33
-1.39

6,451,277
8,428,765

123,723
•1,012,531

1.82
-9.97

466,080
714,646

7.22
8.48

1,689,536 1,470,809
100,9477233" "94,336,137

-212,249
•3,617,595

-12.56
-3.53

6,528
2,993,501

.44
3.17

-307,374
-168,280

-49.04
-9.36

56,614,391
22,863,011
2,817,227
13,442
6,793,634
10,155,942

319,466
1,629,653

14,851
1.745,099

626,840
1,797,933

99,278,757

102,707,133

96,760,910

304,615 2,051.14
-115,446
-6.62
-3,423,426

-3.34

2,517,347

2^60

-258
51,182
50,924
85,205
74,585
-90

-4.95
2,23
2.21
"2^2*
5.69
-.03

-666
98.505
97,339
^47
250,688
84,46
9,45

-11.85
4.38

7.00

4,953
2,347,728
2,352,681
3,60S, 64^~
1,335,346
273.465

5,211
j,296,546
2,
1,310,761
273,555

5.619
2^249,223
2,254,342
37357T960"
1,300,877
264,011

5.267,459
7,620,liK)

5,107,759
7,409,516

4,922,848
7.177,690

159.700
210,624

3.13_
2.84

344,611
442,450

"6716

106,893,897
Percent

110,116,699

103,933,600
Percent

-3,217,802

-2.92

2.960,297

2.85

Percent

2.20

32.36
7.34

HOTE: Minus sign denotes decrease.

6.49
3.58

3iu
- 3 -

but shall bo GXorj.pt from all taxation now or hereafter imposed on the principa

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. Under Sections U2 and 117 (a) (1) of the Internal
Revenue Code, as amended by Section 21$ of the Revenue Act of 1941, the amount
of discount at which bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold, redeemed or otherwise disposed of, and
such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the
price paid for such bills, whether on original issue or on subsequent purchase,
and the amount actually received either upon sale or redemption at maturity

during the taxable year for v/hich the return is made, as ordinary gain or loss.
Revised
Treasury Department Circular No. Ul8,/aa3cxixxffi2fcazi, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their
issue. Copies of the circular may be obtained from any Federal Reserve Bank
or Branch.

payment of 2 percent of the face amount of Treasury bills applied for, unless

Those submitting tenders Tsill be advised of the acceptance or rejection thereo
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, in whole or in "oart, and his action in any such respect
shall be final. Subject to these reservations, non-competitive tenders for
£200,000 or less without stated price from any one bidder will be accepted
in full 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 July 8, 1954 , ln cash or
other immediately available funds or in a like face amount of Treasury bills
maturing July 8, 1954 . Cash and exchange tenders will receive equal
treatment. Cash adjustments vri.ll 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 frathe 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 havrj any special treatment, as such, un-\er 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,

3'/

TREASURY DEPARTMENT
Washington

FOR RELEASE, MORNI^iG ME7TSPAPERS,
Tuesdayv June 29,_19$k_
The Treasury Department^ by this public notice, invites tenders for
& 1,500*000*000 , or thereabouts, of 91 -day Treasury bills, for cash and
in exchange for Treasury bills maturing July 8, X9gU >

the amount of

$ l9k99»9$3,000 , "t° D e issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated July 8, 1954

and will mature October 7, 1954 , when the face

—1SSE

—

amount will be payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5^000, ^10,000, $100,000, $500,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o'clock p.m., Eastern/sSacsafcaxat time, Friday, July 2. 1951*
Tenders will 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 special envelopes which will be
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust corjoanies and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, June 29, 1954.
The Treasury Department, by this public notice, invites tenders
for $1,500,000,000, or thereabouts, of 91 -day Treasury bills, for
cash and in exchange for Treasury bills maturing July 8, 1954,
in the amount of $1,499,953,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated July 8, 1954,
and will mature October 7> 1954, W h e n the face amount will be
payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Daylight Saving time^
Friday, July 2. 1954.
Tenders will 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. ge, 99.925. Fractions may not be used. It is
urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by Federal Reserve Banks or
'.Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price
range of accepted bids. Those submitting tenders will be advised of
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders
in whole or in part, and his action in any such respect shall be
final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted

- 2competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on July 8, 1954,
in cash or other immediately available funds
or in a like face amount of Treasury bills maturing July 8, 1954.
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, shall not hav<
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 o]
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. Under Sections k2 and 117 (a) (r) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the
amount of discount at which bills issued hereunder are sold shall nc
be considered to accrue until such bills shall be sold, redeemed or
otherwise disposed of, and ouch bills are excluded from consideratic
as capital assets. Accordingly, the owner of Treasury bills (other
than life insurance companies) Issued hereunder need include in his
income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase,
and the ajnount actually 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 bills and govern the
oOo
conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

< i4

RELEASE *ORMD*G HEWSPAPERS,
Taeaday, Jung 29, 1954.

i^-

fha Treasury Department announced last evenlAft; that taa tenders for H,5OO,QOO,00(
**al Reserve Bank
or thereaboata, et 91-day Treasury bills to be dated July 1 and to nature September 30,
b. 1954.
195k, which ware of farad on Jans 24, vara opanad at the Federal Reserve Banks oa
J\sie 28*
The details of this issue are as follows;
Total applied for - $2,275,303,000
Total accepted
- 1,500,516,000 (includes 1175,325,000 entered on as.J
iKmoonpetitive basis sad accepted in
fall at the average price shown below; tary
Average price
- 99*837 Equivalent rata of discount approx- 0*3*6? par arcs*
1 be exempt
Range of accepted competitive bids: (Excepting one tender of $20,000) or
si of the
High
- 99.8*5 Equivalent rata of discount approx. 0.613* par
ham
- 99,835
•
a
•
•
»
0.653* ~
,u be
(5k percent of t ha amount bid for at the low arias was accepted) venue
Federal Weemrve
Histrie t

Total
Applied for

fatal
Accepted

Boston
New lork
fttiladelphla
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco

$
29,3*6 000
1,7©*, 768 000
32,285 000
53,860 000
13,17k 000
2k,5k7 000
17k,897 000
33»0k6
9,238 000
39,22k 000
000

$
2$$$96,000
1,131,912,000
17,285,000
3*,260,000
10,17k,000
22,128,000
129,257,000
31,538,000
^ 8,700,000
37,22k,000
13,k03 ,000
50,739,000

8^,005,000
$2,275,303,000

$1,500,516,000

fatal

u9m%

3 "is

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, June 29, 1954.

H-522

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated July 1 and to mature September 30, 1954, which were offered on
June 24, were opened at the Federal Reserve Banks on June 26.
The details of this issue are as follows:
Total applied for - $2,275,303,000
1,500,516,000 (includes $175,325,000
Total accepted
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.837 Equivalent rate of discount approx.
0.646$ per annum
Range of accepted competitive bids: (Excepting one tender of
$20,000)
High - 99.845 Equivalent rate of discount approx
0.613$ per annum
Low
- 99.835 Equivalent rate of discount approx
0.653$ peP annum
(54 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco TOTAL

Total
Applied for
$
29,396,000
1,764,768,000
32,285,000
53,860,000
13,174,000
24,547,000
174,897,000
33,046,000
9,238,000
39,224,000
1^,863,000
84,005,000
$2,275,303,000
0O0

Total
Accepted
$
28,896,000
1,111,912,000
17,285,000
39,260,000
10,174,000
22,128,000
129,257,000
31,538,000
8,700,000
37,224,000
13,403,000
50,739,000
$1,500,516,000

?H ~~S

The Treasury Department today announced the appointment
of Julian F. Cannon as Chief Disbursing Officer succeeding
Paul D. Banning, who retires "on June 30. Mr. Cannon has
been Assistant Chief Disbursing Officer since April, 1947.
.^-"-"fts Chief Disbursing Officer, Mr. Cannon will direct the
operations of the Treasury's Division of Disbursement and
its 26 regional disbursing offices in the United States,
Puerto Rico, Alaska, Honolulu and the Philippines. The
Division makes payments for all agencies of the executive
branch of the government except the military, the Post Office,
|

the U.S. JfershalS and a few Government corporations.
Mr. Cannon entered foho g w

the

Post Office Department in 1923 and later was purchasing and
disbursing officer of the Bureau of Mines Helium Plants at
Fort Worth and Amarillo, Texas. In 1935 he transferred to the
Treasury!s Division of Disbursement and wasNteioigualgQ disbursing
officer for the Worko Progress Aflm.lriintration.at Atlanta,
Georgia.

From 1940 to 1947 he was a field supervisor of the

Disbursement Division with headquarters in Washington.
Mr. Cannon was born in Ashdown, Arkansas on August 6, 1901,
and received his early education in the public schools of
Little Rock. He holds the degree oJ

in Accounting from

Southeastern University in Washington, D.C. and has done
graduate work in accounting.
'/tomM**^*^*^
fyfj* t9-*j*. v *

TREASURY DEPARTMENT
WASHINGTON, D.C

RELEASE,
Tuesdai^ June 29* 1954.
JJIREDIATE

H-523

The Treasury Department today announced the appointment
of Julian F. Cannon as Chief Disbursing Officer succeeding
Paul D. Banning, whose retirement on June 30 was announced
recently. Mr. Cannon has been Assistant Chief Disbursing
Officer since April, 1947.
Mr. Cannon entered the Post Office Department in 1923 and
later was purchasing and disbursing officer of the Bureau of
Mines Helium Plants at Fort Worth and Amarillo, Texas. In 1935
he transferred to the Treasury's Division of Disbursement and
was named disbursing officer for the Saergency Relief program
at Atlanta, Georgia. From 1940 to 1947 he was a field supervisor
of the Disbursement Division with headquarters in Washington.
Mr. Cannon was born in Ashdown, Arkansas on August 6, 1901
and received his early education in the public schools of
*
Little Rock. He holds the degree of bachelor of commercial
science in accounting from Southeastern university in
Washington, D. C. and has done graduate work in accounting.
As Chief Disbursing Officer, Mr. Cannon will direct the
operations of tne Treasury's Division of Disbursement and
its 26 regional disbursing offices in the United States,
Puerto Rico, Alaska, Honolulu and the Philippines. The Division
makes payments for all agencies of the executive branch of the
government except the military, the Post Office, the
U. S. marshals and a few government corporations.

oOo

:i:n

y^ Wy
EEL&A-S& MQRBXIGt VaWFAJPaW^

ft* fmtwmy

Mpmthmm

taaotiaNfd last evemlug that the takers for 11*500,000,00

or item**** it MMqf 'rrea^iry bills to be datmd My % md tm mtmm October 7,
IffSs* which iw offered on Mm 29, mm mpmmail at the federal Mm-marm B&i&s on
July 2*
Thm details of tills Imra ®it a» 1'ollewss

nonsesapstitivs basis and accepted ia
Awnuei wi^# *» ^*$Mr B^^wAiWfr s^pNi (NniiwNNBHy^ppliK W*iW*3tpmr anziaa

trt** *» f^^/SmmS a^k%?am^Wa% V&tm mt
H

Urn

at tha wmmit MM fW at Vm 1m price wag

TmMl
kwhlMA ta$

Miriam.

mahm
2**2*7*000
22,80***
9*599*600
l&lTiyOQO
*»§tt*0QQ
MOfeOQO
IX#C^0»OOO

Fhil^ielph^

Gimn&Mk%&

at*

®m
tmimt

II*Q$&000
3lt§3Xf77?tOOO
33,227*000
20,?01,000

•t77f»ooo
Ufc»330*QQ0
2k*8Bl,OD0

Mco*ooo
23*090,000

13»50>ooo
t3^Qq*«MG*

TREASURY DEPARTMENT

3-i x

WASHINGTON, D.C
RELEASE MORI-TING NEWSPAPERS,
Saturday, July 3, 195**.

H-524

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated July 8 and to mature October 7, 1954, which were offered on
June 29, were opened at the Federal Reserve Banks on July 2.
The details of this issue are as follows:
Total applied for - $2,198,797,000
Total accepted
- 1,500,251,000 (includes $168,123,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.830/ Equivalent rate of discount approx.
0.671$ per annum
Range of accepted competitive bids:
High - 99.845 Equivalent rate of discount approx.
0.613$ per annum
Low
- 99-828 Equivalent rate of discount approx.
0.680$ per annum
(l8 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
TOTAL
San Francisco

Total
Applied for
$
31,995,000
1,656,557,000
28,227,000
22,541,000
9,599,000
15,676,000
235,936,000
24,881,000
s,503,000
21,090,000
42,693,000
42,198,797,000
101,099.000

0O0

Total
Accepted
$ 24,055,000
1,031,777,000
13,227,000
20,901,000
8,779,000
14,330,000
207,416,000
24,881,000
8,203,000
21,090,000
33,593,000
91,999,000
$1,500,251,000

IMMMHATS Tfgr.R*sie
Jnoodoy, July ft 19$k

~<^±

"Ehe Bureau of Customs announced today that
at the opening on July 1, 19^U, of the absolute
global quota of 186,000,000 pounds on rye, rye
flour, and rye seal, prescribed in the President's
Proclamation of March 31, 19$k9 a total of l82,0i|li,9l8
pounds of lye «as presented for entry. Authorizations
have been issued for release of the total quantity
presented for entry on July 1*

3>-i

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Wednesday, July 7, 1954.

H-525

The Bureau of Customs announced today
that at the opening on July 1, 1954, of the
absolute global quota of 186,000,000 pounds
on rye, rye flour, and rye meal, prescribed
in the Presidents Proclamation of March 31,
1954, a total of 182,044,918 pounds of rye
was presented for entry.

Authorizations

have been issued for release of the total
quantity presented for entry on July 1.

oOo

- 3-

but shall bo 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. Under Sections 42 and 117 (a) (1) of the Internal
Revenue Code, as amended by Section 115 of the Revenue Act of 19bl, the amount
of discount at which bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold, redeemed or otherwise disposed of, and
such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the
price paid for such bills, whether on ori«ynal issue or on subsequent purchase,
and the amount actually received either upon sale or redemption at maturity
during the taxable year for which the return is made, as ordinary gain or loss.
Revised
Treasury Department Circular No. i;l8, / w ^ g p ^ P , and this notice, prescribe the terms of the Treasury bills and govern the conditions of their
issue. Copies of the circular may be obtained from any Federal Reserve Bank
or Branch.

*'6
- 2 -

payment of 2 percent of the face amount of Treasury bills applied for, unless

the tenders are accompanied by an express guaranty of payment by an incorporated
bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, f ollowing "which public announcement Trill be made
by ths Treasury Department of the amount and price range of accepted bids.
Those submitting tenders mil be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, in whole or in part, arr. his action in any such respect
shall be final. Subject to these r-osolvations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be accepted
in full 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 July 1$9 19$k , in cash or

JBEJE
other immediately available funds or in a like face amount of Treasury bills
maturing July 15* 19$k • Cash and exchange tenders will receive equal
treatment. Cash adjustments will be made for differences between the par
value of maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or gain from
the sale or other disposition of the bills, shall not have any exemption,
as such, and loss from the sale or other disposition of Treasury bills shall
not have any special tr-atn-nt, as sv.ch, \mycr 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,

ffimttTi

lasMngtoit

~~ -S

A ^

8, ISflt
Sfse Treasury Departeent, by t M s public notice, invites tenders for
$ 1^00,000,000

or thereabouts^ of 91 -day Treasury bills, for cash and

an eacreiTigB A ar Treasury bills ^raring

Jnly 35L IS&k

, in t£ie amount of

$ l«5Pl,27lu000 j to be Issued on a discount basis under competitive and noncosEjetitive bldcHng as hereinafter provided. Sbe iiiUs of ttds series will be
dated July 35, 15$1| , andwill feature October 3|u 3S5li * liea tlie face
fe i f f
• *
amount will be payable wLtbout interest. Tbey ml_L be issued ia bearer faim only,
and in denoMnatlons of |1,0G0, fg,0QO, |10,OOO, $100,(XX), i^X),000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Beserve Banks and Branches up to the
Daylight Saving
closing hourj two o'clock p.s., Eastem/BBoizBfc tisse, Monday, July 12, 1 2 &
^

Tenders will not be received at toe Treasury Department, l&sMiigtdn. Each tender
must be far an even ffioltiple of §1,000, and in the case of competitive tenders

the price offered Must be expressed on the basis of 100, iota not more than three
decimals, e. g., 99,92.$. Fractions nay not be used. It is urged that tenders

be siade on the printed farms and forwarded in the special envelopes which will b
supplied by Federal Reserve Banks or Branches on application therefor.
Others tlian banking institutions will not be permitted to subadLt tenders
except for their own account. Tenders will be received without deposit from
incorporated banks am* trust cornrjanies an? from responsible and recognized
dsalsrs In izaFisteent securities. Tenders fraa oth3rs nust be accompanied by

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Thursday, July 8, 1954.
The Treasury Department, by this public notice, invites tenders
for $1,500,000,000 or thereabouts, of 91-day Treasury bills, for
cash and in exchange for Treasury bills maturing July 15, 1954,
in the amount of $1,501,274,000, t o b e i SSue d on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated July 15, 1954,
and will mature October 14, 1954, when the face amount will be
payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two ofclock p.m., Eastern Daylight Saving time,
Monday, July 12, 1954.
Tenders will 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
special envelopes which will be supplied by Federal Reserve Banks or
'.Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price
range of accepted bids. Those submitting tenders will be advised of
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders
in whole or in part, and his action in any such respect shall be
final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted

- 2 competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on July ly>, 19y>-,
in cash or other immediately available funds
or in a like face amount of Treasury bills maturing July 15, 1954
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, shall not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills shall not have any special treatment, as such,
under 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. Under Sections 42 and 117 (a) (lb) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the
amount of discount at v/hich bills issued hereunder are sold shall not
be considered to accrue until such bills shall be sold, redeemed or
otherwise disposed of, and such bills are excluded from consideration
as capital assets. Accordingly, the owner of Treasury bills (other
than life insurance companies) Issued hereunder need include in his
income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase,
and the amount actually 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. 4l8, revised, and this
notice, prescribe the terms of the
Treasury bills and govern the
0O0
conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

STATUTORY DEBT LIMITATION

AS O F June 30, 1954

July 12A95**

Section 21 fit Second Liberty B o n d Act, as amended, provides that the face amount of obligations issued under authority
cizla : Act, and the face amount of obligations guaranteed as to principal and-interest by the United States (except such goared obligations as m a y be held, by the Secretary of the Treasury), "shall not exceed in the aggregate $275,000,000,000
Ace at Jane 2 6 , 1946; U.S.C., title 31, sec, 757b), outstanding at any one time. For purposes of rhis section the current redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holder
s"^ ! be considered a s its face amount.'''
Tb.e following table s h o w s the face a meant of obligations outstanding and the face amount which can still be issued under
fhig limitation;

$275,000,000,000

Total face amount that may be outstanding ac any one time

Obligations-issued nrcer Second Liberty Bond Act, as amended
Interest - bearing:
Treasury bills

$ 19,515.-I7,ooo
13,-0-,999,000
37,03-3,02it4oo $

Certificates of indebtedness
Treasury notes

74,959,^37,400

Bonds Treasury
Savings (current redemp. value)
Depositary
Luresr~enr series
Special Funds Certificates of ind rDtecness.
Treasury notes

80,377,951^50
58,061,132,024
411,215,500
12.774.995.000
23,59^,667,000
13.63^.105.400

Total interest-bearing
Mar-red. interest-ceased
Bearing n o interest:
Uniter" r-ates sa.fnrs s~aams_

151,625,293,97^
_ 42,228,772,400
268,813,503,77^
432,706,310

50,^00,827
1,2^,319

Excess profits tax refund, bonds
Special notes of the United States:

1.411,000,000 1,462,653,1^
270,708,863,230

Latemat'l Monetary Fund serie s __
Total
Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F J L A .
Matured, interest-ceased

80,415,386
1.026.000

81,441,336
270.790.304.616
4.209.695.384

Graal total outstanding.
Balance face amount of obligations issuable under above authority

Reconcilement with Statement of the Public Debt

Jane 30. 1954
(Date)

(Daily Statement of the United States Treasury,

Jttne 30.
1954
(Date)

Outstanding Total gross public debt

Guaranteed obligations not o w n e d by the Treasury
Total gross public debt and guaranteed obligations
D e d u c t - other outstanding public debt obligations not subject to debt limitation

H-527

271,259,599,108
8l.U4l.386
271,341,040,494
550.735.878
270,790,304,616

STATUTORY DEBT LIMITATION
AS OF Jjm§L20i_ 12J& '

JulyJLgj!^-

Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under authority
of that Act, and the face amount of obligations guaranteed as to principal and interest by the United States (except such guaranteed obligations as may be held by the Secretary of the Treasury), "shall not exceed in the aggregate $275,000,000,000
(Act of June 26, 19.46; U.S.C., title 31, sec. 757b), outstanding at any one time. For purposes of this section the current redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holder
shall be considered as its face amount."
The following table shows the face amount of obligations outstanding and the face amount which can still be issued under
this limitatioa.
Total face amount that may be outstanding at any one time
ip275 » 0 0 0 , 0 0 0 , 0 0 0
Outstanding
Obligations.issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills
, $ 19,515,417,000
Certificates of indebtedness
18,404, 999,000
Treasury notes
37 f 039 , 021,400
$ 74,959,437 ,400
Bonds Treasury
„..„..
80,377.951.^50
Savings (current redemp. value)
jO , 061,132,024
Depositary
411,215,500
Investment series~ ~J
12,774,995.000
151,625,293,974
Special Funds Certificates of indebtedness
Treasury notes
. ~
Total interest-bearing
Matured, interest-ceased
|_
Bearing no interest:
United States savings stamps .„
Excess profits tax refund bonds
Special notes of the United States:
Internat'l Monetary Fund series
Total
Z. ,
Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A.
_
Matured, interest-ceased
_ _....

. „2 8 , 5948 667, 000
13 . 634 .105.400
_

42,228,772,400
2 6 8 ,813 , 5 0 3 » 7 7 4
432,706,310

lir»n QO*7
50,^00,0^7
1,252,319
1,411,000,000

1,462,653,146
270, 708,863,230

_ .
n.
80,415,386
1.026.000

Grand total outstanding
Balance face amount of obligations issuable under above authority
Reconcilement with Statement of the Public Debt

81,441,386
„

JlUie 3.0, 1.953
(Date)

(Daily Statement of the United States Treasury,

JySk©...3.Q.j......i.9J5.^.
(Date)

Outstanding Total gross public de bt
„
„
Guaranteed obligations not owned by the Treasury
Total gross public debt and guaranteed obligations
__
Deduct- other outstanding public debt obligations not subject to debt limitation

H-527

270 . 790 .304, 6l6
4 , 20 9» 69 5» 384

_..

271,259, 599 ,108
81,441.386
271,34l, 040 ,494
550 , 735*878
270,790,304,616

As ft

2 Other Mint activities coming under his direction include
the issuance of licenses under the Gold Regulations, the
manufacture of coins for foreign governments, the acquiring
of gold and silver bullion, and manufacture of medals for
the armed services.

(A biographical sketch of Mr. Brett is attached.)

J.J

He also was a director of Crane Steelware, Ltd.

of Quebec City, Quebec, and AllianceWare, Ltd. of Vancouver,
British Columbia.
Before going to Alliance, Mr. Brett was connected for
22 years with the Enamel Products Co. of Cleveland, first as
an industrial engineer and later as an officer and director.
He is a veteran of World War I.
As head of the Bureau of the Mint of the Treasury
Department, Mr. Brett will supervise all coinage operations
at the Philadelphia, Denver and San Francisco Mints, and
the distribution, of the coins which these institutions
manufacture.
* He is responsible for the safeguarding of the Government's
holdings of gold and silver, stored at the Fort Knox, Ky.,
Gold Depository, the West Point, N.Y., Silver Depository, the
three Mints, and the New York and Seattle Assay Offices.

TREASURY DEPARTMENT
WASHINGTON, D

RELEASn,
Friday, July 9> 195^.

H-528

Secretary Humphrey today administered the oath of
office as Director of the Mint to William H. Brett of
Alliance, Ohio.
Prior to his nomination on June 29 by President
Eisenhower to be Mint Director, Mr. Brett was Vice
President and Director of AllianceWare, Inc., manufacturers
of sanitary ware at Alliance. He also was a director of
Crane Steelware, Ltd. of Quebec City, Quebec, and
AllianceWare, Ltd. of Vancouver, British Columbia.
Before going to Alliance, Mr. Brett was connected
for 22 years with the Enamel Products Co. of Cleveland,
first as an industrial engineer and later as an officer
and director. He is a veteran of World War I.
As head of the Bureau of the Mint of the Treasury
Department, Mr. Brett villi supervise all coinage operations
at the Philadelphia, Denver and San Francisco Mints, and
the distribution of the coins which these institutions
manufacture.
He is responsible for the safeguarding of the
Government's holdings of gold and silver, stored at the
Fort Knox, Ky., Gold Depository, the West Point, N.Y.,
Silver Depository, the three Mints, and the Mew York and
Seattle Assay Offices.
Other Mint activities coming under his direction
include the issuance of licenses under the Gold Regulations,
the manufacture of coins for foreign governments, the
acquiring of gold and silver bullion, and manufacture of
medals for the armed services.
(a biographical sketch of Mr. Brett is attached.)

