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D0>fWTMcNT LIBRARY

LIBRARY
JUN 1 4 1972
TREASURY DEPARTMENT

; reus.
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LIBRARY
ROOM 5030
JUN 141972
TREASURY DEPARTMENT

PJLUASK

MQraxm

wmmmms,

Tht tmamtf »®imriwiat «t»w©ed last twata* tfeat tlsst ttaftara fa* $1,500*000,
or toii^^bcmt®, of ^t-4®y tvaaaaqr bO!*s to b« tata* Jufttaf? & «»» td'amtur* i^ril 7,
19$k,
19$$9 Tahkah m m mitatad on Be©4^sr JO,/»wo ©sanest at th* Ftdafal E©^rf® Saab* oa
fhs dataila of this lawn® are as folios:
fatal «ppUM f«r - tff327,137,000 /4 t ^

tota . ^ i

• M o o f W f ooo

C ^ ^ f ^ i T ^ ^ ^ ^

full at taa avavaga prim ahwm balm)
kmmrmjga prima
- 99*13$ tqnlmlent rate mt dlmmmwat ^prm*
Itai® mt aacaptad aaapatittTa M^s
Bit*

l.Q&f par amas

**" ff*7M a^^valan* rrstt #£ aUaaoaata ag^roa* 1*003$ par mmm
- ft, fff
a
a a a
i A 0N0 per

I*ow
<37

of ti»

M t for at tt» low pri©^

Federal Rao*?!*

Mai

Total

District

Applied for

.sBfiESllSL

Boston
MwwDHrtc

Cleveland.
Atlanta
Chicago
3t# lioula
MlnrBapolIs
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Dallas
$&n Franaiaee

wfnt

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12,165,000
21,870,000
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2$,$$,®00
1,7^,000
)«»911,000
n,3Z!
§m9m®
20,972,000

2M39#00Q
§30,293,000
11,079*000
1*2,120,000

H,tfaVoaO
21,570,000
398,625,000
2S,6t*6,Qoo
8,7&UfOOO
36,821,000
23,aa^,cKK)
—jgjhttfOf*
•1,500,1*32,000

TREASURY DEPARTMENT
WASHINGTON, D.C
RELEASE MORNING NEWSPAPERS,
Tuesday, January 4, 1955.
• ii

»i

H-676

' ' • ' • ' '

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills>to be
dated January 6 and to mature April 7, 1955, which were offered on
December 30, 1954, were opened at the Federal Reserve Banks on
January 3.
The details of this issue are as follows:
Total applied for - $2,327,137,000
Total accepted
- 1,500,432,000 (includes $190,887,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.735 Equivalent rate of discount approx.
1.0k9fo per annum
Range of accepted competitive bids:
High - 99.747 Equivalent rate of discount approx.
1.001$ per annum
I^w,
- 99.727 Equivalent rate of discount approx.
1.080$ per annum
(37 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District
Applied for
Accepted
Boston $ 25,484,000 $ 24,539,000
8
New ?Srk
_ 1,603:223,000
??^o!'nnn
SSVladtlnhia
26,079,000
11,079,000

Cleveland
Richmond
At?^?a
nSlraco
St w i s
MinneaDoV' S
£^P£itv
TOTAL
Kansas City
axl
s
? ?;
.
San Francisco

42 245 000
:

12 165,000
21 870,000
429 334 000
28 646 000
8 764,000
39 921 000
$2,327,137,000
28 972 000
60 4 V 000
0O0
OU,^^H,UUW

42,110,000
11,665,000
21,570,000
398,625,000
28,646,000
8,764,000
38,821,000
$1,500,432,000
23,836,000
60,434,000
, ~>

2
ing of my time in recent years, due to the affiliation of more
branches..." ma^hank now has 44 branches in Oregon.
"Because of the compelling circumstances you cite, I have
no alternative but to ./accepts which I do with reluctance,
Secretary Humphrey replied.

"Please know that the Treasury

appreciates deeply fhe many years of diligent service you have
rendered our program."
Mr. Sammons proposed Mr. Gamble as his successor,

J B ^ ^ S B ^ M ^ r i a

mwmmnim

and pledg%f him "the continuing

support of our atate-wide banking organization."
In his letter appointing Mr. Gamble, Secretary Humphrey said
"We welcome your re-entry into the Savings Bonds field.... The
program reached its greatest dimensions during World War II when,
-, it never failed to achieve its huge wartime foals
under your leadership. Your dp-po4«4«ent • wi^r^hw^m^f^rcttfW^n
RHSWS

.nc
w a n t •*y#*i*Jtfi«Jfa^^

^.j^^a^ng jpu .j,gaia, ojau OTXcdham*hr&

manaMWiciHV^itTbA!^,

- 2 In his letter appointing Mr. Gamble, Secretary
Humphrey said:

We welcome your re-entry into the Savings

Bonds field.... The program reached Its greatest dimensions
during World War II when it never failed to achieve its huge
wartime goals under your leadership."
An independent motion picture theatre chain operator in
Oregon when the Defense Savings Staff of the Treasury was
organized in May, 1941, Ted R. Gamble became its state
administrator for Oregon. In November, 19^1, he was called
to Washington as a consultant and in May, 1942, was appointed
an assistant to the Secretary of the Treasury at a dollar a
year, assigned to expanding the savings bonds program.

