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jKftSWW DEPARTMENT UBRAM.

JUN 14 1972
TREASURY DEPARTMENT

414
TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Thursday, December 30. 1954.

.
n-o(0

The Treasury Department has determined that
sales of muriate of potash from Spain are not being
made in the United States at less than fair value
within the meaning of the Antidumping Act.

Accordingly,

appraisement of muriate of potash imports from Spain,
withheld temporarily pursuant to a decision announced
November 24, 1954, will now be resumed, and the dumping
case will be closed.

oOo

^*»*rf*"'^

BMEDIATE KEIEASE

^^-^^

/. a

_____—,

I "1

n - {, I J

The Treasury Department has determined that sales muriate
of potash from Spain are not being made, at less than fair value
^£.ta^yUn^&^

)

within the meaning of the Antidumping Act* Appraisement of
*\t^v»y^
JoZ-p-...
muriate of potasn from Spain, sfese#sB£s withheld pursuant to 4decision announced November 24, 1954, "will now be resumed, and
the dumping case will be closed*

,V~W'-

- 2competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on January 6, 1955*
* n cash or other Immediately available funds
or in a like face amount of Treasury bills maturing January 6, 1955.
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, does not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 1954. The bills are subject
to estate, inheritance, gift or other excise taxes, whether Federal
or State, but are exempt from all taxation now or hereafter imposed
on the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States is considered to
be interest. Under Sections 454 (b) and 1221 (5) of the Internal
Revenue Code of 1954 the amount of discount at which bills issued
hereunder are sold Is not considered to accrue until such bills
are 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
conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Eranch.

RELEASE MORNING NEWSPAPERS,
Thursday, December 3QT igyL

H-674

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 January 6, 1955*
in the amount of $1,500,290,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated January 6, 1955*
and will mature April 7, 1955*
when the face amount will be
payable without interest. They will be Issued in bearer form only,
and In denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Standard time,
Monday, January 3, 1955.
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

*_T XlUh
£nnmgQann

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday. December 30, 1954
.
•fffifi

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 January 6, 1955 , in the amount of
ill,
•rarai

$ lt500.2Q0,000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated January 6, 1955 , and will mature April 7, 1955

mmm
amount will be payable without interest.

f wnen

the face

*^^%
They will be issued in bearer form only,

and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,0
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock p.m., Eastern Standard time, Monday, January 3, 1955

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

incorporated banks and trust companies and from responsible and recognized deal
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 Re-

serve 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

or in a like face amount of Treasury bills maturing

January 6, 1955

cash

rfmTr*-MYl

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, does not have any exemption, as such, and
loss from the sale or other disposition of Treasury bills does not have any
special treatment, as such, under the Internal Revenue Code of 1954. The bills
are subject to estate, inheritance, gift or other excise taxes, whether Federal

or State, but are exempt from all taxation now or hereafter imposed on the princi

or interest thereof by any State, or any of the possessions of the United States,

- 3

J Sm*

gfigjtt

or by any local taxing authority. For purposes of taxation the amount of discoun

at which Treasury bills are originally sold by the United States is considered t

be interest. Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of
195h the amount of discount at which bills issued hereunder are sold is not

considered to accrue until such bills are sold, redeemed or otherwise disposed o
and such bills are excluded from consideration as capital assets. Accordingly,

the owner of Treasury bills (other than life insurance companies) issued hereund

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 conditions of their issue. Copies
of the circular may be obtained from any Federal Reserve Bank or Branch9

TREASURY DEPARTMENT

408

WASHINGTON. D . C
RELEASE MORNING NEWSPAPERS,
Tuesday, December 28, 195*1.

H-673

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated December 30, 1954, and to mature March 31, 1955, which were
offered on December 22, were opened at the Federal Reserve Banks on
December 27.
The details of this issue are as follows:
Total applied for - $2,454,361,000
Total accepted
- 1,500,633,000 (includes $212,650,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.703/ Equivalent rate of discount approx.
1.175$ per annum
Range of accepted competitive bids: (Exceoting one tender of
$482,000)
High
•- 99.706 Equivalent rate of discount approx.
1.163$ per annum
Low
- 99.702 Equivalent rate of discount approx.
1.179$ per annum
(50 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
$
45,572,000
1,822,625,000
34,554,000
65,275,000
15,267,000
31,774,000
227,950,000
31,814,000
13,070,000
31,357,000
52,334,000
82,769,000
$2,454,361,000
0O0

Total
Accepted
$ 36:972,000
1,063,484,000
11,734,000
51,025,000
13,177,000
22,270,000
156,105,000
20,215,000
9,945,000
25,222,000
44,034,000
$1,500,633,000
46,450,000

4 07
V,'' !

mmm%

minno NEfcSj*nns,

fvmaday. -member 28. 1954.
fha fremwry Dmpmtmmt antvaivaamd "l&at aTaalttf that tha tester© few Si,&J0,©00,000,
or fbaraa&outa* a* fl~4*y fF##4Pat7 Mil© to b* dahmd Oacaafear 30, 195*1, and to wmtwrm
larch 31, 1955* which wava affara* «a tteaaafear 22* war* epanad 8% Hi® Fadaral Jlaaarva
Bank* ®a B«a»tiar 27.
the dtt«!X» a* tfttl* Imm mm m imllmmt
Total applla* for - ttt&li, 361,000
fatal accepted
* 1*500,633*000 (loci*** #212,650*000 ant**** an
a timammmpeti.t&'wm hmm&B md mmptad l»
fill m% the wmmga
prim abeam hhlm)
$mmm
prim
- 99.703^ a^^sdtaalaat mtm at diaaeaat appmm* 1.1751 per mmvm
mmga at mmmmmitmA aaa^aftittt* bitot (E*aaptiflg mm taadir «f siifi 2,000}
ligt* - 99*706 8qpl**laat vmha of dlmammt approx. 1.163$ per annua
Unr
« 99*70?
*
* n
•
•
1«179* *
(SO paraant «f tht a* cant total

JBMP

at tfea la* prl** «aa accepted)

fedmml Haaarma Total fatal
Biatrlet
M ^ f l f l H , •„•,-,.,
Baaton t l*»S72,000 I 36,972,000
Vav *ork
1,822* 6&*000
ifeilaft&ptaift
34,554,000
Ctartlajaf
65*275,000
Maiwawt
15*267,000
Atlanta
301,77k,0CX>
Chicago
f27*?S0,»0
•St. imtm
31,$l4»ooo
ttliuiaapoll*
13,070,000
Kaasaa C i %
31,357,000
Bellas
52,334,000
ftranciaeo 02,769,'.)OO
46,450,000
total ^2,a5b,36L,<'«0 $1,500,633,000

Ac©«pt#d^
1,063, 4 % , OCX)
11,734,000
51,025,900
13,177*000
22,270,000
156,105,000
20*215,000
9,9b5,OQO
25,222,000
WM>3l*,CJ00

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE
Thursday, December 23, 1954

H-672

Laurence B. Robbins, Assistant Secretary of the
Treasury in charge of liquidation of the Reconstruction
Finance Corporation, today delivered to Secretary of
the Treasury George M. Humphrey the Corporation's check
for $100,000,000.
The check represents proceeds derived from the
liquidation of the lending operations of the Corporation and from the earnings arising from those operations.
Prior to the payment made today, a total of
$155,000,000 had been paid to the Treasury since the
lending activities of the Corporation were terminated
on September 28, 1953. This amount included repayment
of $121,000,000^ which represented the entire remaining balance of funds borrowed from the Treasury.
The cash balance of the Corporation after today's payment is sufficient to meet all Its outstanding liabilities and commitments, both direct and contingent.
Since September 1953, there has been a net
reduction of more than $330,000,000 of RFC loans,
securities and commitments, leaving approximately
$250,000,000 in this category of assets still to be
liquidated. These figures do not include any of the
assets or earnings of the production programs such as
synthetic rubber and tin which were transferred to the
Federal Facilities Corporation
0O0. on June 30, 1954,

•10s

** ~

J2^MS^^7^y^y %i, /9J~it
Laurence B. Robbins, Assistant Secretary of the Treasury in

charge of liquidation of the Reconstruction Finance Corporation, today

^annau^ft<^5&d delivery to t&e Secretary of the Treasury mt the Corporation,s
check for $100,000,000. /Thie check represents proceeds derived from
the liquidation of the lending operations of the Corporation and from the
earnings arising from those operations.
Prior to the payment made today, a total of $155, 000, 000 haa\
been paid to the Treasury since the lending activities of the Corporation
were terminated on September 28, 1953. This amount included repayment
of $121, 000, 000 which represented the entire remaining balance of funds
ft

borrowed from the Treasury. The cash balance of the Corporation after
t&UB payment is sufficient to meet all its outstanding liabilities and
commitments, both direct and contingent.
Since September 1953, there has been a net reduction of more
«

than $330,000,000 of R F C loans, securities and commitments, leaving

approximately $250, 000, 000 in this category of assets still to be liquidate
These figures do not include any of the assets or earnings of the production
programs such as synthetic rubber and tin which were transferred to the
Federal Facilities Corporation on June 30, 1954.

it&

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Monday, December 27, 1954.
1

1 "

1 1

" I

H-671

The Treasury Department today announced changes in the
regulations governing Series S and H United States Savings Bonds
to permit their purchase by "personal trust estates," The change
is effective January 1, 1955*
Formerly, sales of Series E and H Savings Bonds have been
limited to individuals either as owners, co-owners or beneficiaries.
"Personal trust estates" are generally trusts created by Individuals
for the benefit of themselves or other Individuals, and the amended
regulations extend to such trusts the same privilege of purchasing
Series E and H bonds as was given previously only to individual
savers. The annual purchase limit of $20,000 (maturity value) of
each series which applies to individual owners will also apply to
a single trust estate, regardless of the number of beneficiaries.
The Treasury emphasized that the change in the regulations
does not include under its terms pension, annuity, profit sharing
and other similar trusts. Series J and K Savings Bonds are of
course available for all these types of purchasers, with a limit
of $200,000 and interest at about 2-3/4 percent if held to maturity.
Exact definitions as to eligibility are contained in the amendment
to the offering circular on the bonds.
Only the Treasury Department and the Federal Reserve Banks
and Branches will issue Series E and H bonds to the trustees.
Other issuing agents will not issue such bonds to "personal trust
estates." However, banking institutions generally may accept
applications for transmittal to Federal Reserve Banks for the
purchase of the bonds by such trusts.
The Treasury also announced, effective January 1, 1955, the
removal of the restrictions against bank ownership of the outstanding 2-1/2 percent Bonds of June and December 1967-72, amounting
to $1,888,000,000 and $3,820,000,000, respectively. These are the
only two issues of marketable securities sold during World War II
which are not now eligible for bank ownership. The removal of the
restrictions will provide a broader
0O0 market for these securities.

3 *v

RELEASE

mmim

HEWSPAPERS,

londay. December 27* W$k*
the Treasury Department today announced changes in the regulations
governing Series £ and H United States Savings Bonds to permit their par*
chase by "personal trust estates." The change ia effective January 1, 1955*
Formerly, sales of Series £ and H Saving* Bonds have been limited to
individuals either aa owners, co-owners or beneficiaries. "Personal trust
estates" are generally trusts created by individuals tor the benefit of
themselves or other individuals, and the amended regulations extend to such
trusts the same privilege of purchasing Series 1 and H bonds as was given
previously only to individual savors. The animal purchase limit of $20,000
(maturity value) of each aeries which applies to individual owners will also
apply to a single trust estate, regardless of the number at beneficiaries.
the Treasury emphasized that the change in the regulations doea not
include under its terms pension, annuity, profit sharing and other similar
trusts. Series J and I Savings Bonds are of course available for all these
types of purchasers, with a limit of I200,000 and interest at about 2-3/k per~
cent if held to maturity. Exact definitions as to eligibility are* contained
in the amendment to the offering circular on the bonds.
Only the Treasury Department and the Federal Reserve Banks and Branches
will issue Series £ and H bonds to the trustees. Other issuing agents will
not issue such bonds to "personal trust estates." However, banking institutions generally may accept applications for transmittal to Federal Reserve
Banks for the purchase of the bonds by such trusts.
The Treasury also announced, effective January 1, 1955, the removal of

- 2 -

the restrictions against bank ownership of the outstanding 2*1/2 percent
Bonds of June and December 1967*72, amounting to #1,638,000,000 and
$3,820,000,000, respectively.

These are the only two issues of marketable

securities sold during World War II which are not now eligible for bank
ownership. The removal of the restrictions will provide a broader market
for these securities.

- 2competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on December 30, 195^, In cash or other immediately available funds
or in a like face amount of Treasury bills maturing December 30, 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, does not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 195**. The bills are subject
to estate, inheritance, gift or other excise taxes, whether Federal
or State, but are exempt from all taxation now or hereafter imposed
on the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States Is considered to
be Interest. Under Sections k5k (b) and 1221 (5) of the Internal
Revenue Code of 1954 the amount of discount at which bills Issued
hereunder are sold is not considered to accrue until such bills
are 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
K*SS.

Treasury Department Circular No. 4l8, 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.
oOo

RELEASE MORNING NEWSPAPERS,
Wednesday, December 22, 1954.

H-670

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 December 30, 1954,
in the amount of $1,501,873,000, to be Issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated December 30, 1954,
and will mature
March 31, 1955, when the face amount will be
payable without interest. They will be issued in bearer form only,
and In denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Standard time,
Monday December 27, 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., 99.923. 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 ofthe face
amount of Treasury bill3 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

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Wednesday, December 22, 1954

H-67O

The Treasury Department, by this public notice, invites tenders for
11,500.000,000 , or thereabouts, of 91 -day Treasury bills, for cash and

— W —

~m~~

in exchange for Treasury bills maturing
December 30, 1954
, in the amount of
#1,501,873,000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated December 30, 1954

and will mature March 31, 1955 , 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 $1,000,00
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock p.m., Eastern Standard time, Monday, December 27, 1954

sS*J
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

incorporated banks and trust companies and from responsible and recognized deale
in investment securities. Tenders from others must be accompanied by payment of

- 2 -

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

or State, but are exempt from all taxation now or hereafter imposed on the princi

or interest thereof by any State, or any of the possessions of the United States,

- 3 Mfftifr

or by any local taxing authority. For purposes of taxation the amount of discou
at which Treasury bills are originally sold by the United States is considered

be interest. Under Sections k$k (b) and 1221 {$) of the Internal Revenue Code of
1954 the amount of discount at which bills issued hereunder are sold is not
considered to accrue until such bills are sold, redeemed or otherwise disposed
and such bills are excluded from consideration as capital assets. Accordingly,

the owner of Treasury bills (other than life insurance companies) issued hereun

need include in his income tax return only the difference between the price pai
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 conditions of their issue. Copies
of the circular may be obtained from any Federal Reserve Bank or Branch.

TREASURY DEPARTMENT
WASHINGTON. D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, December 21, 1954.

K-669

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts,, of 91-day Treasury bills to be
•dated December 23, 1954, and to mature March 24, 1955, which were
offered on December 16, were opened at the Federal Reserve Banks on
December 20.
The details of this issue are as follows:
Total applied for - $2,384,663,000 ^
Total accepted
- 1,500,425,000 (includes $268,442,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.663/ Equivalent rate of discount approx.
1.333$ per annum
Range of accepted competitive bids:
High - 99.750 Equivalent rate of discount approx.
0.989$ per annum
Low
- 99.661 Equivalent rate of discount approx.
1.341$ per annum
(91 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District

Applied for

Accepted

Boston $ 29,906,000 $ 22,003,000
New York
1,692,334,000
Philadelphia
39,055,000
Cleveland
88,088,000
Richmond
30,839,000
Atlanta
42,013,000
Chicago
216,399,000
St. Louis
31,549,000
Minneapolis
14,892,000
Kansas City
32,033,000
Dallas
39,502,000
San Francisco
128,053,000
TOTAL $2,384,663,000 $1,500,425,000

1,016,160,000
20,055,000
80,338,000
30,606,000
40,055,000
122,347,000
24,287,000
14,892,000
31,333,000
29,502,000
68,842.000

0O0

tUBsday, Deeeraber 21, l?ft.
The BPeaaury Deptarttant anr^unced last evening that the tenders for $1,500,000,000,
or thereabouts, at 91-day Treaaury bills to be dated Bamm-ber 23, 1954, end to mature
mroh i%9 19$$, which were offered on December 16, were opened at the Federal Reserve Banks
on December 20.
The details of this issue are as follows?
Total applied taw - t£tJ8M699000
Total aeeepted
- :i,5OO,k£S,oa0

(ias&stes $268#i&2f000 entered on a
noncompetitive bails and accepted la
full at the average price shown below)
rate ©f diseouat approx. 1.333* par annum

Average prima
- 99*663/ l%mte&mt
Bangs of accepted coupe t&felYe bides

Hig^ * 9°#750 Equivalent rate of discount approx. 0.98^ per annua
I<w
- 99*661
*
"
«
e
»

1.343$ •

(91 percent of the sjsouiit bid for at the low price mm accepted)

Fedsral Heserve
District

Total
Applied for

Total
Accepted

Boston
New York
Philadelphia
Cleveland
Eiotasoad
Atlanta
Chisago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL

14,892,000
32,033fooo
39,502,000
128,0^3,0^00

22,00a1,000
1,016,160^,000
a o , ^ ,000
80,338!,000
30,606!,000
fc0,0% ,000
122,347,,000
24,23?j,000
14,8^2!,000
31,333,,000
29,502j,000
63,342,000

$2,394,663,000

$i,$oo,k25,ooo

29*90&,J0u
1,692,334,000
39,055,000

m9om9QQQ

30, ©9*000
42,013,000
216,399,000

SlfAftOoo

- 2competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on December 23, 1954, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing December 23, 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, does not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 1954. The bills are subject
to estate, inheritance, gift or other excise taxes, whether Federal
or State, but are exempt from all taxation now or hereafter imposed
on the principal or Interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States is considered to
be interest. Under Sections 454 (b) and 1221 (5) of the Internal
Revenue Code of 1954 the amount of discount at which bills issued
hereunder are sold is not considered to accrue until such bills
are 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
conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

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 December 23* 1954,
in the amount of fl, 500, 209,000 to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. Hie bills of this series will be dated December 23, 1954,
and will mature March 2k3 1955, 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 SI,000,000'(maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour,, two o'clock p.m., Eastern Standard time,
Monday, December 20, 1954-.
Tenders will not be received at the
Treasury Department, Washington. Each tender must be for an even
multiple of Si, 000, and In the case of competitive tenders the priee
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 th<
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

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, December 16, 1954
•

ST
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

December 23, 1954

, in the amount of

sr
e

$ 1,500,209j000 » t° b issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated December 23, 1954 , and will mature March 24, 1955 , 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 $1,000,0
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the

closing hour, two o'clock p.m., Eastern Standard time, Monday, December 20, 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

incorporated banks and trust companies and from responsible and recognized deal
in investment securities. Tenders from others must be accompanied by payment of

- 2 -

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, noncompetitive 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 December 23« 1954 , in cash or other immediately available funds
or in a like face amount of Treasury bills maturing December 23, 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

or State, but are exempt from all taxation now or hereafter imposed on the princi

or interest thereof by any State, or any of the possessions of the United States,

- 3 -

or by any local taxing authority. For purposes of taxation the amount of discoun

at which Treasury bills are originally sold by the United States is considered t

be interest. Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of
1954 the amount of discount at which bills issued hereunder are sold is not

considered to accrue until such bills are sold, redeemed or otherwise disposed o
and such bills are excluded from consideration as capital assets. Accordingly,

the owner of Treasury bills (other than life insurance companies) issued hereund

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 conditions of their issue. Copies
of the circular may be obtained from any Federal Reserve Bank or Branch

TREASURY DEPARTMENT
WASHINGTON, D.C. \s

IMMEDIATE RELEASE,
Tuesday, December, 14, 1954.

H-667

The Treasury Department has forwarded to
the Tariff Commission a dumping case involving
imports of muriate of potash from the Federal
Republic of Germany and from France. The
Treasury determined that sales in the
United States are being made at less than fair
value.
Pursuant to the Customs Simplification Act
of 1954, which amends the Antidumping Act of
1921, the Tariff Commission villi determine
whether or not American industry is injured or
likely to be injured.

If the Tariff Commission

makes an affirmative finding, the law requires
a finding of dumping.

0O0

IMMEDIATE RELEASE

«^—~~"'""

i^m^L\m\^9ym\%Vm^^

The Treasury Department announced today that
it had forwarded to the Tariff Commission a dumping
case involving imports of muriate of potash from
the Federal Republic of Germany and from France,
The Treasury less determined that sales in the United
States are being made at less than fair value.
Pursuant to the Customs Simplification Act of
1954,

"which amends the Antidumping Act of 1921, the

Tariff Commission will pressed "bo determine whether

M •*-*/"*

American industry is injured or likely to be injured.
If the Tariff Commission o^tabiishoc Injuiy^a finding
Of Hinnjvinpr^Brm Tne> w*A(* a

(^ jf~

/jm^f

/ U U M A U

TREASURY DEPARTMENT
WASHINGTON, D.C.

FOR IMMEDIATE RELEASE,
Tuesday, December 14, 1954.

H- 666

Treasury Secretary Humphrey will leave by
air Tuesday afternoon, December 14, 1954, to
attend the meeting of the North Atlantic Treaty
Organization Council in Paris starting Friday.
Secretary Humphrey will travel in the aircraft
which is taking Secretary of State Dulles to meet
with Foreign Ministers of France and Britain, in
addition to the NATO meeting.
Secretary Humphrey will be joined in Paris blunder Secretary of the Treasury for Monetary Affairs
W, Randolph Burgess who is traveling to Europe in
the aircraft taking Deputy Defense Secretary Robert
B. Anderson to the NATO meeting.

oOo

FOR IMMEDIATE RELEASE
TUESDAY. DECEMBER 14, 1954

Treasury Secretary Humphrey will leave by air Tuesday
afternoon, December 14, 1954, to attend the meeting of the
North Atlantic Treaty Organization Council in Paris
starting Friday.

\^^U~

# ° ^

Secretary Humphrey will be^accompanicd by Under Secretary
of the Treasury for Monetary Affairs W. Randolph Burgess
Secretaries Humphrey aacUBuxges^ will travel in the
aircraft which is taking Secretary of State Dulles to meet
with Foreign Ministers of France and Britain, in addition
to the NATO meeting.

<TlJ

y
y

yp^

>*v

TREASURY DEPARTMENT

387

WASHINGTON, D.C.

IMMEDIATE RELEASE,
Wednesday, December 15, 1954.

K-66t)

During the month of November 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
$14,238,500.

0O0

TREASURY DEPARTMENT
WASHINGTON, D.C

IMMEDIATE RELEASE,
Mondayj MoFcniJaeg 1 % I95'fI-»

During the month of fT~f nryi~ I9D4,
market transactions in direct and guaranteed
securities of the goverrjsent for- Treasury
investment and other accounts resulted in
net purchases by the Treasury Department of
hi

$/£/,

* £/

^^C*

oOo

December 6, 1954

The following transactions were mads in direct and guaranteed
securities of the Government for Treasury investments and other
a e w m t s during ths month of tUvmmhmr, 1954*
FurcMses |Ut2?5*O00,00
SaXe

* 36*500*00
114,236,500.00

(Sgd) Charles I, Bratman
Chief, Investments temeh
Division of Bsposits & Ijivssttaenfcs

TREASURY DEPARTMENT

384

WASHINGTON, D.C
RELEASE MORNING NEWSPAPERS,
Tuesday, December 14, 1954.

H-664

The Treasury Department announced last evening that the tenders
for cl,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated December 16, 1954, and to mature March 17, 1955, which were
offered on December 9, were opened at the Federal Reserve Banks on
December 13.
The details of this issue are as follows:
Total applied for - $2,2d0,060,000
Total accepted
- 1,500,323,000

(includes $259,534,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.6S5 Equivalent rate of discount approx.
Range of accepted competitive bids: 1.247$ per annum
High

- 99.750 Equivalent rate of discount approx.
0.989$ per annum
Lovr
- 99-680 Equivalent rate of discount approx.
1.266$ per annum
(39 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
TOTiH_Li
San Francisco

Total
Applied for
?
33,327,000
1,580,371,000
37,866,000
44,381,000
24,538,000
46,572,000
180,263,000
27,464,000
20,130,000
57,796,000
54,078,000
$2,200,060,000
91,274,000
0O0

Total
Accepted
33,022,000
954,209,000
32,866,000
44,381,000
24,538,000
48,572,000
122,823,000
27,464,000
20,130,000
55,796,000
52,248,000
$1,500,323,000
84,274,000

RSLSA3E

mmsmma,

Ths Trsasyry Department mmmmmd

last evoalng th&t tiia tan&srs tar |1, $00,000, 000,

or thsrsabouts, of 91«dsy Trsasixry bills to be

December Us, 19S4* and to raature

arch 17, 19$$9 mhlmh - M M * offered on December y,

opawmd at the paderal Reserve Banks

sa Dsosfflber 13.
?hs details of thij>^issue are as follows s
Total agfOlaa lor - ffjio^^iijOOO
(

T^as**fi*t

• 1,500,311,000

Avsrags i>ric@

full at th* atwags pries ahown halm)
" 99.6S5 Eqaivalatit nai@ «? dis@<M8fc apprac* 1.21*7$ par ansa®

EftfljW of

aoui^ti.i.iw M i s t

High

^ ^ ^ f | | ^ ^

^ ^ ^

| j a

- 99»7$0 B^im3aiit »i1» of discount stress. 0#9§9H per
- 99.680
»
» «
»
•
1.266$ «

Low

(39 percent of the

bid for at in® low «?£•» was

Dlstriet
torn lark
Phlladslpi
Clavalaai
Hiofaraond.
Atlanta
Chicago
St. Louis
City

Total
ADclied for

Total
Aces&ted

33,327*00®
X,$SO,371#®90
37,666,000
14,361,000
%S3^ooo
m9$7%90QQ
100,263,000

Zf$m9om

20,130,000
57,796,000
Sk,07S*ooo
,^^,000

San Francisco
TOfAL

}

ftt,20O,O6O,OOO

33t^a*ooo
^4,^9,000
32,066,000
j&,3a,ooo
E^,S3S#000
ka,$72tOOO
122,111,000

Z7
$m*ooo
20,130,000
§5,796,000
$2,22*8,000
*t*fa«8
»1,S00,323,000

TREASURY DEPARTMENT

382

WASHINGTON, D.C.
IMMEDIATE RELEASE,
Thursday, December 9, 1954.

H-663

Secretary Humphrey has directed the Commissioner of Internal
Revenue to investigate alleged abuses under which taxpayers secure
double tax deductions by giving securities away.
The Secretary wrote Internal Revenue Commissioner T. Coleman
Andrews that he is "concerned" about reports of abuses. He asked
Commissioner Andrews to investigate the problem immediately and
"take appropriate steps to correct it." Secretary Humphrey said
that the alleged abuses involved purchase of high premium bonds
to secure a tax deduction for amortization of the bond premium
and then an additional tax deduction for a later gift of the same
bonds to foundations or charitable organizations.
There is no estimate of possible revenue loss, or the extent
ofthe alleged abuse. The text of the Secretary's letter is as
follows:
Dear Mr. Commissioner: December 9, 1954
I am concerned about reports of an abuse under
the tax laws by which an attempt is made to secure a
double tax deduction and make money by giving securities away. This practice is based, I am told, on the
purchase of high premium bonds to secure a tax
deduction for the amortization of the bond premium and
another tax deduction for a subsequent gift of the same
bonds to foundations or charitable organizations.
I do not know the extent of the practice but no such
result was intended or should be possible under the tax
laws. I wish you would look into the problem immediately and take appropriate steps to correct it.
Very truly yours,
/s/ G. M. Humphrey
Secretary of the Treasury
Honorable T. Coleman Andrews
Commissioner of Internal Revenue
Washington, D. C.

0O0

Secretary Humphrey has d treated the Commissioner of
Internal Revenue to Investigate alleged abuses under which
tax payer* secure double tax deductions by giving securities
away*
the Secretary wrote Internal Eevenue 0ei»&lss toner
f# Oolemeii M r s w i that he la "concerned® about reports
of abuses. Ha asked Commissioner Andrews to investigate
the problem immediately axil "take appropriate steps to
correct It9*

Secretary Humphrey said that the alleged

abuses involved purchase of high premium bonds to secure a
tax deduction iljiffmi^ amortization of the bend premium and then
an aidit tonal tax deduction tm

m later gift ef the same

bonds to foundations or ©heritable ergaftlsa&lotis*
there Is no estimate of possible revenue lose, or the
exteni of Sfc^alleged abuse,
letter Is as follows*
*'••-'•. * J

fhe teart of the Secretary's

December 9, I9§4

Dear Mr. Commissioner:
I am concerned about reports of an abuse under
the tax laws by which an attempt is made to secure a
double tax deduction and make money by giving securities away. This practice is based, I am told, on the
purchase of high premium bonds to secure a tax
deduction for the amortization of the bond premium and
another tax deduction lor a subsequent gift of the same
bonds to foundations or charitable organizations.
I do not know the extent of the practice but no such
result was intended or should be possible under the tax
laws. I wish you would look into the problem immediately and take appropriate steps to correct it.
Very truly yours,

Secretary of the Treasury

Honorable T. Coleman Andrews
Commissioner of Internal Revenue
Washington, D. C.

DTS/nr

TREASURY DEPARTMENT

WASHINGTON, D . C
IMMEDIATE RELEASE,
Friday, December 10, 1954.

H-oO^

President Eisenhower today received his Presidential
medal from Treasury Secretary Humphrey. The Secretary
presented the medal to the President at the weekly
cabinet session.
Each member of the cabinet also received one of
the medals, as a personal gift from Secretary Humphrey.
This medal is the latest addition to the historic
series of Presidential Medals. It will go on sale at
the United States Mint at Philadelphia tomorrow.
The medal is bronze, three inches In diameter, and
was made by artists of the United States Mint at
PhiladelDhia. One side has a relief head of President
Eisenhower done by sculptor Gilroy Roberts. The other
side is the figure "Freedom" which stands on the dome
of the United States Capitol. The scene to the right
of the figure represents the eastern half of the
United States, with the farmer plowing the soil and city
buildings visible beyond the hills. To the left are
the pioneering forefathers, blazing the westward trail
in covered wagons, the Rocky Mountains in the background.
The Eisenhower Medal is the 3^th Presidential Medal
in the series which began with George Washington. The
entire series is available at the United States Mint in
Philadelphia.Medals can be obtained by sending $2,50
(which includes shipping charges) per medal to the
United States Mint at Philadelphia.

oOo

FOR IMMEDIATE RELEASE FRIDAY ~ DECEMBER 10, 195^

President Elsenhower today received his
Presidential medal from Treasury Secretary Humphrey*
The Secretary presented the medal to the President
at the weekly cabinet session.
Each member of the cabinet also rece&tred
one of the medals, as 4 personal gift from See;r«teyy .
Humphrey.
Tills medal is the latest addition to the historic
series of Presidential Medals. It will go on sale at
the United States Mint at FMladelphla tomorrow.
The medal 1® bronze, three inches in diameter, and
was made h? artists of the United States Mint at
Philadelphia.

One side has a relief head of President

Elsenhower done by sculptor Sllroy Roberts, The other
side Is the figure "freedom*1 which stands on the dome of
the tfhlted States Capitol * fhe seene id the rl^bt of the
figure represents the eastern half of the llalted States,
with the farmer plowing the soil and city buildings
visible beyond the hills. To the left are the pioneering
forefathers, biasing the westward trail in covered wagons,
the Rocky Mountains In the background.

« 2 -

The Elsenhower Medal Is the 34th Presidential
Medal In the series which began with George Washington.
©is entire series is available at the United states
Mint In Philadelphia. They can he obtained by
sending $2.50 (which includes shipping charges) per
medal to the United States Mint at Philadelphia.

37b

-2-

December 3, 195k
Dear Mr. Secretary:
In line with our conversations, now that the
December refunding has been successfully completed, I
am formally submitting my resignation as Assistant to
the Secretary, to be effective December 8, 195^•
It has been a real pleasure, as well as a rich and
rewarding experience to serve on your Treasury team. I
appreciate so much the confidence and trust you placed
in me,
As you know, I believe strongly in the aims and
objectives you have in handling the Government's
finances. In private life, I shall continue to work for
sound, honest money, which is so important to our way of
life. If I can be of service to you personally or in your
official capacity, do not hesitate to call.
May the Lord continue to bless you with good health
to perform your important assignment.
Kind personal regards, always.
Sincerely,

/ s / David M. Kennedy
David M. Kennedy

Honorable George M. Humphrey
Secretary of the Treasury
Washington 25, D. C.

oOo

TREASURY DEPARTMENT

375

WASHINGTON. D.C.

IMMEDIATE RELEASE,
Wednesday, December 8, -954.

H-651

The Treasury Department today made public the following
exchange of letters by Assistant to the Secretary David M. Kennedy
of Chicago and Secretary George M. Humphrey, pertaining to the
resignation of Mr. Kennedy effective December 8:
December 6, 1954
Dear Dave:
Sianks for your nice letter of the 3rd, tendering
your formal resignation to be effective December 8th.
I can't tell you what a tremendous help you have
been to us here. You "nave helped us through a formative
period in a great many ways and we are deeply indebted
to you for It.
You are going on to do real things in the banking
world. You have the capacity, the knowledge, and the
personality to do It. Our every good wish goes with you
and Just keep In mind that If ever at any time in^the
future there Is anything any of us can do to be of any
help to you, just whistle and we will be there to help
repay you for all that 3~ou have done for us.
very best to you
Sincerely,

/ s / George
Mr. David M. Kennedy
Assistant to the Secretary
U. S. Treasury Department
Washington, D. C.

•6

y
Tfce Treasury Department today made public the following exchange of
letters by Assistant to the Secretary David M. Kennedy of Ghicago and
Secretary George M. Humphrey, pertaining to the resignation of Mr. Kennedy
effective December 8:
December 6, 195k
Dear Dare:
Thanks for your nice letter of the 3rd, tendering your formal
resignation to be effective December 8th*
I can't tell you what a tremendous help yon have been to us
here. You have helped us through a formative period in a great
many ways and we are deeply indebted to yon for it.
You are going on to do real things in the banking world. You
have the capacity, the knowledge, and the personality to do it.
Our every good wish goes with you and just keep in mind that if
ever at any time in the future there is anything any of us can do
to be of any help to you, just whistle and we will be there to
help repay you for all that you have done for us.
Very best to you.

Sincerely,

/s/ George
Mr. David M. Kennedy
Assistant to the Secretary
U. S. Treasury Department
Washington., D. C.

- 2 -

December 3, 19$k

Dear Mr. Secretary:
In line with our conversations, now that the December refunding has been successfully completed, I am formally submitting
my resignation as Assistant to the Secretary, to be effective
December 8, 19$k•
It has been a real pleasure, as well as a rich and rewarding
experience to serve on your Treasury team. I appreciate so much
the confidence and trust you placed in me.
As you know, I believe strongly in the aims and objectives
you have in handling the Government's finances. In private life,
I shall continue to work for sound, honest money, which is so
important to our way of life. If I can be of service to you
personally or in your official capacity, do not hesitate to call.
May the Lord continue to bless you with good health to
perform your important assignment.
Kind personal regards, always.
Sincerely,

/s/

David M. Kennedy

Honorable George M. Humphrey
Secretary of the Treasury
Washington 2$9 D. C.

TREASURY DEPARTMENT
Washington

372
IMMEDIATE RELEASE,
Thursday, December 9, 1954.
H-660
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 November 27, 1954, inclusive, as follows:

Products of the
Philippines

Buttons

!Established Quota
Quantity

850,000

Unit
of
: Quantity

Gross

Imports as of
November 27, 19$k

648,280
2,874,U76

Cigars 200,000,000

Number

Coconut Oil 1*48,000,000

Pound

125,346,386

Cordage 6,000,000

Pound

2,329,583

Rice 1,040,000

Pound

(Refined
Sugars
(Unrefined
Tobacco 6,500,000

9,386,760
1,904,000,000

Pound

1,854,100,061
Pound

1,239,727

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Thursday, December 9. 1954.
H-660

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 November 27, 1954, inclusive, as follows:

Products of the
Philippines

Buttons

\Established Quota
Quantity

850,000

Unit
of
Quantity

Gross

Imports as of
November 27, 1954

648,280
2,874,476

Cigars • 200,000,000

Number

Coconut Oil • • 448,000,000

Pound

125,346,386

Cordage 6,000,000

Pound

2,329,583

Rice 1,040,000

Pound

(Refined
Sugars
(Unrefined
Tobacco 6,500,000

9,386,760
1,904,000,000

Pound

1,854,100,061
Pound

1,239,727

- 2 -

Commodity

Period and Quantity

Peanuts, whether shelled, not
shelled, blanched, salted,
prepared, or preserved (including roasted peanuts, but
not including peanut butter.<
Peanut Oil

•

: Unit
:
: of
: Imports as of
:Quantity: Nov. 27. 1954

12 months from
July 1, 1954

1,709,000 Pound

12 months from
July 1, 1954

80,000,000 Pound

940,785

27,225,000 Bushel
275,000 Bushel

5,510,376

39,312,000 Bushel
688,000 Bushel

4,072,137
57,504

Quota Filled

Barley, hulled, unhulled, rolled,
and ground, and barley malt... 12 months from
Oct. 1, 1954
Canada
Other Countries
*Oats, hulled and unhulled, and
unhulled ground

12 months from
Oct. 1, 1954
Canada
Other Countries

Rye, rye flour, and rye meal ..

5,635

12 months from
186,000,000 Pound
July 1, 1954

* Imports through December 7, 1954»

Quota Filled

TREASURY DEPARTMENT
Washington

370

IMMEDIATE RELEASE,
Thursday, December 9, 1954.

H-659

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 November 27, 1954, inclusive, as follows:

Commodity

: Period and Quantity
:

HHhole milk, fresh or sour Calendar Tear
Cream Calendar Year
Butter Nov. 1, 1954-

; Unit
:
: of
: Imports as <
:Quantity: Nov. 27. m

3,000,000 Gallon

1*6,273

1,500,000 Gallon

793

50,000,000 Pound

43,766

33,950,386 Pound

Quota Filled

Mar. 31, 1955
Fish, fresh or frozen, filleted,
etc., cod, haddock, hake, pollock, cusk, and rosefish........ Calendar Year
V/hite or Irish potatoes:
Certified seed
Other

12 months from
Sept. 15, 1954

150,000,000 Pound
329,100,000 Pound

3,934,600
1,542,093

Cattle, less than 200 lbs. each.. 12 months from200,000 Head
April 1, 1954

4,150

Cattle, 700 lbs. or more each.... Oct. 1, 1954(other than dairy cows)
Dec. 31, 1954

2,510

120,000 Head

Walnuts ..**.... • • Calendar Year

5,000,000 Pound

Quota Filled

Almonds, shelled, blanched,
roasted, or otherwise prepared
12 months from
or preserved ••••••••••••••••••• Oct. 1, 1954

5,000,000 Pound

256,200

Filberts, shelled (whether or not
blanched) ••••
12 months from
Oct. 1, 1954

6,000,000 Pound

858,219

Alsike clover seed •. •. • 12 months from
July 1, 1954

1,500,000 Pound

Quota Fill!

(Continued)

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Thursday, December 9. 1954.

H-659

Commodity

Period and Quantity

: Unit
:
: of
: Imports as of
:Quantity: Nov. 27* 1954

Whole milk, fresh or sour

Calendar Year

3,000,000 Gallon

Cream •••••••••••••••

Calendar Year

1,500,000 Gallon

793

Butter •

Nov. 1, 1954Mar. 31, 1955

50,000,000 Pound

43,766

Fish, fresh or frozen, filleted,
etc., cod, haddock, hake, pollock, cusk, and rosefish.......

Calendar Year

33,950,386 Pound

Quota Filled

White or Irish potatoes:
Certified seed
Other
...

12 months from
Sept. 15, 1954

Cattle, less than 200 lbs. each.. 12 months from
iipril 1, 1954
Cattle, 700 lbs. or more each.... Oct. 1, 1954(other than dairy cows)
Dec. 31, 1954

46,273

150,000,000 Pound
329,100,000 Pound

3,934,600
1,542,093

200,000 Head

4,150

120,000 Head

2,510

Walnuts

Calendar Year

5,000,000 Pound

Quota Filled

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

12 months from
Oct. 1, 1954

5,000,000 Pound

256,200

Filberts, shelled (whether or not
blanched) •••••••••••
12 months from
Oct. 1, 1954

6,000,000 Pound

858,219

1,500,000 Pound

Quota Filled

Alslke clover seed

12 months from
July 1, 1954

(Continued)

Commodity

Period and Quantity

Peanuts, whether shelled, not
shelled, blanched, salted,
prepared, or preserved (including roasted peanuts, but
12 months from
not including peanut butter.. July 1, 1954
Peanut Oil ••.•.••••••••••••••• 12 months from
July 1, 1954

: Unit
:
: of
: Imports as of
:Quantity: Nov. 27. 1954

1,709,000 Pound

Quota Filled

80,000,000 Pound

940,785

27,225,000 Bushel
275,000 Bushel

5,510,376
5,635

39,312,000 Bushel
688,000 Bushel

4,072,137
57,504

Barley, hulled, unhulled, rolled,
and ground, and barley malt... 12 months from
Oct. 1, 1954
Canada
Other Countries
ftOats, hulled and unhulled, and
unhulled ground
•
12 months from
Oct. 1, 1954
Canada
Other Countries

Rye, rye flour, and rye meal ... 12 months from
186,000,000 Pound
July 1, 1954

* Imports through December 7, 1954*

Quota Filled

TREASURY DEPARTMENT
Washington

367

IMMEDIATE RELEASE,
Thursday, December 9, 1954.
H-658
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 follows?

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

Wheat
Country
of
Origin

Established :
Imports
Quota
:J.yyy 29, 1954, to

: Established
:
Quota

: Dec. 7, 1954
(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
Yugoslavia
Norway
Canary Islands
Rumania
Guatemala
Brazil
Union of Soviet
Socialist Republics
Belgium

(Bushels)

(Pounds)

795,000

3,815,000
214,000
13 .,000
13,000
8,000
755000
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

100
100
100

100
2,000
100
1,000
100
-

1,000
100
100
100
100

Imports

May 29, 1954,
to
.Dec..2JJS,2£li
(Pounds)

3,815,000

70
5*000

2,000

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Thursday, December 9,

195k.

H-658

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 follows?

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

Wheat
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

Established :
Imports
Quota
:Kay 29, 1954, to
. Dec. 7> 1954
(Bushels)
(Bushels)
795,000

795,000

•

100
-

100
100
—
—

100
2,000

100
-

1,000
-

100
—
—

•

«..

1,000

100
100
100
100

Established
Quota
(Pounds)
,815,000
24,000
13,000
13,000
8,000
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

Imports
May 29, 1954s-

toJec
4_JxJL2£4
(Pounds)
3,315,000

70
5,000

2,000

-2COTTON 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 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 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.

:
Total Imports
s Established %
Imports
: Sept. 20, 1954, to %
33-1/3% of : Sept. 20, 1954
±J2ejuJ*.JL22l
» Total .Quota : to Dect 7, 1954,
172,488
30,202

1,441,152

172,488

75,807
43,979
22,747
14,796
12,853

25,443
6,621

mJLQM

6.627

253,296

1,599,886

179,115

CO
CO

TREASURY DEPARTMENT
Washington

en
H-657

IMMEDIATE RELEASE,
Thursday, December 9, 1954.
qU

Preliminary data on imports for consumption of cotton and cotton ^
^
^
^
^
established by,the President's Proclamation of September 5, 1939, as amended

°taS

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 D^.embsr 7, 1V^:-, inclusive
Country of Origin.
Egypt and the AngloEgyptian Sudan . . «
Peru

••••*•••«<

British India . . . .
China . . . . . . . .
Mexico . . . * » • •
Brazil . .
Union of Soviet
Socialist Republics
•
0 0
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

Imports

Country of Origin

Honduras . . . . . •
4,127
Paraguay . . . . . . .
5,742
Colombia
20,355
Iraq
British East Africa . .
406,640
Netherlands E. Indies.
613.723
Barbados . . . . . . .
l/Other 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.
g:±y2y iJ2fIqJLmLr„r_nuffht of lesg than 3/4"
Imports Sept. 20, 19 54. to ;:ove:nber 27, 1954

Cotton 1-1/8" or more, but less than l-ll/l6"
Imports Feb. 1. 19 34, to December 7, 1954

Established Quota (Global). Imports

Established Quota (Global) Imports

70,000,000

1,019,023

45,656,420 36,687,656

Imports

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Thursday, December 9, 1954.

H-657

Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by th« Pre-sident'^ 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, 19 547~to December 7, 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

Imports
4,127
5,742
20,355
406,640
618,723

Country of Origin
Honduras ....
Paraguay . . . a . . •
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

l/ 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, 19 54, to November 27, 1954

Cotton 1-1/8" or more, but less than 1-11/16"
Imports Feb. la 19 54„. to December 7, 1954

Established Quota (Global) Imports

70,000,000 1,019,023

45,656,420 36,687,656

«£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 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 countriesi United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy%
Established
TOTAL QUOTA

Country of Origin

United Kingdom
Canada . • o «
France . a o e
British India 0
Netherlands .
Switzerland . ©
Belgium . . . 0
O
•
Japan .

. *
e «
o

o
0

o
.

e
.

ullina ' a o o o . 0 .

Egypt 0 0 0 0
Cuba O 0 . 0
Germany
Italy o o e o

Total Imports
Sept. 20, 1954, to

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

172,488
30,202

5,482,509

253,296

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

Established
33-1/3$ of
Total Quota
1,441,152

Imports
Sept. 20, 1954
to Dec. 7. 1954
172,488

75,807
43,979
22,747
14,796
12,853

6.62:

25,443
,088

6,627

1,599,886

179,115

- 2competitive bids. Settlement for accepted tenders In accordance
with the bids must be made or completed at the Federal Reserve Bank
on December 16, 1954, in cash or other immediately available funds
or In a like face amount of Treasury bills maturing December 16, 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, does not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 1954. The bills are subject
to estate, inheritance, gift or other excise taxes, whether Federal
or State, but are exempt from all taxation now or hereafter imposed
on the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States is considered to
be Interest. Under Sections 454 (b) and 1221 (5) of the Internal
Revenue Code of 1954 the amount of discount at which bills issued
hereunder are sold is not considered to accrue until such bills
are 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
conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

RELEASE MORNING- NEV/S PAPERS,
Thursday, December 9, 1954.

K-656

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 December 16, 1954,
in the amount of $1,500,243,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated December 16, 1954,
and will mature March ±J. ±955, when the face amount will be
payable without interest. They will be Issued In bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Standard time,
Monday, December 13, 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 ofthe 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

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, December 9. 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 December 16, 1954 , in the amount of
|l,500,243,OOQ , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated December 16, 1954

and will mature March 17, 1955 , when the face

•QnBoB

BmDB

v^/

———

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 $1,000,00
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o*clock p.m., Eastern Standard time, Monday, December 13, 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

incorporated banks and trust companies and from responsible and recognized dealer
in investment securities. Tenders from others must be accompanied by payment of

- 2 -

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

cash

or other immediately available funds

or in a like face amount of Treasury bills maturing December 16, 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

or State, but are exempt from all taxation now or hereafter imposed on the princi

or interest thereof by any State, or any of the possessions of the United States,

- 3 ft&tttfc

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 is considered to
be interest. Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of
195u the amount of discount at which bills issued hereunder are sold is not
considered to accrue until such bills are 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 conditions of their issue. Copies
of the circular may be obtained from any Federal Reserve Bank or Branch.

S T A T U T O R Y D E B T LIMITATION
AS OF.IftYe.™]?er..30.fc...1954

0 r 3 5 6
...
^ocember^^jjjjgj

Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations rssued under authority
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 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 Act of August 28, 1954, (P.L. 686-83rd Congress) provides that during the
period beginning on August 28, 1954, and ending June 30, 1955, the above limitation ($275,000,000,000) shall be temporarily
increased by $6,000,000,000.
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 8 1 , 0 0 0 , 0 0 0 000
OutstandingObligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills $19 , 50? ,437, 000
Certificates of indebtedness................
Treasury notes
BondsTreasury
Savings (current redemp. value)
Depositary......
Investment series
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

1 8 f 184 f 1^2 , 000
40,899.634,000 $ ?8 , 591,263 ,000
8 4 , 179, 425 , ^ 0
58,186 , 242, 774
424, 903 1 500
12,693,200,000 155 M 3 , 771, 724
2 8 , 8 l 4 , 66*4-, 0 0 0
13.536.656.400

42,351,320,400
276 , 426 ,355,124
294,671 »250

4 7 , 704, 562
1,182,681
1.553,000,000

1,601,887,243
278,322,913,617

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A
33 » ^ 5 , 0 3 6
Matured, interest-ceased..,
975,600
Grand total outstanding ,
,
Balance face amount of obligations issuable under above authority,,,,,,

34,420,636
278,357,334»253
2,642, 665, 74?

;

Reconcilement with Statement of the Public Debt ...M$1$$1??J...39.A..J$5&
(Data)

(Daily Statement of the United States Treasury,

?°J.,S3^f.L.39.A...i3S!i.

)

foate)

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

78,853»086,820
341420,630
278,887B507,456
530,173,203

278,357,33&,253
H-655

STATUTORY DEBT LIMITATION
1
Ac OF Uovem'ber#.30.,.i.195 *'
AS OF

December...9>,
of obligations issued
under authority 1.954

Section 21 of Second Liberty Bond Act, as amended, provides that the face amount
of that Act, and the face amount of obligations guaranteed as to principal and interest by the United States (except such guars
anteed obligations as may be held b ' "
"' ^~ "'"
"-1.-II -«. —~--<* .« »»~ . . « » M ^ *T7S 000 000 noo
(Act of June 26, 1946; U.S.C.. title
demotion value of any obligation iss._«.„
„
. .
.
.
shall be considered as its face amount." The Act of August 28, 1954, (P.L- 686-83rd Congress) provides that during the
period beginning on August 28, 1954, and ending June 30, 1955, the above limitation ($275,000,000,000) shall be temporarily
increased by $6,000,000,000.
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
$281,000,000,000
OutstandingObligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills < 19, 507 ,^37,000
Certificates of indebtedness
Treasury notes
BondsTreasury
' Savings (current redemp. value)
Depositary.
Investment series
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:
Internafl Monetary Fund series
Total

18,184,192,000
40.899,634,000

$ 78,591,263,000

84,179,425,^0
58,186,242, 774
424, 903,500
12,693,200,000 155 M3,
28, 8l4 , 664 ,000
13.536.656.400

771, 724

42,351,320,400
276,426,355,124
294,671,250

4 7 , 704, 562
1,182,681
1,553,000,000

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A
33,^5,036
Matured, interest-ceased
975.600
Grand total outstanding
Balance face amount of obligations issuable under above authority

1,601,887,243
278,322,913,617

34,420,636
278,357,334,253
2,642, 665 > 7 4 7

;

Reconcilement with Statement of the Public Debt.. J.9Z$$??J...3Q.A...l$&.
(Date)
(Daily Statement of the United States Treasury,
.?O.l®B?.eZ.^0.,...1.9^|;
(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

78»^53,086,820
jtrtl*d\) ,036
27o,Oo7,507»456
5 3 0 > 1 7 3 ,203

278,357,33^,253
H-655

Comparison of principal items of assets and liabilities of national banks - Continued
(In thousands of dollars)
jIncrease or decrease :Increase or decrease
Oct. 7»
Sept. 30, tsince June 30, 195^ ; since Sept. 30. 1953 *
June 30,
1954
195*+
1953
Percent
iPercent • Amount
Amount
LIABILITIES
Deposits of individuals, partnership 3, and corporations!
1.353.366
1.359,986
53.78^,450
(A 52
53,791.070
2.53
-U 6IQ8.G0L » M « * M I * M »*••••••••« 5 5 , 1 ^ 3 6
1,870,34s
22,548,572
440,807
<i3.29
23,978,113
1.84
24,418,920
Deposits of U. S. Government..,,,
3.859.916
3,614,035
515.039
760,920
13.3^
21.05
U.37^955
l
Postal savings deposits..,.,...,.
l3,
i-36
13.070
-390
-2.4
-2.90
-.18
13,046
Deposits of States and political
258,032
6,222,445
-582,9^8
il.15
-8.25
subdivisions................... 6,480,47/ 7,063,425
g,88l
o4o
10,127,696
1,246,656
375.180
9.752,516
l4.o4
(
3-85
Deposits of banks.
Other deposits (certified and
-8.24
1.48
19,216
-118,623
1.301.283
1,320,499 1,439,122
cashiers'
checks,
etc.)
,.
99.644,731
96,617,762
2.3T
5,26272oT
Total deposits.....
101,880,029
2,235,298
5."5T
Bills payable, rediscounts, and
other liabilities for
k&},231
.51.68
204,727
712.07
28,751
-249,753
borrowed money
233.^78
yyyy^
i>gQ2..JlL.
198 J 3 1
"168r379
OtherTotal
liabilities
liabilities, excluding 1,733,972
101,208,715
99.003.3^
2,638,764
2.61
4,81)4,155
capital accounts
103,847,479
4.89
CAPITAL ACCOUNTS
Capital stock;
5,kkk
-191
-842
k,133
-3-98
-15.k7
Preferred,
4,602
2,268,439
121,445
1^66,285^
1.00
Common.
2,389,884
iilZLOZg
2*mm*2l
120,603
5.30
ZBM^K. -^2!
JMO \i&.i, .. . t. .........
.........
C ; J y *T f H'O 0
3.690,908
7J4
3^25,699
265,209
Surplus....,.....
3^5.330
1.25
.....
^5,578
1,5^.254
ii.o4
Undivided profits
1,387,126
153,128
i,4o4,866
9.64
135,388
Reserves......... .....
286,685
6.52
269,138
17.5^5
283,626
1.08
31051
Total surplus, profits, and
5>5i7fg!i5
reserves.,.
«....»
7,912,331
Total capital accounts
Total liabilities and
capital accounts.......... 111,759,810
Percent
EATIOS:
U . S. Gov't securities to total
assets......................
35*71
L o a n s & discounts to total assets.
33*51
Capital accounts to total deposits. 7.77

. 5>miggg,_^ogiiJ2g3.
iiii
7,704,900

7,355^46

184,023

^8J5^.,6l5_.106i35itl30^-. 2,846,195
Percent
Percent
32.93
34.69
7.73

32.20
34.83
7*61

3.T5

^25*882.

207,U31

N0 r £B:

8.5S

ML..
2.61

5.4oo.62Q

5.08

Minus sign denotes d e c r e a s e .

Statement showing comparison of principal items of assets and liabilities of active national
banks as of October 7, 1954, June 30, 1954, and September 30, 1953

.. , . (In thousands of dollars)
Oct. 7,
195^
Number of banks.
9
ASSETS
Commercial and industrial loans.,..
Loans on real estate. e » 4 9 « a * 9 » c » *
All other loans, including
overdraft s.............. • 0 • 0 a 9 s
Total gross loans.........
Less valuation reserves..
Net loans..............
U. S. Government securities:
Direct obligations,... ea^aaaeaaae
Obligations fully guaranteed,....
Total U. S. securities...
Obligations of States and
political subdivisions
Other bonds, notes and debentures
.,
Corporate stocks, including
stocks of Fed. Reserve banks..,..
Total securities..
Total loans and securities....
Currency and coin..................
Reserve with Fed. Reserve banks....
Balances with other banks..........
Total cash, balances with
other banks, including reserve balances and cash items
in process of collection.,..
|0ther assets....,.,.
9......I,
Total assets
> » » « » • » * » »

June 50,
1954

jIncrease or decrease
;since June 50, 195*+
;
Amount
:Percent

Increase or decreS^s'e
since Sept. 50, 1953
Amount
:Percent

4,827

47842

Sept. 30,
1953
4,871

15.868,226
9,1+65,267

15,868,307
9,172,416

16,612,176
8,638,056

-81
292,851

12,695,779
38,029,272
583,260
37,446,012

13,317,321
38,358,0$!
575.658
37,782,386

12,342,510
37.592,742
543,1405
37,049,337

-621,51+2
•328,772
7,602
-336.37^"

39,910,958
3,836
39,91^.79^

35,835.931
26,424
35.862,355

35,287,324
287,324
25,429
i.fc
35.312,753

1+,075,027
-22,588
1
+,Q527[i39"

7.339,866

6.95^,581

6,346,681

385,285

5-5}+

993.185

15.65

1,925,840

1,905,204

2,035,365

20,636

1.08

-109,525

-5-38

215,636
^97396,136
liuik2tlW
1.323,599
12,353,83^
9,699,058

-44

-15

-7^3.950
827,211

-4.48
9.58

1.32
-.39

353.26_9_
~T36T530
39,855
396,675

2.86
1.16"
7»33
1.07

H.37
-85,48
11,30

4,623,634
-21,593
4,602,041

3.19
-I+.67

13.10
-84.91
13.03

210,936
201,809
^,933.Q76~ 43,896,608^
82,715,^2" "8079^+579^5
1,385,790
1,335.691
12,WO,242
12,570,050
10,913,876
10,074,427

!+,700
4,463,060
"57126,686
-62,191
-46,408
-1,214,818

2,23
9.93
*+.99
-4.49
-.37
-11.13

13.827
5,^99,528
5,896,203
-62,092
-216,216
-375.369

6.S5
12.53
7.28
-4.48
-1.72
-3-73

-1,323,1+17
""
42,926"
2,846,195

-5.36
2.87
2»6l

-653,677
158,094
5,400,620

-2.72
11.43
5.0S

23,376,U91
1,541,171

24,699,908
' 1,498,245

24,030,168
1,383,077

111,759,810

108,913.615

106,359,190

- 2-

354

to $12,700,000,000, a decrease of nearly 5 percent since June, but were up
3 percent in the year. The percentage of loans and discounts to total assets
on October 7, 1954 was 33.51 in comparison with 3U.69 in June and 3I+.S3 in
September 1953•
Investments of the banks in United States Government obligations on
October 7, 1954 aggregated $39,900,000,000 (including $4,000,000 guaranteed
obligations), an increase of $4,000,000,000 since June. These investments
were 36 percent of total assets. Other bonds, stocks and securities of
$9,500,000,000, which included obligations of States and political subdivisions
of $7,300,000,000, were $400,000,000 more than in June, and $900,000,000 more
than held in September last year. Total securities held amounting to
$49,400,000,000 were $4,500,000,000 more than the June figure.
Cash of $1,300,000,000, reserve with Federal Reserve banks of $12,400,000,000,
and balances with other banks (including cash items in process of collection)

of $9,700,000,000, a total of $23,400,000,000, showed a decrease of $1,300,000,0
since June.
The capital stock of the banks on October 7, 1954 was $2,1+00,000,000, including nearly $5,000,000 of preferred stock. Surplus was $3,700,000,000, undivided profits $1,500,000,000 and capital reserves $300,000,000, or a total of
$5,500,000,000. Total capital accounts of $7,900,000,000, which were 7.77 percent of total deposits, were $200,000,000 more than in June when they were
J.73 percent of total deposits.

TREASURY DEPARTMENT
Comptroller of the Currency
Washington
RELEASE MORNING NEWSPAPERS
Thursday, December 9, 1954

H-654

The total assets of national banks on October 7, 1954 amounted to
nearly $111,800,000,000, it was announced today by Comptroller of the
Currency Ray M. Gidney. The returns covered the 4,827 active national banks
in the United States and possessions. The assets were $2,800,000,000 more
than the amount reported by the 4,842 active banks on June 30, 1954, the date
of the previous call, and more than $5,400,000,000 over the aggregate reported by the 4,871 active banks as of September 30, 1953.
The deposits of the banks on October 7 were $101,900,000,000, an increase of $2,200,000,000 since June, and an increase of $5,300,000,000 in the
year. Included in the recent deposit figures were demand deposits of individuals, partnerships, and corporations of $55,100,000,000, which increased
$1,400,000,000, and time deposits of individuals, partnerships, and corporations of $24,400,000,000, which increased $400,000,000. Deposits of the
United States Government of $4,400,000,000 increased $800,000,000 since June;
deposits of States and political subdivisions of $6,500,000,000 showed a decrease of $600,000,000, and deposits of banks amounted to $10,100,000,000,
an increase of $1+00,000,000. Postal savings were $13,000,000 and certified
and cashiers' checks, etc., were $1,300,000,000.
Net loans and discounts on October 7, 195^ were $37,1+00,000,000, a decrease of $300,000,000 since June, but an increase of $400,000,000, or 1 percent, above the September figure last year. Commercial and industrial loans
were $15,900,000,000, about the same as in June. Loans on real estate of
$9,500,000,000 were up 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., amounted

TREASURY DEPARTMENT
Comptroller of the Currency
Washington
RELEASE MORNING NEWSPAPERS
Thursday. December 9, 1954

H-654

The total assets of national banks on October 7, 195** amounted to
nearly $111,800,000,000, it was announced today by Comptroller of the
Currency Ray M. Gidney. The returns covered the 4,827 active national banks
in the United States and possessions* The assets were $2,800,000,000 more

than the amount reported by the 4,842 active banks on June 30, 195*+» the date
of the previous call, and more than $5,1+00,000,000 over the aggregate reported by the 4,871 active banks as of September 30. 1953*
The deposits of the banks on October 7 were $101,900,000,000, an increase of $2,200,000,000 since June, and an increase of $5,300,000,000 in the
year. Included in the recent deposit figures were demand deposits of individuals, partnerships, and corporations of $55*100,000,000, which increased
$1,400,000,000, and time deposits of individuals, partnerships, and corporations of $24,400,000,000, which increased $400,000,000. Deposits of the
United States Government of $4,400,000,000 increased $800,000,000 since June;
deposits of States and political subdivisions of $6,500,000,000 shoved a decrease of $600,000,000, and deposits of banks amounted to $10,100,000,000,
an increase of $400,000,000. Postal savings were $13,000,000 and certified
and cashiers' checks, etc., were $1,300,000,000.
Net loans and discounts on October 7, 1954 were $37,400,000,000, a decrease of $300,000,000 since June, but an increase of $400,000,000, or 1 percent, above the September figure last year. Commercial and industrial loans
were $15,900,000,000, about the same as in June. Loans on real estate of
$9,500,000,000 were up 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., amounted

- 2 -

to $12,700,000,000, a decrease of nearly 5 percent since June, but were up
3 percent in the year. The percentage of loans and discounts to total assets
on October 7, 1954 was 33.51 in comparison with 34.69 in June and 34.S3 in
September 1953*
Investments of the banks in United States Government obligations on
October 7, 1954 aggregated $39,900,000,000 (including $4,000,000 guaranteed
obligations), an increase of $4,000,000,000 since June* These investments
were 36 percent of total assets. Other bonds, stocks and securities of
$9,500,000,000, which included obligations of States and political subdivisions
of $7,300,000,000, were $400,000,000 more than in June, and $900,000,000 more
than held in September last year. Total securities held amounting to
$49,400,000,000 were $4,500,000,000 more than the June figure.
Cash of $1,300,000,000, reserve with Federal Reserve banks of $12,400,000,000,
and balances with other banks (including cash items in process of collection)

of $9,700,000,000, a total of $23,400,000,000, showed a decrease of $1,300,000,00
since June.
The capital stock of the banks on October 7, 1954 was $2,400,000,000, including nearly $5,000,000 of preferred stock. Surplus was $3,700,000,000, undivided profits $1,500,000,000 and capital reserves $300,000,000, or a total of
$5t500,000,000. Total capital accounts of $7,900,000,000, which were 7.77 percent of total deposits, were $200,000,000 more than in June when they were
7.73 percent of total deposits.

Statement showing comparison of principal items of assets and liabilities of active national
banks as of October 7, 1951*. June 30, 1954, and September 30, I953
(In thousands of dollars)

Number of banks
ASSETS
Commercial and industrial loans...,
Loans on real estate..........
All other loans, including
overdraf ts
Total gross loans.....
Less valuation reserves
Net loans
U. 5. Government securities:
Direct obligations
Obligations fully guaranteed
Total U. S. securities...
Obligations of States and
political subdivisions
Other bonds, notes and debentures
Corporate stocks, including
stocks of Fed. Reserve banks
Total securities
Total loans and securities....
Currency and coin
Reserve with Fed. Reserve banks...,
Balances with other banks
Total cash, balances with
"
other banks, including reserve balances and cash items
in process of collection,...
Other assets.
Total assets

Oct. 7,
1954
4,827

|
»

June 30, *' Sept. 30,
1954
; 1953
1

1+.S42

4,871

Increase or decrease : Increase or decrease
since June 30, 1954 : since Sept. 30, 195"}
Amount
:Percent : Amount
:Percent

-15

15,868,226
9,1+65,267

15,868,307
9,172,416

16,612,176
8,638,056

-81
292,851

3.19

-7^3.950
827,211

12,695,779
38,029,272
583,260
37~,41+6,012"

13,317,321
38,358,041+
575.658
37,782,386

12,342,510
37.592.7^2
5^3.^05
37,049,337

-621,542
-328,772
7,602
—
-33&.371*

-4.67
^So~
1.32
-.89

4367
£6.530

TTuT

1.07

269

-4.48
9.58
2.86

39,910,958
3,836
39,914,79*?"

35.835.931
26,424
35.862,355

35.287,^24
25.429
35,312,753

4,075,027
-22,588
*+.Q52,439

11.37
-85.48
11.30

396,675
4,623,634
-21,593
4,602,041

7,339,866

6,95^,581

6,346,681

385.285

5.5^

993.185

15.65

1.08

-109.525

-5-38

1,925,840
215,636
^9.396,136
86,842,148"
1,323,599
12,353,834
9,699,058
~
™

23,376,491

1,541,171
111,759,810

1,905,204

2.035,365

20,636

_210,936
^,933,07^
82,715,552

201,809
^+y,896,608
80,945,91^

1.385.790
12,400,242
10.913.876

1.335,691
12,570,050
10,074,427

^.7QQ
4,463,060
4,126,686
-62,191
-46,408
-1,214,818

24,699,908
24,030,168
1,498,245~
1,383,07!
108,913,615 106,359,190

-1,323,417
1+2,926
2,846,195

2.23
9.93
^•99

~^+7W
-.37
-11.13

-5.36
2.87
2.6l

13,827
5.^99,528
5,896,203
-62,092
-216,216
-375.369

.10
91
1,3.03
-84.