WILLIAM HOWARD BRETT
Director of the Mint

3.iu

William H. Brett was born December 31* 1893 at Cleveland,
Ohio, the son of William Howard and Alice Allen Brett. His
preliminary education was in the public schools of Cleveland.
He attended Dartmouth College and received the A.B. degree in
1916, spending his last year in the Tuck School of Business
Administration.
During his schooling he worked as a civil engineer and
following graduation was with the Perfection Spring Company in
Cleveland until the outbreak of World War I. He attended the
First Officers Training Camp at Port Myer, Virginia, and served
as a first lieutenant until December 1918.
Immediately following the war he joined the staff of Scovell
Wellington and Company as an industrial engineer in the
Cleveland office. In this capacity he did professional work for
the Enamel Products Company of Cleveland, and in 1921 joined the
Enamel Products Company organization becoming an officer and
Director. He remained with this company until 19^3.
Mr. Brett moved to Alliance, Ohio, in 19^3 and became
Vice President and Director of AllianceWare, Inc. He served
in this capacity until June 29, 195k, when he resigned to accept
appointment by President Eisenhower to the Treasury Department
post of Director of the Mint. In recent years he has also been
Director of Crane Steelware, Ltd. of Quebec City, Quebec, and
AllianceWare, Ltd. of Vancouver, B.C. He has been a member of
the Porcelain Enamel Institute, American Society of Sanitary
Engineers, American Institute of Management, and the American
Ordnance Association. He is a Director of Rotary, of the
Y.M.C.A., and a Trustee of the Alliance Chamber of Commerce.
Mr. Brett's father was Head of the Cleveland Public
Libraries from 1883 to 1918 and was President of the American
Library Association and the founder and first Dean of the Library
College of Western Reserve University.
In 1917 Mr. Brett and Catherine Ruth Connolly of Cleveland
were married in Chevy Chase, Maryland. They have two sons,
W. H. Brett, B.S., Massachusetts Institute of Technology, 1948,
now Superintendent of Personnel in New Kensington, Pennsylvania,
for Alcoa, and P. L. Brett, A.B., Harvard University, 1950, now
a sales engineer with Olin Industries, Inc., Alton, Illinois.
Mr. Brett was nominated on June 29, 1954, by President
Eisenhower to be Director of the Mint. The nomination was
confirmed by the Senate on July 2, and Mr. Brett was sworn in
0O0
by Treasury
July
9, 1954Secretary Humphrey on July 9.

yyy

mmm wmmm n m i W i
Vm tmmmw

Dzpzxtmnt .mmmmmd

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t**t * • * » * w f «r 13.,$m 9 ®m 9 m*

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UA# «WUrii «n ««@»# mi IsO^r I, mm mpawsd at tot Federal l§fe®m Banke mi j&Sr 12,
Tim oaUua of tote 1*** ®s»® aa ftUmttt
ft** applted tmrn * •tft90btat«000
T«UX a*Mpte*
•* l # S» f t«J t *»
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- m.HI flptetteto mtm at dtemmut «pt*mu oyfOli pm

at a&&a0had ®$$M&%i.tlwa tddmt
- 99*%$ ittltoteak rata at 4tetau»t tgpptwu §.#U|S per mm

at mm

hUtm mttkwUm pr loe ml
Total

8tetftet

toil

SSUfte
W*Q«tOOD

Mtt,<tir
fooo
thmWaWO
$7$m,oy)
&93M§mm
it®f0?7#OQ0
ft, toot*

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$kn»m

ottr

;»6,ttr»oc*
ffjU*»000

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*2,290,lifl5#oe»

tl,jM»l&»0Q0

10*^000

two.

I0b)or«ooo
J?#?0?f0OO

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, July 13, 1954.

H-529

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated July 15 and to mature October Ik, 1954, which were offered
on July 8, were opened at the Federal Reserve Banks on July 12.
The details of this issue are as follows:
Total applied for - $2,290,405,000
1,500,255,000 (includes $229,370,000
Total accepted
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.823 Equivalent rate of discount approx.
0.701$ per annum
Range of accepted competitive bids:
High

- 99.845 Equivalent rate of discount approx.
0.6i3$ per annum
Low
- 99.819 Equivalent rate of discount approx.
0.716$ per annum
(60 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
TOTAL
San Francisco

Total
Applied for
$
42,041,000
1,652,057,000
33,307,000
37,707,000
16,327,000
35,720,000
220,077,000
32,492,000
'13,351,000
61,138,000
41,365,000
$2,290,405,000
104,823,000

Total
Accepted
40,841,000
944,257,000
18,307,000
37,707,000
16,327,000
35,420,000
176,427,000
32,492,000
13,351,000
58,138,000
37,165,000
$1,500,255,000
89,823,000

-3-

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 dis-

count at -which Treasury bills are originally sold by the United States shall be
considered to be interest. Under Sections 42 and 117 (a) (1) of the Internal
Revenue Code, as amended by Section 11$ of the Revenue Act of 1941, the amount
of discount at which bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold, redeemed or othervi/ise disposed of, and
such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the

price paid for such bills, vrhcthcr on original issue or on subsequent purchase,
and the amount actually received either upon sale or redemption at maturity
during the taxable year for which the return is made, as ordinary gain or loss.
Revised
Treasury Department Circular No. Ul8,/aaLraacmisEt, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their
issue. Copies of the circular may be obtained from any Federal Reserve Bank
or Branch.

3:<a
,

- 2 -

payment of 2 percent of the face amount of Treasury bills applied for, unless
the tenders are accompanied by an express guaranty of payment by an incorporated
bank or trust company.
Immediately after the closing hour, tenders m i l be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made
by the Treasury Department of the amount and price range of accepted bids.
Those submitting tenders will be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, in -whole or in part, and his action in any such respect
shall be final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be accepted
in full 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

July 22. 195b

, i n cash or

other immediately available funds or in a like face amount of Treasury bills
maturing

Jaly 22. 19f>li

• Cash and exchange tenders will receive equal

treatment. Cash adjustments will be made for differences between the par
value of maturing bills accepted in exchange and the issue price of the now
bills.
The income derived from Treasury bills, whether interest or gain from
the sale or other disposition of the bills, shall not have any exemption,
as such, and loss from the sale or other disposition of Treasury bills shall
not have any social troitnont, 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,

.lib

ijjKgTREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, July 1$9 19$k
The Treasury Department, by this public notice, invites tenders for
$1.500.000.000 , or thereabouts, of 91 -day Treasury bills, for cash and

&x ~~~

~~W~~

in exchange for Treasury bills maturing

July 22. 1954
, in the amount of
xSx
§ lt501.452t000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated _July_22,_ 1954 , and'will mature October 21, 1954 , when the face

amount will be payable without interest. They will be issued in bearer form only,
and in denominations of &1,000, $5,000, £>10,000, $100,000, $500,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o'clock p.m., Eastern/ttanBtaodt time, Monday, July 19, 1954

—

Tenders will 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*92$. Fractions may not be used. It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which will be
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by

RELEASE MORNING NEWSPAPERS,
Thursday, July 15, 1954.

H-530

The Treasury Department, by this public notice, invites tenders
for $ 1,500,000,000, or thereabouts, of 91-day Treasury bills, for
cash and In exchange for Treasury bills maturing July 22, 1954,
in the amount of $L, 501,452,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated July 22, 1954,
and will mature October 21, 1954, when the face amount will be
payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o»clock p.m., Eastern Daylight Saving time,
Monday, July 19, 1954.
Tenders will 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
special envelopes which will be supplied by Federal Reserve Banks or
.Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account. Tenders will be reoeived
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of, the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price
range of accepted bids. Those submitting tenders will be advised of
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders
in whole or in part, and his action In any such respect shall be
final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be
accepted In full at the average price (in three decimals) of accepted

- 2competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on July 22, 1954,
in cash or other immediately available funds
or in a like face amount of Treasury bills maturing July 22, 1954.
Cash and exchange 'tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the Issue price of the new
bills.
The Income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, shall not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills shall not have any special treatment, as such,
under 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. Under Sections 42 and 117 (a) (l) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the
amount of discount at which bills Issued hereunder are sold shall not
be considered to accrue until such bills shall be sold, redeemed or
otherwise disposed of, and such bills are excluded from consideration
as capital assets. Accordingly, the owner of Treasury bills (other
than life Insurance companies) Issued hereunder need include in his
income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase,
and the amount actually 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. 4l8, revised, and this
notice, prescribe the terms of the
Treasury bills and govern the
oOo
conditions of their Issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

JaLj 69 1954

The following transactions were ?&de in direct and guaranteed securities et
the GoYerrraent for Treasury investments and other accounts during the south et
June, 1954a

Sales

US,521,200.00

Purchases 3,053,000*0®
$45^463,200.00

(Sgd) Charles I. Branson
Chief, Investments Branch
Division of Deposits i Inrertaaents

TREASURY DEPARTMENT
O-

WASHINGTON, D.C

<±\. & ?
IMMEDIATE RELEASE,

**7 /M> *********
During the month of^iate, 1954, market
transactions in direct and guaranteed
securities of the government for Treasury
investment and other accounts resulted in
net I M M S H S T B by the Treasury Department of

. * V < **.? *°°

0O0

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Thursday, July 15, 1954.

H-531

During the month of June, 1954, market
transactions in direct and guaranteed
securities of the government for Treasury
investment and other accounts resulted in
net sales by the Treasury Department of
$^5,463,200.

oOo

a*1

TREASURY DEPARTMENT
Washington

^R IMMEDIATE RELEASE,
Thursday, July 15, 1954.
July 14. 19^4

H-532

The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and -wheat flour authorized to be entered, or withdrawn
from warehouse, for consumption under the import quotas established in the
President's proclamation of May 28, 194l, as modified by the President*s
proclamation of April 13, 1942, for the 12 months commencing May 29, 1954,
as follows?

Country
of
Origin

•Canada
China
Hungary
Hong Kong
Japan
United Kingdom
Australia
Germany
Syria
New Zealand
Chile
Netherlands
Argentina
Italy
Cuba^
France
Greece
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
Guatemala
Brazil
Union of Soviet
Socialist Republics
Belgium

TSheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established :
Imoorts
Quota
sEsy 29~, 19$k, to
: July 13. 19fl
(Bushels)
(Bushels)
795,000
—

100
-

100
100
—

100
2,000

100
—

1,000
—

100
—
_>
—
—
-

1,000

100
100
100
100

795,000

Established s
Imports
Quota
s May 29, 19$ks
i to July 13, 1$
(pounds)
(Pounds)
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

3,815,000

TREASURY DEPARTMENT
Washington

M./

Thursday, July 15, 1954.

H-532

The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour authorized to be entered, or withdrawn
from warehouse, for consumption under the import quotas established in the
President's proclamation of May 23, 194l, as modified by the president's
proclamation of April 13, 1942, for the 12 months commencing May 29, 1954,
as follows?

Country
Of
Origin

Wheat
t
!
" Established :
Imports
Quota
tKay 29, 1954, to
s July 13, 1954
(Bushels'
(Bushels)
i /;jwu

China
Hungary
Hong'Kong
Japan
United Kingdom
Australia
Germany
Syria
New Zealand
Chile
Netherlands
Argentina
Italy
Cuba,
France
Greece
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
Guatemala
Brazil
Union of Soviet
Socialist Republics
Belgium

100
-

100
100
~

100
2,000

100
-

1,000
-

100
_.
-..

1,000

100
100
100
100

795,000

s
s
:
:

Ifiheat Hour, semolina,
crushed or cracked
wheat, and similar
wheat products

: Established s
Imports
s
Quota
s May 29, 1954«
:
* to July 13, 195!
(Pounds)
(Pounds)
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

3,815,000

IMMEDIATE RELEASE,
THURSDAY, JULY 1 5 , 1954.

3 aA

TREASURY DEPARTMENT
Washington

H-533
The Bureau of Customs announced today preliminary figures showing the imports for
consumption of the commodities listed below within quota limitations from the beginnin
of the quota periods to July 3, 1954, inclusive, as follows:

"Whole milk, fresh or sour

Calendar Year

Unit :
'
of
: Imports as o;
Quantity: July 3* 19$k
3,000,000 Gallon
26,179

Cream •«•••..............,

Calendar Year

1,500,000 Gallon

Butter ••••••

April 1, 1954July 15, 1954

5,000,000 Pound

Commodity

Fish, fresh or frozen, filleted,
etc., cod, haddock, hake, pollock, cusk, and rosefish •••••.

Calendar Year

fcLte or Irish potatoes:
Certified seed ••
Other •••••.•••••••...•

12 months from
Sept. 15, 1953

Cattle, less than 200 lbs. each ... 12 months from
April 1, 1954

33,950,386 Pound

150,000,000
60,000,000

Pound

200,000 Head

403
52,005

23,452,114

100,429,072
Quota Filled
3,415

Cattle, 700 lbs. or more each
(other than dairy cows)

July 1, 1954Sept. 30, 1954

120,000 Head

Yfelnuts

Calendar Year

5,000,000 Pound

4,240,330

Almonds, shelled, blanched,
roasted, or otherwise prepared
or preserved ••••••••••..•••••,

12 months from
Oct. 1, 1953

7,000,000 Pound

6,980,249

Peanuts, whether shelled, not
shelled, blanched, salted, prepared, or preserved (including
roasted peanuts, but not including peanut butter) •••••••.

12 months from
July 1, 1954

1,709,000 Pound

••••••

Peanut Oil
•KOats, hulled and unhulled and unhulled ground •••»••••
..<
•K-BRye, rye flour and rye meal

295

12 months from
July 1, 1954
80,000,000 Pound
Dec. 23, 19532,500,000
Sept. 30, 1954
July 1, 1954June 30, 1955

Bushel

186,000,000 Pound

2,463,629
183,875,139

{!) Imports for consumption at the quota rate are limited to 25,462,791 pounds during
the first nine months of the calendar year.
#
Imports through July 13, 19549 from countries other than Canada
** Imports through July 13, 1954•

.144
ILlEDlAia ^Zjy^t
Thursday. July 15, 1954.

TREASURY DEPARTMENT
Washington

i J Unit :
Commodity
Wiole milk, fresh or sour

: Period and Quantity
: of
: imports as of
:
: Quantity: July 3, 1954
Calendar Year
3,000,000 Gallon
26,179

Cream Calendar Year 1,500,000 Gallon 403
Butter April 1, 1954- 5,000,000 Pound 52,005
July 15, 1954
Fish, fresh or frozen, filleted,
etc., cod, haddock, hake, pollock, cusk, and rosefish
• Calendar Year
UShite or Irish potatoes:
Certified seed ••
•
Other

33,950,386

Pound

• 12 months from 150,000,000
Sept. 15, 1953
60,000,000

Pound

. «
23,452,UV '

100,429,072
Quota Filled

Cattle, less than 200 lbs. each ... 12 months from .200,000 Head 3,4l5
April 1, 1954
Cattle, 700 lbs. or more each July 1, 1954- 120,000 Head 295
(other than dairy cows)
Sept. 30, 1954
TBalnuts ••••• •• Calendar Year 5,000,000 Pound 4,240,130
Almonds, shelled, blanched,
roasted, or otherwise prepared
or preserved

12 months from
Oct. 1, 1953

7,000,000 Pound

Peanuts, whether shelled, not
shelled, blanched, salted, prepared, or preserved (including
roasted peanuts, but not in12 months from
eluding peanut butter)
•.. July 1, 1954

1,709,000 Pound

Peanut Oil ••••••••••••.•••.••..••• 12 months from
July 1, 1954
80,000,000

Pound •

*0ats, hulled and unhulled and un- Dec. 23, 1953hulled ground
Sept. 30, 1954
2,500,000

Bushel

Hftye, rye flour and rye meal ••••••• July 1, 1954June 30, 1955
186,000,000

Pound

6,980,249

2,463,629

183,875,139

(i; Imports for consumption at the quota rate are limited to 25,462,791 pounds during
the first nine months of the calendar year.
*
Imports through July 13, 1954, from countries other than Canada
** Imports through July 13, 1954.

&>.

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Thursday, July 15, 1954.

H-534

The Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities on which quotas were prescribed by
the Philippine Trade Act of 1946, from January 1, 1954, to July 3, 1954,
inclusive, as follows:

Products of the
Philippines
Buttons

Established Quota
Quantity

850,000

Unit
of
Quantity;
Gross

Imports as of
July 3, 1954

438,615

Cigars ..........

200,000,000

Number

Coconut Oil . ...<

448,000,000

Pound

67,115,729

Cordage ..••••••.

6,000,000

Pound

1,162,202

Rice ••

i,o4o,ooo

Pound

,904,000,000

Pound

(Refined .,
Sugars
(Unrefined
Tobacco ••••••..i

1,667,485

1,419,784
1,216,131,995
6,500,000

Pound

765,785

TREASURY DEPARTMENT
Washington

3&H
H-534

IMMEDIATE RELEASE,
Thursday, July 15, 1954.

The Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities on which quotas were prescribed by
the Philippine Trade Act of 1946, from January 1, 1954, to July 3, 1954,
inclusive, as follows:

Products of the
Philippines
Buttons

:
:

Established Quota :
Unit :
Quantity
:
of
:
: Quantity:
850,000

Gross

Imports as of

July 3, 1954
438,615

Cigars

200,000,000

Number

Coconut Oil

448,000,000

Pound

67,115,729

Cordage ••

6,000,000

Pound

1,162,202

Rice

1,040,000

Pound

1,904,000,000

Pound

(Refined ...
Sugars
(Unrefined •
Tobacco ••••

1,667,485

1,419,784
1,216,131,995
6,500,000

Pound

765,785

•^2"
COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having -a staple of less than 1-3/16 inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE* Provided, however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more
-in staple--length in the ease- of the following countries-s United Kingdom, France, Netherlands.
Switzerland, Belgium, Germany, and Italys
Established
TOTAL QUOTA

Country of Origin
United Kingdom .
Canada . . . . .
France .
...
British India o •
Netherlands o o «
Switzerland .
o
o
o
Belgium
Japan 0 0 . . . .
China o o o o o
o
e
Egypt
o
o
.
o
.
Cuba
o o a .
Germany
Italy o o o o

« .
a »
o .
a a

4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21,263
5,482,509

l/ Included in total imports, column 2.
Prepared in the Bureau of Customs.

Total Imports
Sept. 20, 19535 to
July 13, 1954
660,858
239,690

Established
33-1/3% of
Total Quota
1,441,152

Imports
Sept. 20, 1953
to July 13, 1954
570,491

75,807
54,487
16,668
1,099

6,544
23,940
7,088
1,010,374

22,747
14,796
12,853

16,668
1,099

25,443
7,088

23,940
7,088

1,599,886

619,286

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Thursday, July 15, 1954.

H-535

Preliminary data on imports for consumption of cotton and eotton waste,chargeable to the quotas
established by the President's Proclamation of September 5, 1939, as amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/4"
Imports Sept. 20, 1953. to July 13, 1954. inclusive
Country of Origin,

Established Quota

Egypt and the AngloEgyptian Sudan . . •
Peru . . . . . . . . .
British India
China
Mexico •
Brazil
Union of Soviet
Socialist Republics •
Argentina .
Haiti
Ecuador . .

783,816
247,952
2,003,483
1,370,791
8,883,259
618,723
475,124
5,203
237
9,333

Country of Origin -

Imports

50,352
34,455
6,267,730
618,723
431,975

Honduras
Paraguay . . . . . . .
Colombia .
Iraq
British East Africa . ,
Netherlands E. Indies.
Barbados
l/0ther British W. Indies
Nigeria
2/0ther British W. Africa
/2/0ther French Africa . .
Algeria and Tunisia •

Established Quota
752
871
124
195
2,240
71,388
21,321
5,377
16,004
689

1/ Other than Barbados,' Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
2/ Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less than 3/4"
Imports Sept. 20. 1953, to July 3, 1954

Cotton 1-1/8" or more, but less than l-ll/l6n
Imports Feb. 1, 1954.. to July 13. 1Q5A

Established Quota (Global)

Imports

Established Quota (Global) Imports

70,000,000

10,337,897

45,656,420 27,932,859

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Thursday, July 1 5 , 1954.

H-535

Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the President'-s Proclamation of September 5, 1939, as amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/4"
'Imports Sept. 20, 1953, to July 13, 1954, inclusive
Country of Origin,

Established Quota

Egypt and the AngloEgyptian Sudan . . ,
Peru
,
British India . . . .
China
Mexico
,
Brazil
,
Union of Soviet
Socialist Republics
Argentina
Haiti
Ecuador

783,816
247,952
2,003,483
1,370,791
8,883,259
618,723
475,124
5,203

237
9,333

Country of Origin

Imports

50,352
34,455
-

6,267,780
618,723
431,975
-

Honduras
Paraguay . . . . . . .
Colombia
Iraq . . .
British East Africa . .
Netherlands E. Indies.
Barbados . . . . . . .
l/0ther British W. Indies
Nigeria . . . . . .
2/0ther British W. Africa
jj/Other French Africa . .
Algeria and Tunisia .

Established Quota
752
871
124
195
2,240
71,388
21,321
5,377
16,004
689

Imports
10,337,897

Cotton 1-1/8" or more, but less than 1-11/16"
Imports Feb. 1, 1954. to July 13. IQ'.L
Established Quota (Global)
45,656,420

Imports
27,982,859

-aCOTTON WASTES
(In pounds)
COTTON CARD STRIPS made-from cotton having-a staple of less than 1-3/16 inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUEi Provided, however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more
in staple- length in the case of the following countriess United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italya

Country of Origin
United Kingdom
Canada . . . .
France . . . .
British India .
Netherlands . .
Switzerland . „
Belgium . . . .
Japan
China .
Egypt .
Cuba . ,
Ge rmany
Italy
o

Established
TOTAL QUOTA

Total Imports
Sept. 20, 1953, to
July 13, 1954

4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21,263

660,858
239,690

5,482,509

1,010,374

1/ Included in total imports, column 2.
Prepared in the Bureau of Customs.

Established s
Imports
33-1/3% of 8 Sept. 20, 1953
Total Quota : to July 13, 1954
1,441,152

570,491

75,807
54,487
16,668
1,099

6,544
23,940
7,088

22,747
14,796
12,853

25,443
-JL088.
1,599,886

16,668
1,099

23,940
7,083
619,286

35u
IMMEDIATE BELEASS,
Friday, July 16, 1954.

Secretary Humphrey announced today that on Wednesday, July 21,
the Treasury will offer for cash subscription i3~l/2 billion of
1 percent Tax Anticipation Certificates at Indebtaaaess to be dated
August 2, 1954, maturing March 22, 1955, and receivable at par plus
accrued Interest to maturity in payment of income and profits taxes
due on Mareh 15, 1955* the books will be open only for one day, on
July 21.
Subscriptions from commercial banks, which for this purpose are
defined as banks accepting demand deposits, for,their own account,
will be received without deposit,featwill be re#i**icted in each
case to an amount not exceeding one-half of the eembined capital,
surplus and undivided profits of the subscribing bank as of June 30,
1954. A payment of 10 percent at the amount of certificates subscribed for, not subject to withdrawal until after allotment, must
be made on all other subscriptions. The new certificated may be
paid for by credit in treasury fax and Loan Accounts up to 75 percent of the amounts allotted.
||
Commercial, banks and other lenders are requestedrto refrain
from making unsecured loans or loans collateralized in whole or in
part by the certificates subscribed for, to cover tne 10 percent
deposits required to be paid when subscriptions are entered. A
certification by the subscribing bank that no such loan has been
made will be required en each subscription entered by it for account
of its customers. A certification that the bank has no beneficial
interest in Its customers* subscriptions, and that no customers &ave
any beneficial interest in the bankfs own subscription, will^alsc be
required.
"
., ft ^
$
Near the end of July the Treasury will announce an exchange
offering open to holders of the issues of Treasury certificates of
indebtedness maturing August 15 in the amount of $2,788 million and
September 15 in the amount of $ii,724 million, on whieh it is planned
that the subscription books will open early in August. It is proposed to offer holders mi these maturing securities the choice
between a oae*year certificate and a security with a longer maturity,
either a long note or a short bond.

TREASURY DEPARTMENT
WASHINGTON, D.
IMMEDIATE RELEASE,
Friday, July ±6. 1954.

H-53o

Secretary Humphrey announced today that on Wednesday, July 21,
the Treasury will offer for cash subscription $3-1/2 billion of
1 percent Tax Anticipation Certificates of Indebtedness to be dated
August 2, 1954, maturing March 22, 1955, and receivable at par plus
accrued interest to maturity in payment of income and profits taxes
due on March 15, 1955. The books will be open only for one day,
on July 21.
Subscriptions from commercial banks, which for this purpose are
defined as banks accepting demand deposits, for their own account,
will be received without deposit, but will be restricted in each
case to an amount not exceeding one-half of the combined capital,
surplus and undivided profits of the subscribing bank as of June 30,
1954. A payr.er:t of 10 percent of the amount of certificates subscribed for, not subject to withdrawal until after allotment, must
be made on all other subscriptions. The new certificates may be
paid for by credit in Treasury Tax and Loan Accounts up to 75 percent of the amounts allotted.
Commercial banks and other lenders are requested to refrain
from making unsecured loans or loans collateralized in whole or in
part by the certificates subscribed for, to cover the 10 percent
deposits required to be paid when subscriptions are entered.
A certification by the subscribing bank that no such loan has been
made will be required on each subscription entered by it for account
of its customers. A certification that the bank has no beneficial
interest in its customers1 subscriptions, and that no customers have
any beneficial interest in the bank's own subscription, will also
be required.
Near the end of July the Treasury will announce an exchange
offering open to holders of the issues of Treasury certificates of
indebtedness maturing August 15 in the amount of $2,788 million and
September 15 in the amount of $4,724 million, on which it is
planned that the subscription books will open early in August.
It is proposed to offer holders of these maturing securities the
choice between a one-year certificate and a security with a longer
maturity, either a long note oroOo
a short bond.

Afj"37

RELEASE wmm. KSSSPAKBS,

Tti« f m r a q r noporUrat iniwaasjA Sunt ovoalat mat thm tmmdmm

tar

$l9$O0§QM$(m

mr toombort*, mi 9X-*gr tm&mry toUXi to to dattd Mgr 22 au*l to a*tw» Oetobor 21,
HBif «Hl©h wre offmmd m m& 3$, «w mpmmd at the fmdmwal mmtwwm Banks on ^r XI
^e details of tfat* ioooo «r* aa follows;

m^a3mat

.(IMSSJIM #a$ f tea, oao
in
nffncanpffitl t1 vn basis ami
full at the «ram@» price shown below)
mtm at discount approx. o.Wt
m

*High
99MS Equivalent rate of discount appro*. 0.653^ pmr
Low
(kk percent of the

bid for at the. low price

District
York
Philadelphia
Cleveland

Total
ADolied for

Total

I >t»NM»o

39,61^,000
900.0liO.000
jTmfwm wmwy WWW

$%dk$,®m
io9m9oQo

Atlanta

.QUO

St*

IMtttOOO
39,0lrf,<X>0
tt,Uft,ooo
2k,06l»0Q0
30,670*000

City

fcMMoo

Dallas
OTAL

P f t®l t 3B.iO0O

•000
jOOO
$1,500,623,000

MtSS

TREASURY DEPARTMENT
WASHINGTON, D.
RELEASE MORNING NEWSPAPERS,
Tuesday, July 20. 1954.

H-537

The Treasury Department announced last evening that the tenders
for $1,500,000,000, of thereabouts, of 91-day Treasury bills to be
dated July 22 and to mature October 21, 1954, which were offered on
July 15, were opened at the Federal Reserve Banks on July ±9*
The details of this issue are as follows:
Total applied for - $2,288,393,000
Total accepted
- 1,500,623,000 (includes $215,201,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.815/ Equivalent rate of discount approx.
0.731$ per annual
Range of accepted competitive bids:
High - 99.835 Equivalent rate of discount approx.
0.653$ per annum
Low
- 99.812 Equivalent rate of discount approx.
0.744$ per annum
(44 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District
Applied for
Boston $ 42,764,000 $ 39,644,000
New York
1,634,510,000
Philadelphia
40,729,000
Cleveland
39,045,000
Richmond
10,598,000
Atlanta
24,173,000
Chicago
237,990,000
St. Louis
30,670,000
Minneapolis
9,695,000
Kansas City
53,461,000
Dallas
51,399,000
San Francisco
113,359,000
TOTAL $2,288,393,000 $1,500,623,000
0O0

Accepted
900,040,000
25,729,000
39,045,000
10,150,000
24,061,000
220,170,000
30,670,000
9,495,000
52,761,000
43,299,000
105,559,000

-3 -

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. Under Sections l\2 and 117 (a) (1) of the Internal
Revenue Code, as amended by Section 21$ of the Revenue Act of 1941, the amount
of discount at which bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold, redeemed or othervrise disposed of, and
such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the
price paid for such bills, whether on original issue or on subsequent purchase,
and the amount actually received either upon sale or redemption at maturity

during the taxable year for Yfhich the return is made, as ordinary gain or loss.
Revised
Treasury Department Circular No. 4l8,/aS3Q8SSSSfcssfc, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their
issue. Copies of the circular may be obtained from any Federal Reserve Bank
or Branch.

3*>S

- 2 -

parent of 2 percent of the face amount of Treasury bills applied for, unless

cash or

other immediately available funds or in a like face amount of Treasury bills
maturing Jtaly 29. 19$k • Cash and exchange tenders will receive equal
treatment. Cash adjustments will be made for differences between the par
value of maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or gain from
the sale or other disposition of the bills, shall not have any exemption,
as such, and loss ft on 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,

TREASURY DEPARTMENT
Washington
-3GR RELEA.SE, MORNING NEWSPAPERS,
Thgrsday,„ July 22, 195k

_- fSj^'

The Treasury Department, by this public notice, invites tenders for
$l,5>OOaOQOaOQO 3 or thereabouts, of 91 -day Treasury bills, for cash and
\

in exchange for Treasury bills maturing

—J}

July 29, 1954

—-

, in the amount of

aSt — —

l>1.5Q2,532»QQQ
, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated July 29, 19$k , and mil mature October 28, 19$k , when the face

amount will be payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o'clock p.m., Eastern/skaaribaok time, lioaday, July 26, 1954
Tenders will 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*92$. Fractions may not be used. It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which will be
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by

TREASURY DEPARTMENT

WASHINGTON, D.C

RELEASE MORNING NEWSPAPERS,
Thursday, July 22, 1954.

H-53o

The Treasury Department, by this public notice, invites tenders
for $1,500,000,000, 0 r thereabouts, of 91-day Treasury bills, for
cash and in exchange for Treasury bills maturing July 29, 1954,
in the amount of $1,502,532,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated J u l y 2 9 , 1954,
and will mature October 28, 1954, when the face amount will be
payable without interest. They will be issued In bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Daylight Saving time,
Monday, July 26, 1954.
Tenders will 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
special envelopes which will be supplied by Federal Reserve Banks or
..Branches on application therefor.
Others than banking Institutions will not be permitted to submit
tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price
range of accepted bids. Those submitting tenders will be advised of
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders
in whole or in part, and his action In any such respect shall be
final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted

- 2competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on
<Juiy dy9 iyt>4, l n c a 3 h o r o t h e r immediately available funds
or in a like face amount of Treasury bills maturing July 29, 1954.
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price of the new
bills.
*
The Income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, shall not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills shall not have any special treatment, as such,
under 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. Under Sections 42 and 117 (a) (l) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the
amount of discount at which bills issued hereunder are sold shall not
be considered to accrue until such bills shall be sold, redeemed or
otherwise disposed"of, and such bills are excluded from consideration
as capital assets. Accordingly, the owner of Treasury bills (other
than life insurance companies) Issued hereunder need include in his
income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase,
and the amount actually 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. 4l8, revised, and this
notice, prescribe the terms of the
Treasury bills and govern the
oOo
conditions of their Issiie. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

^tt

IMMEDIATE RELEASE
July 23. 195U
The Bureau of Customs has announced that
due to recent adjustments under the absolute global
quota of 186,000,000 pounds on rye, rye flour, and
rye meal which opened on July 1, 1954, there were
8,875,181 pounds open under the quota at the close
of business on July 22*

TREASURY DEPARTMENT

WASHINGTON, D.C

IMMEDIATE RELEASE,
Friday, July 23, 1954.

H-539

The Bureau of Customs has announced that
due to' recent adjustments under the absolute
global quota of 186,000,000 pounds on rye,
rye flour, and rye meal which opened on
July 1, 1954, there were 8,875,181 pounds
open under the quota at the close of business
on July 22.

0O0

y^-i^
IH4SPI4TS BEIS4SE,
Friday, m¥
23, 19$k

The treaetsry today announced a hO percent allotment on
subscriptions for ths current cash mttsriag mt 1 poreeot Tax
Anticipation Certificates. However, subscriptions for $$0*006
or Imam will be allotted in foil.

Stabocription* far sore

than $50, 00 will be allotted not less than *50,000.
Reports received thus far from the Federal Reserve Banks
show that subscriptions total about $9-1/!* billion. Details
by Federal Resasnre Districts as to subscriptions and allotment*
will be announced when final report* are received froa the
Federal Reserve Banks*

T^THeffaLfinger/gwa

TREASURY DEPARTMENT
WASHINGTON.

IMMEDIATE RELEASE,
Friday, July 23, 1934.

H-540

The Treasury today announced a 40 percent
allotment on subscriptions Tor the current cash
offering of 1 percent Tax Anticipation
Certificates. However, subscriptions for
$50,000 or less will be allotted in full.
Subscriptions for More than $50,000 will be
allotted not less than $50,000.
Reports received thus far from the Federal
Reserve Banks show that subscriptions total
about $9-1/4 billion. Details by Federal
Reserve Districts as to subscriptions and
allotments will be announced when final reports
are received from the Federal Reserve Banks.

oOo

?.*;
mmtM

MORNING KEWS?APERS,

fH® tm&imry Saporta** mmmmmd

^^/

Utt maiaf that th» t«rf«r» for tl,5oo,00OfQ0£

«r towalmt®, «C 91HUQT Iwnwy Mils to b# tia1»4 «y if m*d %& aitam mwmr 2

19&* ^hiA ww aft4Nr«d aa 4Wy 22, wire ^®wd at Urn ffedml Rawm Baute on
My 26*
ft» tttatlft #f tbl* IMW ay* as f#H«W©«
fatal ajn>ll*ft fir * *2f2|7tli3$f000
total aeee?ta*
- l,5oo,itfO,100

(lneludM $193,575,000 #ut®»a on a
nonaoapetitif* toaaia aai H0«#ft®<l to

inQl at the mamm W^a mhmn balm)
AWftg* prima
- 99 *W sq^T^tot rata at tUmmmt approou 0*§0Q^ par aswii
langa oC aaoaptad competitivfe Mias
gi^i - 99#S35 ftpdmlM* rate of discount approx. 0.6531 P^ annwa
lav
- 99.793
*
« «
«
n
o#ai^ »
(3 m$®mt

of the

bid fur nl the lose price w « accepted)

Total

Faiaral & M W f @
Bi^triot
M«IIII«III»»I»I»'»»«»-»:»««»'*»'

Boataa
l@w a t *
ftdlada&ph&a
Clava&aat
Atlanta
Chicago
St. tea!*
Z&oaaapalla
lansaii CiHf
MUas
San fraaelaa*

%579,0Q0
lt&t£9396f0Q0
71,512:, 000
57,799,000
8,91^,000
i7»SUi»ooo
ai5,?7ofoo0
21,b&9»000
10,680,000
1*3,968,000

25,579,000
912,221,000
56,512*000
57,799*000
8,**9000
17*514,000
198,830,000
21»li69»000
10,600,000
1*3,^2,000

33,55h,ooo

32,5SII,OOQ

Uii,»27liyOOO
I0E4L $2,237, to#, 000

IHtttTHjOOQ

?i,5oo,Uoofooo

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, July 27, 1954.

H-541

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated July 29 and to mature October 28, 1954, which were offered on
July 22, were opened at the Federal Reserve Banks on July 26.
The details of this issue are as follows:
Total applied for - $2,237,485,000
Total accepted
- 1,500,400,000 (includes $193,575,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.798 Equivalent rate of discount approx.
0.800$ per annum
Range of accepted competitive bids:
High ~ 99.835 Equivalent rate of discount approx.
0.653$ P e ^ annum
Low
- 99.793 Equivalent rate of discount approx.
0.819$ per annum
(3 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District
Applied for
Boston $ 25,579,000 $ 25,579,000
New York
1,616,396,000
Philadelphia
71,512,000
Cleveland
57,799,000
Richmond
8,946,000
Atlanta
17,544,000
Chicago
215,770,000
St. Louis
21,469,000
Minneapolis
10,680,000
Kansas City
43,962,000
Dallas
33,554,000
San Francisco
114,274,000
TOTAL $ 2,237,485,000 $1,500,400,000
0O0

Accepted
912,221,000
56,512,000
57,799,000
8,946,000
17,544,000
198,830,000
21,469,000
10,680,000
43,962*000
32,584,000
114,274.000

TREASURY DEP RTMEN
^S ^ V- u
WA§« *MU

A£JT<5 .BTA3*> -^X
-l.i

™^'»T"^^Miq"X''"ld^3nl«i:.9T1:o'"'fi«s«> £«®ram ed$ oi iaeqaS'S 4#lw aatjjgJHt Saan
mamdf .£^X-0 a*l«ta& lo amoMidmhml to aaysylilitoy ttotJaqlalfak
fff&tfpfglaw*am::.&to
atf&ttp aeJaattfchreo

and StiW^W

<*£
-.awfe «f^a^.a4,il«M<|:h«ia.'>«oajil lo tessnpf at
^f 1a$%si5.is©
percen
Series C-I955Thi,*e certificates w
&n{f^3#£^^lx-^
ba$$oHs-«aw ssircBtf XaitHMMwroO
plus accr •.-••**»" 4 W i * l f e ^ d ^
ptlof noillid T.ll naiii
'ta • s ::. •:.- on **ar*>h 15, 195^.
la'xd&s'* Iflisvs)? edS gaosia befoivlfe a*i©w aJiu»«tfoIXa Jhaa axsox^ql^sadM
Commercial banks yviewoXX^ -aa xtxammiT &M bn& aJatoJaia smmeM
with
• , : ->..h - , .-M.7 blx:
i
-.*
®rxs§®f Xaie&of
iSB-qlioacfif3 Xa^oT
-qiiaarfo3 XaJo?
heiioLZX uaoiJ
berime® m®l$
*• r . * iyry: and ai •
;tc:l"80h
3hOT W9W

0C0tV^dt80ii
U0O t 8dS t UT

D3swOOOt88lt88S

BldqlaMUM
toalavaXO

oootT3?»30t
00ttCB«t60f.
ooo^i«aii£ % x
oootiftttf&i
ooMo$|SS<5
000tift£tddS
ooot^rv«8oo,x

_ + OQOt$0€eNSI

Fhil^4^i#X
ClevflMk«OtOT

QQo*^M$M
fellas
San Francisco
Treasury

TOTAL

ny:

fjftOFirf&iJ!
£4frgX?a

alloqaanoJtH
•yliry a&msiiS
aaXXiS
ooaloiurfS iiSS
ipvi«a*t

MOT

3ha

IMMEDIAHI REIMSB,

U ~"S U

Wednesday, <faly 28, 1954.
the treasury Department today announced the subscription and allotment figures with raapaat to the current cash offering of 1 percent Tax
Anticipation Certificates of Indebtedness of Series C~19$$* These
certificates will be dated August 2, 1954* *od mUl mature larch 22,
19$$* Thay will be accepted at par plus accrued interest to maturity
in payment of income and profit® taxes due on Harch 1$, 19$k*
Commercial banks were allotted slightly over It billion, with nore
than #1,7 billion going to nonbank sources on original issue.
Subscriptions and allotments were divided among the several Federal
Bsaerve Districts and the treasury as followsi
Federal Eeserve fotal Subscript total SubscrlpPlatriet
tions Received

tions Allotted

Boston i 373,752,000 $ 150,803,000
lew fork
3,814,505,000
Philadelphia
1*08,697,000
Cleveland
713,268,000
liehpond
305*757,000
Atlanta
308,283,000
Chiuago
1,340,138,000
St. louis
276,81*8,000
ffinneapolls
167,25^,000
Kansas Oity
222,801^,000
Bellas
266,554,000
San fVancisc©
1,008,715,000
treasury
«» *
tom*
19,236,575,000

1,51*0,602,000
16J*,7I|0,000
288,188,000
12i$,429,000
128,309,000
$k$,k$k,QQQ
11^,089,00©
70,020,000
93,80^,000
108,1*69,000
1*014,809,000
*>
#3,733,716,000

TREASURY DEPARTMENT

,?K^

WASHINGTON, D.C.
IMMEDIATE RELEASE,
Wednesday, July 28, 1954

H-542

The1Treasury Department today announced the subscription
and allotment figures with respect to the current cash offering
of 1 percent Tax Anticipation Certificates of Indebtedness of
Series C-1955. These certificates will be dated August 2, 1954,
and will mature March 22, 1955. They vail be accepted at par
plus accrued interest to maturity in payment of income and profits
taxes due on March 15, 1954.
Commercial banks were allotted slightly over $2 billion,
with more than $1.7 billion going to nonbank sources on original
issue.
Subscriptions and allotments viere divided among the several
Federal Reserve Districts and the Treasury as follows:
Federal Reserve Total Subscript Total SubscripDistrict
tions Received
tions Allotted
5ost£n .
$ 373,752,000
New York
3,844,505,000
Philadelphia
4o8,697> 000
Cleveland
7133263,000
Richmond
305,757,000
Atlanta
3p3,283,000
^icago
1,340,138,000
£*• L o u \ s , .
276,848,000
Minneapolis
lbJm254,000
Kansas City
222,804,000
all
?
«
.
266,554,J 000
C1SC
? 5
4 4
TreasSry
° *' TOTAL
' - '°?° $9,236,575,000
° ' 8°^ °°°

$ 150,803,000
1,540,602,000
164,740,000
288,188 000
124,429 000
128 309 000
545 454 000
114 089 000
70 020 000
93 804 000
108; 469; 000
$3,733,716,000

3Kb

-3 but shall bo 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. Under Sections l\2 and 117 (a) (1) of the Internal
Revenue Code, as amended by Section 115 of the Revenue Act of 1941, the amount
of discount at which bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold, redeemed or otherwise disposed of, and
such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the; difference between the
price paid for such bills, whether on original issue or on subsequent purchase,
and the amount actually received either upon sale or redemption at maturity
during the taxable year for which the return is mode, as ordinary gain or loss.
Revised
Treasury Department Circular No. Ul8,/xsx3rasxHEb8i±, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their
issue. Copies of the circular may be obtained from any Federal Reserve Bank
or Branch.

3*Y
- 2-

saaaaac
payment of 2 percent of the face amount of Treasury bills applied for, unless

Those submitting tenders will be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or' reject
any or all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be accepted
in full 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 August 5, 195k , in cash or
XXX
other immediately available funds or in a like face amount of Treasury bills
maturing

August %f lf5k

Cash and exchange tenders will receive equal

treatment. Cash adjustments will be made for differences between the par
value of maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or gain from
the sale or other disposition of the bills, shall not have any exemption,
as such, and loss from the sale or other disposition of Treasury bills shall
not have any special treatment, as such, under 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,

3KH

tf-r'/s
TRSASURT DEPARTMENT
Washington
FOR RELEASE, MOHJUMJ NEWSPAPERS,
Ttos<jaya Jsly 29 a 195k
The Treasury Department, hy this public notice, invites tenders for
^1,500,000,000

or thereabouts, of 91 -day Treasury bills, for cash and

in exchange for Treasury bills Featuring August $a 195k > ^ "k*16 amount of
% 1,502»208J000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated August $9 l$$k , and will mature lbrgiW L 19^k , ^hen the face

amount will be payable without interest. They will be Issued in bearer form only
and in denominations of $1,000, $5,000, ^10,000, ^100,000, $500,000, and
$1,000,000 (maturity value).
Tenders iri.ll be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o»clock p.m., Eastern J&fcsxBboc£ time, Monday, August 2. 195k
Tenders mil not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,009, and in the case of competitive tenders

the price offered must be expressed on the basis of 100, •with not more than thr
decimals, e. g., 99*92$, Fractions may not be used. It is urged that tenders

RELEASE MORNING NEWSPAPERS,
Thursday, July 29, 1954.

H-543

The Treasury Department, by this public notice, invites tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills, for
cash and in exchange for Treasury bills maturing August 5, 1954
in the amount of $1,502,208,000 to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated August 5, 1954
and will mature November 4, 1954, when the face amount will be
payable without interest* They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Daylight Saving time,
Monday, August 2, 1954,
Tenders will 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
special envelopes which will be supplied by Federal Reserve Banks or
^Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in Investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price
range of accepted bids. Those submitting tenders will be advised of
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders
in whole or in part, and his action In any such respect shall be
final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be
accepted In full at the average price (in three decimals) of accepted

- 2competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on August 5, 1954,
In cash or other immediately available funds
or in a like face amount of Treasury bills maturing August 5, 1954.
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or
gain from the 3ale 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. Under Sections 42 and 117 (a) (l) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the
amount of discount at which bills issued hereunder are sold shall not
be considered to accrue until such bills shall be sold, redeemed or
otherwise disposed of, and such bills are excluded from consideration
as capital assets. Accordlugly, the owner of Treasury bills (other
than life insurance companies) Issued hereunder need include in his
Income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase,
and the amount actually 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. 4l8, revised, and this
notice, prescribe the terms of the
Treasury bills and govern the
r»Oo
conditions of their Issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

37IJ

The tax revision task was assigned to ^r. Smith and
^r. Gemmill when they were appointed Assistants to the
Secretary at the outset of the new Ada inis trat Ion last year.
It included a detailed review with Congressional comaittees
and staffs of 8,000 sections of existing tax law, with the
rearrangement of provisions to place them in a more logical
sequence, the deletion of obsolete material, and rewording of some
of the provisions to make them more

readily understandable.

"Many other assignments given :r. Smith and ^r. Gemmill
have been carried out in an exemplary manner which s erved as
an Incentive to other

employees," a report of the Treasury

Awards Committee said. "Members of Congress have made very
favorable remarks about their work."
ylr. Smith is on leave from the Graduate School of Business
Mminis trat ion of Harvard University, where he Is Professor of
Finance ..ir. Gemmill is a Philadelphia lawyer. \^e- &-£-*-»

?^>7 u(L^J^Z

StyfojLAjtfia^,

371
Immediate Release
Thursday, July 29, 1954

^r9*

"Seldom has such an outstanding job been done by anybody
Ik any organization," Secretary Humphrey told the two officials
the
at d presentation ceremony* arfciflmftnft^fry "I want to express to
you the thanks and appreciation of everybody in the Department
for the honor you have done the Treasury by your splendid work."

Try

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE
Thursday, July 29, 1952-1

H-5^4

Secretary Humphrey today presented to Dan Throop Smith and
to Kenneth W. Gemmill, Assistants to the Secretary, the Treasury's
Exceptional Civilian Service Honor award for outstanding service
which they performed in helping draft the tax revision bill.
"Seldom has such an outstanding job been done by anybody
in any organization," Secretary Humphrey told the two officials
at the presentation ceremony. "I want to express to you the
thanks and appreciation of everybody in the Department for the
honor you have done the Treasury by your splendid work."
The tax revision task was assigned to Mr. Smith and Mr.
Gemmill, working under the direction of Under Secretary Marion
B. Folsom, when they were appointed Assistants to the Secretary
at the outset of the new Administration last year. It included
a detailed review with Congressional committees and staffs of
8,000 sections of existing tax law, with the rearrangement of
provisions to place them in a more logical sequence, the deletion of obsolete material, and rewording of some of the
provisions to make them more readily understandable.
"Many other assignments given Mr. Smith and Mr. Gemmill
have been carried out in an exemplary manner which served as
an incentive to other employees," a report of the Treasury
Awards Committee said. "Members of Congress have made very
favorable remarks about their work."
Mr. Smith is on leave from the Graduate School of Business
Administration of Harvard University, where he is Professor of
Finance. His home is at Nashawtuc Hill, Concord, Massachusetts.
Mr. Gemmill is a Philadelphia lawyer. He lives at 3027 W. Coulter
Street, Philadelphia.

oOO

TREASURY DEPARTMENT
•'•:;:wm

-^yy^
w_&SH^aT?>'

h1-^^

Bt^EDXATE HEUUSE,
Friday, jtay 30, 19ft.