6.8fr_
12.53
7.28
-4.48
-1.72

-653,677
158,094

-2.72
11.43

5,!+00,620

5.08

Comparison of principal" iu8ms of assets and liabilities 61 •^Itional banks - Continued
(In thousands of dollars)
:Increase or decrease :Increase or decrease
Sept. 30, > since June 30, 135k tsince Sept. 30, 1953
Oct. 7,
1953
1951+
s
Amount
-Percent •
Amount
• Percent
LIABILITIES
Deposits of individuals, partnerships, and corporations;
Demand
55,144,436
Time
24,413,920
deposits of U. S, Government
4,374,955
Postal savings deposits..........
13,046
Deposits of States and political
subdivisions
6,480,477
Deposits of banks
10,127,696
Other deposits (certified and
cashiers1 checks, etc.)........
1,320,499
Total deposits
101,880,029
Bills payable, rediscounts, and
other liabilities for
borrowed money
233 ,^78
Other liabilities
1,733,972
Total liabilities, excluding
capital accounts
103,847,479
CAPITAL ACCOUNTS
Capital stock:
Preferred
4,602
Common
2,389,884
Total
2,394,48cT
Surplus
3,690,908
Undivided profits
1,5^0,254
Reserves
286,683
Total surplus, profits, and
reserves
5,517,845
Total capital accounts
7,912, 331
Total liabilities and
capital accounts
111,759,810
Percent
RATIOS:
U. S. Gov't securities to totel
assets
••
35*71
Loans & discounts to total assets.
33*51
Capital accounts to total deposits.
7*77

53.78!+, 1+50
23,978,113
3,614,035
13.070

53,791.070
22,548,572
3.859,916
13,436

1,359.986
440,807
760,920
-24

2.53
1.84
21.05
-.18

1.353.366
1,870,348
515,039
-390

2.52
8.29
13-3^
-2.90

7,063,425
9.752,516

6,222,1+45
8,881,040

-582,948
375.180

-8. 25
3-85

258,032
1,246,656

4.15
14.04

1,439,122

-118,623
2,235,298

-8.24
2.24

19,216
5,262,267

1.48

99,644,731

1.301.283
96,617,762

28,751
1*535,233

483,231
ii9Q2,35i

204,727
198.739

712.07
12.95

-249,753
,-168,379

-51.68
-8.85

101,208,715

99,003,31+1+

2,638,764

2.6l

4,8*14,135

4.89

i+,793
2,366,285
2,371,078
3.645,330
l,4o4,866
283,626

5,444
2,268,439
2,273,883
3.^25,699
1.387,126
269,138

-191
23,599
23,408
!+5.578
135,388
3,057

-3-98
1.00

-15.^7

1.25
9.64
1.08

-842
121,1+1+5
120,603
265,209
153.128
17,5^5

5*333,822
7,704,900

5,Ogl,96j
7.355,84o

184,023
207,^31

3.1+5

435,882

2.69

556.M!

108,913,615
Percent

106,359,190
Percent

2,846,195

2.6l

32.93
3I+.69
7.73

33.20
34.83
7.61

NOTE:

5,^00,620

5.U-5

5
.35
•25JO
7774
11.04
6.52

JL51
J^L
5.08

Minus sign denotes decrease.

TREASURY DEPARTMENT

348

WASHINGTON, D.C.

I&LEDUAIU. R U L U A S E

Monday, December 6, 195 U
Treasury Secretary Humphrey today announced the appointment of a career
official, Henry J. Holtzclaw, as Director of the Bureau of Engraving and
Printing.
Mr. Holtzclaw has served in the Bureau since 1917. He became Assistant
Director in 191+9, Associate Director in 1950, and Acting Director upon the
retirement last ITcvembsr 1 of Alvin T.-J. Hall as head of the Bureau.
"The appointment of Mr. Holtzclaw as successor to Mr. Hall is well-earned
recognition of excellent service by a Government career man," Secretary
Humphrey said.
Mr. Holtzclaw entered the Bureau's eriploy in 1917 as a skilled helper
and was promoted successively to draftsman, engineering draftsman, associate
mechanical engineer, mechanical expert and designer, and chief, research and
develonment engineering. He then was appointed Assistant Director.
Throughout his service to the Bureau Mr, Holtzclaw has made important
contributions to its work, particularly in programs of modernization of
equipment and procedures and the effecting of operating economies.
Activities of the Bureau for which he becomes responsible include the
design and production of currency, securities, postage and revenue stamps,
Government checks, Military commissions and certificates, and other engraved
work for the various Government agencies, the Board of Governors of the
Federal Reserve System, and insular possessions of the United States.
Mr. Holtzclaw was bom Noverfcer 28, I896, in Fauquier County, Virginia*
He has been a full member of the American Society of Mechanical Engineers
since 1953.
His home is at 2231 Sudbury Road, Northwest.

0O0

Treasury Secretary Humphrey today announced the appointment
of a career official, Henry J. Holtzclaw, as Director of the
Bureau of Engraving and Printing.
.Mr. Holtzclaw has served in the Bureau since 1917. He
became Assistant Director in 194-9, Associate Director in 1950,
and Acting Director upon the retirement last November 1 of
Alvin W. Hall as head of*the Bureau.
"The appointment of Mr. Holpclaw as successor to Mr. Hall
is well-earned recognition of excellent service by a Government
career man," Secretary Humphrey said.
Mr. Holtzclaw entered the Bureau's employ in 1917 as a skilled
helper and was promoted successively to draftsman, engineering
draftsman, associate mechanical engineer, mechanical expert and
designer, and chief, research and development engineering.

then was appointed Assistant Director.
Throughout his service to the Bureau Mr. Holtzclaw has made
important contributions to its work, particularly in programs of
modernization of equipment and procedures and the affecting of
operating economies.
Activities of the Bureau for which he becomes responsible
include the design and production of currency, securities, postage
a/id revenue stamps, Government checks, Military commissions and
certificates, and other engraved work for the various Government

- 2 -

agencies, the Board of Governors of the Federal Reserve System,
and insular possessions of the United States.
Mr. Holtzclaw was born November 28, 1896, in Fauquier County,
Virginia.

He has been a full member of the American Society

of Mechanical Engineers since 1933.
His home is at 2231 Sudbury Road, Northwest.

345
- 3Administration's policy of selling mostly short-term securities
and using the powers of the Federal Reserve System to hold down
interest rates artificially. A fundamental conclusion of both
of your predecessor subcommittees was that such action was not
in the best interests of* the Nation. This was their considered
judgment in language used by the Douglas Subcommittee and reaffirmed by the Patman Subcommittee: "...we believe that the
advantages of avoiding inflation are so great and that a
restrictive monetary policy can contribute so much to this end
that the freedom of the Federal Reserve to restrict credit and
raise interest rates for general stabilisation purposes should be
restored even if the cost should prove to be a significant increase in service charges on the Federal debt and a greater
inconvenience to the Treasury in its sale of securities for new
financing and refunding purposes."
This Administration has followed these principles because
we believe them to be fundamental principles of good government.
We believe the record of the past two years has indicated their
effectiveness in giving us honest money and laying a firm
foundation for the sound growth and prosperity of our country.

0O0

- 2-

344

Major tax reductions and comprehensive tax revisions, along
with the ending of* price and wage controls, are removing barriers
to economic growth and restoring individual initiative and.
enterprise. Savings in Government spending which have he&n
returned to the people in the form of tax cuts are helping sustain
the economy, increase employment and production.
Progress is being made toward getting our huge public debt
in better shape, so that its maturities can be handled more
easily and debt operations will not stimulate either inflation or
deflation. Treasury financings have been designed to tie in with
action taken by the Federal Reserve System to keep the supply of
money and credit in line with the needs of the country.
The principles we have been following in the management of
the large public debt are not new, They are, likewise,
principles that have been laid down by your predecessor subcommittees after extensive study and careful consideration of the
fundamental role they can play in effective monetary policy.
The first principle Is that monetary and debt management
policies should be flexible. To be effective they must lean
against inflation as well as deflation. As put by the Douglas
subcommittee and reaffirmed by the Batman subcommittee; "Timely
flexibility toward easy credit at some times and credit restriction
at other times is an essential characteristic of a monetary policy
that will promote economic stability rather than instability."
The second principle is that treasury debt management
operations should be consistent with current monetary and credit
control policies of the Federal Reserve. This means close
cooperation at all times between the Federal Reserve and the
Treasury. As Representative Batman's Subcommittee reported in
1952: tsNeither the problems of monetary policy nor those of debt
management can be solved in Isolation from the other. We recommend
that the Treasury and the Federal Reserve should continue to
endeavor to find by mutual discussion the solutions most in the
public interest for their common problems. #.. **
The answers which we have already submitted to your
Subcommittee^ questions detail the actions we have taken in
cooperation with the Federal Reserve during the past two years in
carrying out these principles. They show the manner in which our
debt operations have been designed to complement monetary action
taken by the Federal Reserve to promote economic stability, first
by helping to restrain inflation and then later by helping to avoid
deflation.
The record has not always been as impressive. As you know,
at the time of the earlier Congressional hearings on monetary
policy and debt management, the economy had been under strong
Inflationary pressures. Monetary policy had been largely ineffectual In helping to control inflation because of the previous

TREASURY DEPARTMENT
Washington

343

Statement by Treasury Secretary Humphrey before the
Subcommittee on Economic Stabilization of the
Joint Committee on the Economic Report
Tuesday, December 7, 195k
Mr, Chairman, Gentlemen:
We welcome this opportunity to appear before your Subcommittee
to review the fiscal and debt management policies of the Treasury
from the point of view of their economic influence.
At the outset and before considering in detail the activities
of the Treasury during the past two years, I want to make a few
general comments on the direction of our entire fiscal program as
well as the principles guiding us in the management of the public
debt.
The Administration's budgetary and tax policies, along with
Its debt management policies, have all been designed to promote
high employment, rising production, and a stable dollar.
We have in fact-been following the policies advocated by your
predecessor subcommittees that -- as stated in the Douglas report
of January, 1950, in language reaffirmed in the Patman report of
June, 1952 -T "appropriate, vigorous, and coordinated monetary,
credit, and fiscal policies" should "constitute the Government's
primary and principal method" of promoting the purposes of the
Employment Act, and further, their recommendation "that Federal
fiscal policies be such as not only to avoid aggravating economic
instability but also to make a positive and important contribution
to stabilization, at the same time promoting equity and incentives
in taxation and economy in expenditures."
Government spending programs have been cut by billions of
dollars. Waste and extravagance have been eliminated in many
areas. Economy in Government and efforts to get the Federal
budget under even better control are continuing without letup.
These efforts are of great importance to the future of our country
and are fundamental in the Administration's honest money program.
H-652

STATEMENT BY TRE&SURY SECRETARY HUMPHREY BEFORE THE
SUBCOMMITTEE ON ECONOMIC STABILIZATION OF THE
JOINT COMMITTEE" ON THE ECONOMIC REPORT
TUESDAY, DECEMBER 7, 19$k
Mr. Chairman, Gentlemen:
We welcome this opportunity to appear before your Subcommittee to review the
fiscal and debt management policies of the Treasury from the point of view of
their economic influence.
At the outset and before considering in detail the activities of the Treasury
during the past two years, I want to make a few general comments on the direction
of our entire fiscal program as well as the principles guiding us in the management of the public debt.
The Administration's budgetary and tax policies, along with its debt management policies, have all been designed to promote high employment, rising production, and a stable dollar. We have in fact been following the policies advocated by your predecessor subeommittees that — as stated in the Douglas report^
MmS.

m\r\c< —yAfcaA Ta-jth fffowwai ^n the Patman report^— "appropriate, vigorous, and
coordinated monetary, credit, and fiscal policies" should "constitute the
Government's primary and principal method" of promoting the purposes of the
Employment Act, and further, their recommendation "that Federal fiscal policies
be such as not only to avoid aggravating economic instability but also to make a
positive and important contribution to stabilization, at the same time promoting
equity and incentives in taxation and economy in expenditures."
Government spending programs have been cut by billions of dollarso Waste and

extravagance have been eliminated in many areas. Economy in Government and effort

to get the Federal budget under even better control are continuing without letup*
These efforts are of great importance to the future of our country'and are
fundamental in the Administration's honest money program.

•\-\nf\

-+:
•

~ 2 -

"if fe****ly^f- ff-f~ J

- .

w
A
*. _ * * *J
0y':f»*f

iajrmxjL, laru*-**>**-&

J
^Major tax reductions and comprehensive tax revisionsNare removing barriers
,to economic growth and restoring individual initiative and enterprise. Savings
in Government spending which have been returned to the people in the form of
tax cuts are helping sustain the economy, increase employment and production.
Progress is being made toward getting our huge public debt in better shape,
so that its maturities can be handled more easily and debt operations will not
stimulate either inflation or deflation. Treasury financings have been designed
to tie in with action taken by the Federal Reserve System to keep the supply
of money and credit in line with the needs of the country*
The principles we have been following in the management of the large public
debt are not new. They are, likewise, principles that have been laid down by
your predecessor subcommittees after extensive study and careful consideration
of the fundamental role they can play in effective monetary policy*
The first principle is that monetary and debt management policies should be
flexible. To be effective they must lean against inflation as well as deflation.
fi**y ^2
*^Jycayf/py+*>L~KA- ; • ^"
l
As .the Douglas subcommittee^w%"» "M '".'ii^Lijii »AtbJMit'flft*eg^3q3TPPij approval off
r)

the Patman subcommittee:
"Timely flexibility toward easy credit at some times and credit
restriction at other times is an essential characteristic of a
monetary policy that will promote economic stability rather than
instability."
The second principle is that Treasury debt management operations should be
consistent with current monetary and credit control policies of the Federal
Reserve. This means close cooperation at all times between the Federal Reserve
and the Treasury. As Representative Patman* s Subcommittee reported in 19$2t
"Neither the problems of monetary policy nor those of debt management
can be solved in isolation from the other. We recommend that the
Treasury and the Federal Reserve should continue to endeavor to find
by mutual discussion the solutions most in the public interest for
their common problems....»

3 The answers which we have already submitted to your Subcommittee's
questions detail the actions we have taken in cooperation with the Federal
Reserve during the past two years in carrying out these principles. They
show the manner in which our debt operations have been designed to complement
monetary action taken by the Federal Reserve to promote economic stability,
first by helping to restrain inflation and then later by helping to avoid deflation.
The record has not always been as impressive. As you know, at the time
of the earlier Congressional hearings on monetary policy and debt management,
the economy had been under strong inflationary pressures* Monetary policy had

been largely ineffectual in helping to control inflation because of the previous
Administration's policy of selling mostly short-term securities and using the
powers of the Federal Reserve System to hold down interest rates artificially*
A fundamental conclusion of both of your predecessor subcommittees was that
such action was not in the best interests of the Nation. This was their considered judgment in language used hy^fe^^-wwlwaamnfHsfyzM^ ftZ<X- ^7 yfc sy.y
^ $ ^ ^ . ^ *-,.-,-»»£*2^«2. ;
// "...we believe that the advantages of avoiding inflation are so
great and that a restrictive monetary policy can contribute so
much to this end that the freedom of the Federal Reserve to
restrict credit and raise interest rates for general stabilization
purposes should be restored even if the cost should prove to be
a significant increase in service charges on the Federal debt and
a greater inconvenience to the Treasury in its sale of securities
for new financing and refunding purposes*"
This Administration has followed these principles because we believe them
to be fundamental principles of good government* We believe the record of the
past two years has indicated their effectiveness in giving us honest money and
laying a firm foundation for the sound growth and prosperity of our country.

TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS,
Wednesday, December 6, 1954.

H-651

The Treasury Department today made public
a report of monetary gold transactions with foreign
governments and central banks for the third quarter
of 135k, The net gold outflow from the United States
i& this period was $171.3 million, the largest volume
of net sales for any quarter since the third quarter
of 1953.
In the nine months ended September 30, 195*+,
TJoS. gold purchases were $101.1 million and sales were
$355-5 million. These transactions brought to $25*4.3
million the net outflow ©f gold in the period January 1 September 30, I95U.
The outward gold movement frcm the United States
continued to be low in October and November with U.S. net
sales of $35.6 million and $36.7 million, respectively.
Data for these two months are not yet available fcr
publication on a country-by~country basis.
A table showing net transactions, by country,
for the first three quarters of 195^ and calendar
1953 is attached.

tHrr^^D STATES GOLD" TB13FSACTI0HS WITH KJ&EKSBT COUNTRIES
January 1, I95H - September 30, 195*+
"•""*»

first
Quarter
I95U

Country

M/ -'

Argentina . » . ;
...»
Belgium
Pelglan Congo ............

Bolivia ......
........
Colombia *..........».,...

^3.2
—

£2.0

-410.0

-15*6

Germany .............

—

Second
Quarter
19 5k

Third
Quarter
195U

Calendar Year
1953

—
_Q Q
- J m, J

-3*5
-13,2
-1*40.0
-1.1

-130o0

-*+.6
go ? 3

-28,1

-r65.°

•*?

-5.0

-5*o
Swit zerland,

—

Switzerland-Bank for
International Settlements
Syria

—7-9
-

-1.1

TJhited kingdom.............
Uruguay
T,.,

-5*0

~5o.o

Tatican City ..............

5*5

-20o0

-59.9
-20.0
-65.0

-g.O

-9^3
-.5

-2*6

-3.3

All Other

-15.0

Ko
-30o0
-.2

-.1

-1.5

_$63.0 —$1Q.6

-$171-8

-$1,16^.2

-.2
Total

-Uso.o

figures may not add to totals because of rounding*.
Fote: Negative figures represent net sales by the United States; positive
figures, net purchases,

TREASURY DEPARTMENT
WASHINGTON, D
RELEASE MORNING NEWSPAPERS,
Tuesday, December 7, 195*1.

H-650

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated December 9, 1954, and to mature March 10, 1955* which were
offered on December 2, were opened at the Federal Reserve Banks on
December 6,
The details of this issue are as follows:
Total applied for - $2,111,752,000
1,500,232,000 (includes $223,301,000
Total accepted
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
99.725/ Equivalent rate of discount approx.
1.0&7^ per annum
Range of accepted competitive bids:
- 99.752 Equivalent rate of discount approx.
0.98l^ per annum
Low
- 99.720 Equivalent rate of discount approx.
l.ICbfi per annum
{66% of the amount bid for at the low price was accepted)
High

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

Total
Applied for
$
29,960,000
1,511,750,000
34,705,000
36,797,000
23,635,000
26,624,000
176,695,000
30,921,000
15,775,000
52,096,000
31,755,000
$2,111,752,000
141,037,000
0O0

Total
Accepted
29,960,000
960,230,000
19,705,000
36,797,000
23,635,000
26,624,000
131,695,000
30,921,000
15,775,000
52,OSS,000
31,755,000
$1,500,232,000
141,037,000

RELEASE M0BNI1IG KEwSPAPEES,
Tuesday, l)eeember 7, 195k.

U ,

The Treasury Department anooanced last evening that the tenders for #1,500,000,000,

or thereabouts, of 91-day Treasury tills to be dated Deceaher ?, 195k, and to aatar

March 10, 1955, which were offered on Becedber 2, were opened at the Federal Reserv
Banks on Deeeaber 6.
The details of this Issue are as follows:
Total applied for - |2,111,752,000
Total accepted
- 1,500,232,000 (includes $223,301,000 entered on
a noncoMpetitive basis and accepted in
full at the average price shown below)
Average price
- 99.725/ Equivalent rate of discount apnrox. 1.06ft ver annoe
Range of accepted competitive bids:
High - 99.752 Equivalent rate of discount approx. 0.98l£ per a&nue
Low
- 99.720
•
•
•
•
»
1.106* •
(66$ of the aaount bid for st the low price was accepted)
Federal Reserve
District

Total
Applied for

Total
Accepted

Boston
hew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
. t. Louis
Minneapolis
lansas City
Dallas
San Francisco

$
29,960,000
1,511,750,,000
34,705;,000
36,797,,000
23,635,,000
26,621,,000
176,695 ,coo
30,921,,000
15,7*5,,000
52,098^,000
31,755,,000
1*1,037,,000

,000
12,111, "52,

$1,500,232,000

Total

29.960,000
960,230,000
19,705,000
36,797,000
23,635,000
26,6214,000
I H , 695.000
30,921,000
15, 775,OOC
52,096,000
31»"?5.C-X
Hil,037,G00

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Friday, December 3, 195b.

H-61i9

The Treasury Department announced today that final tabulation of subscriptions
for the recent exchange offering showed •*" 6,72b, million for the new 8-year and 8-month
2-1/2 percent Treasury bonds, £5,358 million for the new one-year 1-1A percent certificates, and tk,920 million for the 1-1/6)6 certificates maturing August 15, 1955The following tables show the amounts outstanding of the three issues eligible
for exchange, and the extent to which they are beirif^ exchanged for the new issues,
and subscriptions by Federal Reserve Districts.

Old Issues

Eligible
for
Exchange

(In millions of dollars)
Exchanf.e Subscriptions for New Issues
1-1/8%
Total
2-1/2*
1-1/1$
Cert.
Bond
Cert.

Unexchanged

1 8,175

5 316

$3,286

$h>h9o

t 8,130

$ h$

Bonds of 1952-5U..

8,662

6,002

1,985

h08

8,395

267

Bonds of 1951-55-.

510

376

U77

$17,31*7

$6,721

£5,358

$1,920

$17,002

%3k$

SUBSCRIPTIONS 3Y FEDERAL RESERVE DISTRICTS

Federal Reserve
District

2-1/2*
Treasury Bonds
of 1963

1-1/k%
Series E-1955
Certificates

1-1/8*
Series D-1955
Certificates

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

£ 229,505,500
2,868,852,000
276,1455,500
393,306,500
156,571,000
1714,789,000
I,0)i3,5l9,000
237,280,000
192,1452,000
258,166,500
188,682,500
69li,193,500
9,899,000

$
72,1468,000
3,910,878,000
68,960,000
116,91^,000
58,091,000
109,139,000
121,692,000
70,301,000
55,755,000
91,155,000
Ui,665,000
299,983,000
5,072,000

$
1,672,000
k,869,192,000
2,6U5,000
lli,560,000
2,965,000
6,8lU,000
12,1*70,000
2,1*73,000
1,817,000
2,520,000
1,237,000
1,528,000
38,000

£6,723,672,000

$5,358,106,000

$1,919,931,000

Total

IMMEDIATE ft&XIiSB,
Friday, December 3. 1951* <

h/~l4*f

The Treasury Department announced today that final tabulation of subscriptions
for the recent exchange offering showed 16,72k million for the new 8-year and 8-month
2-1/5? percent Treasury bonds, 15,358 million tar the new one-year 1-3/1* percent certificates, and li.,920 million for the 1*1/8* certificates maturing August 15, 1955.
The following tables show the amounts outstanding of the three issues eligible
for exchange, and the extent to which they are being exchanged for the new issues,
and subscriptions by Federal Reserve Districts.

Old Issues
NOvCS «.«.»«...e.*

Eligible
for
Exchange

Total ,

#3,286

• 8,175

Bonds of 1952-54..
Bonds of 1951-55..

(In millions at dollars)
Exchange Subscriptions for New Issues
2-1/235
fetal
1-:
Cert*
Bond
Cert*

|i t" m lll|l I mmmmMmmmmmmmmmmmfmMtgmmmm.mmmmmmmWI****'*'

6,002

1,985

I 8,130

145

8,395

267

M.
#17,347

#4,498

16,724

#5,358

14,920

Unexchanged

117,002

-J1
#345

smmmnwm m FEDMAI axmers BISTEXTS
Federal Reserve
District

2-3/2*
Treasury Bonds
of 1963

1-1/4*
Series E-1955
Certificates

1-1/8*
Series D-1955
Certificates

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

I 229,505*500
2,868,352,000
276,1*55,500
393,306,500
156,571,000
174,789,000
1,01*3,519,000
237,280,000
192,1452,000
258,166,500
188,682,500
69ii,193,500

91,455,000
UA,665,OOO
299,983,000
5.072.000

I
1,672,000
4,869,192,000
2,645,000
1U,$60,000
2,965,000
6,8I4,OOQ
12,170,000
2,1*73,000
1,817,000
2,520,000
1,237,000
1,528,000
38,000

16,723,672,000

#5,358,ii06,000

14,919,931,000

Total

?2,li68,000
3,943,878,000
68,960,000
116,9104,000
58,094,000
109,139,000
1*21,692,000
70,301,000

55,?55,ooo

v{\
yy

TREASURY DEPARTMENT
Washington
TOR RELEASE ON DELIVERY * ° ^ E-648
Extracts from Remarks by
Marion B. Folsom,
Under Secretary of the Treasury,
before the Washington Conference of Mayors,
2:00 p.m. EST, Friday, December 3, 1954;
It is a pleasure to meet with you again to discuss the perennial problem
common to your jobs and mine—financing Government. Our problems are much alike,
with the difference that Federal finances have larger dimensions and possibly
receive more front page space. I sometimes feel that city finances would be
nearer solution if they had the benefit of more thoughtful public discussion*
It is important that your financing problems receive more public attention, not
only because they are difficult and challenging, but also because the success
with which city halls and town halls solve their problems is vitally important
to the continued healthy progress of our economy*
Local government today is a big and growing business. In 1953, it spent
|2lg billion. This is almost twice the direct expenditures of the 48 State
governments. In 1953 ^ State and local government together spent almost half
(42 percent) as much as did the Federal Government for all purposes, including
national defense.
A very important supporting influence in the economy in this transition
period is that while Federal expenditures have been coming down, State and
local spending and personal consumption expenditures have increased. Federal
spending for goods and service on an annual basis averaged $51.4 billion in the
first three quarters of this year, down |8.8 billion from the same period last
year. At the same time State and local spending for goods and services increased
from $24.8 billion to $27.2 billion, and personal consumption
expenditures
were up from |230.2 billion to §232.8 billion. As a result the total economy
has been well sustained.
Large cuts in Federal spending made financially feasible tax reductions
this year which total si>7.4 billion—the largest dollar tax reduction in any one
year in our Nation's history.
We believe that the overall reduction in the Federal tax load is a more
effective way to help meet your financing problems than would be a reallocation
of tax sources among governments. Our goal is to encourage growth in the entire
economy—"-which increases your tax bases and ours—by proper tax and monetary
policies as well as by other appropriate measures.
As reductions in Federal taxes take place, the financial capacity of States
and municipalities is increased. Federal tax cuts have an important effect—though
mainly an indirect effect--upon the problems facing you in your respective cities.
Most of the solutions to the financing problans of municipal governments rest
with you and your voters as well as with the State governments. The tax and
other policies of this Administration are designed to help you by facilitating
national economic prosperity and by improving the ability of your State legislatures to help you.

oOo

FOR RELEASE OH DELIVERY

f~y

&4#

Extracts from Remarks by
Marion B. Folsom,
Under Secretary of the Treasury,
before toe Washington Conference of Mayors,
^.v/^^Friday, December 3, 1951*•
It is a pleasure to meet with you again to discuss the perennial
problem common to your jobs and mine—financing Government. Our problems
are much alike, with the difference that Federal finances have larger
dimensions and possibly receive more front page space. I sometimes feel
that city finances would be nearer solution if they had the benefit of
more thoughtful public discussion. It is important that your financing
problems receive more public attention, not only because they are difficult and challenging, but also because the success with which city halls
and town halls solve their problems is vitally important to the continued
healthy progress of our economy.
Local government today is a big and growing business. In 1953, it
spent #21J billion. This is almost twice the direct expenditures of the
48 State governments. In 1953, State and local government together Spent
almost half (42 percent) as much as did the Federal Government for all
purposes, including national defense.

A very important supporting influence in the economy in this
;ransition period is that while Federal expenditures have been coming
down, State and p^xMxixKiooffia^iiHHXKxpra&i&MX&s: and local spending
and personal consumption expenditures have increased. Federal spending
for goods and service on an annual basis averaged $51.4 billion in the
first three quarters of this year, down $8.8 billion from the same
period last year.At the same time State and local spending for goods
and services increased from $24.8 billion to $27.2 billion, and personal
consumption -aejfl expenditures were up from $230.2 billion to $232.8
pillion. As a result the total economy has been well sustained.
Large cuts in Federal spending

- 2 -

spends on all its activities, excluding national security and interest on

this year which total #7.4 billion^—the largest dollar tax reduction in
any one year in our Nation's history.
We believe that the overall reduction in the Federal tax load is a
more effective way to help meet your financing problems than would be a
reallocation of tax sources among governments. Our goal is to encourage
growth in the entire economy— <iu«jl iuulilOHUalli £» your tax bases and
ours—by proper tax and monetary policies as well as by other appropriate
measures.

As reductions in Federal taxes booeme peeeiil^, the financial capacity
of States and municipalities is increased. 9mam Federal tax cuts have an
important effect—though mainly an indirect effect—upon the problems
facing you in your respective cities. Most ^solutions to the financing
problems of municipal governments rest with you and your voters as well
asithe State governments. The tax and other policies of this Administration

- 3 are designed to help you by facilitating national economic prosperity
and by improving the ability of your State legislatures to help you.

- 2competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on
December 9, 1954, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing December 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, does not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 1954. The bills are subject
to estate, inheritance, gift or other excise taxes, whether Federal
or State, but are exempt from all taxation now or hereafter imposed
on the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States Is considered to
be Interest. Under Sections k5k (b) and 1221 (5) of the Internal
Revenue Code of 1954 the amount of discount at which bills issued
hereunder are sold is not considered to accrue until such bills
are 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
conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

TREASURY DEPARTMENT
—•"

— ~"

—— •-'•-" • ^ " ^ — X L v s s s s £ 3 8 s m x j * M i ^ ^

WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS,
Thursday, December 2, 1954.

H-647

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 December 9,- 1954,
in the amount of $1,502,432,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated December 9, 1954,
and will mature March 10, 1955, when the face amount will be
payable without interest. They will be issued in bearer form only,
and In denominations of $1,000,. $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Standard time,
Monday, December 6, 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 i
responsible and recognized dealers in Investment securities. Tenderi
from others must be accompanied by payment of 2 percent ofthe 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 th<
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

HIM
TREASURY DEPARTMENT
Washington

y_ c < / /

FOR RELEASE, MORNING NEWSPAPERS,
Thursday, December 2, 1954

The Treasury Department, by this public notice, invites tenders for
* 1^00j^0|QQQ * °r

thereabout

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

in exchange for Treasury bills maturing December 9, 195k in the amount of
* 1^02^»2'Q0° '

t0 bS issued on a discount

basis under competitive and non-

competitive bidding as hereinafter provided. The bills of this series will be
dated

December 9, 1954 and will mature March 10, 19$$ _ when the face

#£
amount will be payable without interest.

p$
They will be issued in bearer form only,

and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,00
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock p.m., Eastern Standard time, Monday. December 6. 19^ .
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

incorporated banks and trust companies and from responsible and recognized dealer
in investment securities. Tenders from others must be accompanied by payment of

- 2 gKTOC

2 percent of the face amount of Treasury bills applied for, unless the tenders ar
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 Re-

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, noncompetitive 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 December 9. 1954 , in cash or other immediately available funds
or in a like face amount of Treasury bills maturing December 9. 195U 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

or State, but are exempt from all taxation now or hereafter imposed on the princi
or interest thereof by any State, or any of the possessions of the United States,

- 3-

or by any local taxing authority. For purposes of taxation the amount of discoun

at which Treasury bills are originally sold by the United States is considered t

be interest. Under Sections k$k (b) and 1221 (5) of the Internal Revenue Code of
195b the amount of discount at which bills issued hereunder are sold is not

considered to accrue until such bills are sold, redeemed or otherwise disposed o
and such bills are excluded from consideration as capital assets. Accordingly,

the owner of Treasury bills (other than life insurance companies) issued hereund

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. kl&, 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 Branch9

Q9s
V-

CM.

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Monday, November 29, 1954.

.
H-040

Preliminary figures show that about
$6.7 billion of Treasury securities maturing
December 15th have been exchanged for the new
medium-term eight-year, eight month 2-1/2$
Treasury bonds.
Trie final results of the three-way exchange
offering for $173 billion of certificates and
bonds maturing on December 15th will be
announced later this week.
The preliminary figures also show approximately
$5.3 billion subscriptions for the new one-year
1-1/4$ certificate of indebtedness and approximately
$4.9 billion for the 1-1/8$ certificate maturing
August 15, 1955.

oOo

Preliminary figures show that about $6.7 billion of ia—ir maturing
December 15th have been exchanged for the new medium-term eight-year, eight
month 2-1/2$ Treasury bonds.
The final results of the three-^way exchange offering for 017.3 billion
of certificates and bonds maturing on December 15th will be announced later this
week.
The preliminary figures also show approximately $$ $5.3 billion subscriptions for the new one-year l-^5fe& certificate of indebtedness and approximately
$4.9 billion for the 1-1/8$ certificate maturing August 15, 1955.

COMPARISON OF PRELIMINARY AM) FINAL STATEMENTS
SHOWING BUDGST RESULTS FOR THE FISCAL YEAR 1954
(In millions)

32.3

Final
statement

Preliminary
statement

$21,635
10,747
21,523
10,014
945
9
5>425
562
2,311

$21,673
10,761
21,483
10,048
929
10
5>k2$
562
2,175

4,537

603
3,577

603
3,377

Budget Receipts
Individual income taxes withheld
Individual income taxes - other
Corporation income taxes
Excise taxes
Estate and gift taxes
Taxes not otherwise classified
Employment taxes
Customs
Miscellaneous receipts

jy
-$38
-Ik
+k0
-34
+16
-1

+136

Total budget receipts 73,173 73,067 +106
Deduct:
Appropriation to Federal old-age and
survivors insurance trust fund
Appropriations to Railroad
Retirement Account
Refunds of receipts

Total deductions 8,517 8,517
Net budget receipts 64,655 64,550 +106
Budget Expenditures
Legislative branch
59
Funds appropriated to the President
for mutual security, etc
5/282
Independent offices
6,473
Defense Department:
Military functions:
Office of Secretary of Defense
464
Army
12,910
Navy
11,293
Air Force
15,668
Civil functions
605
Undistributed
Health, Education and Welfare Dept. ..
l,98l
Post Office Department
312
State Department
156
Treasury Department:
Interest on the public debt
6,382
Other
956
All other agencies
5,231
Total budget expenditures 67,772 67,579 +193,

-7

5,155
6,459

+127
+14

445
12,730
11,277
15/403
606
a/ 291
1,982
462
l49

+19|
+l8c|
+16
+265
-1
-291
-1
-150
+7

6,371
952
5>23l

+11
+4
2-

Budget deficit 3,H7 3,029 +88_
a/ Distribution of this amount in final statement contributes to major
~"
differences in certain classifications.

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Monday, November 29, 1954.
The Treasury released today the final figures showing budget
results for the fiscal year ended June 30, 1954. This final
statement is in line with the improved reporting procedures adopted
jointly by the Treasury Department, Bureau of the Budget, and the
General Accounting Office, under the Budget and Accounting
Procedures Act of 1950.
The statement is based on the final accounts for the fiscal
year of collecting and disbursing officers of the Government, and
is the final statement referred to in the announcement accompanying the preliminary figures released last July 22. Differences
between today1s statement and the preliminary figures are due to
inclusion in the final accounts of certain receipts and expenditures, including overseas transactions, reports of which were not
available when the preliminary statement was released, and certain
reclassifications. Beginning with this statement, transactions of
the Post Office Department will be reported on the same basis as
other agencies of the Government.

This change is made possible

by newly installed improvements in accounting and reporting
procedures.
The final statement shows a budget deficit for the fiscal
year 1954 of $3,117 million, which is $88 million higher than the
preliminary figure released last July.
The following table is a comparison of the preliminary and
final figures, showing the principal differences.

FIGURES FCBr^SCAL YEAR 195* r y

^^yD

The Treasury released today the final figures showing budget results
for the fiscal year ended June 30, 1954. This final statement is in line
with the improved reporting procedures adopted jointly by the Treasury
Department, Bureau of the Budget, and the General Accounting Office,
under the Budget and Accounting Procedures Act of 1950.
The statement is based on the final accounts for the fiscal year of
collecting and disbursing officers of the Government, and is the final
statement referred to in the announcement accompanying the preliminary
figures released last July 22. Differences between today's statement and
the preliminary figures are due to inclusion in the final accounts of
certain receipts and expenditures, including overseas transactions,
reports of which were not available when the preliminary statement was
released.^ Beginning with this4 statement, transactions of the Post Office
Department will be reported on the same basis as other agencies of the
Government. This change is made possible by newly installed improvements
in accounting and reporting procedures.
The final statement shows a budget deficit for the fiscal year 1954
of $3,117 million, which is $8Q million higier than the preliminary figure
released last July.
The following table is a comparison of the preliminary *nfl final
figures, showing the principal differences*

cJL**/^ vytJL 1U*. vt*m«**w // )-L$ jru

COMPARISON OF PRELIMINARY AMD FINAL STATEMENTS
SHOWING BUDGET RESULTS FOR THE FISCAL YEAR 1954
~"
(In millions)

Budget Receipts
Individual income taxes withheld
Individual income taxes - other
Corporation income taxes
Exeise taxes
Estate and gift taxes
•
Taxes not otherwise classified .......
Employment taxes
Customs
Miscellaneous receipts

Final
statement

Preliminary
statement

Change

$21,635
10,747
21,525
10,014
945
9
5,425
562
2,311

$21,673
10,76l
21,483
10,048
929
10
5,425
562
2,175

-$38
-14
+40
-34
+16
-1

Total budget receipts 73,173 73,067
Deduct:
Appropriation to Federal old-age and
survivors insurance trust fund
Appropriations to Railroad
Retirement Account .................
Refunds of receipts

+136
+106

4,537

603
5,377

603
3,377

Total deductions 8,517 8,517
Net budget receipts •«•••• 64,655 64,550
Budget Expenditures
Legislative branch
••••
Funds appropriated to the President
for mutual security, etc
Independent offices
Defense Department:
Military functions:
Office of Secretary of Defense
Army
Navy
Air Force
Civil functions
Undistributed
Health, Education and Welfare Dept. ..
Post Office Department
State Department
Treasury Department:
Interest on the public debt
Other
»
All other agencies
Total budget expenditures 67,772 67,579

+106
59

-7

5,282
6,473

5,155
6,459

+127
+14

464
12,910
11,293
15,668
605
l,98l
312
156

445
12,730
11,277
15,403
606
a/ 291
1,982
462
149

+19
+180
+16
+265
-1
-291
-1
-150
+7

6,382
956
5,231

6,371
952
5,231

+11
+4

Budget deficit 3,117 3,029
a/ Distribution of this amount in final statement contributes to major
differences in certain classifications.

+193

+88

TREASURY DEPARTMENT

317

WASHINGTON, D.C.

IMMEDIATE RELEASE,
Wednesday, November 24, 195**•

H-643

Daniel A. Taylor, Chief Counsel of the
Internal Revenue Service for the past year,
has resigned effective November 30 to return
to private practice.
Mr. Tayldr, on entering Government service
in November, 1953, indicated that his service
would be temporary, as he would eventually
desire to return to the private practice of
law.

Treasury Secretary Humphrey praised his

"high service" to the Internal Revenue Service
during the past year in accepting his resignation
with regret.

Daniel A. Taylor, Chief Counsel of the Internal Revenue
Service lor the past year, has resigned effective November 30
to return to private practice.
Mr. Taylor, on entering Government service in
November, 1953, indicated that his service would be temporary,
as he would eventually desire to return to the private
practice of law.

Treasury Secretary Humphrey praised his

high service" to the Internal Revenue Serviee during the

past year in accepting his resignation with regret.

DANIEL A. TAILOR, Chief Counsel of the Internal Revenue Service,
Treasury Department, was born December 11, 1&9$, on a farm in Casey
County, Kentucky.
Educated in the public schools of Kentucky, Mr. Taylor graduated
from Western Kentucky Normal and State Teachers College in 1917* and
taught in public schools of the State for three years.
After serving in the American Expeditionary Force during the First
World War, Mr. Taylor turned to the study of law. He received an LLB
degree from Washington and Lee University, Lexington, Virginia, in 1221,
and was admitted to practice before courts in Kentucky the same year.
From 1921 to 1928, Mr. Taylor was engaged in the general practice
of law. He was then appointed a Special Attorney in the Office of the
General Counsel, Bureau of Internal Revenue, (now Office of the Chief
Counsel, Internal Revenue Service). During the next l4 years, Mr. Taylor
served as trial attorney, and also in various administrative capacities
in the Bureau's legal office.
In June, 1942, he left the Internal Revenue Service to re-enter
private law practice, and specialized in Federal tax matters in Chicago,
Illinois, until he took office on November 9, 19$3 as Chief Counsel of
the Internal Revenue Service.
Mr. Taylor married Miss Margaret Gallegher, of Covington, Kentucky,
in 1928. A son, Daniel A. Taylor, Jr., 22, is now serving in the Air Force,
and a daughter, Jane Carol Taylor, 19, is a junior at the College of
William and Mary, Williamsburg, Virginia.
Mr. Taylor is a member of the American Bar Association, the Illinois
State Bar Association, the Chicago Bar Association, the Kentucky Bar
Association, and also has been admitted to practice in the District of
Columbia.

- 2 competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on Dacemoer 2, 19^4, j_n cash or other immediately available funds
or in a like face amount of Treasury bills maturing December 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 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 v/hich bills issued hereunder are sold shall not
be considered to accrue until such 1113s 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.

RELEASE MORNING NEWSPAPERS,
Thursday, November 25, 1954.

H-642

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 December 2, \95k,
in the amount of $1,500,236,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated December 2, 1954,
and will mature March 3, 1955,
when the face amount will be
payable without Interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Standard time,
Monday, November 29,, 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

OCXS Kin B D K

TREASURY LI3PAETMENT
Washington

/V- <V*-~

FOR RELEASE, MORNING NESfiSPAPERS,
Thursday, November 2$, 1954
kxx
The Treasury Department, by this public notice, invites tenders for
$ 1.500.000.000 * or thereabouts, of 91 -day Treasury bills, for cash and
December 2, 1954
> i-n ^ e amount of
xkx
, to be issued on a discount basis under competitive and non-

in exchange for Treasury bills maturing
$ l,500j 236,000

competitive bidding as hereinafter provided. The bills of this series will be
dated December 2. 1954 > and mil mature Harch 3. 1955 s

V7hen

the face

amount will be payable -without interest. They will be issued in bearer form only,
and in denominations of £1,000, $5*000, £.10,000, $100,000, $500,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock p.m., Eastern Standard tine, Monday, November 29. 1954 *
xxx
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 3anks 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 inv-stm-nt securities. Tenders from others must be accompanied by

- 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, following which public announcement will be made
by the Treasury Department of the amount and price range of accepted bids.

ms^
treatment. Cash adjustments will be made for differences between tno 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 havj any social tr-atm^nt, as sv.ch, un^cr the Internal Rove ram 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-

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 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 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. 4l8,/a2oa3SQ8Eteffix, 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
WASHINGTON. D.C.
IMMEDIATE RELEASE,
vledne sday3 November 24, 1954.

H-641

The Treasury Department announced today that it
had forwarded to the Tariff Commission a dumping case
involving imparts of muriate of potash from the Soviet
Zone of Germany. 15ie Treasury has determined that
sales in the united States are being made at less
than fair value.
Pursuant to the Customs Simplification Act of
1954, which amends the Antidumping Act of 1921, the
Tariff Commission will proceed to determine whether
American industry is injured or likely to be injured.
If the Tariff Commission establishes injury, a finding
of dumping will be made.
This is the first dumping case to be forwarded
to the Tariff Commission under the 1954 amendment
to the law.
ISie Treasury also announced that appraisement of
muriate of potash imports from other European countries
was being withheld pending determination as to sales
below fair value.

0O0

H -1/1

Move:

The Treasury Department announced today that
it had forwarded to the Tariff Commission a dumping
ease involving imports of muriate of potash from the
Soviet Zone of Germany*

The Treasury has determined

that sales. are being made at less than fair value*
A
Pursuant to the Customs Simplification Act of 1954*
which amends the Antidumping Act of 1921, the Tariff
Commission will proceed to determine whether American
industry is injured or likely to be injured*

If y^

//**

This is the first dumping ease to be forwarded
to the Tariff Commission under the 1954 amendment
to the law.
The Treasury also announced that appraisement of
muriate of potash imports from other European countries
was being withheld pending determination as to sales
below fair value*

- 11 We desire to complement these unilateral legislative steps with
bilateral tax treaties* To that end, we are prepared to explore with
individual countries the possibilities of the tax treaty as a medium for
creating a more favorable tax climate for international trade and investment. For example, one of the matters which might be considered in
treaty discussions is how the United States might give recognition to tax
concessions made to foreign capital by the country where the investment is
to be made0 Under proper safeguards, we wou?.d be prepared to recommend
giving credit for general foreign income taxes which s.re waived for an
initial limited period as we now grant credit for taxes which are imposed*
Such a measure as this will give maximum effectiveness to your own laws
designed to encourage new enterprises*
Our agenda includes the subject of programming* Individual nations
will no doubt continue to develop their over-all approaches to their own
economic development problemsc If any such nations wish to exchange views
on their plans with other nations undertaking similar development plans,
it may well be that this organization can provide such a meeting place.,
vie recommend that each of us expand and further diversify our joint
activities in the vital field of technical cooperation^ The interchange
of people under this program draws us closer together and provides a
better understanding of each other1s problemso Through technical cooperation we pool our accumulated experience and knowledge to utilise the
human and natural resources available to us as we seek to match resources
against our needs« The enormous mutual benefits already produced by our
efforts in this field justify our confidence in its future expansion.
We approach our talks here together with a sense of mission, which
I am sure is common to us all* The challenge of the years ahead is a
tremendous one* How we meet it ray determine our place in history. We
have great faith and confidence in the peoples and the lands that share
this hemisphere* The human and physical resources are here out of which
to build a glorious future.
The President of my country has very rightly called us partners in
this great enterprise * He has declared the policy of our government to
be that of the good partner,,
I know that the American states can be good partners, determined to
work for the betterment of all our peoples If we are energetic and
practical^ I am eonf idait that we stand on the threshold of a great tomorrow* As good partners we can make this coming together at Rio a
momentous one in the bright and lengthening record of Inter-American
relations.

0O0

- 10 -

The matter has been given most careful consideration by the United
States government, and we are going to ask the congress to support
United States participation in such a corporation. We have in mind an
institution organized as an affiliate of the International Bank, with an
authorized capital of $100 million to be contributed by those members of
the International Bank who Ttfish to subscribe*
The corporation would be able to make loans without the guarantee
of member governments© It would not directly provide equity financing*
It would, however, be empowered to hold securities bearing interest
payable only if earned, as well as debentures convertible into stock when
purchased from the corporation by private investors* In that way it
would operate in the area of venture capital without holding equity right
of control0 It would not compete with the International Bank, or the
Export-Import bank and indeed it would facilitate private investment.
If the international finance corporation is established, He shall then
have three major financial, institutions to help promote economic development. We shall have the Export-Ir.iport bank that has had a long history of
useful irork in Latin America and whose activities are to be intensified*
We shall have the International Bank, in which we are partners, to help
finance basic resource development. We shall have an international finance
corporation in which we would work together to assist and encourage private
enterprise*
In the spirit of the resolution on private investment and taxation
adopted at the Caracas conference, the United States continues to explore
feasible measures to remove tax impediments to increased foreign investments o The Administration and the Congress, as well as numerous private
groups in the united States, have given the matter intensive studyc This
has disclosed the complexity of the problems involved. In the light of
this experience, the Administration will again submit to the Congress
proposals with respect to the reduction of taxation of foreign income along
the general lines recommended by the President last year. We trust these
proposals will find acceptance by the Congress.

- 9In addition, a large New York bank announced last week that it proposes
to form a multi-million dollar export financing company* The Export-Import
Bank will also participate in this new venture. This enterprise will add
further to the supplies of medium term credit available to Latin American
importers of capital goods.
In the field of economic development, of course, the International Bank
has a primary role to play in helping to promote the economic growth of
the American republics* Most of the countries represented here were founding
fathers of the International Bank. Your countries and my own participated
in its establishment and we have contributed importantly to its personnel
and capital. The International Bank is our common institution* It was
established to carry the major burden of financing reconstruction and development loans at a governmental level. While the International Bank in
the early post-war years was primarily concerned with reconstruction, it
has accelerated the tempo of its operations and has, more recently, concentrated its major efforts on economic development. The International Bank
has financed a steady succession of high priority development projects in
Latin America* The total now exceeds $5*00,000,000 for the last five years*
Its first development loan was in Latin America, and today its investment in
this hemisphere is greater than in any other developing area. Its loans
have been made primarily for basic facilities and public works on which
further fruitful investment depends: for electric power, for transportation,
and for communication facilities. The loans of the International Bank are
important not only in themselves but in their secondary effects. Electric
power installations, new road and communication systems, new port facilities,
all ha ve encouraged new industries and lowered costs. Development is a
cumulative process, setting in motion innumerable individual efforts with
multiplying effect*
lix his report to the conference, Eugene Black, President of the Bank,
states:
"It is my personal judgment that, given a continuance of present trends
in Latin America, there is every reason to expect expanded lending activity
by the bank in that area during the period which lies ahead. The bank has
the resources to do so and it has the will to do so* The extent to which
it may be able to translate its will into action depends largely on
conditions within the control of the Latin American countries themselves."
At the meeting of the Board of Governors of the International Bank
last September, representatives from many of the American republics
strongly urged support for the establishment of an international finance
corporation to encourage private investment. The subject has been under
study for several years.

- 8v> U v/

One of the things which our governments must do to encourage free
enterprise is to insure that those projects necessary for economic development, but for which private capital is not reasonably available, are
adequately supported by public investment* We view this as a necessary
support to an economy which relies principally upon private enterprise as
supplementing and encouraging, rather than as displacing free enterprise.
I am sure that each government will shoulder as much of their burden as
it reasonably can, but we agree with you that substantial foreign lending
will be necessary if we are to achieve our goals in this hemisphere» We
shall do our part generously and loyally in meeting that need*
To that end we have reviewed the whole scope of our public lending
policies and have arrived at certain changes which we consider significant.
The first relates to the United States Export-Import Bank whose
activities are to be intensified and expanded.
This past summer, the Congress of the United States by specific legislation increased the lending authority of the bank from $!*§• billion to
$$ billion, in anticipation of its increased lending activity. In his
report to the Senate on this legislation, Senator Capehart, Chairman of the
Banking and Currency Committee, stated:
"The Export-Import Bank has played an important role in our foreign
economic policy and must continue to do so on an activated scale* Promotion
of trade among the free nations of the world , and in particular, with the
nations of the western hemisphere, is of utmost importance to the common
welfare, the common defense, and the solidarity of the free world."
Within the last few months the Export-Import Bank has authorized loans
of $130 million to nations in this hemisphere and other important loans are
under consideration. The loans which have been authorized will help two
important Latin American cities develop municipal waterwork systems and will
make possible the development of one of the world's largest copper deposits*
The bank has made loans to finance the sale in Latin America of machine
tools, of aircraft, of electric equipment, of textile equipment, and of
wheat. It has facilitated the development of sulphur production* The range
of Its activities has been as wide and varied as the production process
itself, from the extraction of basic materials to the fabrication of complex
industrial products. Since Its organization the Export-Import Bank has
authorized loans in excess of $2 and l/k billion to Latin America.
Within the past few weeks, the Export-Import Bank has opened up new
sources of credit for the countries of Latin America that wish to import
equipment from the United States, With the assistance of lines of credit
from the Export-Import Bank, United States exporters will be able to offer
medium term credit on equipment of a productive nature. This program will
be in addition to long-term capital and should help to accelerate the flow
of trade and ease temporary credit problems*

- 7-

304

I think that every one of us. here can agree that in t M ^ field ©nr
greatest ©pporfciiiiity' §nd our greatest respggisifri 1 -i •fay lies in creating in our
several countries those conditions which will give ^XJMBM
access -to the
great reserves of private Investment capital that are available tfaroagliosi't
the "sorld, S ^ reason is dfcwihm&m The aggregate amount of pinnate capital
that is awailable tocfey in your countries ^ in Mine5 and in the rest of the
worlil is reny times greater than any that we as .govsrspents could possibly
provide, BCOIMMSIC development in those countries w M c h have successfully
established access to the world's supplies of private capital is gnjiy alsad
with a rapidity that Is astonishing.
"fe all recognise that the sove^nfc of private capital cannot he f orcedj
that- private investors of all nationalities enter only where the circumstances are attractive, So numerous are the investment op^Msrtumities
thronghoet the free world. tod^F ttet he Mho seeks in^estsent capital inst
cosspete for it. But here again, the position of I^-tin -i^erica is privileged
ami fortunate, Thst^L^bcsmt your countries there are challenging and.
sttracrtiwe oppssrteiiitles for j^w inyestsents such as are £omsi only in young
and rapidly developing economies. Theselfactors give yon very real
advantages in competing for invests^*!* capital,
Tfc Is easy to iindersifcaiidj therefore, ifi^ the African states whose
govern^nts l^ve established those conditions vhich. have always proven
attractive to private investors everywhere in the world, have esperiei^ed
little difficulty in finding aj^sls supplies of cai*Ita.l5 both dosestlc and
foreign, This s&s tse^i deiionstralied so drai^atleaily that there can be no
longer any doubt hat that in this favored area of tte norld.^ A e r e natore has
done its part so ai&l~l3 each, government can^ if It will 3 attract a voline of
private isf'sstsent that Hill eo-Epsre most favorably with, that of any other
area of the ^>rld,

KJ U O

- 6We have also made marked progress in freeing imports into the United
States from unnecessary and cumbersome customs requirements. Our Congress .
passed customs simplification acts in 19$3 and again in 19$k* The first
authorized the Treasury to eliminate ma.ny technical requ5.rern.ents which were
a burden on imports. The act passed this year continued this program and
also directed the Tariff Commission to undertake a study of our complicated tariff classification structure with a view to its clarification.
These Congressional steps have been accompanied by an intensive
management i.iprovement program and by administrative simplification within
the fr-mework of existing law, both contributing to speedier customs
action, Je are continuing our efforts along these lines and plan to submit
to the next Congress further legislative proposals consistent with the
President's program of last March, A3 an example of the progress we are
making, just a few weeks ago we announced a further relaxation of requirements
for consular invoices — an action made possible by the 19$3 simplification
act.
The problem of international trade is closely related to that of
prices, we are aware of your intense and very understandable interest in
this problem as it relates to the prices for your products sold in world
markets, we share that interest, net only because of the importance to you
of adequate and stable prices, but also because our own producers suffer
when the prices of their exports fluctuate widely*
Our experience convinces us that if we as governments follow policies
which will give our producers everywhere maximum assurance that consumption
of their products will enjoy a steady and healthy growth and that their
access to international markets will be facilitated, then we will have
gone far toward solving this basic problem of prices which so concerns us all.
The subject of financing for economic development is one of the most
important which we shall consider. My government has devoted much study
to Its policies in this field and within the framework of the general •
principles to which I have referred, has reached certain decisions of whose
nature you are already aware and whose effect we believe will prove to be
far reaching,
When we speak of the great need for economic development financing in
this hemisphere, what we are really saying is that throughout our countries
there are profitable and attractive opportunities for the establishment of
productive enterprises that will provide steady employment to our people5
that will provide more of the goods and services which we need for higher
standards of living and that will diversify our economies. These opportunities cannot be converted into realities without capital, technical
knowledge and experience. As governments, we owe it to our people to
promote those conditions which will help make available the capital and
technical knowledge required.

-5 W Lr «_

The other is our belief that we as governments should reduce to a
minimum the scope and the duration of our own intervention in the fields
of commerce and industry. We-best serve our people when we encourage
them to produce the goods and services required for our progress, when we
stimulate them to bring new regions and new resources into productive use,
rather than when we compete with them or otherwise take over the functions
of private enterprise. Government intervention deprives the people of the
full benefits of their earnings. Experience has demonstrated that almost
without exception, in my own country and elsewhere, such intervention
lowers production and raises costs.
We shall support and defend the right of every state to define its
own economic course. Our own belief in the principles I have stated
derives from the fact that wherever they have been applied in the Americas
and elsewhere in the world they have brought improvement in the lives of
our peoples, improvement that can be measured in terms of lower costs,
greater per capita income, higher production, improvement that is visible
in new factories, industries and increased agricultural production and
intensified conversion of idle and undeveloped natural resources into jobs
and usable wealth. These are the marks of vigorous, expanding and
self-reliant economies. These are the economic ends that we pursue.
The detailed discussion of each agenda item is the function of our
committees, I would like, however, to say a word or two regarding our
views on some of the more vital ones.
The first is international trade. We intend to the utmost of our
ability to maintain a strong, healthy economy in the United States, This
will insure a growing volume of trade with your countries at a steadily
increasing level of demand. This will help sustain a high level of demand
for the worlds goods and so foster trade on a mutually beneficial basis,
Viy government is convinced that a strong, stable and expanding international trade is the best single guarantee of economic strength in our
hemisphere,
We are happy to see that our trade with each other is a most important
and growing factor in the international commerce of every American state.
It is in the interest of each of us that this wholesome interchange be
strengthened and expanded. For your economic development you count heavily
upon markets in the United States for your products, we value just as highly
the strong markets which you afford for our own agricultural and manufactured exports. We hope to see our inter-American trade which has
increased so greatly in recent years, further expanded, and the markets
available to producers in all our countries strengthened by the gradual
elimination of those artificial barriers that hinder access to them. Such
a trade policy will increase mutually beneficial trade. This emphasis on
expanding trade opportunities continues to be a fundamental part of
president Eisenhower's foreign economic program, which it is his announced
intention to press in the forthcoming session of the Congress in January.
Our tariffs on imports from Latin America are low, Tw0-thirds of all
our imports from this area are pn the free list and tariffs on the remaining
third are among the lowest in the world.

-u -

301

I believe that we are capable of putting into words here at this
meeting just what it is that our people would have us accomplish, and I
believe that .we can adopt that definition as our* goal. It seems to us
that the men and women of the amerlcas, living as they do among our mountains,
on our plains, and along our sea coasts are united and clear in their
aspirations. They do not ask the impossible, but they do demand of us,
who as government officials are their servants, that we promote those
conditions which will give maximum assurance that everywhere in our
Americas man has an opportunity to better himself, give his children even
greater opportunities — and enjoy meanwhile those freedoms which we have
achieved in the Americas and l/foich are denied, to so many millions elsewhere in the world,
I believe that we must face another problem in which our people are
vitally interested. All of us are exposed to an insidious disease that
stealthily robs us of our strength. It is the evil of inflation which
makes the prices of food, of clothing, of all the necessities of life
climb upward in a grim spiral which again and again snatches away the
benefits of progress.
Our goal must be two-fold — to unite our efforts to achieve the kind
of economic development that means higher living standards for our people,
and to take those wise and prudent measures which will avoid the evil of
inflation. If here we make progress toward these goals, we shall have
earned the gratitude of our people.
This is a goal that is achievable in the Americas. God has endowed
this hemisphere with abundant and varied natural resources, with vast and
fertile lands that are capable of affording an ever better life to our
rapidly multiplying peoples there is peace throughout our hemisphere. In
a troubled world ours is a situation so privileged, so favorable that it
becomes our duty to examine critically the responsibilities that must
accompany such advantages. Each of us singly and all of us jointly must
strive to accomplish those things which will best and most effectively
employ these lands and those resources to benefit our peoples,
Our agenda is admirably fashioned to help us appraise not only our
place today on the road which has already brought us so far toward our
goal, but also the measures which we can take jointly and severally to
hasten our progress on that road. It is our conviction that to accomplish
this purpose two basic principles should underlie all our thinking. The
first is our belief that the road which will lead most surely and most
directly to the goals which we seek is that of the vigorous free enterprise
system. This system in its modern form builds new industries, new enterprises, and opens new areas to development, -^nd it does all these things
without endangering those free institutions which are the very foundation
of the social and human progress which we have achieved in this hemisphere.

in-:
3None of us expects that we can at this meeting solve all of the economic
problems of a hemisphere. Eat we can confidently expect that 21 nations,
each motivated by a deep and brotherly interest in the welfare of every
other, can accomplish enough here to convince us all that our efforts were
richly rewarded, that our accomplishments justify our looking forward to
future meetings.
We all have our own ideas as to how the economic interests of the
entire continent could be promoted. We In the United States naturally
subscribe to those principles that in our own country have proved effective
in raising the living standards of the people and promoting the prosperity
of the nation. "LJe shall present them here with the same friendly frankness
with which we are ready to listen to the opinions of other delegations.
No one of us alone has the wisdom and experience necessary to solve
all our problems. That is what this conference is for; to exchange ideas,
to draw closer together, to arrive at a promising and practical basis for
cooperation and to pave the way for constructive steps toward our goals.
It is with that spirit that my country's delegation has come to this
conference. We look forward with great interest to hearing your views and
we welcome the opportunity to lay before you our ideas on the problems
that now engage our mutual attention.
But we shall never lose from sight the hemispheric interest, the
welfare of the American family of nations, the need to fortify the
inter-American system that past generations have bequeathed to us and that
it is our duty to pass on, intact and improved, to future generations.
when we shall have finished our work here it should be possible to speak
of this meeting in the same words as those used by a great American, the
Earon of Rio Branco in commenting on the Third Pan American conference,
when he said;
"Here concessions represent conquests if reason, amicable compromises
or compensations counselled by reciprocal interests."
We would first hope for a clear definition of the economic goals
toward which we shall press. We are profoundly aware that we are here not
so much .as representatives of political entities; instead w« ere here as
the spokesmen for 330 Trillions of men, women and children whose problems,
whose sufferings, ar.i who?e aspirations must constantly be present in our
thoughts and in our deliberations, when we speak of economic development,
international trade9 and the other subjects of our agenda, we must be
mindful that each is significant only In so far as it has a direct relation
to our peoples, to their families, to their homes, and to their work.

mm 2

•

L. w' v-/

"To this may I add my best wishes for the success of the conference and
warm personal greetings to each of its members."
Let me say that every member of the United States delegation shares
those convictions.
while this gathering was called in response to a resolution of the
Tenth Inter-.--nerican Conference held in Caracas earlier this year, this
conference is in reality the realization of a desire-ejqsressed repeatedly
throughout the rise and development of the inter-American system. It is the
desire to strengthen the continental economy so as to benefit all the nations
that share the hemisphere.
'That desire was first manifested in the *ct of the United States Congress
that convened the first pan American Conference in Washington 6$ years ago.
The same desire created the pan African Union, which has now become the
Organization of -American States. Today it finds expression in the statutes
of the Inter-American Economic and Social Council which proviie that it shall
^promote the economic and social welfare of the -nerican nations through
effective cooperation among them for the best utilization of their natural
resources,"
We are not gathered here, then, because of an emergency situation, nor
is this meeting an impulse of the moment. It is not an isolated or disconnected event in inter-American relations* but it is a new endeavor, one more
step in the search for economic cooperation and solidarity to.ard which your
countries and mine will continually strive*
if'ie have come here with the same spirit of cordial solidarity with which
the delegates of our nations arrived in this city of proverbial hospitality
for the Third pan American Conference. To describe it I shall borrow the
eloquence of a great fellow countryman, Elihu Root, at that time Secretary
of State, who said: "I bring from my country a special greeting to her
elder sisters in the civilization of America...there is not one of all our
countries that cannot benefit the others* there is not one that cannot
receive benefit from the others; there is not one that will not gain by the
prosperity, the peace and happiness of all".
And so it is today, our country is part of the inter-Aaerican system;
our Secretary of State* John Foster Dulles, recently affirmed that this is
the cornerstone of our foreign policy.
We take our places with pride in this association of otates which has
established the complete equality of all members, has consecrated the
principle of non-intervention, and has built a juridical system that has put
an end to war among American nations.
We have bound ourselves, moreover, by pacts that stipulate that an
attack on one American nation is an attack on all of them, and that any
threat to the political integrity of one is a threat to all.
Our presence here at this conference is a declaration that we also
consider economic solidarity as part of the common defense.

TREASURY DEPARTMENT
Washington
FOR RELEASE at 10 A.M. EST,
Tuesday, November 23, lQffo.

H-6^0

Remarks by George M. Humphrey, Secretary of the Treasury
of the United States,
at the Meeting of Ministers of Finance or Economy
at Rio De Janeiro, November 23, 19$k*
Mr. Chairman and Delegates;
I am happy to participate in this meeting of Ministers of Finance and
Economy* Many of us have met on other occasions, most recently at the
annual meetings of the International Bank and International Monetary Fund
two months ago* I am delighted to extend my acquaintance with you and to
meet with you here.
Just before leaving Washington we discussed with President Eisenhower
the views of the United States Delegation on the problems we shall discuss
here. He emphasized to us his deep interest in this historic meeting and
asked that we convey a personal message to our colleagues here. With your
kind permission I shall read it:
"I am very pleased to send greetings and best wishes to the meeting
of Ministers of Finance and Economy of the American family of nations,
convened in Rio De Janeiro, the capital of our great sister nation, Brazil.
I am happy to send this message through our Secretary of the Treasury,
Mr. Humphrey, who, as Chairman of the United States Delegation, speaks for
our nation and will authoritatively present our policies,
"I am confident that this conference will advance still further the
unique relationships which have developed among the peoples and nations of
this hemisphere. As those relationships evolved and grew, the people of
the United States learned to call their own attitude toward their sister
nations the policy of the good neighbor. Today, the bonds which unite us
as sovereign equals who are working side by side for the betterment of all
of us - nations and citizens - have elevated this neighborly relationship
to one of genuine partnership.
"No longer is it sufficient to maintain the mutual respect and
cordiality of neighbors, useful and pleasant as that is. In the world of
today, the well-being and the economic development - as well as the
security - of ail peace-loving nations are so closely interrelated that
we must be partners. If this is true in the larger context, it is
especially true among the American republics where we share the same
traditions and many of the same favorable circumstances for progress.
"As the conference discusses a wide variety of measures for economic
and financial cooperation in this hemisphere, and endorses those that are
sound and durable, I earnestly hope that the meeting as a whole may join
with the delegation of the United States in common dedication to the policy
of the good partner.

i TELEGRAM

Department

of State

UNCLASSIFIED
Control
Rec'd:

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1 0 v N O V E M B E R ,a^~ ( S E C T I O N pNjj,*yf X I K E )

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OLLOWS:

OCB
USIA REMARKS BY GEORGE M. HUMPHREY, SECRETARY OF THE TREASURY OF THE
UNITED STATES, AT THE MEETING OF MINISTERS OF FINANCE OR ECONOMY
CIA
AT
RIO DE JANEIRO, NOV. 23, 1954*
OSD
ARMY MR. CHAIRMAN AND DELEGATES5
FOA
I AM HAPPY TO PARTICIPATE IN THIS MEETING OF MINISTERS OF £INANCE
AND ECONOMY* MANY OF US HAVE MET ON OTHER OCCASIONS, MOST RECENTLY
AT THE ANNUAL MEETINGS OF THE INTERNATIONAL BANK AND INTERNATIONAL
MONETARY FUND TWO MONTHS AGO* F A M DELIGHTED"TO EXTEND^MY ACQUAINTANCE WITH^YOU AND TO MEET WITH YOU HERE0
JUST BEFORE LEAVING WASHINGTON WE DISCUSSED WITH ^RESIDENT
^EISENHOWER THE VIEWS OF THE UNITED^gTATES DELEGATION ON THE
PROBLEMS K SHALL DISCUSS HERE* HE EMPHASIZED TO US HIS DEEP
INTEREST IN THIS HISTORIC MEETING AND ASKED THAT WE CONVEY A
PERSONAL MESSAGE TO OUR COLLEAGUES HERE0 WITH YOUR KIND
PERMISSION I SHALL READ ITS
"I AM VERY PLEASED TO SEND GREETINGS AND BEST WISHES TO THE
MEETING OF MINISTERS OF ^INANCE AND ECONOMY OF THE AMERICAN
FAMILY OF NATIONS, CONVENED IN .RIO DE JANEIRO, THE CAPITAL OF OUR
GREAT SISTER NATION, BRAZIL* I AM HAPPT"TO SEND THIS MESSAGE
THROUGH OUR SECRET ARY^OF THE £REASURY, JJR. HUMPHREY, WHO, AS
CHAIRMAN OF THE UNITED STATESTjELEGATIOfT, SPEAKS FOR OUR' NATION

O^o

AND WILL
UNCLASSIFIED

REPRODUCTION FROM THIS
COPY, IF CLASSIFIED, IS
PROHIBITED

UN CLASSIFIED—

AND WILL AUTHORITATIVELY PRESENT OUR POLICIES*
"I AM CONFIDENT THAT THIS CONFERENCE WILL ADVANCE STILL FURTHER
THE UNIQUE RELATIONSHIPS WHICH HAVE DEVELOPED AMONG THE PEOPLES
AND NATIONS OF THIS HEMISPHERE* AS THOSE RELATIONSHIPS EVOLVED
AND GREW, THE PEOPLE OF THE yNITED .§3LATES LEARNED TO CALL THEIR
OWN ATTITUDE TOWARD THEIR SISTER NATIONS THE POLICY OF THE GOOD
NEIGHBOR. TODAY, THE BONDS WHICH UNITE US AS SOVEREIGN EQUALS
WHO ARE WORKING SIDE BY SIDE FOR THE BETTERMENT OF ALL OF US NATIONS AND CITIZENS - HAVE ELEVATED THIS NEIGHBORLY RELATIONSHIP
TO ONE OF GENUINE PARTNERSHIP.
"NO LONGER IS IT SUFFICIENT TO MAINTAIN THE MUTUAL RESPECT AND
CORDIALITY OF NEIGHBORS, USEFUL AND PLEASANT A3 THAT IS. IN THE
WOI^D OF TODAY, THE WELL-BEING AND THE ECONOMIC DEVELOPMENT AS WELL AS THE SECURITY - OF ALL PEACE-LOVING NATIONS ARE SO
CLOSELY INTERRELATED THAT WE MUST BE PARTNERS. IF THIS IS TRUE IN
THE LARGER CONTEXT, IT IS ESPECIALLY TRUE AMONG THE ^ERICAN
REPUBLICS WHERE WE SHARE THE SAME TRADITIONS AND M A U Y OF THE
SAME FAVORABLE CIRCUMSTANCES FOR PROGRESSo
"AS THE CONFERENCE DISCUSSES A WIDE VARIETY OF MEASURES FOR
ECONOMIC AND FINANCIAL COOPERATION IN THIS HEMISPHERE, AND ENDORSES THOSE THAT ARE SOUND AND DURABLE, I EARNESTLY HOPE THAT
THE MEETING AS A WHOLE MAY JOIN WITH THE DELEGATION OF THE IINITED
STATES IN COMMON DEDICATION TO THE POLICY OF THE GOOD PARTNER.

"TO THIS MAY I ADD MY BEST WISHES FOR THE SUCCESS OF THE CONFERENCE
AND WARM PERSONAL GREETINGS TO EACH OF ITS MEMBERS.*
LET ME SAY THAT EVERY MEMBER OF THE UNITED STATES DELEGATION
SHARES THOSE CONVICTIONSo
^
^
WHILE THIS GATHERING WAS CALLED IN RESPONSE TO A RESOLUTION OF
THE JENTH I£JTER-AMERICAN (JgNFERENCE HELD IN ^CARACAS EARLIER THIS
YEARj^THIS^CONFE^ENCE IS IN REALITY THE REALIZATION OF A DESIRE
EXPRESSED REPEATEDLY THROUGHOUT THE RISE AND DEVELOPMENT OF
THE INTER-AMERICAN SYSTEM. IT IS THE DESIRE TO STRENGTHEN THE
CONTINENTAL ECONOMY SO AS TO BENEFIT ALL THE NATIONS THAT SHARE
THE HEMISPHERE.
L0Cj

TgA%-4)ECIRE

—U£J.CLASCIFIED>

UN CLAS^Fii^-*"-

THAT DESIRE WAS FIRST MANIFESTED IN THE £CT OF THE JLINITED STATES
^CONGRESS THAT CONVENED THE FIRST G0 AMERICAN GGNFETOCNCE IN
WASHINGTON 65 YEARS AGO. THE SAME^DESTRE CREATED THE^AN ^IERICAN
JJNIONJWHICH HAS NOW BECOME THE ORGANIZATION OF AMERICAN § £ A T E S .
TODAY IT FINDS EXPRESSION IN THT STATUTES OF TffiC JUjJTER-^JtfERICAN
JCONOMIC AND GOCIAL COUNCIL WHICH PROVIDE THAT IT^HALLT"
PROMOTE THE ECONOMICAND SOCIAL WELFARE OF THE AMERICAN NATIONS
THROUGH EFFECTIVE COOPERATION AMONG THEM FOR THFBEST UTILIZATION
OF THEIR NATURAL RESOURCES."
HOOVER
"-AD/Jg —

UNCLASSIFIED

mmmimmiw^

Departmmrof State

'^ UNCLASSIFIED
Action H388ffot

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QUIJANDINHA
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TO: ^enrtetry of State
NO:

10. NOVEMBER 22^CpCTI0N TWO OF NIKE)

.Niaer*

yHzSlTTmim^^
WE ARE NOT GATHERED HERE, THEN, BECAUSE OF AN EMERGENCY
SITUATION, NOR IS THIS MEETING AN IMPULSE OF THE MOMENT.
IT IS N 0 T AN
ISOLATED OR DISCONNECTED EVENT IN INTER-j^ERICAN
RELATIONS) BUT IT IS A NEW ENDEAVOR, ONE MORE STEP IN*THE
SEARCH FOR ECONOMIC COOPERATION AND SOLIDARITY TOWARD WHICH
YOUR COUNTRIES AND MINE WILL CONTINUALLY STRIVE.

WE HAVE COME HERE WITH THE SAME SPIRIT OF CORDIAL SOLIDARITY WITH
WHICH THE DELEGATES OF OUR NATIONS ARRIVED IN THIS CITY OF
PROVERBIAL HOSPITALITY FOR THE JHIRD |AN AMERICAN CONFERENCE.
TO DESCRIBE IT I SHALL BORROW TnT ELOQUENCE OF A GifEAT FELLOW
COUNTRYMAN, ELIHU ROOT, AT THAT TIME SECRETARY OF STATE, WHO
SAID: "I BRIt?G FROM MY COUNTRY A SPECfAL GREETING TO HER ELDER
SISTERS IN THE CIVILIZATION OF AMERICA.ooTHERE IS NOT ONE OF ALL
OUR COUNTRIES THAT CANNOT BENEFIT THE OTHERS) THERE IS NC: ONE
THAT CANNOT RECEIVE BENEFIT FROM THE OTHERS) THERE IS NOT ONE
THAT WILL NOT GAIN BY THE PROSPERITY, THE PEACE AND HAPPINESS
OF ALL".
AND SO IT IS TODAYo OUR COUNTRY IS PART OF THE INTER-A^ERICANSYSTEM) OUR SECRETARY OF STATE, JOHN FOSTER DULLES, RECENTLY
AFFIRMED THATTHIS IS THECORNERSfONE^QF OUlfFOREIGN POLICY.
W. TAKE OUR PLACES WITH PRIDE IN THIS ASSOCIATION OS^STATES WHICH
HAS ESTABLISHED THE COMPLETE EQUALITY OF ALL MEMBERS,HAS CONSECRATED
THE PRINCIPLE OF NON-INTERVENTION, AND HAS BUILT A JURIDICAL
SYSTEM THAT HAS PUT AN END TO WAR AMONG AMERICAN NATIONS.
WE HAVE BOUND OURSELVES, MOREOVER, BY PACTS THAT STIPULATE THAT
F0A

AN-TtfTACK
REP«OtJtlCjS)N FROM THIS
tOPY,.tf'CLA§£lF«0r IS
PRQliiWffD

AN ATTACK ON ONE AMERICAN NATION IS AN ATTACK ON ALL OF THEM,
AND THAT ANY THREAT TO THE POLITICAL INTEGRITY OF ONE/ IS A THREAT
TO ALL.
'
OUR PRESENCE HERE AT THIS CONFERENCE IS A DECLARATION THAT WE
ALSO CONSIDER ECONOMIC SOLIDARITY AS PART OF THE COMMON LEFENSE.
NONE OF US EXPECTS THAT WE CAN AT THIS MEETING SOLVE ALL OF THE
ECONOMIC PROBfolS OF A HEMISPHEREo BUT WE CAN CONFIDENTLY EXPECT
THAT 21 NATIONS, EACH MOTIVATED BY A DEEP AND BROTHERLY INTEREST
IN THE-WELFARE OF EVERY OTHERjCAN ACCOMPLISH ENOUGH HERE TO CONVINCE
US ALL THAT OUR EFFORTS WERE RICHLY REWARDED, THAT OUR
ACCOMPLISHMENTS JUSTIFY OUR LOOKING FORWARD TO FUTURE MEETINGS*
WE ALL HAVE OUR OWN IDEAS AS TO HOW THE ECONOMIC INTERESTS OF
THE ENTIRE CONTINENT COULD BE PROMOTED*
WE IN THE4JNITED^TATES NATURALLY SUBSCRIBE TO THOSE PRINCIPLES
THAT IN OUR OWN COUNTRY HAVE PROVED EFFECTIVE IN RAISING THE LIVING
STANDARDS OF THE PEOPLE AND PROMOTING THE PROSPERITY OF THE NATION.
WE SHALL PRESENT THEM HERE WITH THE SAME FRIENDLY FRANKNESS WITH
WHICH WE ARE READY TO LISTEN TO THE OPINIONS OF OTHER DELEGATIONS*,
NO ONE OF US ALONE HAS THE WISDOM AND EXPERIENCE NECESSARY TO
SOLVE ALL OUR PROBLEMS* THAT IS WHAT THIS CONFERENCE IS FOR)
TO EXCHANGE IDEAS, TO DRAW CLOSER TOGETHER, TO ARRIVE AT A PROMISING
AND PRACTICAL BASIS FOR COOPERATION AND TO PAVE THE WAY FOR CONSTRUCTIVE STEPS TOWARD OUR GOALS.
IT IS WITH THAT SPIRIT THAT MY COUNTRY'S DELEGATION HAS COME TO
THIS CONFERENCE. WE LOOK FORWARD WITH GREAT INTEREST TO HEARING
YOUR VIEWS AND WE WELCOME THE OPPORTUNITY TO LAY BEFORE YOU OUR
IDEAS ON THE PROBLEMS THAT NOW ENGAGE OUR MUTUAL ATTENTION.

/"* r\ ~3

^^JSJ£US»»»-^

INCOMING TELEGRAM
Action
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Department

of State

^^ UNC L A SSIFI ED
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^
_^€cntroT: "9712'
Rec d:
^^
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^^000^^
'
NOVEMBER 22,-1954
R?0M: -QUITANDINHA
L ^ ^ ^
,- 9S30PM

TO: Secretary of State
N0^"~~H7NOVEMBER' ^22,f(S

PA#S**»£A^«^^
BUT WE SHALL NEVER LOSE FROM SIGHT THE HEMISPHERIC INTEREST,
LI
THE WELFARE OF THE^MERICAN FAMILY OF NATIONS, THE NEED TO
FORTIFY THE INTERTAMERICAN SYSTEM THAT PAST GENERATIONS HAVE
BEQUEATHED TO US AND THAT IT IS OUR DUTY TO PASS ON, INTACT AND
Ojl
IMPROVED, TO FUTURE GENERATIONS* WHEN WE SHALL HAVE FINISHED OUR
OSD
WORK HERE IT SHOULD BE POSSIBLE TO SPEAK OF THIS MEETING IN THE
ARMY SAME WORDS AS THOSE USED BY A GREAT^AMERICAN, THE^ARON OF RIO
T?OA < ? R A N C 0 I N COMMENTING ON THE THIRD PAN AMERICAN CONFERENCE, ¥HEN
?
*m
RE SAIDS
**
^
^
"HERE CONCESSIONS REPRESENT CONQUESTS ft REASON, AMICABLE COMPROMISES OR COMPENSATIONS COUNSELLED BY RECIPROCAL INTERESTS.w
WE WOULD FIRST HOPE FOR A CLEAR DEFINITION OF THE ECONOMIC GOALS
TOWARD WHICH WE SHALL PRESS. WE ARE PROFOUNDLY AWARE THAT WE
ARE HERE NOT SO MUCH AS REPRESENTATIVES OF POLITICAL ENTITIES)
INSTEAD K ARE HERE AS THE SPOKESMEN FOR 330 MILLIONS OF MEN,
WOMEN AND CHILDREN WHOSE PROBLEMS, WHOSE SUFFERINGS, AND WHOSE
ASPIRATIONS MUST CONSTANTLY BE PRESENT IN OUR THOUGHTS AND IN
OUR DELIBERATIONS,, WHEN WE SPEAK OF ECONOMIC DEVELOPMENT,
INTERNATIONAL TRADE, AND THE OTHER SUBJECTS OF OUR AGENDA, WE
MUST BE MINDFUL THAT EACH IS SIGNIFICANT ONLY IN SO FAR AS IT
HAS A DIRECT RELATION TO OUR PEOPLES, TO THEIR FAMILIES, TO
THEIR HOMES, AND TO THEIR WORK*
I BELIEVE THAT WE ARE CAPABLE OF PUTTING INTO WORDS HERE AT THIS
MEETING JUST WHAT IT IS THAT OUR PEOPLE WOULD HAVE US ACCOMPLISH,
AND I BELIEVE THAT WE CAN ADOPT THAT DEFINITION AS OUR GOALo
IT SEEMS TO US THAT THE MEN AND WOMEN OF THE AMERICAS, LIVING
mA^<~ AS-^H£.Y
PROHI^ED

-r-WWiffWttfFTED
*2—NWW&gft"w227''^^

•*mM&f'*^'

AS THEY DO AMONG OUR MOUNTAINS, ON OUR PLAINS, AND ALONG OUR
SEA COASTS ARE UNITED AND CLEAR IN THEIR.ASPIRATIONS. THEY DO
NOT ASK THE IMPOSSIBLE, BUT THEY DO DEMAND OF US, WHO AS GOVERNMENT OFFICIALS ARE THEIR SERVANTS, THAT WE PROMOTE THOSE CONDITIONS WHICH WILL GIVE MAXIMUM ASSURANCE THAT EVERYWHERE IN OUR
vAMERICAS MAN HAS AN OPPORTUNITY TO BETTER HIMSEL^ GIVE HIS
CHILDREN EVEN GREATER OPPORTUNITIES^-- AND ENJOY MEANWHILE THOSE
FREEDOMS WHICH WE HAVE ACHIEVED IN THE^MERICAS AND WHICH ARE
DENIED TO SO MANY MILLIONS ELSEWHERE IN* THE WORLD.
I BELIEVE THAT WE MUST FACE ANOTHER PROBLEM IN WHICH OUR PEOPLE
ARE VITALLY INTERESTED. ALL OF US ARE EXPOSED TO AN INSIDIOUS
DISEASE THAT STEALTHILY ROBS US OF OUR STRENGH. IT IS THE EVIL
OF INFLATION WHICH MAKES THE PRICES OF FOOD, OF CLOTHING, OF
ALL THE NECESSITIES OF LIFE CLIMB UPWARD IN A GRIM SPIRAL WHICH
AGAIN AND AGAIN SNATCHES AWAY THE BENEFITS OF PROGRESS.
OUR GOAL MUST BE TWO-FOLD — TO UNITE OUR EFFORTS TO ACHIEVE THE
KIND OF ECONOMIC DEVELOPMENT THAT MEANS HIGHER LIVING STANDARDS
FOR OUR PEOPLE, AND TO TAKE THOSE WISE AND PRUDENT MEASURES WHICH
WILL AVOID THE EVIL OF INFLATION. IF HERE WE MAKE PROGRESS TOWARD
THESE GOALS, WE SHALL HAVE EARNED THE GRATITUDE OF OUR PEOPLE.
THIS IS A GOAL THAT IS ACHIEVABLE IN THE xAMERICASo GOD HAS
ENDOWED THIS HEMISPHERE WITH ABUNDANT AND VARIED NATURAL RESOURCES,
WITH VAST AND FERTILE LANDS THAT ARE CAPABLE OF AFFORDING AN EVER
BETTER LIFE TO'OUR RAPIDLY MULTIPLYING PEOPLES THERE IS PEACE
THROUGHOUT OUR HEMISPHERE. IN A TROUBLED WORLD OURS IS A
SITUATION SO PRIVILEGED, SO FAVORABLE THAT IT BECOMES OUR DUTY TO
EXAMINE CRITICALLY THE RESPONSIBILITIES THAT MUST ACCOMPANY SUCH '
ADVANTAGESo EACH OF US SINGLY AND ALL OF US JOINTLY MUST STRlVf
TO ACCOMPLISH THOSE THINGS WHICH WILL BEST AND MOST EFFECTIVELY
EMPLOY THESE LANDS AND THOSE RESOURCES TO BENEFIT OUR PEOPLESo
OUR AGENDA IS ADMIRABLY FASHIONED TO HELP US APPRAISE NOT ONLY
OUR PLACE TODAY ON THE ROAD WHICH HAS ALREADY BROUGHT US SO FAR
TOWARD OUR GOAL, BUT ALSO THE MEASURES WHICH WE CAN TAKE JOINTLY
AND SEVERALLY TO
H^UvER

fQZ

UNCLASSIFIED

JNUUIYIINU

itLtuKAM

Department

of State

UNCLASSIFIED
*> £,0 nt rojy... 9 7 4 g . <***•? - - -.,
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ec'd: NOVEMBER 23,1954
12:44-A«MV wr

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of State

1^,^^-^W""H
(SECTION FOUR OF NINE

«4*nr~~

HASTEN OUR PROGRESS ON THAT ROAD., IT IS OUR CONVICTION THAT TO
ACCOMPLISH THIS PURPOSE TWO BASIC PRINCIPLES SHOULD UNDERLIE ALL
OUR THINKING. THE FIRST IS OUR BELIEF THAT THE ROAD WHICH WILL
LEAD MOST SURELY'AND MOST DIRECTLY TO THE GOALS WHICH WE S£EK
to
IS THAT.OF THE VIGOROUS FREE ENTERPRISE SYSTEM. THIS SYSTEM
OCB
USIA IN ITS MODERN FORM BUILDS NEW INDUSTRIES. NEW ENTERPRISES,
AND OPENS NEW AREAS TO DEVELOPMENT.•AND IT DOES-ALL THESE THINGS
CIA
WITHOUT ENDANGERING THOSE FREE INSTITUTIONS WHICH ARE THE VERY
OSD
ARMY FOUNDATION OF THE SOCIAL AND HUMAN PROGRESS WHICH WE HAVE ACHIEVED
IN THIS HEMISPHERE.
FOA
Hit OTHER IS OUR BELIEF THAT WE AS GOVERNMENTS SHOULD REDUCE TO
A MINIMUM THE SCOPE AND THE DURATION OF OUR OWN INTERVENTION
IN THE FIELDS OF COMMERCE AND INDUSTRY. WE BEST SERVE OUR PEOPLE
WHEN WE ENCOURAGE THEM TO PRODUCE THE GOODS-AND SERVICES REQUIRED
FOR OUR PROGRESS, WHEN WE STIMULATE THEM TO BRING NEW REGIONS'
AND NEW RESOURCES INTO PRODUCTIVE USE, RATHER THAN WHEN WE COMPETE
WITH THEM OR OTHERWISE TAKE OVER THE FUNCTIONS OF PRIVATE
ENTERPRISE. GOVERNMENT INTERVENTION DEPRIVES THE PfeOPLE OF THE
FULL BENEFITS OF THEIR EARNINGS. EXPERIENCE HAS DEMONSTRATED
™ A T ALMOST WITHOUT EXCEPTION, IN MY OWN COUNTRY AND ELSEWHERE,
SUCH INTERVENTION LOWERS PRODUCTION AND RAISES COSTS*
*
WE SHALL SUPPORT AND DEFEND THE RIGHT OF EVERY STATE TO DEFINE
^ A r ? n N J n ? ^ F H C 0 U R S E « 0U * OWN BELIEF IN THE PRINCIPLES I HAVE
rlklur ? S I V E S F R 0 M T H E F A C T ™ A T WHEREVER THEY HAVE BEEN APPLIED
T M J n u > ^ S 5 I C A b A N D ELS E^HERE IN THE WORLD THEY HAVE BROUGHT
IMPROVEMENT IN THE LIVES OF OUR PEOPLES, IMPROVEMENT THAT CAN BE
2 ? ^ E 2 D i S „ S ? M K S ° F L 0 ¥ E S G 0 S T S > G R E A T E R P E R C A ^ A INCOME,
?^T^??? D ^n I ?S; f t l^52 V E M E M T ™ A T I S V I S I B L E IN NEW FACTORIES,
WE-BETftffcE©
P n P m r B ^ M £ P I N C R E A S E D AGRICULTURAL
PRODUCTION AND INTENSIFIED
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INTO JOBS
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'«&=--!-0T~TO^

OF NINE)

TOE DETAILED DISUCSSION OF EACH AGENDA ITEM IS THE FUNCTION
OF OUR COMMITTEES0 I WOULD LIKE, HOWEVER, TO SAY A WORD OR TWO
REGARDING OUR VIEWS ON SOME OF THE MORE VITAL ONES* ,
THE FIRST l£ INTERNATIONAL TRADE. WE INTEND^TO THE UTMOST OF OUR
ABILITY TO.MAINTAIN A^STRQNG, HEALTHY ECONOMY IN THE^UNITED
STATES. THIS WILL INSURE A GROWING VOLUME OF TRADE WITH - YOUR
COUNTRIES AT A STEADILY INCREASING LEVEL OF DEMAND. THIS WILL
HELP SUSTAIN A HIGH LEVEL-OF DEMAND FOR THE WORLDS GOODS AND SO
FOSTER TRADE ON A-MUTUALLY BENEFICIAL BASIS9 MY GOVERNMENT IS
CONVINCED THAT A STRONG, STABLE AND EXPANDING INTERNATIONAL TRADE
IS THE BEST SINGLE GUARANTEE OF ECONOMIC STRENGTH•IN OUR.HEMISPHERE,
WE, ARE HAPPY TO SEE THAT OUR TRADE WITH EACH OTHER IS A MOST
IMPORTANT AND GROWING FACTOR IN THE INTERNATIONAL COMMERCE OF
EVERY^MERICAN STATE. IT IS IN THE INTEREST OF EACH OF US THAT
THIS WHOLESOME'INTERCHANGEBE STRENGTHENED AND EXPANJEDEB*
FOR YOUR ECONOMIC DEVELOPMENT YOU COUNT HEAVILY UPON MARKETS
IN THE UNITED STATES FOR YOUR PRODUCTS0 WE VALUE JUST AS HIGHLY
THE STRONG
H-OWETT~
CH.

UNCLASSIFIED

^INCOMING TELEGRAM

Department

of State

UNCLASSIFIED ^ _ _
> ^ -*~ J2efc*d: NOVEMBER J>2,^1954
FROMi^UITANDINHA'' ^^ d^^^^^ i0:10 PM - *
TO:

Secretary of State

S-TR£*STO¥~*^^^
MARKETS WHICH YOU AFFORD FOR OUR OWN AGRICULTURAL AND
MANUFACTURED EXPORTS. WE HOPE TO SEE OUR INTER-.AMERICAN TRADE
WHICH HAS INCREASED SO GREATLY IN RECENT YEARSJTURTHER EXPANDED,
AND THE MARKETS AVAILABLE TO PRODUCERS IN ALL OUR COUNTRIES
OCB
STRENGTHENED BY THE GRADUAL ELIMINATION OF THOSE ARTIFICIAL
USIA
BARRIERS THAT HINDER ACCESS TO THEM. SUCH A TRADE POLICY WILL
CIA
INCREASE MUTUALLY BENEFICIAL TRADE* THIS EMPHASIS ON EXPANDING
OSD
TRADE OPPORTUNITIES CONTINUES TO BE A FUNDAMENTAL PART OF PRESIDENT
ARMY EISENHOWER'S FOREIGN ECONOMIC PROGRAM, WHICH IT IS HIS ANNOUNCED
INTENTION TO PRESS IN THE FORTH COMING SESSION OF THE CONGRESS
FOA
IN JANUARY.
^
OUR TARIFFS ON IMPORTS FROL^JL ATI NUMERIC A ARE LOW. TWO-THIRDS
OF ALL OUR IMPORTS FROM THIS AREA ARE ON THE FREE LIST AND
TARIFFS ON THE .REMAINING THIRD ARE AMONG THE LOWEST IN THE WORLD.
WE HAVE ALSO MADE MARKED PROGRESS IN FREEING IMPORTS INTO THE
UNITED^TATES FROM UNNECESSARY AND CUMBERSOME CUSTOMS REQUIREMENTS.
*OUR<CONGRESS..PASSED CUSTOMS SIMPLIFICATION ACTS IN 1953 AND
AGAIN IN 1954. THE FIRST AUTHORIZED THE^REASURY TO ELIMINATE
MANY TECHNICAL REQUIREMENTS WHICH WERE A BURDEN ON IMPORTS*,
THE ACT PASSED THIS YEAR CONTINUED THIS PROGRAM AND ALSO DIRECTED
THE^JARIFF^COMMISSION TO UNDERTAKE A STUDY OF OUR COMPLICATED
TARIFF CLASSIFICATION STRUCTURE WITH A VIEW TO ITS CLARIFICATION.
THESEACONGRESSIONAL STEPS HAVE BEEN ACCOMPANIED BY AN INTENSIVE
MANAGEMENT IMPROVEMENT PROGRAM AND BY ADMINISTRATIVE SIMPLIFICATION
WITHIN THE FRAMEWORK OF EXISTING LAW, BOTH CONTRIBUTING TO SPEEDIER
CUSTOMS ACTION. WE ARE CONTINUING OUR EFFORTS ALONG THESE LINES
AND PLAN TO SUBMIT TO THE NEXTX\CONGRESS FURTHER LEGISLATIVE
>^ v.- 'S PROGRAM OF TO-fmmr
PROPOSALS CONSISTENT WITH THE^PRESIDENT
LAST*MARCH.
AS AN EXAMPLE OF THE PROGRESS WE ARE MAKING, JUST A FEW WEEKS
AGO WE ANNOUNCED A FURTHER
RELAXATION OF REQUIREMENTS co^^^Sls H,S
^CLASSIFIED*
FOR CONSULAR INVOICES — 5—TR0HIBITED
AN ACTION MADE POSSIBLE BY THE 1953
SIMPLIFICATION ACT.

C^J^J 051 ^^
THE PROBLEM OF INTERNATIONAL TRADE IS CLOSELY RELATED TO THAT OF
PRICES* WE ARE AWARE OF * YOUR INTENSE AND VERY UNDERSTANDABLE
INTEREST IN THIS PROBLEM AS IT RELATES TO .TOE PRICES FOR•YOUft
PRODUCTS SOLD IN'WORLD MARKETSo WE SHARE THAT INTEREST, NOT ONLY
BECAUSE OF THE IMPORTANCE TO YOU OF ADEQUATE AND STABLE PRICES,
BUT ALSO BECAUSE OUR OWN PRODUCERS SUFFER WHEN THE PRICES OF THEIR
EXPORTS FLUCTUATE WIDELY. •
OUR EXPERIENCE CONVINCES US THAT IF WE AS GOVERNMENTS FOLLOW
POLICIES WHICH WILL GIVE OUR PRODUCERS EVERYWHERE MAXIMUM
ASSURANCE THAT CONSUMPTION OF THEIR PRODUCTS WILL ENJOY A STEADY
AND HEALTHY GROWTH AND THAT THEIR ACCESS TO INTERNATIONAL MARKETS
WILL BE FACILITATED, THEN WE WILL HAVE GONE FAR TOWARD SOLVING
THIS BASIC PROBLEM OF PRICES WHICH .SO CONCERNS US ALU
THE SUBJECT OF FINANCING FOR ECONOMIC DEVELOPMENT IS ONE OF THE
MOST IMPORTANT WHICH WE SHALL CONSIDER. MY GOVERNMENT HAS DEVOTED
MUCH STUDY TO ITS POLICIES IN THIS FIELD AND WITHIN THE FRAMEWORK
OF THE GENERAL PRINCIPLES TO WHICH I HAVE REFERRED, HAS REACHED
CERTAIN DECISIONS OF WHOSE NATURE YOU ARE ALREADY AWARE AND
WHOSE EFFECT WE BELIEVE WILL PROVE TO BE FAR REACHING.
WHEN ]fJE SPEAK OF THE GREAT NEED FOR ECONOMIC DEVELOPMENT
FINANCING IN THIS HEMISPHERE, WHAT WE ARE REALLY SAYING IS THAT
THROUGHOUT OUR COUNTRIES THERE ARE PROFITABLE AND ATTRACTIVE
OPPORTUNITIES FOR THE ESTABLISHMENT OF PRODUCTIVE ENTERPRISES
THAT WILL PROVIDE STEADY EMPLOYMENT TO OUR PEOPLE) THAT WILL
PROVIDE
K&Qffii;

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UNCLASSIFIED

IUUIYIINU

itLtBRAM

Department

of State

UNCLASSIFIED
Control: 9747' ^
Rec'd : jjOVEMBEg 25, 1954
^4~2Tt?Tu$.

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FR0,

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TO:

Sec.reta-r^of- State

G
NO:
10,/NOVEMBER 224 (SECTION SIX OF NINE)
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MORE OF THE GOODS AND SERVICES WHICH WE NEED FOR HIGHER STANDARDS
~.U0P
OF LIVING AND THAT WILL DIVERSIFY OUR ECONOMIES. THESE OPPORTUNITIES
,ND
CANNOT BE CONVERTED INTO- REALITIES WITHOUT CAPITAL, TECHNICAL
'OLI
KNOWLEDGE
AND EXPERIENCE. AS GOVERNMENTS, WE OWE IT
OCB
USIA TO OUR PEOPLE TO PROMOTE THOSE CONDITIONS WHICH WILL HELP MAKE
AVAILABLE THE CAPITAL AND TECHNICAL KNOWLEDGE REQUIRED.
CIA
OSD
ARMY I THINK THAT EVERY ONE OF US HERE CAN AGREE THAT IN THIS FIELD
OUR GREATEST OPPORTUNITY AND OUR GREATEST RESPONSIBILITY LIES
FOA
IN CREATING IN OUR SEVERAL COUNTRIES THOSE CONDITIONS WHICH WILL
GIVE MAXIMUM ACCESS TO THE GREAT RESERVES OF PRIVATE INVESTMENT
CAPITJpLTHAT ARE AVAILABLE THROUHOUT THE WORLD. THE REASON IS
OBVIOUS. THE AGGREGATE AMOUNT OF PRIVATE CAPITAL THAT IS AVAILABLE
TODAY IN YOUR COUNTRIES, IN MINE, AND IN THE REST OF THE WORLD IS
MANY TIMES GREATER THAN ANY THAT WE AS GOVERNMENTS COULD POSSIBLY
PROVIDE. ECONOMIC DEVELOPMENT IN THOSE COUNTRIES WHICH HAVE
SUCCESSFULLY ESTABLISHED ACCESS TO THE WORLD'S SUPPLIES OF PRIVATE
CAPITAL IS GOING AHEAD WITH A RAPIDITY THAT IS ASTONISHING.
WE ALL RECOGNIZE THAT THE MOVEMENT OF PRIVATE CAPITAL CANNOT
BE FORCED) THAT PRIVATE INVESTORS OF ALL NATIONALITIES ENTER
ONLY WHERE THE CIRCUMSTANCES ARE ATTRACTIVE. SO NUMEROUS ARE
THE INVESTMENT OPPORTUNITIES THROUGHOUT THE FREE WORLD TODAY
THAT HE WHO SEEKS INVESTMENT CAPITAL MUST COMPETE FOR IT.
BUT HERE AGAIN THE POSITION OF J, ATIN^AMERICA IS PRIVILEGED AND
FORTUNATE. THROUGHOUT YOUR COUNTRIES^THERE ARE CHALLENGING AND
ATTRACTIVE OPPORTUNITIES FOR NEW INVESTMENTS SUCH AS ARE FOUND
ONLY IN YOUNG AND RAPIDLY DEVELOPING ECONOMIES. THESE FACTORS
GIVE YOU VERY REAL ADVANTAGES IN COMPETING FOR INVESTMENT CAPITAL.
IT IS EASY
-4JNCLASfiHEFIED'

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'^2=--m*m^^-mH^^

OF NINE)

IT IS EASY TO UNDERSTAND, THEREFORE, WHY THE AMERICAN STATES WHOSE
GOVERNMENTS HAVE ESTABLISHED THOSE CONDITIONS WHICH HAVE ALWAYS
PROVEN ATTRACTIVE TO PRIVATE INVESTORS EVERYWHERE IN THE WORLD
HAVE EXPERIENCED LITTLE DIFFICULTY IN FINDING AMPLE SUPPLIES
OF CAPITAL, BOTH DOMESTIC AND FOREIGN. THIS HAS BEEN DEMONSTRATED
SO DRAMATICALLY THAT THERE CAN BE NO LONGER ANY DOUBT BUT THAT
IN THIS FAVORED AREA Of4 THE WORLD, WHERE NATURE HAS DONE ITS PART
SO WELL, EACH GOVERNMENT CAN, IF IT WILL, ATTRACT A VOLUME OF
PRIVATE INVESTMENT THAT WILL COMPARE MOST FAVORABLY WITH THAT OF
ANY OTHER AREA OF THE WORLD.
ONE OF THE THINGS WHICH OUR GOVERNMENTS MUST DO TO ENCOURAGE
FREE ENTERPRISE IS TO INSURE THAT THOSE PROJECTS NECESSSARY
FOR ECONOMIC DEVELOPMENT, BUT FOR WHICH PRIVATE CAPITAL IS NOT
REASONABLY AVAILABLE, ARE ADEQUATELY SUPPORTED BY PUBLIC INVESTMENT,
\JK VIEW THIS AS A NECESSARY SUPPORT TO AN ECONOMY WHICH RELIES
PRINCIPALLY UPON PRIVATE ENTERPRISE AS SUPPLEMENTING AND
ENCOURAGING, RATHER THAN AS DISPLACING FREE ENTERPRISE. I
[y^
rW
AM SURE THAT EACH GOVERNMENT WILL SHOULDER AS MUCH OF THEIR B ^ ® » .
AS IT REASONABLY CAN, BUT WE AGREE WITH YOU THAT SUBSTANTIAL
FOREIGN LENDING WILL BE NECESSARY IF WE ARE TO ACHIEVE OUR GOALS
IN THIS HEMISPHERE. WE SHALL DO OUR PART GENEROUSLY AND LOYALLY IN
MEETING THAT NEED.
TO THAT END WE HAVE REVIEWED THE WHOLE SCOPE OF OUR PUBLIC

UNCLASSTFTFT)

ICOMING TELEGRAM

Department

of State

UNCLASSIFIED
,,,,- -ContfolV" 9746'
FROMsr—©OTTANB-IWiA—«
Tfl^^&aorat a ry -. Q f State
N0.

^ ^ m ? H T ^ N 0 V E H B E R ; t 2 3 , 1954
12:12 A . M . W ^ " "
' : ^...^..^ssa^^

\ 10, NOVEMBER 22. (SECTION SEVEN OF NINE) )
=-—fl.^i.-M-r.

' w*te**fc*3»«S^toWJB*ft*e*M^

PA^TREJOTtn^^
LENDING POLICIES AND HAVE ARRIVED AT CERTAIN CHANGES WHICH WE
#LI
CONSIDER SIGNIFICANT.

USIA THE FIRST ELATES TO THE vUNITED vSTATESJptPORT-IMPORT
CIA
£ANK WHOSE ACTIVITIES ARE TO BE^INTENSIFIED AND EXPANDED.
OSD
ARMY THIS PAST SUMMER, THE ^CONGRESS OF THE OJNITED STATES
FOA
BY SPECIFIC LEGISLATION INCREASED THE LEND IN(T AUTHORITY OF THE
BANK FROM $4 4 / 2 BILLION TO $5 BILLION, IN ANTICIPATION OF ITS
INCREASED LENDING ACTIVITY. IN HIS REPORT TO THE^ENATE ON THIS '
LEGISLATION, SENATOR^CAPEHART, CHAIRMAN OF THE BANKING AND CURRENCY
COMMITTEE, STATED? ~
^
~
/
"THE ^XPORT-JMPORT BANK HAS PLAYED AN IMPORTANT ROLE IN OUR
FOREIGN ECONOMIC POLICY AND MUST CONTINUE TO DO SO ON AIT ACTIVATED
SCALE. PROMOTION OF TRADE AMONG THE FREE NATIONS OF THE WORLD,
AND IN PARTICULAR, WITH THE NATIONS OF THE WESTERN HEMISPHERE,'
IS OF UTMOST IMPORTANCE TO THE COMMON WELFARE, THE COMMON DEFENSE,
AND THE SOLIDARITY OF THE FREE WORLD."
WITHIN THE LAST FEW MONTHS THE^EXPORT^JMPORT^BANK HAS
AUTHORIZED LOANS OF $130 MILLION TO NATIONS IN THIS HEMISPHERE
AND OTHER IMPORTANT LOANS ARE UNDER CONSIDERATION. THE LOANS
WHICH HAVE BEEN AUTHORIZED WILL HELP TWO IMPORTANT 4. AT JN^VMER I CAN
CITIES DEVELOP MUNICIPAL WATERWORK SYSTEMS AND WILiTMAKE>0?SIBLE
THE DEVELOPMENT OF ONE OF THE WORLD'S LARGEST COOPER DEPORT*-.
THE BANK HAS MADE LOANS TO FINANCE THE SALE INvLATIN AMERICA
OF MACHINE TOOLS, OF AIRCRAFT, OF ELECTRIC EQUIPMENTT^OF TEXTILE
EQUIPMENT, AND OF WHEAT. IT HAS FACILITATED THE DEVELOPMENT OF
SULPHUR PRODUCTION. THE RANGE OF ITS ACTIVITIES HAS BEEN AS WIDE
/V^w ~""--~ AMU-VARIED—
.REmDUCJJOttffiOM TH IS
^A<^T F T FT)
CJQPt; IF OASSlHWrTS""
.nooxrijLU

PROHIBITED

AND VARIED AS THE PRODUCTION PROCESS ITSELF, FROM THE EXTRACTION
OF BASIC MATERIALS TO THE FABRICATION OF COMPLEX INDUSTRIAL
PRODUCTS. SINCE ITS ORGANIZATION THEJPCPORT-^IMPORT.-[SANK
HAS AUTHORIZED LOANS IN EXCESS OF 2 AND 1/4 TRILLION TO
J-ATIN^MERICA.
WITHIN THE PAST FEW WEEKS, THEJEXPORT^MPORT^ANK HAS OPENED
UP NEW SOURCES OF CREDIT FOR THE COUNTRIES oFlATIN ^MERICA THAT
WISH TO IMPORT EQUIPMENT FROM THE'4JNITED STATES. WITH THE
ASSISTANCE OF LINES OF CREDIT FROlTTHE^XPORT^JMFORT JANK,
.UNITED^TATES EXPORTERS WILL BE ABLE K T O F F E R ' M E D I U M ' T E R M CREDIT
~~ON EQUIPMENT OF A PRODUCTIVE NATURE. THIS PROGRAM WILL BE
IN ADDITION TO LONG-TERM CAPITAL AND SHOULD HELP TO ACCELERATE
THE FLOW OF TRADE AND EASE TEMPORARY CREDIT PROBLEMS.
IN ADDITION, A LARGE .NEW JORK BANK ANNOUNCED LAST WEEK THAT
IT PROPOSES TO FORM A~MULT ^MILLION DOLLAR EXPORT FINANCING COMPANY.
THE^GXPORT-QIMPORT VBANK WILL ALSO PARTICIPATE IN THIS NEW VENTURE.
THIS ENTERPISE WL£L ADD FURTHER TO THE SUPPLIES OF MEDIUM TERM
CREDIT AVAILABLE TO LATIN AMERICAN IMPORTERS OF CAPITAL GOODS.
IN THE FIELD OF ECONOMIC DEVELOPMENT, OF COURSE, THE
.INTERNATIONALXBANK HAS A PRIMARY ROLE TO PLAY IN HELPING TO
^PROMOTE THE ECONOMIC GROWTH OF THE^AMERICAN REPUBLICS, MOST OF
THE COUNTRIES REPRESENTED HERE WERJ FOUNDING FATHERS OF THE
^INTERNATIONAL^BANK. YOUR COUNTRIESRAND MY OWN PARTICIPATED IN
^ITS ESTABLISHMENT AND WE HAVE CONTRIBUTED IMPORTANTLY TO ITS
PERSONNEL AND CAPITAL. THE^JNTERNATIONAL^ANK IS OUR COMMON
INSTITUTION. IT WAS ESTABLISHED TO CARRY^THE MAJOR BURDEN OF
FINANCING RECONSTRUCTION AND DEVELOPMENT LOANS AT A GOVERNMENTAL
LEVEL. WHILE THE ^INTERNATIONAL VBANK IN THE EARLY POST-WAR YEARS
WAS PRIMARILY CONCERNED WITH RECONSTRUCTION, IT HAS ACCELERATED
BANK HAS FINANCED A STEADY SUCCESSION OF HIGH ^
THE TEMPO OF ITS OPERATIONS AND HAS, MORE RECENTLY, CONCENTRATED
ITS MAJOR EFFORTS ON ECONOMIC DEVELOPMENT THE INTERNATIONAL
!9f£R
?\

meirASSTTTED

COMING TELEGRAM

Department

of State

UNCLASSIFIED
Control

-^£73:yf\

12:24 k«M~

yUITANDINHA
TO: JSegr^tary oi>State
NO: 10 NOVEMBER 22.

fOLsetr^tB-g^g^r

OCB
USIA
CIA
OSD
ARMY
FGA

PRIORITY DEVELOPMENTg PROJECTS I N ^ A T I N AMERICA. THE TOTAL NOW
EXCEEDS $500,000,000 FOR THE LAST FIVE YEARS. ITS FIRST
DEVELOPMENT LOAN WAS IN V LATIN^AMERICA, AND TODAY ITS INVESTMENT
IN THIS HEMISPHERE IS G R E A T E ^ T H A N IN ANY OTHER DEVELOPING AREA.
ITS LOANS HAVE BEEN MADE PRIMARILY FOR BASIC FACILITIES AND
PUBLIC WORKS ON WHICH FURTHER FRUITFUL INVESTMENT DEPENDS:
FOR ELECTRIC POWER, FOR TRANSPORTATION, AND FOR COMMUNICATION
FACILITIES. THE LOANS OF T H E ^ N T E R N A T I O N A L ^ A N K ARE IMPORTANT
NOT ONLY IN THEMSELVES BUT IN THEIR SECONDARY EFFECTS. ELECTRIC
POWER INSTALLATIONS, NEW ROAD AND COMMUNICATION SYSTEMS, NEW
PORT FACILITIES, ALL HAVE ENCOURAGED NEW INDUSTRIES AND LOWERED
COSTS. DEVELOPMENT IS A CUMULATIVE PROCESS, SETTING IN MOTION
INNUMERABLE INDI^fDUAL EFFORTS WITH MULTIPLYING EFFECT.
IN HIS REPORT TO THE CONFERENCE, EUGENE J3LACK, PRESIDENT OF THE
BANK, STATES:
^
"IT IS MY PERSONAL JUDGMENT THAT, GIVEN A CONTINUANCE OF PRESENT
TRENDS IN^LATIN^MERICA, THERE IS EVERY REASON TO EXPECT
EXPANDED LENDING ACTIVITY BY THE BANK IM THAT AREA DURING THE
PERIOD WHICH LIES AHEAD. THE BANK HAS T H E RESOURCES TO DO SO AND
IT HAS THE WILL TO DO SO. THE EXTENT TO WHICH IT MAY BE ABLE
TO TRANSLATE ITS WILL INTO ACTION DEPENDS LARGELY ON CONDITIONS
WITHIN THE CONTROL OF THE LATIN AMERICAN COUNTRIES THEMSELVES."
AT THE MEETING OF THEJ30ARD OF^GOVERNORS OF THE^JNTERNATIONAL^BANK
LAST^gEPTEMBER, REPRESENTATIVES FROM MANY OF T H E A ^ M E R I C A N REPUBLICS
STRONGLY URGED SUPPORT FOR T H E ESTABLISHMENT OF AN INTERNATIONAL
FINANCE CORPORATION TO ENCOURAGE PRIVATE INVESTMENT. THE SUBJECT
HAS BEEN UNDER STUDY FOR SEVERAL YEARS.
T4iE~&A£TE-R ttAS
-HNCI.ASSJJ^ED

REPRODUCTION FROM THIS
COPYrlF' 4AssiE*»ns
PROHIBITED

^erassTFTED
°-^=-J43-r-&Q¥EMEE8^

QUF

THE MATTER HAS BEEN GIVEN MOST CAREFUL CONSIDERATION BY THE^JJNITED
^ A T E S GOVERNMENT, AND WE ARE GOING TO ASK THE CONGRESS TO SUPPORT
jsJJNITED^gTATES PARTICIPATION IN SUCH A CORPORATION. WE HAVE IN MIND
AN INSTITUTION ORGANIZED AS AN AFFILIATE OF THE JNTERNATIONAL
y^ANK, WITH AN AUTHORIZED CAPITAL OF $100 MILLION" TO BE CONTRIBUTED
BY THOSE MEMBERS OF THE /INTERNATIONAL .BANK WHO WISH TO SUBSCRIBE*
THE CORPORATION WOULD BE ABLE TO MAKE LOANS WITHOUT THE GUARANTEE
OF MEMBER GOVERNMENTS. IT WOULD NOT DIRECTLY PROVIDE EQUITY FINANCING. IT WOULD, HOWEVER, BE EMPOWERED TO HOLD SECURITIES BEARING
INTEREST PAYABLE ONLY IF EARNED, AS WELL AS DEBENTURES CONVERTIBLE
INTO STOCK WHEN PURCHASED FROM THE CORPORATION BY PRIVATE INVESTORS.
IN THAT WAY IT WOULD OPERATE IN THE AREA OF VENTURE CAPITAL
WITHOUT HOLDING EQUITY RIGHT OF CONTROL. IT WOULD NOT COMPETE
WITH THE^NTERNATIONAL^ANKf^THE^XPORT-JMPORT BANK AND INDEED
IT WOULD FACILITATE PRIVATE INESTMENT. vIF THE INTERNATIONAL FINANCE CORPORATION IS ESTABLISHED,
WE SHALL THEN HAVE THREE MAJOR FINANCIAL INSTITUTIONS TO HELP
PROMOTE ECONOMIC DEVELOPMENT. WE SHALL HAVE THE ^XPORT-^IMPORT
BANK THAT HAS HAD A LONG HISTORY OF USEFUL WORK IN 4,kftk^AMERICA
AND WHOSE ACTIVITIES ARE TO BE INTENSIFIED. WE SHALt HAVE THE
^LNTERNATIONAL^BANK, IN WHICH WE ARE PARTNERS, TO HELP FINANCE
BASIC RESOURCE DEVELOPMENT. WE SHALL HAVE AN INTERNATIONAL FINANCE
CORPORATION IN WHICH WE WOULD WORK TOGETHER TO ASSIST AND
ENCOURAGE PRIVATE ENTERPRISE.
IN THE SPIRIT OF THE RESOLUTION ON PRIVATE INVESTMENT AND TAXATION
ADOPTED AT THE CARACAS CONFERENCE, THE UNITED STATES CONTINUES
TO EXPLORE FEASIBLE MEASURES TO REMOVE TAX IMPEDIMENTS TO INCREASED
FOREIGN INVESTMENTS. THE ADMINISTRATION AND THE CONGRESS,
AS WELL AS NUMEROUS PRIVATE GROUPS IN THE UNITED STATES, HAVE
GIVEN THE MATTER INTENSIVE STUDY. THIS HAS DISCLOSED THE
COMPLEXITY OF THE PROBLEMS INVOLVED. IN THE LIGHT OF THIS
EXPERIENCE, THE
C

T*0©V1R

UNCLASSIFIED

INCOMING TELEGRAM

Department

of State

UNCLASSIFIED
Control
Rec'd :

9750
NOVEMBER ' 23, 1P54
1 %%^^JA^Mum^^mm-'--~^'

PA3S TREASURY FOR FOLSUM AND S I M E y ^
^MINISTRATION WILL AGAIN SUBMIT TO THE^CONGRESS PROPOSALS WITH
^RESPECT TO THE REDUCTION OF TAXATION OF FOREIGN INCOME ALONG
THE GENERAL LINES RECOMMENDED BY THI^PRESIDENT LAST YEAR.
0(
WE^TRUST THESE PROPOSALS WILL FIND ACCEPTANCE BY THE CONGRESS.
USIA WE DESIRE TO COMPLEMENT THESE UNILATERAL LEGISLATIVE STEPS WITH
CIA
BILATERAL TAX TREATIES. TO THAT tND, WE ARE PREPARED TO EXPLORE
OSD
WITH INDIVIDUAL COUNTRIES THE POSSIBILITIES OF THE TAX TREATY
ARMY AS A MEDIUM FOR CREATING A MORE FAVORABLE TAX CLIMATE F^R INTERFOA
NATIONAL TRADE AND INVESTMENT. FOR EXAMPLE, ONE OF THE MATTERS WHICH
MIGHT BE CONSIDERED IN TREATY DISCUSSIONS IS HOW THEUNITED^STATES
MIGHT GIVE RECOGNITION TO TAX CONCESSIONS MADE TO FOREIGN CAPITAL
BY THE COUNTRY WHERE THE INVESTMENT IS TO BE MADE. UNDER PROPER
SAFEGUARDS, WE WOULD BE PREPARED TO RECOMMEND GIVING CREDIT FOR
GENERAL FOREIGN INCOME TAXES WHICH ARE WAIVED FOR AN INITIAL LIMITED
PERIOD AS WE NOW GRANT CREDlf FOR TAXES WHICH ARE IMPOSED. SUCH
A MEASURE AS THIS WILL GIVE MAXIMUM EFFECTIVENESS TO YOUR
OWN LAWS DESIGNED TO ENCOURAGE NEW ENTERPRISES.
OUR AGENDA INCLUDES THE SUBJECT OF PROGRAMMING. INDIVIDUAL
NATIONS WILL NO DOUBT CONTINUE TO DEVELOP THEIR OVERALL APPROACHES
TO THEIR OWN ECONOMIC DEVELOPMENT PROBLEMS. IF ANY SUCH NATIONS
WE
THATVIEWS
EACH ON
OF US
EXPAND
FURTHER
WISHRECOMMEND
TO EXCHANGE
THEIR
PLANSANDWITH
OTHER DIVERSIFY
NATIONS OUR
JOINT
ACTIVITIES
IN THE
VITAL FIELD
OF TECHNICAL
UNDERTAKING
SIMILAR
DEVELOPMENT
PLANS,
IT MAY WELLCOOPERATION.
BE THAT THIS
THE
INTERCHANGE
OF
PEOPLE
UNDER
THIS
PROGRAM
DRAWS
US
CLOSER
ORGANIZATION CAN PROVIDE SUCH A MEETING
TOGETHER AND PROVIDES A BETTER UNDERSTANDING OF EACH OTHfiR*S
PROBLEMS. THROUGH TECHNICAL COOPERATION WE'POOL OUR ACCUMULATED
™?R45FS E A N D KNOWLEDGE TO UTILIZE THE HUMAN AND NATURAL RESOURCES
AVAILABLE TO US AS WE SEEK TO MATCH RESOURCES AGAINST OUR NEEDS.
THE ENORMOUS MUTUAL BENEFITS ALREADY PRODUCED BY OUR EFFORTS
IN THIS FIELD JUSTIFY OUR CONFIDENCE IN ITS FUTURE EXPANSION.
_—-~ WIT'aPFRU'AEH
REPjRjoiwGmrHimm
r^tmiVAB%lTlEb
"COPY, IF OASStFltD, IS
PROHIBITED

^JIEOJ^SffffD

WE APPROACH OUR T#|s HERE TOGETHER WITH A SENSE OF MISSION,
WHICH I AM SURg IS COMMON TO US ALL. THE CHALLENGE OF THE YEARS
AHEAD IS A TREMENDOUS ONE. HOW WE MEET IT MAY DETERMINE OUR PLACE
IN HISTORY. WE HAVE GREAT FAITH AND CONFIDENCE I& THE PEOPLES
AND THE LANDS THAT SHARE THIS HEMISPHERE. THE HUMAN AND
HIYSICAL RESOURCES ARE HERE OUT OF WHICH TO BUILD A GLORIOUS
FUTURE.
THEtfRESlDENT OF MY COUNTRY HAS VERY RIGHTLY CALLED US PARTNERS
IN THIS GREAT ENTERPRISE. HE HAS DECLARED THE POLICY OF OUR GOVERNMENT TO BE THAT OF THE GOOD PARTNER.
I KNOW THAT TH^AMERICAN STATES CAN BE GOOD PARTNERS, DETERMINED
TO WORK FOR THE BETTERMENT Of ALL OUR PEOPLE. IF WE ARE
ENERGETIC AND PRACTICAL, I AM CONFIDENT THAT WE STAND ON THE
THRESHOLD OF A GREAT TOMORROW. AS GOOD PARTNERS WE CAR MAKE
THIS COMING TOGETHER ATfcRIO A MOMENTUS ONE IN THE BRIGHT AND
LENGTHENING RECORD OF INTER-AMERICAN RELATIONS.

UNCLASSIFIED

TREASURY DEPARTMENT

x /

WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, November 23, 1954.

H-£39

The Treasury Department announced last evening that the tenders
for $1,500,000,000,or thereabouts, of 90-day Treasury bills to be
dated November 26, 1954, and to mature February 24, 1955, which were
offered on November 18, were opened at the Federal Reserve Banks on
November 22.
The details of this issue are as follows:
Total applied for - $2,126,520,000
Total accepted
- 1,500,115,000 (includes $224,164,000
.entered on a noncompetitive
basis and accepted In full
at the average price shown
below)
Average price
- 99.776 Equivalent rate of discount approx".
Range of accepted competitive bids: 0.897$ per annum
High

- 99.732 Equivalent rate of discount 0.872^
per annum
Low
- 99.771 Equivalent rate of discount Q.9l6%
per annum
(88 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
ApDlied for
$
15,820,000
1,536,005,000
25,624,000
54,032,000
17,3-4,000
21,386,000
215,137,000
21,581,000
23,030,000
43,820,000
57,701,000
<k
$2,126,520,000
90,070,000
0O0

Total
Accepted
15,820,000
970,925,000
10,424,000
52,927,000
17,314,000
21,326,000
179,777,000
21,461,000
21,230,000
47,620,000
51,201,000
$1,500,115,000
90,070.000

RHJSaSB MORNIHG MISSfilFgRS,
Tuesday, Morember 23, 19$k.

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

or thereabouts, ot 90-day treasury bills to be dated November 26, 195U, and to aatu
February 2k, 195$, which were offered on November 18, were opened at the Federal
Reserve Banks on November 22.
The details of this issue are as follows:
Total applied for ~ $2,126,520,000
Total accepted r - 1,500,115,000 (includes $22l*,l6li,G0Q entered on a
u
"
noncompetitive basis and accepted in
fall at the average price shown below)
Average price
- 9°.776 Equivalent rate of discount approx. Q.897J& per annum
Range of accepted competitive bids:
High - 99»782 Equivalent rate of diseosnt 0.872^ per annu®
Low
- 99.771
"
n » «
Q.9l6^

(86 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District
Boston
New Tork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total

Applied for

Accepted

$
15,820,000
1,536,005,000
2S,62li,000
5i*,Q32,OGG
17,3114,000
21,386,000
215,137,000
21,581,000
23,030,000
1*8,820,000
57,701,000
90,070,000

$2,126,520,000

$1,500,115,000

15,820,000
970,925,000
10,l*2l*,OGO
52,927,000
17,31^,000
21,326,000
179,777,000
21,1*81,000
21,230,000
U7,620,000
51,201,000
90,070,00)

TREASURY DEPARTMENT

285

WASHINGTON, D.C.
IMMEDIATE RELEASE,
Thursday, November 18, 1954.

H-638

The Treasury Department announced today that the subscription
books will open on Monday, November 22, for an optional exchange
of its December maturities into 2-1/2 percent 8-year and 8-month
Treasury bonds maturing August 15, 1963, 1-1/4 percent one-year
certificates of indebtedness, and an additional amount of the
1-1/8 percent certificates of indebtedness maturing August 15, 1955 These securities will be offered in exchange for $17,347
million of securities which become due on December 15. These
maturities consist of $8,175 million of 1-7/8 percent Treasury
notes and $9,172 million of 2 percent Treasury bonds. Holders of
the maturing securities will have the option of exchanging for any
or all of the three issues now offered.
The new bonds and the new certificates will be dated
December 15, 1954, and exchanges will be made par for par. Holders
should detach the December 15, 1954, coupons from the securities
they exchange for these issues and cash them when due. In the
case of exchanges for the additional issue of August certificates,
folders should submit the securities to be exchanged with the
Pecember 15, 1954, coupons attached. The full six months' interest
on the securities surrendered will be credited and accrued interest
from August 15 to December ±5 on the certificates will be charged,
$.nd subscribers will be paid the difference.
The subscription books will be open for three days only for
this exchange. They will close at the close of business
November 24, and any subscription addressed to a' Federal Reserve
Bank or Branch or to the Treasurer of the United States and placed
in the mail before midnight November 24 will be considered as
timely.
0O0

IMMEDIATE ESUJASB,
Thursday. Sioveiaber 18. 1954.

^
^C

l y l i ^ ^

The Treasury Departaent announced today that the subscription books
will open on Monday, November 22, for an optional exchange^into 2-1/2 percent 8-year and 8-aionfch Treasury bonds Maturing August 15, 1963, 1-lA Percent one-year certificates of indebtedness, and an additional amount of the
1-1/8 percent certificates of indebtedness liaturing August 15, 1955*
These securities will be offered in exchange tor $17,347 million of
securities which become due on December 15. These maturities, consist of
$8,175 million of 1-7/8 percent Treasury notes and #9,172 million of 2 percent Treasury bonds. Holders of the maturing securities will have the
option of exchanging for my or all of the <three issues now offered.
The new bonds and the new certificates will be dated December 15, 1954,
and exchanges will be laade par for par* Holders should detach the Deeea- A
ber 15, 1954, coupons from the securities they exchange for these Issues
and cash them when due* In the case of exchanges for the additional issue
of August certificates, holders should submit the securities to be exchanged
with the December 15, 1954, coupons attached. The full six months' interest
on the securities surrendered will be credited and accrued interest from
August 15 to December 15 on the certificates will be charged, and subscribers
will be paid the difference.
The subscription books will be open for three days only for this exchange. They will close at the close of business November 24, and any subscription addressed to a Federal Reserve Bank or 'ranch or to the Treasurer
of the United States and placed in the mail before midnight November 24
will be considered as timely.

/j I i4/(

TREASURY DEPARTMENT

283

WASHINGTON, D.C.

IMMEDIATE RELEASE,
Thursday,- November 18, 1954.

H-637

Treasury Secretary George M. Humphrey will leave Washington
this afternoon (Thursday) to attend the Conference of Ministers
of Finance or Economy to be held In Rio de Janerlo, Brazil,
starting next Monday.
Secretary Humphrey will be chairman of the U. S. delegation,
while Herbert Hoover, Jr., Under Secretary of State will be
vice chairman, and Henry F. Holland, Assistant Secretary of State
will be coordinator. Special congressional advisers include
Senators Wiley, Capehart and Smathers.
In a departure statement Secretary Humphrey said:
"We look forward to the privilege of meeting with the
Ministers of Finance or Economy from the American Republics
in Brazil. This conference will provide a further opportunity
to discuss mutual problems of the nations of this hemisphere
in the interests of continued peace and greater prosperity for
the free world."
Secretary Humphrey and party will leave National Airport via
Coast Guard aircraft for Miami, at 2:30 p.m., EST. The party
will proceed by commercial air stopping at Lima, Peru, Friday
and continue to Rio de Janerio Sunday.
Among those leaving Washington with Secretary Humphrey today
are Samuel C. Waugh, Assistant Secretary of State for Economic
Affairs; Andrew N. Overby, Assistant Secretary of the Treasury;
and Nils A. Lennartson, Assistant to the Secretary.
The conference in Rio will provide for discussions on trade,
economic development and transportation problems which came up
at the Inter-American Conference in Caracas, Venezuela, last
spring.

0O0

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Thursday, November 18, 1954.

a
c 4^r

H-637

Treasury Secretap^ George M. Humphrey will leave Washington
Thursday afternoon- /€o attend the Conference of Ministers of
Fir
Finance or Economy to be held in Rio de Janerio, Brazil, starting
next Monday.
Secretary Humphrey will be chairman of the U. S. delegation,
while Herbert Hoover, Jr., Under Secretary of State will be
vice chairman, and Henry F. Holland, Assistant Secretary of State
will be coordinator. Special congressional advisers include
Senators Wiley, Capehart and Smathers.
In a departure statement Secretary Humphrey said:
"We look forward to the privilege of meeting with the
Ministers of Finance or Economy from the American Republics
in Brazil. This conference will provide a further opportunity
to discuss mutual problems of the nations of this hemisphere
in the interests of continued peace and greater prosperity
for the free world."
C
/ /
Secretary Humphrey and party*"Itrf|CNational Airptfrt via
p^ast Guard aircraft for Miami, -Thursday 'iTU i'iinynffiig;30 p.m.
EST}>. The party will proceed by commercial air stopping at
Lima, Peru, Friday and continuJBfe to Rio de Janerio Sunday.
Among thosex^who loftjrashington with Secretary Humphrey -^^a
Thursday of1ior>nmnEuwfi>:po Samuel C. Waugh, Assistant Secretary of
State for Economic Affairs; Andrew N. Overby, Assistant Secretary
of the Treasury; and Nils A. Lennartson, Assistant to the
Secretary.
The conference in Rio will provide for discussions on trade,
economic development and transportation problems which came up
at the Inter-American Conference in Caracas, Venezuela, last
spring.

*oifc Be lease
Thursday. November 18, 1954

„ .

Treasury Secretary George M. Humphrey will leave Washington
Thursday afternoon to attend the Conference of Ministers of Finance
or Economy to be held in Rio de Janerio, Brazil, starting next
Monday.
Secretary Humphrey will be chairman of the U. S. delegation,
while Herbert Hoover, Jr., Under Secretary of State will be vicechairman, and Henry F. Holland, Assistant Secretary of State will
be coordinator.

Special congressional advisers include Senators

Wiley, Capehart and Smathers.
In a departure statement Secretary Humphrey said:
M

We look forward to the privilege of meeting with the Ministers

of Finance or Economy from the American Republics in Brazil. This
conference will provide a further opportunity to discuss mutual
problems of the nations of this hemisphere in the interests of
continued peaceal and greater prosperity for the free world."
Secretary Humphrey and party left National Airport via Coast
Guard aircraft for Miami, Thursday afternoon (2:30 p.m. EST).
The party will proceed by commercial air stopping at Lima, Peru,
Friday and continuing to Rio de Janerio Sunday.
Among those who left Washington with Secretary Humphrey
Thursday afternoon were Samuel C. Waugh, Assistant Secretary of
State for Economic Affairs; Andrew N. Overby, Assistant Secretary
of the Treasury; and Nils A. Lennartson, Assistant to the Secretary.
The conference in Rio will provide for discussions on trade,
economic development and transportation problems which came up at
the Inter-American Conference in Caracas, Venezuela, last spring.

- 2 competitive bids. Settlement for accepted tenders In accordance
with the bids must be made or completed at the Federal Reserve Bank
on
November 26 1954, i n casJl o r other immediately available funds
or in a like face amount of Treasury bills maturing November 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
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) (i) 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) Lssued 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.

RELEASE MORNING NEWSPAPERS.
Thursday, November 18, 1954.

H-636

The Treasury Department, by this public notice, invites tenders
or $1,500,000,000, or thereabouts, of 90 -day Treasury bills, for
cash and in exchange for Treasury bills maturing November 26, 1954,
in the amount of $1,500,969,000, to be Issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated November 26, 1954,
and will mature February 2k, 1955, when the face amount will be
payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Standard time,
Monday, November 22 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 ofthe 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
f

TREASURY DEPARTMENT
Ymshington
FOR RELEASE, HOMING NEWSPAPERS,
Thursday, Noveniber 18, 1954

f ^~ i^

~ "" ipfcf

The Treasury Department, by i & U public notice, invites tenders for
& 1,500,000,000 , or thereabouts, of

snr —

90 -«day Treasury bills, for cash and

~nr~

in exchange for Treasury bills maturing November 26, 1954
, in the amount of
$1,500,969,000
, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated November 26, 1954

, and'mil mature

February 2k, 1955

, 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, $£00,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock p.m., Eastern Standard time, Monday, November 22, 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

- 2 -

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

the tenders ar^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 Yihich 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 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 November 26, 195% , in cash or
m^J9-f-

other immediately available funds or in a like face amount of Treasury bills
maturing November 26, 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 have any speci?J. troitm^-nt, ?.s 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,

-3*B8Kfc

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 i\2 and 11? (a) (1) of the Internal
Revenue Code, as amended by Section ll£ of the Revenue Act of 19hl9 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.
Revised
Treasury Department Circular No. Ul8, aacxxsaaataafc, 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.

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, November 16, 1954.

H-635

The Treasury Department announced last evening that the tenders
for SI,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated November 18, 1954, and to mature February 17, 1955, which were
offered on November 11, were opened at the Federal Reserve Banks on
November 15.
The details of this issue are as follows:
Total applied for - $2,116,663,000
Total accepted
- 1,500,394,000 (includes $243,3^,000
entered en a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.765 Equivalent rate of discount approx.
0.931/^ P©^ annum
Range of accepted competitive bids: (Excepting one tender of
$1^0,000)
99.775
Equivalent
rate of discount approx.
High
0.890^ per annum
Low
- 99.762 Equivalent rate of disccunt approx.
0.9^2^ per annum
(l percent of the amount bid for at the low price was accepted)
Total
Airy lied for

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

TOTAL

S
37,071,000
1,462,286,000
43,135,000
61,652,000
19,194,000
2c,736,000
197,235,000
31,527,000
16,308,COO
49,905,000
77,852,000
91,992,000
$2,116,863,000
0O0

Total
y^cceyted
$
30,601,000
963,509,000
27,338,000
59,652,000
16,994,000
27,741,000
151,315,000
31,527,000
16,308,000
49,905,000
46,902,000
76,1023000
$1,500,394,000

miEASz, mxLivim w^sPArms,

Tuesday, Sovefgbcr 16, 19$k*

/ t <

The Treasury Departeient announced last evening that the tenders for |i, 500, 000,

or hereabouts, of 91-day Treasury ©ills to ha dated M&m&hmr 18, 195k, and to - atur

February 17, 19$$, ifhieh were offered on Boven&er 11, mrs opened at the federal Re
Banks on November 1$.
The details of this issue are as followst
rotal applied for - |2,135,8&£,QGQ
Total aec^ied
- X,500,39li,000

Average price

(iaeludeii i2lS,3$k,OoQ entered on a
nancanpstitivc basis aod accepted in
fall at the average price shown below)
- 99.765 Isfaivaleat rata of discount approx* 0.9311 par annum

Range of accepted competitive hiMt (Bsosepting om tender of $ 1^0,000)
High - 99.775 l^aivalimt rat© of discount approx. 0.890:1 per annua
Low
- 99.762
«
^ ?!
«
B
0.9U23 »»

.a lor at tae low j>rxo<e ,. ,s accepted]
Federal Reserve
District

Total
Applied for

Total
Accepted

Boston
Hew York

Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
l.ansas City
Dallas
San Francisco

37,071,000
1,1*62,286,000
1*3,335,000
61,652,000
19f19U,030
28,736,300
197,2<g,OQO
31,527,000
16,308,000
k9, 905, 000
77,352,000
91,992,000

y;2,116,863,000

30,601,005
963,509,000
27,838,TO
59,652,000
I8,99li,030
27,7ia,OX)
151,335,000
31,527* -xw
35,308,000
4y, 905,000
146,902,000
J6,1:32,003

yl,5«X),39U,000

TREASURY DEPARTMENT

WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Monday, November 15, 1954.