Secretary Humphrey announced today the offering of 1-year
1*1/3 percent certificates of indebtedness and 6-year and 3-oenth
2-1/8 percent bonds in exchange for the 17,512 million of certificates of indebtedness maturing August 15 and September 15* The
subscription books will open on Tuesday, August 3.
Each of ths new issues will be datsd August 15, 1954, with
the 1-1/8 percent certificates saturing August 15, 1955, and ths
2-l/S percent bonds maturing November 15, I960. The saturing
Issues are ths 2-5/$ percent certificates of indebtedness ©f
Series 0-1954 which will mature August 15 in the astount of
$2,78i aillion, and the 2-5/8 percent certificates ©f indebtedness of Series E-1954 which will mature September 15 in ths amount
of #4,724 million. Holders of the two maturing Issues will be
offered ths choice between the two new issues.
Exchanges will be made par for par. Holders of the August 15
certificates will receive the full-year*s interest earned at the
2-5/8 percent rate. Holders of the September 15 certificates
should present them with ths September 15 coupon attached. They
will be credited with the full-ysar's interest at the 2-5/8 percent rate borne by the maturing certificates, they will be charged
accrued interest from August 15 to September 15 at the rate borne
by ths new securities for which they elect to exchange, and they
will be paid the difference.
the subscription books will be open three days for this exchange offering, and they will close at the close of businsss
Thursday, August 5, 1954.

TREASURY DEPARTMENT

*ra

WASHINGTON, D.C

IMMEDIATE RELEASE
Friday, July 3C, 19p4

H-5^5

Secretary Humphrey announced today the offering of i-year
1-1/8 percent certificates of indebtedness ana 6-year and 3-^-oiith
2-1/8 percent bonds in exchange for the $7,512 million of certificates of indebtedness maturing August 15 and September 15. The
subscription books will open on Tuesday, August 3.
Each of the new issues will be dated August 15, 195*1, with
the 1-1/5 percent certificates maturing August 15, 1955, and the
2-1/5 percent bonds maturing November 15, I960. The maturing
issues are the 2-5/8 percent certificates of indebtedness of
Series D-1954 which will mature August 15 in the amount of
$2,788 million, and the 2-5/8 percent certificates of indebtedness of Series E-1954 which will mature September 15 in the amount
of $4,724 million. Holders of the two maturing issues will be
offered the choice between the two new issues.
Exchanges will be made par for par. Holders of the August 15
certificates will receive the full-year's interest earned at the
2-5/8 percent rate. Holders of the September 15 certificates
should present them with the September 15 coupon attached. They
will be credited with the full-year's interest at the 2-5/8 per
cent rate borne by the maturing certificates, they will be charged
accrued interest from August 15 to September 15 at the rate borne
by the new securities for which they elect to exchange, and they
will be paid the difference.
The subscription books will be open three days for this exchange offering, and they will close at the close of business
Thursday, August 5, 1954.
0O0

Secretary Humphrey today announced the acceptance "with
real regret" of the resignation of Kenneth W. Gemmill, as an
Assistant to the Secretary of the Treasury. Secretary Humphrey
wrote Mr. Gemmill:
"As I have told you many times, your efforts in
helping develop the tax revision program, as well as your
many other services during your year and a half in
the Treasury, have been outstanding. We have all
profited from the chance to work with you because of
your vast knowledge of the tax field and your ability
to explain involved situations in understandable fashion.
We in the Treasury, and I know your many friends in the
tax committees of the Congress, are going to miss not
only your unusual ability, but your friendly good
nature.
On behalf of the Administration and the Treasury,
I thank you sincerely for having given so much of your
time to public service. While I, personally, and your
many associates hate to see you go, we understand the
personal considerations which make it necessary. We
wish you every continued success in your return to
your private affairs.
My best personal regards to you and Mrs. Gemmill."
Mr. Gemmill*s letter of resignation to the Secretary points
out that when he came with the Treasury in 1953 he made the
stipulation that he would remain only as long as personal considerations would permit. He added:
"I wish to thank you for giving me the opportunity
of being associated with you in the Treasury and participating in the work on the Administration^ tax
program and the new Internal Revenue Code. I have had
a most rewarding experience working with you and the
rest of the people in the Treasury and shall ever be
grateful to you for having had this opportunity."

TREASURY DEPARTMENT

-V/v

WASHINGTON, D.C

IMMEDIATE RELEASE
Friday, July 30, 1954

H-546

Secretary Humphrey today announced the acceptance "with real
regret" of the resignation of Kenneth W. Gemmill, as an Assistant
to the Secretary of the Treasury. Secretary Humphrey wrote Mr.
Gemmill:
"As I have told you many times, your efforts in
helping develop the tax revision program, as well as
your many other services during your year and a half
in the Treasury, have been outstanding. We have all
profited from the chance to work with you because of
your vast knowledge of the tax field and your ability
to explain involved situations in understandable fashion.
We in the Treasury, and I know your many friends in the
tax committees of the Congress, are going to miss not
only your unusual ability, but your friendly good nature.
"On behalf of the Administration and the Treasury,
I thank you sincerely for having given so much of your
time to public service. While I, personally, and your
many associates hate to see you go, we understand the
personal considerations which make it necessary. We
wish you every continued success in your return to
your private affairs.
"My best personal regards to you and Mrs. Gemmill."
Mr. Gemmillfs letter of resignation to the Secretary
points out that when he came with the Treasury in 1953 he made the
stipulation that he would remain only as long as personal considerations would permit. He added:
"I wish to thank you for giving me the opportunity
of being associated with you in the Treasury and participating in the work on the Administration's tax program and the new Internal Revenue Code. I have had a
most rewarding experience working with you and the rest
of the people in the Treasury and shall ever be grateful
to you for having had this opportunity."

oOo

Trr

yyl

wmkm wmim ®wf$?mm9
fueaday, Augast 39 Ifgb*

Ths Treasury Departamt announced last evening that the tenders for $1,£00,000,000,
or thereabouts, of 91-day Treasury bills to be dated August $ and to naature Koveafcer 4,
1®$*, which mre offered on July 29, were opened at the Federal Reserve Banks on August %
The details of this issue are as followst
fetal applied for - 1 ^ ^ 8 , ^ , 0 0 0
fetal aeeepted
- l9$m9m9om

(iaelades $226,®o # 0Q0 entered on a,
noncompetitive basis and accepted ia
full at the average price shown below}
Average priee
- 99*799 Equivalent rate of discount approx. 0.7ft% per annum
Range of accepted competitive bids? (ixeeptiag t«r© tenders totaling
$m$9®m)
High
lm

- 99*803 Equivalent rate of discount approx. 0.7792 par annum
n
- 99*79$
« s
»
a
0#$i3g «
«
(10 percent of the aiaount bid for at the lew priee was aeeepted)

Federal Reserve
District

fetal
Applied for

fetal
Accepted

Boston
lew fork
Philadelphia

2?,9$2,0G0

at* f 5%0oo

Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
Baa Francisco

TOfAL

3MTQ»OO0

hk*m$»ooQ
io,S7ffooo

22,183,000
t37,W7tOOO

tSfh30*ooo

yi,§?3,ooo
61,51*0,000
117,707,000

&0#*$3»000
m§m9(m
5O,^O f 03O
103,^7*000

P,1*1*3,1$*, ooo

fl*g@0»43o,000

3 IH

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS
Tuesday, August 3, 1954

H-547

The Treasury Department announced last evening that the
tenders for $1,500,000,000, or thereabouts, of 91-day Treasury
bills to be dated August 5 and to mature November 4, 1954, which
were offered on July 29, were opened at the Federal Reserve Banks
on August 2.
The details of this issue are as follows:
Total applied for - $2,448,454,000
Total accepted
- 1,500,639,000 (includes $226,039,000 entered yon a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.799 Equivalent rate of discount approx.
0.797$ per annum
Range of accepted competitive bids: (Excepting two tenders
totaling $805,000)
High - 99.803 Equivalent rate of discount approx.
0.779$ per annum
Low
- 99.795 Equivalent rate of discount approx.
0.811$ per annum
(10 percent of the amount bid for at the low price was accepted)
Federal Reserve
District

Total
Applied for
$
27,952,000
1,772,500,000
33,170,000
44,076,000
14,679,000
23,233,000
260,507,000
25,430,000
25,787,000
41,873,000
61,540,000
117,707,000
$2,448,454,000

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL

0O0

Total
Accepted
$

24,552,000
899,425,000
16,270,000
44,076,000
10,579,000
22,183,000
237,407,000
25,430,000
25,187,000
40,993,000
50,990,000
103,547,000
$1,500,639,000

3/M

FOR IMMEDIATE RELEASE
Tuesday, August 3, 1954

rf
YL-^fl/^

Treasury Secretary Humphrey today administered the oath
of office as Under Secretary of the Treasury for Sonetary Affairs
to W. Randolph Burgess, who has been Deputy to the Secretary since
January 1953.
Mr. Burgess was sworn in before a group of Treasury officials
and friends, in the office of the Secretary.
In the newly created statutory position of Under Secretary
for Monetary Affairs Mr. Burgess will continue the responsibilities
which he had as Deputy to the Secretary.

These include general

supervision of public debt operations and other affairs of the
Treasury Fiscal Service; the responsibilities of the offices of
International Finance, Comptroller of the Currency, and U. S.
Savings Bonds Division;>fche remaining functions of the RFC, and
RFC liquidation.
(Under Secretary Marion B. Folsom has supervisory charge of
the Internal Revenue Service, the office of the Administrative
Assistant Secreta^^ and tpe Analysis
H. Chapman Rsy&e supervise* the work
U. S. Coast Guard, Burea/i of tJ^Mint
Bureau of Narcotics.)

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE
Tuesday, August 3, 1954

H-548

Treasury Secretary Humphrey today administered the oath
of office as Under Secretary of the Treasury for Monetary
Affairs to W. Randolph Burgess, who has been Deputy to the
Secretary since January 1953.
Mr. Burgess was sworn in before a group of Treasury
officials and friends, in the office of the Secretary.
In the newly created statutory position of Under
Secretary for Monetary Affairs Mr. Burgess will continue
the responsibilities which he had as Deputy to the Secretary.
These include general supervision of public debt operations
and other affairs of the Treasury Fiscal Service; the responsibilities of the offices of International Finance,
Comptroller of the Currency, and U. S. Savings Bonds
Division; and some.of -the remaining functions of the UPC,
and RFC -liquidation.

000

3 KI

^ - 3 -

but shall be exenpt from all taxation novr 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 anount of dis-

count at iThich Treasury bills are originally sold by the United St?.tes shall b
considered to be interest. Under Sections l& and 117 (a) (1) of the Internal

Revenue Code, as amended by Section 11$ of the Revenue Act of 19\±1, the aiaount

of discount at Tshieh bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold, redeemed or otherwise disposed of, and
such bills are excluded froM consideration as capital assets. Accordingly,

the av/nur of Treasury bills (other than life Insurance covjpanies) Issued hereunder need include In his income tax return only the difference betneon the
price paid for such bills, rh^t'ior on ori<HmI issue or on subsequent purchase,
and the amount actually received either upon sale or redemption at maturity

during the taxable year for T^hich the return is made, as ordinary gain or loss.
Revised
Treasury Departnent Circular No. Ul8, «««»»»• >w*j and this notice, prescribe the terms of the Treasury bills and govern the conditions of their
issue. Copies of the circular nay be obtained fran any Federal Reserve Bank
or Branch.

pajiaent of 2 percent of the face amount of Treasury bills applied for, unless

the tenders are accompanied by an express guaranty of payment by an incorporate
bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal

Reserve Banks and Branches, following which public announcement irri.Il be made
by the Treasury Department of the amount and price range of accepted bids.

Those submitting tenders Td.ll be advised of the acceptance or rejection thereo
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, in wholu or in part, and his action in any such respect
shall be final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder "will be accepted
in full 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 August 12, 195* , in cash or

,—

T&f

—

other immediately available funds or in a like face amount of Treasury bills
maturing August 12, 195^- Cash and exchange tenders -will receive equal
treatment. Cash adjustments will be made for differences between the par
value of maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or gain from
the sale or other disposition of the bills, shall not have any exemption,
as such, and loss from the sale or other disposition of Treasury bills shall
not hav.i any special treatment, as such, under the Internal Revenue Code, or
laws auondatory or supplementary thereto. The bills shall be subject to
estate, inheritance, gift or other excise taxes, whether Federal or State,

3H*
TREASURY DEPARTMENT
Washington

4/-S41

FOR RELEASE, MORNIlflGr NEWSPAPERS,
Thursdays August 5, 1954
~

—*--

*~/rv—*——

—

IBP
The Treasury Department, by this public notice, invites tenders for
$1,500,000,000 , or thereabouts, of 92 -day Treasury bills, for cash and
I B

in exchange for Treasury bills maturing

M m

August 12, 1954

in the amount of

$1,500,8^9,000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated August 12, 195^ , and "will mature November 12, 195^ , when the face
amount will be payable without interest. They will be issued in bearer form only,
and in denominations of |1,000, $£,000, $10,000, $100,000, $£00,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o'clock p.m., Eastern ^£3l£SB&/time, Monday, August 9, 195*1
Tenders will 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, Y/ith not more than thre
decoanals, e. g., 99*92$. Fractions may not be used. It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which will be
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by

TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS
Thursday, August 5, 1954

H-549

* ^ h n ^ n n n U n ^ n D e p a r t m e n t ^ b y t h l s P u b l i c notice, invites tenders
for $1,500,uuo,uuu, or thereabouts, of 92-day Treasury bills, for
cash and in exchange for Treasury bills maturing August 12, 1954,
in the amount of $1,500,849,000 to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated August 12, 1954,
and will mature November 12, 1954 when the face amount will be
payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Daylight Saving time,
Monday, August 9, 1954.
Tenders will 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
special envelopes which will be supplied by Federal Reserve Banks or
.Branches on application therefor.
Others than banking Institutions will not be permitted to submit
tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an Incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price
range of accepted bids. Those submitting tenders will be advised of
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders
in whole or in part, and his action In any such respect shall be
final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be
accepted In full at the average price (in three decimals) of accepted

- 2competitive bids. Settlement Coy accepted tenders In accordance
with the bids must be made or completed at the Federal Reserve Bank
on August 12, 1954,
in cash or other immediately available funds
or in a like face amount of Treasury bills maturing August 12, 1954.
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bill3 accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether Interest or
gain from the 3ale 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. Under Sections 42 and 117 (a) (l) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the
amount of discount at v/hlch bills issued hereunder are sold shall not
be considered to accrue until such bilJs shall be sold, redeemed or
otherwise disposed of, and ouch bills are excluded from consideration
as capital assets. Accord}ngly, the owner of Treasury bills (other
than life Insurance companies) I.asued 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 ainount actually 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. 4l8, revised, and this
notice, prescribe the terms of the
Treasury bills and govern the
0O0
conditions of their Issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

- 2 -

to the chairmanship by the OniiuLdJj uf HUB Ti'eautii'ij'* He will continue t
serve as volunteer in an advisory capacity in the program in which he was
a pioneer.

SUQQEDTEB TREASURY REL3A0L.

/4*/h- ^ „^
RELEASE SSSSS.Y NEWSPAPERS

(or THURSDAYj-AUGUGT $9 IF ICQSIDLgJ

^uZ^j AUGUST 6, 1954 /W - C \'
Secretary Humphrey has accepted the resignation of Robert W. Sparks,
first vice-president and treasurer of The Bowery Savings Bank of New York,
New York City, as chairman of the U. S. Savings Bonds Advisory Committee for
the State of New York.
Replying to Mr. Sparks1 letter of resignation, Secretary Humphrey wrote:
"There is no greater glory in a democratic society than volunteer service
which helps others, a service such as you have^s^unsej^^^TFendered

-^m<. //*y JCA?^2C ****A/ Ui4^^ ."
- - • ErTSgguTOTPg^^
e, Mr* Sparks was called an by the Treasury
A

Department in the spring of 1941 to help set up a program and staff for % alsa /A-t
promotion of Defense Savings Bonds* On May 2, lQ4l, the day after the bonds
went on sale, he was appointed associate national field director of the
Defense Savings Staff. He assisted Gale F. Johnston, then field director,
now president of the Mercantile Trust Co* of St* Louis, in establishing the
Payroll Savings Plan in business and industry across the nation and making

it the principal market for War Savings Bonds after Pearl Harbor. On July 1,

1942, when Mr. Johnston returned to private business, Mr. Sparks became nati

field director of the renamed W&p Savings Staff, aa awl pang a~"volunteer. o
.
A
A
zation of up to six million bond irrrl-^irr nrrrh—IT pni ii pnninmnrl Ma"111 •
A>

In mid-19E3 he returned to his banking duties in New York, but remained
on call as a consultant* On October 1,19^2, when Lewis Pierson, New York
banker and financier, retired as State Chairman, Mr. Sparks was appointed

TREASURY DEPARTMENT

3*r

WASHINGTON. D.C.

RELEASE A.M. NEWSPAPERS
Friday, August 6, 1954

K-550

Secretary Humphrey has accepted the resignation of Robert
W. Sparks, first vice-president and treasurer of The Bowery
Savings Bank of Hew York, New York City, as chairman of the
U. S. Savings Bonds Advisory Committee for the State of New
York.
Replying to Mr. Sparks' letter of resignation, Secretary
Humphrey wrote: "There is no greater glory in a democratic
society than volunteer service which helps others, a service
such as you have rendered so unselfishly since 1941. It is
comforting to know that we may call on you at any time for advice and counsel."
Mr. Sparks was called upon by the Treasury Department in
the spring of 1941 to help set up a program and staff for the
promotion of Defense Savings Bonds. On May 2, 1941, the day
after the bonds went on sale, he was appointed associate national
field director of the Defense Savings Staff. Ke assisted Gale F*
Johnston, then field director, novi president of the Mercantile
Trust Co. of St. Louis, in establishing the Payroll Savings
Plan in business and industry across the nation and making it
the principal market for War Savings Bonds after Pearl Harbor.
On July 1, 1942, when Mr. Johnston returned to private business,
Mr. Sparks became national field director of the renamed War
Savings Staff, which worked with a volunteer wartime organization
of up to six million bond salesmen.
In mid-1943 he returned to his banking duties in New York,
but remained on call as a consultant. On October 1, 1952, when
Lewis Pierson, New York banker and financier, retired as State
Chairman, Mr. Sparks was appointed to the chairmanship. He
will continue to serve as volunteer in an advisory capacity
in the program in which he was0O0
a pioneer.

TRE SURY DEPARTMENT
,>-:

•!isi£SSS

\atiaen'

a*.

MffiDUlS K1EASB,

Tm trmamy

Bepart»eiit mmmaad

taday that I?*3 biHiem, or

over 9? percent, of the certificates of iijdebiedness maturing August 1$
md September IS have already been exchanged for the new offerings et
bonds and certificates, aeeoMing ie preliminary reports received tram
the Federal Eeeenre Banks. nearly 13.8 billion have been exchanged
tar the 1101? 6-year 3-month 2-1/8 percent bonds and about 13.5 billion
for the new one-year 1-1/8 percent certificates of indebtedness.
About #2.7 billion of the certificates maturing August 1$ end
about fc.6 billion of the certificates maturing September 1$ have been
tendered in exchange.
Further details regarding the exchange will be announced later
this week after final raparta are received.

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE
Monday, August 9, 1954

H-551

The Treasury Department announced today that $7.3
billion, or over 97 percent, of the certificates of indebtedness maturing August 15 and September 15 have already
been exchanged for the new offerings of bonds and certificates,
according to preliminary reports received from the Federal
Reserve Banks. Nearly $3.8 billion have been exchanged
for the new 6-year 3-nionth 2-1/8 percent bonds and about
$3.5 billion for the new one-year 1-1/8 percent certificates
of indebtedness.
About $2.7 billion of the certificates maturing
August 15 and about $4.6 billion of the certificates
maturing September 15 have been tendered in exchange.
Further details regarding the exchange will be
announced later this week after final reports are received.

oOo

"•>

L J

BELEASE MOMIHG HIWSPAFEHS,
Tuesday, August 10, 1954.

' C ? c> ^

the Treasury Department announced last evening that the tenders for H,5OO,OOO,0OO,

or thereabouts, ©f 92-day Treasury bills to be dated August 12 and to aature Novembe
1951*, which were offered on August $. were opened at the Federal Reserve Banks on
August 9*
The details of this issue are as follow*:
Total applied for - |2,fc27,772,000
Total accepted
- l,500,75k,000 (includes #261,525,000 entered on a
noncompetitive basis and accepted in
full at the average priee shown below)
Average price
- 99.772/ Equivalent rate of discount approx. Q.$9%t par annua
Range of accepted competitive bids:
High - 99.810 lojaivalent rate of discount approx. 0.71*3$ par annura
B
Low
- 99.769
*
»
*
•
0.9QW *
(&2 percent of the amount bid for at the low priee was accepted)
Federal Reserve
District

Total
Applied for

fetal
Accepted

Boston
Mew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

1
33,333,000
1,676,71k, 000
27,795,000
52,427,000
10,319,000
31,203,000
234,292,000
26,796,000
30,647,000
78,177,000
72,01*8,000
1^6,001,000

#2,427,772,000

11,500,75k, 000

Total

31,831,000
873,78k,QOO
12,795,000
50,1*27,000
9,319,000
30,603,000
180,982,000
26,678,000
38,087,000
67,997,000
58,508,000
119,741,000

TREASURY DEPARTMENT
WASHINGTON, D.C
RELEASE MORNING NEWSPAPERS
Tuesday, August 10,, 1954

H-552

The Treasury Department announced last evening that the
tenders for $1,500,000,000, or thereabouts, of 92-day Treasury
bills to be dated August 12 and to mature November 12, 1954,
which viere offered on August 5, were opened at the Federal
Reserve Banks on August 9*
The details of this issue are as follows:
Total applied for - $2,427,772,000
Total accepted
1,500,754,000 (includes $261,525,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.772/ Equivalent rate of discount approx.
0.892$ per annum
Range of accepted competitive bids:
High - 99.810 Equivalent rate of discount approx.
0.743$ per annum
Low
- 99.769 Equivalent rate of discount approx.
0.904$ per annum
(82 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District
Applied for

Accepted

Bos

ton $ 33,333,000 $ 31,833,000
New York
1,676,734,000
Philadelphia
27,795,000
Cleveland
52,427,000
Richmond
10,319,000
Atlanta
31,203,000
Chicago
234,292,000
St. Louis
26,796,000
Minneapolis
38,647,000
Kansas City
78,177,000
Dallas
72,048,000
San Francisco
146,001,000
Total $2,427,772,000 $1,500,754,000
0O0

873,784,000
12,795,000
50,427,000
9,319,000
30,603,000
180,982,000
26,678,000
38,087,000
67,997,000
58,508,000
119,741,000

- 3-

but shall be exempt from all taxation now or hereafter imposed on the principal

price paid for such bills, rrhcthcr on original issue or on subsequent purchase,
and the amount actually received either upon sale or redemption at maturity
during the taxable year for which the return is made, as ordinary gain or loss.
Revised
Treasury Department Circular No. Ul6,/auuaLxamahai, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their
issue. Copies of the circular may be obtained fron any Federal Reserve Bank
or Branch.

3MV
- 2 M V<a/1imT
353B9SS

payment of 2 percent of the face amount of Treasury bills applied for, unless

the tenders are accompanied by an express guaranty of payment by an incorporate
bank or trust company.
Immediately after the closing hour, tenders mil be opened at the Federal
Reserve Banks and Branches, following which public announcement Trill be made
by the Tr&asury Department of the amount and price range of accepted bids.

Those submitting tenders will be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, in wholo or in part, and. his action in any such respect
shall be final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be accepted
in full 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 August 19, 195^ , in cash or
other immediately available funds or in a like face amount of Treasury bills
maturing August 19- If-ik Cash and exchange tenders will receive equal
treatment. Cash adjustments will be made for differences between the par
value of maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or gain from
the sale or other disposition of the bills, shall not have any exemption,
as such, and loss fron the sale or other disposition of Treasury bills shall
not havo any SDceial treatment, is 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,

TREASURY DEPARTMENT
Washington
FOR.RELEASE, MORNING NEWSPAPERS,
Thursday, August 12, 1954
. _

.„ _

„ j _

The Treasury Department, by this public notice, invites tenders for
$ 1.500.000.000 >

thereabouts, of 91 --day Treasury bills, for cash and

in exchange for Treasury bills maturing August 19, 1954 > ln tcie amount of
^ly5©l?k27,QQ0 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated August 19. 1954 3 -and"will mature November 18. 1954, ^n®n the face

amount will be payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving.
closing hour, two o'clock p.m.. Eastern jtZaasifcoaL time, Monday, August 16, 1954
Tenders will 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, vm_th not more than thre
decimals, e. g., 99*92$. Fractions may not be used. It is urged that tenders

OTTO

account. Tenders will be received without deposit from

incorporated banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by

3 MS

TREASURY DEPARTMENT
WASHINGTON. D.C.
RELEASE MORNING NEWSPAPERS
Thursday, August 12, 1954

H-553

* *ThtA^nAU^Departmentj by thls P^llc notice, invites tenders
for $1,500,000,000, or thereabouts, of91 -day Treasury bills, for
cash and In exchange for Treasury bills maturing August 19, 1954
in the amount of $1,501,427,000 to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be datedAugust 19, 1954
and will mature November 18, 1954 when the face amount will be
payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Daylight Saving time,
Monday, August 16, 1954.
Tenders will 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 prioe
offered must be expressed on the basis of 100, with not more than
three decimals, e. g., 99.925. Fractions may not be used. It is
urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by Federal Reserve Banks or
'.Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers In investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price
range of accepted bids. Those submitting tenders will be advised of
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders
in whole or in part, and his action In any such respeot shall be
final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals).of accepted

- 2competitive bid3. Settlement for accepted tenders In accordance
with the bids must be made or completed at the Federal Reserve Bank
on August 19, 1954
in cash or other immediately available funds
or in a like face amount of Treasury bills maturing August 19, 1954
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether Interest or
gain from the 3ale 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. Under Sections 42 and 117 (a) (l) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the
amount of discount at which bills Issued hereunder are sold shall not
be considered to accrue until .such bills shall be sold, redeemed or
otherwise disposed of, and such bills are excluded from consideration
as capital assets. Accordingly, the owner of Treasury bills (other
than life Insurance companies) Issued hereunder need Include In his
income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase,
and the amount actually 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. 4l8, revised, and this
notice, prescribe the terms of the
Treasury bills and govern the
0O0
conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

• < '^r>

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE
August 12, 19$k

H-554

^he Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities on which quotas were prescribed by
the Philippine Trade Act of 1946, from January 1, 1954, to July 31, 1954,
inclusive, as follows:

Products of the
Philippines
*

:Established Quota
: Quantity

Imports as of
July 31, 1954

•

Buttons 850,000

Gross

Cigars 200,000,000

Number

Coconut Oil 448,000,000

Pound

69,138,739

Cordage 6,000,000

Pound

1,321,787

Rice 1,040,000

Pound

(Refined
Sugars
(Unrefined
Tobacco 6,500,000

467,527
1,670,540

2,869,784
1,904,000,000

Pound

1,391,095,937
Pound

773,785

TREASURY DEPARTMENT
Washington
[HUEDIATE RELEASE
August 12, 1954

3^ (

H-554

The Pureau of Customs announced tod17 oreliminary figures showing the
imports for consumption of commodities on which quotas were prescribed by
the Philippine Trade Act of 194o, from January 1, 1954, to July 31, 1954,
inclusive, as follows:

Products of the
Philippines
Buttons

Established Quota
Quantity

850,000

Imports as of

July 31, 1954
Gross

467,527

Cigars

200,000,000

Number

Coconut Oil

448,000,000

Pound

69,138,739

Cordage

6,000,000

Pound

1,321,787

Rice

1,040,000

Pound

,904,000,000

Pound

(Refined .,
Sugars

2,369,784

(Unrefined
Tobacco

1,670,540

1,391,095,937
6,500,000

Pound

773,785

3uH
TREASURY DEPARTMENT
Washington

FOR IMMEDIATE RELEASE,
August. 13, 195h

H-555

The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour authorized to be entered, or withdrawn
from warehouse, for consumption under the import quotas established in the
President's proclamation of May 28, 1941, as modified by the presidents
proclamation of April 13, 1942, for the 12 months commencing May 29, 1954,
as followss
.

Country
of
Origin

Wheat
:
:
: Established •
Imports
a
slay 29, 1954, to
Quota
sAug . 10, 1954
(Bushels)
(Bushels)

Canada
China
Hungary
Hong'Kong
Japan
United Kingdom
Australia
Germany
Syria
New Zealand
Chile
Netherlands
Argentina
Italy
Cuba^
France
Greece
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
Guatemala
Brazil
Union of Soviet
Socialist Republics
Belgium

795,000

100
100

_
_
~
_
—
—
-.
-

100
100

....

100
-

100
100
—

100
2,000

100
—

1,000
—

100
—
—
—
—
-

1,000

s
s
;
:

Kheat flour., semolina,
crushed or cracked
wheat, and similar
wheat products

t Established s
Imports
s
Quota
s May 29, 1954,
•
* to Aug. 10,. 19$
«
a
(Pounds )
(pounds)
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000

5,ooo
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

3,815,<300
—
—
—
—
—
—
—
—
—
_
_
—

2,<300

—
_

—
mm

TREASURY DEPARTMENT
Washington

FOR EllEDIATE RELEASE,

3MM

, August. 13, 1954

H-555

The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour authorized to be entered, or withdrawn
from warehouse, for consumption under the import quotas established in the
President's proclamation of May 28, 1941, as modified by the President's
proclamation of April 13, 1942, for the 12 months commencing May 29, 1954,
as followsr

i
Country
of
Origin

Wheat

i
5
t
i

Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products

• Established :
Imports
i Established :
Imports
Quota
sMay 29, 1954, to J
Quota
: May 29, 1954s:Aug. 10, 1954
: to Aug. 10, 19.
(Pounds)
(Bushels)
(Pounds)
(Bushels)

Canada
China
Hungary
Hong Kong
Japan
United Kingdom
Australia
Germany
Syria
New Zealand
Chile
Netherlands
Argentina
Italy
Cuba,
France
Greece
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
Guatemala
Brazil
Union of Soviet
Socialist Republics
Belgium

795,000
-

100
-

100
100
-

100
2,000

100
-

1,000
-

100
—
—
—
-

1,000

100
100
100
100

795,000

3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
'
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

3,815,000

2,000

IMMEDIATE RELEASE
August lfc, 1954

-l\l\t

TREASURY DEPARTMENT
Washington

H-556

: Unit
:
: of
: Imports as of
:Quantity; July 31, 1954

Period and Quantity

Calendar Year

Gallon

29,087

1,500,000 Gallon

510

3,000,000

Cream Calendar Year
Butter July 16, 1954-

5,000,000

Pound

33,950,386

Pound

348

Oct. 31, 1954
Fish, fresh or frozen, filleted,
etc., cod, haddock, hake, pollock, cusk, and rosefish

Calendar Year

\Vhite or Irish potatoes:
Certified seed
Other

12 months from
Sept. 15,1953

(D
150,000,000 Pound
60,000,000 Pound

Quota Filled
100,578,047
Quota Filled

Cattle, less than 200 Lbs. each .... 12 months from
April 1, 1954

200,000

Head

3,616

Cattle, 700 Lbs. or more each July 1, 1954(other than dairy cows)
Sept. 30, 1954

120,000

Head

3,618

Walnuts Calendar Year
Almonds, shelled, blanched,
roasted, or otherwise prepared
or preserved

Pound

4,599,726

12 months from
Oct. 1, 1953

7,000,000 Pound

6,977,122

June 30, 1955

1,500,000 Pound

309,726

12 months from
July 1, 1954

1,709,000 Pound

5,000,000

Alsike clover seed July 1, 1954Peanuts, whether shelled, not
shelled, blanched, salted, prepared, or preserved (including
roasted peanuts, but not ineluding peanut butter.
Peanut Oil 12 months from
July 1, 1954

80,000,000 Pound

* Oats, hulled and unbilled and un- Dec. 23, 1953hulled ground
Sept. 30, 1954
2,500,000 Bushel
%e> rye flour and rye meal

2,463,629

July 1, 1954June 30, 1955
186,000,000 Pound
185,047,114
(l) Imports for consumption at the quota rate are limited to 25,462,791 pounds during
the first nine months of the calendar year.
* Imports through August 10, 1954, from countries other than Canada.
** Imports through August 10, 1954.

lyy-iiii^Ty, RyyA32

August 12, 1954

TREASURY DEPARTMENT
Washington

H-556

Commodity

7/hole milk, fresh or sour

: Unit
s
: of
> Imports as of
:Quantity: July 31, 1954

Period and Quantity

Calendar Year

3,000,000

Gallon

29,087

Cream Calendar Year

1,500,000 Gallon

510

Butter July 16, 1954-

5,000,000 Pound

348

Oct. 31, 1954
Fish, fresh or frozen, filleted,
etc., cod, haddock, hake, pollock, cusk, and rosefish
Calendar Year
White or Irish potatoes:
Certified seed ................... 12 months from
Other
Sept. 1$,19$3
Cattle, less than 200 Lbs. each .

Cattle, 700 Lbs. or more each
(other than dairy cows)

12 months from
April 1, 1954
July 1, 1954Sept. 30, 1954

33,950,386 Pound

150,000,000 Pound
60,000,000 Pound
200,000 Head

(D
Quota Filled
100,578,047
Quota Filled
3,616

120,000 Head

3,618

Walnuts ,....,......o .o Calendar Year

5,000,000 Pound

4,599,726

Almonds, shelled, blanched,
roasted, or otherwise prepared
or preserved

12 months from
Oct. 1, 1953

7,000,000 Pound

6,977,122

June 30, 1955

1,500,000 Pound

309,726

Alsike clover seed July 1, 1954-

Peanuts, whether shelled, not
shelled, blanched, salted, prepared, or preserved (including
roasted peanuts, but not ineluding peanut butter

12 months from
July 1, 1954

1,709,000

Pound

Peanut Oil *»* 12 months from
July 1, 1954

80,000,000 Pound

» Oats, hulled and unhulled and un- Dec. 23, 19532,500,000 Bushel
hulled ground
Sept. 30, 1954

2,463,629

Itye, rye flour and rye meal July 1, 1954186,000,000 Pound
June 30, 1955
185,047,114
(1) Imports for consumption at the quota rate are limited to 25,462,791 pounds during
the first nine months of the calendar year.
» Imports through August 10, 1954, from countries other than Canada,
#* Imports through August 10, 1954.

«*2—
COTTON WASTES
(In pounds)
C

°3T2LCARD STRIPS made rfrom c°tton having-a staple of less than 1-3/16 inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE* Provided, however, that not more than 33-1/3 percent of the quotas,shall
be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more
in staple length in the case of the following countries* United Kingdom, Prance, Netherlands,
Switzerland, Belgium, Germany, and Italys
Country of Origin

United Kingdom
Canada . . . .
France . . . .
British India «
Netherlands . .
Switzerland . .
Belgium . . . <,
Japan . . . . .
Ulllllo o

o s

Egypt o o , . ,
Cuba . e . . ,
Germany , 0 , ,
Italy

o o o o

Established
TOTAL QUOTA
4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
5,482,509
21o263

1/ Included in total imports, column 2.
Prepared in the Bureau of Customs.

t
Total Imports
s Sept. 20, 1953, to
j_August 10, 1954
700,057
239,690
54,487
16,668
1,099

Established
Imports
l/
33-1/3$ of
Sept, 20, 1953
Total Quota g to August 10, 1954
1,441,152

609,690

75,807
22,747
14,796
12,853

16,668
1,099

6,544
23,940
7.088
1,049,573

25,443
-JL088.
1,599,886

23,940
7,088

658,485

TREASURY DEPARTMENT
Washington

IMMEDIATE HKLEASE
August 12, 1954

H-667

Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the President's Proclamation of September 5, 1939, as amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/4"
Imports Sept. 20, 1953 > to August 10, 1954, inclusive
Country of Origin
Egypt and the AngloEgyptian Sudan . . ,
Peru
British India . . . .
China
Mexico .
Brazil
.
Union of Soviet
Socialist Republics
Argentina
•
Haiti
Ecuador

Established Quota
783,816
247,952
2,003,483
1,370,791
8,883,259
618,723
475,124
5,203
237
9,333

Country of Origin

Imports

50,352
34,455
6,461,447
618,723
431,975

Honduras
Paraguay
Colombia
Iraq
British East Africa . .
Netherlands E. Indies.
Barbados
l/0ther British W. Indies
Nigeria
2/0ther British W. Africa
/2/Other French Africa . .
Algeria and Tunisia .

Established Quota
752
871
124
195
2,240
71,388
21,321
5,377
16,004
689

Cotton 1-1/8" or more, but less than 1-11/16"
Imports Feb. 1. 19 54. to August 10, 1954

Established Quota (Global) Imports

Established Quota (Global)

Imports

70,000,000 11,791,664

45,656,420

30,635,817

Imports

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE
August 1$, 1954

H-557

Country of Origin.
Egypt and the AngloEgyptian Sudan • . •
rSFU

.........

British India
vllino

o e s e s .

. . . .

xjrazu. . O . . . . C ,
Union of Soviet
Socialist Republics •
Argentina . . . . . . .
riaiul

Ecuador

783,816
247,952
2,003,483
1,370,791
8,883,259
618,723
475,124
5,203

. . . . . . . . .

237

9,333

Country of Origin

Imports
—

50,352
34,455
—

6,461,447
618,723
431,975
—•
—
—

Honduras • « • . . •
Paraguay ,
......
...... c
Colombia ,
o e . . . . •
Iraq .
British East Africa . ,
Netherlands E. Indies.
Barbados . » . . • « .
l/Other British W, Indies
Nigeria . . . . . . .
2/0ther British W. Africa
/2/Other French Africa . .
Algeria and Tunisia •

Established Quota

Imports

752
871
124
195
2,240
71,388
21,321
5,377
16,004
689

Cotton 1-1/8" or more, but less than 1-11/16"
Imports Feb. 1, 19 54, to August 10, 1954

Established Quota (Global) Imports

Established Quota (Global)

Imports

70,000,000 11,791,664

45,656,420

30,635,817

-*£COTTON WASTES
(In pounds)
, . « 1oa_ i.uan 1-1/16 inches in length, COMBER
COTTON CARD STRIPS made from cotton having -a staple of less than i ^
QR 0THERV/ISE
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, ^ T O E R OR NOT ™ A U 1 U ^
^ ^
ADVANCED IN VALUEs Provided, however, that not more than 33-1/3 Percent oi
q
^
^
be filled by cotton wastes other than comber wastes made ^ m cot tons oi >-»
erlands,
Neth
in staple length in the case of the following countries: United Kingdom, France,
Switzerland, Belgium, Germany, and Italy,
Total Imports : Established :
5 ? folU
Established
Sept.
20,
1953,
to
:
33-1/3*
of
:
Sept.
20, 1953
Country of Origin
TOTAL QUOTA
? „ L t 10. 1954
t Total Quota r to August 10, 1954 ,
609,690
1,441,152
700,057
United Kingdom . . . . .
4,323,457
239,690
Canada . . . . . . . . .
239,690
75,807
9
France
•
^} ^%
54,487
16,668
22,747
British India . . . . . .
69,627
16,668
14,796
Netherlands
68,240
1,099
1,099
12,853
Switzerland
44,388
Belgium
38,559
3
Japan .
••
^*555
1
6,544
China . . . . . . . . . .
Z'?™
23,940
25,443
23,940
Egypt
°'*f?
7,088
7,088
7.088
Cuba
°>544
658,485
1,599,886
Germany .
OA?
1,049,573
5,482,509
Italy .
ft1*26?.
1/ Included in total imports, column 2,
Prepared in the Bureau of Customs.

iy-ss^
RELEASE KORMING NEWSPAPERS,
Thursday, August 12a 1954.

[

The Treasury Department today issued the official notice of call for redcap]

i ^o

tion on Deceiver 15, 1954, of the 2 percent Treasury Bonds of 1951-55, dated December
fa

15, 1941, due December 15, 1955. There are now outstanding $510,411,450 of these
bonds.
Hie text of the formal notice of call i* as follows:

TWQ

Madam*
—Mat

BKSR JtBmmWKX M B S V 19S1-5S

1
NOTICE. OF CALL FOR REDEMPTION
fo
Bonds
Solders
of 1951-55,
of 2 percent
and Others Concernedi
r—\ T~"'

1. Public notice is here$| gt^fjl ilifc all outstanding g percent Treasury Bonds
of 1951-55, dated Bceestfeer 1 & jMS^e^wjIeeeMker 15, If55, are hereby called for
redemption on December 15, I S M I $& vnlef^date interest on such bonds will cease.
2. Holders of these bonds may, in advance of the redemption date, be offered
the privilege of exchanging all or any part of their called bonds for other interestbearing obligations of the United States, in which event public notice will hereafter
be given and an official circular governing the exchange offering will be issued,
J mS

-V *V <*\ *^ -*

«. 1

«>

3. Full information regarding the presentation aad surrender of the bonds for
cash redemption under this call will be found in Department Circular No. 666, dated
July 21, 1941,

G. M. Humphrey,
Secretary of the Treasury,

TREASURY DEPAKTKH3T,
Washington, August 12, 1954.

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS
Thursday, August 12, 1954

H-55S

The Treasury Department today Issued the official notice
of call for redemption on December 15, 1954, of the 2 percent
Treasury Bonds of 1951-55* dated December 15, 1941, due
December 15, 1955. There are now outstanding $510,411,450 of
these bonds.
The text of the formal notice of call is as follows:

To Holders of 2 percent Treasury Bonds of 1951-55, and Others
Concerned:
1. Public notice is hereby given that all outstanding
2 percent Treasury Bonds of 1951-55, dated December 15, 1941,
due December 15, 1955, are hereby called for redemption on
December 15, 1954, on which date interest on such bonds will
cease,
2. Holders of these bonds may, in advance of the redemption date, be offered the privilege of exchanging all or
any part of their called bonds for other interest-bearing
obligations of the United States, in which event public notice
will hereafter be given and an official circular governing the
exchange offering will be Issued.
3. Pull information regarding the presentation and surrender
of the bonds for cash redemption under this call will be found in
Department Circular No. 666. dated July 21, 1941.
G. M, Humphrey,
Secretary of the Treasury.
TREASURY DEPARTMENT
Washington, August 12, 1954

M-*r?
H&EDIATE RELEASE,
y( ^
Friday, August 13, 1954.

^ -

t A

The Treasury Department todtf^ announced the subscription and allotment figures
with respect to the currjagUiSffering of 1-1/8 percent Treasury Certificates of Indebtedness of SeriesBr^5^and 2-1/8 percent Treasury Bonds of I960, to be dated
August 15, 1954, apilrto the holders of Treasury Certificates of Indebtedness of
Series D-1954 and Series E-1954, maturing August 15 and September 15, 1954, respectively.
A total of 12,733,090,000 of the August 15 certificates and 14,633,525,000 of
the September 15 certificates were exchanged, divided between the two new issues and
the several Federal Reserve Districts and the Treasury as shown in the following
tables.
l-l/8g TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES D-I955
Federal Reserve
Aug . Certificates
District
Exchanged
Boston
$
18,282,000
New York
599,761,000
Philadelphia
24,265,000
Cleveland
45,300,000
Richmond
8,807,000
Atlanta
32,639,000
Chicago
112,830,000
St. Louis
43,478,000
Minneapolis
29,190,000
Kansas City
39,384,000
Dallas
10,210,000
San Francisco
35,137,000
5,643*000
Treasury
TOTAL fl ,004,926,000

1,889,475,000
37,341,000
63,433,000
23,512,000
33,199,000
153,799,000
43,652,000
20,864,000
32,519,000
29,958,000
148,586,000
1,469.000

Total
Exchanges
f
94,024,000
2,489,236,000
61,606,000
108,733,000
32,319,000
65,838,000
266,629,000
87,130,000
50,054,000
71,903,000
40,168,000
183,723,000
7,112,000

tt*#3;ft»;oo6

ii,558,'475;ooo

Sept. Certificates
Exchanged

7M42,QOG

2-1/8* TREASURY BONDS OF I960

Aug . Certificates
Federal Reserve
Exchanged
District
73,539,000
Boston
616,098,000
Hew York
30,453,000
Philadelphia
105,732,000
Cleveland
31,246,000
Richmond
59,570,000
Atlanta
369,464,000
Chicago
110,984,000
St. Louis
47,337,000
Minneapolis
83,749,000
Kansas City
63,492,00$
Dallas
134,510,000
San Francisco
1,990,000
Treasury
TOTAL *if»8fifiii,dd0"

Sept. Certificates
Exchanged
f
61,602,000
887,154,000
86,325,000
88,672,000
38,136,000
67,484,000
311,697,000
80,242,000
60,839,000
73,301,000
72,909,000
248,613,000
3,002,000
£2,079,976,000

Total
Exchanges
* 135,141,000
1,503,252,000
116,778,000
194,404,000
69,382,000
127,054,000
681,161,000
191,226,000
108,176,000
157,050,000
136,401,000
383,123,000
4,992.000
f3,808,140,000

&MW

TREASURY DEPARTMENT
MEDIATE RELEASE,
Friday, August 13, 1954_._

WASHINGTON, D.C.
H-559

The Treasury Department today announced the subscription and allotment figures
with respect to the current exchange offering of 1-1/8 percent Treasury Certificates
of Indebtedness of Series D-1955 and 2-1/8 percent Treasury Bonds of I960, to be
dated August 15, 195*4, made to the holders of Treasury Certificates of Indebtedness
of Series D-1954 and Series E-1954, maturing August 15 and September 15, 1954, respectively.
A total of $2,733,090,000 of the August 15 certificates and $4,633,525,000 of
the September 15 certificates were exchanged, divided between the two new issues and
the several Federal Reserve Districts and the Treasury as shown in the following
tables.
1-1/8* TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES D-1955
Federal Reserve
Aug. Certificates
District
Exchanged
Boston
1
18,282,000
New York
599,761,000
Philadelphia
24,265,000
Cleveland
45,300,000
Richmond
8,807,000
Atlanta
32,639,000
Chicago
112,830,000
St. Louis
43,478,000
Minneapolis
29,190,000
Kansas City
39,384,000
Dallas
10,210,000
San Francisco
35,137,000
Treasury
5,643,000
TOTAL
$1,004,926,000

Sept. Certificates
Exchanged
"l
75,742,000
1,889,475,000
37,341,000
63,433,000
23,512,000
33,199,000
153,799,000
43,652,000
20,864,000
32,519,000
29,958,000
148,586,000
1,469,000
$2,553,549,000

Total
Exchanges
I
94,024,000
2,489,236,000
61,606,000
108,733,000
32,319,000
65,838,000
266,629,000
87,130,000
50,054,000
71,903,000
40,168,000
183,723,000
7,112,000
$3,558,475,000

2-1/8* TREASURY BONDS OF I960
Federal Reserve
Aug. Certificates
District
Exchanged
Boston
If
73,539,000
New York
616,098,000
Philadelphia
30,453,000
Cleveland
105,732,000
Richmond
31,246,000
Atlanta
59,570,000
Chicago
369,464,000
St. Louis
110,984,000 .
Minneapolis
47,337,000
Kansas City
83,749,000
Dallas
63,492,000
San Francisco
134,510,000
Treasury
1,990,000
TOTAL $1,728,164,000

Sept. Certificates
Exchanged
""I
61,602,000
887,154,000
86,325,000
88,672,000
38,136,000
67,484,000
311,697,000
80,242,000
60,839,000
73,301,000
72,909,000
248,613,000
3,002,000
$2,079,976,000

0O0

Total
Exchanges
$ 135,141,000
1,503,252,000
116,778,000
194,404,000
69,382,000
127,054,000
681,161,000
191,226,000
108,176,000
157,050,000
136,401,000
383,123,000
4,992,000
$3,^Oo,140,000

-Ifl-mi

y
* •v • '^

;

.y.y'^ ----- *

//s^s

The Treasury Department today invited suggestions from
the public on revision of present rules governing practice
before the Department by representatives of claimants.
The existing laws and regulations are set forth in
Department Circular 230. Announcement was made some time
ago that revision of the circular was contemplated.
Suggestions should be forwarded in duplicate to the
Under Secretary of the Treasury, Washington 25, D. C , prior
to October 1, 1954.

Alft

TREASURY DEPARTMENT
WASHINGTON. D.C.