H-634

The Treasury Department today issued the official notice of
call for redemption on March 15, 1955, of the 2-7/8 percent
Treasury Bonds of 1955-60, dated March 15, 193!?, due March 15,
1950. There are now outstanding $2,611,090,500 of these bonds.
The text of the formal notice of call is as follows:
TJ0 AND SEVEN-EIGHTHS PERCENT TREASURY BONDS OF 1955-60
[DATED MARCH 15, 1935}
""
NOTICE OF CALL FOR REDEMPTION
To Holders of 2-7/8 percent Treasury Bonds of 1955-60, and Others
Concerned:
1 Public notice is hereby given that all outstanding
2-7/8 nercent Treasury Bonds of 1955-60, dated March 15, i935, due
March 15, I960, are hereby called for redemption on March 15, 1*55,
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 villi be
issued.
3. Full 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, November 15, 1954.

oOo

y±^i4
BEIEASE MORNING NSWSPAPBHS,
Monday, November 15, 195k*
The Treasury Department today Issued the official notice of call for
redaction on iferch 15, 1955* of the 2-7/8 percent Treasury Bonds of 1955-60,
dated March 15, 1935, due iteoh 15, I960* There are now outstanding
$2,611,090,500 of these bonds.
The text of the formal notice of call is as follows;
TWO
.

Aim s&vEjMnoirm vmczi??
—

TR&ISUHY. wms

o? 1955-6Q

H0TICBS CF CALL FOB ESDEMFTIOH
«•!»»««.».»»..»».

„m.^-~v*M~~«~,wM*M~~,^»MM«~

i . . .,.i..,.i. —.Mia..

To Holders of 2-7/8 percent Treasury Bonds of 1955-60, and Others Concerned;
1. Public notice is hereby given that aH outstanding 2-7/8 percent
Treasury Bond® of 1955-60, dated March 15, 1935* due :Jarch 15, I960, are
hereby called for redeiaption on larch 15, 1955, on ishich date interest on
such bonds will cease.
2. Holders of these bonds nay, 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 w i H be issued.
3. Full ±t£ormtlon regarding -toe presentation and surrender of the
bonds for cash yedmiptlan under this call ii2I be found in Department Circular No, o W 7 datetf July 21, 191*1.
Cb M. Humphrey, ,
Secretary of the Treasury.
TO5ASURY DISPAnTiWST,
yashin^ton, Woveisfoer 1$, 1 9 ^ .

TREASURY DEPARTMENT

272

WASHINGTON, D.C.

IMMEDIATE RELEASE,
Mcndav. November 15, 1954.

H-633

During the month of October 195-1-,
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
$21,050,400.

0O0

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
JPhuaPBdayj " ' ^ ^ o ? • < «lk5 l$&lL.

H-600

/
i

jKn*J<9Uf , //tor**M<Lr i>Tj /pS%£

H
v

During the month of Saptoiftfocr 195^-,
market transactions in direct and guaranteed
securities of the government for Treasury
investment and other accounts resulted in
net's**** by the Treasury Department
$9»£&lylfr0.

0O0

of^fZ-f,0^®?4^0®

November 2, 1954

The following transactions were made la direct and guaranteed
securities of the Government for Treasury investments and other
accounts during the month of October, 1954*
Purchases $21,139,000.00
Sales 88,600.00
$21,050,400.00

"(Sgd) Charles T. Barman
Chief, Investments Branch
Division of deposits & Investments

COTTON WASTES
(In pounds)
C0 T

3 2LCARD STRIPS made from cotton having * staple of less than 1-3/16 inches in length, COMBER
WASTE, LAP WASTE, SLIYER 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 countries. United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italya
Country of Origin

Established
TOTAL QUOTA

United Kingdom .
Canada . . , . „
France . . . . .
British India .
Netherlands • .
Switzerland . . ,
Belgium . . , „ ,
Japan . . , . . ,

4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
. O B
341,535
...
onxn3,
o o . . «
17,322
.00
Egypt . . . 0 . .
8,135
Cuba o . . a
. <
6,544
Germany . . . . ,
it>aiy c o o o
a
76,329
21,263
5,482,509
1/ Included in total imports, column 2.

Total Imports
Established
Sept. 20, 1954, to
33-1/356 of
Nov. 9, 1954
Total Quota
67,191
1,441,152
53,363
75,807
—•
43,979
22,747
14,796
12,853

6^627

25,443
7,088

6,627

171,160

1,599,886

73,83.8.

. . a

o o . .

Prepared in the Bureau of Customs.

Imports
Sept. 20, 1954
to Nov. 9« 1954
67,191

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
iE^^Mj.__Royemher 12, 1954.

HT£32
CO

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 5 4j to November 9, 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

Imports

5,742
20,355
291,691
618,723

Country of Origin
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 rou^h, of less than 3/4"
Imports Sept. 20, 195/,, to October 30. 1Q54

Cotton 1-1/8" or more, but less than 1-11/16"
Imports Feb. 1, 1954,, to November 9. 1954

Established Quota (Global)

Imports

Established Quota (Global)

70,000,000

595,018

45,656,420

Imports
35,805,791

Imports

TKEASUKY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Friday, November 12, iy$k.

tt-L>J2

Pro] 1 mi nary data on importa for consumption of cotton and cotton waste ohargeable to the quotas
ewtabliahed by the Preetdent'a Proclamation of September 5, 1939, as amended
COTTON (othor than lintera) (In pounds)
Cotton under i-l/8 inchea other than rou^h or harsh und«r )/l+"
Importa 3ept. 20. 19^4, bo November 9» 19'A* Inoiueffive"
Cou(itrx^f Origin Established Quota Importa Country of Origin Established Quota Imports
Egypt and thu Ari^lo- Honduras ...... 752
Egyptian 3udan . . .
783,816
'*«ru
247,952
Brit Van India
2,003,483
Chlntt
l,370,79i
M«xlno
8,883,259
BraaiL
618,723
Union of 3ovlot
3oelal.1nt Republics .
/,75,124
Ar>:r>ntina
5,203
Haiti.
.
237
Ecuador
9,333

5,742
20,355
291,691
618,723
-

Paraguay
Colombia . . . . . . .
Iraq
British Uuat Africa . .
Netherlands IS. Indies.
Barbados
i/Other British W. Indies
Nigeria
3/Other British w. Africa
jj/Other French Afrioa . .
Algeria and Tunisia .

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

2/ Othur than Barbadoe, Bermuda, Jamaica, Trinidad, and Tobago.
g/ Oth<r than Gold Coaat and Nigeria.
2/ Othur than Algeria, Tunlala, and Madagaacar.
Cotton. h.ir.Mh or rough, of leaa than 3/4" Cotton 1-1/8" or mor«i^ but_].«MB_ than l-ll/l6^
lL"Jifi«:to S«^U 2Qt 19Wji-k2-.0i!Y"W 39> M.54
Imports Feb. 1. 195/u"u November 9. Iv54~"
KfitablVnhed Quota (Global) Importa Eatabliehed Quota (Global) Importa
70,000,000 595,018 45,656,420 35,805,791

-3COTTON 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 case of the following countriess United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italys
Established
TOTAL QUOTA
____

Country of Origin
United Kingdom
Canada . . . .
France . . „ .
British India «
Netherlands . .
Switzerland . .
Belgium . . . ,
Japan . . . o •
China . „ c . <•
^gypt o « . . .
Cuba o . . .
Germany <, » . .
±T*a±y o o o .

0
. o
o •

. .
• 0
o o
a .
0 a
a o

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

0 0 I

5,482,509
1/ Included in total imports, column 2.
Prepared in the Bureau of Customs.

.
Total Imports
s Established .
Imports
T7
i Sept, 20, 1954, to s 33-1/3* of . Sept. 20, 1954
* Nov. 9, 1954
s Total Quota t to Nov. 9, 1954
67,191
53,363

1,441,152

67,191

75,807
43,979
22,747
14,796
12,853

6,627

25,443
7,088

6,627

171,160

1,599,886

73,&a

- 2 -

Commodity

Period and Quantity

: Unit
:
: of
:Imports as of
;Quantity:0ct. 30» 19$k

Barley, hulled, unhulled,
rolled,and ground, and barley 12 months from
malt
*Oct. 1, 19SU
Canada

27,22^,000 Bushel
27^,000 Bushel

2,078,997
$,63$

•^Peanuts, whether shelled, not
shelled, blanched, salted,
prepared, or preserved (including roasted peanuts, but 12 months from
not including peanut butter.. July 1, 19£H

1,709,000 Pound

1,U67,U68

12 months from
July 1, 195U

80,000,000 Pound

Other Countries

Peanut Oil
Oats, hulled and unhulled, and
unhulled ground

12 months from
Oct. 1, 19$k

Canada
Other Countries

39,312,000 Bushel
688,000 Bushel

%e> rye Hour, and rye meal... 12 months from
186,000,000
July 1, 195U

#• Imports through November 9, 19$k*

Pound

1,637,82U

Quota Filled

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Friday, November 12, 1954.

H-631

Commodity

Whole milk, fresh or sour

Period and Quantity

Calendar Year

3,000,000

: Unit
:
: of
: Imports as ofr
: Quantity: Oct. 30, 1954,
I*
Gallon

42,336

Cream Calendar Year 1,500,000 Gallon

116

Butter July 16, 1954- 5,000,000 Pound
Oct. 31, 19$k

164,825

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

12 months from
Sept. 1$. 19$k

33,950,386 Pound

150,000,000 Pound
329,100,000 Pound

Quota Filled
60,000
462,066

Cattle, less than 200 lbs. each 12 months from 200,000 Head
April 1, 1954

4,042

Cattle, 700 lbs. or more each... Oct. 1, 195)4- 120,000 Head
(other than dairy cows)
Dec. 31, 1954

831

Walnuts Calendar Year 5,000,000 Pound

Quota Filled

Almonds, shelled, blanched,
roasted, or otherwise orepared or preserved

12 months from
°ct. 1, 1954

Pound

150,279

Filberts, shelled (whether or
not blanched)
12 months from
Oct. 1, 1954

6,000,000 Pound

150,431

Alsike clover seed 12 months from
July 1, 1954

1,500,000 Pound

Quota Fille<(

5,000,000

( Continue \

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Friday. November 12, 1954.

H-631

Commodity

Period and Quantity

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

Unit
:
of
: Imports as of
Quantity: Oct. 30 *. 1954

3,000,000 Gallon

Cream ••••• • Calendar Year

42,336

1,500,000 Gallon 776

Butter July 16, 1954-

5,000,000 Pound 164,825
Oct. 31, 1954

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

12 months from
Sept. 15, 1954

33,950,386 Pound Quota Filled

150,000,000 Pound
329,100,000 Pound

Cattle, less than 200 lbs. each 12 months from200,000 Head
April 1, 1954
Cattle, 700 lbs. or more each... Oct. 1, 1954(other than dairy cows)
Dec. 31, 1954

120,000 Head

60,000
462,066
4,042

831

5,000,000 Pound

Quota Filled

12 months from
Oct. 1, 1954

5,000,000 Pound

150,279

Filberts, shelled (whether or
not blanched)
12 months from
Oct. 1, 1954

6,000,000 Pound

150,431

Alsike clover seed 12 months from
July 1, 1954

1,500,000 Pound

Quota Filled

Walnuts •• Calendar Year
Almonds, shelled, blanched,
roasted, or otherwise prepared or preserved

(Continued)

- 2 -

Commodity

Period and Quantity

: Unit
:
: of
:Imports as of
;Quantity:Oct. 30, 1954

Barley, hulled, unhulled,
rolled,and ground, and barley 12 months from
malt
Oct. 1, 1954
Canada
Other Countries
•^Peanuts, whether shelled, not
shelled, blanched, salted,
prepared, or preserved (including roasted peanuts, but 12 months from
not including peanut butter.. July 1, 1954
Peanut Oil
Oats, hulled and unhulled, and
unhulled ground

12 months from
July 1, 1954

27,225,000 Bushel
275,000 Bushel

2,078,997

1,709,000 Pound

1,467,468

5,635

80,000,000 Pound

12 months from
Oct. 1, 1954

Canada
Other Countries

39,312,000 Bushel
688,000 Bushel

%e, rye flour, and rye meal... 12 months from
July 1, 1954
186,000,000 Pound

* Imports through November 9, 1954.

1,637,824

Quota Filled

Treasury Department
Washington
IMMEDIATE RELEASE,
Friday. November 12. 1QS4.

H-630

Products of the
Philippines
Buttons

Established Quota
: Quantity
850,000

Imports as of
October 30, 1954
Gross

618,922
2,610,692

Cigars 200,000,000

Number

Coconut Oil 448,000,000

Pound

114,760,510

Cordage 6,000,000

Pound

2,005,159

Rice 1,040,000

Pound

(Refined
Sugars
(Unrefined
Tobacco 6,500,000

8,389,545
1,904,000,000

Pound

1,821,215,889
Pound

1,137,363

Treasury Department
Washington

IMMEDIATE RELEASE,
Friday. November 12, 1954.

H-630

Products of the
Philippines

Imports as of
October 30, 1954

:Established Quota
: Quantity

618,922

Buttons 850,000

Gross

Cigars 200,000,000

Number

Coconut Oil 448,000,000

Pound

114,760,510

Cordage 6,000,000

Pound

2,005,159

Rice 1,040,000

Pound

(Refined
Sugars
(Unrefined
Tobacco 6,500,000

2,610,692

8,389,545
1,904,000,000

Pound

1,821,215,889
Pound

1,137,363

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
l*^Aay, November 12,1954.

H-629

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 follows j

Country
of
Origin

Tfflheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established :
Imports
. Quota
sKay 29, 1954, to
(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

:Nov, ?, 1954
(Bushels)

(Pounds)

795,000

3,815,000
24,000

100
-

100
100
—

100
2,000

100
-

1,000
-

100
—
—
—
_.
-

1,000

100
100
100
100

Established
Quota

13,000
13,000
3,000
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

Imports
May 29, 1954 s
to
Nov, 9. 19ft
(Pounds)

3,815,000

2,000

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
ggMay, November 12,1954.

H-629

Country
of
Origin

:
s TSheat flour, semolina,
s
:
crushed or cracked
:
Wheat
:
wheat, and similar
:
s
wheat products
:
s
z Established :
Imports
: Established s
Imports
:
Quota
:Kay 29, 1954, to :
Quota
: May 29, 1954?
s
sNov. 9. 1954
J
* to Nov. 9f 1954
[ (Bushels)
(Bushels)
(pounds)
(Pounds)

795,000

—
-

—
—
—

„
•

100
->

100
100
mm

100
2,000

100
—

1,000
-

100
—
'~
—
_.

1,000

99
—
—
—
—
—
_.
_

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

lmm

100
100

_
_

100
100

mma

3,815,000
—
mm

_
—

70
mm

_
«_
_
mm

2,000
—

_
_
_
_
_
^m
.^
mm

TREASURY DEPARTMENT
WASHINGTON, D.C.
FOR RELEASE kT 6.0$ PJv! JJ.SX
Thursday. November II. 1954

H-628

The Administration will ask Congressional approval for the
United States to participate In a proposed International Finance
Corporation which would be organized as an affiliate of the
International Bank for Reconstruction and Development.
The purpose of the corporation would be to stimulate private
investment in underdeveloped countries by making loans without
guarantee of member governments as is now required in loans by
the International Bank.
This announcement was made today by Secretary of the Treasury
George M. Humphrey as Chairman of the National Advisory Council
on International Monetary and Financial Problems. The time for
submitting the proposal to the Congress will depend upon discussions with the International Bank and its members.
The corporation would be an intergovernmental body, created
by agreement open to signature by any member of the International
Bank. The corporation's initial capital would be provided by
member countries through subscriptions to its stock, but it would
be empowered to sell its obligations ana its portfolio securities
in private capital markets to raise additional funds. The
authorized capital of the corporation would be $100 million. The
subscription of each member country would be In relation to the
member's stock in the International Bank. The United States
subscription would be approximately $35 million. The charter
would not come into effect until $75 million had been subscribed
by a minimum of 30 countries.
The proposed corporation would not directly provide equity
financing. It would, however, be empowered to hold securities
bearing interest payable only if earned as well as debentures
convertible into stock when purchased from the corporation by
private investors. In that way it would operate in the area of
venture capital without holding equity right of control. It would
not compete with either the International Bank itself or the
Export-Import Bank.
Secretary Humphrey emphasized that the operations of such
a corporation would of necessity have to be experimental and
subject to review from time to time. Its success would depend
upon its effectiveness in stimulating an Increased international
movement of private funds, Secretary Humphrey said.

Confidential

- For official use only

tf-c %z

DRAFT PKBSS RKINASE
'mm*m*<»mm**~mtaikimiuia»al

nm*

'Wiinuiii

a^^-wani

The Administration vill ask Congressional approval for the
United States to participate la a proposed International Finance
Corporation which would be organized as an affiliate of the International Bank for Reconstruction and Development.
The purpose of the corporation vould be to stimulate private
investment In underdeveloped countries by making loans without
guarantee of mmmhmr governments as Is now required In loans by
the International Bank.
this announcement vas made today by Secretary of the Treasury
Oeorge H. Humphrey as Chairman of the national Advisory Council
on International Monetary and Financial Problems, fhe time for
submitting the proposal to the Congress will depend upon discussions with the International Bank and its members.
The corporation vould be an Intergovernmental body, created
by agreement open to,signature by any member of the International
Bank. The corporation's initial capital vould be provided by
member countries through subscriptions to its stock, but It vould
be empowered to sell Its obligations and Its portfolio securities
in private capital markets to raise additional funds. The
authorised capital of the corporation vould be $100 million.
The subscription of eaeh member country vould be In relation to
the member's stock In the International Bank. The United States
subscription vould be approximately $35 million.

The charter

vould not come into effect until $75 million had been subscribed
by a minimum of 30 countries.

- 2 The proposed corporation would not directly provide equity
financing. It vould* however, be empovered to hold securities
bearing Interest payable only If earned as veil as debentures
convertible into stock vhen purchased from the corporation by
private investors. In that way it would operate In the area of
venture capital without holding equity right of control. It
vould not compete with either the International Bank Itself or
the Export-Import lank.
Secretary Humphrey emphasized that the operations of such a
corporation would of necessity have to be experimental and sub
ject to review from time to time. Its success would dmpmmd upon
its effectiveness In stimulating an Increased International
movement of private funds, Secretary lumphrey said.

Confidential — For official use only
DRAFT PRESS RELEASE
The Administration will ask Congressional approval for the
United States to participate in a proposed International Finance
Corporation which would be organized as an affiliate of the InterNational Bank for Reconstruction and Development.
The purpose of the corporation would be to stimulate private
investment in underdeveloped countries by making loans without
guarantee of member governments as is now required in loans by the
International Bank.
This announcement was made today by Secretary of the Treasury
George M. Humphrey as Chairman of the National Advisory Council
on International Monetary and Financial problems. The time for
submitting the proposal to the Congress will depend upon discussions
with the International Bank and its members.
The Corporation would be an intergovernmental body, created
by agreement open to signature by any member of the International
Bank. The Corporation's initial capital would be provided by
member countries through subscriptions to its stock, but it would
be empowered to sell its obligations and its portfolio securities
in private capital markets to raise additional funds. The
authorized capital of the Corporation would be $100 million, 3he
subscription of each member country being i-n proportion to the
memberfs stock in the International /Bank. The United States
subscription would be approximately p>35 million. The Charter
would not come into effect until $75 million had been subscribed
by a minimum of 30 countries.
( .
, f
'
b i* '
^- ic^rzyy u\, SI*A. /v?yyy^irv\
£he general plan is QV\G proposed—by—the stall ul the International Bankr h»t with thn mnriif^pUxm.^hatnfhP proposed corporation
would not provide equity financing. It would be empowered to hold
Av
K
A
securities bearing interest payable only if earned as well as
debentures convertible into stock when purchased from the Corporation
by private investors. In that way it would operate in the area of
venture capital without holding equity right of control. It would not
compete with either the International Bank itself or the ExportImport Bank.

Secretary Humphrey emphasized that the operations of such a
corporation would of necessity have to be experimental and subject
to review from time to time. Its success would depend upon its
effectiveness in stimulating an increased international movement of
private funds, Secretary Humphrey said.
maturing Dills accepted in exchange and the Issue price of the new
bills.
The income derived from Treasury bill3, 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 k2 and 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 bilJs 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
oOo
conditions of their Issue. Copies
of the circular may be obtained
from any Federal Reserve Bank or Branch.

- 2competitive bids. Settlement for accepted tenders In accordance
with the bids must be made or completed at the Federal Reserve Bank
on November 18, 1954, In cash or other immediately available funds
or in a like face amount of Treasury bills maturing November 18, 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 ajnended 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 bilJs shall be sold, redeemed or
otherwise disposed of, and such bills are excluded from consideration
as capital assets. Accordingly, the owner oT 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.

RELEASE MORNING NEWSPAPERS.
Thursday, November 11, 1954.

H-627

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 November 18, 195k,
in the amount of $ 1,500,800,000,to be issued on a- discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated November 18, 1954,
and will mature February 17, 1955, when the face amount will be
payable without interest. They will be Issued in bearer form only,
and in denominations of $1,000,' $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Standard time,
Monday, November 15, 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

xxxxsxsxx
TREASURY DEPARTMENT
Washington

tU ^ L 2 7
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, November 11, 1954

~m "~ ' ~"
The Treasury Department, by this public notice, invites tenders for
% 1.500,000.000 3 or thereabouts, of
91 -day Treasury bills, for cash and
in exchange for Treasury bills maturing
$ l5500i800,000

November 18, 1954 , i n "the amount of

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

competitive bidding as hereinafter provided.
dated Jfoyember 18, 1954

> and m i l mature

The bills of this series will be
February 17, 19$$ , when the face

amount will be payable vdthout interest. They m i l be issued in bearer form only,
and in denominations of |1,000, $5*000, 1^10,000, $100,000, $500,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock p.m.. Eastern Standard time, Monday, November 1$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 m i l not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies arte1 from responsible and recognized
dealers in invistacnt securities. Tenders from others must bo accompanied by

- 2 -

mjmm\m\\mm.

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.
3jEHaediate2y after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be mads
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 whol^ or in part, and his action in any such respect
shall be final. Subject to these reservations, non-ccbipetitive tenders for
$200,000 or loss without stated price frcsa 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
conplcted at the Federal Reserve Bank on ggygjbgr l8s 1954 , in cash or
XS&L
other immediately available funds or in a like face amount of Treasury bills
maturing Bovegber 18, 1954 Cash and exchange tenders will receive equal
treatment. Gash 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 ox 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 trerfci^rit, is such, un/ier 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-

asm
but shall bo exempt from all taxation now or hereafter imposed on the principal

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. Ul8,/aE30SDEXHdaEt, and this notice, prescribe the terns 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.

STATUTORY DEBT LIMITATION
Washington, ??J.^.^.i£fl§3
Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under authority
or that Act, and the face amount of obligations guaranteed as to principal and interest by the United States (e

period beginning on August 28, 1954, and ending June 30, 1955, the above limitation ($275,000,000,000) shall be temporarily
increased by $6,000,000,000.
I^e. f°U°wing table shows the face amount of obligations outstanding and the face amount which can still be issued under
this limitations
Total face amount that may be outstanding at any one time
$281,000,000,000
OutstandingObligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills $19, 509, 222,000
Certificates of indebtedness.
Treasury notes
„
BondsTreasury
1
Savings (current redemp. value)..
Depositary.
.'.
Investment series .„
„
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:
Internal Monetary Fund series
....
Total

18 ,184, 192,000
40,953.967.600
84,181,060 , k$0
5° ,125, 962,890
421,546,000
12,700,609.000
28 ,718,441,000
13,519,844,400

$ 78,647,381,600

1 5 5 , ^ 9 . 1 7 ^ .3^0

42,238,285,400
276,314,845,340
J^-J* J*J* i*-}

^"7, 3 6 5 , 0 1 8
•*•»±J ( »«.?<1,5^,000,000

1.592,562,850
278,220,951.915

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures; F.H.A
32,600,536
Matured, interest-ceased
1,014,475
Grand total outstanding
Balance face amount of, obligations issuable under above authority
L„

33,615,011
278,254,566,92b
*-1f4p,433»" j 4

;

October 31, 195^
Reconcilement with Statement of the Public Debt
(Data)

October 29 1954
(Daily Statement of the United States Treasury,
f*
1
'
(Data)
Total gross public debt 27g. 752, ©52,474
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-626

if.. ...J

33,615,011
278, 785,667,485
5 3 1 . lOOjj"
278,254,566751

STATUTORY DEBT LIMITATION
AS wflfittattJI—195*

-toTMfter 10,1951*

Washington,
•••<
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 ( ex "P* n s n u * : ° | u a t ~
anteed 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 Act of August 28, 1954, (P.L* 686-83rd Congress) provides that during the
period beginning on August 28, 1954, and ending June 30, 1955, the above limitation ($275,000,000,000) shall be temporarily
increased by $6,000,000,000.
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
$281,000,000,000
OutstandingObligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills $19,509,222,000
Certificates of indebtedness.
18,184,192,000
Treasury notes
40,953,967,600 $ 7«,647,3«1,600
Bonds'
Treasury
84,181,060,450
Savings (current redemp. value)
9 ° » J-O, \TOC. toy\J
Depositary.
421,546,000
Investment series..
12,700,609,000
155,429,173,3^0
Special FundsCertificates of indebtedness
Treasury notes.
To.,1 in,ereSt-b«arfn8
Matured, interest-ceased
Bearing no interest:
United States Savings Stamps
Excess profits tax refund bonds
Special notes of the United States:
Interna.-! Monetary Fund series
Total

.
28,718,441,000
13,519,844,400
-

42,238,285,400
27t>, 31t, 845 , 3 ™
J*"J» J>*J» x^O

^7, 365»018
±.±J I ,«e)&
1,5^,000,000

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A
32,600,536
Matured, interest-ceased
1,014,475
Grand total outstanding
Balance face amount of, obligations issuable under above authority

1.592,562,850
278,220,951,915

33,615.011
278,254,566,926
*-, )4p, '33,074

;

October 31, 1954
Reconcilement with Statement of the Public Debt
(Date)

(Daily Statement of the United States Treasury,

.?.?.*°?.?£..??.»...i§5„.

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

H-626

J
278, 752,052,474
33,615,011
278,785,667,^85
531.100 r 5^9
278.254,566,926

24
TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Monday, November 8, 195^.

H-D25

A sales goal of "5 billion 5 for '55" was announced today
at an annual conference of savings bonds volunteer leaders and
Treasury Savings Bonds Division officials, held at the
Mayflower Hotel.
The conference, which will continue over Tuesday, is being
attended by all volunteer state chairmen, heads of volunteer
national committees representing national organizations and
major financial, industrial, and investment fields, and by
members of the Savings Bonds Division state staffs.
Treasury Secretary Humphrey addressed the conference briefly
this morning. He congratulated the volunteer groups on their
effective work as bond salesmen this year. Sales for the present
calendar year are running at a rate of approximately 12 percent
higher than in the calendar year 1953* and the 195^ sales goal
of "A billion more in x5k" is being closely approached.
The total sales goal for 1952* is $5.3 billion compared
with actual 1953 sales of $4.3 billion.
Secretary Humphrey said: "To be perfectly frank, I think
the slogan of fA billion more in fifty-four * was a pretty
ambitious one. We are running a little behind on it, but the
accomplishments so far are excellent. I congratulate you on
them."
The Secretary said, "We are still sticking to the slogan,"
and expressed hope of an even better final 195k showing than the
one so far.
Earl 0. Shreve, National Director of the Savings Bonds
Division, described the progress of the savings bonds program
to the conference.
Arno Johnson, advertising agency executive, discussed the
business outlook for 1955 during the Monday morning program.
Tilliam H. Neal, Chairman of the American Bankers Association
Savings Bonds Committee, spoke on "The Banker's Part in the
Savings Bonds Program."
William McChesney Martin, Chairman of the Board of Governors
of the Federal Reserve System, addressed the conferees at
a luncheon in the Williamsburg Room oi the Mayflower.

oOo

.•^-^^•*^»mv^XrmMXimummmmJSSmn.

yy*y

I ••'•IW.i,i,ii»/.ui

A sales goal of w/fe billion £ for $$n was announced today at an annual
conference of savings bonds volunteer leaders and Treasury Savings Bonds Division
officials, held at the Mayflower Hotel*

The conference, which will continue over Tuesday, is being attended byall_ *
l^il^y^C 0</Jt*i-*>}, £ZmZt>*^3 &
volunteer state chairmen, heads of volunteer national committees representing^
\
major financial, industrial, and Investment fields, and by members of the
Savings Bonds Division state staffs*
Treasury Secretary Humphrey addressed the conference briefly this morning*
He congratulated the volunteer groups on their effective work as bond salesmen
this year* Sales for the present calendar year are running at a rate of approximately 12 percent higher than in the calendar year 19$3, sad the 19$k
sales goal of *A billion more in Ptf I /• Pimp* is being closely approached*
Secretary Humphrey said: "To be perfectly frank, I think the slogan of
"A billion more in fifty-four" was a pretty ambitious one. We are running a
little behind on it, but the accomplishments so far are excellent* I congratulate
you on them."
The Secretary said, "We are still sticking to the slogan," and expressed
hope of an even better showing than the one so far*
Earl 0* Shreve, National Directed of the Savings Bonds Division, described
the progress of the savings bonds program to the conf erence0
Arno Johnson, advertising agency executive, discussed the business outlook
for 1955 during the Monday morning program*
William H* Neal, Chairman of the Ameri can Bankers Association Savings Bonds
Committee, spoke on "The Banker* s Part in the Savings Bonds Program*11
William McChesney M§rtin, Chairman of the Board of Governors of the
Federal Reserve System, addressed the ^crlerees at a luncheon in the Williamsburg
Room of the Mayflswero

£f.s

//fy<

/z£^

y^rs s^*

J&€&? '.

~C£ <*^0m *~o

<L*~*«^y'^fcA^Z^--

sf &<y-<3

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday,November 9, 1954.

H-624

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 90-day Treasury bills to be
dated November 12, 1954, and to mature February 10, 1955, which were
offered on November 4, were opened at the Federal Reserve Banks on
November 8.
The details of this issue are as follows:
Total applied for - $2,215,088,000
1,500,452,000 (includes $249,416,000
Total accepted
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.765/ Equivalent rate of discount approx.
0.940$ per annum
Range of accepted competitive bids:
- 99.770 Equivalent rate of discount approx.
0.920$ per annum
Low
- 99.764 Equivalent rate of discount approx,
0.944$ per annum
(96 percent of the amount bid for at the low price was accepted)
High

Total
Applied for

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

TOTAL

$ 52,661,000
1,527,306,000
29,419,000
48,397,000
17,897,000
24,718,000
209,006,000
29,213,000
34,160,000
70,831,000
69,174,000
101,806,000
$2,215,088,000
0O0

Total
Accepted
43, 239,000
923,566,000
14,419,000
41, 034,000
16,859,000
23, 266,000
182,266,000
24,579,000
27, 010,000
67, 064,000
55, 061,000
$1,500,452,000
82, 089,000

I ri

tHat the hsmdmws tow $1,900,3)0.000,
22, ISft, sal to
fe, were ops-apt at tbt

£2* 225,038,000
1,500,1*52,000

l^^yS,^^

0,«tf

<i6

of tn@ M u n i UA iaw a& ma

52,661,000

Wmlmk
tf^lf,^0

Riilsdtltihla

k392399O0Q
923,566,000
Hb^,O)0

to,qft,o^
209,006,000
29,213,000
3t*,l6O,O00

City

n9miyxo
T€f4L

69.i7k9om
101,806,000
|2,225»063,O0O

16,85^,090
23,266,300
182,266,000
2fi,579,QQ0
27,010,000
67,06b, 000
55,061,000
32,089,030
$1,500,
it52,DD3

- 2 competitive bids. Settlement for accepted tenders in accordance
v/ith the bids must be made or completed at the Federal Reserve Bank
on November 12,1954, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing November 12, 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 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
oOo
conditions of their Issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

TREASURY DEPARTMENT
WASHINGTON, D C .

RELEASE MORNING NEWSPAPERS,
Thursday, November 4, 1954.

H-623

The Treasury Department, by this public notice, invites tenders
for $ 1*500,000,000, or thereabouts, of 90-day Treasury bills, for
cash and in exchange for Treasury bills maturing November 12, 1954,
In the amount of $1,500,754,000, to be Issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated November 12, 1954,
and will mature February 10, 1955 when the face amount will be
payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Standard time,
Monday, November 8, 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 ofthe 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

TREASURY DEPARTMENT
Washington
FOR yELEASE, ::ORNI:;G :3E7;S?A?ERS,
Thursday, November J^ l$$k
•

H-C*3

The Treasury Department^ by this public notice, invites tenders for
£ 1,500,000,000 , or thereabouts, of 90 -day Treasury bills, for cash and
in exchange for Treasury bills maturing November 12, 195* >

the amount of

fit
£ 1,500,75k,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 November 12, 195b , and TD 11 mature February 10, 1955 , vd-en the face

a.ount will be payable v.Itiiout interest. They will be issued in bearer form onl
and in denominations of £1,000, $5,000, £10,000, £100,000, £500,000, and
$1,000,000 (maturity value).
Tenders Yri.ll be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock r>.m., Eastern Standard time, Monday. November 8, 195U

Tenders YD. 11 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, Yrith 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 Yri.ll
supplied by Federal Reserve Banks or Branches on application therefor.
Others tnan banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received Y/ithout deposit from
incorporated banks and trust companies and from responsible and recognized
dcaljrs in inv^tm_.nt securities. Tenders from others must be accompanied by

- 2 -

paj'ment of 2 percent of the face amount of Treasuiyy 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 Yri.ll be opened at the Federal

Reserve Banks and Branches, following Y/hich public announcement Yri.ll be made
by the Treasury Deportment of the amount and price range of accepted bids.

Those submitting tenders Yri.ll be advised of the acceptance or rejection there
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 Yri.ll 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 November 12, 1951* s ^-n cash or

st— —

other immediately available funds or in a like face amount of Treasury bills
maturing November 12, 195k » Cash and exchange tenders Yri.ll receive equal
xxx
treatment. Cash adjustments will be made for differences between the par
value of maturing bills accepted in exchange and the issue price of the noYf
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.-s anv social treatment, as such, under the Internal Revenue Code, or
lavs a^ndatory or supplementary thereto. The bills shall be subject to
estate, inheritance, gift or other excise taxes, Yvhcther Federal or State,

-3-

gnus
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 19hX3 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 OY/ner 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^nal issue or on subsequent purchase,
and the amount actually received either upon sale or rede:-vption at maturity
during the taxable year for which the return is made, as ordinary gain or loss.
Revised
Treasury Department Circular No. Ul8,/s3x8^&kssfc, 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
WASHINGTON, D.C.
FOR RELEASE 6 P.M.,
Monday, November I, 1954.

H-622

STATEMENT BY TREASURY SECRETARY HUMPHREY

Treasury Secretary George M. Humphrey today issued the
following statement on the employment and business situation:
"Reports of improving business and employment are
multiplying.
"A recent survey by the Department of Commerce
indicates that orders placed with manufacturers
exceeded their shipments during September. The rise
in orders continued In October according to a survey
just released by the National Association of Purchasing
Agents, This is in line with the reports of increases
in employment that keep flowing into the Department of
Commerce and the Department of Labor from all over the
country.
"Additional encouraging news comes from the
Department of Economics of the McGraw-Hill Publishing
Company. I have just been informed that preliminary
results of its nation-wide survey of prospective
plant and equipment expenditures indicate that spending
on industrial and commercial facilities during 1955
will be above this quarter's level.
"All of this and other evidence indicates that
employment, Incomes, and trade in 1955 will be at
even higher levels than In 195^, the best peacetime year in history."

oOo

For Release 6 P.M.
Monday, November 1, 1954

,,
/ ''

STATEMENT BY TREASURY SECRETARY HUMPHREY
Treasury Secretary George M. Humphrey today issued the
following statement on the employment and Business situation '
Reports of improving business and employment are multiplying.
y

p'fA recent survey by the Department of Commerce indicates that
y

orders placed with manufacturers exceeded their shipments during
September. Theupsef^ge in orders continued in October according
to a survey just released by the National Association of Purchasing
Agents. This g^ugj uf UJlBCuLl^e^^Butuunfiua the reports ojf^ increases in employment that keep flowing into the Department of Commerce and the Department of Labor from all over the country,
\ Additional encouraging news comes from the Department of Economics
of the McGraw-Hill Publishing Company. I have just been informed that
preliminary results of its nationwide survey of prospective plant and
equipment expenditures indicate that spending on industrial and commercial facilities during 1955 will be above this quarter's level.
* from t
employmen

\
All of this and other evidence indicates that
employment, incomes, and trade in 1955 will be at even
higher levels than in 1954, the best peacetime year in
history."

TREASURY DEPARTMENT
WASHINGTON, D.C
KhLEASS I'ORNING NEWSPAPERS,
Tuesday, November 2, 1954.

H-621

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated November 4, 1954, and to mature February 3, 19553 which were
offered on October 2c, were opened at the Federal Reserve Banks on
November 1.
The details of this issue are as follows:
Total aoolied for - $2,l64,6l5,000
Total accepted
- 1,500,636,000 (includes $207,336,000
entered on a noncompetitive
basis and accepted in full
at the average ^rice shown
below)
Average Price
- 99.741/ Equivalent rate of discount approx.
1.023/<? per annum
Range of accented competitive bids: (Excepting one tender of
$50,000)
High
- 99.755 Equivalent rate of discount approx.
0.yo9p per annum
C O *"7QC
Low
"" - / > • I ^M^
yuivalent rate of discount approx.
1.033$ P e r 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
$
35,900,000
1,535,503,000
29,173,000
67,362,000
±5 3 ^0^ 3 V\sU

29,702,000
2?6,741,000
25,257,000
14,^68,000
27,730,000
37,147,000
$2,164,616,000
65,705,000
0O0

Total
Accepted
34,780,000
925,543,000
13,553,000
60,712,000
19,853,000
29,154,000
241,159,000
25,257,000
14,483,000
27,560,000
',225,000
2b,527,000
$1,500,836,000

/^•-

R E I M ^ WBMim
Tuesday, Kovember 2, 195k.

rarSPASKRS,

f "*~

The treasury Department announced last eveiling that ta@ tenders for $3,500, GOO, 0G0,
or thereabouts, of 91-day Treasury bUls to be dated Eoveaber k9 19$k, and to mature
February 3, 1%$, which were offered on October 2<35 were opened at the Federal Reserve
Banks on November 1.
The details of this issue are as follows:
Total applied for - |2,loi»616#Q00
Total accepted
- 1,500,836,000

Average Price

(SmlMea 1207,336,000 entered on &
noncompetitive basis and accepted la
full at the average price shewn below)
- 99• Till/ B p i m l & a t rat® of discount approx* 1.0832 per annum

Range of accepted eoapetitive bids?

(Excepting one tender of $50,000)

High - 99*7$$ Iquivalest rate of discount approx* 0*969$ pa
ff
- 99.739
a n a
«
1.033^ "
(38 percent of the amount bid for at the low price was accepted)
Federal Heserv®
District^

Total
Aypiled_for

Total
Accepted

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

3^,^00,000
19$3$,$039QOQ
29,173,000
67,362,000
19,858,000
29*702,000
276,71*1,000
25,2^7,000

Hi, i$e,ooo
27,780,000
37,347,000
85,705,000
|2,l8ii,6l6,000

3U,780,000
925,51*3,000
13,553,000
6o,71t,0OG
19,858,000
29,151*, 000
2IA»159,000
25,257,000
Hi,U38,000
27,580,030
28,527,0 X)
-j J, 225,000

•1,5-00,636,000

- 2 competitive bids. Settlement for accepted tenders In accordance
v/ith the bid3 must be made or completed at the Federal Reserve Bank
on November 4, 1954, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing November 4, 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 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 not
be considered to accrue until .csuoh bills shall be sold, redeemed or
otherwise disposed of, and suoh 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 di ITerence 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.

TREASURY DEPARTMENT
:xuu.^3L^m.uia\fi

WASHINGTON, D.C

RELEASE MORNING NEWSPAPERS
Thursday, October 28, 1954.

H-620

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 November 4, 1954,
in the amount of $1,500,909,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated November 4, 1954,
and will mature February 3, 1955, when the face amount will be
payable without interest. They will be issued in bearer form only,
and In denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Standard time,
Monday, November 1, 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 ofthe 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

£QG3EH
TREASURY DEPARTMENT
Tyashington

~~h&*

FOR RELEASE, MORNIHG NEWSPAPERS,
Thursday, October 28, 195k
The Treasury Department, by this public notice, invites tenders for
• l«5QQfgOQ«QQQ ,

thereabouts, of o\ -day Treasury bills, for cash and

in exchange for Treasury bills maturing Bovember k, 195k ,

the amount of

5Bf»
$ 1,500,909,000 J to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated November k? 195k > and* mil mature February 3, 1955 , when the face

amount will be payable vjltliout interest. They will be issued in bearer form onl
and in denominations of $1,000, $£,000, $10,000, $100,000, $500,000, and
•1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the

closing hour, two o'clock p.m., Eastern Standard time, Henday, Hevember 1. 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*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-str.unt securities. Tenders from others must be accompanied by

- 2-

xxm
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 Deportment 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 throe 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 November k, 195k s in cash or
„—

TTf-——~——

other immediately available funds or in a like face amount of Treasury bills
maturing November k, 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 fro-: the sale or other disposition of Treasury bills shall
not hav : any social treatment, as such, unmcr the Internal Revenue Code, cr
lavs amendatory or supplementary thereto. The bills shall be subject to
estate, inheritance, gift or other excise taxes, whether Federal or State,

-3 rag

hut fim*~i] be exezspii -Eras ^»~n taxation now or hereaftor ioposad on the pri

or interest thereof by any State, or any of the possessions of the United State
or by any local taxing aui&ority. For purposes of taxation tiie aoount of dis-

count at T*hich Treasury hillfi are os^ ginailXy sold by the IBsited States s^~
considered to be interest- Under Sections ij2 and 1X7 (a) (1) ox the Internal
Revenue Code, as tended by Section H5 of the Revenue Act of I9i|lj the anoint

of discount at "^hri.igh hills* Issued hereunder are sold sh-i"n not be conside
accrue until such bills «h«"n he sold, redeesad or owheriilse disposed of, and
such bills are excluded frc& consideration as capital assets. Accordingly,

the aisiK.T of Treasury bills (other than life Insurance companies) Issued here
under need Include in bis Income tax return only the difference between the

price paid for such bills, Thetaer on ori«pnal issue or on subsequent purchase,
and the cudunb actually received either upon sal-; or ^edee^tion at maturity

during the taxable year for nhich the return is iaade, as ordinary gain or loss
Revised
Treasury Department Circular Mo. l£LS,fiftmnnffltnrtrj and this notice, prescribe the texss of the Treasury hills and govern the conditions of their
issue. Copies of the circular nay be obtained free any Federal Reserve Bank
or Branch.

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, October 26, 1954.

K-619

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated October 28, 1954, and to mature January 27, 1955, which were
offered on October 21, were opened at the Federal Reserve Banks on
October 25.
The details of this issue are as follows:
Total applied for - $2,121,399,000
1,500,637,000 (includes $214,773,000
Total accepted
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
_ 99,746 Equivalent rate of discount approx.
1.007$ per annum
Range of accepted competitive bids:
- 99.756 Equivalent rate of discount approx.
0.965$ per annum
Low
- 99,743 Equivalent rate of discount approx.
1.017$ per annum
(25 percent of the amount bid for at the low price was accepted)
High

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

Total
Accepted

Total
Applied for
$
21,453,000
1,473,970,000
43,172,000
84,283,000
19,439,000
23,745,000
216,040,000
19,585,000
11,690,000
48,362,000
40,756,000
$2,121,899,000
119,204,000
0O0

17,053,000
909,233,000
28,172,000
84,183,000
18,064,000
22,870,000
190,790,000
19,585,000
11,240,000
46,162,000
40,156,000
111,079,000
$1,500,637,000

RELEASE MORNING NEWSPAPERS,
Tuesday, October 26, 19$k*

(7 ~ V / '

The Treasury Department announced last evening that the tenders for #1,500,000,000,
or thereabouts, of 91-day treasury bills to be dated October 2 *, 195ii, and to mature
January 27, 1955* which were offered on October 21, were opened at the Federal Beserve
",yj

Banks on October 25.
The details of this issue are as follows:
Total applied for - #2,121,699,000
Total accepted
- 1,500,637,000 (includes #211*,773,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
Average price
- 99-7l|6 Equivalent rate of discount approx. 1.007^ per annum
Range of accepted competitive bids:
High - 99.756 Equivalent rate of discount approx. 0*96$% per annum
n
Low
- 99.71*3
" n
*
"
1.017*
(25 percent of the amount bid for at the lew price was accepted)
Federal Heserve
District

Total
Applied for

Total
Accepted

Boston
New lork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco

$ ZL,1*53,000
1,1*73,970,000 .
1*3,172,000
8i»,283,000 :
19,1*39,000.
23,715,000 ,
216,01*0,000 19,585,000
11,890,000 ,
1*8,362,000
1*0,756,000 .
119,20k,Q00 4

•

#2,121,899*000 -

#1,500,637,000 -

Total

17,053,000 .
909,263,000
28,172,000
8u,l83,000
18,061*,000
22,870,000
190,790,000
19,585,000.
11,21*0,000 •
1*8,162,000 *
1*0,156,000 ,
111,079,000 ,

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Monday, October 25, 1954.

H-6l8

Customs Commissioner Ralph Kelly today announced
changes in customs regulations which will effect a
substantial reduction in the number of documents
required of importers. He said both foreign traders
and the Customs Service would benefit from the
reduction in paper work — a major objective of the
Bureau's continuing management improvement program.
The new regulations require fewer certified invoices, which list such information about imports as the
names of the shipper and consignee, selling price of the
merchandise, its character, amount to be shipped, etc.
The foreign manufacturer or producer pays a consular
fee of $2.50 to have the invoice certified before the
nearest United States consul.
The Bureau of Customs took an initial step toward
relaxing the certified invoice requirement in 1950.
Exemptions from the requirement have applied to
merchandise that is free of duty or subject only to a
specific rate of duty not dependent upon value. The
new regulations extend exemptions to all importations
not exceeding $500 in value even when the rate of duty
depends upon value. The value of shipments exempted
from certified invoice requirements when not imported
for sale has been increased to $1,000.
Customs officials have estimated that the new
regulations will eliminate certified invoices for
approximately 10 percent of the number of shipments
presently requiring such invoices. Studies are continuing
to determine what further reductions in paper work, including additional exemptions from consular invoices, may
be authorized.
The new regulations are embodied in Treasury
Decision 53638, which appears in the Federal Register
of October 26, 1954.
0O0

£ U&~tW

'try
0^l\jh&xrm^xr9~^k$%&
~y£r opo e ed -Fi>—#—ft*»l easygu „,
Customs Commissioner Ralph Kelly today announced changes
in customs regulations which will effect a substantial reduc~
tion in the number of documents required of importers*

He said

both foreign traders and the Customs Serrice would benefit from
the reduction 1m paper work -•» a major objective of the Bureau's
continuing management Improvement program*
The new regulations require fewer certified invoices, which
list such information about imports as the names of the shipper
and consignee, selling price of the merchandise, its character,
amount to be shipped, etc*

The foreign manufacturer or pro-

ducer imat pay* a consular fee of #2*50 to have the invoice
certified before the nearest United States consul*
The Bureau ©f Customs took an Initial step toward relaxing
the certified invoice requirement in 1950, Exemptions from
the requirement have applied to merchandise that is free of
duty or subject only to a specific rate of duty not dependent
upon value*

The new regulations extend exemptions to all

Importations not exceeding #500 in value even when the rate of
duty depends upon value*

The value of shipments exempted from

certified invoice requirements when not imported for sale has
been Increased to #1,000*

- 2 Customs officials have estimated that the new regulations
will eliminate certified Invoices for approximately 10 percent
of the number of shipments presently requiring such invoices*
Studies are continuing to determine what further reductions in
paper work, including additional exemptions from consular
invoices, may be authorized*
The new regulations are embodied in Treasury Decision 53638f
which appears in the Federal Register of October 26, 19540

- 8believe in your capacitor to go on providing yourselves with an
ever better life, if we in government support your efforts
where the general welfare calls for such support, and do NOT
load you with unnecessary burdens, or take from you by
excessive taxation the increase in your income that you might
otherwise earn and save.
Realistic economic policies that take account of the
true nature of our economy and the burdens it must bear, will
bear big fruit.
We will NOT be rising on the hot, uncertain air of
inflation. Nor will we be wearing the false, rose-colored
glasses of a prosperity based on unwise and dangerous government
deficit spending, treacherous alike to the nation's security
and its economic health.
We will be rising on the solid ground of these things:
Savings protected against shrinkage by a stable dollar;
Increased production and increased wages and earnings
made possible by the investment of those savings in more*
new and better tools of production;
Wide use, by Americans who are both workers and investors,
of these tools of production for the creation of more jobs and
new, better and cheaper goods, with ever-widening distribution
among an ever-growing number of consumers as their earning
power Increases and the cost of the goods declines;
Use of the increased income from this increased production
of the things you want -- NOT to pay the bill for uhneeded or
unwise government spending, or as tribute to inflation, but
for the creation of a better life for all.
Me have turned our backs on artificial stimulants. We
have turned our faces confidently to practical, natural
methods for the creation of a better life for ail of us — firm
in the belief that continuation of the process of the American
evolution of self-betterment from the bottom up is second
nature to our whole people.

0O0

- 7Our strong economy must -- and can -- carry the costs of
fully adequate defense, and of indispensable public services,
and at the same time continue its healthy growth. But it will
only be able to do so if vie balance the load correctly, so that
it can be carried, and carried indefinitely, without a breakdown.
We have devised policies to fit our new situation and have
begun to balance the load.
We are NOT the slave of any particular aspect of our
flexible policies. We regard inflation as a public enemy of the
worst type. But we have NOT hesitated, either, to ease or restrict
the basis of credit when need was Indicated. Under the new
cooperation that exists in this administration between the
Treasury and the Federal Reserve, the full force of monetary
policy -- has been made effective more promptly than ever before
in the nation's history to better respond to natural demands.
We found when we came to office an overblown economy. It
was harnessed with all sorts of artificial controls, dangerously
dependent upon the uncertainties of defense spending, and
inflationary pressures. It was borrowing from tomorrow's
production and income at a prodigious rate, with unsound
confiscatory taxation that still failed to provide for the
profligate spending. This resulted in huge deficits that were
passing the heavy burden of cur excesses on for our children
and grandchildren to bear. And sooner or later it was sure
to result in complete downfall.
Correction of that situation has been well started.
The whole economy, the livelihood of all the people, has been
made more safe. This has been done by the timely use of
monetary policy and credit in response to actual demand; by the
return to the public of purchasing power through the biggest
tax cut in the history of the nation, by cutting unjustified
amounts from government spending; and at the same time by timely
encouragement to construction, home building, and needed
improvements. By the prompt and vigorous use of all these
measures we have made the difficult and delicate change from
a dangerously artificial economy to a healthy one, with every
effort exerted to the utmost to involve the very minimum
of cost in terms of unemployment meanwhile.
In turning our faces resolutely from inflation, and
unrealistic spending, what have we turned toward?
We have turned to you, to the 160 million people of America.
We have turned with full confidence to a people that have
demonstrated that you are industrious, saving, inventive, daring,
progressive and self-reliant to an unprecedented degree. We

• 2 i- 3
- 6contributing either work or money to a pension fund or fraternal
order or in any other way -- you will get from your Investment
the same value that you toil now to put into it.
The man in the bungalow and the man In the penthouse have
at least an equal interest in this fight. But, if there is any
difference between them, it is the man in the bungalow who most
needs protection. He can less afford to lose.
Now, it is the vast sum of the x:isny smaller savings of
the man In the bungalow on which our industrial and commercial
system depends for Its financing. The sum of all the little
savings is funneled mainly into big investments by the savings
banks, the building and loan associations, the insurance
companies, investment trusts, pension funds, union and fraternal
organizations, and others handling the savings of the man in
the bungalow.
Business in this country is pouring nearly 27 billion dollars
of new investment into its plants and equipment this year. That
tremendous amount must come from somebody's savings. Without it,
the future's new jobs will never be born, nor will we get
tomorrow's increase In productivity, as the result of new and
better tools of production, bought by new investment.
Saving is important to the nation, and must be encouraged,
not discouraged, because it strongly influences the security of
the job you have, and your hopes for ever-better pay through
continued increase in your productivity. Thus you can see how
inflation can rob you not only of your personal savings but, in
addition, steal away your pay increases and perhaps even your job.
We must have policies that put solid ground under our
day-to-day evolution of continual betterment from the bottom up.
Such policies must aim at everyone, spreading the riches throughout the land. There is only one way to have everyone have more.
The nation's treasures of goods and services must constantly
increase, by continually increasing individual productivity,
so that they can be spread ever deeper and broader throughout
the whole economy.
Our policies must result in giving the man In the bungalow
ever more and more of the same things which the man in the
penthouse also wants to have. And that can only be accomplished
by an economy that constantly produces more of the comforts,
conveniences and necessities of life. Such an economy will not
only be of direct benefit here at home, but will also be a
beacon of progress in the whole Free World, a sharp, attractive
contrast to the smouldering darkness behind the Iron Curtain.

- 5 -

<:£

The consequence of this brilliant human achievement in
our nation is that the basic interests of the man in the
bungalow are today the same as the basic Interests of the man
in the penthouse.
Business long ago recognised this fact, and centered its
attention on the wants and need£ of the man in the bungalow.
It is time that we all caught up with the facts of life in
this nation.
Let's see how the man in the bungalow and the man in the
penthouse today have the same barsic interests and what that
revolutionary fact means to the uhole economy:
Both men have current earnings and probably savings in
one form or another. That means that both are interested in
seeing the dollar keep its purchasing power. To the extent that
inflation develops, both men are robbed.
If you had $1,000 saved up in 1939, which you did not draw
out to use until 1953, you really ;ook a beating. Inflation
had sneaked into your savings duri lg those years and made off
with $473. How? Because inflatio lary price rises during that
time cut the purchasing value of tie dollars you were saving,
every minute of every day. When you drew out your $1,000 savings,
inflation had stolen away with all but $522 of the purchasing
power your dollars had when you put them aside in 1939.
This is a terrible thing to happen to a nation of people
who are working and sweating and scrimping to put aside money
for the education of their children, the purchase of a home,
or to provide for their old age.
The man in the bungalow often tries, by purchasing insurance,
to build up some security to leave to his wife and children
in the event of his untimely death. It is a terrible thing
to have the purchasing power of his insurance -- the time that
It.will pay the rent and set the table for those that are left -cut nearly in half In the short period of just 15 years.
It is a heartless thing for a man and woman who put aside
savings in a pension or retirement trust fund as they work
during their lifetime to find on retirement that inflation has
robbed them of nearly half of what they had invested to live
on in their declining years.
We in the Eisenhower Administration have made halting
inflation one of the principal goals of our Administration. In
the last 20 months, the value of the dollar has changed only
one-half of one cent. This means that we have kept inflation's
hand out of your savings almost entirely. We went to keep
inflation locked out, so that when you save -- by putting money
in the bank, by buying a savings bond, by buying insurance, by

oo y
- 4Small investors' holdings in United States Savings Bonds, total
the huge amount of nearly 50 billion dollars. No such investment
existed in 1900.
Let's see some other ways in which the average man on the
street in this nation has been making himself over into a
real investor - - a man with a real financial stake in the
future such as no other average citizen anywhere ever had before.
Nearly 10 percent of all American families today own stock
in American corporations. At the turn of the century, this was
just getting underway.
In 1900, individuals had liquid savings of all types
amounting to less than 10 billion dollars. Now such savings of
individuals in this country total more than 225 billion dollars.
Last year alone, Americans bought equipment for themselves
and their homes of approximately 30 billion dollars. This
included things unknown to the homeowner of 1900, like 6 million
radios, 7 million television sets, nearly 4 million refrigerators,
about 3-1/2 million washing machines, and a million air
conditioners. These are mass investments in a better life
only a nation of "haves" could make.
About 25 million families own their own homes today,
compared with only 7 million homeowners half a century ago,
while population has only a little more than doubled in that
time. About 55 percent of our families now live in homes of
their own. Nearly all the others want to. And ways and means of
helping them to do so are of greatest concern in present
government policy.
Labor unions to which many American workmen pay dues,
are also investors. Not so many years ago, union treasuries
were low. Today many of them bulge with huge sums. They own
banks and buildings, bonds and stocks, and investments of many
kinds.
Today nearly 15 million Americans have more than 25 billion
dollars invested in pension and retirement trust funds. This
represents an investment cf more than $1,500 per worker. These
retirement plans were practically unknown in 1900.
You can see from those few examples what has been happening
to the individual and the family in our wonderland economy.
We need a completely new set of standards in thinking about
ourselves. We are a nation of "haves," not of "have-nots".
This nation's economy has grown right over, and has left behind
in the dust, both socialism and communism.

- 3-

£. &L s_

Let's look back to the turn of the century and see what
has been happening, economically, since then. Only by making
such a comparison can you realize how outmoded a line of
thought, only a few years old, can be when applied to our
economy, and how alert we must be not to let out-of-date thought
and practices tie us down while opportunity passes us by.
Our total natjonal production of goods and services this
year will come to about 355 billion dollars. That is 17 times
as much as our national output in 1900. When you make allowance for price rises since the turn of the century, today's
national production is still six times what it was in 1900.
Our population has more than doubled since 1900, but our
national output per capita -- production per man, woman and child
in the nation -- is three times what it was then.
Our national income this year will be about 300 billion
dollar's. After allowance again for price changes, this is six
times what it was in 1900. And our income per man, woinan and
child in the whole population is, like production, three
times as big as in 1900.
Here is the important thing about that income change since
1900. The lower and middle income groups have received the
greatest share of our increased Income. Early in the century,
only 10 out of every 100 American families earned as much as
$4,000 a year in terms of today's prices. Now 55 out of
every 100 families earn more than $4,000 a year. Those with
inadequate incomes for a decent living are becoming fewer and
fewer, and more and more of them are becoming "haves" -people who have enough money not only to live adequately, but
to save besides. That Is the basic economic development in this
country which we are trying most fervently to keep going, and
to continually improve.
Let's see just how widespread and important this flow of
purchasing power to the broad base of our economy has been
and will continue to be.
One of the most common methods of saving is the purchase
of insurance. At the turn of the century, people in this
country had taken out 14 million life Insurance policies.
Today, with the population only slightly more than doubled,
and with many people owning several policies, the number of life
insurance policies has increased nearly 18 times, to 250 million.
Ownership of individuals in their life insurance has
increased from under 2 billion dollars in 1900 to 80 billion dollars
today.

As a result, we found the economy blown up with the hot
air of inflation, to a point where there was real danger that
it might burst, letting us all down with a crash that would
have maimed us as a nation, and dropped the free world's
defenses invitingly low.
We found the economy's growth hampered and hobbled by a
tangle of successive layers of regulations, controls, subsidies
and taxes imposed in past emergencies. The economy was being
twisted into the shape of things past, when it should have been
reaching freely for its rightful future.
In addition, we found defense spending being used partly
to buy defense, and partly as a crutch to support an unsound
economy, thereby endangering both defense and the economy.
In other words, we found an economy going stale, out of
step with the times and out of step with the nation It had to
serve, an economy fearful of the ghosts of bygone crises, living
precariously on the treacherous dodges of inflation, subsidy,
and excessive crash-and-crisis government spending.
We have been reshaping this government's economic policies
into the policies required fox* a strong and forward-looking
nation, its economy firmly footed and self-supporting; an
economy that will pump a continuous new flow of nourishment into
the day-to-day American evolution of self-betterment; an economy
that will constantly generate new and better paying jobs for an
ever-growing population. At the same time our economy must
provide an ever-higher standard of living, plus the social
services the people want and need, as well as the men and the
weapons the nation must have for its defense.
Now, let's look at what you millions of American citizens
have been making of our economy, how you have been creating
the world's most successful and beneficial economy, and what
we in the government are now doing to see that you have every
possible opportunity to press forward and continue making a better
life for all.
All hands in our nation -- labor unions and the employer,
the rich and the poor, both major parties, the farmer and the
city man, the woman at home and the man at his job -- all have
had a part In making our new productive way of life.
The point now is that this peaceful evolution has resulted
in a tremendous upheaval of this nation's whole economy that
really has created a different kind of nation, a unique nation of
"haves" that needs an up-to-date way of thinking about itself,
and up-to-date policies, in keeping with its strength and growth
potential.

TREASURY DEPARTMENT
Washington

FOR RELEASE AT 6 P.M.
Thursday, October 21, 1954.
Remarks by Secretary George M. Humphrey
before the New York Chapter of the
Investment Bankers Association, Dinner. Meeting,
Waldorf-Astoria Hotel, New York City, Thursday,
October 21, 1954.
(Following presentation ceremonies of a
Savings Bonds Award)
The subject of savings bonds spotlights something that has
been going on in this country -- quietly, but with great force
and effect -- that I want to talk about with you tonight.
It is an often neglected fact that within the last half
century this nation has gone through an economic evolution that
makes pale any other in the long history of man's efforts to
achieve a better life.
The result is -- and the public's huge investment in savings
bonds underscores it -- that this nation is today a nation made
up of small to medium savers and investors.
This means that today this is a nation of "haves", and
not a nation of ''have nots".
We have been in a tremendous and beneficial evolution,
peacefully bettering the lives of most of us.
Vie in this Administration have hitched our wagon to this
rising star of a "have" nation to make sure of its continued rise -to keep making "have-nots" into "haves".
Vie are admirers of, and believers in, what has been this
uniquely American growth and progress.
But on coming into office we found that this great day-to-day
American evolution from the bottom up was in danger. In fact, we
found that it had not even been properly recognized by economic
policy makers of the past two decades. They were too busy fighting
the frightening ghosts of a "have-not" nation, a nation that had
even then already ceased to exist.
H-617

TREASURY DEPARTMENT
Washington

FOR RELEASE ON DELIVERY

H-

t/7

Remarks by Secretary George M. Humphrey
before the New York Chapter of the Investment Bankers Association, Ualdorf-Astoria
Hotel, New York City, at 9:00 P.M., Thursday,
October 21, 1954.
(Following presentation ceremonies of a
savings bonds award)

I
The subject of savings bonds spotlights something that
has been going on in this country — quietly, but with great
force and(effect —

that>I wmmt to talk about with you tonight.

'MfO*-^,neglected fact that within the last half
A
century this nation has gone through an economic evolution
that makes pale any other In the long history of man*a efforts
to achieve a better life.
The result Is — and it** public*s huge investment in
savings bonds underscores it — that this nation is today a
nation made up of snail to aedluai savers and Investors.
fnis »ean® that today this is a nation of "haves", and
not a nation of ^have-nots8.
""""""' ' We have been in a tremendous and beneficial evolution,
peacefully betteringthe lives of aoat ©f us.
Me in this Administration have hitched our wagon to
this rising star of a "have* nation to wtke sure of its continued rise — to keep «*i&ng *have-nots* into "havfttt^^adb^
Me are atelrera. of, and believers in, what(-ha$ bean
this uniquely American growth and progress.
But on cotaing into office we found that thia great dayto-day American evolution fro© the bottom up was in danger.
In fact, we found that it had not even been recognized b^
economic policy makers of the past two decades. They were
too busy fighting the frightening ghosts of a "have-not"
nation, a nation that had even then already ceased to exist.

As a result, we found the economy blown up with the hot
air of inflation, to a point where there was real danger that
it might burst, letting us all down with a crash that ifould
have maiji&d us as a nation, and dropped the free world1 s
defenses invitingly low.
We found the economy's growth hampered and hobbled by a
tangle of successive layers of regulations, controls, sub^. 6JJ&
sidles and taxes imposed in past emergencies.. QgSijrfhe economy;
was 4*«w*g--%w4»feedH*^^

of things past, when it

s„

should have been reaching freely for its rightful future,_
In .addition, we found defense spending being used partly
to buy defense, and partly as a crutch to support an unsound
economy, thereby endangering both defense and the economy.
In other words, we found an ectriromy, going stale, out of
step with the times and out of step with the nation it had to
serve, an economy fearful of the ghosts of bygone crises,
living precariously on the treacherous' dodges of inflation,
subsidy, and excessive crash-and-crisis government spending.
We have been reshaping this government's economic policies
into the policies required for a strong and forward-looking
nation, Its economy firmly footed and self-supporting;/
economy that will pump a continuous new flow of nourishment
into the day-to-day American evolution of self-betterment; an
economy that will constantly generate new and better paying
Jobs for an ever-growing population.

At the same time our

economy must provide an ever-higher standard of living, plus
the social^services the people want and need, as well as the
men and the weapons the nation must have for its defense.

- 3 -

, let** look at what you millions of
have been facing of our mmmm®9 taw you have
the world's mmt suesaeefiil $md
we m the
possible opportunity to

that you have
Butting a

better 'lit* for all*
and the efl^loyerj

. . fa

the rich and the

elty man* the

and the stan at his job ~- all have

is t M & fMff

created a different £ind of
io~dat# iwar '•* t M a k U *
i-M^saafc

In toon*M«ltfe its

by asking
such a eenparlato^ean you realise how outmoded a llgpy of
thought* only * $®**

oWi can be- when applied to our

•# <*^ beer alert we wmt hm net to let eut~of~$ete
thought and practices tie us down while
by.

total
year will ease to
ss our national

services this

b U l i m dollars* That is IT times
ci

la 1900.

>S t!

you
snee for price rises since the turn of the century, today's
yfh

***** i H M t a V m t t «£ ti*. « * It « . i. 1900.
Our population has »or© then doubled since 1900, but our
-•- - *1 *

****

national output per capita — production per nan* woman and
ehild In the nation — Is three tines what It was then.

~6-

Our national income this year will be about 30

billion

dollars. After allowance again for price changes, this is six
times what it was in 1900. And our income per man, woman and
child in the whole population is, like production, three
times as big as in 1900.
Here is the important thing about that income change
since 19G0#

The lower and middle income groups have received

the greatest share of our increased income* Early in the
iO
century, only Jfr out of every 100 American families earned
as much as $1,000 a year in tents of today's prices. Mow 55
out of every 100 families earn more than $#,.000 a year. Those
with inadequate incomes for a decent living ars^ }»ecoe£ng fewer
y r^

and fewer, and more andfcoveof them are beehave enough money not only to live adequately, but to save
besides.

That is the basic economic development in this

country which we are trying most fervently to keep going, and
to continually Improve•
Let's see just how widespread and important this flow of
purchasing power to the broad base of our economy has been
and will continue to be.
One of the most common methods of saving is the purchase
of insurance. At the turn of the century, people in this
country had taken out 1% million life insurance policies.
Today, with the population only slightly more than doubled,
and with many people owning several policies, the number of
life insurance policies has increased nearly 18 times, to

- 7-

Ownership of Individuals in their life insurance has
increased from u$#eir 2 billion dollars in 1900 to 80 billion
dollars today.
^ O X - ^ a ^ a ^ ^ i n

United State* Saving* Bonds,

total the huge amount*1©* ^Aftll^UK dollars. Ho such investment existed- in 1900.
Let's see some other ways in which the average man on
the street.in this nation has been making himself over into
a real investor — a man with a real financial stake in the
future such as no other average citizen anywhere ever had
before.
nearly 10 percent of ail American families today own
stock in American corporations. At the turn of the century,
this was just getting underway*. • .... ,»,.,
In 1900, individuals had/tsewliigs of all types amounting
to less than 10 billion dollars. Mow^savings of individuals
in this country [total more than jyjfF billion dollars.
Last year alone, Americans bought equipment for themselves and their homes of approximately 30 billion dollars.
This included things unknown to the homeowner of 1900, like 8
million radios, 7 million television sets, nearly 4 million
refrigerators, about 3l million washing machines, and a
million air
. condltloaerflu
,
^ 'f**% a ^ Yx V ^ i ^ * ^
it'ft. *W*j *\ m.m\h*** *?&#»vte>,v

'* V**7**

c9otk*mi<m&

About 25 million families own their own homes today, compared with only 7 million homeowners half a century ayo, while
population lias only a little more than doubled in that time.
About 55 percent of our families now live in homes of their
own. Kearly all the others want to. And ways and means of
helping them to do so are of greatest concern in present

-'8^~:
Labor unions to which many American workman pay dues> -^
are also investors. Hot so many years ago, union treasuries
were low.

Today many of them/bulge with huge sums. They

own banks and buildings, bonds and stocks, and investments of
many kinds*
Today nearly 15 million Americans have more than 25
billion: dollars invested in pension and retirement trust
funds.

This represents an investment of*$l*5O0 per worker.

These retirement plana were practically unknown In 190G.
You can see from those few examples what has been happening to the individual and the family In our wonderland economy.
We need a completely new set of standards in thinking about
ourselves, fee are a nation of "haves*, not of "have-nots".
This nation's economy has grown right over, and has left'
behind in the dust, both socialism' and communism.
The consequence of this brilliant human achievement in
our nation is that the basic Interests of the man in the
bungalow are today the same as the basic interests of the man
in the penthouse.
Business long ago,recognized this fact, and centered its
attention on the "wants and needs of the man in the bungalow.
It is time that we all caught up with the facts of life in
this nation.
Let's see how the man in the bungalow and the man in the
penthouse today have the same basic interests and what that
^^elutlenaiT'^wrtf means to the whole economy:
Both men have current earnings and probably savinys in
one form or another.

That means that both are Interested in

seeing the dollar keep Its purchasing power.
inflation develops, both men are robbed.

To the extent that

- 9 -

If you had $1000 saved up in 1939* which you did not draw
out to use until 1953# you really took a beating.

Inflation

had sneaked into your savings during those years and made off
with/ &r>

How?

Because inflationary price rises during that

time cut the purchasing value of the dollars you were saving,
every minute of every day. When you drew out your #1000 savings,
/^9t%j

inflation had stolen away with all bujMM?; of the purchasing power
your dollars had when you put them aside in 1939*
This is a terrible thing to happen to a nation of people
who are working and sweating and

scrimping to put aside money

for the education of their children, the purchase of a home,
or to provide for their old age.
The man In the bungalow often tries, by purchasing Insurance,
to build up some security to leave to his wife and children
In the event of his untimely death. It is a terrible thing
to have the purchasing power of his insurance —

the time that

it will pay the rent and set the table for those that are left —
cut nearly in half In the short period of just 15 years.
It is a

heartless thing for a man and woman

savings In a pension or

who put aside

retirement trust fund as they work

during their lifetime to find on retirement that inflation has
robbed them of nearly half of

what they had invested to live

on In their declining years.
Me in the Eisenhower Administration have made halting
inflation one of the principal goals of our Administration.
In the last 20 months ,tflc^ wail we • of the dollar has changed only
one-half of one cent*-, This means that we have kept Inflation's
>A£io

hand out of your savings almost entirely.
so that when you save —

jL.~tt.£y,,*-yf~y~ •

We want to^lao^it

by putting money In the

- 10 -

bank, by buying a savings bond, by buying insurance9 by
contributing either work or money to a pension fund or fraternal
order or iafany other way •* you will ®et from your investment
the same value that you toil now to put into it.
The man in the bungalow

and. the- man In jfche penthouse have

at least an equal interest in this fight. But, If there is any
difference between them, it is the man in the bungalow who most
needm protection*

He can leas affefst- to lose.. ^^J^JflBH^^ 5

Mow, it is the vast S'um(^i^iSa^^^^^i| ejf the many smaller
savings of'the j^an in the bungalow on.J*A$b .<W industrial ,
and commercial system defends,,.f@f J,ta financing. The »in of
ej^fyj^,./

rf.

/^H~€&^i-t~y^y

all the little savingsM^fmnniled/lnto .big

"'4'*" *

Investments by the

savings banks9 the building and,loan associations# the insurance
-f f-'f'

—

.* -*-W - - i ,

-:i*fc

#»

companies, investment trusts,ifenaion funds, union and fraternal
organisations, and others ha»dliJ3^ the savings of the man in
the bungalow.
Business in this country j» la pouring .nearly 27 billion dollars
,.„ •

new Investmenttat»»jasfc;j*Unftpand equipment this year. .That

tremendous amount raust,come from somebody's savings. Without it,
•?• *« "-****
*t^'^#iire»s new Jess will ne^r^be born,jaor willjie get .
to«orirow*« increase In productivity, as the result of new and
-

•

better tools of-production, bought by new investment.
u

SsMftg 1* tnsortant to the nation,^and must be^encouraged,

not discouraged,*because it strongly Influences the security of
the job you have/ and your hopes for ever-better nay through
continued Increase In your productivity* c Thus you can see how
inflation can reb you not only of your personal savings but, in
addition, a teal away your pay increases and perhaps even your job.

- 11 -

we must have policies that put solid ground under our
day-to-day evolution of continual betterment from the bottom up.
Such policies must aim at everyone, spreading the riches throughout the land. There is only one way to have everyone have more.
The nation's treasures of goods and services must constantly
increase, by continually increasing Individual productivity,
so that they can be spread ever deeper and broader throughout
the whole economy.
Our policies must result in giving the man in the bungalow
ever more and more-' elf the same things which the man in the
penthouse also wants to have. And that can only be accomplished
by an economy that constantly produces more of the comforts,
conveniences and necessities of life* Such an economy will not
only be of direct benefit here at home, but will also be a
beacon of progress in the whole Free world, a sharp, attractive
contrast to the^mouldering darkness behind the Iron Curtain.
Our strong economy must — and can —

carry the costs of

fully adequate defense, and of indispensable public services,
and at the same time continue its healthy growth. But it will
only be able to do so if we balance the load correctly, so that
It can be carried, and carried Indefinitely, without a breakdown.
We have devised policies to fit our new situation and
have begun to balance the load.
We are NOT the slave of any particular aspect of our
ex

,* < ii . Mr^^'

flexible policies. We regard inflation as Public J&nemy JflgpiPt,»
A
But we have MOT hesitated, either, to ease or restrict the
basis of credit when need was Indicated. Under the new
cooperation that exists in this administration between the
Treasury and the Federal Reserve, the full force of iaorat-.w

- 12 -

J)
policy —

has been made effective more promptly than ever

before in the nation's history to better respond to natural
demands.

^
sG^^^y**^

^y\ ~
*
^^^^~\^y^^ay^^yy^~°^^
——
y^*x»^'i*m^m*c . yv?Ey^.. yih.,,.—«.-i - ~ •rr~«-™~^*~«&*^^'~-.

We found/ when we came to office\ an overblown eco:
was harnessed with all sorts of artificial controls, dangerously
dependent upon the uncertainties of defense spending, and
inflationary pressures. It was borrowing from tomorrow's
production and income at a prodigious rate, with unsound
confiscatory taxation that still failed to provide for the
profligate spending. This resulted in huge deficits that were
passing the heavy burden of our excesses on for our children
and grandchildren to bear. And sooner or later it was sure
to result In complete downfall.
Correction of that situation has been well started.
The whole economy, the livelihood of all the people,
has been made more safe. This has been done by the timely use
of monetary^^licJ^^S credit in response to actual demand;
by the return to the public of purchasing power through the
biggest tax cut in the history of the nation, by cutting
unjue%lf^e4-amounts f4f»o^government spending,* and at the same
^^W
time by timely encouragement to construction, home building,
and needed improvements. By the prompt and vigorous use of all
these measures we have made the difficult and delicate change
from a dangerously artificial economy to,, a healthy one, with
OJ^mWmimah^^^

^mJml-' -*

-''

'"'"

X\e*e*y effort exerted 4eM5h«rt!tm0st to Involve' Ih* wry mlwfmumr
<*yt cost in terms of unemployment e»«ttwh41a% \y\[
^VT^JIIMtfc ^
In turning our faces resolutely from Inflation, and
unrealistic spending, what have we turned toward?
Wo h»tr<i turned to arou^ to the l6Q million oeonla__nf lraer»lr»».

We have turned with full confidence to a people that have
demonstrated that you are industrious, saving, inventive, daring,
progressive and self-reliant to an unprecedented degree. We
believe in your capacity to go on providing yourselves witn an
ever better life, if we in government support your efforts
where the general welfare calls for such support, and do HOT
load you with unnecessary burdens, or take from you by
excessive taxation the increase in your income that you might
otherwise earn and save.
Realistic economic policies that take account of the
true nature of our economy and the burdens it must bear, will
bear big fruit.
We will HOT be rising on the hot, uncertain air of
inflation*

Nor will we be wearing the false, rose-colored

glasses of a prosperity based on unwise and dangerous government
deficit spending, treacherous alike to the nation's security
and its economic health.
We will be rising on the solid ground of these things:
Savings protected against shrinkage by a stable dollar;
Increased production and increased wages and earnings
. •>y®^'^'^%^Ly'

made possible by the investment of tEose.savings* in more^T^"new and better tools of production;
Wide use, bj Americans who are both workers and Investors,
of these tools of production for the creation of more jobs and
new, better and cheaper goods, with ever-widening distribution
among an ever-growing number of consumers as their earning
power increases and the cost of the goods declines;
Use of the increased income from this increased production of the things you want — NOT to pay the bill for
unseeded or unwise government spending, or as tribute

inflation, but for the creation of a better life for all.

-1* We have turned our backs on artificial stimulants. We
have turned our faces confidently to practical, natural
methods for the creation of a better life for all of us —
firm in the belief that continuation of the process of the
American evolution of self-betterment ^g^-^^^o|tom^_u^
is second nature to our whole people.

- 2 competitive bids. Settlement for accepted tenders In accordance
with the bids must be made or completed at the Federal Reserve Bank
on
October 28. 1954, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing October 28, 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 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) (3b) 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 origiricxl 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.

TREASURY DEPARTMENT
«cr-;—T~Tzm~^7r.T-ii •::TI,"~?T?:":-:.:";'; ^[g;^r^?i>*"^^"*'«"^^

WASHINGTON, D.C

RELEASE MORNING NEWSPAPERS,
Thursday, October 21, 1954•

H_6l6

The Treasury Department, by this public notice, invites tenders
for ^ C ^ o U o , or thereabouts of 91 ;? ay ^easury^bxl^
^

^ri^dSoStionf olril^SI $5,000, $10,000, $100,000,
$500,000, and $1,000,0000(maturity value).
Tenders will be received^at Federal R«erve^Banksjnd Branches
up to the closing; hour two o ^ ^ ^ e P - m ; h f f ^ e ' S v e d ' a t the
Monday, October 25, 1954.
\ R h t e n d e r m U st be for an even
Treasury department, Washington.^ Each %rtev
^
e ^
±ce
multiple of $1,000, ana in trie £«
*
than
f
0Q
ith not more
offered must be expressed on the
too m ° y ' n ot be used. It is
three decimals, e. g., 99.925. Fractions ? I a n d forwarded in the
urged that tenders be made on the printed Jorms and i^r
^ ^
^
special envelopes which will be supplied oy
Branches on application therefor.
,4
<n.nfiiHnn<i will not be permitted to submit
Others than banking i nsfc "utions " i ^ ^ r s will be received
tenders except for their ^ a c c o u n t
Tenders wi
and from
without deposit from ^ ^ p o r a t e d ban*3 and tr
^ltleB
Tenders
responsible and recognized dealers ininve
t ofthe face
from others must be accompanied by Payment °* £ P t e n d e r B a r e
ZlZt^eTrrny,xPrelsaPgua-nty°of
payment by an incorporated ban,
or trust company.
,._ ,.,__ r-iosine hour, tenders will be opened at the
Immediately after the closing n ^
^ announce_
h
Federal Reserve Banks and B r a n c h e s ^ ^ ^ ^ ^ ^ ^ p
m ent will be made by the Treasury^P
t e n d e r s w i l l b e advised of
0
range of accepted bids
"J ;;; £ f
T ^ Secretary of the Treasury
the acceptance or ^jection tnere
Qr
ct &ny o r a l l t e n d e r s
expressly reserves the right to a ^
suoh respect shall be
in whole or In part, ana " " * f l o n s n0n-competitlve tenders for
final.
these r e l a t ipo n^s , ^^
P ^ ^
be
$200,000Subject
or lessto
^^out^statea
accepted

&28k
TREASURY DSPARTMENT / / f
Washington

Lmf k>

FOR RELEASE, HORNING NEWSPAPERS, '
Thursday, October 21, 195^
"~"
"• w " ~
'
The Treasury Department, by this public notice, invites tenders for
$1,500,000,000 3 or thereabouts, of 91 -day Treasury bills, for cash and
in exchange for Treasury bills maturing October 28, 1954 , in the amount of
$1,500,200,000

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

competitive bidding as hereinafter provided. The bills of this series will be
dated October 28, 195^ , and mil nature January 27, 1955 , 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, $£00,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock o.m., Eastern Standard time, Monday, October 25, 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*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 an^ trust cor^'nanios and from rosoonsible and recognized
dealers n inv.stn^nt securities. Tenders from others must be accompanied by

- 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.
iTimftdiately after the closing hour, tenders iri.ll 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 rl^it to accept or reject
any or all tenders, in whole or in part, arid his action in any such respect
shall be final. Subject to these reservations, non-cetapetitive 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 October 28, 195**- , in cash or
other immediately available funds or in a like face amount of Treasury bills
maturing October 28, 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 frcr. the sale or other disposition of Treasury bills shall

not have any special troitn^rrt, as s-.ch, mi/.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-

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 St?.tes shall be
considered to be interest. Under Sections \±2 and 117 (a) (1) of the Internal
Revenue Code, as amended by Section ll£ of the Revenue Act of 19kl, 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 sal,, or redemption at maturity
during the taxable year for which the return is made, as ordinary gain or loss.
Revised
Treasury Department Circular No. I4.I8, X X X X X X H S U , 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.

202

- 5Every program that the Eisenhower Administration undertakes, every problem that we inherited, we look at with one
thought in mind: Is it necessary for the good of most of our
people? If so, we try to make sure that it is done in the most
economical way. We are now definitely getting more and better
defense for less money. There are many other examples of how
we are getting better government at less cost and so helping
the economy to become healthier.
There Is nothing to fear about the long future of this
economy or this nation. If we keep doing the things we ought
to do and this Administration can continue to put Its sound
fiscal and economic policies into effect, the years ahead will
see greater prosperity and more jobs for more people making more,
new, better and cheaper things for better, fuller living for
us all, than any of us have ever dreamed.

0O0

201
- 4Every month the debt gets closer to maturity simply as a
result of the passage of time. Like the Red Queen, we have
to run fast just to stand still. Our immediate job has been to
stop the debt from getting shorter -- and then to start
lengthening it gradually.
This we have done during the last 20 months.
In nine of the eleven major financings of the last 20 months,
the debt was lengthened by offering investors securities
other than one-year certificates. This is quite a contrast to
the 20 months prior to January 1953, when on only two occasions
out of 13 was longer term debt offered.
The major debt lengthening In the last 20 months has been
a reduction in the amount of very short-term debt. The amount
of marketable debt maturing in less than one year was cut down
by over $11 billion.
The amount of marketable debt running more than five years
was increased by about $8-1/2 billion.
We have made progress, too, in placing greater amounts of
the debt in the hands of longer term individual savers, largely
as a result of the highest level of E and H savings bonds sales
since World War II. Individual investors altogether hold
more than $66 billion of government securities at the present
time.
We are continuing to work to further the objective of
reconstructing the debt. But we will continue also to operate
with extreme care because, as you so well know, our economy is
a sensitive mechanism that can be seriously upset by hasty or
ill-considered action. We repeat that our goals can be clear -our start toward them can be immediate -- but action must be
gradual. Progress has been made and will continue to be made.
But we -will continue also to make every effort not to act so
as to upset the sensitive mechanism of our economy.
The government must borrow the money it needs so as not to
interfere with the needs of other governmental units or private
enterprise for any money they may need. The government should
not, borrow large amounts of long-term money at times when it
would seriously interfere with the supply of that money to finance
the building of schools, hospitals, or highways by local or
state governments or the expansion of power plants or building
of new factories or other industrial enterprises by private
business. What we are trying to do at this particular time is
to have the government borrow its money in such a way as to
avoid the possibility of interfering with the expansion of our
economy and the making of more and better jobs.

Limitations on incentives ;or freedom of legitimate activity
in any way have a deadening effect. This Administration's fiscal
policies are shaped about the reduction of government spending as
an absolute requirement for the reduction of incentive-destroying
taxation. The reduction of government spending and lower taxes
will help to avoid t&e inflation which destroys confidence and
ultimately any nation's economy. The handout principle of
deficits and resulting debts of the 1930!s was a temporary
expedient that assisted nothing fundamental. It actually deterred
individual risk taking in competition with the free money that
was being passed around and finally became a means of destroying
the soundness of the dollar.
A primary responsibility of government must, of course, be
to relieve human suffering and destitution which cannot be taken
care of by the individuals themselves when overtaken by adversity.
But this must be done in the proper ways which this Administration
has already improved and enlarged.
We seek the multiplication of production and income, not
simply a new division of a stagnant pool.
Most of you are well familiar by now with the major
accomplishments of this Administration during the past 20 months.
You know how spending and spending programs have been cut by
billions of dollars. You know how taxes have been cut by the
largest amount in any year in the nation's history. You know
how waste and extravagance have been stopped in many areas of
government. You know how these and other policies have been
successful in creating a remarkably constant value of the dollar
during the past year and a half while the cost of ordinary living
has shown a slight decline.
You know what efforts we have been making to reconstruct
the debt. I would like to give you today an analysis of what
we have done in the past 20 months, which shows that we have
already made steady, if not spectacular, progress In this vital
field.
President Eisenhower, in his first State of the Union
Message in February 1953, said, in his discussion of fiscal policy,
that "too great a part of the national debt comes due in too
short a time." The President said that the Treasury would undertake at suitable times a program of extending part of the debt
over longer periods and gradually placing greater amounts in the
hands of longer term investors.
Our determination to do this at suitable times was based,
of course, on the knowledge that too much short-term debt is
inflationary. Handling of the debt by previous administrations
had contributed substantially and deliberately to the inflation
which robbed the dollar of almost half of its purchasing power
from 1939 to January 1953.

1 \J vj

It is wholly human, even if unwise, for such reconstruction
booms to be overdone and for speculative credit structures to
come into being. Soon the nation, finds itself with surpluses
instead of shortages and an inventory readjustment is required.
Using Lip these surpluses and the resulting readjustment of manpower
and resources to the invention, production and distribution of
more new and different products and services has often in the
past been a long, slow painful process.
Study of past depressions makes clear some of the things
that ought to be done. It also makes clear some of the things
that ought not to be done. Many of the things in both categories
concern monetary policy, with which you as bankers are intimately
familiar.
So that If the record tells us anything, it says that the
most dangerous thing is to permit the erection of a great
collapsible structure of speculative credit. When such structures
finally topple, they set off a spiral of liquidation which can
quickly descend into widespread depression throughout the
economy. We should note that there is all the difference in the
world between the systematic and orderly liquidation of inventories
that have simply become too large and liquidation forced by fear
for loans that are in danger of going "under water." History
records dramatically the "race for liquidity" and the disaster
that it caused in the early 1930's.
We have been most fortunate that no such fear caused any
similar race for liquidity in the past year and a half. It must
not occur in the future.
There are other lessons from the past which were applied to
our economic situation over the past.year and a half. It was
clear that the government's policies during all the 1930's were
wrong and worked badly. They were designed to solve unemployment; yet there were still nine million unemployed in 1939.
These unemployed only got back to work after war broke out in
Europe. I know of no one who thinks that war is the right way
to cure unemployment.
Jobs are created -- and only honestly created in our free
competitive price economy -- by people using their money to expand
existing businesses or start new businesses in the hope of making
a profit. If any government policy is such as to make a profit
unlikely or very difficult, people simply aren't going to launch
the new ventures from which new jobs grow. New ventures are
discouraged by government controls of materials, labor or prices
or by uncertainty of labor and other costs or by the threat or
actual practice of government competing with private enterprise.

TREASURY DEPARTMENT
Washington
FOR P.M. NEWSPAPERS,
Tuesday, October 19, 1954.
Remarks by Treasury Secretary Humphrey at
Annual Meeting of the American Bankers
Association, Haddon Hall, Atlantic City,
New Jersey, at 10:45 a.m., E.S.T.,
Tuesday, October 19, 1954.
All Americans can welcome the fact that this nation is making
the shift from high to lower government spending without more
strain on the economy.
Hundreds of thousands of our people have successfully
changed from making things for killing to making things for living.
This has involved temporary hardships in some individual cases
but this great shift is being made without a great economic
upheaval.
Industrial activity and total employment have held remarkably
well throughout recent months. The fourth quarter of this yearis already even brighter both industrially and commercially.
The number of unemployed is currently decreasing. We have
had more people working during this year than in any other year
in the nation's peacetime history. Unemployment is a matter of
the greatest concern to everyone In this administration. We are
working and planning in every way to reach the day when every man
looking for work can find a job. We have shaped our entire
economic program in the way best calculated to bring that happy
day at the earliest possible time.
This nation has not always been able to make the transition
from war to peacetime spending without major economic upsets.
American history shows that we have had severe economic adjustments following all great wars. This was true after the War of
1812, the Civil War, and World War I.
As you all know, one of the causes of postwar depressions is
the fact that when our nation goes to war it postpones for the
time being the production of all sorts of peacetime goods. Once
war ends, we turn to satisfying the backlog demands which built
up while the war was on.
H-615

Remarks by Treasury Secretary Humphrey at Annual Meeting of
the American Bankers Association, Haddon Hall, Atlantic City,
New Jersey, at 10:45 a.m.. Tuesday, October 19, 1954
All Americans can welcome the fact that this nation is making
the shift from high to lower government spending without more
strain on the economy.
^

/fes^ **«**,

.Hundreds t of thousands/of our people have successfully mosted/ '

from making things for killing to making things for living.. •£&©#
aro-maklng ..the.,shift without a great economic upheaval.
/^
A
Industrial activity and total employment have held remarkably
well throughout recent months. There is -lie-reason why tithe fourth
quarter of this year sheu-ld net be even brighter both industrially
A
and commercially.
Wj7 now hnvr nh^ufr fhrQg* million ponpio-unoiBpinypf.

ber is currently decreasing. M w e

The num-

at4U. have had more people

working during Jriaitf whole year than at any other time in the
nation*s peacetime history.

Unemployment is a matter of the

greatest concern to everyone in this administration.

We are work-

ing and planning in everyway to reach the day when ^ / m a n looking
for work cani»*sb find a job. We have shaped our entire economic
program in the way best calculated to bring that happy day at the
earliest possible time.
This nation has not always been able to make the transition
from war to peacetime spending without major economic upsets.
American history shows that we have had severe economic adjustments following all great wars.

This was true after the War of

1812, the Civil War, and World War I.
that it caused in the early 1930fs.

As you all know one of the causes of postwar depressions is
the fact that when our nation goes to war it postpones for the
time being the production of all sorts of peacetime goods. Once
war ends, we turn to satisfying the backlog demands which built
up while the war was on.
- 2 It is wholly human, even if unwise, for such reconstruction
booms to be overdone and for speculative credit structures to
come into being.

Soon the nation finds itself with surpluses

instead of shortages and an inventory readjustment is required.
Using up these surpluses andresulting readjustment of manpower
and resources to the invention, production and distribution of
more new and different products and services has often in the
past been a long, drawn-out slow nrocess.
As.

Study of past depressions makes clear some of the things
that ought to be done.

It also makes clear some of the things

that ought not to be done. Many of the things in both categories
concern monetary policy, with which you as bankers are intimately
familiar.
So that if the record tells us anything, it says that the
most dangerous thing is to permit the erection of a great
collapsible structure of speculative credit. When such structure;
finally topple, they set off a spiral of liquidation which can
'Xiy^^^^/<e% yfj*

quickly descend into widespread depression thnr out the economy.
We should note that there is all the difference in the world
between the systematic and orderly liquidation of inventories
that have simply become too large and liquidation forced by fear
for loans that are in danger of going "under water".

History

records dramatically the "race for liquidity" and the disaster
that it caused in the early 1930fs.

„e have been most fortunatTthat no such fear causea any

similar race for liquidity in the past year a n d a t a l f . •
^ ^ r T ^ v ^

from the past which^pplied to our

economic situation over the . P - J j ^ « f * ^ '
* *"
that the government's policies ^
1930- were^ron^ and

worked badly. They were designed to solve unemployment; yet there
were^still_n£ne million unemployed in 1939y-several million-rorc-*
than when Ihu Qujji'yaalu.T-T5^gOT*^^

These

unemployed only got back to work after war broke out in Europe.
I know of no one who thinks that war is the right way to cure
unemployment.

_ ,. , -

Jobs are created -- and only honestly created^-- by people
using their *mn money to expand existing businesses or start new
businesses in the hope of making a profit.

If any government

policy is such as to make a profit unlikely or very difficult,
people simply aren't going to launch the new ventures from which
new jobs grow.

New ventures are discouraged by government con-

trols of materials, labor or prices or by uncertainty of labor
and other costs or by the threat or actual practice of government
competing with private enterprise.
Limitations on incentives aad freedom of legitimate activity
in any way have a deadening effect.

This Administration*s fiscal

policies are shaped about the reduction of government spending as
an absolute requirement for the reduction of incentive-destroying
^f*tt*i*AAM.<ujr

taxation.

yy>i**j*is^

The reduction of spending and taxes will help to avoid

the inflation which destroys confidence and ultimately any
nation's economy.

The handout principleAeficits and resulting

debts of the 1930* s v*^e a temporary expedient that assisted
nothing fundamental.

Ttey actually deterred individual risk

taking in competition with the free money that was being passed
around and finally became a means of destroying the soundness or
the dolLar—

- 4 THfcs^fedn*^ seekp the multiplication of production
and income, not simply a .new division of a stagr&t# pool.
Most of you are well familiar by now with the major accomplishments of this Administration during -the past 20 months.
You know how spending and spending programs have been cut by
billions of dollars. You know how taxes have been cut by the
largest amount in any year in the nation's history. You know
how waste and extravagance have been^^SCie^r In many areas
of government. You know how these and other policies have been
successful in creating a remarkably constant value of the dollar
.> during the p ^ ^ S T f c d a half

^** ^ Y o u know what efforts we have been making to reconstruct
the debt. I would like

to give you today an analysis of what

we have done l.tt-^feis-^iei^ in the past 20 months, which shows
that we hav^mide^steady, if not spectacular, progress in this
vital field.
President Eisenhower, in his first State of the Union
Message in February 1953, said, in his discussion of fiscal
policy, that'too great a part of the national debt comes due
in too short a time'! The President said that the Treasury
would undertake at suitable times a program of extending part
of the debt over longer periods and gradually placing greater
amounts in the hands of longer term investors.
Our determination to do this at suitable times was based,
of course, on the knowledge that too much short-term debt is
inflationary. Handling of the debt by previous administrations
had contributed substantially and deliberately to the inflation
which robbed the dollar of almost half of its purchasing power

^
^

Every month the debt gets closer to maturity simply as a
result of the passage of time. Like the Red Queen, we have
to run fast just to stand still. Our immediate job has been
to stop the debt from getting shorter —

and then to start

In nine olf~the~ eleven major rjLiiaucxrrgiD--^—^r^-~^
months, the debt was lengthened by offering investors securities
other than one-year certificates.

This is quite a contrast to

the 20 months prior to January 1953, when on only two occasions
out of 13 was longer term debt offered.
The major debt lengthening in the last 20 months has been
a reduction in the amount of very short-term' debt.

The amount

of marketable debt maturing in less than one year was cut down
by over $11 billion.
The amount of marketable debt running more than five years
was increased by about $8f billion.
We have made progress, too, in placing greater amounts of
the debt in the hands of longer terra individual savers, largely
as a result of the highest level of E and H savings bonds sales
sIn^e^fSir'Wftr.' individual investors altogether hold more than
%66 billion of government securities at the present time.
We are continuing to work to further the objective of
reconstructing the debt. But we will continue also to operate
with extreme care because, as you so well know, our economy is
a sensitive mechanism that can be seriously upset by hasty or
ill-considered action. We repeat that our goals can be clear
-- our start toward them can be immediate -- but action must be
gradual.

Su^gootiuiiJ that Uiiir-AdmiifriB^afrA^n lias not MoWd

fGtrwBrJr-JJ^

Q ^ nQfrn ,t-^"»

Progress has been made and will continue to be

- 5lengthening it gradually.
This we have done during the last 20 months.
In nine of the eleven major financings of the last 20
months, the debt was lengthened by offering investors securities
other than one-year certificates.

This is quite a contrast to

The amount

of marketable debt maturing in less than one year was cut down
by over $11 billion.
The amount of marketable debt running more than five years
was increased by about $8-| billion.
We have made progress, too, in placing greater amounts of
the debt in the hands of longer terra individual savers, largely
as a result o£ the highest level of E and H savings bonds sales
sinoe^^Bir'ifar^ Individual investors altogether hold more uhan
^66 billion of government securities at the present time.
We are continuing to work to further the objective of
reconstructing the debt. But we will continue also to operate
with extreme care because, as you so well know, our economy is
a sensitive mechanism that can be seriously upset by hasty or
ill-considered action. We repeat that our goals can be clear
-- our start toward them can be immediate -- but action must be
gradual.

Su^uuliona Ilia I Uiig -Actol-ttlfrfri'iiblon hgp~nol moWd

.are na±L_ii»a*©. Progress has been made and will continue to be

rCVW

fyASK-yp «*>\/>T^-c--tc4y //

^€©¥#rnment must, of course, nm^p human suffering and
iestitution which cannot be taken care of by private means. But
this must be done tSSae^proper e^awnpiiB r~--;

"^T^^^^i?

c<^uJi

^^JLO^^M^AJL

•?

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, October 19, 1954.

H-614

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated October 21, 1954, and to mature January 20, 1955, which were
offered on October 14, were opened at the Federal Reserve Banks on
October lo.
The details of this issue are as follows:
Total applied for - $2,185,113,000
,500,256,000 (includes $245,062,000
Total accepted
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
_ 99.745 Equivalent rate of discount approx.
1.009$ per annum
Range of accepted competitive bids:
Hip-h - 99.765 Equivalent rate of discount approx,
0.930$ per annum
L0W
- 99.743 Equivalent rate of discount approx
1,017$ per annum
(59 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
35,727,000
1,600,993,000
31,236,000
45,179,000
15,786,000
26,412,000
211,029,000
32,907,000
14,238,000
45,992,000
25,571,000
$2,185,113,000
100,043,000

0O0

Total
Accepted
$
34,227,000
1,014,313,000
16,236,000
43,179,000
15,081,000
25,948,000
156,519,000
30,857,000
13,738,000
43,382,000
25,489,000
81,287,000
$1,500,256,000

L /'
HEIJSASE KBHIMG NEWSPAPERS,
Tuesday, October 19, 1951*«
The treasury D*partB*nt announced 1M& ©veiling that tteB tender® for $1, $00,000,000,
or thereabouts, of 91-day f mamry bill® to ba dated October 21, 195k, aad to matur®

January 20, 1955, whicfe were offered on 0®tob@r lib isere opened at the Federal !®serv
Banks on October 13.
fh© detail© of this laaxia are m follows s
Total appli@a for - fa, 105,113*000
total accepted
- 1,$00,256,000

{includes $2k$,062,000 entered on a
noncompetitive basis and accepted in
full at the average price #iown below)
Average price
- 99*lk$ Equivalent rate of discount approx, 1*009$ per
mmm
Bang© of accepted competitive bidmt
High - 99.765 fquiviOaat rate of drUeouat approx. 0.930$ per annum
LOW

- 99.7-U3

•

1.017*

(59 percent of the mount bid for at thm low pric© was accepted)
Federal Reserve
District

total
Applied for

total
Accepted

Boston
Hew fork
Philadelphia
Cleveland
Eiehmond
Atlanta
Chicago
St. Louis
Ei-imeapolis
Kansas City
Dallas
San Francisco
TOTAL

35,717,000
1,600,993,000
31,236,000
145,179,000
15,786,000
26,IPL2,0O0
211,029*000
32,907,000
Hi, 238,000
145,992,000
25,571,000
100,01*3,000

v2,185,113,000

3*4,227,000
l,01ii,313,000
16,236,000
143,179,000
15,081,000
25,91*8,000
156,519,000
30,857,000
13,738,000
U3,382,000
25,1^89,000
81,287,000

$1,500,256,000

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Thursday, October 14, 1954.

H-613

Secretary Humphrey today announced the appointment of Laurens Williams, Omaha tax attorney, as
Assistant to the Secretary.
Mr. Williams will act as legal advisor on tax matters
to Under Secretary of the Treasury Marion B. Folsom. He
will head the Legal Advisory Staff in the General
Counsel's Office which analyses and prepares reports on
legal aspects of tax legislation and regulations.
He succeeds Kenneth W. Gemmill, who resigned
recently to return to private law practice in Philadelphia
after having performed outstanding service in assisting
in the preparation and presentation of the Administration's
1953-54 tax program.
A member of the law firm of Young, Williams and Holm
of Omaha, Mr. "Williams received his law degree from
Cornell University in 1931. He is a member of the Council
of the Section of Taxation of the American Bar Association
and since 1951 has served as Chairman of that Section's
Committee on Tax Problems of Farmers. Since 1953 he has
been a member of the Committee on Continuing Legal
Education of the American Law Institute. Mr. Williams
is a past president of the Nebraska State Bar Association,
a member of the Omaha Bar Association and has been a
member of the Omaha Board of Education since 1948.
Mr. Williams was born at Pottsville, Pennsylvania,
in 1906.
0O0

Secretary Humphrey today announced the appointment of
Laurens Williams, v m i M m

Omaha tax attorney, as Assistant
J

to the Secretary.
Mr. Williams will act as legal advisor on tax matters
to Under Secretary of the Treasury Marlon B. Folsom.

will afeK> head the Legal Advisory Staff in the General
Counsel's Office which analyjzes and prepares reports on
legal aspects of tax legislation and regulations.
He succeeds Kenneth W. Oemmill, who resigned recently
to return to private law practice in Philadelphia after
having performed outstanding service in*the preparation and
presentation of tjae Administration's 1953-54- tax program.
A member of the law firm of Young, Williams and Holm
of Omaha, Mr. Williams received his JLaw degree from Cornell
ay He COCMCJ /to/fficSec -£*t®w */ T&*+*+***
University in 1931. He Is a member of the American Bar
Association andAhas served as Chairman of t&e Committee
on Tax Problems of Farmers of theJj&ct&Qja o£^a«a>%4®a3^s4^®@
Since 1953 he has been a member of the Committee
on Continuing Legal Education of the American Law Institute.
Mr, i¥ifi mme

*L+ 6- •/•am+4r "$**<**,-£^tr*£

He—is a Rtember- of the Omaha a$*& the Nebraska State Bar

d me«k Q^%t&m&£& &** &*4ac******** a*^
Associations, a»eV has been a member of the Omaha Board of
Education since 1948.
Mr. Williams was born at Pottsville, Pennsylvania, in
1906.

°^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 VALUEa 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 Italya

Established
TOTAL QUOTA

Country of Origin

United Kingdom
Canada . • 9 9
France . . .
British I n d i a
Netherlands .
Switzerland . O
Belgium . . .
Japan . , » . .
China . 0 . 0 .
Egypt . 0 0 .
Cuba
0
.
o
Germany o o o o
Italy ,
o
a

« •
9

. e
c

.
.

•

. e

Total Imports
Sept. 20, 1954* to
Oct. 12, 1954

Established
33-1/356 of
Total Quota
1,441,152

Imports
Sept. 20, 1954
to Oct. 12, 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

32,175
30,202

6,641

25,443
7,088

6.641

5,482,509

112,997

,599,886

38,816

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

32,175

75,807
43,979
22,747
14,796
12,853

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Friday, October 15T icmii

CX)

H-612

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)
£g^PIL^nder_,I--l/8 inches other than rough or harsh under 3/4"
Imports Sept. 20, 19 5 4 7 ^ o ^ c ^ S i F T S , 1954, inclusfve"—jgLit"
Country of Origin
Established Quota
Imports
Country of Origin
Established Quota
Egypt and the AngloHonduras
752
• • . *
Egyptian Sudan . .
783,816
Paraguay . . . . . . .
871
Peru . .
5,742
247,952
Colombia . . . . . . .
124
British India
20,355
2,003,483
« . . .
Iraq
195
China
.
1,370,791
British East Africa . .
2,240
75,606
Mexico . . . . . . .
8,883,259
Netherlands E. Indies.
71,388
Brazil .
,
618,723
618,723
Barbados
Union of Soviet
l/0ther British W. Indies
21,321
475,124
Socialist Republics
Nigeria . . . . . . .
5,377
5,203
Argentina . . . . . .
2/0ther British W. Africa
16,004
237
Haiti .
^Other French Africa . .
689
9,333
Ecuador
Algeria and Tunisia .
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. 19 54. to October 2, 1954

Cotton 1-1/8" or more, but less than 1-11/16"
Imports Feb. 1, 19 54, to October 12, 1^54

Established Quota (Global)

Imports

Established Quota (Global) Imports

70,000,000

324,984

45,656,420 35,024,063

Imports

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Friday, October 15. 1954.

H-612

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 54, to October 12, 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

5,742
20,355
"
nc
75,606
618,723

Honduras
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 •

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. 19 54. to October 2, 1954
Established Quota (Global)

Imports

70,000,000

324,984

Cotton 1-1/8" or more, but less than1-11/16"
Impprt$ Feb. 1, 19 54, to October 12, 1954
Established Quota (Global) Imports
45,656,420

35,024,063

m*2.mm

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 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 inches or more
in staple length in the case of the following countriess United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy8
Established
TOTAL QUOTA

Country of Origin
United Kingdom
Canada . . . .
France . . . .
British India .
Netherlands . .
Switzerland . O
Belgium . . . o
<j a p a n

.
0

. . .

o o o a . . .

China
Egypt . . . .
Cuba . . . .
Germany 0 0 0
Italy o o o o
0

9 O

. 0
0 0

o .

0
0

J
Total Imports
: Established s
Imports
8 Sept. 20, 1954, to % 33-1/3* of % Sept. 20, 1954
g Pel. 12, 1954
% Total Quota i to Oct. 12, 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
_21A261

32,175
30,202

5,482,509

112,997

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

1,441,152

32,175

75,807
43,979
22,747
14,796
12,853

25,443
6,6/A

616/fl
1,599,886

38,816

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Friday, October 15. 19*54.
H-611
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, l°Ul, as modified by the president's
proclamation of April 13, 19^2, for the 12 months commencing May 29, 19$k,
as follows-

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

Wheat
Country
of
Origin

Established .
Imports
Quota
{Kay 29, 1954, to
!
Oct* 12. 135b
(Bushels)
(Busnels)

795,000
Canada
China
Hungary
Hong Kong
Japan
United Kingdom
100
Australia
Germany
100
Syria
100
New Zealand
Chile
Netherlands
100
Argentina
2,000
Italy
100
Cuba,
France
1,000
Greece
Mexico
100
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
1,000
Guatemala
100
Brazil
100
Union of Soviet
Socialist Republics
100
Belgium
100
800,000

Established
Quota

(Pounds)(Pounds)
3,815,000
2.4,000
13,000
13,000
8,000
75,000
1,000

795,000

3,815,000

5,ooo
5,000
1,000
1,000
1,000
111, 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

795,099

Imports
May 29, ISft.

H70U0700U

2,000

3,817,070

TREASURY DEPARTMENT
Washington
IMEDIATE RELEASE,
Friday, October 1 5 , 1952*.

H-611

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, 19U1, as modified by the Resident's
proclamation of April 13, 19U2, for the 12 months commencing May 29, 195k,
as follows?

Wheat
Country
of
Origin

Established :
Imports
Quota
tlfiay 29, 19$k, to
* 0ct.-JL2^1Q^k
(Bushels)
(Busnelsi
j-.,«ifr,,„~...i../-r

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
Yugoslavia
Norway
Canary Islands
Rumania
Guatemala
Brazil
Union
Belgium
Socialist
of Soviet
Republics

795,000

100
100
100
100
2,000
100
1,000
100

1,000
100
100
100

H3heat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established s
Imports
Quota
x May 293 l%k,
* to Qj&*J12^mlS$k
(pounds)
(pounds)
3,815,000
3,815,000
2li,000
13,000
13,000
8,000
70
75,000
1,000

5,ooo
5,000
1,000
1,000
1,000

iU,ooo
2,000
12,000
1,000
1*000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

2,000

IMMEDIATE RELEASE,
Friday, October 13, 1954.

TREASURY DEPARTMENT
Washington

182
H-610

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 October 2, 195U, inclusive, as follows!

Commodity

:
t Period and Quantity
i

i Unit s
5 of
t Imports as of
8 Quantity; Oct. 2. 1954

Whole milk, fresh or sour Calendar year 3,000,000 Gallon 35,633
Cream Calendar Year 1,500,000 Gallon 722
Butter July 16, 1954- 5,000,000 Pound 95,829
Oct. 31, 1954
Fish, fresh or frozen, filleted,
etc., cod, haddock, hake, pollock, cusk, and rosefish

Calendar Year

Pound

28,958,672

White or Irish potatoes!
Certified Seed
Other
,

12 months from 150,000,000 Pound
Sept. 15, 1954 329,100,000 Pound

103,899

33,950,386

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

200,000

Head

3,958

Cattle, 700 Lbs. or more each Oct. 1, 1954(other than dairy cows)
Dec. 31, 1954

120,000 Head

Walnuts..... Calendar Year 5,000,000 Pound Quota Filled
Alsike clover seed 12 months from

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

July 1, 1954

1,500,000 Pound

12 months from
July 1, 1954

1,709,000 Pound

Quota Fill'

301,787

Peanut Oil • 12 months from
July 1, 1954

80,000,000 Pound

Rve. rye flour, and rye meal 12 months from
J
'
July 1. 1954

186.0001000 Pound

Imports through October 12, 1954.

Quota Filled,

IMMEDIATE RELEASE,
Friday. October 15. 195^-

TREASURY DEPARTMENT
Washington
H-610

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 October 2, 195U, inclusive, as follows:

Commodity
Whole milk, fresh or sour.

Period and Quantity
Calendar year

: Unit
:
: of
: Imports as of
tQuantity; Oct. 2. 1954

3,000,000 35,633
Gallon
722

Cream ••• Calendar Year

1,500,000 Gallon

Butter July 16, 195U-

5,000,000 Pound

95,829

Oct. 31, 19$k
Fish, fresh or frozen, filleted,
ete., cod, haddock, hake, pollock, cusk, and rosefish

Calendar Year

33,950,386 Pound

28,958,672

White or Irish potatoes:
Certified Seed
Other

12 months from 150,000,000 Pound
Sept. 15, 19$k 329,100,000 Pound

103,899

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

200,000 Head

3,958

Cattle, 700 Lbs. or more each Oct. 1, 195k(other than dairy cows)
Dee. 31, 19$k

120,000 Head

Walnuts ••• Calendar Year

5,000,000 Pound

Quota Filled

Alsike clover seed •••••••••••••••• 12 months from
1,500,000 Pound
July 1, 1954

Quota Filled

*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

301,787

Peanut Oil 12 months from
July 1, 1954

80,000,000 Pound

Rye, rye flour, and rye meal ...... 12 months from
186.000,000 Pound
July 1. 1954
*

Imports through October 12, 1954.

Quota Filled

TREASURY DEPARTMENT
Washington

=*» W \^j

IMMEDIATE RELEASE,
Friday. October 15, 1954
H-609
iworS iST^-Sit?
* announced today prelinina^ figures shoeing the
f
^miionw^^f+°
~ T 2 d i t i e s o n w h i o h * » * « • " » Prescribed by

Products of the
Philippines

Buttons•».«•••««

sUnit
ii
"
~
8 Established Quota % of
t Imports as of
s
Quantity
% Quantity t October 2, 1954
850,000

Gross

566,336

vigars»...«.«.».

200,000,000

Number

Coconut Oil o*..

448,000,000

Pound

100,615,875

Cordage.........

6,000,000

Pound

1,808,163

Rice,...........

1,040,000

Pound

(Refined..
Sugars1
(Unrefined

1,904,000,000

Pound

Tobacco•

6,500,000

2,382,867

7,489,545
1,765,776,236

Pound

1,070,113

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Friday. October 15, 1954.

H-609

The Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities on which quotas were prescribed hy
the Philippine Trade Act of 1946, from January 1, 1954, to October 2, 19$h,
inclusive, as follows:

Products of the
Philippines

Established Quota
Quantity

Buttons..................

850,000

Unit
of
Quantity

Gross

Imports as ef
October 2, 195k

566,336

Cigars..... 200,000,000

Number

Coconut Oil 448,000,000

Pound

100,615,875

Cordage... 6,000,000

Pound

1,808,163

Rice 1,040,000

Pound

(Refined
Sugars
(Unrefined.........

2,332,867

7,489,545
1,904,000,000

Tobacco......... 6,500,000

Pound
1,765,776,236
Pound

1,070,113

TREASURY DEPARTMENT
WASHINGTON, D.C

IMMEDIATE RELEASE,
Thursday, October 14, 1954.

H-608

During the month of September 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
$9,981,150.

0O0

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Uodnocclgyj SiaptarriTii n If'j 1954-

«II-DM3 -//-

Two* jet , , ^
During the month of m&a£
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 off%/&*s

0O0

October 4, 1954

MSMOMMM fOl MB, .BiHfgkf
fha following transaction® were md* in direct aM guaranteed
securities of th© Government for treasury Investments £|d otSIr
accounts during %ha month ef September, 1954*
Sales- $12,509,150.00
furcl»eee a.538.Q0Q,QQ
$9,981,150.00
aiatl,r^,i"|]iirT!i'^iaiftr:'.'i.'..L;
*

' (Sga) diaries I. Brannan
Chief, XsmfeMmt* Branca
Division of Deposits ^ Investments

- 2 competitive bids. Settlement for accepted tenders In accordance
with the bids must be made or completed at the Federal Reserve Bank
°n October 21, 1954, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing October 21, 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. 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.

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Thursday, October 14, 1954.

H-607

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 October 21, 1954,
in the amount of $1,500,473,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated October 21, 1954,
and will mature January 20, 1955, when the face amount will be
payable without interest. They will be issued In bearer form only,
and in denominations of $1,000, $5*000, |10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Standard time,
Monday, October 18, 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
accepted
$200 000 or
in full
less without
at the average
stated price from
(in three
any one
decimals)
bidder will
of accepted
be

EXSKHXMC

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS, fi
^E£4.aZ*_ Oc^toberJLiijL 1954

_ C* 7

The Treasury Department, by this public notice, invites tenders for
Sl.'toO.OOO.OOO , °r thereabouts, of ._9L_-day Treasury bills, for cash and
*v
y^£&5c"""" "*""
ioaix
in exchange for Treasury bills maturing
October 21,. l g &
> in the amount of
I 1.500.U73.000 J

t0 be

issued on a discount basis under competitive and non-

competitive bidding as hereinafter provided. The bills of this series will be
dated October 21, 1954 > and'mil -ature January 20, 19$$ , > ~^n the face

amount will be payable without interest. They will be issued in bearer form onl
and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the

closing hour, two o'clock p.m., Eastern Standard time, Monday. October l8» 195k

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 companies and from responsible and recognized
dealers in inv-stent securities. Tenders from others must bo accompanied by

- 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 Tihich 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 whol-j 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 October 21, 195>k , in cash or
other immediately available funds or in a like face amount of Treasury bills
maturing October 21, 1951* • 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,

-3-

tsmx

but shall be exempt Irom 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 k2 and 117 (a) (1) of the Internal
Revenue Code, as amended by Section 115 of the Revenue Act of 19hl, the amount

of discount at v;hich 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 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, Thither 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,^baaauoadad^ 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.

STATUTORY DEBT LIMITATION
AS OF....Sejpternber<tJO, 195V

1 ,

« , .
Washington,
.9m9X9&*T..Mj.lS!$
tt
e 0nd
Llberf
A
aa
of th^AlTI}A°!\£ f
y P ° ? £ « » "mended, provides that the face amount of obligations issued under authority
C a ol
i w i «klV.«-l
™ f t of obligations guaranteed as to principal and interest by the United States ( e w e K suchgult?Ar» of i 8 ^ ° f o ^ " E y c £ held, b L t h e Secretary <* ^ e Treasury), ^shall not exceed in the aggrega ^275,000,000,000
dtmnf/ol v,..? 6, l9i6' U ^ , C ' » tU e 31'J8ec' 7?.7b>» o««tanding at any one time. For purposes of this se«ion the cwrent r e tlTFl k
-!i ° f 5 n y °. b l ^ a t i ° n >«««ed o„a discount basis which is redeemable prior to maturity at the option of the holder
Si«rf L ^ i i "
f U S Vo6 m c T 1 * ^ Thf- A c t o{ A u « U 8 t 28« 1954 » < P ' L * 686-83rd Congress) provides that during the
Ccreased by ^ 0 0 O O O ^ O ?
° 8 J l m e 3 ° ' 1 9 5 5 , the ftb°VC limitation (1275,000,000,000) shall be temporarily
he f o l o w i n table
.us T - !
«
shows the face amount of obligations outstanding and the face amount which can still be Issued under
tnis limitation:
Total face amount that may be outstanding at any one time
$281,000,000,000.00
OutstandingObligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills $ 19,509,889,000
Certificates of indebtedness
Treasury notes
BondsTreasury
„
' Savings (current redemp. value)
Depositary.
Investment series .„
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 .„

18,18)4,192,000
36.829.722,700 $ 74,523,803,700
84,182,890,950
58,088,460,169
Ul9 ,438 ,000
12 f 7rtfo)i y CHY)
28,826,634,000
H^fin'prtJ.m
„

1$$9k2k,293,119

Il2.li06.869 .LOO
272,354,966,219
334,082,950

47,831,627
1,203,426
1^^000,000

l,«?fi7,OV?,Ofo
274,276,084,222

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A
27,450,886
Matured, interest-ceased
1,079,225
Grand total outstanding
,
Balance face amount of. obligations issuable under above authority

*&9$ffij111
274 * 30U . 6l4 * 3 3 3
6 « 6 9 5 «385 » 6 6 7

;

Reconcilement with Statement of the Public Debt..Septe^er JO,. J#J=>lj.
(Data)

(Daily Statement of the United States Treasury,

September.29-X.JSSk.
(Data)

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

H-606

27^,809,874,914
28.5*?0 f lll
274,838,405,025
5^j790j692
$274,304,6llj.,333

STATUTORY DEBT LIMITATION
Washington, .October Jdj.rji^
Section
ass ^amendea,
. ^ e d , ^provia.es
i d e s tU Uh K,i"=
t ^»«-c »™"™ f c . w : ~ " ^ ; ~ | ^ ~ — 7 ~ -,. s o«c n* e £ *
Section 21
21 of
of Second
Second Liberty
Liberty BB oo nn dd Act,
Act, a
guarof that Act, and the face amount of obligations guaranteed as to principal and interest b y '^e U n i t e d y * * * * ^ * " ^ ^ !
anteed obUgations as m a y be held by the Secretary or cne ireasury/, sn**i ««. » « ™ «. .^ » s ^ ^
*:i''~it~'nrT'nt
r««anteed obUgations as m a y be held by the Secretary of the Treasury), "shallnot exceed in the aggregate »275,000,000 0 0 0
(Act of Tune 26, 1946; U.S.C., title
irX 31,1 sec. 757b),
7 S 7 M outstanding at any one time. For purposes of this sectiontne c ^ e n t re
(Act of Tune 26, 1946; U.S.C. * ~ * ""*nmsrandine at anv one time. For purposes of this section tnecurrent i
demotion value of a ^ obligation issued on a discount basis ^ i c h is redeemable prior to maturity at the option of the holder
demotion value of any obligai
shafl b T c o n s S e r e a as its S e e amount." T h e Act of August 28, 1954, (P.L. 686-83rd Congress) provides that during the
shall be considered as its fai
p e r i o d f L g S V S A u g i t 2?, 1954, and ending June 3of 1955, the above limitation ($275,000,000,000) shall be temporarily
period beginning
ontable
August
2 the face amount of obUgations outstanding and the face amount which can still be issued under
following
*^ The jII
az n#v/»
nnn shows
nnn
increased
b y $6,000,000,000.
this limitation:
ru^f\ rm
Total face amount that may be outstanding at any one time
§281,000,000,000.00
OutstandingObUgations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills .......... _ $19,509,889,000
Certificates of indebtedness.- —..
18,184,192,000
Treasury notes
...-# , 8 2 ? ,722,700 $ 74,523,803,700
BondsTreasury
84,182, 890,950
Savings (current redemp. value)
5o,0oo,i{.60,169
Depositary........
..-..-.-..-..
419,438,000
Investment series
™..
12,73%504,QQQ
155,424,293>US
Special FundsCertificates of indebtedness
.
28,826,634,000
Treasury notes....
1%58Q,235,400
J & J S f »gfg A g O
Total interest-bearing.-..—............................ ...................... ........ 272,354,966,219
334,082,950
Matured, interest-ceased
Bearing no interest:
United States Savings Stamps
.....
Excess profits tax refund bonds
Special notes of the United States:
Intemafl Monetary Fund series..........
Total_
-

47,831,627
1,203,^20
1,538,000,000
- ».

Guaranteed obUgations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A
»...
27,450,886
Matured, interest-ceased
—~.
1,0 (9,225
Grand total outstanding
.„
Balance face amount of obUgations issuable under above authority

1„^87,035,053
274,276,084,222

? 0,530, 111
—
„

Reconcilement with Statement of the Public Debt..Sej>tejfeer.J0^..1g5k
(Date)
(Daily Statement of the United States Treasixy,...M S e p t e n b j ^ . J O * . . l^Sr.....)
(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....,
„

£ | g ftg I P
6 , 6 9 5 >3°? , C O ?

.
27u,809,v. 7 4 , 9 1 4
20,53",111
274,838,405,025
b33 t 79Qj692

$274,304,614,333

H-606

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Saturday, October 9, 1954.

H-605

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated October 14, 1954, and to mature January 13, 1955, which were
offered on October 5, were opened at the Federal Reserve Banks on
October 8.
The details of this issue are as follows:
Total applied for - $2,137,233,000
1,500,189,000 (includes $200,465,000
Total accepted
entered on a noncompetitive
basis and accepted in full
at the average price shown
Average price
below)
- 99.756 Equivalent rate of discount approx.
0.966$ per annum
Range of accepted competitive bids:
High

- 99.767 Equivalent rate of discount approx.
0.922$ per annum
Low
- 99.754 Equivalent rate of discount approx.
0.973$ per annum
(82 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 FranciscoTOTAL

Total
Applied for
$
29,123,000
1,604,344,000
29,935,000
31,838,000
12,846,000
22,870,000
188,231,000
38,245,000
17,521,000
42,637,000
40,668,000
$2,137,283,000
79,025,000

0O0

Total
Accepted
> 26,083,000
1,018,039,000
19,0^5,000
31,838,000
12,256,000
22,290,000
166,332,000
37,875,000
17,467,000
42,537,000
39,724,000
$1,500,189,000
66,713,000

•- U5
ma fmrnmy mm?tmmt

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tm% «t»ttU* **•* t*» tmdmm taw %l$$m$000*00®,

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306,131,000

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ma •a#i)7rSO»ooo

ht*!§7»aG0
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tX»$00,l»,OOQ

October 7, 1954

Dear Mr. Hall:
It is with regret that I am acceding to the request
in your letter of October 1, 1954, and approving your
application for retirement as Director of the Bureau of
Engraving and Printing. I am doing so as I can fully
appreciate your desire to enjoy a well-earned rest and
be relieved of the many burdens you have carried for
thirty years directing the operations of the Bureau.
You will be missed both officially and personally
by your many Treasury friends and associates, and I wish
to express my appreciation for your loyal devotion to
duty and the conscientious efforts you have made over a
long period of years to improve the operations and procedures of the Bureau.
Kindest regards and best wishes for many years of
happiness and the best of health.
Sincerely,

(Signed) G. M. Humphrey

Mr. Alvin W. Hall
Director, Bureau of
Engraving and Printing
Treasury Department
Washington, D. C.

October 1, 1954

My dear Mr. Secretary:
Almost half of my life has been devoted to the Bureau
of Engraving and Printing and its many varied and complex
problems. I have carried the burdens of the office of the
Director since 1924.
During my service with the Bureau, with the aid and
cooperation of a competent staff and skilled employees,
much has been accomplished to increase efficiency and
reduce production costs. There is yet much to be done
and it may require several years of hard work to bring
the constructive objectives to completion.
I feel now that younger hands should take over the
management of the Bureau, therefore, I should like to retire on November 1, 1954.
May I take this opportunity to express my appreciation
for the privilege and honor of serving under your inspiring
leadership.
Very sincerely yours,

(Signed) A. W. Hall
Director

Honorable George M. Humphrey
Secretary of the Treasury

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Thursday, October 7, 1954

H-604

Secretary Humphrey today regretfully approved an
application for retirement submitted by Alvin ¥. Hall,
Director of the Bureau of Engraving and Printing since
1924.
Mr. Hall's retirement becomes effective November 1.
"I wish to express my appreciation for your loyal
devotion to duty and the conscientious efforts you have
made over a long period of years to improve the operations
and procedures of the Bureau," Secretary Humphrey wrote
the retiring Director.
The Bureau designs, engraves and prints currency,
securities, postage and revenue stamps, Government checks,
military commissions and certificates, and other engraved
work for the various Government agencies, the Board of
Governors of the Federal Reserve System, and insular
possessions of the United States.
Letters exchanged by Mr. Hall and Secretary Humphrey
are attached.

yy- cof

Secretary Humphrey today regretfully approved an application

for retirement submitted by Alvin W. Hall, Director of the Bureau
of Engraving and Printing since 1924.
Mr. Hall's retirement becomes effective Kovember 1*
"I wish to express my appreciation for your loyal devotion
to duty and the conscientious efforts you have made over
a long period of years to improve the operations and procedures
of the Bureau," Secretary Humphrey urote the retiring Director.
The Bureau designs, engraves and prints currency, securities,
postage and revenue stamps, Government checks, military commissions
and certificates, and other engraved work for the various Government
agencies, the Board of Governors of the Federal Beserve System,
and insular possessions of the United States,
Letters exchanged by Mr. Hall and Secretary Humphrey are attached,

©ototmr 1» 1954

A t e * * 1mlf ofraylife ims h®e® derated to the i s m s
of lagrmving and -MntdUtg and its aa^r varied and complex
problems. I have carried ih® burdens of the office of the
Baring iay service «itfc the mrma, rith the aid and
cooperation of & emfietent stiff and ekilled aep&cgteeff,
much has baas afmmv:;lisfeed to increase efficiency' and reduce p p ^ ^ t l ® ® ©oste* there Is yet wash to lie toss am
It niey r*sfi&*e s e v w a imam at hmd work to hr$m the
TtWmfamS* **m amm&m*m#™*m f ^ | M e V w b ? 1 n i

"fiWS» ^y%W^^yi^W^ta»>13^«l^l

X feel aev the* youn^r hands should take ow the
management of Hie Buxe&ii, ti»re#oi>% 1 ^ o a M l&® t®
retire on Hov^.b^r %, 1§$4*
3^y f tele %m* mpmmrtmmw to eoqpree* s^r tpmiatftai
for the jfttftOi** «wi hmm mi aeee&ig mdm? your SJteplriiig
%&admrmlhlp*
¥eey etfteeeraiiy yewe*

£r^ «£
Honorable Qeorye 1* ihrnphrey
Seearetiay of the freeenry

Seer hr* Hall:
Xt ie etth repret that S as eeeedteg to the reejoeet
la yarn letter of Oeteher 1$ 19J4* and a^vrvrifta; yawp
4p|»licatioB for retirement 'mm Itreotor of the tar^am of
and M e t i n g * f at doing #© at 1 ee» tally
ycwr 4t»ire to enjoy a mll*mammd mat ami
he rmtlmmd mi Mm mmw tmrdmm yoe l a m o«rt#<t for
thirty y & $ m dlrmztinp the efNaretiaaal oi* the
fee « d H he aaleeed hath e l X t e M U y end peteanally
ry your many Tr^aai^y Iri*ft4e and associates, and 1 vieh
to expreee ay «#preoiiiti#ji for y o w loyal devotion to,
dety and the ooa»#ii®tio^ effort* yee harto maAt erer a
Jong period of y o w i to lepreve the ejMteUeae ead pre»
eederee of the
Ktedest regards mm hamt eieaee for a*sy yeere of
happiness ami the hoat of health,

(Signed) ff, at. Ifciapbrey

•>• alvin if. Itall
I^reetor, Bur au of
Mpanrlaf end fluting
P» C«

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Monday, October 4, 1954.

H-603

The Treasury Department today announced the subscription and
allotment figures with respect to the current cash offering of
1-5/8 percent Treasury Notes of Series B-1957. These notes are
dated October 4, 1954, and will mature May 15, 1957.
Subscriptions and allotments were divided among the several
Federal Reserve Districts and the Treasury as follows:
Total
Subscriptions

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

360,210,000
3,307,656,000
322,236,000
517,9^6,000
373,284,000
360,303,000
1,169,919,000
239,615,000
162,781,000
233,995,000
287,668,000
853,808,000
155,000
$8,I89,576,000

0O0

Total
Allotments
$

181,589,000
1,658,598,000
162,858,000
262,202,000
190,110,000
189,311,000
596,755,000
125,673,000
87,476,000
123,712,000
147,905,000
428,763,000
80,000
$4,155,032,000

Monday, October k, 19$k*
the treasury Bepartsieiit today announced the subscription amd allotment figures with respeet to the ©nrreiit oaah offering of l~5/$ peroeat
Treasury Sotea of Seriea M*>19$7* f&a*a tmtea are dated Ootoher k9 195k,
amd mill mature my l$9 W$7*
Subaeri^tione and allotments were divided among the eeveral Federal
Heeerve Biatriets and the freaewy an foUowat
Federal Heeerve
District

total
Bhh*mri®ti&ma

fotal
JUlotmeota

Boeton
Hew Tork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Loxiis
Minneapolis
Kansas City
Bailee
San Francisco
Treasury

TffiAh

§8,119,576,000

360,110,000
3,307,656,000
322,236,000
517,91*6,000
3T3,28h,000
360,303,000
1,169,919,000
239,615,000
162,781,000
233,995,000
207,668,000
653,808,000
155,000

181,539,000
1,658,598,000
162,858,000
162,202,000
190,110,000
189,311,000
5f6f755,©0®
lt5,673,000
S7,lt?6,000
123,712,000
I4i7,f05,000
1*28, 763,000

ao.ooo
H*,l55,O32,©0©

- c -

competitive bids. Settlement for accepted readers In accordance
with the bids must, be made or completed at the Federal Reserve Bank
on October yii, I9>4. yn cash or other immediately available funds_
or In a like face amount of Treasury bills maturing October 14, ±954.
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 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) (±) 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.

RELEASE K0RITI1IG NEWSPAPERS,
Tuesday, October 5, 1954,

H-602

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 October 14, 1954,
in the amount of $1,5.00,255,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated October lk3 1954,
and will mature January 13, 1955
when the face amount will be
payable without interest. They will be Issued in bearer form only,
and in denominations of $1,000, $5,000, &10,000, $100,000,
$500,000,, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Standard time,
Friday, October 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
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 he 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

TREASURY" DEPARTMENT
Washington

''L

FOR EEIJEASE, MQRMIIG NEftSPAPEaS, Tuesday, October 5, 1954
The Treasury Department, by tfeia public notice, invites tenders for
$1,500^000^000

, or thereabouts, of

in exchange for Treasury bills maturing
$ 1,500,255,000

~day Treasury bills, for cash and

Qeteber 14, 1954

, in 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

October 14, 1954

p-f

, and*mil mature

—

Jaaraary 13, 1955

, 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, $1D,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 rum., Eastern Standard time, Friday, Qetober 8, 1954
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 investment securities. Tenders frem others must be accompanied by

,
,

- 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 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 without stated price from any one bidder/will be accepted

in full at the average price (in three decimals) of accepted coupetitive bids.
Settlement for accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on Oetober 14, 1954 , in cash or
other immediately available funds or in a like face amount of Treasury bills
maturing Oetober 14, 1954 . Cash and exchange tenders will receive equal
tmit

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 so..ci?J. tro.itment, 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,

- 3 jdigKa:

but shall be exexe.pt from all taxation now 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 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 IT? of the Revenue Act of 1941, the amount

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. Ul8, xxxxxxstizsLt, 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
WASHINGTON, D.C
RELEASE MORNING NEWSPAPERS,
Tuesday, October 5, 1954,

H-601

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated October 7, 1954, and to mature January 6, 1955, which were
offered on September 30, were opened at the Federal Reserve Banks on
October 4.
The details of this issue are as follows:
Total applied for - $2,213,543,000
1,500,490,000 (includes $188,089,000
Total accepted
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.756 Equivalent rate of discount approx.
0,966$ per annum
Range of accepted competitive bids:(Excepting one tender of
$570,000)
High

- 99.760 Equivalent rate of discount approx.
0.949$ per annum
Low
- 99.753 Equivalent rate of discount approx.
0.977$ per annum
(6 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
$
38,228,000
1,622,221,000
29,474,000
3^,538,000
13,562,000
17,840,000
212,741,000
26,399,000
10,880,000
34,126,000
83,5^9,000
. 89,985,000
$2,213,5^3,000
0O0

Total
Accepted
$

37,728,000
983,886,000
14,474,000
27,238,000
13,092,000
16,030,000
194,761,000
26,329,000
8,586,000
34,026,000
59,055,000
85,285,000
$1,500,490,000

/~y - f: c i

E MORHIMG NEWSPAPERS,
'
•3 October 5, 195^.
The fraaamry Departaent announced last evening that the tenders for #1,500,000,000

or tbereabouta, of 91-day freasury bills to be dated October 7, 19$k, and to mat

January 6, 1955, -ahtah were offered on September 30, were opened at the Federal
Reserve Banks on October h.
The details of this issue are as follows:
Total applied for - $2,213,51*3,000
Total accepted
- 1,500,1*90,000 (includes $188,089,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
Average price
- 99.756 ^mivaleat rate of diaeeoat approx. 0.966g par annum
Range of accepted ©ospetitiire bids? (faEoeptiag one tender ef $5?0,0Q0)
gigfe - 99.760 Iqpivalant rate ef discount approx. Q.9W Per annua
Um
- 99.753
"
•
H
»
»
p.977* "
(6 percent of tbe amoiiat bid f©r at the low price was accepted)
federal Reserve Total Total
Bietrict

Applied for

Boaton $ 38,228,000 I 37,728,000
New Tork
1,622,221,000
Pniladelphia
29,1*7*1,000
Cleveland
3k,536,000
Richmond
13,562,000
Atlanta
17,81*0,000
Chicago
212,71*1,000
St. Louie
26,399,000
Minneapolis
10,880,000
Kanaae City
3^,126,000
Dallas
B3,5k9,000
San Framciaco
69,965,000
Total f2,213,5U3»000 (1,500,1*90,000

Accepted
9&3#$86,000
l^,li7^,000
27,238,000
13,092,000
16,030,000
19k, 761,000
26,329,000
8,536,000
3^,026,000
59,055,000
85,285,000

•

- 7American citizens are likely to understand that a program
which helps make jobs is a program they should support. Despite
the erroneous arithmetic of our critics, the average American,
who Is a very intelligent person, is likely to realize that more
jobs and better jobs are more important to him and his family
than any amount of political oratory and promises. This is
the philosophy that this Administration has operated on. It is
the philosophy back of the tax revision law and our whole
tax program. It is the philosophy which we must continue to
follow to help promote ever-increasing prosperity for all.
The Administration's tax program, with the tax revision law
as one of its vital parts, is a mighty effort to bring our tax
laws closer to the needs of a modern America. These tax efforts
will help foster and maintain a high level of economic activity
in this country -- activity which means so much in the way of
prosperity for all, as well as greater security for our
Country and peace in the world.