IMMEDIATE RELEASE
Friday, August 13, 1954

H-56O

Announcement was made

some time ago that revision of the circular was
contemplated.
Suggestions should be forwarded in duplicate
to the Under Secretary of the Treasury, Washington 25,
D. C , prior to October 1, 1954.
0O0

£l i

STATUTORY DEBT LIMITATION
AS OF July 31, 1954

TREASURY DEPARTMENT
Fiscal Service

W^hington, A U g U S t # . l £ , ( 1 9 ^ 4

shall be considered as its face amount.
The following table shows the face amount of obligations outstanding and the face amount which can still be Issued under
this limitation:
Total face amount that may be outstanding at any one time
$275,000,000,000
Outstanding
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills
$
Certificates of indebtedness
Treasury notes
_
BondsTreasury
Savings (current redemp. value)....
Depositary
Investment series
_
Special FundsCertificates of indebtedness
Treasury notes
Total interest-bearing
Matured, interest-ceased
Bearing no interest:
United States Savings Stamps
Excess profits tax refund bonds
Special notes of the United States:
Internat'l Monetary Fund series ...
Total

19,5H,6l4,000
18,405,054,000
36,956,720,300

74,873,388,300

80,377,017,450
58,005,343,915
417,270,000
151,570,324,365
12,770,69?.000
28,577,905,000
42.152,078,400
13,574,173,400
268,595,791,065
356,781,410
49,710,281
1,224,763
1,442,000,000

1-.492-.935-.044
270,445,507,519

Guaranteed obligations (not held by Treasury):
Interest-bearing:
18,935,036
Debentures: F.H.A
Matured, interest-ceased
1.965.475
Grand total outstanding
Balance face amount of obligations issuable under above authority
Reconcilement with Statement of the Public Debt
(Daily Statement of the United States Treasury,

20,900,511
270,466,408,030
4,533.591.970

.#^X..3±^i2.5T.
\i^J....^y./..yJ^?.}. ,

)

(Data)

OutstandingTotal gross public debt
Guaranteed obligations not owned by the Treasury
Total gross public debt and guaranteed obligations
Deduct - other outstanding public debt obligations not subject to debt limitation

270,983,629,652
20.900.511

271,004,530,163
538.122,133

270,466,408,030
&-561

STATUTORY DART LIMITATION
AS OF July 31, 1954

dl' "y

TREASURY DEPARTMENT
Fluent Service

W.eh.nqlon# .AU^USt„l?^ 19.5.4
Section 21 of Second Liberty Pond Act, as amended, provides that the face amount of obligations issued under authority
of that Art, and the face amount of obligations guaranteed as to principal and interest by the United States (except such guaranteed obligations as may be held by the Secretary of the Treasury), ''shall not exceed In the aggregate 1275,000,000,000
(Act of June ?6, 1946; U.S.C., title 31, sec. 757b), outstanding at any one time. For purposes of this section the current redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holder
Bhnll be considered as its face amount."
The following table shows the face amount of obligations outstanding and the face amount which can still be Issued under
thin limitation:
Total face amount that may be outstanding at any one time

$275,000,000,000

Outstanding
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing:

Treasury bills

Certificates of indebtedness
Treasury notes

19,511,614,000
18,405,054,000
36,956,720,300

74,873,388,300

BondsTreasury
Savings (current redemp. value).,..
Depositary
Investment series

80,377,017,450
58,005,343,915
417,270,000
12,770,693,000

151,570,324,365

Special Funds-

28,577,905,000
13,574,173*400

Certificates of indebtedness
Treasury notes
Total interest-bearing
Matured, interest-ceased

42.152.078.400
268,595,791,065
356,781,410

Bearing no interest:

49,710,281
1,224,763

United States Savings Stamps
Excess profits tax refund bonds ....
Special notes of the United States:
Internat'l Monetary Fund series.

1,442,000,000

Total

1,492,935,044
270,445,507,519

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A
Matured, interest-ceased

18,935,036
1,965,475

20,900,511
270,466,408,030
4,533,591.970

Grand total outstanding
Balance face amount of obligations issuable under above authority
Reconcilement with Statement of the Public Debt
(Daily Statement of the United States Treasury

.ViU.k^...^..^...../.?.!:.
i}i^7....w9./....^2}.
(Data)

OutstandingTotal gross public debt
Guaranteed obligations not owned by the Treasury

Total gross public debt and guaranteed obligations
Deduct - other outstanding public debt obligations not subject to debt limitation

B-561

)

270,983,629,652
20,900., 511
271,004,530,163
^9,3.32,133
270,466,408,030

•*v<
August 39 1954

The Following transactions mere made in oi^ct and guarautaad securities of
the GoTern^ient for Treasury investments and zt-her accounts faring ye month of
July, 1*54'

Sales

|33,53u,3"0.O0

Purchases j, ImZfOtKiOa'JO

| S g d ) C h a r ^s

T. ^•"••o5

o
?;ii»f, tr**esr*5nfc« ^pmite^yife

TREASURY DEPARTMENT
41

WASHINGTON. D.C

yK
IMMEDIATE RELEASE,

TfaLUfifl it ni*if« wml/mb^ •! 5 j 1 fi)$4.

During the month oT^mmm*\ 195k. market
transactions in direct and guaranteed
securities of the government for Treasury
investment and other accounts resulted in
net sales by the Treasury Department of

oOo

TREASURY DEPARTMENT
WASHINGTON, D.C.

njiLEASE,
vcr.lay, -yygust 16, 1954.
IM^DIATJL

H-562

During the month of July I954-, market
transactions in direct and guaranteed
securities of the government for Treasury
investment and ether accounts resulted in
net sales by the Treasury Department of
$21,666,300.

0O0

4lh
BEISASE MINING ma^k.yy,
Tuesday, Augast 17, 195h«

the Treasury Department announced last evening that the tenders for $1,500,000,000,
or thereabouts, of 91-day treasury bills to be dated August 19 asd to mature Koveaber U
195U* which were offered on August 12, mere opened at the federal Reserve Banks en
augast 16*
The details of this issue are as follows:
total applied for - $8,353, 757f 000
total aeeepted
- 1,501*100,000

(la****** $^7,»J6,pQO
apmradoma,
noncospetltive oasis ana accepted la
full at the average price sheen below)
Average priee
- 99*773/ Equivalent rate of discount approx. 0.89& per annua
Range of accepted eoapetitiv* b*ds$ (Excepting one tender of $150,000)
Hlfk - 99.730 gquivalent rate of discount approx. 0*370$ per annum
'L*m
~ 99.771
•
9
m
n
n

0.90^ «

(5 percent of the amount bid tar at the low price was accepted)
Federal Reserve
District

total
Applied for

total
Accepted

Boston
Mew Tork

Cleveland
Richmond
Atlanta
Chicago
3t« Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL

U8,1Q1,000
1,697,690,000
31,319,000
51,329,000
25,013,000
29,957,000
216,206,000
42,929,000
20,025,000
eJ,«5,000
514,780,000
92,263,000

$2,353,757,000

lt6,601,000
966,0U0,000
21,319,000
51,829,000
21^,313,000
25,257,000
166,619,000
31,979,000
19,925,000
39,235, 000
31,030,000
7k,A8,000

$1,501,100,000

TREASURY DEPARTMENT

"> /

WASHINGTON. D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, August 17, 1954.

• ^ • •

H-5&3

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated August 19 and to mature November 16, 1954, which were offered
on August 12, were opened at the Federal Reserve Banks on August 16.
The details of this issue are as follows:
Total applied for-$2,353,757,000
Total accepted
- 1,501,100,000

(includes $257,496,000
entered on a noncompetitive
basis and accepted in full at
the average price shown below)
Average price - 99.773/ Equivalent rate of discount approx.
0.396^ per annum
Range of accepted competitive bids: (Excepting one tender of
$150,000)
High - 99.760 Equivalent rate of discount approx.
0.57Op per annum
Low
- 99.771 Equivalent rate of discount approx.
O.SOofi per annum
(5 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco TOTAL

Total
Applied for

Total
Accepted

$
45,101,000
1,697,690,000
51,319,000
51,029,000
25,010,000
29,957,000
216,206,030
LLO QOC .^.yo
20,02:,000
43,635,000
54,7cO,000
92,266,000

$2,353,757,000

$1,501,100,000

0O0

46,601,000
968,040,000
21,319,000
51,629,000
2^,31o,000
2D, 257,000
166,619,000
51,979,000
19,92^,000
39,252,000
51,030,000
;

• = ^ ~

—

« \J yj •J

•r

t
tm

- 23 *

further study,

la M s Bus^et Wammmm*

flaced in this mtmm*¥

the trmtmmt

problems of ma mil mmd minim
'4^'K ISnttHfli <wtwfcJt

*frasejp J—;^MSKSMsaMh,^lft

ts* Freslaeat specifically

of capital gains and lasses,

iMustries, tiia text treatment of

JiawttfMa&a^K S M S ^ ^ jMSkaife

jusfcjffi

•l$js^A.^(te "mejiOij'i111 4 ^ M ^ H I M ; A M & * I ^

^tssaii^in^asa jjt'jf^1* ^ f c s w w % * ^ 49a

for future legislation.
We t w w ts*t ttie j@® of tax revision Is sot
as& eaaagiag mammsy It %m necmmrily

a eoatiaai^ « « . •

*********

the Pvamtdmmt mid mhm. ha sigsai tae bill, I M S *law is the excellent
insult mt cooperative efforts sjr tit® Congress am& tee Be$earta*eat of the
to girt-, mst tax code its first eoas$>lete revision ia »er«aty*five
.

It is a good tarn. Xt vill benefit all Jlawicass,*

He bcllsvs also teat it earn safes- a

KSJSST

coBtribaUoa to jbeerica's

laws urged reaomi of tax
itralata. We believe teat tela till goe* far is that diirectioo. The
tax ©ysteis, however, earnest itself provide the grovan.

Sfeacts will ee^eM

ise offeaslasttaseaawi iavesters to tale ijsproveneat ia our

J a p s * 16* Ift*

d'l M

• 28 freeiieitt,s reeoaiaeiaiatioae mmd ieslgase: to eneenrage Halted States
iavsafessat abroad. Aaoag taea m e a iWpoi&t redact tea ia the tax
i.

am immm

•

••

tram production Sorest*

Critics mt taese propoaais made a strong flam to the Senate
Comittee an Flamsss for farther ii*sf»Uasttea«
m&teemmt could am isass** &y thorn emmrmd

Bowevsr, ae

witil respect to ttos

t^pea of ineoae sblsJi eere to am tmmd at the reacted rate* km a
result, this provision, togetasr wit© eertftla silled profesais, was
atrieaea from tae M i l .

Siaee taa -teste proxies remised -msol¥*d

at tae tise the M i l mm

ia ^aferaaee, aest of tae jpreposed eaaafts

ia. Vm traataeiii of fereiga tmmtm do mat appear ia tae new law, tea
principal sjuNqptUsis beiag tae elimination at ma overfall limit oa
tae forei&m taa credit arid tae exteaalsa #f tae credit to sasreaeiiere
of reflated

The taxation @<r foreign iaeome, taerafere, requires fartaer study*
fee freaideat*s pmp&aala alee l a s M e d tae eiistiaatioa over
a 3-y*ar period of tae penalty taxes sa teteresrfstate 4lviae*M£a and
consolidated returas* ssvsvsr, tae aetiea taken ia tae fiaai sill
•wm mattmad

to tae teweriag of th* affiitettea retmireaaata to aa

m psreeat mt stock ovmmhtp

teat amd tee ^limiaatioa of tae 2 percent

tax on esosoUdsted retstrms in the eaee of regelated public utilities.

tl'yU

• «l -

ia*lamisls ant tuestioaad wHetaer it m

yosstbls ta freserifce

saeetiaaleal role* e%teli would e w e r arts*.****!? tae wide mrtmty of
pham

ia ass*

Some asistatned taat thtss vrsvisiasui dieertaiaated

against avail f i m s asd. elntmUftsd ptom wHiea eot&id fjumilfy mdmr
the old law. Ot&srs felt taat tae mm miles were too lax sad would
permit tae fiaalifieatioa of dtserimirjatGry flame*
la tfels imstasiee, Coagres® aJbaada^ed tae new sxwrlstatts, sad
r«turoe4 to tae bmta outline® of tae old law. Siaplifioattea was
deterred psadias fortssr stagy*
fa ftee Haas, assfgff Ua
Them am
ym

ham, ®mm lav****** eeeti^aa of old lav, %mml%mm® soae widely

crltteUsd piwisteas, mm
wwhammd*

oarried w r

iato tae new Code largely

tble is trm mt mmt mt the amlaa pwris*#»s.

Moreover, mm® tmmma tarn sswvlsioas watea would ham bee-,
emamged nadar tae House till mere restored to their old fora ia tae
Senate. fUe tie* a m i i a M e erne too efeort fmr worfclag oat sewrai
problems wtsiefe developed after tae M i l aad tae aemefit of eublte
mmarmtiny*
title, for sxsttsis, mm tae fate of s»*t of tae profoned
stasias ia tae tax treatment at tmmmwa obtained frost fereiga sources.
mm

Wmm

mill go***la*d a sai^taatlaX grosas of proposals foUowtsg tae

sy-t

• 20 lo doubt we ears aot been sals to sealers all oar priamry
objectives to tae exteat taat see* taxpayers desired*

One fast wfelcfe

emerged clearly from our work is taat objectives freeeestly mmmtlist
wits oae another, for iosta&se, clarity is aot always esase&eat wits
siapiieity or brevity, sad at aaay peiats oar efforte to make tae sew
law clear end easy to wort wlta have eoeooaarliy resulted ia were
detailed provisions tarns taose eoatalaed la tee 1939 Code.
Siapiieity sad fairasss are also sometimes iacoapstiblo. theme
was seat siapiieity frequently raise etaer prssiems wale* defy simple
solutions*
war wora wiva *&e peus&ea* pror»**,sBajr»sg saa swses se^tes p«wv*s*oas
illustrates tats type of conflict. The reguiatioa* asjder taa old law
amd been ess*)*** to widespread critic lea ss eelag oesr^esylleated,
.. **+

' -•• mlaf

rsstrtetivs, sad uaeertaia* there were smay eeaplaiote taat taxpayers
- u

asd to wait a losg time for ladividuel railage from tae Xateraal saweaue
Service to know waetaer taeir particular plans e,eeiif led.
To aeet taose erttlelsme a-d after esassamtloe with many experts
outside tae Ooveramecit, tae lease sill soygat to spell oat certain
clear-cut rules which would enable taxpayers to deteralae waetaer
particular plmm %aaiif led without esamttttmg teem to Internal leve&ue
for approval* aaslgulty was to be removed* ieeviag ao doubt ae to
• * rite fte* <*&!».

vbiefc plaas were aeseptaaia*
*
p
so eooasr were tae proposed a lap is rules wade pa* lie taaa
criticisms began to eess la. Ussy fouad tae sew provisions too

d'JJ

-mThe mew provisions dealing wits psrtaers mad ps#taersiiip
traasmetiosie are otaer outstanding examples of e iarifieattef*. mm.
sues matters tae old statute was easily iaads^amte. Most of tea !**•
portaat issues ssssadsd upoa a eoafasiag aesm&almtloa of ease law asd
admialatrative ruliage*

Taxpayers foaad it difficult to dstermiae tae

e^ase%a«aees of smaj evarydmy traasaetioos suss as taetommsfor of
assets la to ecA out of a partnership, sales of partaawsaip letereete,
amd mm-easi* distrUmtUms to psrtaare* The aew Cods contain, a
ratloml aad reaeosafeiy flexible set of rules wales will mt eaiy
clarify tae priaeipei tax proa-isms ia tais area sat also mtaimtse
tae dlstsrt»lag effeete of tax csoaeiisrmtioes upoa Stamiaess mmmm ia
tae fmrtsseraatp form*
la tae clarification of tae law tae laeome tax provision*
save heme sreugat lata elemer conformity wits generally assepted
seeouatlag principles. The differencesfeetweeatax aad susiaess
eeceuatlag waiei* existed uader tae old law were irrltatimg mad
sometimes repaired &usii$ssames to seep more taaa oae set of feemsa*
faese differaaces related eaief ly to tae tialag of tae receipt of
iocome mad the deduetioa of expeasee*

Veda* tae new law eee3i item.

of iaeome or expsasm willfeeeeuated saly once, out tms timiag will
accord wits geasrmliy seeepted aeeoaatlag priaelpies.
I.

Bsiyciag *f Q s ^ l f f f

Thm* were tae priaeipel efejeetivms we souglrt to memisws ay tax
revision, witaim tae limitatioa oa tae loss of raveao* to wtilela 1 aave
already alluded.

A'J'A

w l U mm permitted so tea* mm
tlsav

He believe, therefore, that tals portioa of tae acv law will also

policy*

<..

Clarillcatioa was also ome mf tae
mi the law dealisg vita

sad a very simple sat of rules asm seem tetrmdmeed waiefe will
of tlst vast aajorlty mi

4'M
- 1? • TH^KBS*CT*J^

A s provision of tae old law wnich aaampted $5,000 of death bandits
*»»*a $ Jl

1**'si' fit** .iiitwiwh.% # m v a m a a

*&•***! hsmamasrtMl *w»-4 ea*edf •sum rf*^ av dS. >^-** «•>•*«• j*vjifc^l

nttmrm^ rvafusrft

%* aa#£

as H e*j&

$*m*y*»*Jk

used to avoid tax* fas $5,000 limit applied to fs^aemts by amy one

emh employer t»m?i $9»0Q0 death temmfit, tarns providiag tae beneficiary
vitm exempt benefits mamy times $5,00©. The mew law closes this loepmola
by allowiag oaly o&e If ,000 siieatptiom for each employee*
these are examples of tarn way tkm tarn revisioa sill preveats businesses
mad iattvimvmls from avoiding tfceir mhmm of tae taat Irardea* These loop*
Dole cloai.^ provision* will save rsvmmme, make the tarn system fairer,

A fourth objective was the clarifieatloa of tarn taa law. For years
•*ii.»

y m m

taxpayer* s a wteeeapleading taat tmt lawteamade clear amd simple so as
to lighten taa surdem of ceepliaace ami reduce tfe* samsmt of paperwork/
3m the revistea, taa psvjrtmlmm* ** ts» *U*v save seem sarxmrngsd in a
w e

lo^cal <swm*w» obsolete mmterial ems seem deleted^ aad the language

Iwoitin u ^ j a t

wum&M%

nMtwrat

i^APf'illD

AWtaS' n a h ) illlWttf^ihWilSilJkllffi —

Xft

9S9tt§M 4"—**^yt,JfcOJF,

* * M f l

and admlstetrmtivv rulisgs, clear statutory fslisme* teas tesem provided.
We Have triad to reduee t© a mioiasim tae situatteas la which heavy reliamoe
is placed @m tmm J*id#*mat of tae tetsraal revemue agsmt*

4 OK

a* fft«rintfr Bamefits

m
limit if psid

tc$lGO**eex.
is ***** fairer
to ell

§*fft^UB'iffii'ilsof life Imsmrmmem Paid in "^'"tslliisints

lift

am lift
to tax wit* tin
£1**00 a ymar pmlm to

• Of course, life

- 15 •

1'JH
a\mSammWmmm^

For i—mjntef taxpayers were amis to mm* m device

IBMEM*,/

xmowa

ma the V ******* »toaa tesll-emt" to stpfcem off Imrga a c * « a * t e d
saralags from a eorporatiom mt capital galas rates* Thla was dome
my aavlmg tae sorporatiom Imams to *sa*aim stoesl*&id*rs s moataaasle
divides* gf jmmCmifim* steex w&tea was later ism**—d,

fme revised

Come taxes as ord^lmary lasoms tm* proceeds of tarn sals or redeaptlom
of pi*fsited stoma acmmfred 1m smate tramsmetloms*
ffiPiffSSffii Tl I Wm m»S8*»S*S^Tff^S
xmm m*w Gmm* will also evrte tarn traff teslmg 1m mat opmrmtlmg
1mm* emrryevmrs* Uadsr tm* oldternIt was fr*%*w*sjtljr posslsle for
a nnns**nn Isjgtmmms tm ramme* its tarn IteMlityteyjaveaaslag a
eorporatiom waiem mad lost momey* fas mew law elisdmste* tm* carry-

is jsariaaassd sy asw owmere vital* a a-y*mr period sad the Imm eorporatiom tfamrsmfter dees mot comtisue 1m the same ouslmess*
3* IDollaiisitels Cerueratioms amd rartnsrsfelme
•

;

mam\\W3*\\mmWm%%mm^

The mid Imw emrsmd tm* mm* mf sp' oisllsd trsl Igpsflilit

IIIIIIMBHHSIIIHH

wmtem were lisjal**Btam la a asjamer taat mt ome tims rmstrleted tm* tms
H shinty to a empdtal gates tax oa the amarvholamrs* Warn m*v law
mams* tjssss cmrwm mora rxmmramm* sma alas lamomms remt3rtimt4oms om
eedlmpmlals pmrtmssvmlps stitch amdtesemover loomed umamr tms earlier

A'J't
•1%
this tax is

shift to

as to

for

will eliminate the disturbing

its

will follow witfe

ftvails itself

Its

c.
ia the old

-VH

- 13 -

of losses Is eatmaded from 1 tm B years, tarns pt^vtaMUeg, &* eombiaatioa
with the 5*yemr emxTyforward, m total spam of 8 years for shsortelmg a
loss. The additioaai esrrybsex laereases the possibility mi lassifts
relief through taa refunds wham temolmess Is losimg •oamy amd assds tms
relief most*
fhe asw tew also ellmtestss the reemiremeat that tJs* less carryover tee decreased tey mm mdjuetmsal for ths Islsmompsmj dlvidoad
vm*j^*j*j*jm> *r m

VBS*WSV

w^M*VpVj*vjs*jr

vjsmv

jjpvmm* *s^*^mf*jsa*^KmF

tevvfvmmi

VPV»—*mvp vawssjsms^am^S'Wp^***** euvjava?

wssssVj*^^^*sm»^a^uamsTv*

imtereet. these ehmmsms eat dowm smhstamtlally ths tms (fllssiisiilsfpi*
of businesses with umunin emraiage, vhleh are mpt tm tee the ummsmally
risky eaterprisms that arm of such eritieal Importsmee to the developmeat of the emavjemp*
5* Tam amUoreasoaeteio Aecumwlatioa of Surplus
fhe cheaQie tm tm* tax oa the uarsssomttels **t*mvl*tlcsi of surplus
w l U also contribute tm the ewpswsioa of the eeemomy. wmmsr tm* old
law, the applleetlem mt the tax was vm**rt*ta; am* Its Impact, wham
imposed, salisixaly harsh* Sf ths O m * meant teeliewd that the retaiaed
*»w*f«»gp of a smpmiatlum ware exeesslwe, the tasj mjmf was required to
Jsmoustrete that Item was mot the ease* tm* m*u••*•••j evidence was mot
slwsys easy tm siissiiil* eves when tm* retemtiom served s legitimate
business purpose, pertleularly teeeause tee teapayer had tm show test
there waa am immediate amd spmelfle use for ths rstslmed earalaga.
t&e tax was therefore greatly fsmrmd *a*)*eially tey small teusiaees
amd tsmdmd to fcspmm* sad distort iavestment program**

<1VM

•m•

*ur mow $rorlsloms arm, mevmrthelsss, a s1gv1f1s*nt step la the
right directiom* She %%Q earluslnm Is a B«*temterly iapcrtamt fsature bflcrnms* at will give smmll tmxpeyere m proportiosmtsly greater
iaesjstivm tm iawmmt dm eaulty seettritlas. It Is s a U s m a U i*a«rteat
for the growth amd stateiUty of the amttea teat eajulty fuaftsteemors
r—ally avallahie tm mew aad growteg buelnessss aad that tarn owasrship
of corporate enterpriseternipr**i evsa amre widely saoag mil our
S i t lSiSJlil*

*^^^ftg
e_

mj^aawah amd sxaarijssatal fiaaammltures

***

*^pgfl-'y^g* 1 - •"••••» .*^wap*g*> «•!• "J 1 ^"* . * * ^ ^ ^ * J » - T - » - — - •

•Stem 1939 Cam* mad* mo spsclfis prmvtetem for tarn *f**msrom sad
IILMJISI

lissotsl sm^ps*m£tmr*s vales are mo vital to tea growth mad im-

Imrge tea*taessms with rmsmlsr rssmmreh sad ss^pertsmmtml temdgeta have
teamm amis to dai&st most mf these sxpsases smscvamly* flows¥wr, la
ths rear mf amay tintfll tevmtesmmsm* naffrlff1 to afford a rwmmlmr budget
for x*Hssareh, dftiujfrt ham exlstsd emasmralag ths ammmstlhdllty of such
7
wil>*iMl1tws* i ||||'emsar# wham they ware smmAsmlteev* thsr* was ao
iift'iPrtm that tbmy r*vldternsmortlsed over a dmflalte ported or that
aa shsmdemmmat terns iMmmi te* est*hltehed* xtea m*w gem* iiliss mil taxpayers ths optlom te deduct svmh expenses earrsatly or te capltaliae
thsm mad write team off over a pmrted mt mot lam* them $ years.