0O0

1
The new law is only a great first step.
But moving beyond the tax revision law itself, I would be
the first to admit that there is much left to be done in the
whole tax field. Our tax rates are too high. But they must
remain relatively high as long as so much of our income has to
go for the protection of our nation against a possible enemy.
We will,^however, continue to pass on to the taxpayer promptly
the benefits of any spending reductions which can be achieved
while always giving first priority to our national security.
Before closing I would like to say something about "who has
benefited most" from the whole tax program of this Administration.
There has been a good deal of nonsense and misinformation
in recent weeks falsely suggesting that the Administration's
tax^program might not be in the best interest of all of our
citizens. Such nonsense seems to increase in inaccuracy the
closer we get to November.
I would like to explain why this program is in the best
interest of every American:
First, every taxpayer in America has benefited directly
from the tax cuts totaling $7.4 billion -- the largest dollar
tax cut in any year in the nation's history -- and possible
only because of cuts in spending made by this Administration.
Second, 62 cents of each dollar of the $7.4 billion goes to
individuals — and almost 25 cents of each dollar to taxpayers
with income of less than $5,000 a year. This leaves 38 cents of
each dollar tax cut going to corporations.
Third, there is nothing un-American about helping the economy
make more and better jobs, which is what our whole tax program is
doing. As we cut Government spending by more than $10 billion,
we had to help the private economy make jobs for people who used
to get their living from government spending. The tax reductions
and the tax revision bill, about which we have been talking, are
removing the barriers to business expansion, the starting of new
businesses, and so the creation of new and cheaper products and
more and better jobs.
What Is important is that this Administration's tax program
has and will continue to help bridge the transition from high to
lower government spending by helping the economy make new jobs.

- 5double taxation of dividends has made it increasingly
difficult to attract risk capital to make these jobs. So, more
of our business capital has come from borrowing rather than from
sale of stock. Companies which are heavy with bonded debt
have to move more slowly and carefully than a company which is
financed with risk capital, and-in times of economic decline
companies with a heavy debt burden are less likely to keep their
heads above water.
Another most noteworthy change is the provision which
provides more flexible allowance for depreciation. Some 600,000
corporations and nearly 10 million individuals, especially
farmers and small businessmen, will benefit from this. But
the greatest long-term benefit will be to the whole nation by
the stimulation of plant expansion, the buying of more efficient
machinery, all-around modernization -- and so cheaper products
and more and better jobs.
While tax experts talk about "depreciation," I like to think
of it more as amortization. Under the new law, a man pays the
same total tax but he can get his equipment paid for more quickly
Then he is in a position to look about for something newer and
better and the quicker write-off helps him to finance his new
purchase of better, more modern equipment. In other words,
the impulse is forward. This is certainly in the best interests
of all Americans.
In many other ways the new tax revision lav/ encourages
enterprise to go ahead. By removing barriers, it permits greater
rewards for successful inventions and for those who develop them.
It provides more liberal treatment for research and development
expenditures to create new, better and cheaper products for
everyone to enjoy. It gives more leeway to small companies which
want to retain earnings for future expansion, which would create
new jobs and better things for better living. This removal of
barriers to incentive pervades the whole new law, even down to
such things as encouraging youngsters who forward their own
education by outside work.
The tax reform law does one other thing which is generally
overlooked by our critics. It helps the security of our nation
against any potential aggressor. It does this by helping the
modernization of our industrial base, upon which all our
military strength ultimately rests. This is particularly true
in this day when new weapons and techniques are developed with
amazing speed. We have no way of knowing what the decisive
weapons may be a few years from now. But we have to make sure
that our industrial strength is modern and ready to keep abreast.
The tax revision law is not perfect. In spite of all the
care, we know that as time goes by we are hound to discover errors
and better ways of doing things. There are also additional items
in
canthe
come
code
forward
whichwith
mustrecommendations.
be the subject of further study before we

- 4of ve-^v i n t e n d e ^ n well know, the tax reform law was a result
and a Li"
M ^ fulldy * n d h e ^ ^ conducted for almost a year
taken »l* ' h ^ V * * 1 1 / ^ t h o u s a n d P a S e s ° f testimony were
S n f h n
hundreds and hundreds of witnesses were listened to.
USSeS
hnrh ^ " ^ ^
^ ° n ? W e r e g o n e o v e r b ^ t e a m s ot experts from
botn the Congressional and the Treasury-Internal Revenue staffs.
^ Throughout all of this, we tried to keep focused on one
basic premise: Are we changing the law so as to help the economy
to grow ana so create more and better jobs and better living
fa
for everyone?
In addition, of course, we tried to see if we couldn't put
more certainty into the law. Economic progress and clarity do
have a real connection. As you gentlemen also know, many of
our tax laws have been vague and ambiguous. This meant that an
individual considering a new venture could not figure for sure
just what his tax liability would be. Likewise, because of
vagueness, the tax liability might be changed, subject to the
personal judgment of a tax official. We feel that more certainty
is going to permit hundreds of new ideas to be put into actual
business practice.
. ^.J^0^ sl§nificant are substantive changes which we have made
m the internal revenue code designed to restore more of the
normal incentives to business and individual progress. Probably
the most controversial of these has been the provision which
partially eases the double taxation of dividend income. Despite
une political heat which has been kindled by the opposition on
this point, it is my sincere opinion that the whole country will
benefit from this provision.
Risk capital has made possible the phenomenal growth of*
our nation, and dividends are the incentives which make people
take risks with their capital. Without this risk capital we
never could have developed the wildernesses as we have done
We couldn't have developed the mines, drilled for the oil,
built the factories, and done all the things which over the years
have led to more and better jobs and higher wages.
During the New Deal of the mid-thirties the provision for
double taxation of dividend income crept into the tax law Thus
the citizen who provided risk capital was tapped twice for taxes
The company earnings bore the full brunt of the corporate income*
tax, and when what was left reached the individual as dividends
it was subject to a second tax, this time the full personal " '
income tax.
more.
Without thinking of the personal injustice of this, let's
take
a
look
at
the
effect
oh the
economy.
It
takes
good
an
deal
the
average
development
largest
ofquick
money
of
manufacturing
nearly
toof
make
most
$15,000
a of
job.
corporations
our
of
Anatural
risk
recent
capital
resources
in
survey
theback
United
of it
one
ofcan
each
hundred
States
bea
job.
much
showed
of In

- 3infi J?L ^ ^erica's economy was stimulated by war and
nm. Ill«i s t J m u l a n t S which concealed the deadening features of
r ^ t r ^ r S U r ? ; ? o u £ h t r u l People were predicting that such
0Uld
" " V^ttT
, ^ e t 0 p l a g u e u s a s t h e artificial stimulants
Z i f ^ ' i i^d f 0 r t e n y e a r s o r m o r e ' Congressional
C
~ ^ t t e e ? ^ . ^ e l u d i n g both Democrats and Republicans alike,
urged revision 01 our cumbersome tax structure so as to free
normal incentives to business progress. In addition to the
H ^ S r ! o 3 1 ° n ^ c o m m jttees, such groups as taxpayer organizations,
oar associations, xarm associations, labor unions, small businessmen, accountants, and many more made demands for tax revision.
K 2 n ? ^ r ? m a n y recornmendations made, there was wide agreement,
but little happened. Tax revision became like the leather,
which everybody talked about but nobody did anything about.
When this Administration came in office, we were told that
getting a major tax revision bill adopted early in our
Administration was simply impossible. The experts said it was so
technically difficult and cumbersome that we had better not set
our hopes too high.
But President Eisenhower himself had become deeply convinced
of the need of tax reform. Also, President Eisenhower has a
very deep suspicion about the word "impossible." Very soon after
taking office, he instructed the Treasury to proceed with the
basic job of recommending tax revision, and he always helped
when the going was tough. Last March, In a nation-wide television
broadcast, he described his tax proposals as "the cornerstone"
of the Administration's entire effort. This appeal contributed
mightily to final Congressional approval of the tax revision bill.
In the Treasury proper, the work of producing tax revision
recommendations was headed by Under Secretary Marion Folsom,
a man of wide experience in business and tax matters, who brought
to work with him two other outstanding tax authorities -Dan Throop Smith, Professor of Finance at Harvardj and Kenneth
Gemmill, a Philadelphia tax attorney.
Tax revision was also lucky in the leadership on Capitol
Hill. Russell Train, txhe able Clerk of the House Ways and Means
Committee, told you on Wednesday of this week of the progress
of the tax revision bill through the Congress. As most of you
know, a most vital force back of the drive to get tax reform was
Chairman Dan Reed of the Ways and Means Committee, an ardent and
courageous leader in the tax field. In the Senate, likewise,
tax revision came under the wise handling of Eugene Mlllikin,
Chairman
of the
the
Senate
Finance
Committee.
Both
a
field
superb
government
the
since
technical
House
tax
and
1920s.
man
assistance
the
who
Senate
hasfrom
been
committees,
the
giving
staffexpert
of
headed
course,
guidance
by Colin
had inP.
this
Stam,
y6a

- 21nH1w^

Provisions in the law which remove hardships from
Sole af thevPoo^d? di^c* b6nefitS Whlch our citizens Si
note as they come to pay their income taxes next serin*
Incidentally, they also will notice the benefits of th!"rest of
has ^ f ^ r a ^ ° n t S t a x P ^ a m , which in this calendar year
has made enective tax cuts totaling $7.4 billion — the largest
But from^r' "V^ ^'^ of th*S °* ^' other coStrJ SS '
But from tne new Internal Revenue Code specifically, tax pressures
will be eased where they have hurt millions of taxpayers severely
Darenfsno-^y^^H ^ th0B® Wh° Wil1 benefit are^orking movers;
schno? °^? h l H d r e ^ W h ° a r e h e l P i n S t 0 Pay their way through
?™??ii, llQt P° llcemen > firemen, teachers, and their widows;
iamines with heavy medical expenses; farmers who want to buy new
equipment: people with sick and accident policies; taxpayers w^th
non-relative dependents; farmers doing soil and water conservation;
and many, many others.
vauxua,
And in connection with these individual changes, you peoole
here tomgnt probably already are aware of the work that the *
Treasury and the Internal Revenue Service are doing to acquaint
the taxpayer with his rights under the new law. Big and numerous
as the changes are, we expect that many citizens will have to
keep going to the Internal Revenue offices for helo in large
numbers in the year ahead. Regulations are being rewritten and
simplilied and forces are being prepared and trained to help.
Helpful as these direct benefits are, they can In no way
compare in my mind with the indirect benefits which will flow
from the tax revision law. By removing restraints, this new
law will release new energies throughout our economy. These
energies work quietly but steadily to create new enterprises
more and better jobs, new productive efficiencies, larger '
payrolls, and rising standards of living for all the 160 million
people of this nation. It is these indirect but dynamic benefits
which I should like to talk about mainly tonight.
First, however, I would like to say a word about the background of the new law and about the work that went into revising
it.
°
The tax structure that we found on coming to Washington had
grown up haphazardly and illogically. In the past 20 years,
most of the changes in the tax laws were put into effect under
the pressure of crisis of war or depression. The Congress reached
for income where it could find it. In the process of imposing
new taxes to meet new emergencies, stifling burdens were placed
upontax
those
veryto
parts
the
nation
provide
for
The
the
main
burden
purpose
make
of of
it
the
easier
tax
revision
forwhich
the economy
bill is
to
move
toprogress.
rearrange
forward.

TREASURY DEPARTMENT
Washington
FOR RELEASE A.M. NEWSPAPERS,
Saturday, October 2, 1954.

Remarks by Treasury Secretary George M. Humphrey
at Tax Institute of The University of Texas
School of Law, Austin, Texas, about 6 p.m., CST,
Friday, October 1, 1954.
TAX PROGRAM BENEFITS EVERY AMERICAN

I am very happy to be a part of this four-day institute
given over to study of the tax revision law passed by the last
Congress and signed into law by President Eisenhower in August.
In addition to the privilege of being in the great State
of Texas, I always consider it a privilege to talk about anything
as important and vital to our nation as I think this tax revision
law is.
I realize that most of you people here tonight are experts
or near-experts on the tax laws of our country. But notwithstanding your special knowledge in this field, I hope you will
bear with me if I do not try to get too technical but merely give
you some of the basic philosophy which is back of this vital piece
of legislation.
The tax revision law -- or the Internal Revenue Code of
1954 __ is one of the most important of our time because it sets
a trend that willlead to greater economic progress for the country
as well as bring relief to millions of individuals who have
suffered specific hardships under the old tax code.
As you people well know, this is the first time in some
75 years that there has been a major revision of the whole
federal tax structure. In addition to reducing restraints on
business and removing hardships on individuals, this revision has
attempted to make the tax laws more simple and certain and also
to close loopholes under which some persons could have avoided
their fair share of the tax bureden.
H-^no

f^^y^J
,
Sfc>
< ^ ^ . £U*6 2~ flirty

Z-X_
' '

C^^

First draft
Sept. 20

Remarks by Treasury Secretary George M. Humphrey at Tax Institute
of The University of Texas School of Law, Austin, Texas,/7i06 p.m.
/ja
Friday, October 1, 1954.
^^c^
£
TAX PROGRAM BENEFITS EVERY AMERICAN
I am very happy to be a part of this four-day institute
give* over to study of the tax revision law passed by the last
Congress and signed into law by President Eisenhower in August.
In addition to the privilege of being in the great State
of Texas, I always consider it a privilege to talk about anything as important and vital to our nation as I think this tax
revision law is.
I realize that most of you people here tonight are experts
or,near-experts on the tax laws of our country. But notwithstanding your special knowledge in this field, I hope you will
bear with me if I do not try to get too technical but merely
give you some of the basic philosophy which is back of this vital
piece of legislation.
The tax revision law — or the Internal Revenue Code of
1954 --is one of the most important of our time because it
sets a tread that will lead to greater economic progress for
the couitry as well as bring relief to millions of individuals
wJ?io have suffered specific hardships under the old tax code.
As you people well know, this is the first time in some
75 years that there has been a major revision of the whole
federal tax structure. In addition to reducing restraints on
business and removing hardships on individuals, this revision
has attempted to make the tax laws more simple and certain and
also to close loopholes under which some persons could have
avoided their fair share of the tax burden.

- 2 The provisions in the law which remove hardships from
individuals provide direct benefits which our citizens will
note as they come to pay their income taxes next spring.
Incidentally, they also will notice the benefits of the rest
of the Administration's tax program, which in this calendar year
has made effective tax cuts totaling $7.4 billion -- the largest
dollar tax cut in the history of this or any other country.
But from the new Internal Revenue Code specifically, tax pressures will be eased where they have hurt millions of taxpayers
severely in bygone years. Ame^te those who will benefit are

^L\CJ^-

working mothers, parents of children who are helping to pay

^lr^-

A^J&eflP^way through school, families^jii^^r^Seavym
^^

y^^^y^/^iyM.

expenses,

ff%^rL<**m+^e»-+A~ y-^^^sg0^t^Zy, ot^^^s^L^^x to-c*^*^^-*

^-" retired people" on modest»-4fff<jomes,A farmers^ who want to buy new

^^J<^
equipment, anjd^tfahy.others

And in connection with these Individual changes, you
people here tonight probably already are aware of the work that
the Treasury and the Internal Revenue Service are doing to
acquaint the taxpayer with his rights under the new law. Sssfe^
4^ig and numerous as the changes are, we expect that fcfee/citizens
will have to keep going to the Internal Revenue offices for help
la large numbers in tSe year ahead*<~~* ?***?* "^fr /*~*7

t ^ y

Helpful as these direct benefits are, they can in no way
compare in my mind with the indirect benefits which will flow
from the tax revision law. By removing restraints, this new
law will release new energies throughout our economy. These
energies work quietly but steadily to create new enterprises,
more and better jobs, new productive efficiencies, larger
payrolls, and rising standards of living for all the 160 million

people of this nation.

It is these indirect but dynamic benefits

which I should like to talk about mainly tonight.

parents of children who are helping to pay their way
through school; retired policemen, firemen, teachers,
and their widows; families with heavy medial expenses;
farmers who want to buy new equipment; people with sick
and accident policies; taxpayers with non-relative
dependents; farmers doing soil and water conservation;
and many, many others.

- 3 First, however, I would like to say a word about the background of the new law and about the work that went into revising it.
The tax structure that we found on coming to Washington had
grown up haphazardly and illogically.

In the past 20 years,

most of the changes in the tax laws were put into effect under
the pressure of crisis of war or depression. The Congress
reached for income where It could find it. In the process of
imposing new taxes to meet new emergencies, stifling burdens
were placed upon those very parts of the nation which provide
for progress.
As I have saidbefore, the Federal Government had gottej#
itself i m & a fix something -like that of a camper who £ t m a s
routed out airtight to get away from an approaching fgfPest fire*
In a hurry, he grUfeg his equipment every wkich wa^P He piles
seme on his back; he n^chejl some to his belty^some he ropes
around his neck; some he setoffs into his.#§ots. Under the
stimulus of danger and excitem^t, Jp^lunges along at first
pretty well. Then he realizes^Mfe_ the stuff in his boots hurts
his feet and the lopside<|^tad on his*5q%ack makes it hard to
walk straight. The J^fad on his neck has S%used a crick. If
he is going to
rearrange

out to icivilization, he see^that he must

entire load.

If he is a good woodsm%n, he repacks

it injmlance so that he finds it easier to walk tfran^o stand
^.y'~

Tfca£--h^*~yge©n"3he main purpose of the tax revision bill^t^
to ££X rearrange the tax burden to make it easier for the
economy to move forward.
For years America's economy was stimulated by war and

inflation, stimulants which concealed the deadening
features of our tax structure. Thoughtful people were predicting

that such restrictions would rise to plague us as the artificial
stimulants were withdrawn. And for ten years or more, Congressional
committees, including both Democrats and Republicansralike,
urged revision of our cumbersome tax structure so as to free
normal Incentives to business progress. In addition to the
Congressional committees, such groups as taxpayers organizations,
bar associations, farm associations, labor unions, small businessmen,
accountants, and many more made demands for tax revision.
Among the many recommendations made, there was wide agreement,
but little happened.

Tax revision became like the weather,

which everybody talked about but nobody did anything about.
When this Administration came in office, we were told that
getting a major tax revision bill adopted early in our Administration was simply impossible. The experts said it was so
technically difficult and cumbersome that we had better not
set our hopes too high.
But President Eisenhower himself had become deeply convinced
of the need of tax reform.

Also, President Eisenhower has a

very deep suspicion about the word "impossible."

Very soon

after taking office, he instructed the Treasury to proceed with
the basic job of recommending tax revision, and he always helped
when the going was tough.

Last March, in a nation-wide television

broadcast, he described his tax proposals as "the cornerstone"
of the Administration's entire effort. This appeal contributed
mightily to final Congressional approval of the tax revision bill.
In the Treasury proper, the work of producing tax revision
recommendations was headed top by Under Secretary Marion Folsom,
a man of wide experience in business and tax matters, who a^v +/x_

work with him two other outstanding tax authorities -- Dan Throop
Smith, Professor of Finance at Harvard; and Kenneth Gemmill, a
Philadelphia tax attorney.
^^^__
_______

- 5Tax revision was also lucky in the leadership on Capitol
Hill.

Russell Train, the able Clerk of the House Ways and Means

Committee, told you on Wednesday of this week^-^I j^uiliT^frnnri, of
the progress of the tax revision bill through the Congress.

most of you know, a most vital force back of the drive to get
tax reform was Chairman Dan Reed of the Ways and Means Committee,
an ardent and courageous leader in the tax fieldy

In the Senate,

likewise, tax revision came under the wise handling of Eugene
Millikin, Chairman of the Senate Finance Committee'.
Both the House and the Senate committees, of course, had
superb technical assistance from the staff headed

by Colin

F. Stam, a government tax man who has been giving expert guidance
in this field since the 1920s.
As you gentlemen well know, the tax reform law was a result
of very intensive study and hearings conducted for almost a year
and a half.

More than five thousand pages of testimony were

taken, and hundreds and hundreds of witnesses were listened to.
Then their suggestions were gone over by teams of experts
from both the Congressional and the Treasury-Internal Revenue
s u ai is.
Throughout all of this, we tried to keep focused on one
basic premise:

Are we changing the law so as to help the economy

to grow and so create more and better jobs and better living
for everyone?
In addition, of course, we tried to see if we couldn't put
more certainty into the law. Economic progress and clarity do
/
<yiZtoo
have a real connection. ^As you gentlemen aseil know, many of
our tax laws have been vague and ambiguous.

This meant that an

individual considering a new venture could not figure for sure
just what his tax liability would be. Likewise, because of
vagueness, the tax liability might be changed, subject to the
personal judgment of a tax official. We feel that t n e ^ S e ^
certainty is going to permit hundreds of new ideas to be put
into actual business practice.
hormal Tn^enTTVFs~*To Business aim i^uxvmuai yiv&J.^<jv*—±*• ~*~~^

the most controversial of these, o4L-#©tp&ee, has Been the provision which partially eases the double taxation of dividend
income. Despite the political heat which has been kindled by
the opposition on this point, it is my sincere opinion that the
whole country will benefit from this provision.
Risk capital has made possible the phenomenal growth-of
our nation, and dividends are the incentives which make people
take risks with their capital. Without this risk capital we
never i^ould have developed the wildernesses as we have done.
We xpuldn't have -d4g^the mines, JDUilt the factories, and done
all the things which over the years have led to more and better
jobs and higher wages.

During the mid-thirties the provision for double taxation
of dividend income crept into the tax law. Thus the citizen
who provided risk capital was tapped twice for taxes. The company
earnings bore the full brunt of the corporate income tax, and
when what was left reached the individual as dividends, it was
subject to a second tax, this time the full personal income tax.
Without thinking of the personal injustice of this, let's
take a quick look at the effect on the economy.

1» ynl.i r p n r 1 a

we4^-know,\t takes a good deal of money to make a job. A recent
survey of one hundred of the largest manufacturing corporations
in the United States showed an average of nearly $15,000 of risk
capital back of each job. %* ^ ^ c^^U^^c^^^y' /?
education by outside woric.

- 6Most significant are substantive changes which we have made
in the internal revenue 231$ code designed to restore more of the
normal incentives to business and individual progress. Probably
the most controversial of these, c>£-JTO^ee, has Been the provision which partially eases the double taxation of dividend
income. Despite the political heat which has been kindled by
the opposition on this point, it is my sincere opinion that the
whole country will benefit from this provision.
Risk capital has made possible the phenomenal growth-of
our nation, and dividends are the incentives which make people
take risks with their capital. Without this risk capital we
never i(ould have developed the wildernesses as we have done.
C

jfa^siMr&i ^A

<?L*y£y-*~LtJ^n- ^Li. o^i^

We xsuldn't have -dafe^the mines,^buiit the factories, and done
all the things which over the years have led to more and better
jobs and higher wages.

During the mid-thirties the provision for double taxation
of dividend income crept Into the tax law. Thus the citizen
who provided risk capital was tapped twice for taxes. The company
earnings bore the full brunt of the corporate income tax, and
when what was left reached the individual as dividends, it was
subject to a second tax, this time the full personal income tax.
Without thinking of the personal injustice of this, let's
take a quick look at the effect on the economy.

A» you penplp

weii-infow,\t takes a good deal of money to make a job. A recent
survey of one hundred of the largest manufacturing corporations
in the United States showed an average of nearly $15,000 of risk
capital back of each job. $* "-**-<•
education by outside worK.

c^^U^^^JT/£

The double taxation of dividends has made it increasingly
difficult to attract risk capital to make these jobs.

So, more

of our business capital has come from borrowing rather than from
sale of stock.

Companies which are XSSSXZ heavy with bonded debt

companies with a heavy debt burden are less likely to keep their
heads above water.
Another most noteworthy change is *the provision which
provides more flexible allowance for depreciation.

Some 600,000

corporations and nearly 10 million individuals, especially
farmers and small businessmen, will benefit from this. But
the greatest IXlgXXXm long-term benefit will be to the whole
nation by the stimulation of plant expansion, the buying of more
efficient machinery, all-around modernization -- and so cheaper
products and more and better jobs.
While tax experts talk about "depreciation," I like to think
of it more as amortization. Under the new law7fitmari^an

v his equipment qntwlrliefl *» paid for more quickly. Then he is in
pt^yykc<^<yd»A^
-A^yfao u*^ j% ^£*U«^<L£ .Xto 4*^^/*<^ei^*x yjt I^MXZ.J, /*<^a position to look about for something newer ana betteryr In Sy>****<^
other words, the impulse is forward. This is certainly in the . ^\}
best interests of all Americans.

KA^t^to-

In many other wa^s the new tax revision law encourages
enterprise to go ahead. By removing barriers, it permits greater
rewards for successful inventions and for those who develop them.
It provides more liberal treatment for research and development
expenditures to create new, better and cheaper products for
everyone to enjoy.

It gives more leeway to small companies which

want to retain earnings for future expansion, which would create
new jobs and better things for better living. f This removal of
barriers to incentive pervades the whole new law, even down to
such things as encouraging youngsters who forward their own
education by outside work.

- 7have to move more slowly and carefully than a company which is
financed with risk capital, and in times of economic decline
companies with a heavy debt burden are less likely to keep their
heads above water.
Another most noteworthy change is *the provision which
provides more flexible allowance for depreciation.

Some 600,000

corporations and nearly 10 million Individuals, especially
farmers and small businessmen, will benefit from this. But
the greatest l&SgXXSfi long-term benefit will be to the whole
nation by the stimulation of plant expansion, the buying of more
efficient machinery, all-around modernization -- and so cheaper
products and more and better jobs.
While tax experts talk about "depreciation," I like to think
of it more as amortization. Under the new law, a maxTircah gelr——~~—s
his equipment wiftrltiiert fw paid for more quickly. Then he is in
a position to look about for something newer ana betteryP In /fr**^*^
other words, the impulse Is forward.
best interests of all Americans.

This is certainly in the

, ^\^

^-m^O^

In many other wajs the' new tax revision law encourages
enterprise to go ahead. By removing barriers, it permits greater
rewards for successful inventions and for those who develop them.
It provides more liberal treatment for research and development
expenditures to create new, better and cheaper products for
everyone to enjoy.

It gives more leeway to small companies which

want to retain earnings for future expansion, which would create
new jobs and better things for better living. This removal of
barriers to incentive pervades the whole new law, even down to
such things as encouraging youngsters who forward their own
education by outside work.

-8The tax reform law does one other thing which is generally
overlooked by our critics. It helps the security of our nation
against any potential aggressor.

It does this by helping the

modernization of our industrial base, upon which all our
military strength ultimately rests. This is particularly true
in this day when new weapons and techniques are developed with
amazing speed. We have no way of knowing what the decisive
weapons may be a few years from now. But we have to make sure
that our industrial strength is modern and ready to keep abreast.
The tax revision law is not perfect. In spite af all the
care, we know that as time goes by we are bound to discover
errors and better ways of doing things. There are also additional
items in the code which must be the subject of further study
before we can come forward with recommendations.
The new law is only a great first step.
But moving beyond the tax revision law itself, I would be
the first to admit that there is much left to be done in the
whole tax field.

Our tax rates are too high. But they must

remain relatively high as long as so much of our income has to
go for the protection of our nation against a possible enemy.
We will, however, continue to pass on to the taxpayer promptly
the benefits of any spending reductions which can be achieved
while always giving first priority to our national security.
Before closing I would like t o ^ l ^ = ^ 5 ^ ^ ^ W u t 'who has
benefited most from the whole tax program of this Administration.

Insert page 9
There has been a good deal of nonsense and misinformation
in recent weeks, falsely suggesting that the Administrations
tax program might not be in the best interest of all of our
citizens.

Such nonsense seems to increase in inaccuracy the

closer we get to November.
t

I would like to explain why this program is in the best

interest of every American:

First, every taxpayer in America has benefited directly
from the tax cuts totaling $7.4 billion — the largest dollar
tax cut in any year in the nation's history — and possible
only because of cuts in spending made by this Administration.
Second, 62 cents of each dollar of the $7-4 billion goes to
individuals

- and almost 25 cents of each dollar to taxpayers

with income of less than $5000 a year.4 This leaves 38 cents of
each dollar tax cut going to corporations.
Third, there is nothing un-.American about helping the economy
K

make more and better jobs, which is what our whole tax program is
doing.

As Mne- government @*4- ^^e&s^'spending by/$*£Lbill ion,

yO
we had to help the private economy make jobs for people who used
tax reductions and
to get their living from government spending. The/tax revision
(the
bill, about which we have been talking, are removing the barriers
to business expansion, the starting of new businesses, and so
the creation of new and cheaper products and more and better jobs.
Despite the mininformation of our critics, the tax revision
law itself actually cost corporations money. While it provides
$536 million in corporate tax savings -- or 38 percent of the

total $1.4 billion cost of the law -- it also extends the
corporate tax rate at 52 percent to April 1. This means that
corporations pay $1,200,000,000 more in taxes in fiscal 1955
than they would have without the tax revision law.

So the total

corporation tax in fiscal 1955 is increased by $664 million by
the tax revision law.
39 cents to corporations.
But those figures are not the important facts. What is
important is that this Administration's tax programVR/
a.n$0bhe/tza^

s
y^

^ - v ^

and

w)ttt&fo§^

wil1

continue to help bridge the transition from high to lower
government spending by

helping the economy make^jobs.

American citizens are likely to understand that a program
which helps make jobs is a program to support. Despite the
arithmetic of our critics, the average American, who
is a very intelligent person, is likely to realize that $ job£
and ^better j o A %& more important t&saa an- addimonal 'tax cut.
*s2^^t^»-*^uT $ &.* * • • j»(Pe4yLZ<y&cJ? s^xZy^

Gm*~*£ j^\^rn^^*-c^

This is the philosophy that this Administration has operated on.
It is the philosophy back of the tax revision law and our whole
tax program.

It Is the philosophy which we must continue to

follow to help promote ever-increasing prosperity for all.
The Administration's tax program, with the tax revision law
as one of its vital parts, is a mighty effort to bring our tax
laws closer to the needs of a modern America. These tax efforts
will help foster and maintain a high level of economic activity
in this country -- activity which means so much in the way of
• £,

<y-

f-r\ &***. £<m4*~CEy*. <s***i*y frr^Mgj,

prosperity for all, as well as f£a£e--aia^ security^in the world.

- 2with tho liy ty f e t t l f e r * f °*' accepted tenders in accordance
on O c t o W 7 Told
f"*6 ^ c o m P l e t e d at the Federal Reserve Bank
A
or i„
^ y* or o t h e r immediately available funds
k ' yZ '
or in a like face amount of Treasury bills maturing October 7 IQ^A
adjustments will be made for differences between the car value of
maturing bills accepted In exchange and the iilSe price" of thl new
D 1 J L JL 3 .

^ain ^L±?hr^?erlVe^Kr^^easury bil13' wheth^r interest or
S J e x Z l - n 3 f q e q 0 r h o t h e ^ disposition of the bills, shall not have
K
S
M
I
?
T ? i a n ? ^ ° S S f P O m t h e S a l e o r o t h e r disposition
of Treasury bills shall not have any special treatment, as such,
under the Internal Revenue Code, or laws amendatory or suppjementarv
thereto. The bills shall be subject to estate, inheritance gfft or
? ^ « r ? f ^ S e tfXeS> w h e t h e r Peroral or State, but shall be exempt
trom all taxation now or hereafter imposed on the principal or
interest thereof by any State, or any of the possessions of the
United otates, 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 not
be considered to accrue until such bills shall be sold, redeemed 0r
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 3ale or redemption'at
maturity during the taxable year for which the return Is made, as
ordinary gain or loss.
0O0 revised, and this
Treasury Department Circular No. 418,
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.

ISEd|ySXJ?EPARTMENT
^^^^^^^^^^^swxtxirmai^msssmaes^^

WASHINGTON, D.C.

FOR RELEASE, MORNING NEWSPAPERS,
Thursday, September 30, 1954

H-599

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 October 7, 1954,
in the amount of $1,500,536,000 to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated October 7, 1954,
and will mature January 6, 1955, when the face amount will be
payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Standard time,
Monday, October 4, 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 r

S&kxbckfcxk

TREASURY DEPARTl'JENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, September 30, 195%
The Treasury Department, by this public notice, invites tenders for
$1,500,000,000

, or thereabouts, of

^ —

-day Treasury bills, for cash and

~TBT~

in exchange for Treasury bills maturing

October 7, 195%

9 i n the amount of

sfe^
$1,500,536,000
, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated October 7, 195%
January 6, 195*>
, when the face
3 and"mil mature
-

* - ^

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, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock p.m.. Eastern Standard time, Monday, October k9 195k
Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99*92$. 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.
Othors 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 coy/oanies anc1 from responsible and recognized
dealers in investment securities. Tenders from othors must be accompanied by

- 2-

xyyyx

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

the tenders are accompanied by an express guaranty of payment by an incorpor
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 ther

The Secretary of the Treasury expressly reserves the right tp accept or reje

any/ or all tenders, in whole: or in part, and. his action in any such respec
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 bid
Settlement for accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on October 7, 195% , in cash or

other immediately available funds or in a like face amount of Treasury bills
maturing October 7, 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
rot have any social treatment, as such, under the Internal Revenue Code, or
lavs amendatory or supplementary thereto. The bills shall be subject to
estate, inheritance, gift or other excise taxes, whether Federal or State,

- 3XX&KXX

but shall be exempt from all taxation now or hereafter imposed on the princi

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 dis-

count at which Treasury bills are originally sold by the United States shall

considered to be interest. Under Sections ]±2 and 117 (a) (1) of the Interna

Revenue Code, as amended by Section 115> of the Revenue Act of 19kl, the amou

of discount at which bills issiied hereunder are sold shall not be considere

accrue until such bills shall be sold, redeemed or otherwise disposed of, an
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 original issue or on subsequent purchas
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 los
Bevised
Treasury Department Circular No. Ul8, imzmm&%&3 and this notice, prescribe the terns 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
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Thursday, September 30, 1954

H-598

The Bureau of Customs has adopted new regulations
covering the assessment of duties on certain coal-tar
products. The products affected are those dutiable,
under paragraph 28 of the Tariff Act of 1930, on the
basis of American selling price of like products of
domestic manufacture. The new regulations are set forth
in Treasury Decisions 53593 and 53594, both effective on
or about December 22, 1954.
Treasury Decision 53593 provides for detailed,
technical information to be supplied on invoices
covering importations of any coal-tar color, dye, stain,
color acid, color base, color lake, leuco compound,
indoxyl or indoxyl compound.
Treasury Decision 53594 makes provision for the
setting up by the customs laboratory at New York of a
central reference file of samples of such coal-tar
products, of domestic manufacture, together with
technical data, to enable customs officers to compare
each imported coal-tar product with any comparable
domestic product in order to ascertain its competitive
tariff status.
The Bureau gave notice last March, by official
publication, that it was considering establishing new
requirements as to information to be furnished on
invoices covering importations of the affected products.
The new regulations tentatively proposed at that time
drew a number of objections, largely on the basis that
the requirements might, in some cases, disclose trade
secrets and manufacturing processes.
Customs Commissioner Ralph Kelly said that as
finally drawn the new requirements are believed to
meet this objection, while at the same time providing
additional information which will make possible more°
efficient administration of the provisions of the tariff
act.
The texts of Treasury Decisions 53593 and 53594
oOo of Tuesday, Seotember 28,
appear in the Federal Register
1954.

4yf

*t*

uy^^^^-y

The Bureau of Customs has adopted regulations doaigaefo •fee>»g<
v/>^ />••*« -y^ ~y/ /' —

to*ic the assessment of duties on certain coal-tar 'products" dutiable,
under paragraph 28 of the Tariff Act of 1930, on the basis of American
selling ;price of like products,of domestic manufacture. ' ^ «
s*y~/p*$t*+« ^^^-^j fie-tyyyy^ ty$fj$ ^^y
^ 3
^J/y^Jyyy-f^
f Trcaoury Dooision 5 3 5 9 3 T to b&- -offootivo "99»"dftyB af Lur"?nPE

iir-ttJ: -nzcilTly Trnnrinrry Tlppiqii^^r-r provides for detailed, technxcal
formation to be supplied on invoices covering importations of any coaltar color, dye, stain, color acid, color base, color lake, leuco compound, indoxyl or indoxyl compound.^Treasury Decision 5359% makes preset a?r^tx, ./^^ m.m\^m^t
vision for the setting up/ by the C M o f Cfnomifft. at New York/ of a central reference file of samples of such coal-tar products, of domestic
manufacture, together with technical data, to enable customs officers
to compare each imported coal-tar product with any comparable domestic
product/ in order to ascertain its competitive tariff status.
The Bureau gave notice last March, by official publication, that it
was considering establishing new requirements as to information to be
furnished on invoices covering importations of the affected products.
The regulations aft proposed at that time drew a number of objections,
largely on the basis that the requirements *5pSl^ in some cases, dis-

I^
close trade secrets and manufacturing processes. ' Customs Commissioner
Ralph Kelly said that as finally £#4e&9*d&mz&w^y&$&^ the Require-

ments buiILILm1 are believed to meet this objection, while at the same
^J^J^IT^^^^
^Juy*J. ^*^yjp 3 * ^ ^ / ^ ^ ^ **«-^M
time providing s^y information aafig&e&mfeK&Nr efficient administration
of the provisioned the tariff act. (The texts of Treasury Decisions 53593
and 5359% appear in the Federal Register of Tuesday, September 26, 1951*--

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Wednesday, September 29, 1954

H-597

The Bureau of Customs has issued a new
edition of the "Customs Regulations of the
United States," containing amendments up to
January 1, 1954.
Ralph Kelly, Commissioner of Customs,
said that as a result of printing economies
the new regulations will be sold by the
Superintendent of Documents at $3.50 per
copy, a substantial reduction from the price
of the previous edition.

oOo

\ L*

7/- sf 7
The Bureau of Customs has issued a new edition of the "Customs

Regulations of the United States," containing amendments up to
January 1, 195%*
-fc^iFff-^w-p--^—

iiiiiliLrtiiBri'Frr^^

Lrvice Off!

Ralph Kelly, Commissioner of Customs, said that

w regulations .jftwa. ti^Superintendent of Documents
iB&ACa»i«iTifiii1riijii«11 • i»

^
/ * y

- 10 lie look forward to an expansion of markets and believe that
these tax revisions will make a real contribution to this end.
Moreover, we anticipate that the expansion will not be confined
to those mar yets that v;ould be directly stimulated by increases
in consumer purchasing power, We expect the expansion to occur
also in the markets for heavy things*-- lathes, generators, heavy
steel and machinery — the demand for which depends on the Investment of savings and the assumption of high risks by private enterprise.
The Current Situation
This discussion of our tax program is in the nature of a
progress report. We have made a substantial advance both in
reducing burdens through tax cuts of unprecedented size and In
Improving the structure of our tax law. However, much remains to
be done. In his Budget Message last January the President reserved
for further study 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.
As I have already said, further tax reductions, though badly
needed, depend largely on the budget situation. We hope by wise
tax policies and other measures to create a climate in vrhieh the
economy can grow. An expanding national income would mean an
expanding tax base, thus making It possible to provide for the
heavy costs of defense with a decreasing proportion of a growing
national income.
The current review of the Federal budget for the fiscal year
1955- vrhieh was presented on September 14, shows estimated
expenditures of $64.0 billion. This is $10.3 billion less than
the actual expenditures In the fiscal year 1953 and -$3.6 billion
less than in 1954. Some perspective for the magnitude of these
figures is obtained by the fact that the $10.3 billion savings
since 1953 exceeds total Federal expenditures in any of the vears
1920 through 1940.
However, the budget deficit for the fiscal year 1955 is now
estimated at $4.7 billion, which is $l.b billion higher than the
estimate made in January of this year. About two-thirds of this
change was due to the fact that the reductions in excise taxes
were greater than those recommended or estimated In the January
Budget Message, and most of the balance "was due to the drop in
corporate profits.
As Secretary Humphrey said when the new budget estimates were
released, "We said a year ago that we were going to keep working
to get both spending and the deficit down. We did get them down.
We are going to try to do it again this year. We shall keep
oOo
working continuously during the rest of this fiscal year to better
the estimates vie are presenting today."

127

- 9the possibility of immediate relief through tax refunds when
business is losing money and needs the relief most. It cuts down
substantially the tax disadvantages of businesses with uneven
earnings, which are apt to be the unusually risky enterprises that
are of critical importance to th$ development of the economy.
New ventures and the marketing of new products can be undertaken with greater confidence because the Government, through the
tax system, not only shares in the gains but also to a greater
extent than ever before stands ready to share in the losses of
business enterprise. The costs and uncertainties in putting out
new products are well known to you all. This provision of the new
law provides more favorable tax treatment for risks taken by .\
business both large and small.
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 ret&ined 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 sex'ved a legitimate business
purpose, particularly because the taxpayer had to show that there
was an Immediate and specific use for the retained earnings. The
tax was therefore 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. However, under the new Code the taxpayer, by
supplying information, can shift to the Government the burden of
proof as to reasonableness. Instead of having to show an immediate
and specific need for the retained earnings, „,the taxpayer will be
required to show that the retained earnings are necessary to meet
"reasonably anticipated" business requirements. An accumulation
of $60,000 can be made without threat of penalty; and the tax,
when imposed, will apply only to the portion of the retained
earnings found to be unreasonable.
By liberalizing the law and clarifying the taxpayerfs position,
these changes will eliminate the disturbing influence which the
penalty tax has had upon dividend and investment policies. The
$60,000 specific credit is of special importance to small, new
businesses since it means that during the period in which $60,000
of earnings Is being accumulated there is no possibility of the
penalty tax being imposed.
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
this follow
opportunity
with keen
to modernize
interestand
theexpand
way business
Its plant
avails
and equipment.
itself of

- 81
purposes. In recent years over three-quarters of the outside
•*•
financing: of industry has taken the form of bonded indebtedness.
This makes the economy more vulnerable in periods of business
unsettlement.
Under 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.
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 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 Co4e
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 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 200percent 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 200-percent decliningbalance 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 lav/.
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.
Acceleration in the speed of the tax-free recovery of investment
costs will facilitate the financing of new investment. Growing firms
will recoup their funds more rapidly, and thus be better able to
finance their own expansion. In other cases, the credit position
of the business will be strengthened by the increased availability
of working capital or by the fact that the tax allowances for
capital recovery will correspond more closely with the repayment
schedule for business loans.
2. Double Taxation of Dividends
The new law provides a very modest 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

- 6S£?!tl2?^required businessmen to keep more than one set of books.
These differences related,chiefly to the timing of the receipt of.
income and tne 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.
For example, assume that a taxpayer selling air-conditioning
units guarantees the product, including parts, for one year after
the sale. His experience indicates that the average cost of fulfilling the guarantee is $24 per unit. Under the old law, the full
sales price of the unit was includible in taxable Income in the year
01 the sale but the expenses of fulfilling the guarantee were not
allowed until the taxable year in which they were incurred. Under
the new law for each unit sold, $24 can be deducted as a cost of the
sale and set up in a reserve account.
Reducing restraints on economic growth
The fourth objective of our work, and the most interesting for
our consideration here, was the reduction of tax deterrents to the
expansion of investment in private business and the minimizing of
tax considerations as determinants of business decisions.
The expansion of investment is, as I have already pointed out,
basic to the economic policy of this Administration. It is necessary
for the creation of more jobs, the production of better goods at
lower prices, and the broadening of markets. A number of the
provisions in the new law are directed to this objective, the most
important by far being the new rules governing 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.
The 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.

"5 "

l?o

Loopholes
The second objective was to close loopholes. This involved
repairing more than 50 provisions in the old law which enabled some
?W4- u P a y e r S t 0 a v o i d t h e ^ share of the burden by taking advantage
oi technicalities. I will confine myself to two illustrations.
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 benefits to $100 a week. At the
same time the law is made fairer by extending this limited exemption
to all salary continuance benefits whether or not paid under an"
insured plan.
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.
In many ways the tax revision prevents businesses and individuals from avoiding their share of the tax burden. These loopholeclosing provisions will save some revenue and make the tax system
fairer.
Simplification and clarification
The third objective was to simplify and clarify the tax law.
For years taxpayers have been pleading that the law be made simple
and clear so as to lighten the burden of compliance and reduce the
amount of paper work.
In the revision, the provisions of the law have been arranged
in a more logical order, obsolete material has been deleted, and
the language has been made more certain and understandable. In some
important areas where the taxpayer had previously been forced to
rely upon court decisions and administrative rulings, clear
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.
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

- k_

from professional associations and well-informed individuals was
most helpful in revising certain sections of the bill while it was
before the Senate.
The new Code has four principal objectives: (l) to remove
inequities (2) to close loopholes, (3) to simplify and clarify the
law and (4) to reduce restraints on the economic growth and expansion
01 our free enterprise economy. I will indicate briefly how the
xirst three of these broad objectives have been achieved and dwell
at somewhat greater length on the provisions which are most important
to economic growth.
Removal of inequities
Our efforts to remove inequities have brought fairer tax treatment and reduced hardships to millions of individual taxpayers.
Although many of these changes may not be of direct interest to you
professionally, they will relieve individuals of unusual tax strains
and ipake them better and steadier customers. Among the more
significant provisions for improved tax treatment for individuals are
those relating to? (l) parents with dependent children.
receiving part-time earnings, (2) taxpayers maintaining dependent
parents in a separate home, (3) widows and widowers left with
dependent children, (4) child care expenses, (5) unusual medical and
hospital bills, (6) sickness and accident benefits, (7) large
charitable contributions, (8) sale of residence, (9) farmers making
soil and water conservation expenditures, (10) inventors, (ll) recipients of annuities, and (12) retirement income.
Certain of the new relief measures may be of particular interest
to you because they relate to marketing. For example, 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.
Under the old lav/ the business expenses of an employed outside
salesman could be deducted in arriving at adjusted gross income only
if they were reimbursed or incurred while he was away from home
overnight. Business expenses not in these restricted categories
could be deducted only if the salesman was willing to itemize all of
his deductions. In effect, the new Code treats outside salesmen like
self-employed persons with respect to these business expenses,
permitting their deduction in computing adjusted gross income even
though the salesmen use the standard deduction.
These measures are illustrative of the relief given individual
income taxpayers under the new Code. Substantial assistance has teen
provided in unusual hardship cases at a relatively modest cost.

- 3 Tax Revision
+v^ J!he s f cond .P h ase of our tax program of the past year has been
of the
hPs h ^ n P f revlslT
Internal Revenue CodL s L h revision
g
^!^!e?H
? v ^ rdu !- ^
tremendous development of our tax system
6 p riod
f
h^f,^
?
. \ ? depression, war, and defense build-up had been
napnazard
Inequities and inconsistencies crept in. Substantial
impediments oo economic development appeared. The law itself became
complex, cumoersome and, in many cases, unclear
In his Budget Message to the Congress early this year. the
President
ident stated his philosophy of tax revision as follows:
Revision of the tax system is needed to make tax
ourdens 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
wnicn will permit traditional American initiative and
production genius to push on to ever higher standards
of living and employment. Among these conditions, a
tax system with minimum restraints on small and growing
businesses Is especially important."
The new Internal Revenue Code of 1954, which was approved on
Kugusu J.O, achieves a major revision in conformity with the
President's tax philosophy and represents a new point of departure
in the evolution of our tax system. It constitutes the fir-st"
thorough overhaul of the Federal tax structure sirce lone before
the turn of the century.
The preparation of a new Code had been under way si^ce the
spring of 19^3 when the Treasury, acting at the President's
direction, joined with the Congressional tax committees ana their*
staffs in a comprehensive review of the tax laws. In this cooperative effort we had the advantage of numerous earlier studies and
suggestions for reform by individuals, professional groups and
Congressional committees. The answers to a questionnaire se^t 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 consideration.
The taxpayers themselves played a large part in the formulation
of the new Code. Throughout our work on the revision bill, we
consulted extensively with individuals and groups best informed or
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

- 2 which, in turn, means that the people who produced that
material are temporarily out of work. The dollars that
are saved in Government spending reduce work for the
man who used to get those dollars. So that big reductions
cannot be made quickly without seriously dislocating the
economy.
"As we cut Government spending, we must return to
the people in tax cuts -- as we are now doing — the
billions of dollars of Government money saved, so that
it can then be put to making new jobs for the people who
previously received their income from Government spending.
4.7 A? y?u know^ the tax cuts made in 1954 involve a reduction of
$7.4 billion -- the greatest dollar reduction made during any one
year in this country's history. Of this amount, $3 billion
represents individual income tax reduction, and $2 billion the
termination of the excess profits tax, both effective on January 1
of this year; $1 billion is due to the excise reductions effective
April 1. The balance of $1.4 billion is accounted for by the
reductions included in the recently enacted Internal Revenue Code of
1954.
Of the total reduction of $7.4 billion, about $4.6 billion was
of direct benefit to individuals. This necessarily represents a
substantial addition to their capacity to spend, save or invest — a
fact which is, of course, of great interest to those who are concerned with the future prospects in consumer goods markets. The
balance of the tax reductions which are in the first Instance of
benefit to corporations will enable business enterprises to increase
their expenditures for machinery and other new equipment in order to
create new jobs.
Personal income in the first half of 1954 was about the same as
in the first half of 1953 but lower income taxes resulted in a
significant increase in disposable personal income. As a result,
personal consumption expenditures are running above last year with
obvious significance to the marketing fields.
I want to emphasize the difference between the Administration's
balanced policy of contracting the role of the Government and leaving
a larger volume of disposable income in the hands of the people of
the country through tax reductions, and a program for bolstering
consumer purchasing power by injecting new money into the system on
the basis of a constantly expanding public expenditure and larger
Government deficits.
So long as taxes are taking nearly 25 percent of our national
income, it is obvious that the burden which they impose is severe.
Reductions over and above those already accomplished are most
desirable. However, it would be unwise and irresponsible to make
such reductions until they are justified by additional budgetary
economies.

TREASURY DEPARTMENT
Washington
FOR RELEASE ON

T)RT.TVRT?V

Remarks by Marion B. Folsom, Under Secretary of
the Treasury, before the Washington Seminar
on Marketing, Mayflower Hotel, Washington,
D. C , 1:00 p.m., E.S.T., Thursday,
September 30, 1954
HOW THE NEW TAX PROGRAM WILL AFFECT MARKETING
This year's tax legislation is significant both in its effect
upon tne national economy generally and upon markets in particular.
xou who are concerned with merchandising are unusually alert to
cnanges^in economic activity, and typically lead in sensing a
u n ^ S L l n °2 t:L ? ok - Por> this reason, I propose to deal principally
with those features of the new tax law which are expected to
contribute most to a vigorously expanding economy.
*.v,o We ^re^firmly of the opinion that if the Government provides
^ , f l g n t K l n d o f climate, free private enterprise can go ehead
on its own, and it will not be necessary to adopt a program of
„?ii ^
?- y , pu ? p i ns m o n e y i n t o t h e h a n d s o f t h e consuming public,
with the risk of further erosion of the value of the dollar.
Tax Reduction
^ This Administration has, as you know, been dedicated to the
policies of economy in Government and tax reduction. We recognized
th
o»LBiltl?J$J
t ^ x , b u r d e n s w e ^aced when this administration
came into oft ice, but also appreciated that tax reductions had to
t L m r ? s i / o f n f ^ ? L i n - ° S d e f . t 0 a v o i d unsound fiscal practices and
zne risk 0.1 iurther inflation.
Substantial progress has already been made in putting the
Government-is financial house in better order. The budget proposed
?QJ
, i r V l ? U S a d r " l n i s t ^ t i o n for the fiscal year endld June 30,
1954, was reauced by more than $10 billion. Expenditures in 1954
were nearly $7 billion less than those for the preceding fiscal
year. The deficit was reduced from $9.4 to $3.0 billion and the
19^4 casn budget was near balance.
With the large cuts in expenditures it was not only feasible
but also prudent for us to proceed with tax cuts. In the absence
of tax reduction, so large a decline in expenditures misht have had
a substantially depressing effect upon the economy. As Secretary
Humphrey stated to the Committee on Finance on April 7:
"The only way the Government can save money is to
reduce its spending. This means either reduction of
people from the Government payroll or buying less material,
H-596

ii3UV%*Jfl*>*~<0iS\i

^*»

How the New Tax Program will Affect Marketing

j^wfm m^pdG& o|!-^%Mr|raa^^^this year's tax legislation is
significant both in its effect upon the national economy generally and
upon markets in particular* You who are concerned -with merchandising are
unusually alert to changes in economic activity, and typically lead in
sensing a change in outlook. For this reason, I propose to deal principally with those features of the new tax law which are expected to
contribute most to a vigorously expanding economy.
We are firmly of the opinion that if the Government provides the
right kind of climate, free private enterprise can go ahead on its own,
and it will not be necessary to adopt a program of deliberately pumping
money into the hands of the consuming public, with the risk of further
erosion of the value of the dollar.
Tax Reduction
This Administration has, as you know, been dedicated to the policies
of economy in Government and tax reduction. We recognized the severity
of the tax burdens 3#uai±lf3dL£^

but also

appreciated that tax reductions had to be made with care in order to
avoid unsound fiscal practices and the risk of further inflation.
Substantial progress has already been made in putting the Governments
financial house in better order. The budget proposed by the previous
administration for the fiscal year ended June 30, 1954, was reduced by
more than $10 billion. Expenditures in 1954 were nearly $7 billion less
than those for the preceding fiscal year. The deficit was reduced from
$9*k to $3.0 billion and the 1954 cash budget was near balance.

2 -

With the large cuts in expenditures it was not only feasible but
also prudent for us to proceed with tax cuts. In the absence of tax
reduction, so large a decline in expenditures might have had a substantially depressing effect upon the economy. As Secretary Humphrey
stated to the Committee on Finance on April 7*
"The only way the Government can save money is to reduce
its spending. This means either reduction of people from
the Government payroll or buying less material, which, in
turn, means that the people who produced that material are
temporarily out of work. The dollars that are saved in
Government spending reduce work for the man who used to get
those dollars. So that big reductions cannot be made quickly
without seriously dislocating the economy.
"As we cut Government spending, we must return to the
people in tax cuts — as we are now doing — the billions of
dollars of Government money saved, so that it can then be
put to making new jobs for the people who previously received
their income from Government spending."
As you know, the tax cuts made in 19$k involve a reduction of %7*k
billion — the greatest dollar reduction made during any one year in
this country's history. Of this amount, $3 billion representstffeM^
paaPcBwb individual income tax reduction, and §2 billion/ the termination
of the excess profits tax, both effective on January 1 of this year;
$1 billion is due to the excise reductions effective April 1. The
balance of $1.4 billion is accounted for by the reductions included in
the recently enacted Internal Revenue Code of 1954•

- 3 -

J
Of the total reduction of $7*4 billion, about $4.6 billion was of
direct benefit to individuals. This necessarily represents a substantial
addition to their capacity to spend, save or invest — a fact which is,
of course, of great interest to those who are concerned with the future
prospects in consumer goods markets. The balance of the tax reductions
which are in the first instance of benefit t© corporations will^enable
business enterprises to increase their expenditures for/'*

Personal income in the first half of 1954 was about the same as in
the first half of 1953 but lower income taxes resulted in a significant
\^
personal
increase in disposable personal income. As a result,/person consumption
expenditures are running above last year with obvious significance to the
marketing fields.
I want to emphasize the difference between the Administration's
balanced policy of contracting the role of the Government and leaving a
larger volume of disposable income in the hands of the people of the

country through tax reductions, and ttoa^-nidf but highly piblininnd /
^q^|«a»la for bolstering consumer purchasing power by injecting new money
into the system on the basis of a constantly expanding public expenditure
and ia^^y^ej^i^^ia^ftef^es^e^lar^g^^vernment deficits.
So long as taxes are taking nearly 2$ percent of our national income,
it is obvious that the burden which they impose is severe. Reductions
over and above those already accomplished are most desirable. However,
it would be unwise and irresponsible to make such reductions until they
are justified by additional budgetary economies.

-4 Tax Revision
The second phase of our tax program of the past year has been the
general revision of the Internal Revenue Code. Such revision has been
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.
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 tax system
with minimum restraints on small and growing businesses is
especially important."
The new Internal Revenue Code of 1954, which was approved on August 16,
achieves a major revision in conformity with the President's tax philosophy
and represents a new point of departure in the evolution of our tax system.
It constitutes the first thorough overhaul of the Federal tax structure
since long before the turn of the century.

- 5 The preparation of a new Code had 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 tax laws* In this cooperative effort we had the advantage
of numerous earlier studies and suggestions for reform by individuals,
professional groups, and Congressional committees* The answers to a
questionnaire sent out by the Joint Conmittee 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 i&ich we had to deal and
provided additional valuable material for our consideration*
The taxpayers themselves played a large part in the formulation
of the new €ode* Throughout our work on the revision bill, we
consulted extensively with individuals and groups best informed on
the specifie 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*
The new Code has four principal objectives* (1) to remove
inequities, (2) to close loopholes, (3) to simplify and clarify the
law and (4) to reduce restraints on the economic growth and expansion of
our free enterprise economy* I will indicate briefly how the first three
of these broad objectives have been achieved and dwell at somewhat greater
length on the provisions -which are most important to economic growth*

- 6 ~
Bemoval of inequities
Our efforts to remove inequities have brought fairer tax
treatment and reduced hardships to millions of individual taxpayers*
Although many of these changes may not be of direct interest to you
professionally, they will relieve individuals of unusual tax strains
and make them better and steadier customers* Among the more
significant provisions for improved tax treatment for individuals are
those relating tot (1) parents with dependent children receiving
part-time earnings, (2) taxpayers maintaining dependent parents in a
separate home, (3) widows and widowers left with dependent children,
(4) child care expenses, (5) unusual medical and hospital bills,
(6) sickness and accident benefits, (7) large charitable contributions,
(8) sale of residence, (9) farmers making soil and water conservation
expenditures, (10) inventors, (11) recipients of annuities, and
(12) retirement income*
Certain of 1he new relief measures may be of particular interest
to you because they relate to marketing* For example, 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*
Under the old law the business expenses of an employed outside
salesman could be deducted in arriving at adjusted gross income only
if they were reimbursed or incurred while he was away from home
overnight* Business expenses not in thBse restricted categories could

- 7 be deducted only if the salesman was willing to itemize all of his
deductions*

In effect, the new Code treats outside salesman like

self-employed persons with respect to these business expenses,
permitting their deduction in computing adjusted gross income even
though the salesmen use the standard deduction*
These measures are illustrative of the relief given individual
income taxpayers under the new Code*

Substantial assistance has been

provided in unusual hardship cases at a relatively modest cost*
Loopholes
The second objective was to close loopholes*

This involved

repairing more than 50 provisions in the old law nhich enabled some
few taxpayers to avoid their share of the burden by taking advantage
of technicalities*

I will confine myself to two illustrations.

At the individual income tax level, sickness benefit s 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 preveits abuse by limiting the exemption of

salary continuance benefits to $100 a week*

At the same time the law

is made fairer by extending this limited exemption to all salary
continuance benefits unether or not paid under an insured plan*
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

++ 8 **

proceeds but also the interest earned after the death of the insured*
This enabled beneficiearie s 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*
In many ways the tax revision prevents businesses and individuals
from avoiding their share of the tax burden* These loophole-closing
provisions will save some revenue and make the tax system fairer*
Simplification and clarification
The third objective was to simplify and clarify the tax law*
For years taxpayers have been pleading that the law be made simple and
clear so as to lighten the burden of compliance and reduce the amount
of paper work*
In the revision, the provisions of the law have been arranged in
a more logical order, obsolete material has been deleted, and the
language has been made more certain and understandable* In some
important areas where the taxpayer had previously been forced to rely
upon court decisions and administrative rulings, clear statutory
guidance has been provided* le have tried to reduce to a minimum the
situations in which heavy reliance is placed on the judgment of the
internal revenue agent*

- 9 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 iriiich 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.
For example, assume that a taxpayer selling air-conditioning units
guarantees the product, including parts, for one year after the sale. His
experience indicates that the average cost of fulfilling the guarantee is
$24 per unit. Under the old law, the full sales price of the unit was
includible in taxable income in the year of the sale but the expenses of
fulfilling the guarantee were not allowed until the taxable year in which
they were incurred. Under the new law for each unit sold, $24 can be deducted as a cost of the sale and set up in a reserve account.
Reducing restraints on economic growth
The fourth objective of our work, and the most interesting for our
consideration here, was the reduction of tax deterrents to the expansion of
investment in private business and the minimizing of tax considerations as
determinants of business decisions.
The expansion of investment is, as I have already pointed out, basic
to the economic policy of this Administration.

It is necessary for the

creation of more jobs, the production of better goods at lower prices, and
the broadening of markets. A number of the provisions in the new law are
directed to this objective, the most important by far being the new rules
governing depreciation.

- 10 I.

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.1' 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.
The 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
The new
Code
will
give taxpayers
much
greater also
latitude
in the
business
risk.
The
unrealistically
slow
write-off
aggravated
selection
of
methods
of
depreciation
and
allow
a
more
rapid
the problem of financing expansion.
write-off of the tax basis of the property.
Acceleration in the speed of the tax-free recovery of investment costs
•also-facilitate* the financing of new investment. Growing firms will recoup
their funds more rapidly, and thus be better able to finance their own
expansion. In other eases, the credit position of the business will be
strengthened by the increased availability of working capital or by the fact
that the tax allowances for capital recovery will correspond more closely
with the repayment schedule for business loans.

C
9

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.

- 11 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 Vrdegree 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 fo
tax purposes. In recent years over three-quarters of the outside
financing of industry has taken the form of bonded indebtedness.
This makes the economy more vulnerable in periods of business
Under the new Code each stockholder will be permitted to
unsettlement.
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.

12 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
deductibility~oT such expenditures, moreover, when tney 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 ^educt
such expenses currently or to capitalize them and write them o n
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 oi
8 years'for absorbing a loss. The additional carryback increases .*
the possibility of immediate relief through tax refunds wnen_ .
businesses Ipj^injLJnonM _and J L ^ d s ^ t M ^ ^ e l ^ ^ ^ ^ ^ It cuts down
substantially the tax disadvantages of businesses with uneven earnings, which
are apt to be the unusually risky enterprises that are of critical importance
to the development of the economy.

- 13 New ventures and the marketing of new products can be undertaken with

greater confidence because the Government, through the tax system, no

shares in the gains but also to a greater extent than ever before stan

ready to share in the losses of business enterprise. The costs and un-

certainties in putting out new products are well known to you all. Thi

provision of the new law provides more favorable tax treatment for ris
taken by business both large and small.
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, particularly because the taxpayer had to show 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. However, under the new Code the taxpayer, by
supplying information, can shift to the Government the burden of
proof as to reasonableness. Instead of having to show an immediate
and specific need for the retained earnings, the taxpayer will be
required to show that the retained earnings are necessary to meet
"reasonably anticipated" business requirements. An accumulation
of $60,000 can be made without threat of penalty; and the tax,
when imposed, will apply only to the portion of the retained
earnings found to be unreasonable.
By liberalizing the law and clarifying the taxpayer's position, these
changes will eliminate the disturbing influence which the penalty tax ha
had upon dividend and investment policies. The $60,000 specific credit i

of special importance to f small, new business, since it means that duri

the period in which $60,000 of earnings is being accumulated there is no
possibility of the penalty tax being imposed.

TREASURY

To:

yy^

fcx^r-

-£ fiZGZ**~*yt ^^-^ y

/ Nils A. Lennartson
Assistant to the Secretary
Room 3420

- Ill 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.
We look forward to an expansion of Markets and believe that these tax
revisions will make a real contribution to this end. Moreover, we anticipate
that the expansion will not be confined MmMta those markets that would be
directly stimulated by increases in consumer purchasing power. We expect
the expansion to occur also in the markets for heavy things — lathes,
generators, heavy steel and machinery — the demand for which depends on
the investment of savings and tee assumption of high risks by private
enterprise.
The Current Situation
This discussion of our tax program is in the nature of a progress
report. We have made a substantial advance both in reducing burdens through
tax cuts of unprecedented size and in improving wax the structure of our

tax law. . However,much remains, to be^ne. ^%^^^
y^-^ *** s<jk^^jykjiy TJU^X^MC £' '*r~i\ ^^^^y. y b /*Ay*TZL
U~"4LJI8 J- nave aireaay saia, further tax reductions though badly needed
0
depend largely on the budget situation. We hope by wise tax policies and

£ £-

other measures to create a climate in which the economy can grow. An
expanding national income would mean an expanding tax base, thus making it
possible to provide for the heavy costs of defense with a decreasing
proportion of a growing national income.
The current review of the Federal budget for the fiscal year 19$$, which
was presented on September 14, shows estimated expenditures of $64.0 billion.

-15 This isx$10.3 billion less £sem* the actual expenditures in the fiscal year
1953 and $3.6 billion less than in 1954- Some perspective for the magnitude
of these figures is obtained by the fact that the $10.5 billion savings

since 1953 exceeds total Federal expenditures in any of the years 1920 throug
/
1940.
However, the budget deficit for the fiscal year 1955 is now estimated at
^ /
$4.7 billion which is $1.8 billion higher than the estimate made in January
of this year. About two-thirds of this change was due to the fact that the
reductions in excise taxes were greater than those recommended or estimated
in the January Budget Message and most of the balance was due to the drop
in corporate profits.
As Secretary Humphrey said when the new budget estimates were released,
"We said a year ago that we were going to keep working to get both spending
and the deficit down. We did get them down. We are going to try to do it
again this year. We shall keep working continuously during the rest of
this fiscal year to better the estimates we are presenting today."

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Tuesday, September 28, 1954

H-595

The Treasury announced today that it had found
no dumping in the case of lighter flints imported
from certain companies in Germany.
The finding was based on the fact that there
had been no imports at a dumping price for over a
year and a quarter, that imports prior to that time
had been in small volume compared to American production and consumption, and that the Treasury had
not found that the case involved injury or likelihood of it -within the meaning of the Antidumping law.
The question may be reopened if there are any
future importations at a dumping price.

0O0

gupujuuui11 £i9 i^isT

y^-y^
The Treasury announcedAthat it had found no
dumping in the case of lighter flints imported
from certain companies in Germany.
The finding -was based on the fact that there
had been no imports at a dumping price for over a
year and a quarter, that imports prior to that time
had been in small volume compared to American production and consumption, and that the Treasury had
not found that the case involved injury or likelihood
of it within the meaning of the Antidumping law.
The question may be reopened if there are any
future importations at a dumping price.

$f&0<%^

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Tuesday, September 28, 1954

H-594

The Treasury today announced a 50 percent allotment
on subscriptions for the current offering of 1-5/8 percent Treasury Notes of Series B-1957*

However, subscrip-

tions for $50,000 or less will be allotted in full.

Sub-

scriptions for more than $50,000 will be allotted not less
than $50,000.
Reports received from the Federal Reserve Banks show
that subscriptions total about $8.2 billion.

Details by

Federal Reserve Districts as to subscriptions and allotments will be announced when final reports are received
from the Federal Reserve Banks.

oOo

IMMEDIATE RELEASE,
Tuesday, September 28 1 1954*

-0

the Treasury today announced a 50 pereent allotment
on subscriptions for the current offering of 1-5/$ P@P©ent Treasury totes of Series B-1957* However, subscriptions for 150,OCX) or less will be allotted in full. Subscriptions for more than $50,000 will be allotted not less
than 150,000.
Reports received from th© Federal E©s©rv@ Banks show
that subscriptions total about $8,2 billion. Details by
F@d«ral E@@@rv@ District® a® to subscriptions and allotments will be anammmmd nhmn final reports are received
from th© Federal Reserve Bank©.