ths a*w earn* mail tern fmirer mad tea* burdemsome tm businesses
with irrmauler asm fluctuating •erai&g**^ th* period for ths carryback

- 11 Dmder tee new Cede each stockholder will tee permitted to exclude
from his gross imeome up to $50 of dividends sad will tee allowed a credit
against tax eejaal to * percent mf the dividends ia excess of the exclusion, ths amount of ths credit is limited te 2 percent of the stockholder's total taxable income in 195k and to * percent in later years*
the mew law is m partial restoration mf the treatment accorded
dividends prior te Jfjo* when the first imeome tmx lav was enacted in
1913, m moraml tax was .wnosed mm individuals mt ths rata mf 1 percent.
In addition, a tmx was Imposed em corporations mt the rate mf 1 percent.
At that time, dividends were completely free mf tern normal tmx la tee
heads mf the individual because, aa the Committee reports on that get
state, the corporatism mas merely the collecting agent far the shareholder, aad the Income should hm taxed only ernes* this principle continued to be recognised in the income tax law until 1936 with divlemmds
betes exempt from the moraml sax but subject to surtax.
te 2936, te the confusion attending the enactment of the undistributed
profits tax, ths inapt fun mf ifvishsst* from tae aormml tax em individuals
was abolished.
Our mew lav restores ths historical csmctyt mf avmtimlag double taxation by adjusting tarn tmx mf tea individual dividend rmeiplemt, bat ths
ammmmt mf the relief te emsmar*#xvdSy amsmst. It is by no smmms ths
equivalent mf tea pre-1936 aormml tax exmnmtlom amd te much availiir than
either the 20 pmreeat credit allowed under the Federal income tmx law
ia Canada mr the adjustaent made under ths British lav*

A 91

- 10 *

the Ufa of te* prmpmrl
Ufa mf

will

of t&e full

a result

Double taxation mf dividends

a
te a majortejastte**a

it is
#13,000*

* It

able la

dry

tea failure of tax immeiimm mdew tarn strmlght^llas formula to
eemp paoa with true 4%rsmi«ti#a was diss^sragtag 'te plant mmdesralaatioa
ia* esonomle pi*«r*ga, particular iy whea tae iavmstesat was Of a'*****
tang* character mad involved a eeasiiermbi* busiamss risk. fte* mareaiis*
kiamlly aim write-off' also aggravated the problem of ftemaeimg expaasloa*
taa smv Code will glva taxpayers much greater latitat* la' th*
seiamios mf metiiads of dmpreeintiea and mltev a more rapid write-off
of tee ten &asis mf tee prmperty* ~-£^~th* taxfmymr will be pemitted to tsmpute emjrmalmtltm under the
oa«lialttg*t*ia*em aet&od at twiee the stf*Jlgmt«ltea rate. Imis till
conform tlte'a*U*«*a*4a deletions more *******'te true *myhtelatlaa aime
about tiN^teirds of the east will be written mtt daring tee first half of
the aa*vt^gv*U*vm#' as eompmrmd w i t h ' * W mm#4si*tf wider tie ***m*#t~ils*
formula.
m i l e dissuasions «#mes#aihg th* mm provtslma* te^e tended te
eoneantrmb* aaam''**!***^

speetfte frmvtates

has also been malS'lW the me mt the &^«of-t^-/eRrfi'-digits
method which la some res^eets tm isor* liberal team the

WO^pmrmnt

^cli^is^Hflame ****ttim« a m V a t W T * * other eoaslstent matted
will be: emmttftmml* so lief a* "it does am* prmmm"
?

thaMftfeo*e allowable mem

larger:'*mm*vtteas

ths fCl^pereaist dseliat«f-bald«te* fstwsla

<feriiig 'the firsttern-thirdsof ths aerviee life mf th* asset*

%ste*»

of emprsmtettea wteiete were proper uamsr the if|9 Cede are speslftemily
recogsised aawmr the um lav*

•

*• Bit JSfaAftf %ten*ats to Mmimae m^mmim
the second objective of our work was the reduction of tax
deterrents to the expansion mf Investment 1m private bmstnmss* fate
expansion is meemssary for th* pro&ietims of better gmmis mt lower
prices aad the creation of more and better Jobs, m number mf the
provisions in te* new law are focused on this objective. Ths most
tefortant of tease is a new mad more realistic trmmtasm* of
smprsmisttea*
"i.' Bsprmstetleit

**** **

fits frovistea''in the 1939 Co^le relatlag te dmprmeiatlon wa«
brief amd. seiseral. It s*wmiy"**x)*la*d *a reasonable alia***** for

for mhmtmmamm} (l) of property used in a trade or business or
(f}## ; property held for the preset k m mf ineom*^

the spmctfie

rates ^vmrateg allowable- *4a***ftvaa and psmemdnres verm left to
m&ul&tt®m

and adaimistrmtlw practice. While vartem* methods mf

apportioning the cost of the' ia**a*r*y over its service ill* ware
permitted, limitations imposed upon alternate amthods resulted ia
tee general use of the straigst-ilae fonaala. m i s systeu, which
spreads tae cost evealy over the asset** life, is s&spte/but ths
aedmetions vhlate "it allows are 'fraammmtly at odds with the actual
fasts* Bar instance, as'"everyone $s*va, a large portion of the
value of a new aatonoa H e disappears during tee first year or two
•mt.

.. . •

of its life.

&1&

~ ?bote types of plan* will resolve the same treatesat*

\. Sickness bemmftte paid ia lima of wages are exeapt up to $100
.,- %M ****>* y mt 4x**%y*wma't& p?-^i .*^ •***•***•• fMa?
yaw eliminates ineomitie* In tee treatment of annuities
which existed wider th* 1*3* Cede. The parehaser mf am annuity will be
allowed a uaifona annual exclusion sufficient te pemit tela to reamer his
satire capital tax free over the period of hi* life expectancy.
are given tee option te deduct tee costs mf soil sad water
itlom as • current expense up to 25 percent mf their
tee mid la* theme costs generally had te be capitalised

will be of direct beasfit to farmers end will benefit a U «f «* indirectly
.

nannnnnlnn

mmmd

aemaervatien vrnetiee*# •>:tmSm •*** • Wifaalia^**
arm illustrative of the relief gtvem iiaMflamal
.

Substantial assistance ami

at a relatively modest cort. ' A great
tee lav mere certain,

'^ " - ~ 1**^* '®ir§

-, the taxpayer bee been given en additional 30 amy* in
vbich to file his return? abomt a million people haw* been relieved ;;
of the' respomsibility of filing declarations mi estimated tax; for
'<£•

still file item return, th* rulee
and tbe penalties, whsa
&*s\*. gs^ai******** &^r#m *** ftrgt pmar m te.

A <K
-6Restrictions oa tee deductibility mf charitable contributions
have been eased*

In addition te te* 3D percent of the taxpayer's Income

allowed under te* previous lav, aa extra 10 percent is allowed for contributions to hospitals, churches, or educational institutions.
Discrepancies between th* taa treatment of social security benefits
amd other forms of retirement incoae have beam reduced*

Setlred persons

receiving income from pensions, annuities, interest, rente, or dividends
will be entitled te a 30-percent credit against tax on as much as $1,200
of such income. This v l U exempt aamy elderly retired persons of *md*st
means from the incoae tax* The credit is reduced for the amount of social
security benefits aad other exempt forms mf retirement income te order te
prevent duplication mf exemptions aad eouaUse tee tax treatment of various
y ; yy ettr%.
type* of benefits.
Under the old lav, taxpayer* were denied deductions for th* interest
• - <-.,-y..-::-.••• e -

,..:. ,

. -

:•*&*?

,y.

included la carryiag ehargms oa inntallaent pwrehasm* vale** the Interest
element was separately stated*

the aew lav specifically permits tee

deduction aa Interest of a portion mt the carrying charges, up to 6 percent
& -a- •
svaw -•>- ...--- :^
mf th* urnpald balance.
-

•

-...-

The new law nakee It clear that premiums sold by employers for
• • - " : • ' • " - . .

•;

r -.,\

$•

;.„•,.•

health aad eccideat plans are aot te be taxed aa income mf the employee.
Under prior lav, sickness aad accident benefits financed by tee
employer were exempt If paid under an insured plan bat were taxed If
provided under m aonlanured plan* Under the new lav, benefits paid

A?K
-5* f^Jr^f^^r^^f

iamopities

hte

child 1

age of 19, or is a

A
will not
of the
will, for a j*rtod mf 2 , _ . ,

of
full
wives la low

willb*

while at
paid up 1

$600*

In the

**j5mm»

with

mf tea taxpayer's income will
is

bill*

A-.y
-%•

vlth tan lt*%jll%fiMi te

is
will be

tat

yr^
first balf

flrmtj

mill

• \tsfc* **

t-0)
(J)

and (%) clarify the lav*, 1 want to
achieved te

- 3•
m way* aad Jfteans lu th*ft.aster of 1*J§

fhr*mgh*«t our work on the revision bill, we
s***^**ft* tb* i**4.m*«*U« mad

vs^***?*' ssRsre mx «**

Jab., as wall as th* x***,ta** JUr*

,•*

teci#fml in revising emrtedn emmUmm

mt tes alii while it was *,y-

i**f#r* tee inmate*.. . 4 ^ ^ * * **. gap**. «* <*» *****

n. a^ M .l»^ l mi^^fii^ ****v*»te ^ Uat •*» fp^ *#
spa a *
•tea* .£nd**d, th*-.bulgy,of tea &4»iaistre>tiea*» tax
u.

was already ia effect when th* rmvistea bill wma ****** by the
fax r*auctio*i* a-4* dart**, if** .£**** 4?*V*e*U-*v. this la th*
largest total dollar radastlon muring a stagl* year la the country's
hi*Wry, mad rmflemte the a^^nlatrmtimm's policy of
tsxjayers the .aawlng* saxtmatly feeing sade.in
Sine* it would Java seam umvls* -mad irreepeoslh** to make redueti<
* ^ * " W W

_mm-^

- .mi BBJ . *w»»*^*«i -vWP'.« — ^B:

'V ia* IWIMJJ

IPHUUBIH* *f^nM>

« • -

*W ^ *» "*WBBfjB* • • " ' ! * W-^^MBBBBBBBF- i W 'aw ^**H*WBB*W

JB£ VIMe»"»V*|pFwe»*J

4'JM

- 2 •
of iivtag mad
fair tax system witb mlalawa rcstrmiats

tm* jah was te translate
detailed provisions *f th* lav
• a* * jarv>in- •..-.- *,. -c
1.

xhte tech has bcma mmsar way sine* tte»^arla* of i ^ J
th* fraaawry* acting at the J*rs**idmmt«s direction, J#*sed. ***%.th*
Ce^agrmsslemel tax eoamitteea and teair staffs la J*
.c

.^...

_.,

-1 -"-•"

->ji

y'"•*;•••- = •

»s-. ; . £>••=-1""-" -'--;.~^*^ji >•

--.•••^ ^ - • • .

.;,-.

,•

::V-

o*41s>s* ha* ban* fcaptianarSi Xsacsitica am* lx*s*)stetea*l«*

tax staffs, the a a s v a n j ^

aant **% ay tea *Joist

laxmraml msvmaua taaatiom and the j**aria** of

n aw

by iSsrtea 1* Wmlmmm* Wader Secretary
th* frmmmury, before tba samvlamm mam^ammi
Aasacla&laa, Motel Statler, h*# .fetm C H / ,
,3**5 a***, flnweday, savjast %% 195%
jmllsmmfhy mf th* .lew fax h l U
On tSsnday at tela vcch, the r***id*mt signed th* tax revision
bill which constitute* tee first complete mvmrhanl mf th*
tax system since long before the tarn of te* ematmry* tax rcvlelan,
&• y - . • ^. • * i -*,

as yew know, has had an Important pirns* is the fromls***9* f^sgrmm*
i, which mmargsd from the Castas umder tec title
"An act to revise the Internal revenme laws mf the tnited
is a mm paint mt *m*j*x*a*m te tee m l a m t e * of
-# - -- , , -

1 should lite to discuss some of tee principle* basic to tele

Xn his Budget mmmmm
%

tm tee C*agrass early this year,
- )*

•<* *?*

Jvsmld*** stated his pallciiofhy of tax revision, as fmllowas
**levlsiom mf the tmx mmtmm 1* mamdmd te
b*w**m* fairer for millions of individual taxpayers* It
Is needed to restore ncraal ineemtlve* for sustained

continued to grow awing recent years with artificial
taf iatlma. tale is aot a solid
^ ** <*

for prospsrlty* We must restore conditions
which will permit traditional *%**ric*n laitiative and
,a*ala*< to fush on. to

//--

"*4
TREASURY DEPARTMENT
Washington
FOR RELEASE ON DELIVERY
Remarks by Marion B. Folsom, Under Secretary of
the Treasury., before the American Management
Association, Hotel Statler, New York City,
10:15 a.m., Thursday, August 19, 195^
PHILOSOPHY OF THE NEW TAX BILL
On Monday of this week, the President signed the tax revision
bill which constitutes the first complete overhaul of the Federal
tax system since long before the turn of the century. Tax revision,
as you know, has had an Important place in the President's program.
The document, which emerged from the Congress under the title
"An act to revise the Internal revenue laws of the United States,"
is a new point of departure 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
President stated his philosophy of tax revision as follows:
"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."
The job was to translate these guiding principles into
the many detailed provisions of the law.

H-564

- 2 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 build-up had been haphazard. Inequities and inconsistencies crept in. Substantial impediments to economic development appeared. The law itself became complex, cumbersome and, In
many cases, unclear.
These conditions produced a vast number of studies and
suggestions for reform by Individuals, professional groups and
Congressional committees. An extensive accumulation of materials
of this type existed in the files of the Treasury Department and
the Congressional tax staffs. 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 studies.
Throughout our work on the revision bill, 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 well as the fact that in a good many areas we were
proposing substantial innovations. The advice received at that
time from professional associations and well-informed individuals
was most helpful in revising certain sections of the bill 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 bill was passed by
the House. Tax reductions made during 195^- total $7.^ billion.
This is the largest total dollar reduction during a single year in
the country's history, and reflects the Administration's policy of
passing on to taxpayers the savings currently being made in
governmental expenditures. 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 bill
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 be as sound as we could make it.

AK'j

- 3The revenue losing provisions of the revision bill involve a
loss of about $1.4 billion in the fiscal year 1955. However, the
bill also extends for one year the 52 percent corporate rate
which cuts the net loss in 1955 to less than $200 million.
In addition, the bill 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
liabilities in excess of $100,000. Although less than 5 percent
of the corporations are subject to the new schedule, they account
for 85 percent of the total corporate income tax liability. When
the transition to the new system is completed, these large
corporations will be paying half of their taxes in the second half
of the year during which the liability arises and the balance
during the first half of the following year. This will reduce
materially the excessive concentration of the Federal Government's
receipts during the first 6 months of the calendar year.
The chief purposes of the revision were to (l) remove inequities, (2) reduce restraints on economic growth and the
creation of jobs, (3) close loopholes, and (4) clarify the law.
I want to illustrate how each of these purposes has been achieved
in the new Code.
A, The Removal of Inequities
Our efforts to remove inequities have brought fairer treatment
and reduced hardship for millions of taxpayers.
Parents need no longer be on guard lest a child be disqualified 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
student.
A widow or widower who must maintain a home for dependent
children will not be deprived abruptly of the benefits of income
splitting because of the death of the other spouse. Instead, the
tax return of the survivor will, for a period of 2 years, continue
to be treated as though it were the joint return of husband and
wife and, therefore, eligible for the full benefits of income
splitting.
Widows, widowers, and working wives in low income families
will be permitted to deduct expenses, incurred while at work, for
child care. Widows and widowers may deduct amounts paid up to
a maximum of $600 a year for the care of children 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,

>K1

- 4Taxpayers vilth heavy medical, dental or hospital bills will
receive more generous treatment. The excess of such expenses
over 3 rather than 5 percent of the taxpayer's income will be
deductible, and the maximum deduction allowed is doubled.
Restrictions on the deductibility of charitable contributions
have been eased. In addition to the 20 percent of the taxpayer's
income allowed under the previous law, an extra 10 percent is
allowed for contributions to hospitals, churches, or eductional
institutions.
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, rents, or dividends will be entitled to a 20-percent
credit against tax on as much as $1,200 of such income. This
will exempt many elderly retired 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 duplication 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
specifically 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 will 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 eliminates inequities in the treatment of annuities
which existed under the 1939 Code. The purchaser of an annuity
will be allowed a uniform annual exclusion sufficient to permit
him to recover his entire capital tax free over the period of his
life expectancy.

- 5-

Farmers are given the option to deduct the costs of soil and
water conservation as a current expense up to 25 percent of their
gross income. Under the old law these costs generally had to be
capitalized and could be recovered for tax purposes only upon
sale of the land. This change will be of direct benefit to
farmers and will benefit all of us indirectly by encouraging sound
conservation practices.
These measures are illustrative of the relief 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 file his return; about a million people have been
relieved of the responsibility of filing declarations of estimated
tax; for those who must still file this return, the rules have
been made more reasonable and the penalties, when imposed, less
complicated and severe.
B. The Removal of Deterrents to Business Expansion
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.
1. Depreciation
The provision in the 1939 Code relating to depreciation was
brief and general. It merely provided "a reasonable allowance for
the exhaustion, wear and tear (including a reasonable allowance
for obsolescence) (l) of property used in a trade or business or
(2) of property held for the production of income." The specific
rules governing allowable 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
permitted, 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 allows are frequently at odds with the actual
facts. For instance, as everyone knows, a large portion of the
value of a new automobile disappears during the first year or two
of its life.

AAH

- 6The failure of tax deductions under the straight-line formula
to keep pace with true 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 unrealistically slow write-off also aggravated
the problem of financing expansion.
The new Code will give taxpayers much greater latitude in the
selection of methods of depreciation and allow a more rapid
write-off of the tax basis of the property.
The taxpayer will be permitted to compute depreciation under
the declining-balance method at twice the straight-line rate.
This will conform the allowable deductions more closely to true
depreciation since about two-thirds of the cost will be written
off during the first half of the asset's life, 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 liberal than the
200-percent declining-balance formula. Moreover, any other
consistent method will be acceptable so long as it does not
produce larger deductions than those allowable under the 200percent declining-balance formula during the first two-thirds
of the service life of the asset. Systems of depreciation which
were proper under the 1939 Code are specifically 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 life of the property. This
will assure recovery of the full cost over the service life of
the asset, a result which would not always be obtained under the
declining-balance method. Hence, this option removes a possible
impediment to the adoption of the declining-balance formula.
2. Double Taxation of Dividends
The new law provides a degree of relief 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 well 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.
unsettlement.
This makes the economy more vulnerable in periods of business

- 7Under the new Code each stockholder will be permitted to
exclude from his gross income up to $50 of dividends and will be
allowed 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 corporation was
merely the collecting agent for the shareholder, and the income
should be taxed only once. This principle continued to be
recognized in the income tax law until 193^ with dividends being
exempt from the normal tax but subject to surtax.
In 1936, in the confusion attending the enactment of the
undistributed profits tax, the exemption of dividends from the
normal tax on individuals was abolished.
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 relief is comparatively modest.
It is by no means the equivalent of the pre-1936 normal tax
exemption and is much smaller than either the 20 percent credit
allowed under the Federal income tax law in Canada or 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 feature because it will give small taxpayers a
proportionately greater incentive to invest in equity securities.
It is extremely important for the growth and stability of the
Nation that equity funds be more readily available to new and
growing businesses and that the ownership of corporate enterprise
be spread even more widely among all our citizens.
3. Research and Experimental Expenditures
The 1939 Code made no specific provision for the research and
experimental expenditures 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 currently.
However, in the case of many small businesses, unable to afford a
regular budget for research, doubt has existed concerning the

AA /
- 8 deductibility of such expenditures. 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
established. The new Code gives all taxpayers the option to deduct
such expenses currently 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 will be fairer and less burdensome to businesses
with irregular and fluctuating 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 possibility of immediate relief through tax refunds when
business is losing money and needs the relief most.
The new law also eliminates 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 substantially the
tax disadvantages of businesses with uneven earnings, which are
apt to be the unusually 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 will also contribute to the expansion of the economy.
Under the old law, the application of the tax was uncertain, and
its impact, when imposed, extremely harsh. If the Government
believed 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, pay;: cularly because the taxpayer had to sho;v that there
was an immediate and specific use for the retained earnings.
The tax was therefore greatly feared especially by small 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. Eovr-^ver, under the new Code the ta.ypayer, bv
supplyirg informalion, 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 will be
required to show what the retained earnings are necessary to meet
"reasonably anticipated" business requirements. An accuiiiv-.ation
of $50,COO Cuii be :i:ade without threat of penalty; and the Lax,
when imposed, will apply only to the portion of the retained
earnings found to be unreasonable.

<MK

- 9By liberalizing the law and clarifying the taxpayer's position,
these changes will eliminate the disturbing influence which the
penalty tax has had upon dividend and investment policies.
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. The Nation
will follow with keen interest the way business avails itself 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 technicalities.
1. Preferred Stock Bail-out
For example, taxpayers were able to use a device commonly
known as the 'preferred stock bail-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 will also curb the trafficking in net operating
loss carryovers. Under the old law it was frequently possible for
a successful business to reduce its tax liability 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 Partnerships
The old law curbed the use of so-called collapsible corporations
which were liquidated in a manner that at one time restricted the
tax liability to a capital gains tax on the shareholders. The new
law makes these curbs more rigorous, and also imposes restrictions
on collapsible partnerships which had been overlooked under the
earlier law.

- 10 4.

AAX\

Sickness Benefits

At the individual income tax level, sickness benefits or
continuance of salary payments during periods of illness were
previously exempt without limit if paid under an insured type of
plan. This was especially advantageous for some taxpayers in the
higher income brackets. The new law prevents abuse by limiting
the exemption of salary continuance benfits to $100 a week. At
the same time the lav/ is made fairer by extending this limited
exemption to all 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 life 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
applied 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 allowing only one $5,000 exemption for each employee.
These are examples of the way the tax revision bill prevents
businesses and individuals from avoiding their share of the tax
burden. These loophole closing provisions will save revenue, make
the tax system fairer, and eliminate economic distortion which has
been due to arrangements adopted merely for purposes of tax
avoidance.
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 lighten the burden of compliance and reduce the
amount of paperwork.

A/i/n
- 11 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 \ihere the taxpayer had previously been
forced to rely upon court decisions and administrative rulings,
clear statutory guidance has been provided. We have tried to
reduce to a minimum the situations 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 internally
consistent rules has been developed. It is anticipated that they
will 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 will be permitted so long
as earnings are not withdrawn from the corporation. We believe,
therefore, that this portion of the new law will also reduce
materially 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 eliminated, and a very simple set of rules has
been introduced which will govern the treatment of the vast
majority of trusts.
The new provisions dealing with partners and partnership
transactions are other outstanding examples of clarification. On
such matters the old statute was wholly inadequate. Most of the
important issues depended upon a confusing accumulation of case
law and administrative rulings. Taxpayers found it difficult to
determine the consequences of many everyday transactions such as
the transfer of assets into and out of a partnership, sales of
partnership interests, and non-cash distributions to partners.
The new Code contains a rational and reasonably flexible set of
rules which will not only clarify the principal tax problems in
this area but also minimize the disturbing effects of tax considerations upon business done in the partnership form.
In the clarification of the law the income tax provisions have
been brought into closer conformity with generally accepted accounting 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 will
accord with generally accepted accounting principles.

AA-*

- 12 E. Balancing of Objectives
These were the principal objectives we sought to achieve by
tax revision, within the limitation on the loss of revenue to which
I have already alluded.
No doubt we have not been able to achieve all our primary
objectives to the extent that some taxpayers desired. One fact
which emerged clearly from our work is that objectives frequently
conflict with one another. For instance, clarity is not always
consonant with simplicity or brevity, and at many points our
efforts to make the new law clear and easy to work with have
necessarily resulted in more detailed provisions than those
contained in the 1939 Code.
Simplicity and fairness are also sometimes incompatible.
Those who seek simplicity frequently raise other problems which
defy simple solutions.
Our work with the pension, profit-sharing and stock bonus
provisions illustrates this type of conflict. The regulations
under the old law had been subject to widespread criticism as
being over-ccmplicated, 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 qualified.
To meet these criticisms and after consultation with many
experts outside the Government, the House bill sought to spell
out certain clear-cut rules which would enable taxpayers to
determine whether particular plans qualified without submitting
them to 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 public than
criticisms began to come in. Many found the new provisions too
inflexible and questioned whether it was possible to prescribe
mechanical rules v/hich would cover adequately the wide variety of
plans in use. Some maintained that these provisions discriminated
against small firms and disqualified plans which could qualify
under the old law. Others felt that the new rules were too lax
and would permit the qualification of discriminatory plans.
In this instance, Congress abandoned the new provisions, and
returned to the basic outlines of the old law. Simplification was
deferred pending further study.

any
- 13 F. The Task Before Us
There are other areas where much work remains to be done. As
you know, some important sections of old lav/, 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 bill were restored to their old form in
the Senate. The time available was too short for working out
several problems which developed after the bill 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 bill contained a substantial group of
proposals following 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 further liberalization. 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 allied proposals,
was stricken from the bill. Since the basic problem remained
unsolved at the time the bill 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 over-all 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 further study.
The President's proposals also included the elimination over
a 3-year period of the penalty taxes on intercorporate dividends
and consolidated returns. However, the action taken in the final
bill was confined to the lowering of the affiliation requirements
to an 80 percent of stock ownership test and the elimination of
the 2 percent tax on consolidated returns in the case of regulated
public utilities.
Finally, a number of important areas were deliberately
reserved for further study. In his Budget Message, the President
specifically placed in this category the treatment of capital
gains and losses, the problems of the oil 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 reserved for future legislation.