@ @

TREASURY DEPARTMENT
WASHINGTON, D.C.

^>j^>

H~593
REL&ISE MORNING NEWSPAPERS,
Tuesday, September 28, 1951u
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 30 and to mature December 30, 195k, which were offered on
September 23* were opened at the Federal Reserve Banks on September 27 •
The details of this issue are as follows:
Total applied for - $2,lla,276,000
Total accepted
~ 1,501,773,000 (includes $l88j5W*,000 entered on
a noncompetitive basis and
accepted in full at the average
price shown below)
Average price
- 99©751/ Equivalent rate of discount approx.
0.981$ per annum
Range of accepted competitive bids:
High -» 99©760 Equivalent rate of discount approx, Oa9k9%
per annum
Low
- 99*7^9 Equivalent rate of discount approx. Q*(.
per annum
(lk 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
Accepted

Total
Applied for
16,333,000
1,613,036,000
29,711,000
33,20U,000
i5,U5k,ooo
26,083,000
200,882,000
31,702,000
10,211|.,000
31,733,000
37,288,000
95,636,000

$ 2,310.,276,000

1^,833,000
1,08U,671,000
ll*,711,000
27,62it,O0O
U4,59MOO
21,681,000
162,632,000
29,78ii,000
9,9lit>000
26,903>000
20,786;000
73.6hO,00O

$ 1,501,773,000

RELEASE iOEKING KEWSPAPERS,
Tuesday, September 28a 1954*

The Treasury Depastawiit announced last evening that the tenders for $1,500,000,000
or thereabout®, of 91-day Treasury bills to be dated Septanber 30 and to mature
December 30, 1954, which were ottered on September 23, ware opened at the Federal
Reserve Banks on September 27.
The details of this issue are as follows:
Total applied for - #2,141,276,000
total accepted
- 1,501,773,000 (iiieludes $188,544,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
Average price
- 99.751/ Equivalent rate of discount approx. 0.984$ per annum
Range of accepted competitive bids:
High - 99.760 Equivalent rate at discount approx. 0.949$ par annum
w
Low
- 99.749
»
*
«
*»
0.993$
(14 percent of the amount bid for at the 1mm price was accepted)
Federal Reserve total total
District
Boston
Hew Tork
Philadelphia
Cleveland
BlGtmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas city
Dallas
San Francisco

Applied for
$
16,333,000
1,613,036,000
29,711,000
33,204,000
15,454,000
26,083,000
200,882,000
31,702,000
10,214,000
31,733,000
37,288,000
95,636,000

total $2,141,276,000 $1,501,773,000

14,833,000
1,084,671,000
14,?U,0O0
27,624,000
14,594,000
21,681,000
162,632,000
29,784,000
9,914,000
26,903,000
20,786,000
73*640,000

"•.

- 2 competitive bids. Settlement for accepted tenders In accordance
v/ith the bids must be made or completed at the Federal Reserve Bank
on September 30, 1954,In cash or other immediately available funds
or In a like face amount of Treasury bills maturing September 30, 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.

RELEASE MORNING NEWSPAPERS,
Thursday, September 23. 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 September 30, 1954,
in the amount of $1,500,616,000, 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 30, 1954,
and will mature December 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 o'clock p.m., Eastern Standard time,
Monday, September 27, 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

j&c&dsxfcxx
immmmX

TREASURY DEPARTMENT
Washington
FOR y.ELEASS, HOREIMJ NEWSPAPERS,
Thursday, September 23, 1954

~ W~

- ' ~

The Treasury Department, by this public notice, invites tenders for
?31,500,000,000

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

in exchange for Treasury bills maturing September 30, 195k ? in the amount of
$1,500,616,000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated September 30, 1954 , and "will mature December 30, 1954 , when the face

amount will be payable without interest. They will be issued in bearer'form onl
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 D.m., Eastern Standard time, Monday, September 27, 19

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 companies anc1 from responsible and recognized
dealers in inv-stm-nt securities. Tenders from others must be accompanied by

- 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 will be advised of the acceptance or rejection thereo

±n cash or

other immediately available funds or in a like face amount of Treasury bills
maturing September 30, 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 hav.j any s;?x:ci?.l troitnent, ?,s such, under the Internal Revenue Code,
laws amendatory or supplementary thereto. The bills shall be subject to
estate, inheritance, gift or other excise taxes, whether Federal or State,

- 3 -

but shall be exempt from all taxation now or hereafter imposed on the principa

or interest thereof by any State, or any of the possessions of the United Stat
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 b
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 t

accrue until such bills shall be sold, redeemed or othervn.se 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, vhothcr 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. 418, xxxxxxxxxx^ 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
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
.Tuesday, September 21, 1954.

H-591

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 23 and to mature December 23, 1954, which were
oxfered on September 16, were opened at the Federal Reserve Banks on
September 20.
The details of this issue are as follows:
Total applied for - $2,240,629,000
Total accepted
- 1,500,201,000 (includes $278,636,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.751 Equivalent rate of discount approx.
0.9o6% per annum
Range of accepted competitive bids:
High
- 99.754 Equivalent rate of discount approx.
0.973$ per annum
Low
- 99.749 Equivalent rate of discount approx.
0.993$ per annum
(24 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
$
31,014,000
1,588,333,000
34,697,000
60,042,000
22,052,000
26,336,000
215,972,000
18,084,000
19,943,000
45,772,000
49,254,000
129,130,000
$2,240,629,000
0O0

Total
Accepted
23,003,000
975,353,000
18,697,000
51,778,000
17,040,000
23,010,000
184,532,000
15,334,000
15,875,000
32,867,000
47,134,000
$1,500,201,000
95,578,000
$

RELEASE MORNDfG MESISPAPERS,
Tnesday, September 21, 1951u

f l

rT~~^

The Treasury Bepartaent announced last evening that the tenders for $1,500,000,000
or thereabouts, ,df 91-day Treasury bills to be dated September 23 and to mature
December 23, 195k, which were offered on September 16, were opened at the Federal
Reserve Banks on September 20.
The details of this issue are as follows:
Total applied for - §2,21*0,629,000
Total accepted
- 1,500,201,030 (includes 1278,636,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
Average price
- 99.751 Bivalent rate at discount approx. 0.986£ per annua
Range of accepted competitive bids:
High - 99a7$k Equivalent rate of discount approx. 0.973$ per annua
Low
- 99.7ti9
*
«
»
«
H
0.993^
(2k percent of the amount bid for at the low priee was accepted)
Federal Reserve
District

Total
Applied for

Boston I 31*0U|,©0Q I 23,003,000
Hew York
1,586,333,000
Philadelphia
3^,697,000
Cleveland
60,01*2,000
Richmond
22,052,000
Atlanta
26,336,000
Chicago
215,972,000
St. Louis
l8,0o%,O00
Minneapolis
19,91*3,000
Kansas City
1*5,772,000
Dallas
k9,2$k,0QO
San Francisco
129,130,000
Total #2,2*10,629,000 H, 500,201,000

Total
Accepted
975,353,000
18,697,000
5l,7?S,000
17,0^0,000
23,010,000
18J|,532,O0O
l5,33li,O00
15,875,000
32,867,000
!i7,13k,OQ0
95,578,000

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Monday, September 20, 1954.

H-590

Secretary Humphrey announced today that on Thursday,
September 23, the Treasury will offer for cash subscription $4 billion of 1-5/8 percent Treasury Notes to
be dated October 4, 1954, and to mature May 15, 1957.
The books will be open for only one day, on September 23.
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. On all other subscriptions a payment of 10 percent
of the amount of notes subscribed for must be made, not
subject to withdrawal until after allotment. The new
notes may be paid for by credit in Treasury Tax and Loan
Accounts.
Commercial banks and other lenders are requested to
refrain from making unsecured loans or loans collateralized
in whole or in part by the notes 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 customers' subscriptions, and
that no customers have any beneficial interest in the
bank's own subscription, will also be required.
Any subscription addressed to a Federal Reserve
Bank or Branch or to the Treasury Department and placed
in the mail before midnight September 23 will be considered
as timely.

oOo

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wmtmmd mtmlftto mi to* *ato*»*Mag ^sah m mi 4mm fb\ lf*Ji» ** all
m*J*m* aamaaaipttoaa m ry*m& #JT W pavaaat oftorn^^m% at mtm
ail******* tm w*m mm iwia* at* wmmjem* to «nft*»*aa& mill *s%m* miato
fur sgr afafit ta faaaaaty *aa an*
toaka *»* ether left*«r? «*» »«Np§*t#i to am***** fta*
S#«f a* laaaa aaltotoaaltoa* im mml# •* la pt$i % %&»
l»r# to di«ir tot It mememst *# <?ftits mmejmiaiii to »»
±d* vhm m&imrtm&m
mm mMmm*
A aafttftaaataa % toa m^miM®®
hmki ttet m mah %®m a\mm laaa m$® «H1 to fa*aUa* m mmm aamaaalpti m
<rs %t mr mmmm
mi ito rn^tamm* A mmrtlti^tlm feat mm
Mmaiftaiai iatotaat in Ito mztmmm* m&mmtptt *•% m? ta?t mm
' mmtwmm hm® m& baaafiatolftstovastla «to hmtkH wm afe^artpttaa*
mUX m&m h® twalja**
to m taftaaml Wmmmm B®tsk mat Bmmah
mw to «to tmmmm
*^t%mmt mm ; l m* im th* :^ii hmfmm ^nUyxt,

%$ wm mm mmm.mm m tla^r*

e^mXEu*/^^ fr'flY

- 2 Government Service:
Appointed Deputy Administrator, Reconstruction Finance
Corporation, Dec. 10, 1953; appointed consulting
expert, Office of the Secretary of the Treasury,
same date.
*s
Appointed Administrator, R.F.C., April 26, 1954
Appointed Assistant to the Secretary of the Treasury,
July 1, 1954; appointed Executive Director,
Office of Defense Lending, and Administrator,
^ .federal Facilities Corporation, same date.
Nominated to be Assistant Secretary of the Treasury,
July 23, and confirmed July 28, 1954. Sworn in
as Assistant Secretary September 20, 1954

oOo

September 20, 1954.

LAURENCE BALLARD ROBBINS
Assistant Secretary of the Treasury

Born Pittsfield, Massachusetts, December 18, 1887
legreer?S Ial6' Sheffisld Sc^ntific School, 1908
Married, July 1,*1922; 3 children
Republican; Episcopalian
* * *

Busine s s Hi story:
Mining Engineer, Nevada, 1908 to 1910
Crane Brothers (paper manufacturers), Westfield, Massachusetts,
3
i^iu uo 1911
American Writing Paper Company, Holyoke, Massachusetts, western
n +. <' I pe P res entative, 1911 to 1915, in Chicago
^ i r e c f o r f l ^ i f ^ g g ^ ' C h i C a g 0 ' I l l i n ois, Treasurer and
The Northern Trust Company^ Chicago, Illinois, Jan. 1921 to
December 31, 1952. Vice President from Jan. 1926m charge of commercial banking department for several
years prior to retirement
Military:
Major Field Artillery, 42nd (Rainbow) Division, A.E.F., 1917 to
1919
Organized Reserve, 1923 to 1936; transferred to Inactive Reserve
with rank of Colonel
Other Activities:
Chicago Clearing House Association, President, 1Q43 to 1945
Association of Reserve City Bankers, Vice President, 1934 to 1QV5
JD
Bankers Club of Chicago, President, 1940 to 194l
Chicago Association of Commerce, Treasurer, 193^ to 19*54
Community Fund of Chicago, Treasurer, 1937 to 1942
Chicago Council Boy Scouts of America, Chairman, Executive Board
1925 to 1930; President, 1943 to 1946
*oaia,
Chicago Club; Commercial Club (Treasurer, 1951 to 1953)- The Art-io
(former governor); Old Elm (board of governors); Sho^eacr-s
(board of governors), (President, 1939 to 1944 )• Vale nuil
of Chicago (President, 1924 to 1925)
Church of the Holy Spirit, Lake Forest, Senior Warden
Episcopal Diocese of Chicago, Trustee, Endowment Fund

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Monday, September 20, 1954.

H-589

Secretary Humphrey today administered the
oath of office to Laurence B. Robbins as an
Assistant Secretary of the Treasury.
Having been appointed by President Eisenhower
and confirmed by the Senate on July 29, 1954,
Mr. Robbins was sworn in before a grou|D of Government
officials and friends, in the office of the Secretary.
Mr. Robbins, a native of Massachusetts, served
for 32 years with the Northern Trust Co. of Chicago,
27 of them as vice president, before being called
into the Government service December 10, 1953^ as
Deputy Administrator of the Reconstruction Finance
Corporation. He became Administrator of the R.F.C.
April 26, 1954. He served simultaneously as
Special Assistant to the Secretary of the Treasury.
When the R.F.C. was placed under the direction
of the Secretary of the Treasury on July 1, 195^
Mr. Robbins was designated by the Secretary to be
Executive Director of the Office of Defense Lending
.and Administrator of the Federal Facilities
Corporation. The Office of Defense Lending was
established in the Treasury Department to handle
Defense Production and Civil Defense loans. The
Federal Facilities Corporation was a new corporation
established to take over the synthetic rubber and
tin operations previously administered by the R.F.C.
As Assistant Secretary, Mr. Robbins will
continue to supervise these activities as well as
the further liquidation of the R.F.C.

Secretary Humphrey today administered the oath of office to
Laurence B. Robbins as an Assistant Secretary of the Treasury.

Having been appointed by President Eisenhower and confirmed by the
Senate on July 29, 1954, Mr. Robbins was sworn in before a group of
Government officials and friends, in the office of the Secretary.

Mr. Robbins, a native of Massachusetts, served for 32 years with
the Northern Trust Co. of Chicago, 27 of them as vice president, before
being called into the Government service December 10, 1953, as Deputy
Administrator of the Reconstruction Finance Corporation. He became
Administrator of the R.F.C. April 26, 1954. He served simultaneously as
Special Assistant to the Secretary of the Treasury.

When the R.F.C. was placed under the direction of the Secretary of
the Treasury on July 1, 1954 Mr. Robbins was designated by the Secretary
to be Executive Director of the Office of Defense Lending and Administrator
of the Federal Facilities Corporation. The Office of Defense Lending was
established in the Treasury Department to handle Defense Production and
Civil Defense loans. The Federal Facilities Corporation was a new corpora-

tion established to take over the synthetic rubber and tin operations previo
administered by the R.F.C.
As Assistant Secretary, Mr. Robbins will continue to supervise these
activities as well as the further liquidation of the R.F.C.

LAURENCE BALLARD ROBBINS
Assistant Secretary of the Treasury

Born Pittsfield, Massachusetts, December 18, 1887
Graduated from Yale, Sheffield Scientific School, 1908
degree Ph.B.
Married, July 1, 1922; 3 children
Republican; Episcopalian

Business History:
Mining Engineer, Nevada, 1908 to 1910
Crane Brothers (paper manufacturers), Westfield, Massachusetts,
1910 to 1911
American Writing Paper Company, Holyoke, Massachusetts, western
sales representative, 1911 to 191$, in Chicago
Bestwall Manufacturing Company, Chicago, Illinois, Treasurer and
Director, 1915 to 1921
^,,-~
The Northern Trust Company, Chicago, Illinois^ 1921 to December 31*
1952o Vice President fro$jp^26j in charge of commercial banking department for several years prior to retirement
Military;
Major, Field Artillery, 42nd (Rainbow) Division, A.E.F., 1917 to
1919
Organized Reserve, 1923 to 1936; transferred to Inactive Reserve
with rank of Colonel
Other Activities;
Chicago Clearing House Association, President, 1943 to 194b
Association of Reserve City Bankers, Vice President, 1934 to 1935
Bankers Club of Chicago, President, 1940 to 1941
Chicago Association of Commerce, Treasurer, 1932 to 1934
Community Fund of Chicago, Treasurer, 1937 to 1942
Chicago Council Boy Scouts of America, Chairman, Executive Board,
1925 to 1930; President, 1943 to 1946
Chicago Club; Commercial Club (Treasurer, 1951 to 1953); The Attic
(former governor); Old Elm (board of governors); Shoreacres
(board of governors), (President, 1939 to 1944); Yale Club
of Chicago (President, 1924 to 1925)
Church of the Holy Spirit, Lake Forest, Senior Warden
Episcopal Diocese of Chicago, Trustee, Endowment Fund

•Dwuuinbug Jlj H,ll/2»—^

Government Service:
Appointed Deputy Administrator, Reconstruction Finance
Corporation, Dec. 10, 1953; appointed consulting
expert, Office of the Secretary of the Treasury,
same date.
Appointed Administrator, R.F.C, April 26, 1954.
Appointed Assistant to the Secretary of the Treasury,
July 1, 1954; appointed Executive Director,
Office of Defense Lending, and Administrator,
Federal Facilities Corporation, same date.
Nominated to be Assistant Secretary of the Treasury,
July 23, and confirmed July 28, 195^. Sworn in
as Assistant Secretary September 20, 1954.

September 20, 1954.

IMMEDIATE RELEASE,
Thursday, September 16, 1954.

,0 9

TREASURY DEPARTMENT
Washington

H-588

The Bureau of Customs announced today preliminary figures showing the imports for
consumption of the commodities listed beloY; within quota limitations from the beginning
of the quota periods to September h, 195h, inclusive, as follows:

Commodity
Y/hole milk, fresh or sour

Period and Quantity
Calendar Year

Orea®- Calendar Year
Butter

White or Irish potatoes:
Certified Seed
Other

Gallon

31,282

1,500,000 Gallon 65l
July 16, 1954Oct. 31, 1954

Fish, fresh or frozen, filleted,
etc., cod, haddock, hake, pollock, cusk, and rosefish

3,000,000

j Unit
Imports as oj
: of
Sept. 4, 19!
:Quantity

Calendar Year

12 months from
Sept. 15, 1953

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

5,000,000 Pound 90,982

33,950,386 Pound Quota Filled

150,000,000 Pound
60,000,000 Pound
200,000 Head

100,578,047
Quota Filled
3,780

Cattle, 700 Lbs. or more each July 1, 1954(other than dairy cows)
Sept. 30, 1954

120,000 Head

4,590

Walnuts Calendar Year

5,000,000 Pound

Quota Filled

12 months from
Oct. 1, 1953

7,000,000 Pound

6,994,334

June 30, 1955

1,500,000 Pound

1,066,948

12 months from
July 1, 1954

1,709,000

Almonds, shelled, blanched,
roasted, or otherwise prepared
or preserved
Alsike clover seed July 1, 1954•* Peanuts, whether shelled, not
shelled, blanched, salted, prepared, or preserved (including
roasted peanuts, but not ineluding peanut butter
Peanut Oil

Pound

41,325

months from
July 1, 1954

80,000,000 Pound

*# Oats, hulled and unhulled and un- Dec. 23, 1953hulled ground
Sept. 30, 1954 2,500,000 Bushel
Rve, rye flour and rye meal July 1, 1954J
'
June 30, 1955

186,000,000 Pound

2,463,634
Quota Filled

(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 Sept. 1)4, 1954.
** Imoorts through Sept. l4, 1954, from countries other than Canada^

IMMEDIATE RELEASE,
Thursday, September 16, 1954.

TREASURY DEPARTMENT
Washington

H-588

The Bureau of Customs announced today preliminary figures showing the ^ p o ^ . ^ r
consumption of the commodities listed below within quota limitations from the beginning
of the quota periods to September 4, 1954, inclusive, as follows:

Commodity
Whole milk, fresh or sour

Period and Quantity
Calendar Year

3,000,000

T Unit
: of
:Quantity
Gallon

Imports as of
Sept. 4, 1954
31,282

Cream • • Calendar Year

1,500,000 Gallon

651

:% Butter July 1&, 1954-

5,000,000 Pound

90,982

Oct. 31, 1954
?ish, fresh or frozen, filleted,
etc., cod, haddock, hake, pollock, cusk, and rosefish

Calendar Year

"White 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 Pound
60,000,000 Pound
200,000 Head

Quota Filled^1)

100,578,047
Quota Filled
3,780

Cattle, 700 Lbs. or more each July 1, 1954(other than dairy cows)
Sept. 30, 1954

120,000 Head

4,590

Walnuts Calendar Year

5,000,000 Pound

Quota Filled

12 months from
Oct. 1, 1953

7,000,000 Pound

6,994,334

June 30, 1955

1,500,000 Pound

1,066,948

12 months from
July 1, 1954

1,709,000

Pound

80,000,000

Pound

i\lmonds, shelled, blanched,
roasted, or otherwise prepared
or preserved.
Alsike clover seed July 1, 1954-

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

41,325

Peanut Oil 12 months from
July 1, 1954

** Oats, hulled and unhulled and un- Dec. 23, 1953hulled ground
Sept. 30, 1954 2,500,000
Rye* rye flour and rye meal July 1, 1954June 30, 1955

Bushel

186,000,000 Pound

2,463,634
Quota Filled

(l) Imports for consumption at the quota rate are limited to 25,452,791 pounds during
the first nine months of the calendar year,
#
Imports through Sept. 14, 1954.
** Imports through Sept. 14, 1954, from countries other than Canada.

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Thursday, September 16, 1954.

H-587

The Bureau of Customs announced today preliminary figures showing the
imports lor consumption of commodities on which quotas were prescribed by
the Philippine Trade Act of 1946, from January 1," 1954, to September lU, 1954,
inclusive, as follows:
>
s
<+, - ^ u ,

Unit
Products of the
Philippines

: Established Quota
:
Quantity

of
Quantity

J Imports as of
: September 4, 1954

Buttons 850,000

Gross

Cigars 200,000,000

Number

Coconut Oil 443,000,000

Pound

86,026,365

Cordage 6,000,000

Pound

1,589,266

Rice 1,040,000

Pound

(Refined.....
Sugars
(Unrefined
Tobacco 6,500,000

1,904,000,000

520,687
1,918,762

3,519,784
Pound
1,625,850,756
Pound

786,046

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Thursday, September 16, 1954

H-587

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 September 14, 1954,
inclusive, as follows:

Products of the
Philippines

Buttons

Established Quota
Quantity

850,000

: Unit
: of
:Quantity

Gross

Imports as of
September 4, 1954

520,687

Cigars 200,000,000

Number

1,918,762

Coconut Oil 448,000,000

Pound

86,026,365

Cordage 6,000,000

Pound

1,589,266

Rice 1,040,000

Pound

(Refined...........
Sugars
(Unrefined
Tobacco 6,500,000

3,519,784
1,904,000,000

Pound

1,625,850,756
Pound

786,046

TREASURY DEPARTMENT
Washington

MEDIATE RELEASE,
Thursday, September 16, 1954.

H-586
The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour authorized to be entered, or withdrawn
n-om 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, 195k
as follows g

Wheat
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

Established s
Imports
Quota
sKay 29, 1954? to
: Sept.
s
Sept. 14.
14. 1954
1954
(Bushels)
"
(Bushels)
795,000

100
100
100

100
2,000
100
1,000
100

1,000
100
100
100
100

795,000

Uheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
: Established s
Imports
i
Quota
t May 29, 1954,
:
•?• to, Sept. I4»l?glf
(Pounds)'
(Pounds)
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000

3,815,000

5,ooo
1,000
1,000
1,000
14,000
2,000
' 12,000
1,000

r,ooo
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

2,000

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Thursday, September 16, 1954.

H-586

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 follows?
•
*

s
:
:
;

Country
of
Origin

*
•
•
*- Established
J
Quota
*
* (Bushels)

795,000
Canada
China
Hungary
—
Hong'Kong
Japan
United Kingdom
100
Australia
Germany
100
100
Syria
New Zealand
Chile
Netherlands
100
2,000
Argentina
100
Italy
—
Cuba^
1,000
France
Greece
100
Mexico
—
Panama
—
Uruguay
—
Poland and Danzig
Sweden
Yugoslavia
—
Norway
Canary Islands
Rumania
1,000
Guatemala
100
Brazil
100
Union of Soviet
Socialist Republ:ics
100
Belgium
100

Wheat

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

*
9
:
Established t
Imports
Imports
Quota
s May 29 <> 1954 $
slaSy d?, 19545 to s
% toSept.lU.19f
s Sept. 14." 1954 :
(Pounds)
(Pounds)
(Bushels)

795,000
—
_
—
-

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

r,ooo
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
-

3,815,000
—

70
—
—
—
_
—

2,000
_
_
_
_
_
_
—
_
_
_
_
__
_

COTTON WASTES
(In pounds)
COTTON CARD STRIPS made-from cotton having -a staple of less than 1-3/16 inches in lengthy 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
m staple- length in the case of the following countriess United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italys
•
Country of Origin
•

:
g

United Kingdom . . . . .
Canada . . . . . . . . .
France . . . . . . .
..
British India . . . . . .
Netherlands . . . . . . .
Switzerland . . . . . . .
Belgium . . . . . . . . .
Japan . . . . . . . . . .
China . . . . . . . . . .
Egypt . 0 . . . . . , . .
Cuba . . . .
. . a . . .
Germany . . . . . . . . .
Italy , . o . . . . . . .

E s t a b l i s h e d : T o t a l Imports
Established s
Imports
~T7
TOTAL QUOTA
: Sept. 20, 1953, to t 33-1/3% of : Sept. 20, 19*3,
g Total
' S e D t " 14 > 1 9 3 4
Q^ota i to Sept. 14, 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
5,482,509

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

902,606
239,690
54,48?
16,668
1,099
-

1,441,152

812,239

75 gQ7
$
__
22,747
14 796
12*853
„

6,544
23,940
73088

—
25s443
7..088

1,252,122

1,599,886

16,668
1,099
.
~
I
«,
23,940
7 088
861,034

TREASURY DEPARTMENT
Washington

ex:)

IMMEDIATE RELEASE,
Thursday, September l6, 1954.

H-585

Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the President1^ Proclamation of September fr, 1939, aa amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches otfaei- than rough or harsh under 3/4"
Imports Sept. 20t 1953/ to September 14. 1954j inchis-iva
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

50,352
33,968
6,697,532
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 .

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.
^/ 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. 19 53, to Sept. 4. 1954
Imports Feb. I. 1954,, to Sept. 14, 1954
Established Quota (Global) Imports Established Quota (Global) Imports
70,000,000 12,428,645 45,656,420 33,402,468

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Thursday, September 16, 1954.

H-585

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, September 1A. 1Q5A, ^ n h i m ™
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

Imports

50,352
33,968
-

6,697,532
618,723
431,975
—
—
mm

Country of Origin •
>
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

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
jj/ Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less than 3/4"
Imports Sept. 20, 195?. to Sept. 4. 1954

Cotton 1-1/8" or more, but less than 1-11/L6*
Imports Feb. 1. 1954,, to Sept. 14, 1954

Established Quota (Global) Imports

Established Quota (Global)

70,000,000 12,428,645

45,656,420

Imports
33,402,468

COTTON WASTES
(In pounds)

COTTON CARD STRIPS made, from cotton having-a staple of less .than 1-3/16 inches in length, COMBE
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, France, Netherlands,
Switzerland, Belgium, Germany, and Italys
Established
TOTAL QUOTA

Country of Origin
United Kingdom 0 0 * .
Canada . . , . „ .
France . . . . . .
British India . . . o o
Netherlands . . . . . o
Switzerland . « o o o 0
« •
Belgium . . o o o
w apan. . . . e . . . . o
China . o e o .
Egypt « o o o o
o o o o o
Cuba o e . o
.
O 0 0
Germany
0 O O 0 0
Italy o o o .

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
219263
5,482,509

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

Total Imports
Sept. 20, 1953, to
Sept. 14, 1954
902,606
239,690

Established s
Imports
33-1/3% of g Sept. 20, 1953,
Total Quota s to Sept. 14, 1954

1,441,152

812,239

75,807
54,487
16,668
1,099

6,544
23,940
7,088
1,252,122

22,747
14,796
12,853

16,668
1,099

25,443
7»088

23,940
7,088

1,599,886

861,034

- 2competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on. September 23, 1954, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing September 23, 1951!-.
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) (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.

TREASURY DEPARTMENT
WASHINGTON, D.C

RELEASE MORNING NEWSPAPERS,
Thursday, September 16. 195^.

H-DOH

The Treasury Department, by this public notice, invites tenders
for $L,500,000,000, or thereabouts, of 91-day Treasury bills, for
cash and in exchange for Treasury bills maturing September 23, 195^
in the amount of $L,500,973,000, 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 23, ibm,
and will mature December 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 Saying time,
Monday, September 20, 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
splcial envelopes which will be supplied by Federal Reserve Banks or
.Branches on application therefor.
Others than banking institutions will not be permitted to submit
f o n H ^ n x e D t f o r their own account. Tenders will be received
t^tZl deposit from incorporated banks and trust companies and from
without deposit *^om incoip
Investment securities. Tenders
6
TrllTthelt mSs/briccompanied by payment of 2 percent of the face
f«™n? nf Treasury bills applied for, unless the tenders are
a ^ c S a n L r b r a ^ e x p r e s s guaranty of payment by an incorporated bank
or trust company.
.,ofo1ir n f t p r the closing hour, tenders will be opened at the
^ ^ r a r R e s e r v e ^ n k f and Branchef, following which public announceFederal Reserve car^s
Department of the amount and price
ment
"if'accepted bids
Slw^Sto-lttlng tenders will be advised of
range of accepted D""»- * tUeveof
The Secretary of the Treasury
the acceptance or rejection thereof
The
^ ^
^ ^
&y
expressly reserves th^right to
P
^
eo% flhall b e
in whole or in p a r t e d £ »
^-competitive tenders for
final. Subject M in«« ' t a t e d D r l c e from any one bidder will be
£ S 2 S Z f"l afthfaverage S e e (in thrS. decimals) of accepted

X2do£s£3t

TREASURY DEPARTMENT
Ifashington

y-sT

FOR RELEASE, MORNING NEWSPAPERS,
la^sday,^ September l6, 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 September 23, 1954 , in the amount of

HM
$1,500,973,000

, 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 23, 1954 , and'-will mature December 23, 1954

vdien the face

amount will be payable without interest. They will be issued in bearer fom only,
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 p.m., Eastern/sfcSHtasi time, Monday, September 20, 195*1- .
Tenders mil 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 cor»r>anies anr1 fron rc-snonsible 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 incorporat
bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following Yihich 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-cappetitive 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 September 23, 195k in cash or
_ — ^ T —
other immediately available funds or in a like face amount of Treasury bills
maturing September 23, 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 fron the sale or other disposition of Treasury bills shall
not have an- social tro-tment, as srch,

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,

- 3-

but snail be exempt from all taxation now or hereafter imposed on the principa

or interest thereof by any State, or any of the possessions of the United Stat
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 b
considered to be interest. Under Sections l\2 and 117 (a) (1) of the Internal

Revenue Code, as amended by Section 11$ of the Revenue Act of 191+1, the amoun

of discount at which 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 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 oricpnal 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, §SCX3H£XBEfc3&, 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
WASHINGTON, D.C

IMMEDIATE RELEASE,
Wednesday, September 15, 195^.

H-583

During the month of August 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
$17,15^,500.

0O0

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
WetM&dejt

^imwlaw rt'ltyTV

it-5 c'v

During the month of July ±95k9 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 y's/ /***&,*'OQ%

oOo

September ?, I9$k ,

mwrnimm fo* MR* BAiam?
the foUoai&g tSwamcrfd.aBi i^r® jg^te in direct
securities of tim Cto^nrnMBi for Treasury investments and otier
aeccamts during thm wmat&i ®t -tospist, 19$k*
®&m

|I7,303,$<X).00

Chief, Investments Bmneh
l&vlaixm of S e p s i s & Issustaents

-n -

Ue also look forward to further tax reduction since we
appreciate fully the severity of our present tax burden and
oeiieve that its reduction is essential to the continued prosperity
01 zne country. However, we also believe that additional tax cuts
must waic upon further reductions in Federal expenditures.
u.nerwise, the Government's deficits would start mounting and we
wouie^once again move up the.all-to-familiar inflationary spiral
znaz m the past 15 years cut the value of the United States
dollar m half.
VI. Conclus.lon
^he fact that our two countries have been able to maintain
high levels of employment and production and relatively stable
dollars during the current transition from a war to peace economy
testifies to the soundness of the domestic policies we have both
been pursuing. More important, however, is that we are building
a solid foundation for future dynamic growth through sound
Government financial practices and the encouragement of individual initiative and enterprise.
The maintenance of sound and buoyant domestic economies
provides the groundwork for continuing improvement in the common
efforts of our two countries, permits the more ready solution of
particular problems that arise, and enables each country to make
its best contribution to those activities which are in our common
interest, whether thoy concern trade between individuals or
cooperation between Governments.

oOo

- 10 -

...The new law also provides a degree of relief from double
taxation of corporate dividends. Such double taxation ,is, a :major
injustice,; a penalty on equity financing, and a serious obstacle
to business.financing. Under the new law each stockholder will.
be allowed to exclude from his gross income up to $50 of dividends
and apply a credit against tax equal to k percent of the
••" \
dividends in excess of the exclusion.
•-,
'y'!..,'
,,'*:.;''•" To those of you who are accustomed to the 20 percent cr
allowed under the Canadian law, this will seem a very modest . '
measure of relief. It is, however, 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 m 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 more swhly among all our citizens.
•

... The new law adds an additional year to the alloitfable. carrybap k o f net operating losses. This provides a two-year carry- ..
back.and a five-year carryforward, thus allowing such losses to' •
be averaged over an eight-year period. This is somewhat m o r e " "•
generous than, the seven-year averaging period used under-.the
Canadian law.
'•/ "The'new' law:.,includes, a. number' of:"other measures which vi
eliminate sub.staritial' .impediments, ,to the .growth ,of' 'the economy. ' *
Among these are a revision" in, the' :treatmqht of',; research- and
experimental costs,;; and,.a: substantiaJ: ireca^tln^'ot, /the penalty"
tax on undistributed. earnij;igs\.whi:ch. weVuse'.tp forestall, avoidance
of the surtax' fates" oh individual's."'
•-•--,., _ I do not wish tp, give yqu .the. impression ,that the removal
of •.impediments to economic, progress; was .the'exclusive goal of
the general, tax revision;bill'...;:Indeed,:".pver. half",the loss of "'
revenue'which the new. law. involves is for.the.direct benefit of
individual'taxpayers. . 'Millions:of persons in unusual hardship'
situations;.will, find that the new legislation brings them a
substantial, measure of relief. .Moreoyer,, ."the new law includes' "'
more than 50 loophole-closing provisions; and, of. course, one of.".
the main.purposes of rewriting the Internal Revenue Code was the
clarification and simplification"of the law.
We are aware that our job., of tax revision is. not complete.
Certain.major areas were deliberately not covered in this
revision but were reserved for .future consideration. In any case,
in a growing and changing economy, '"tax revision is necessarily a"'
continuing task.

-9

g/y"

r^rh^ff™ r e s u l t °£ ^ h l s Policy?- we have put into effect a tax
reduction program totalling $7,4 billion. This is the largest
r. • t * ^fdi:ct:Lon i n a n y single year in the history of the
United States. The total includes a $3 billion reduction in
individual income tax rates effective January 1, 1954, and the
termination on the same date of the- highly inequitable excess
E o
l ^ a X i a w e £ a c t e d i^ 1950. The yield of our excise system
S L n ? \ f e y about $1 billion as a result of legislation which took
effect April 1, 1954. The remaining $1.4 billion is accounted for
&y the tax reducing provisions of the recently enacted General
Tax Revision Bill.
About two-thirds of the total reduction under this program
goes to individuals. Most of the remaining one-third is accounted
i or by measures designed to reduce or remove obstacles to economic
expansion. As the President has said, their enactment will "help
our people produce better goods at cheaper prices" and "help to
create more jobs." The most important of these measures is a new
and more realistic treatment of depreciation.
Unlike the Canadian regulations which permit the use of the
declining-balance formula for depreciation deductions our Federal
Government had been operating under a set of administrative rules'
which tended in practice to restrict most taxpayers to the use of
the so-called straight-line method. This formula spreads the
cost evenly over the asset's life. It is simple to use, but the
deductions which it allows often fail to match true depreciation.
Their failure to keep pace with the relatively rapid loss of value
during the early years of the asset's life is discouraging to
plant modernization and economic progress, particularly when the
investment involves a considerable business risk. The unrealistically slow write-off also aggravates the problem of
financing expansion.
The depreciation provisions of our new law will give taxpayers
much greater latitude in the choice of methods of depreciation and
permit a far more rapid write-off of the tax basis of their
property. The taxpayer will be permitted specifically 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.
'
* •'
I believe that these new depreciation rules, which are
strongly Influenced by Canadian precedent, have reduced a serious
obstacle to new investment in the United States.

- 8 03) Debt' Management
Effective public debt management and a flexible monetary
policy are also indispensable ingredients of the sound money policy
to which this Administration is committed.
Our debt management operations have been designed to add
stability, to the economy. This has involved working toward a
better- balanced maturity structure in the debt itself, which now
approximates $275 billion, and encouraging a wider distribution
of the debt among private investors. Me are making slow but sure
progress in reconstructing .the huge public debt which under past
Administrations had been managed by inflationary methods.
Primary responsibility for United States credit and monetary
policy rests with the Federal Reserve System. Under this
Administration the Federal Reserve has been free to pursue a
flexible policy designed to promote stability and economic growth.
Moreover, the Treasury has planned its financing operations so as
to5 complement, and not nullify, action taken by the Federal Reserve
System to keep the supply of money and credit in line with the
needs of the country. During the current transition from higher
to lower defense spending, when the Federal Reserve has been
following a policy of active credit easing, the Treasury has
purposely done its financing so as not to reduce the supply of
long-term money available for private investment or for use by
State and local governments for major projects which give employment. The effectiveness of these combined efforts is evidenced
by the huge volume of new corporate and municipal issues which
have been coming out this year and in the increasing availability
of mortgage credit. The record construction activity encouraged
by this ample credit has also been opportune in strengthening the
economy during a period of adjustment.
(c) Tax Policies
The maintenance of economic stability required that the cuts
in Government spending.be matched by similar reductions in taxes
even before budgetary balance had been achieved. As Secretary
Humphrey stated in his testimony before the Senate Committee on
Finance on April 7, 1954,
"...big reductions, cannot be made quickly
without seriously dislocating the economy.
"As we cut government spending, we must return
to the people in tax cuts — as we are now doing —
the billions of dollars of government money saved,
so that it can then be put to making new jobs for
the people who previously received their income from
government spending."

-7-

The considerable load carried by the excises in the
umactian system helps to. explain the somewhat lower level of
corporate and individual income tax rates in that country. It
may also help to explain why Canada was able to avoid the
imposition of that highly objectionable form of taxation, the
excess profits tax, at the time.of the Korean crisis.
. The reliance in Canada upon indirect taxation for a
relatively large part of total revenues makes it possible to
moderate taxes on income, thus minimizing the inequities and
repressive economic effects of these taxes, which become very
troublesome when the rates are high. It is likely, therefore,
that the Canadian tax system may have somewhat better balance
than our own and that this may have been a factor in the
extraordinarily rapid growth of the Canadian economy during recent
years.
V
* Recent.Fiscal Policies in the United States
; I think it can be argued that for some years the United States
has lagged behind. Canada in matters of fiscal policy. I believe,
however, that a material change has occurred since January 1, 1953.
I would like to discuss briefly the budgetary and debt policies of
the present Administration, and at somewhat greater length the
recent tax changes with which I have been particularly concerned.
(a) Budget Policies
If we.are to have sound prosperity and steady economic growth,
we,must have a currency whose purchasing power can be counted
upon not only In the weeks and months but in the years ahead.
That is why we think it so Important that the Federal budget be
brought and kept under control.
The 1954 budget projected by the previous Administration
called for outlays, approximating $78 billion. As a result of a
careful, methodical, and continuous pruning, these spending plans
were cut back by the present Administration so that we actually
spent during the fiscal year 1954, $67.6 billion. This is
$6.7 billion less than the amount spent in the previous, fiscal
year and represents a reduction of more than $10 billion in the
spending program which.we had inherited.
This job was not an easy one because it had to be carried
out in the face, of an obvious need for large defense expenditures.
Nevertheless, the results obtained are gratifying. We wound up
the fiscal year 1954 with a budget deficit of.$3 billion instead
of $10 billion as expected by the. preceding Administration,and
with the cash budget nearly in balance.

-6 The tax system of the central government in Canada., is
similar in many respects to that of the Federal Government in the
United States. Indeed, some of the major Canadian taxes have been
patterned after equivalent levies in the United States. There are,
however, some very significant differences.
The Federal Government of the' United States relies far more
heavily upon so-called direct taxes. In the current year, 77
percent of the estimated net budget receipts will come from the
taxes on individual and corporate incomes. In Canada, such
taxes will account for.56 percent of the total.
On the other hand, indirect taxes play a far more important
role in Canada. During the current fiscal year Canada expects
to obtain about 35 percent of its revenues from these sources as
compared with 17 percent in the United States. This reflects in
large part the important role in the Canadian system played by
the general -manufacturers' sales tax which has no counterpart
in the finances of our Federal Government.
The proper balance between the different major sources of
revenue is one of the basic issues in any tax system. The marked
difference in the role of the excises in the tax system of the
United States and Canada has long been a matter of great interest
to experts in this field.
Many persons, including myself, have considered the individual
income tax to be the best single form of tax because it is direct
in its impact and because the rates and the definition of income
can.be adjusted to whatever may be the prevailing concepts of
ability to pay. Indeed, if only modest revenue were required,
taxes on individual incomes might be used as virtually the sole
source, but with budgets of the size of those now existing in
Canada and the United States, a dominant reliance on this form of
taxation would likely lead to its breakdown.
The corporate income tax may also be pushed to its breaking
point. Corporate profits when distributed as dividends are the
necessary reward to the suppliers of equity capital upon which
our whole industrial system has been built. To the extent that
corporate profits are not distributed,as dividends they constitute
additional capital for expansion by existing successful companies.
Thus, whether distributed or retained, reasonable legitimate
profits are part of the foundation of our economic system. The
critical point in corporate taxation cannot be predicted with
any high degree of accuracy. It may well be that a tax rate of
52 percent on corporate incomes, which we now have in the United
States, is somewhat above the margin tolerable over the long
p>ull.

- 5 f U T*w *™ C a n a d a a ? d the United States the prospects for
on
mC S
Wth
a n d e v e n hX her l e v e 1
ha^ nL! T K f?
^
%
^ of prosperity, t>3
e
be ter
There are great
b u I L ? ^ %nS ?* $
;
opportunities for-hew
Dusmess, for the development of natural resources, for the
,£? r 2 ?£ n 0 f n e w P r o d u °ts and new techniques. The extent to
wnich these opportunities will be realized depends primarily
upon the vigor of free private enterprise in both countries.
The role of the government is, nevertheless, Important.
In both Canada and the United States, depression, war, and defense
emergencies have greatly expanded the scope of governmental
activities. Our governments are taking in taxes and spending
amounts close to one fourth of our respective national incomes.
J>ound liscal policies are, therefore, of critical importance
in developing a climate which will give the greatest possible
scope to individual initiative.
In recent years, both governments have been concerned
with the need to restrain inflationary pressures and prevent
disrupting price rises. At the same time real concern has existed
over the severe tax burdens necessary to finance current levels
of government spending, and there has been an appreciation of the
fact that, because taxes are necessarily severe, it is essential
that they be imposed in such a manner as to minimize their
adverse effects on economic growth and incentives.
IV. Fiscal Policies in Canada
I have studied the Canadian budget and tax policies of
recent years with great interest and considerable admiration.
During World War II Canada was more successful than the United
States in keeping down the size of its deficits. During the
period of the. war the Canadian government financed- 57 percent
of its total expenditures by taxation while, in the same general.
period, in the United States taxes accounted for 45 percent of
total expenditures.
The Canadian government not only relied less heavily upon
borrowing but also the structure of its debt at the end of the
war financing period was such as to foster stability in its
economy since it had only one-eighth of Its debt maturing within
one year. In the postwar years thi,s favorable structure has been
maintained. In contrast, at the end of 1946, the United States
had about one-fourth of its debt maturing within a year's time,
and we have only recently begun to make some headway against '{
this problem.
- Since World War II the Canadian Government has managed not
only to balance Its budget but also to have surpluses which it
has
been
able
to
apply
topublic
debt
reduction.
Since
1946
the
central
acreased
debt
United
government
result,
reduction,
States,
by
instead
6
has
percent
during
reduced
but
ofit
since
our
these
was
its
debt
soon
1946.
postwar
offset
debt
outstanding
years,
being
by rising
there
reduced,
by 10was
expenditures.
percent.
it
some
hastemporary
inIn As
the

- 4II.

Cooperative Economic Effort

I need not dwell on the many examples of Intergovernmental..
economic cooperation,' such as the St. Lawrence Seaway project, ..,-_r
the Joint United States-Canadian Committee on Trade and Economic •
Affairs.,". the development of critical raw materials, research and j
development programs in atomic energy and other fields, as well ;
as our concerted interest in promoting peacetime uses of atomic •energy^.
., •
However, I. would like to note in passing the manifestation
of this cooperative spirit in the field of taxation which is now
my principal concern In the Treasury Department. Since 1936 the;
United States and Canada have had an agreement for the avoidance
of double taxation.and the prevention of evasion of income taxes.
As commercial, financial and cultural relations between citizens
of the'two countries have increased, this agreement has been
revised and expanded, and in 1944 it was supplemented by a similar
agreement with respect to estate taxes and succession duties.
Pursuant to these agreements, the taxing authorities of the
two governments work closely together in solving general tax
problems as well as individual cases which transcend the border ;:
between the countries. As might be expected, taxpayers of the
two countries often take the initiative in suggesting matters
for inclusion in these tax treaties. In the past year we have
been urged to consider the allowance of deductions by the
respective governments for contributions made by citizens of one
country to. charitable organizations in the other, the allowance
of a dividend credit to a citizen of one country holding shares
of a corporation of the other country, and the extension of the
exemption,afforded under the existing treaty by each country to
ships and aircraft of the other country to include the other
common carriers, railroads, busses and trucks.
,. .
In mentioning these proposals, I do not imply.that either'/
the United States Treasury or the Canadian Ministry' of Finance'
will find them feasible. I would not want either our United
States taxpayers or their fellow Canadians to gain the impression
that these interesting suggestions of theirs will necessarily;
stand the tests that our Treasury and the Canadian Ministry, each'
on its own and quite independently of the other, will ultimately
apply. At this time, I can only say that these suggestions will
be studied.
,• v
III. The Importance of, Domestic Economic Policies ?
The continued growth of the large and mutually advantageous
flow-..,of .trade and investment between the United States and Canada. ,
depends heavily upon a high level of economic activity;in both,,
countries.

- 3worth'o/goods'Lf ser^ces did nJT* 1 T ^ " 3 6 o f S o m e * 7 b i l l l o n
«« 4. > n t^^u© anu services aid not create some nrobipm^ fn-n
demands'in thffin"? J1^? 6dCh °f our economils^ln'somfcases
resSt
Sh££ ^ l t 6 ^ S t a t e ^ f 0 r t a r i f f s o r t a r i f f increases
thl P r e a l S ? . £
*?> handled under the policy outlined by
Sag
two element ^ f
! t o C o ^ e s s on March 3 0. This policy has
gradua
th^.lh ™
+, i ^
} a n d selective revision of our tariffs
S
i ^ f f 1 0 ^ a n d ( 2 ) m a ^enance of provisions in our from rni?^ i^ 1 0 ?. f ° r m i t i S a t i n S injury to domestic producers
recent ^ P i . f f U C U ? n S ; X t a l s o Solves, as the President's
^ P n»^o ?i on lead and zinc indicates, an awareness that in
anS D ^ / J f T ^e preferable to strengthen a domestic industry

balanc° L fppi f rV^ U F^ y meanS other than tarlff actions. On
? ™
™n J ™
confident that, even though tariffs may be raised
n an
S on
Prp^Li f ??
. ? r o o f o f n e ^ , the net effect of. the
Sowth ?n ?v,£°, ? y W 1 4 b 6 . t 0 f a c i l i t a te a continued and further
§h?Srt q?J
i ^ e ° f m u t u a l l y beneficial trade between, the
united. States and Canada.
(b) Investment
No better proof of our belief in the continuing vigor of our
free economies exists than the investments of United States
capital in Canadian development that, have taken place in recent
ITlz'z t\^e e n d o f ^53 these investments had reached a total
of $o\o billion — nearly 80 percent of all foreign investments
in Canada, Since the end of World War II United States direct •
and portfolio investments in Canada, have risen by about 70 percent.
These investments, important as they are, have merely
supplemented those made by Canadians. They are bringing good
results. The ore trains that have just begun to roll from
Labrador represent the latest of many examples of products which
our joint investments have developed. Also, steady additions
to productive capacity in petroleum, mining, lumbering, and
other fields in which Canada is so richly endowed are continuing
to lay the foundations for an increasing trade between our
countries.
It should be noted that United States investment in Canada
would not have reached anything like its present proportions if
investors had not been able to convert their capital and earnings
back into U. S. dollars whenever they wished.
(c) Tourist traffic
I would like also to emphasize the less publicized but basic
economic ties between bur countries represented by the daily
contacts
ofwill
thousands
of with
private
businessmen
and
by
the
flow
of
Canadian
workers
Columbia
last
took
such
as
year,
twothe
and
areas
and
transcontinental
visitors
with
a of
half
increase
interest
the
million.United
across
extension
for
our
highway
the
United
of
borders.
development
air
States
from
States
service
Nova
tourist
This
travelers.
of
penetrating
Scotia
tourist
new
cars
Canadian
to
flow,
into
British
new
Canada
which
roads

- 2 Each country has supported the other in emphasizing to the
rest of the world the value of private enterprise and initiative.
We have sought together to promote freer trade and payments and
to eliminate trade discrimination by other countries. We have
both given these other countries generous amounts of aid to help
them achieve freer and sounder economies.
We stand as a powerful symbol of how two private enterprise
economies can live .peacefully together arid flourish in a.'world
full of internal and external crises. This demonstration of the
mutual advantages which two private enterprise countries under
separate political leaderships can derive from such a relationship
with each other is far more important and effective as an example
for the rest of the world than any of the numerous and important
accomplishments which might be attributed to either of our :.:...j.y.l::i;.
countries separately.
These advantages are derived from our private trade with each
other, from the flow of investment which helps to sustain and
expand that trade, and from intergovernmental cooperation designed-•
to provide opportunities for an even greater volume of trade.
(a) Trade
Canada obtains from the United States over two-thirds-, of its
total imports, compared with about one-tenth from the United
Kingdom and much smaller amounts from other suppliers. Atthe
same time the United States buys over half of Canada's total
exports, more than three times as much as the next largest market,
the United Kingdom.
y : From the United States' standpoint Canada, providing over
one-fifth of our total imports, is second only to the Latin
American area as a source of our supplies and more important than
all of Western Europe, including the United Kingdom. United States
sales to Canada, amounting to one-fourth of our total non-military
exports, place the Canadian market on a par with Latin America
and above any other area as a buyer of the United States' products.
I would like to point out that a great deal of this trade is
of a complementary nature. Canada's exports of raw materials and
partially manufactured goods, which make up around 60 percent of
its exports to all countries, already represent an important
source of supply to United States industry and promise to be even
more important in future years as the United States economy expands
and needs increase. Conversely, the United States has had an
important share of the growing Canadian market for manufactured
goods, which make up more than 70 percent of Canada's imports
from all sources. Moreover, many of our exports of capital goods
to the Canadian market depend on the metals and other raw
materials.
materials
exports
supply inineach
that
turn
Ourwe
other's
help
trade,
import
Canada
thus,
economy.
fromto
toCanada,
produce
a large
while
still
extent
our
more
fills
capital
of these
shortages
goods
basicof

TREASURY DEPARTMENT
Washington

Remarks by Marion B. Folsom, Under Secretary
01 the Treasury, before the Conference on
Canadian-American Economic Relations,
University of Rochester, Rochester, New York,
Thursday, September 2, 1954
""

Economic_Rel_atlons-- -~ Canada and the United State;
The people of our two countries are justly proud of the> hi^h
prov!de°thf ^ " ^ ^ ^e enjoy. We look to our'two "economies to §
L r L
n
o ° P °Vr continued growth and/advancement. Equally
S
f
' - course, is the contribution that our two great
s e c u r i ^ o ^ ^ e ? o n o m i e s ^ n make to the future strength and
security 01 the free world.
o^r^>le nhe P°stwar Period has been one of unprecedented
f ReneroSs SrnVv T t h e ^ ^ ^ ^ates, we havel.ot been'without
L f h f f , P S l y ° f e c o n o m i c problems. Nor will we probably
ever be without recurring uncertainties in our economic affairs. '
A ^ Pr°klems, however, can lead to progress. •They'are a challenge
&
And when Government, business, and educational leaders get together in conferences, such as these being inaugurated here at the
University of Rochester this week, we are doing^uch to meet the
challenge. Economic issues confronting our two countries are
brought into focus and groundwork is laid for constructive
interchange of ideas on how/best to.meet joint problems;
We in Rochester are particularly proud of the initiative the.
University of Rochester1is taking In promoting a better public
understanding of the inter-relationship of Canadian-United States
:
economic affairs. '
•
'
; ..- ••' ' •• . •.
x
* The Interdependence' of the'-Two Economies- ;
"

*' '

"" '-"••fl''~—-—• " '• •

,'•',_

;

•i,..iiiii.,1..i-»—»^».,,.„

The importance of the United States and Canadian economies to
each other is demonstrated In many -concrete ways. Before mentioning some of them, I would like to stress our common -outlook towards
economic affairs. We have similar interests not only because of
geography and the movement of goods, but also because in larre
degree our economic background and objectives have "been the same
H-582'

,^/$-

&*4rv**- y

f d n ~f\-&y"{

lu^^^\ 4
/ j f<t

2- ,

CONEEREN^KON CMADIM-AMERICAIOCONOMIG RELATIONS
^MZJTMSITI OFJ&0CEESTER
ROClSS^BE^^lew York

September 1, 27*1954
Economic Relations —

Canada and the United States

The people of our two countries are justly proud of
the high degree of well-being we enjoy. We look to our
two economies to provide the base for our continued growth
and advancement. Equally important, of course, is the
contribution that our two great North American economies
can make to the future strength and security of the free
world.
While the postwar period has been one of unprecedented
growth for Canada and the United States, we have not been
without a generous supply of economic problems. Nor will
we probably ever be without recurring uncertainties in
our economic affairs.
Problems, however, can lead to progress. They are a
challenge. And when Government, business, and educational
leaders get together in conferences, such as these being
inaugurated here at the University of Rochester this week,
we are doing much to meet the challenge.

Economic issues

confronting our two countries are brought into focus and
groundwork is laid for constructive interchange of ideas on
how best to meet joint problems.

- 2 romoting a
better public understanding of the inter-relationship
of Canadian-United States economic affairs .)|> We in
Rochester are particularly proud of the initiative the
University of Rochester is taking in
I* The Interdependence of the Two Economies
The importance of the United States and Canadian
economies to each other is demonstrated in many concrete
ways.

Before mentioning some of them, I would like to

stress our common outlook towards economic affairs. We
have similar interests not only because of geography and
the movement of goods, but also because in large degree our
economic background and objectives have been the same.
Each country has supported the other in emphasizing to
the rest of the world the value of private enterprise and
initiative. We have sought together to promote freer trade
and payments and to eliminate trade discrimination by other
countries. We have both given these other countries generous
amounts of aid to help them achieve freer and sounder
economies.
We stand as a powerful symbol of how two private enterprise economies can live peacefully together and flourish

- 3 in a world full of internal and external crises. This
demonstration of the mutual advantages which two private
enterprise countries under separate political leaderships
can derive from such a relationship with each other is far
more important and effective as an example for the rest of
the world than any of the numerous and important accomplishments
which might be attributed to either of our countries separately.
These advantages are derived from our private trade
with each other, from the flow of investment which helps to
sustain and expand that trade, and from intergovernmental
cooperation designed to provide opportunities for an even
greater volume of trade.
(a) Trade
Canada obtains from the United States over two-thirds
of its total imports, compared with about one-tenth from the
United Kingdom and much smaller amounts from other suppliers.
At the same time the United States buys over half of Canada1 s
total exports, more than three times as much as the next
largest market, the United Kingdom.
From the United States1 standpoint Canada, providing over
one-fifth of our total imports, is second only to the Latin
American area as a source of our supplies and more important
than all of Western Europe, including the United Kingdom.

- 4 United States sales to Canada^amounting to one-fourth of
our total non-military exports^ place the Canadian market on
a par with Latin America and above any other area as a
buyer of the United States' products.
I would like to point out that a great deal of this
trade is of a complementary nature.

Canada1s exports of

raw materials and partially manufactured goods, which make
up around 60 percent of its exports to all countries, already
represent an important source of supply to United States
industry and promise to be even more important in future
years as the United States economy expands and needs increase.
Conversely, the United States has had an important share of
the growing Canadian market for manufactured goods, which
make up more than 70 percent of Canada1s imports from all
sources. Moreover, many of our exports of capital goods to
the Canadian market depend on the metals and other raw
materials that we import from Canada, while our capital goods
exports in turn help Canada to produce still more of these
basic materials. Our trade, thus,to a large extent fills
shortages of supply in each other!s economy.
It would be strange if the annual exchange of some $7
billion worth of goods and services did not create some
problems for particular segments within each of our economies.

- 5 In some cases demands in the United States for tariffs
or tariff increases result. These demands are handled under
the policy outlined by the President's Message to Congress
on March 30. This policy has two elements: (1) gradual and
selective revision of our tariffs through negotiation, and
(2) maintenance of provisions in our tariff legislation for
mitigating injury to domestic producers from tariff reductions.
It also involves, as the President's recent decision on lead
and zinc indicates, an awareness that in some cases it may be
preferable to strengthen a domestic industry and protect it
from injury by means other than tariff actions. On balance
^T"teel confident that, even though tariffs may be raised in
some instances on proof of need, the net effect of the President's
policy will be to facilitate a continued and further growth
in the volume of mutually beneficial trade between the United
States and Canada.
(b) Investment
No better proof of our belief in the continuing vigor of
our free economies exists than the investments of United
States capital in Canadian development that have taken place
in recent years. At the end of 1953 these investments had
reached a total of $8.6 billion —

nearly 80 percent of all

- 6 foreign investments in Canada. Since the end of World War II
United States direct and portfolio investments in Canada
have risen by about 70 percent.
These investments, important as they are, have merely
supplemented those made by Canadians. They are bringing good
results.

The ore trains 1hat have just begun to roll from /gJ&»k*F~r
_Jgggs@&- represent the latest of many examples of products which
our joint investments have developed.

Also, steady additions

to productive capacity in petroleum, mining, lumbering, and
other fields in which Canada is so richly endowed are continuing to lay the foundations for an increasing trade between
our countries.
It should be noted that United States investment in
Canada would not have reached anything like its present proportions if investors had not been ahle to convert their
capital and earnings back into U. S. dollars whenever they
wished.
(c) Tourist traffic
I would like also to emphasize the less publicized but
basic economic ties between our countries represented by the
daily contacts of thousands of private businessmen and by
the flow of workers and visitors across our borders. This
tourist flow, which took two and a half million United States
tourist cars into Canada last year, will increase with the

- 7 development of new Canadian roads such as the transcontinental
highway from Nova Scotia to British Columbia and with the
extension of air service penetrating new Canadian areas of
interest for United States travelers.
II.

Cooperative Economic Effort
I need not dwell on the many examples of intergovernmental

economic cooperation, such as the St. Lawrence Seaway project,
the Joint United States-Canadian Committee on Trade and
Economic Affairs, the development of critical raw materials,
research and development programs in atomic energy and other
fields, as well as our concerted interest in promoting
peacetime uses of atomic energy.
However, I would like to note in passing the manifestation of this cooperative spirit in the field of taxation
which is now my principal concern in the Treasury Department.
Since 1936 the United States and Canada have had an agreement for the avoidance of double taxation and the prevention
of evasion of income taxes. As commercial, financial and
cultural relations between citizens of the two countries have
increased, this agreement has been revised and expanded, and
in 1944 it was supplemented by a similar agreement with respect
to estate taxes and succession duties.

- 8 Pursuant to these agreements, the taxing authorities
of the two governments work closely together in solving
general tax problems as well as individual cases which
transcend the border between the countries. As might be
expected, taxpayers of the two countries often take the
initiative in suggesting matters for inclusion in these tax
treaties.

In the past year we have been urged to consider

the allowance of deductions by the respective governments for
contributions made by citizens of one country to charitable
organizations in the other, the allowance of a dividend credit
to a citizen of one country holding shares of a corporation
of the other country, and the extension of the exemption
afforded under the existing treaty by each country to ships
and aircraft of the other country to include the other
common carriers, railroads, busses and trucks.
In mentioning these proposals, I do not imply that either
the United States Treasury or the Canadian Ministry of Finance
will find them feasible.

I would not want either our United

States taxpayers or their fellow Canadians to gain the impression that these interesting suggestions of theirs will
necessarily stand the tests that our Treasury and the Canadian
Ministry, each on its own and quite independently of the other,
will ultimately apply. At this time, I can only say that
these suggestions will be studied.

- 9 III.

The Importance of Domestic Economic Policies
The continued growth of the large and mutually advan-

tageous flow of trade and investment between the United
States and Canada depends heavily upon a high level of
economic activity in both countries.
In both Canada and the United States the prospects for
further economic growth, and even higher levels of prosperity,
have never been better. There are great opportunities for
new business, for the development of natural resources, for
the introduction of new products and new techniques. The
extent to which these opportunities will be realized depends
primarily upon the vigor of free private enterprise in both
countries.
The role of the government is, nevertheless, important.
In both Canada and the United States, depression, war, and
defense emergencies have greatly expanded the scope of
governmental activities.

Our governments are taking in

taxes and spending amounts close to one fourth of our
respective national incomes. Sound fiscal policies are,
therefore, of critical importance in developing a climate
which will give the greatest possible scope to individual
initiative.

- 10 In recent years, both governments have been concerned
with the need to restrain inflationary pressures and prevent
disrupting price rises. At the same time real concern has
existed over the severe tax burdens necessary to finance current levels of government spending, and there has been
an appreciation of the fact that, because taxes are necessarily
severe, it is essential that they be imposed in such a manner
as to minimize their adverse effects on economic growth and
incentives.
IV. Fiscal Policies in Canada
I have studied the Canadian budget and tax policies of
recent years with great interest and considerable admiration.
During World War II Canada was more successful than the United
States in keeping down the size of its deficits. During the
period of the war the Canadian government financed 57 percent
of its total expenditures by taxation while, in the same
general period, in the United States taxes accounted for 45
percent of total expenditures.
The Canadian government not only relied less heavily
upon borrowing but also the structure of its debt at the end
of the war financing period was such as to foster stability
in its economy since it had only one-eighth of its debt
maturing within one year.

In the postwar years this favorable

- 11 structure has been maintained.

In contrast, at the end of

1946, the United States had about one-fourth of its debt
maturing within a year's time, and we have only recently
begun to make some headway against this problem.
Since World War II the Canadian Government has managed
not only to balance its budget but also to have surpluses which
it has been able to apply to debt reduction. Since 1946 the
central government has reduced its debt outstanding by 10
percent.

In the United States, during these postwar years,

there was some temporary debt reduction, but it was soon
our
offset by rising expenditures. Is a result, instead of/public
debt being reduced, it has increased by 6 percent since 1946.
The tax system of the central government in Canada is
similar in many respects to that of the Federal Government in
the United States.

Indeed, some of the major Canadian taxes

have been patterned after equivalent levies in the United
States.

There are, however, some very significant differences.

The Federal Government of the United States relies far
more heavily upon so-called direct taxes.

In the current

year, 77 percent of the estimated net budget receipts will
come from the taxes on individual and corporate incomes.

Canada, such taxes will account for 56 percent of the total.

- 12 On the other hand, indirect taxes play a far more
important role in Canada. During the current fiscal year
Canada expects to obtain about 35 percent of its revenues
from these sources as compared with 17 percent in the
United States. This reflects in large part the important role
in the Canadian system played by the general manufacturers'
sales tax which has no counterpart in the finances of our
Federal Government.
The proper balance between the different major sources
of revenue is one of the basic issues in any tax system. The
marked difference in the role of the excises in the tax system
of the United States and Canada has long been a matter of
great interest to experts in this field.
Many persons, including myself, have considered the individual income tax to be the best single form of tax because
it is direct in its impact and because the

rates and the

definition of income can be adjusted to whatever may be the
prevailing concepts of ability to pay.

Indeed, if only

modest revenue were required, taxes on individual incomes
might be used as virtually the sole source, but with budgets
of the size of those now existing in Canada and the United
States, a dominant reliance on this form of taxation would
likely lead to its breakdown.

- 13 The corporate income tax may also be pushed to its
breaking point.

Corporate profits when distributed as

dividends are the necessary reward to the suppliers of
equity capital upon which our whole industrial system has
been built. To the extent that corporate profits are not
distributed as dividends they constitute additional capital
for expansion by existing successful companies. Thus,
whether distributed or retained, reasonable legitimate profits
are part of the foundation of our economic system.

The

critical point in corporate taxation cannot be predicted with
any high degree of accuracy.

It may well be that a tax rate

of 52 percent on corporate incomes, which we now have in the
United States, is somewhat above the margin tolerable over
the long pull.
The considerable load carried by the excises in the
Canadian system helps to explain the somewhat lower level of
individual
corporate and/income tax rates in that country. It may also
help to explain why Canada was able to avoid the imposition
of that highly objectionable form of taxation, the excess
profits tax, at the time of the Korean crisis.
The reliance in Canada upon indirect taxation for a
relatively large part of total revenues makes it possible to
moderate taxes on income, thus minimizing the inequities

- 14 and repressive economic effects of these taxes, which
become very troublesome when the rates are high.

It is

likely, therefore, that the Canadian tax system may have
somewhat better balance than our own and that this may have
been a factor in the extraordinarily rapid growth of the
Canadian economy during recent years.
V.

Recent Fiscal Policies in the United States
I think it can be argued that for some years the

United States has lagged behind Canada in matters of fiscal
policy.

I believe, however, that a material change has

occurred since January 1, 1953.

I would like to discuss

briefly the budgetary and debt policies of the present
Administration, and at somewhat greater length the recent
tax changes with which I have been particularly concerned.
(a) Budget Policies
If we are to have sound prosperity and steady economic
growth, we must have a currency whose purchasing power can be
counted upon not only in the weeks and months but in the
years ahead.

That is why we think it so important that the

Federal budget be brought and kept under control.
The 1954 budget projected by the previous Administration
called for outlays approximating $78 billion. As a result
of a careful, methodical, and continuous pruning, these

- 15 spending plans were cut back by the present Administration
so that we actually spent during the fiscal year 1954,
$67.6 billion. This is $6.7 billion less than the amount
spent in the previous fiscal year and represents a reduction
of more than $10 billion in the spending program which we
had inherited.
This joh was not an easy one because it had to be
carried out in the face of an obvious need for large defense
expenditures. Nevertheless, the results obtained are
gratifying. We wouM up the fiscal year 1954 with a budget
deficit of $3 billion instead of $10 billion as expected by
the preceding Administration, and with the cash budget nearly
in balance.
(b) Debt Management
Effective public debt management and a flexible monetary
policy are also indispensable ingredients of the sound
money policy to which this Administration is committed.
Our debt management operations have been designed to add
stability to the economy. This has involved working toward a
better balanced maturity structure in the debt itself, which
now approximates $275 billion, and encouraging a wider distribution of the debt among private investors. We are making
slow but sure progress in reconstructing the huge public
debt which under past Administrations had been managed by

- 16 inflationary methods.
Primary responsibility for United States credit and
monetary policy rests with the Federal Reserve System.
Under this Administration the Federal Reserve has been free
to pursue a flexible policy designed to promote stability
and economic growth. Moreover, the Treasury has planned
its financing operations so as to complement, and not
nullify, action taken by the Federal Reserve System to keep
the supply of money and credit in line with the needs of the
country. During the current transition from higher to lower
defense spending, when the Federal Reserve has been following
a policy of active credit easing, the Treasury has purposely
done its financing so as not to reduce the supply of longterm money available for private investment or for use by
State and local governments for major projects which give
employment.

The effectiveness of these combined efforts is

evidenced by the huge volume of new corporate and municipal
issues which have been coming out this year and in the
increasing availability of mortgage credit. The record
construction activity encouraged by this ample credit has also
been opportune in strengthening the economy during a period
of adjustment.
(c) Tax Policies
The maintenanbe of economic stability required that the

- 17 cuts in Government spending be matched by similar reductions
in taxes even before budgetary balance had been achieved, is
Secretary Humphrey stated in his testimony before the Senate
Committee on Finance on April 7, 1954,
"...big reductions cannot be made quickly
without seriously dislocating the economy.
"As we cut government spending, we must return
to the people in tax cuts — as we are now doing —
the billions of dollars of government money saved,
so that it can then be put to making new jobs for
the people who previously received their income from
government spending."
As a result of this policy, we have put into effect a
tax reduction program totalling $7.4 billion.

This is the

largest dollar reduction in any single year in the history
of the United States. The total includes a $3 billion
reduction in individual income tax rates effective January 1,
1954, and the termination on the same date of the highly
inequitable excess profits tax law enacted in 1950. The
yield of our excise system was cut by about $1 billion as a
result of legislation which took effect April 1, 1954. The
remaining $1.4 billion is accounted for by the tax reducing
provisions of the recently enacted General Tax Revision Bill.
About two-thirds of the total reduction under this program
goes to individuals. Most of the remaining one-third is
accounted for by measures designed to reduce or remove

- 18 obstacles to economic expansion. As the President has
said, their enactment will "help our people produce better
goods at cheaper prices" and "help to create more jobs."
The most important of these measures is a new and more
realistic treatment of depreciation.
Unlike the Canadian regulations which permit the use of
the declining-balance formula for depreciation deductions,
our Federal Government had been operating under a set of
administrative rules which tended in practice to restrict most
taxpayers to the use of the so-called straight-line method.
This formula spreads the cost evenly over the asset's life.
It is simple to use, but the deductions which it allows often
fail to match true depreciation.

Their failure to keep pace

with the relatively rapid loss of value during the early
years of the asset's life is discouraging to plant modernization and economic progress, particularly when the investment
involves a considerable business risk.

The unrealistically

slow write-off also aggravates the problem of financing
expansion.
The depreciation provisions of our new law will give
taxpayers much greater latitude in the choice of methods of
depreciation and permit a far more rapid write-off of the tax
basis of their property.

The taxpayer will be permitted

- 19 specifically to compute depreciation under the decliningbalance 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.
I believe that these new depreciation rules, which are
strongly influenced by Canadian precedent, have reduced a
serious obstacle to new investment in the United States.
The new law also provid.es a degree of relief from double
taxation of corporate dividends. Such double taxation is a
major injustice, a penalty on equity financing, and a serious
obstacle to business financing. Under the new law each stockholder will be allowed to exclude from his gross income up to
$50 of dividends and apply a credit against tax equal to 4
percent of the dividends in excess of the exclusion.
To those of you who are accustomed to the 20 percent
credit allowed under the Canadian law, this will seem a very
modest measure of relief.

It is, however, 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

- 20 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 more evenly among all our citizens.
The new law adds an additional year to the allowable
carryback of net operating losses. This provides a two-year
carryback and a five-year carryforward, thus allowing such
losses to be averaged over an eight-year period.

This is

somewhat more generous than the seven-year averaging period
used under the Canadian law.
The new law includes a number of other measures which
will eliminate substantial impediments to the growth of the
economy. Among these are a revision in the treatment of
research and experimental costs, and a substantial recasting
of the penalty tax on undistributed earnings which we use to
forestall avoidance of the surtax rates on individuals.
I do not wish to give you the impression that the removal
of impediments to economic progress was the exclusive goal of
the general tax revision bill.

Indeed, over half the loss

of revenue which the new law involves is for the direct benefit
of individual taxpayers. Millions of persons in unusual
hardship situations will find that the new legislation brings
them a substantial measure of relief. Moreover, the new law
includes more than 50 loophole-closing provisions and, of

- 21 course, one of the main purposes of rewriting the Internal
Revenue Code was the clarification and simplification of
the law.
We are aware that our job of tax revision is not complete.
Certain major areas were deliberately not covered in this
revision but were reserved for future consideration.

any case, in a growing and changing economy, tax revision is
necessarily a continuing task.
We also look forward to further tax reduction since we
appreciate fully the severity of our present tax burden and
believe that its reduction is essential to the continued
prosperity of the country.

However, we also believe that

additional tax cuts must wait upon further reductions in
Federal expenditures. Otherwise, the Government's deficits
would start mounting and we would once again move up the alltoo-familiar inflationary spiral that in the past 15 years
cut the value of the United States dollar in half.
VI.

Conclusion
The fact that our two countries have been able to main-

tain high levels of employment and production and

relatively

stable dollars during the current transition from a war to
peace economy testifies to the soundness of the domestic

- 22 policies we have both been pursuing. More important,
however, is that we are building a solid foundation for
future dynamic growth through sound Government financial
practices and the encouragement of individual initiative
and enterprise.
The maintenance of sound and buoyant domestic economies
provides the groundwork for continuing improvement in the
common efforts of our two countries, permits the more ready
solution of particular problems that arise, and enables each
country to make its best contribution to those activities
which are in our common interest, whether they concern trade
between individuals or cooperation between Governments.

W v f W V W V » rTW«C?» eOiTW

STATEMENT BY TREASURY SECRETARY HUMPHREY
(For use at 7:00 p.m., Tuesday, September 14, 1954)

b»ria-Jhtyla~7ea-v review of the estimates in the 1955
of fbout h *r 7 a £.?^ irnated d e f * ° " *>r this fiscal year
; e f ° U t ; L b l l l l ? y A b o u t 2/3 ° f the increase
rldLSon n ? ! y - e S t i m a t e w a s c a u s e d b y Skater
either ~ n
^ e t a x e S b y t h e CongresI than we
of the ^ ° ° m m e n d e d o r estimated at the beginning
*',i~iyyanty° ma£e Xt olear that this is an interim
one that
ZZlFateand
we shall work every day, every
a
e V e r y m n t h t 0 reduce
thaty vl
°
- Yo » will recall *
wiat a year ago we presented an interim reDort on th*

m s fop x

IIZTyyryy n

^- *%.* ^ SL? ^

w ^ t , ^ ?ettef t h e m b y t h e e n d o f t h e fi s ^ l year?
The deficit
on
our Au«ustyestim,S?endl^g b y T a r l y $ 4 b l l l lon.
betwe
our August estimate and our fiscal 1954 year-end
UShf??- Reoei gts also were down by more than
$3 billion, partly due to tax reductions The d.
was reduced from $3.8 billion to $3 billion
„„ 1 4We fald a year ag0 that we were going to keep
working to get both spending and the deficit down
We did get them down. We are going to trv to finnagain this year. We shall keef waking contlrSousW
H-581
during the rest of this fiscal year t o t t e r the *
estimates 000
we are presenting today.
9/14/54

TR^ASURY/DEPARTMENT
'"a shiny ton

/TA<*%*&$
STATEMENT BY^ECRETARY HUMPHREY
(For use at j:00 p.m., Tuesday,, September x^, 195-:)

The mid-year review of the estimates In the 1951?
budget shows an estimated deficit for this fiscal year
of about $4.7 billion.
Akout 2/3 of the increase
over our January estimate was caused by greater
reduction of excise taxes by the Congress than we
either recommended or estimated at the beginning
of the year.
I want to make it clear that this is an interim
estimate and one that we shall work every day, every
week, and every month to reduce. You will recall
that a year ago we presented an interim report on the
prospective figures for 1954. We said then that we
hoped to better them by the end of the fiscal year.
We actually cut spending by nearly §k billion between
our August estimate and our fiscal 1954 year-end
figures. Receipts also were down h~j more than
$3 billion, partly due to tax reductions. The deficit
was redv.ced from $3.6 billion to $3 billion.
We said a year ago that we were going to neep
working to get both spending and the deficit down.
We did get them down, he are going to try to do it
again this year. We shall keep working continuously
during the rest of this fiscal year to better the
estimates we are presenting today.

// -fit
9/14/5- oOo

TREASURY

DEPARTMFMT
WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS,
Tuesday, September 14, 1954.

H-580

for ^ ^ 0 0 ooo nnn P a r ^ 6 n t a n n o u n c e d last evening that the tenders
dat J £?2'J£°' °?2' °r thereabouts, of 91-day Treasury bills to be
offoSJ e Sn ? I t a n n t 0 m a t u r e ^eember 16, 1954, which were
September 13
' W 8 P e ° p e n e d a t t h e F e d e r a l Reserve Banks on
The details of this Issue are as follows:
Total applied for - $2,460,361,000
Total accepted
- 1,500,043,000 (includes $283,553,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.741/ Equivalent rate of discount approx.
1.024$ per annum
Range of accepted competitive bids:
High
- 99.752 Equivalent rate of discount approx.
0.98l$ per annum
Low
- 99.739 Equivalent rate of discount approx.
1.033$ per annum
(34 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
$
35,284,000
1,742,420,000
38,034,000
48,204,000
19,881,000
44,409,000
219,041,000
25,944,000
19,537,000
69,454,000
63,173,000
134,980,000
$2,460,361,000
0O0

Total
Accepted
$

33,124,000
907,525,000
16,239,000
46,204,000
19,881,000
43,245,000
183,261,000
25,416,000
19,537,000
63,694,000
56,193,000
85,724,000
$1,500,043,000

RELEASE MORMIMG NEWSPAPERS,
Tuesday, September Ik, 195k.

The Treasury Department announced last evening that the tenders tar #1,500,000,000
or thereabouts, of 91-day Treasury bills to be dated September 16 and to nature
December 16, 1951*, which were offered on September 9, were opened at the Federal
Reserve Banks on September 13.
the details of this issue are as followss
Total applied tar - #2,1*60,361,000
Total accepted
- l,5OO,0t*3*G0O (includes #203,553,000 entered ©n a
noncofflpetitiTe basis said accepted in
full at the average price shown below)
jyerage-price
- 99*71*1/ t^xlvalmt rate of discount approx. 1.02l$ per annum
Eange of accepted competitive bids:
High - 99.752 Bqai^sleni **t* at discount approx. 0.981$ p«r annum
Low
* 99.739
•
n *
*
m
1.033^
{3k percent of the amount bid fer at the low price was accepted)
Federal Reserve
District

Total
Applied for

Total
Accepted

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

|
35,284,000
1,71*2,1*20,000
38,034,000
1*8,2011,000
19,881,000
y*#it09>0QQ
219,01*1,000
25,944,000
19,537,000
69,1*54,000
63,173*000
134,960,000

$2,1*60,361,000

|i,5oo,ol*3,ooo

Total

33,124,000
907,525,000
16,239,000
1*6,2014,000
19,881,000
1*3,245,000
183,261,000
25,1*16,000
19,537,000
63,694,000
56,193,000
85,724,000

- 5eornnS?I
? 3
i
t°rs have been placed in mortgages, tue
thS m u n l c i a l marke
tavT^Sf*'^
P
t - These institutions
construct?™ a a / a r S ! VOlU2ne o f h o m e ^ ^ ^ 6 , corporate
Ictiv^tv h ^ y a ? l S t E ? e a n d l° o a l government construction. This
„ . i ^ t y has aided materially in the transition to a lower lev,-!
?n 1954 the toSafn^- " ^ ^ ^ e s t i n g to note that thus farx
fn/r,'».V?u
corporate and municipal security offerings
ha
e aled
Pe^ooi ofiltf ,*. ^
^ e record volume of the corresponding
ThlS 1S eyidenoe
of~thP Si,^??'p
that the flexible credit policy
Ve
Tve s
debt
ing desired ?'Su?tf ^
*^
management are accomplish
l0n

nves

oOo

-4 managemer^^Wi^^r^t^n^^

iS a

, ? l m P o r t a n t part of debt

dollfr, saies of strlls E * H ^ n ^ d S n C e - l n t h e v a l u e o f t h e
excess'of releStfons68 Our g o a l ^ o / t h e " ^ ^ ^ ^ o f *"
ProgrlmAs heS to "A.Bil!ion ^e^n ^" aftZvSga Bead
malntaxn a wide
aSong indSvidilis8
distribution of the debt
this StaiSs?™^8?™6 SyStem haS been free and "tampered under
topro»te tab? ??v^ S U r S U e a . f l e x l b l e credit policy designed
benefits n? J M ^ J?y ?S? economic growth. We have seen the
For exa4>?e W f J 6 P ° l l o y a s " h a s b e e n m a d e effective.
*orexampj.e, m the latter part of 1952 and earlv lQR^ strnnoi n S f i S S S i S S S v ^ 6 8 availed. The Fed!rtfL e ^ , ^ i ! should
^ u
milationary
conditions, let the heavy demand for credit

bildin^ aPainsteLrrket;-

The f rCe

the exlstln

°f

^avV^SSS^^cSSl^

and r™<if *? *
S PPly ^ the market was restrictive
and caused an increase in interest rates,
•
;
Beginning about the middle of last year, in vlevi of the
soften?^ fia^h^ d ? v e l o P e d i« the money marked and some
softening m the business situation, the Federal Reserve, under
tH S le C r ?? l t P0110^^ besan increasing bank reserves to make
La?er i f b e o ^ ' t ^ ^ . b % a V a i l f I e t o mett ^pected demands?
a c o ^ i t i o ^ « ^ ? v f ° e C t ^ e f. t h e P e d e r a l R e s e r v e t 0 maintain
a c t v e ease in
™«?£Altionn?f
i
the money market in order to
climat
fra
a cred
It^.iLt
?
?
it standpoint that would tend to
i n J S ^ economic activity. In these circumstances, with an
S n d f l S ^ P H ^ ° ^ C f e d l t . a V a i l a b l e a n d a somewhat slackened
demand for credit, interest rates have declined.
1Q^ ?hfrThf^UKy haS pu?s!_ed financing policies since January
1953 that have been consistent with Pederal Reserve credit policies
In April last year, when credit restraint was desirable? a long
term bond was issued. This offering was made in a free market
in competition with other users of credit, Funds werlchanneled
into Government financing that might have been used for
Site
expansion and would have added to inflationary pressures.
Since the Pederal Reserve began supplying reserves to the monev
market about the middle of last year, the Treasury has offered
intermediate term securities which were taken largely by the
commercial banking system. In this way, the Treasury has continued
to pursue its objective of lengthening the debt even though no
further issues of long-term bonds have been offered. Funds of
savings banks, savings and loan associations, insurance companies,

- 3ino^iJi-'Sr " l4 ~/«vP ur P° 3es O I the tax revision law were to: (l) remove
inequities, {2) reduce restraints on economic
growth and the
creation of jobs, (3) close loopholes, and (4) clarify the
law.
^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 thefj President said when he signed the Tax Revision
3
law
i s tIie e x c
+.£
eHent result of cooperative efforts by
n
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 ail Americans."
We are making slow but sure progress In reconstructing the
huge public debt. The Administration inherited not only a large
public debt but a debt that was too heavily concentrated in
short-term securities. This concentration resulted from financing
and refunding of maturing issues year after year by the Treasury
in short-term securities at low interest rates based on credit
supplied by the Federal Reserve System. These financing policies
under the previous Administration contributed to inflation and
to the depreciation that took place in the purchasing power of
the dollar.
A large public debt is new to this country. Prior to
World War I, the debt was only about one billion dollars. During
that War, it increased to 26 billion dollars. During the 20fs,
the debt was reduced out of an excess of tax receiots over
expenditures to 16 billion dollars in 1930. Deficit financing
in the depression of the 30*s increased the public debt to almost
50 billion dollars. As the result of the Second World War, the
public debt increased to a peak of 280 billion dollars. Following
the war, the debt was reduced a little, principally out of the
large cash balance built up in the Victory Loan drive late in
1945. The debt is now 275 billion dollars. In 18 of the last
21 years, we have had a budget deficit.
It is our objective to manage this inheritance of debt in
such a way as to. contribute to neither inflation nor deflation,
but to stability. Part of this program means to lengthen the
maturity distribution of the debt. Another part of this program
means a wide distribution of the debt among all classes of
investors.
In 8 out of 10 major financing operations since this
Administration took office, (excluding seasonal tax anticipation
borrowing), steps have been made to lengthen the debt.

- 2195S amonnt^V^ ^icit which was 9.4 billion dollars in fiscal
thirds o? th! t 0 I b l l l l o n in 1954. Thus we have gone twoWay
WaPd E balanced bud et
of time?
e
in this ihort period
to and^i^L^ f°r the Ppivate sector of the economy to adjust
re oe
t n 3 lar
^
Se cuys being made in Federal spending It
TToo 2
PaCt on
senltnTlhl^T ^
^ ec0nomy of these ™ts ln F^al
S ^ f f 2 t h a * reductions were made in taxes even before a balance
hao been accomplished in the budget.
lar^^X^?^ti0?^t^i\yea^ totaling 7.4 billion dollars - the
i^??!u+.dollar^total m history — have been passed along to the
?}S ^ t C \ S E ? n d o r l n v e s t . These tax cuts are having a healthy
™^LstlnJuiat2-ng effect on the economy and are helping to provide
more and better jobs. Further fjax reductions, as desirable as
they would be^for all of us, must wait until they can be justified
oy turtner reauctions in Government expenditures.
The action of Congress in passing the Tax Revision Bill this
year was tremendously important to all of us. The Treasury team
togetner with the committees of Congress worked for many months
since_early 1953, to study and prepare this bill. General tax
revision was long overdue. The increases in our tax laws during
periods of depression, war, and defense build-ups had been
haphazard. Inequities and uncertainties crept in. Substantial
impediments to economic development appeared. The law itself
became complex, cumbersome, and in many cases, unclear.
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."

TREASURY DEPARTMENT
Washington
gORRELBASE ON

DRT.TTOPV

Excerpts from remarks by David M Kennprfv
Assistant to the Secret*™ o?VvT £ennedy>
before the SavingflankfLsociatiorof^'
Bre?tnnUuet,tS a t M o u n t Washington H^tel
Bretton Woods, New Hampshire,S0n September 11,
Admin^trtwon^avfblen'brLSL*116 flnanclal Program of this
and honest money
Thlse aSs1»L8J!??arize<i a s eo°nomy, lower tax
in the value of the Solar hL ™i-™ ln f ac£°mPlished. Confidence
economy to a lower C i ^ f r ™ ^ ™ ? 1 , T h e transition of our
S V e l o f Gov
smoothly.
ernment spending is progressing
and h^apf,^ s^flelli^^^f' rem°Val of restrictions
Government are laying the ^ n , , ^ 0 , p r o S r a m e by the Federal
economy, for better nationfl secu^L ° L H * e a l t h l l y expanding
people.
"d-vionai securxty, and for more jobs for more
come more^natwo-tSrdsaofb?he l*^ ^ °0nteo1' W* have
and we have done ?his whfi e p u m n ^ i n ^ f - b a i a ? c i n S th * »»«iget
which will return nearly ^"Sfi^doll^S*AT^SE?8

the fSUPS i15eSdSrSLcd 121^

39 6 bllllon dolla

- *n

74.3 billion in fiscal ill?. in f q ^ P " ^ *"°«nted to
to $67.6 billion. This reduction ? n ^ n S ^ f i t W e S W e r e r e d u o e d
in a saving of 6-1/2 bilLondolLrs I r S H K ^ J ^ " " 1
in^n^ry^S £ l^o?**?^??^^ ^S* -de
been turned. F w L e r reduf?ton« ?f n l S t r a H o n " T h e t l d e h a s
for the current^iscll year o? l S 955. eXPendltUreS " * P l a m e d
H-579

TREASURY DEPARTMENT
Washington

FCK RELEASE ON m i VERY
Eaecarptsbfrom Remarks by David M. Kennedy, Assistant /a
Secretary of the Treasury, before the Savings Banks
Association of Massachusetts at Mount Washington Hotel,
Bretton Woods, New Hampshire, on September 11, 19$ka
The aims and objectives of the financial program of this Administration
have been briefly summarized as economy, lower taxes, and honest money. These
aims are being accomplished. Confidence in the value of the dollar has returned. The transition of our economy to a lower level of Government spending
is progressing smoothly.
A f®widata^J«feftse^»eB private enterprise, removal of restrictions and
handicaps, £?s& sound, realistic programs by the Federal Government are laying
*•

- AjL^jyt%yy^%KX,

the groundwork for a -healthy expanding economy, for better national security,
and for more jobs for more people.
The Federal budget has been brought under control. We have come^aer fs*
two-thirds of the way toward balancing the budget and we have done this while

putting into effect / tax reduction^which will return nearly 7 l/2 billion ^
dollars to the people. , \ * f xjA^sy v;

it W*~ f H

Government spending *fhich totaled 39.6 bullion dollars in.1950 increased

- /

\*m**t f^

^f^^JLJ^J^ *****

year by year and amounted to 7*u3 billion inJ953. J&rl9$k, tfe effurly or
amimfltraticm.ytftiadttca f*yppnriittrr^ri h^re resulted in a saving/ of
6 1/2 billion dollars from the 1953 figure and a saving^ of 10 billion dollars
from the budget estimate*in January 1953 m& the outgoing Administration. The
tide has been turned. Further reductions in expenditures are pla.nned for the
current fiscal year of 1955»

-5 / /

- 2 -

L*&&*y
The budget deficit,which was 9ak billion dollars in^ 195}, amounted to

y^^^-. s^^*-|!**^r *$^~*
3 billion in 1951*. T^s**tes-gaing two^thirds of the way toward a balanced
budget in this short period of time. It takes time for the private sector.
of the economy to adjust to and replace the large cuts being made in Federal
spending. It was to cushion the impact on the economy ,of theylai*ge cuts bfcfl*
Jbavo p<i>oja»ma4e» i»~ Federal spending that reductions were made in taxes^fbefore a
balance had been accomplished in the budget.
Tax reductions, totaling lak billion dollars —

the largest dollar total

in histPqf — have been passed along to the public to spend or invest. These
y^/\£ fi^th^^^m

AtA&-~

J^M.

tax euts waJAJaaye a^healthy and stimulating effect on the economy and,/help *w' A -cy
provide more and better jobs. Further tax reductions, as desirable as they
would be for all of us, must wait until they can be justified by oesfea^^ag
^efftrte lo rochiee government expenditures.

-Wo at ^ho T.i'i'.'fniivj nfiiirrrtrrt^'-'fTr-'-ffffr^ j-ho action of Congress in passing
the Tax Revision Bill wMoh b&ame-laar e»™Aregwefr*i£.A The Treasury^Team to- e-.tVehfi
gether with the committees of Congress worked for many months, since the—
-Spring*^ 1953, to study and prepare this bill. General tax revision was
long overdue. The increases in our tax laws during periods of depression,
war, and defense build-ups had been haphazard. Inequities and uncertainties
crept in. Substantial impediments to economic^ development appeared. The
. law itself became complex, cumbersome, and in many cases, unclear.
In his budget message to the Congress early this year, the President
stated his philosophy of tax revision as followsj
"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

-3
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 chief purposes of the tax revision! were to: (l) remove inequities,
A
(2) reduce restraints on economical growth and the creation of jobs, (3) clos
loopholes, and (U) clarify the law. ;/We know that the job of tax revision is

not complete. In a growing and changing economy, it is necessarily a continu-

ing task. However, as the President said when he signed the Tax Revision 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 re-

vision in seventy-five years. It is a good law. It^wiJJ benefit all Americans
ike Administration inner it ed/a^arge^ublic debt^gffrgr^bt was too
heavily concentrated in short-term securities. This concentration resulted
from financing and refunding maturing issues rW-^sfin^years by the Treasury

in short-term securities at low interest rates based on credit supplied by th
Federal Reserve System. These financing policies under the previous Administration contributed to inflation anc^the depre^srKSh that took place in the
purchasing power of the dollar.
A large public debt is new to this country. Prior to World War I, the JMWJ
During that War, it increased to 26 billion*
debt was only about pne Billion JSollars./ During the 20's, the debt was ^
reduced out of an excess of tax receipts over expenditures to 16 billion
dollars in 1930» Deficit financing in the depression of the 30's increased

-li-

the public debt to about #ift bill inn dollars. As the result of the Second

A
World War, the public debt increased to a peak of ^280 billion dollars.
*2 jy%%xjmi*)

Following the War, the debt was reduced-principaUy out of the large cash
balance built up in the Victory, drive late in 19k$jA^J1 18 of the last 21

years, we have had a budget deficit.-ai&jThe debt is now j|275 billion dollar
It is our objective to manage this inheritance of debt in such a way as
to contribute to neither inflation nor inflation, but to stability. Part of
this program means to lengthen the maturity distribution of the debt.
Another part of this program means a wide distribution of the debt among all
classes of investors.
In 8 out of II? major financing operations^ since this Administration took
office, steps nave been made to lengthen the debt.
The Savings Bond^ Program is an important part of debt management. With

a return of confidence in the value of the dollar, sales of Series E & H Bond

are increasing and are in excess of ~m&&&t±e9r»aaaa\ redemptions • Our goal f
the year in sales of Series E & H Bonds is "A Billion More in %$k*n The

xxy
Savings Bond^ Program is helping maintain a wide distribution of the debt
among individuals.
The Federal Reserve System has been free and unhampered under this

Administration to pursue a flexible credit policy designed to promote stabili
and economic growth. We have seen the benefits of this flexible policy as it
has been made effective. For example, in the latter part of 1952 and early
-f,.y • ••;••<, ! I . "" 4-

The Federal Reserve, as it

should under inflationary conditions, let the heavy demand for credit tighten
the money market. The force of a heavy demand for credit bidding against the
existing supply in the market was restrictive and caused an increase in
interest rates.

-5 Beginning about the middle of last year, in view of the tightness that
had developed in the money markets and some softening in the business situation,
the Federal Reserve, under a flexible credit policy, began increasing bank
reserves to rmat ^xpec^eTdemands f*as.-4£r4MJa*b» Later it became the objective
A
Aof the Federal Reserve to maintain a condition of active ease in the money
market in order to provide a climate from a credit standpoint that would tend
to stimulate economic activity. In these circumstances, with an increased
supply of credit available and a somewhat slackened demand for credit, interest
rates have declined. ^ 2. x p £ a &.
The Treasury pursued financing policies in thio .poaKfeod consistent with
\

^ ^-i.y.s-pi,, &s\ j&gk~*„'l ^^^AfX*!* 4^s*-v*^*-**^ft'j guz^Ly***

Federal Reserve credit policies. In April last year a long term bond was
issued. This offering was made in a free market in competition with other
users of credit. Funds were channeled into Government financing that might
have been used for private expansion and would have added to inflationary
pressures._ -••• .*-•--.• ....„..--—•«--—.»-, -•-., .-..,,.<--'

y^». yy<

,^^^'-^MU

^^Ui-^^

Ml^m Treasury has continued tos. pursue its pbjective of lengthening"^

tj^y&^M^Xu^.A- ••/A'^^a'i-yy,y^&±&^^^^^^^ "LIAK***** P**+ HL.. t^^.Mii:;^'''!*

debtlj Since the Federal Reserve began supplying reserves to the money
market about the middle of last year, Merhafl^jjmlLlkwed' far iifahfriii jfaipaiiin;1
A

intermediate term securities which were taken largely by the commercial
^banking sys t em. ^A Funds of savings banks, savings and loan associations, insurance companies,/and other long term investors have been placed in
mortgages, the corporate market, and the municipal market. These institutions
have supported a large volume of home building, corporate construction, and
state and local government construction. This activity has aided materially
in the transition to a lower level of Government spending. It is interesting

jr:{K€ HtmS

fir

to note that thus far in 1951i, corporate and municipal security offerings

- 6A-<^ v

for new capital oxoeorifrl the record volume of the corresponding period of
1953. This is evidence that the flexible credit policy of the Federal
Reserve and Treasury debt management are accomplishing desired results.

23
STATUTORY DEBT LIMITATION
AS OFil^ustoJl,oo8i^
Section 21 of Second Lihemr Bo„j i..
. . .
<* th« Act, and ,be (ace . W o l o M i S , ' S S / l " ?

TREASURY DEPARTMENT-

»««Wn««<», .T.?E...;...1S«...J?" •""? "T fa5? »m<"">» << oMIjMloa. U . M d uadw .uthoriw

pxijf^ii xxfit isni ^42 w ^Pt ^.C^fcte^f^
® 3 ° 9 1 9 5 5 s ehe a b o v e hmitotion ($275,000,000,000) ehall-be temporarily
nkll...^. _ „ . .,
, .. , ace
wfekfesaffi ad0
iS8Ued ttndw
Total face amount that m a y be outstandingffiSany 0gse d m e
* 281,000,000,000
Outstanding"
Increased by
1 «<000,000,000.
eabSe8hoW8. ebeface
^ 5 P i l l o w i n g eabSe s h o w 8 ebe face

tu. Mis '*

S J R

— « - «*«••*«• «««ih. .« * * . . «

Obligation® i88Ue«S under Second Liberty Bond Act, asamended
Interest-bearing;
Treasury bills .«........„,.„„„„„„
Certificates of indebtedness....
Treasury notes .
BondsTreasury „.„„.„„
4

Savings (current redemp„ value)
Depoaitary.....................^.....,,,,,,,.,

Investment series ........„..,„...,„...
Special F u n d s * .;. '
Certificates of indebtedness
Treasury notes;,.,„,..„.,.
Total interest-bearing ,„.

$19,507,780,000
18,277,116,000
3L&P*69a,kO0
$ 74,681,594,400
84,182,701,450
58.078,481,320
419,360,000
121767,014,000 155.^7,55*. 770
28,866,657,000
_11,612,318,400

Matured,, interest-ceased ..„.,.„.,.„„.„,

42,478,975,400
272,608,126370"
335,685,585

Bearing no interest;
United States Savings Stamps.........
E x c e s s profits tas refund bonds .«,.,
Special notes of the United States;
Internat9! Monetary Fund series
Total

48,713,263
1,213,814
1,426,000,000
1,475,927,077
~
*W7419,739,232"

Guaranteed obligations (not held by Treasury);
Snterest-bearing;
Debentures; F.H.A,
26,172,636
Matured, interest-ceased........................
1,118 , 950
^
Grand total outstanding „.,....„.,.„„,.
Balance face amount of obligations Issuable under above authority',.,.,.

27,291,586

Reconcilement with Statement of the Public Debt ......ftSSSfL* Jl I ^9j4
.... .....»„^.j...^......... ................
(Daily Statement'of the United States Treasury,,,.,,.,,.4iSSS,.5j..2l.i...l25ft„...... J
Outstanding' """?©«"*«)'"""" '"'""""0"'
Total gross public debt......
„
Guaranteed obligations not owned by the Treasury,,.,..,...
Total gross public debt and guaranteed obligations,,...,,...,....,.,,.,,,,,,,.,,,,,.,.,,,,,^^
Deduct - other outstanding public debt obligations mot subject to tfebt limitation

H-678

0O0

274,447,030,818

3550^97182

^74,955,006,377
27,291,586
275T9o^297;963
535,267,145
274,447,0357818

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

TREASURY DEPARTMENT

i J i o t -VI 1Q^4
AS OF A]^USt.Jl,...l^

Fiscal Service

^
Washington, ...;.£....!....*„.* ...r.....
Section 21 of Second Liberty Bond Act, as amended, provides that the face *«^c.^£1kf^f7" ^"^^^ S^Zrof that Act, and the face amount of obligations guaranteed as to principal and interest by'the UnitedStates jexcep^such guardemotion value of any obligation issued on a discount basis which is redeemable prior to maturity at tne opium w ««: i«»uc
S f i be considered .7. its face amount." The Act of August 28. 1954, (P.L. 686:83rd Congres 8 )[provide..that•*«««*•
period beginning on August 28, 1954, anil ending June 30, 1955, the above limitation ($275,000,000,000) shall be temporarily
increased by $6,000,000,000. .
The following table shows the face amount of obligations outstanding and the face amount which can still be issued under
this limitation:
4
Total face amount that may be outstanding at any one time
281,000,000, 000
OutstandingObligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills $ 19, 507, 780 ,000
Certificates of indebtedness

18,277,116,000

TL.«7»..

36,896,698,iffl0 ,7^,681,59^00

BondsTreasury
Savings (current redemp. value)
.
Depositary.

8 4 , 1 3 2 , 701,450
5",OfbtHrOl,3^"
419,360,000

Investment series

~I.Z !. 12,767,014,000 155,W,556,770

Special Funds- «o o// /li-n nnn
Certificates of indebtedne
Treasury notes
Total interest-bearing
Matured, interest-ceased

28,866,657,000
13,612,318,400
-

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

42,478,975^0
^ 2 ,608,126 570
JjOi
J*J J

4 8 , 713 ,263
1 » 2 1 3 »Ox1*
1,^6,000,000

1,475,927.077
^ 0 7 E 4*1 Q 7 3 0 2*32

Guaranteed obligations (not held by Treasury):
interest-bearing:
26,172,636
Debentures: F.H.A. ...
1,118,950
Matured, interest-ceased
=iGrand total outstanding
Balance face amount of obligations issuable under above authority

27.291,586

Reconcilement with Statement of the Public Debt ...^SSSSJ...2i.fc...i25S
(Date)
(Daily Statement of the United States Treasury,
.^^.?.."^..Si.»....i25.„

^CIPUH^B,

274,447,030,818
_
^
O,5?2,969»lo2

-2 m'9%iV£l

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-578

0O0

—
' ' ^ * g°
2 7 ^ , 982,297,963
y ^ ' "'' ^
• 274,447,030,818

TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS,
Thursday, September 9, 195^.

H-577

The Treasury Beparibment today made public a report of
monetary gold transactions -with foreign governments and central
banks for the second quarter of 1954. In this period, U. S. gold
purchases of $82.3 million were offset by U. S # sales of ^101 »9
million. These transactions brought to &82.6 million the net outflow of gold from the United States in the first half of the year,
with U. S # sales at KL83»7 million and purchases at Cl.01.1 million.
In the twelve months ended June 30, 1954, net sales of
monetary gold by the United States totaled y>519.5 million. That
figure compares •with net gold sales by the United States totaling
$296,6 million in the preceding twelve-month period ended June 30,
1953.
The outward gold movement from the United States continued to be low in July and August 1954 with U, S, sales of
VP72,3

million and $65.1 million, respectively. Data for these

two months are not yet available for publication on a country-bycountry basis.
A table showing net transactions, by country, for the
first two quarters of 1954 and for the two fiscal years (ended
June 30) 1953 and 1954, is attached.

UNITED STATES GOLD TRANSACTIONS T'ETH FOREIGN COUNTRIES
January 1, 1954 - June 30, 1954
(In millions of dollars at $35 per ounce)
Negative figures represent net sales by the
United States; positive f'ieureSj net purchases
First
Second
Fiscal Year 1954 Fiscal Year 1953
Quarter Quarter
(July 1, 1953 (July 1, 1952 1954
1954
June 30, 1954)
June 30, 1953)

Country

$2.0

-15.6
80.3

-$10.0
-45.0
-9.9
15.3

-145.6
-11.2
80.3
-40.0

•

§witzerland-Bank for
International Settlements •

-54.9
-10.0
-20.0

-45.0

-71.0
-.5

-34.5
-1.0
-1.2
-440.0
-10.2

-30.0
-*%

-170.0
-5.0
9.5
-30.0
-1.5

-419.6

-$519.5

-$996.6

-7,9

-1.1
*m

-50.0
am

Total

-$63.0

-3.5
-20.2
-50.0
-2.8
-53.1
-125.0
-5.0
-34.9
-10.0

-5.0
-J

-$94.8
-63.9
-2.0

Figures may not add to totals because of rounding.

- 2competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Pederal Reserve Bank
on September 16, 195^,in cash or other immediately available funds
or In a like face amount of Treasury bills maturing September 16, 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 Pederal 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) (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 Pederal Reserve Bank or Branch.

TREASURY DEPARTMENT

-L.

KM*

WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS
Thursday, September 9. I Q S 4 .

H-576

for
fe^OO^
notice, invites tenders
cash and In exchan^ rnl %reabouts of 91-day Treasury bills, for
in the a n S J L i H ^ ^ ^ ^
September f6, 1954,
e d o n a dlsc
under competitive and non comn^i-1^. \ ^ ^
°unt basis
Pt tive
provided, Ihe bills n ? ? h f ? }
bidding as hereinafter

up toTthf closln^hnn.^r^^ f Federal Reserve Banks and Branches
Monday, Septembel if, 195^° ° C ^ n ^ P - m - { 1 f a e t 2 r ? * * * * * * S a v i »S time,
Traasu™ rir, Q ^^ I „ 1/
Tenders will not be received at the
muUlpIe S f P l ? ^ S '« H B ? ln ?K° n - E a c h t e n d e r m u 8 t b e f o r a n even
offSiSn ™««4.*i' °J a n d l n t h e c a s e o f competitive tenders the price

ttoSrSeSSlS

e X P r S S QQ 2g * h % baBlfl ° f 100' w i t h

not

more thin

urad t h A t ? ^ « S : g " 99.925. Fractions may not be used. It is
!££!? ?
tenders be made on the printed forms and forwarded In the
• B?anohL e nn^° P ^ S W ^ C h W ' n b e B«PPlied by Pederal Reserve Banks or
.Branches on application therefor.
**"«« wx
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,
*
,.
^ediately
after
the
closing
hour,
tenders
will
be
opened at the
n
Pederal 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 Treasurv
expressly reserves the right to accept or reject any or all tenders
ln 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

TREASURY DEPARTMENT
Washington
FOR RELEASE, HOR£I?iG NEWSPAPERS,
Thursday, September 9, 1954

~ " ~ W """'"

™

The Treasury Department, by tliis public notice, invites tenders for
&L,500,000,000 , or thereabouts, of 91 -day Treasury bills, for cash and

"W~

in exchange for Treasury bills maturing September 16, 1954

, in the amount of

~~xW~~~—
$1,500,603,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated September 16, 1954 , and "mil nature December 16, 1954 , -when the face
— - ^
—
•—p^
amount v/ill 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, 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 t>.m., Eastern/stsxataKt time, Monday, September 13, 1954 •

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., 99.925. Fractions may not be used. It is urged that tenders
be made on the printed forms and forwarded in the special envelopes which will
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 v/ithout deposit from
incorporated banks and trust corganics and from responsible and recognized

dealers in inv;.-stni~nt securities. Tenders from others must bo accompanied by

- 2 -

pas'ment 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 trxist company.
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following vihich 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 who! J 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 bo made or
completed at the Federal Reserve Bank on September 16, 1954

}

j_n

cn>sh

w
other immediately available funds or in a like face amount of Treasury bills
maturing September 16, 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 iron
the sale or other disposition of the bills, shall not have any exemption,
as such, and loss fro;-: the sale or other disposition of Treasury bills shall
not hav . iny special tr-atm^nt, 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,

- 3 -

but shall be exempt from all taxation now or hereafter imposed on the principa

or interest thereof by any State, or any of the possessions of the United Stat
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 b
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 ±9k'±3 the amount

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. 418, 3HSxx&XSS&g&, 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
WASHINGTON, D
RELEASE MORNING NEWSPAPERS,
Saturday, September 4, 1954.

H-575

The Treasury Department announced last evening that the tenders
l°l J1'500,OOO,000, or thereabouts, of 91-day Treasury bills to be
dated September 9 and to mature December 9, 1954, which were offered
on August 31, were opened at the Federal Reserve Banks on
September 3.
The details of this issue are as follows:
Total applied for - $2,242,097,000
Total accepted
1,501,457,000 (includes $199,123,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
Average price
below)
- 99.743/ Equivalent rate of discount approx.
1.016$ per annum
Range of accepted competitive bids: (Excepting one tender of
$100,000)
High - 99.750 Equivalent rate of discount approx.
0.989$ per annum
Low
- 99.741 Equivalent rate of discount approx,
1.025$ per annum
(l4 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
$
34,666,000
1,651,325,000
32,490,000
37,373,000
16,814,000
20,915,000
236,500,000
17,690,000
10,950,000
31,796,000
^9,077,000
$2,242,097,000
102,501,000
0O0

Total
Accepted
$
29,166,000
1,001,945,000
18,190,000
27,987,000
15,884,000
18,185,000
212,080,000
17,390,000
10,450,000
31,596,000
39,077,000
79,507,000
$1,501,457,000

•I- < ^ i
BBBASE

maaw HMSPAFERS.

%mt mm®lm

« » * ttm ttafero f«r $1,500,000,000,

«p thereabouts, of 92Mar Tr^Mnqr MHs to Mm 4*teA msptmi&m 9 and ta* mater® DsMtenr 9,
195%, *hleh *ere otttvtd o& Angasfc 31, «m «9«HMI at th» Fnitoul BtiisFwt Saito «m
Beptmaher 3*
fhm totalis of this issue •*• at followt
Total m&llad f or » *2, £42,097,300
nnmqpttltlfi b&sds aad accaptea is
Average priee

fill st %hm awrago prtet shown tela*)
* 99 *fl§3/ S$gi*a3*a& vmhm of dUHN«nft « p p m * 2*0E1& psr amnis

Saa# of nee®pt®4 g^ptUtl^ Mfet (&^^4^ «nt timte «f :;XO0,OOQ>
- 99«f50 IgtttaftlMfc rtfta of 4 l a m n t apftm. 0*9S^ per msstssi
« 99*tlA
•
• «
.•
- *
i#os$y «
•

,Iigh

(Hi percent of tfc»

ftftaX

aaaastag
|
3fc»*66»0QD
3*lgl*3a5,000
JM90fOOO
37,313*000
34634,000
£0,915,000
23i,SO0f0o®
17,690,000
10,^0*000
31,7^,000
!#,Q7? f TO
TQC4X $**2fa2*09r*000

i9,M6,000
l,Q01,Sti5,000
18,190,000
2?, 987,000
15,884,000
tt$tt$9yjQ

212,080,000
17,390,GQQ
10,!i50,000
3A,596,OOO

39,077,000
79,507,000
$1,501,1*57,000

Comparison of principal items of assets and liabilities of national banks - Continued
(In thousands of dollars)
slncrease or decrease:Increase or decrease
June 30,
April 15,
June 30,
;since Apr. 15, 195^- :since June 30, 1953
195^
195^
Amount
:Percent
1953
Amount
:Percent
LIABILITIES
Deposits of individuals, partnerships, and corporationsJ
Demand
53»7S^50
53»ss6,29l
-101,841
••••»••••*«•.
53.369.3S3
-.19
^15.067
o7S
lime*»..».». ••••••••»«.»..«.
23,973,113
23,424,828
22,285,848
2.36
1,692,265
553.2*5
7.59
Deposits of U. S. Government
3.614,035
2,472,941 1,146,857
46.48
1,141,094
2,467,173
46.14
Postal savings deposits'••••••••
13.070
-166
13A51
-1.25
-381
-2. 8 3
13.236
Deposits of States and political
subdivi sions
7,063,425
'6,627,52s
6.917.357
146,068 2.11
6.58
435,897
Deposits of banks..
.
9.752,516
609,105
s. 596,634
9.143,411
1.155.882
13.^5
Other deposits (certified and
cashiers' checks, etc,)........
1,?439,122
Total deposits......
99.644.73T
Bills payable, rediscounts, and
other liabilities for
borrowed money.
28,751
Other liabilities.
Total liabilities, excluding
capital accounts
101,208,715
CAPITAL ACC0U1ITS
Capital stock:
^,793
Preferred...
2.366,255
Common......
2t 371.078.
Total...
Surplus.......
"3^57330
•••«•••«....
Undivided profits
1,*K)4,S66
•«••••*..•»•»•».*.«<
Reserves.
283.626
Total surplus, profits, and
reserves
__J>jj$23*822
Total capital accounts.....
7.704,900
Total liabilities and
capital accounts.
IPS,913,615
Percent
IJmTIOSt
U.S. Gov!t securities to total
32.93
assets......
3
^9
Loans & discounts to total assets.
7.73
Capital accounts to total deposits

i!tZL23Z
qn

1,383.168
-38,215
^77^8,953 2,315.093

-2.59
2.38

*+5»5l0
1,678,089

-290,715
-94,420

Jg.27g.757

96,472,552

>953
-2iA7.728
.2,352,681
3,608,648
1.325.3^6

5.65s

97.329.638

^^895.778

4.05
5.17

-91.00

-16,759
-142,856

-36.82
-8.51

1,929,958

1.94

4,736.163

4.91

-160

-3*23

-S6$
107,314
1567449"
235,208
108,211
16,308

-1 .29

7W
319.^66

JZi;,465_
.5.267,459,
7,620,lift
106,898,8^7
Percent
32.36
35.27
7.83

2,258,971
2,264,629
3.410,122
1.296,655
267,318

2mh5SL
2&23L
3b,682
19,520
10,161

1.02
1.4l

4.974.095
7.23s,724

66,363
84,760

1.26
1.11

103.711.276
Percent

2,014,718

1.S8

31.S7
35.23
7.64

•IS

i77o

"6T90
6.10
7.23

667IT
f), 202. TO

5.02

\M~JM

HOTS; Minus sign denotes decreas^

Statement showing comparison of principal items of assets and liabilities of active national
banks as of June 30, 195^. April 15, 1955, and June 30, 1953
«
t

Kumber of banks.

•»..«•» »*»».•»'

•
*
«
•

June 30,
1955
4,842

ASSETS
15,868,107
Commercial and industrial loans.
9,172,416
Loans on real estate......
»«•«••
All other loans, including
overdrafts.
I3»3i7»3gi.
».«•.....
38,35S,oH4
Total gross loans.
Less valuation reserves....
?7?t6g8
*»ev xoans................
37,782,386
TJ. S. Government securities?
Direct obligations
35.835,931
Obligations fully guaranteed..
2_6j4_24
Total U. S. Securities......
35*862,355
Obligations of States and
political subdivisions..
6,955,581
Other bonds, notes and de1,905,204
oen T>ur©s» ..«...»*»••»»...»•»»#
Corporate stocks, including
stocks of Ped.Reserve banks...
210,936
Total securities
44,953^076
Total loans and securities,.
82,71^,"¥62
1,385,790
Currency and coin............•••
12,400,242
Reserve with Fed.Eeserve banks..
10*913.876
Balances with other banks.......
Total cash, balances with
other banks, including reserve balances and cash items
in process of collection...
24,699,908
Other assets....................
1,498,245
Total assets
•
108,913*615
. . . . . . . . . 1

•
*
*
•
•

(In thousands of dollars)
J
i Increase or decrease:Increase or decrease
April 15. 5 June 30, t since Apr. 15, 1955 ssince June 30, 1953
l
1954
: 1953
Amount
1 Percent % Amount J Percent
4,848
4,881
•39
16,075,250
8,991.911

16,57^.920
8,508,503

•206,933
180,505

-1.29
2.01

-706,613
663,913

.4.26
7.S0

13,199.073
38,266,224
562,576
37,703,648

H.995.778
37,079,201
541,846
36,537,355

.118,248
91.820
13,082
7S.73S

.90
.24
2.32
.21

1,321,553
1,278,843
?3>812
1,245,031

11.02
3.55
6.24
3.5i

34,560,499
26,99
34.527,59

33,025,310
23.744
33,049,054

1,275.532
-573
1,274,859

2,810,621
3.69
2,680
-2.12
JabS2,813,301

8.51
11.29
8.51

6.7S3.550

6,218,735

171.131

2.52

735.S46

11.83

1.936,535

2,066,839

-31.331

-1.62

.161,635

-7.82

200,901
1,272
.61
m.533,58? ly^l5T931
78,072,SSi
.
_
_
1,495,669
l]J4
i. 353.588
l25,"25r~
sT^T
12,516,301
-238,324
-1.89
10,573,757
609,909
5.92

10.035
97,557
k\&J2>
32,202
-116,059
4140,119

5.99
8.18

2.05
356,262
1.57 """203,499
1.88
5.202,339

1.46
15772,
5.02

209,664
S3r5l7:i45
81,220,793
17260,549
12,638,566
10,103,967

25, 53,082
24,343,646
496,826
- 1 .^75.022
1,294,746
23,223
"106^898,897 103,711,276" 2,014,718

-i*

111

2 "*
-.93
4.20

- 2 -

nearly 1 percent since April, and were up 11 percent in the year. The percentage of loans and discounts to total assets on June 30. 1955 was 35.69 in
comparison with 35*27 in April and 35* 23 i» the year.
Investments of the banks in United States Government obligations on June
30, 1954 aggregated $35,900,000,000 (including $26,400,000 guaranteed obligations), an increase of $1,300,000,000 since April. These investments were 33
percent of total assets. Other bonds, stocks and securities of $9,000,000,000,

which included obligations of States and political subdivisions of $6,900,000,0
were $100,000,000 more than in April, and $600,000,000 more than held in June

last year. Total securities held amounting to $44,900,000,000 were $1,400,000,0
more than the April figure.
Cash of $1,400,000,000, reserve with Pederal Reserve banks of $12,400,000,000,
an<jl balances with other banks (including cash itemsin process of collection)

$10,900,000,000, a total of $24,700,000,000, showed an increase of $500,000,000
since April.
The capital stock of the banks on June 30, 1954 was $2,371,000,000, includ-

ing nearly $5,000,000 of preferred stock. Surplus was $3,645,000,000, undivided
profits $1,405,000,000, and capital reserves $284,000,000, or a total of

$5,335,000,000. Total capital accounts of $7,705,000,000, which were 7.73 perce

of total deposits, were $85,000,000 more than in April when they were 7*83 perc
of total deposits.

TKEASUBy DEPARTMENT
Comptroller of the Currency
Washington
RELEASE MOHNIHQ NEWSPAPERS
jfrlday, September a iQf4>
H-674
The total assets of national banks on June 30. 1954 amounted to nearly

.io9.ooo.ooo.ooo. a
Ha, K. Gidney.

was

Ihe returns covered

today by

^^ ^ ^ ^^

^ ^ ^ ^^ ^ ^ ^

United state, and possessl0nS. The asseta were $2,000,000,000 more than the
-cunt reported by the 4,S4S active banks on April 15. 1954. the date of the
previous call, but were more than $<; onn nnn nm
ore m a n »5,000,000,000 over the aggregate reported
oy the 4,881 M t l w t a n k s a s Q f j ^ ^
^ ^
a. deposits of the banks on June 30 were $99,645,000,000. an increase of
$2,300,000,000 since April, and an increase of nearly $5,000,000,000 in the
year. Included in the recent deposit figures were demand deposits of individuals, partnerships, and corporations of $53,800,000,000. which decreased

$102,000,000. and time deposits of individuals, partnerships, and corporations

of $24,000,000,000. which increased $553,000,000. Deposits of the United State

Government of $3,600,000,000 increased $1,147,000,000 since April; deposits of
States and political subdivisions of $7,000,000,000 showed an increase of

$146,000,000. and deposits of banks amounted to $9,800,000,000. an increase of

$609,000,000. Postal savings were $13,000,000 and certified and cashiers' chec
etc., were $1,400,000,000.
Net loans and discounts on June 30. 1954 were $37,800,000,000. an increase
of $79,000,000 since April, and $1,200,000,000. or 3 percent, above the June
figure last year. Commercial and industrial loans were $15,800,000,000, a de-

crease of $200,000,000 since April. loans on real estate of $9,200,000,000 wer
up 2 percent. Other loans, including consumer loans to individuals, loans to

farmers, to brokers and dealers and others for the purpose of purchasing and c

ing securities, and to banks, etc., amounted to $13,300,000,000, an increase o

TREASURY DEPARTMENT
Comptroller of the Currency
Washington
RELEASE MOBBING NEWSPAPERS
Friday. September 5. 1954•

H-574

The total assets of national hanks on June 30, 1954 amounted to nearly
$109,000,000,000, it was announced today "by Controller of the Currency
Ray M. Sidney. The returns covered the 4,842 active national banks in th©
United States and possessions. The assets were $2,000,000,000 more than th©
amount reported by the 4,848 active banks on April 15, 1954, the date of the
previous call, but were more than $5,000,000,000 over the aggregate reported
by the 4,881 active banks as of June 30, 1953.
The deposits of the banks on June 30 were $99,645,000,000, an increase of
$2,300,000,000 since April, and an increase of nearly $5,000,000,000 in the
year. Included in the recent deposit figures were demand deposits of individuals, partnerships, and corporations of $53,800,000,000, which decreased
$102,000,000, and time deposits of individuals, partnerships, and corporations

of $24,000,000,000, which increased $553,000,000. Deposits of the United States
Government of $3,600,000,000 increased $1,147,000,000 since April; deposits of
States and political subdivisions of $7,000,000,000 showed an increase of
$146,000,000, and deposits of banks amounted to $9,800,000,000, an increase of

$609,000,000. Postal savings were $13,000,000 and certified and cashiers1 checks
etc., were $1,400,000,000.
let loans and discounts on June 30, 1954 were $37,800,000,000, an increase
of $79,000,000 since April, and $1,200,000,000, or 3 percent, above the June
figure last year. Commercial and industrial loans were $15,800,000,000, a de-

crease of $200,000,000 since April. Loans on real estate of $9,200,000,000 were
up 2 percent. Other loans, including consumer loans to individuals, loans to

farmers, to brokers and dealers and others for the purpose of purchasing and ca

ing securities, and to banks, etc., amounted to $13,300,000,000, an increase of

- 2 -

nearly 1 percent since April, and were up 11 percent in the year. The percentage of loans and discounts to total assets on June 30, 1954 was 34.69 in
comparison with 35.27 in April and 35.23 in the year.
Investments of the banks in United States Government obligations on June
30, 1954 aggregated $35,900,000,000 (including $26,*K>0,000 guaranteed obligations), an increase of $1,300,000,000 since April. These investments were 33
percent of total assets. Other bonds, stocks and securities of $9,000,000,000,
which included obligations of States and political subdivisions of $6,900,000,000,
were $100,000,000 more than in April, and $600,000,000 more than held in June
last year. Total securities held amounting to $44,900,000,000 were $1,400,000,000
more than the April figure.
Cash of $1,400,000,000, reserve with Federal Reserve banks of $12,400,000,000,
and balances with other banks (including cash itemsin process of collection) of
$10,900,000,000, a total of $24,700,000,000, showed an increase of

$500,000,000

since April.
The capital stock of the banks on June 30, 1954 was $2,371,000,000, including nearly $5,000,000 of preferred stock.

Surplus was $3,645,000,000, undivided

profits $1,405,000,000, and capital reserves $284,000,000, or a total of
$5,335,000,000. Total capital accounts of $7,705,000,000, which were 7.73 percent
of total deposits, were $85,000,000 more than in April when they were 7.83 percent
of total deposits.

Statement showing comparison of principal items of assets and liabilities of active national
banks as of June 30, 1954, April 15, 1954, and June 30, 1953

:
1
dumber of banks

June 30,
1954
4,842

ASSETS
Commercial and industrial loans.
15,868, "JO 7
Loans on real estate
9,172,416
All other loans, including
overdrafts
13.317.321
Total gross loans
38,358,044
Less valuation reserves....
575.658
Net loans
37.782,386
U. S. Government securities:
Direct obligations
35,835.931
Obligations fully guaranteed..
26,424
Total U. S. Securities
35,862,355^
Obligations of States and
political subdivisions.
6,954,581
Other bonds, notes and debentures
1,905,204
Corporate stocks, including
stocks of Fed.Reserve banks...
210,936
Total securities
44,933>OJ6
Total loans and securities.. 82,715,^2^
Currency and coin
1,^5.790
Reserve with Fed.Reserve banks..
12,400,242
Balances with other banks
10.913.876
Total cash, balances with
other banks, including reserve balances and cash items
in process of collection...
24,699,908
Other assets
1,438,245*
Total assets
108,9137^15

(In thousands of dollars)
: Increase or decrease:Increase or decrease
April 15,
June 30.
since Apr. 15. 195^ :since June 30, 1953
: Amount
Percent : Amount : Percent
195^
1953
4,848
4,881
-6
-39
16,075,240
8,991.9U

16,57^.920
8,508.503

-206,933
180,505

-1.29
2.01

-706,613
663.913

-4.26
7.S0

13.199.073
38,266,224
562,576
37.703.&K3

11,995.778
37.079.201
541,846

llS.2k$
91.820
13.082
73,73*

1.321,543
1,278,843
??>812
1,245,031

11.02
3.^5
6.24

3^.537.355

>90
• 24
2.32
•21

34,560,499
26,997
34,5S7.496

33.025,310
23,744

1,275.^32

33.049.054

2,810,621
2,680
2,813,301

8.51

r ^ w =5H
,?^

3.69
-2.12

6,783,^50

6,218,735

171.131

2.52

735.S46

11.83

1.936,535

2,066,839

-3L331

-1.62

-161,635

-7.22

200,901

1,272

.61

209,664

^^3Sl^m^^m:.i^M.
1,^^+93..353.588
12,638,566 12,516,301

i25,1$a
-238,324

24,343.646

496,826
23^23
3.223

JL><9JJ9B^
- 1.^75.022

1,294,746

To"6^89S,897 "103,711,276" 2,014J18

~3T59"

?»25

1.81

-1.89
5.92

3imjSh.

.642;
32,202
-116,059
4140,119

2.05
^57
l»SS

3M
8.51

JU2I
8.18
5.95
2.38
-.93
4.20

1.46

15I2S_
5.202,339

5.02

:
: June 30,
: 1954

(in thousands of dollars)
;
:
: April 15, : June 30,
: 1954
: 1953

LIABILITIES
Deposits of individuals, partnerships, and corporations:
Demand
53.72^,450
Time
23,972,113
Deposits of U. S. Government......
3,6l4,035
Postal savings deposits
13.070
Deposits of States and political
subdivisions
7.063,lJ-25
Deposits of banks
9.752.516
Other deposits (certified and
cashiers' checks, etc.)
1,439,122
Total deposits
99.644,731
Bills payable, rediscounts, and
other liabilities for
borrowed money
28,751
Other liabilities
1,535,233
Total liabilities, excluding
capital accounts
101,208,715
CAPITAL ACCOUNTS
Capital stock:
Preferred
4,793
Common
2,366.285
Total
2,371.078
Surplus
3T645.330
Undivided profits
1,1|04,866
Reserves
283,626
Total surplus, profits, and
reserves
5.TH.822
Total capital accounts
7.704.900
Total liabilities and
accounts
RATIOS:
U.S.
Loans
Oapital
assets
Gov't
&capital
discounts
accounts
securities
to
tototal
total
to total
deposits
assets. 108,913,615
Percent
34
32.93
7.73
6§

53.286,291
23,424,828
2,467,172
13.236
6,917.357
9.l1+3>Im

:Increase or decrease:Increase or decrease
:since Apr. 15. 1954 :since June 30, 1953
s
Amount
:Percent : Amount
:Percent

53.369.323 -10l,84l
-.19
22,285,848
553.285
2.^6
2,472,941 1,146,857 46.48
13^5*
-166 -1.25
6,627,522
2,596,63*+

146,068
609,105

1,477,337
1,383.168-38,215
97^329763894,748,953 2,315,093

319.^66
1,629,653
99.278.757

^»953
2,347,728
2,352,681
3,608,64^
1,325.3^6
273,465
5,267,459
7.620,im
2
106,898,897
Percent
35»
32.3o
7»^3
7.

^5.510
1,678,089

2.11
6.66

.72
7-59
46.14
-2.83

435,897
1,155,882

6.58
13.45

-2.59 ,_, 55.95J+
^05
%3
% \ m y m P J

-290,715 -91*00
-9^.420 -5.79

96,472,552 1,929,958

415,067
1,692.265
l,l4l,094
-321

1.9k

-16,759
-142,856

-36.22
-2.gl

4,736,163

^.91

5.652
-l60 -3.23
-265
2,258,971
34l55Z ^ L I 2 -JPI'fl*
2,264,629
137397^72IffCTfl
'T^^7l22^~^M2^1^
235^2
1,296,655
19,520
1.4l
108,211
267,313
10>l6l
3.72
16,308
4,974.095
~~ 7.238.724 ~
103.7U.276
Percent
35>*??
3i»°/
7»64

66,363
84,760

1.26
iqi

359.727
466,176

-15.29
M5
4.70
olW
2.35
6.10
7.23
6.P"

NCOTj Minus
2,014,718
1.28
5.02
**-&*•5,202,339
denotes decrease.

TREASURY DEPARTMFNT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Wednesday, September 1, 1954.

H-573

Secretary Humphrey today Issued the following statement on
the resignation of Elbert P. Tuttle as General Counsel of the
Treasury Department to become judge of the United States Circuit
Court of Appeals, Fifth Circuit:
'It is with the greatest regret that we in the Treasury
are going to lose Mr. Tuttle's association with us as General
Counsel. He has been an invaluable part of the Treasury team.
In many respects his understanding and judgment have contributed
to the solution of problems of the highest national concern.
Only our confidence that he will make a distinguished jurist
reconciles us to the very real loss caused to the Treasury by his
departure. '
^Mr. Tuttle, a long-time resident of Atlanta, Georgia, was
appointed General Counsel of the Treasury Department by
President Eisenhower in January, 1953, and served in that capacity
until today.
He was nominated by the President on July 7, 1954, to be
a Circuit judge, and was confirmed by the Senate on August 3.
He was to be sworn in at 2 p.m. today by Associate Justice Burton
of the United States Supreme Court.
Mr. Tuttle will return to Atlanta to live.

oOo

- rz
*t

Secretary hunphrey today issued the following statement
on the resignation of Elbert P. Tuttle as General Counsel of the
Treasury Department to become ^udge cf the united States Circuit
Court of Appeals, Fifth. Cipcy.it:

--r. Tuttle, a long-time resident of Atlanta, Georgia,
mas appointed General Counsel of the Treasur- Dersr-i—ent
by President Eisenhouer in January, 1953, and served in that
capacity- until today.
he mas nominated b~ the President/to be a r*rcuit iixlre
and was confirmed by the Senate on /£^i^f > . he yas to be
sworn in at 2 p. o. today b; associate "justice murton of the
United States Supreme Court.
.Jr. Tuttle -Till return to Atlanta to hive.

lt is with the mam greatest regret that we in the

Treasury are going to lose mr. Tut tie's association with us
as General Counsel. He has been an invaluable part of the
Treasury team. In many respects his understanding and judgment
have contributed to the solution of problems of the highest

fail
national concern, Jeur confidence that he will make a distinguished
/)
caused
jurist reconciles us to the very real lossto the Treasury 4 H t by
his departure*. w

TREASURY DEPARTMENT
WASHINGTON , D.C.
RELEASE AFTERNOON NEWSPAPERS,
Thursday, September 2, 1954.

H-572

Secretary Humphrey today announced the appointment of
John D. Lookton, treasurer of the General Electric Company,
as State Chairman of the U. S. Savings Bonds Advisory Committee
for New York.
Mr. Lockton succeeds Robert W. Sparks, vice president and
treasurer of The Bowery Savings Bank of New York, who resigned
as New York State Chairman recently after serving in the Savings
Bonds program in various capacities since its inception in
May, 1941.
The new State Chairman, who will direct volunteer Savings
Bonds activities in New York, was born In Logansoort, Ind.,
and attended public schools in Battle Creek, Mich, and
Elkhart, Ind. Upon his graduation in 1926, with an A. B.
degree from the University of Michigan, he joined the General
Electric Company. In November, 1932, he was appointed assistant
to the treasurer, and two years later was elected assistant
treasurer. He became treasurer January 1, 1948.
In his capacity as treasurer he also serves as a trustee
of the General Electric Pension Trust and several related
trusts, a director of the General Electric Credit Corporation,
Electric Mutual Liability Insurance Company and several other
subsidiary companies.
He is chairman of the General Electric Employees Savings
and Stock Bonus Plan under which the company gives a stock
bonus to employees buying U. S. Savings Bonds on the Payroll
Savings Plan. Since the bonus plan was initiated in October
1948, employees have purchased more than $100,000,000 of
Savings Bonds through payroll savings. This achievement was
recognized by a Treasury Citation awarded by Secretary Humphrey
on June 18.
Mr. Lockto# is a trustee of the Episcopal Diocese of Albany,
a vestryman gySt. Georgefs Episcopal Church, Schenectady;
a trustee of Russell Sage College, and the Schenectady Savings
Bank, a director of the Van Curler Hotel, and chairman of the
Schenectady County Savings Bonds Committee. He is a member of
Sigma Alpha Epsilon fraternity, Rotary, Mohawk Club and Mohawk
Golf Club.

Secretary Humphrey today announced the appointment of John D. Lockton,
treasurer of the General Electric Company, as State Chairman of the U. S.
Savings Bonds Advisory Committee for New York.
Mr. LDckton succeeds Robert ¥. Sparks, vice president and treasurer
of The Bowery Savings Bank of New York, who resigned as New York State
Chairman recently after serving in the Savings Bonds program in various
capacities since its inception in May, 1941.
The new State Chairman, who will direct volunteer'activities in
New York, was b o m in Logansport, Ind.. attended public schools in Battle
Creek, Mich, and EOkharcfc, Ind. Upon his graduation in 1926, with an A. B.
degree from the University of Michigan, he joined the General Electric

di Y3 81 on. .nf ,3j^^2ea»3» •Q££4^®~»&Q£&M&&&^^ Et'^^tmimut^^r^'TfT^

'or GE ^^3^^
**-fiew*l.

In November, 1932, he was appointed as-

sistant to the treasurer, two years later was elected assistant treasurer
4&awtt became treasurer J January 1, 1948.
In his capacity as treasurer he also serves as a trustee of the General
Electric Pension Trust and several related trusts, a director of the General
Electric Credit Corporation, Electric Mutual Liability Insurance Company
and several other subsidiary companies.
(more)

JJh^

- 2 -

He is chairman of the General Electric Employees Savings and Stock
Bonus Plan under which the company gives a stock bonus to employees buying
U. S. Saving Bonds on the Payroll Savings Plan. Since the bonus plan

was initiated in October 1948, employees have purchased more than $100,000,00
of Savings Bonds through payroll savings. This achievement was recognized
by a Treasury Citation awarded by Secretary Humphrey on June 18.
Mr. Lockton is a trustee of the Episcopal Diocese of Albany, a vestryman of St. George's Episcopal Church, Schenectady; a trustee of Russell Sage
College, and the Schenectady Savings Bank, a director of the Van Curler

Hotel, and chairman of the Schenectady County Savings Bonds Committee, <feav*¥#•*>,'-*¥** Wfq**h#

T£@JG&™Q-^^

He is a member of Sigma Alpha Epsilon fraternity,

Rotary, Mohawk Clubhand Mohawk Golf Club. Wa&k-idbe-*«&^

Commenting on Mr. Lockboxes acceptance, Seereta^Humphrey wrote him:
,f

¥e at the/Treasury are delimited to learn of your

as Staj4 Chairman^ <m pfe Savings Bonds program ij/very important to us in
oury&Cforts to achieve and maintain a sound American dollar^aaXalso helps
in the eff icjfent management of the publ^b debt. I wish you every success
in your position as key volunteer for^fce Bond program in your State."

TBIASUN DEPARTMENT UBRABt

Treas.
HJ
10
.A13P4
v.101
Treas.
HJ
10
.A13P4

U.S. Treasury Dept.
Press Releases

S. TREASURY LIBRARY

.0031473

Full text of Press Releases of the United States Department of the Treasury : Volume 101

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