/IA1
- 14 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 wl>en he signed the bill,
this law "is the excellent 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 will benefit all Americans."
We believe 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 believe that this bill goes far in that
direction. The tax system, however, cannot itself provide the
growth. Much will depend upon the response of businessmen and
investors to this improvement in our economic climate.

0O0

Atxt,
- 3 XKLUX

but sha.ll bo exee.pt fron 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 anount of discount at which Treasury bills are originally sold by the United States shall be
considered to be interest. Under Sections 1x2 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 7;hich bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold, redeemed or otherwise disposed of, and
such bills are excluded from consideration as capital assets. Accordingly,
the OwiLr of Treasury bills (other than life insurance companies) issued hereunder need include in his incor.e tax return only the difference between the
price paid for such bills, whether on original Issue or on subsequent purchase,
and the anount actually received either upon sal^ or redemption at ..,aturity
during the taxable year for which the return is nadc, as ordinary gain or loss.
Revised
Treasury Department Circular No. 4l8,/aQCsa3E3ca±x±, and this notice, prescribe the teres of the Treasury bills and govern the conditions of their
issue. Copies of the circular nay be obtained fron any Federal Reserve Bank
or Branch.

~*n~

payment of 2 percent of the face amount of Treasury bills applied for, unless

the tenders are accompanied by an express guaranty of parent by an incorporated
bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal

Reserve Banks and Branches, following -which public announcement 7ri.ll be made
by the Treasury Department of the amount and price range of accepted bids.

Those submitting tenders mil be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, in whole or in part, and. his action in any such respect
shall be final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be accepted
in full 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 August 26. lf^k 3 in

castl or

other immediately available funds or in a like face amount of Treasury bills
maturing August 26* 19$h * Cash and exchange tenders will receive equal
treatment. Cash adjustments vri.ll be made for differences between the par
value of maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or gain from
the sale or other disposition of the bills, shall not have any exemption,
as such, and loss fron 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,

mmm
TREASURY DEPARTMENT
Washington

ft-?** *~~
FOR RELEASE, HORNING NEWSPAPERS,
Thursday, August JL9, 19J&
.
The Treasury Department, by this public notice, invites tenders for
y> 3^00*000.000 , or thereabouts, of 92 -day Treasury bills, for cash and
in exchange for Treasury bills maturing

August 26. 195ii

3 i-n the amount of

& 1*502.782*000 3 to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated August 26. 195>U , and'will mature Hovember 26, 19$k 3 "fhen the face

amount 7ri.ll be payable without interest. They will be issued in bearer form onl
and in denominations of §1,000, $5,000, $10,000, ^100,000, §£00,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o'clock D.m., Eastern 2&gxatSK& time, Monday, August 23, 1S$k
m

Tenders will 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*92$. Fractions may not be used. It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which will be
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized
dealers in inv-stm-nt securities. Tenders from others must be accompanied by

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Thursday, August 19, 195^.

E-565

The Treasury Department, by this public notice, invites tenders
for $1,500,000,000, or thereabouts, of 92-day Treasury bills, for
cash and in exchange for Treasury bills maturing August 26, 1952*,
in the amount of $1,502,782,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated August 26, 195^,
and will mature November 26, 1954, When the face amount will be
payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
>

Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o"clock p.m., Eastern Daylight Saving time
Monday, August 23, 1954.
Tenders will 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
special envelopes which will be supplied by Federal Reserve Banks or
.Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers In investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price
range of accepted bids. Those submitting tenders will be advised of
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders
in whole or in part, and his action In any such respect shall be
final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be
accepted In full 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 August 26, 1954,
in cash or other immediately available funds'
or in a like face amount of Treasury bills maturing August 26, 1954.
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, shall not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills shall not have any special treatment, as such,
under 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
'r
taxation the amount of discount at which Treasury bills are
originally sold by the United States shall be considered to be
interest. Under Sections k2 aad 117 (a) (l) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the
amount of discount at which bills Issued hereunder are sold shall not
be considered to accrue until such bills shall be sold, redeemed or
otherwise disposed of, and such bills are excluded from consideration
as capital assets. Accordingly, the owner of Treasury bills (other
than life Insurance companies) Issued hereunder need Include in his
income tax return only the difference between the price paid for
such bills, whether on original Issue or on subsequent purchase,
and the amount actually 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.
oOo4l8, revised, and this
notice, prescribe the terms of the Treasury bills and govern the
•*
conditions of their issue. Copies of the circular may be obtained
^
from any Federal Reserve Bank or Branch.

TREASURY DEPARTMENT
"^ v (

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tar at the i w priee una accepted)
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2k,hh$ym
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tttdtHiiOoo
nffilHi I iinllKimjUlllMiiillMmm

•MOOtTSttOOD

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, august,24, 1954.

H-566

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 92-day Treasury bills to be
dated August 26 and to mature November 26, 1954, which were offered
on August 19, were opened at the Federal Reserve Banks on August 23.
The details of this issue are as follows:
Total applied for - $2,295,504,000
Total accepted
- 1,500,751,000 (includes $216,094,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.749 Equivalent rate of discount approx.
0.983$ per annum
Range of accepted competitive bids:
High - 99.783 Equivalent rate of 'discount approx.
0.849$ per annum
Low
- 99.745 Equivalent rate of discount approx.
0,998$ per annum
(82 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District

Applied for

Boston $ 34,986,000 $ 34,986,000
New York
1,616,313,000
Philadelphia
39,76l,000
Cleveland
72,536,000
Richmond
12,452,000
Atlanta
20,085,000
Chicago
237,214,000
St. Louis
24,445,000
Minneapolis
20,422,000
Kansas City
43,894,000
Dallas
57,300,000
San Francisco
116,096,000
TOTAL $2,295,504,000 $1,500,751,000
0O0

Accepted
893,638,000
28,86l,000
67,536,000
11,172,000
19,041,000
206,774,000
24,445,000
19,368,000
42,894,000
51,840,000
100,196,000

AC?!
A remission of forfeiture was also made in the case of three Charollais
bulls smuggled into the United States and seized by Customs after they had
been delivered to J. A. Lawton of Sulphur, Louisiana. It was determined

that when he acquired the bulls Lawton was unaware that they had been smuggled.
Under the terms of this decision Lawton is required to remove these animals
from the United States.
The Treasury Department notified the State Department of the denial of
a petition filed by the Government of Mexico. The petition asked for the
return of the Charollais cattle to Mexico. The Treasury Department held that
the Government of Mexico did not have such an interest in the cattle, within
the contemplation of Section 618 of the Tariff Act of 1930, as would warrant
favorable consideration of its petition.

ACJ

August 2m\ 1954

The Collector of Customs
New Orleans 16, Louisiana
Dear SirJ
Reference is made to your communications of May 5, 1954 (220-2/24),
reporting upon the petitions submitted by Messrs. Wisdom and Stone, attorneys, in behalf of Alphe A. Broussard, for remission of the forfeiture of
a herd of Charollais cattle and the offspring born since date of entry,
appraised at $1,068,250, seized in your district on July 14, 1953, under
the provisions of section 545, title 18, United States Code*
The petitioner pleaded guilty to the offense and has been given a
sentence of 3 years in prison and fined |10,000 in the Federal district
court at Austin, Texas. Another representative involved in this case was
also convicted for this offense*
The Secretary of Agriculture has informed the Secretary of the Treasury
that the Department of Agriculture sees no way in which these illegally
introduced cattle can be safely distributed among the herds and flocks of
this country.
The forfeiture of all the Charollais cattle seized from Broussard, including the offspring born since date of entry, is hereby remitted under
section 618 of the tariff act provided the entire herd, including the offspring, is returned to Mexico within 90 days from date under customs
supervision without expense to the Government and provided further that
all expenses incurred in connection with the seizure are paid*
If Mr. Broussard does not obtain possession of the animals in accordance with this decision, the case shall be referred to the United States
attorney for the institution of forfeiture proceedings with the request
that the United States attorney seek a decree of forfeiture ordering delivery
of all the animals involved to a representative of the Secretary of Agriculture for such disposition for the account of the United States as the
Secretary of Agriculture deems appropriate, customs expenses of seizure to
be paid from any moneys received from disposal of the cattle.
Please advise the attorneys for the applicant promptly of the Bureau's
decision*
Very truly yours,
(Signed) Ralph Kelly
Commissioner of Customs
APPROVEDi
(Signed) H. Chapman Rose
Acting Secretary of the Treasury

t-i

l-t

The Treasury Department today made public the following letter from
the Commissioner of Customs to the Collector of Customs at New Orleans?

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Wednesday, August 25, 1954.

H-567

The Treasury Department today made public the following letter
from the Commissioner of Customs to the Collector of Customs at
New Orleans:
August 25, 1954
The Collector of Customs
New Orleans 16, Louisiana
Dear Sir:
Reference is made to your communications of May 5, 1954
(220-2/24), reporting upon the petitions submitted by
Messrs. Wisdom and Stone, attorneys, in behalf of Alphe A.
Broussard, for remission of the forfeiture of a herd of
Charollais cattle and the offspring born since date of
entry, appraised at $1,068,250, seized in your district
on July l4, 1953, under the provisions of section 545,
title 18, United States Code.
The petitioner pleaded guilty to the offense and has
been given a sentence of 3 years in prison and fined
$10,000 in the Federal district court at Austin, Texas.
Another representative involved in this case was also
convicted for this offense.
The Secretary of Agriculture has informed the
Secretax-y of the Treasury that the Department of
Agriculture sees no way in which these illegally introduced cattle can be safely distributed among the herds
and flocks of this country.
The forfeiture of all the Charollais cattle seized
from Broussard, including the offspring born since date
of entry, is hereby remitted under section 6l8 of the
tariff act provided the entire herd, including the offspring, is returned to Mexico within 90 days from date
under customs supervision without expense to the
Government and provided further that all expenses incurred in connection with the seizure are paid.

AC A

- 2If Mr. Broussard does not obtain possession of the
animals in accordance with this decision, the case shall
be referred to the United States attorney for the
institution of forfeiture proceedings with the request
that the United States attorney seek a decree of forfeiture ordering delivery of all the animals involved
to a representative of the Secretary of Agriculture for
such disposition for the account of the United States
as the Secretary of Agriculture deems appropriate,
customs expenses of seizure to be paid from any moneys
received from disposal of the cattle.
Please advise the attorneys for the applicant
promptly of the Bureau's decision.
Very truly yours,
(Signed) Ralph Kelly
Commissioner of Customs
APPROVED:
(Signed) H. Chapman Rose
Acting Secretary of the Treasury
A remission of forfeiture was also made in the case of three
Charollais bulls smuggled into the United States and seized by
Customs after they had been delivered to J. A. Lawton of Sulphur,
Louisiana. It was determined that when he acquired the bulls
Lawton was unaware that they had been smuggled. Under the terms of
this decision Lawton is required to remove these animals from the
United States.
The Treasury Department notified the State Department of the
denial of a petition filed by the Government of Mexico. The
petition asked for the return of the Charollais cattle to Mexico.
The Treasury Department held that the Government of Mexico did
not have such an interest in the cattle, within the contemplation
of Section 6l8 of the Tariff Act of 1930, as would warrant favorable
consideration of its petition.

0O0

jfcp

-3 -

but stem bo exeqpt £roe A~II taxation nor? 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 aoount of discount at nhich Treasury bills are originally sold by the United States shall be
considered to be Interest. Under Sections 1*2 and 117 (a) (1) of the Internal

Revenue Code, as amended by Section llf> of the Revenue Act of 191*1, the anc-un

of discount at ishleh bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold* redemised or otherwise disposed of, and
such bills are excluded fro* consideration as capital assets. Accordingly,
the OwTaor of Treasury bills (other than life insurance companies) issued hereunder need include in his ineose tax return only the difference betneen the
price paid for such bills, rhmthor on original Issue or on subsequent purchase,
and the amount actually received either upon sale or redemption at maturity
during the taxable year for uhich the return is nade, as ordinary gain or loss.
Revised
Treasury Department Circular No, lil8,/*s*Ksm^ft4j and this notice, prescribe the teres of the Treasury bills and govern the conditions of their
issue. Copies of the circular nay be obtained frca any Federal Reserve Bank
or Branch.

payment of 2 percent of the face amount of Treasury bills applied for, unless

the tenders are accompanied by an express guaranty of payment by an incorporated
bank or trust company.
Imaediately after the closing hour, tenders mil be opened at the Federal
Reserve Banks and Branches, following ufaich public announcement iri.ll be made
by the Treasury Department of the amount and price range of accepted bids.

Those submitting tenders ¥dll be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, In TTIIOIJ or in part, and his action in any such respect
shall be final. Subject to these reservations, non-competitive tenders for
$200,000 or less -without stated price from any one bidder -Hill be accepted
in full at the average price (in three decimals) of accepted coMpetitive bids.
Settlement for accepted tenders in accordance *?itfa the bids must be made or
completed at the Federal Reserve 3ank on September 2. 19^k , I11 cash or
other JHpediatciy available funds or in a like face amount of Treasury bills
maturing September 2m 19$h Cash and exchange tenders will receive equal
zwxsx.

treatment. Cash adjustments m i l 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, T^hether interest or gain from
the sale or other disposition of the bills, shall not have any exemption,
as such, and loss fron the sale or other disposition of Treasury bills shall
not. have any special trortn-nt, ?.s smch, mrler 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,

TREASURY" DEPARTMENT
Washington

(-(- \ ^ Y

FOR RELEASE, MORNING NEWSPAPERS,
gtesday, August 26, 1954
The Treasury Departments by this public notice, invites tenders for
$1,500,000,000 s or thereabouts, of 91 -day Treasury bills, for cash and
in exchange for Treasury bills maturing September 2, 19^4 >

:5 n

- ^e amount of

$1,500,502,000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated September 2, 1954 .> and'will nature December 2. 195it 3 when the face

amount will be payable without interest. They will be issued in bearer form only
and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o'clock p.m., Eastern jgfesistok time, Monday * August 30. 195L.
Tenders will 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 thre
decimals, e. g., 99*92$. Fractions may not be used. It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which will b
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust comoanies and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by

TREASURY DEPARTMENT
WASHINGTON. D.C.
RELEASE MORNING NEWSPAPERS,
Thursday, .-.usust 26, 1952*.

H-568

The Treasury Department, by this public notice, invites tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills, for
cash and in exchange for Treasury bills maturing September 2, 1952*,
in the amount of $1,500,502,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated September 2, 195^,
and will mature December 2, 195^, when the face amount will be
payable without interest. 'Hiey will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o*clock p.m., Eastern Daylight Saving time,
Monday, August 30, 195^Tenders will 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
special envelopes which will be supplied by Federal Reserve Banks or
.Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price
range of accepted bids. Those submitting tenders will be advised of
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders
in whole or In part, and his action In any such respect shall be
final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be
accepted In full at the average price (in three decimals) of accepted

- 2competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on September 2, 1954, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing September 2, 1954
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted In exchange and the issue price of the new
bills.
The income derived from Treasury bill3, 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 or1 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. Under Sections k2 aad 117 (a) (l) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 19^1, the
amount of discount at which bills issued hereunder are sold shall not
be considered to accrue until such bills shall be sold, redeemed or
otherwise disposed of, and such bills are excluded from consideration
as capital assets. Accordingly, the owner o£ Treasury bills (other
than life insurance companies) laaued 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 actually 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. 4l8, revised, and this
notice, prescribe the terms of the
Treasury bills and govern the
oOo
conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

tfytott*l"$

•

ys%*^*7

The Treasury announced that it has found
A
+
under the provisions of the Antidumping Act that
sales of haraboard by certain companies in Sweden
are being made and are likely to be made to the
United States at less than fair value and that
American industry is likely to be injured by reason
of the importation of such hardboard. \The law
' provides that under these circumstances a special
duty Is to be levied on importations of hardboard
from Sweden which are sold at less than foreign
market value as defined in the Act.
The Treasury stated that, after investigation,
itfi*^determinedthat a finding of dumping with
respect to hardboard from Finland is not presently
justified*

TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS,
Tuesday, August 31, 1954.

H-569

The Treasury Department announced that
it has found under the provisions of the
Antidumping Act that sales of hardboard by
certain companies in Sweden are being
made and are likely to be made to the
United States at less than fair value and
that American industry is likely to be
injured by reason of the importation of such
hardboard.
The law requires that under these
circumstances a special duty be levied
on importations of hardboard from Sweden
which are sold at less than foreign market
value as defined in the Act.
The Treasury stated that, after investigation, it was determined that a finding of
dumping with respect to hardboard from Finland
is not presently justified.

0O0

H- °

\%SMXSm SORHIBS HSSS?A.iWS,

fNi tifwuNnqr JtafMrtmi *u*nmnMA 2att «v*Hiliig ttict t!» intern f«r t3*S0®f QQ0#O0a
@p tlHiffMdMNita. «T 9I-4^r tmmmry hHU to bo d*t*4 Siipto^ 2 and to m&i&ro
lfgl*# AU. mtir® ottOm* on *t*p*t tt» WN

m% tne Federal Eeeerve Banks oa

fotal applied £©r - •2*3t»7»fc8*Mm
|216S8?6,000 entered on a
basis aad accepted la
miwmmam- mm *ft,pr«*g» r*"r
yBTafflp 21**53
glff1*1* ********/
*H*'*
- 99.7U2 mquivalent rate of discount

To^l^opted

•* ?c, 500,636,000

K&ag© of

o«pllUi» U4it (lmi*U*

High

(90

totaling #735*000}

yi$h Eq.uivalent rata of discount approx. 0.9T3^ per anm

oi' the

bid for at the low price

total
District

!Mlaiolgtii&
Glevalaixl

T^tal

toHftltaill for
I 38,321^000
lf7$l#2tU*»O0O
IMflfeOOO

Atlanta

33*!*56fO0O
t3T*lS»»«J0
*&900»000
ll**(tf7»0Q0
$7*<3M,OOQ
30,771**000

it* Louis
^Lnssapolis

MUm
.•

mux i*V3t*7*t$a6fooo

3^,62^000
OT»$9M0O
39»S69,(m
3M97f(m

SdSS
lSh,T9»Q00
U4,600,000
23>D$r»0Q0
$» f »8,Q0O
26f77l*,OQO

%mm
$i9$o®9m,m

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, August 31, 1954.

H-570

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated September 2 and to mature December 2, 1954, which were offered
on August 26, were opened at the Federal Reserve Banks on
August 30.
The details of this issue are as follows:
Total applied for - $2,347,486,000
Total accepted
- 1,500,636,000 (includes $218,876,000
entered on a noncompetitive
basis and accepted in full
at tne average price shown
below)
Average price
- 99-742 Equiivalent rate of discount approx.
1.023$ per- annum
Range of accepted competitive bids: (Excepting three tenders
totaling $735,000)
High - 99.754 Equivalent rate of discount approx.
0.973$ P e ^ annum
Low
- 99.738 Equivalent rats of discount approx.
I.036$ per annum
(20 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Loui s
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL

Total
Applied for
$
38,124,000
1,751,444,000
54,889,000
3^,397,000
11,194,000
31,456,000
237,158,000
15,900,000
14,057,000
57,038,000
30,774,000
67,055,000
$2,347,486,000
0O0

Total
Accepted •
$

34,624,000
977,594,000
39,889,000
36,397,000
11,194,000
28,856,000
194,758,000
14,600,000
13,957,000
56,938,000
26,774,000
65,055,000

$1,500,636,000

-3-

but shall be exempt free all taxation now or hereafter imposed, on tne prmcxpai

of discount at "which bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold, redeemed or otherwise disposed of, and
such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the

price paid for such bills, Thethcr on ori<*in?.l issue or on subsequent purchase
and the amount actually received either upon sale or redemption at maturity
during the taxable year for which the return is made, as ordinary gain or loss.
Revised
Treasury Department Circular No. Ul8, 3gxg£2*&3$, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their
issue. Copies of the circular nay be obtained from any Federal Reserve Bank
or Branch.

- 2 -

payment of 2 percent of the face amount of Treasury hills applied for, unless

the tenders are accompanied by an express guaranty of payment by an incorporatec
bank or trust company.
Inmediately after the closing hour, tenders mil be opened at the Federal
Reserve Banks and Branches, following which public announcement iri.ll be made
by the Treasury Department of the amount and price range of accepted bids.
Those submitting tenders wiH be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, In whole or in part, and. his action in any such respect
shall be final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder "will be accepted
in full 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 3ank on September 9» 195^ , in cash or

m
other Immediately available funds or in a like face amount of Treasury bills
maturing September 9* 19S& Cash and exchange tenders will receive equal
treatment. Cash adjustments will be made for differences between the par
value of maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or gain from
the sale or other disposition of the bills, shall not have any exemption,
as such, and loss fron the sale or other disposition of Treasury bills shall
not have any special traitrunt, as smch, uneer the Internal Revenue Code, or
laws amendetoiy or supplementary thereto. The bills shall be subject to
estate, inheritance, gift or other excise taxes, whether Federal or State,

A7Q

TREASURY DEPARTMENT
Washington

FOR REuEASE, MORNING NEWSPAPERS,
*jay»August 3!,__195*f

The Treasury Department, by this public notice, invites tenders for
$l,5QO,QQO,000 , or thereabouts, of 91 _-day Treasury bills, for cash and
in exchange for Treasury bills maturing

September 9, 195k
-

gagacr-

, in the amount of

$1,5©0,19Q,0QQ , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated September 9, 1951*- , and'mil mature Beeember 9, 195% , when the face
amount will be payable without interest. They will be issued in bearer form only,
and in denominations of §1,000, $£,000, &10,000, §100,000, §$00,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o'clock p.m., Eastern/flBSnv* time, Friday, September 3, 195^

Tenders will 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 thre
decimals, e. g., 99*92$. Fractions may not be used. It is urged that tenders
be made on the printed forms and .forwarded in the special envelopes whioh will
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will- be received 'without deposit from
incorporated banks and trust conroanies and from responsible and recognized
dealers in investment securities. Tenders from others must bo accompanied by

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, August 31. 1954.

H-571

The Treasury Department, by this public notice, invites tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills, for
cash and In exchange for Treasury bills maturing September 9,1954,
in the amount of $1,500,190,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated September 9, 1954,
and will mature December 9, 1954, when the face amount will be
payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Daylight Saving time,
Friday, September 3, 1954.
Tenders will 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 prioe
offered must be expressed on the basis of 100, with not more than
three decimals, e. g„, 99.925. Fractions may not be used. It is
urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by Federal Reserve Banks or
vBranches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price
range of accepted bids. Those submitting tenders will be advised of
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders
in whole or in part, and his action in any such respect shall be
final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted

- 2competitive bids. Settlement for accepted tenders in accordance
with the bid3 must be made or completed at the Federal Reserve Bank
on September 9, 1954, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing September 9, 1954
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, shall not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills shall not have any special treatment, as such,
under 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. Under Sections 42 aad 117 (a) (r) of the Internal Revenue
Code, a3 amended by Section 115 of the Revenue Act of 1941, the
amount of discount at which bills Issued hereunder are sold shall not
be considered to accrue until such bills shall be sold, redeemed or
otherwise disposed of, and such bills are excluded from consideration
as capital assets. Accordingly, the owner of Treasury bills (other
than life insurance companies) Issued hereunder need include In his
income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase,
and the amount actually 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. 4l8, revised, and this
notice, prescribe the terms of the
Treasury bills and govern the
oOo
conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

Treas.
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Treas.
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U.S. Treasury Dept.
Press

Releases

U.S. Treasury Dept.

AUTHOR

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v.100
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