Upon

the organization of the War Finance Division of the Treasury,
on June 3©, 1943, he was appointed national director, serving
until the end of 1945, after the Victory Loan. He is now
owner of radio and TV station KOIN, Portland.

H- & 7 /
Treasury Secretary Humphrey today announced the appointment of Theodore Roosevelt (Ted) Gamble of Portland as State
Chairman of the V. S. Savings Bonds Advisory Committee for
Oregon.
Mr. Gamble was national director of the Treasury's
Savings Bond program during World War II.
Mr. Gamble succeeds Edward C. Sammons, president of the
United States National Bank of Portland, Oregon, who had
served as state chairman since 1942. Mr. Sammons wrote
Secretary Humphrey asking to be relieved of the chairmanship
since "my banking responsibilities have become more and more
demanding of my time in recent years, due to the affiliation
of more branches..." His bank now has 44 branches in Oregon.
"Because of the compelling circumstances you cite, I have
no alternative but to accept your resignation, which I do with
reluctance," Secretary Humphrey replied.

"Please know that the

Treasury appreciates deeply the many years of diligent service
you have rendered our program."
Mr. Sammons proposed Mr. Gamble as his successor, and
pledged him "the continuing support of our state-wide banking
organization."

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Tuesday, January 4, 1955.

H-677

Treasury Secretary Humphrey today announced the appointment
of Theodore Roosevelt (Ted) Gamble of Portland as State Chairman
of the U. S. Savings Bonds Advisory Committee for Oregon.
Mr, Gamble was national director of the Treasury's Savings
Bondsprogram during World War II.
Mr. Gamble succeeds Edward C. Sammons, president of the
United States National Bank of Portland, Oregon, who had served
as state chairman since 1942. Mr. Sammons wrote Secretary
Humphrey asking to be relieved of the chairmanship since "my
banking responsibilities have become more and more demanding of
my time in recent years, due to the affiliation of more branches.. ,1'
His bank now has 44 branches in Oregon.
"Because of the compelling circumstances you cite, I have no
alternative but to accept your resignation, which I do with
reluctance," Secretary Humphrey replied, "Please know that the
Treasury appreciates deeply the many years of diligent service you
have rendered our program."
Mr. Sammons proposed Mr. Gamble as his successor, and pledged
him "the continuing support of our state-wide banking organization."
In his letter appointing Mr. Gamble, Secretary Humphrey said:
"We welcome your re-entry Into the Savings Bonds field.... The
program reached its greatest dimensions during World War II when
it never failed to achieve its huge wartime goals under your
leadership."
An independent motion picture theatre chain operator in
Oregon when the Defense Savings Staff of the Treasury was organized
in May, 1941, Ted R. Gamble became its state administrator for
Oregon, In November, 1941, he was called to Washington as a
consultant and in May, 19^2, was appointed an assistant to the
Secretary of the Treasury at a dollar a year, assigned to expanding the Savings Bonds program. Upon the organization of the War
Finance Division of the Treasury, on June 30, 19^3, he was
appointed national director, serving until the end of 1945, after
the Victory Loan. He is now owner of radio and TV station KOIN,
Portland.

oOo

7
i

fy\

,*A^

ftv*
/

FOR Kli.lMS]i. JAMUAKI ^^-fr-m?

f-V

t**

u
Treasury Secretary Humphrey today appointed Robert B. 3lyth, 49,
of Cleveland, Ohio, an Assistant to the Secretary.
Mr. Blyth will assist jgaiglBill W. Randolph Burgess, Under Secretary
for Monetary Affairs, in Treasury financing and debt management, to succeed
David M. Kennedy, who recently served in this capacity.
At the time of his appointment, Mr. Blyth was Vice President and
Senior Investment Officer of the National City Bank of Cleveland.
He has also been a member '/of- the
Governmental Securities Committee of the Investment Bankers Association.
which has been advising the Treasury on its program of financing.
Mr. Blyth began his banking career in September, 1929, as a security
analyst for the Union Trust Company of Cleveland. He went to the National
City Bank of Cleveland in July, 1933.
A native of Burlington, Wisconsin, he attended Oberlin College and
Harvard Graduate School of Business Administration. His home is in
Cleveland Heights, Ohio.

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Wednesday, January 5, 1955.

H-678

Treasury Secretary Humphrey today appointed
Robert B. Blyth, 49, of Cleveland, Ohio, an Assistant
to the Secretary.
Mr. Blyth will assist W. Randolph Burgess, Under
Secretary for Monetary Affairs, in Treasury financing
and debt management, to succeed David M. Kennedy, who
recently served In this capacity.
At the time of his appointment, Mr. Blyth was
Vice President and Senior Investment Officer of the
National City Bank of Cleveland. He has also been a
member of the Governmental Securities Committee of
the Investment Bankers Association, which has been
advising the Treasury on its program of financing.
Mr. Blyth began his banking career in September,
1929, as a security analyst for the Union Trust Company
of Cleveland. He went to the National City Bank of
Cleveland In July, 1933.
A native of Burlington, Wisconsin, he attended
Oberlin College and Harvard Graduate School of
Business Administration, His home is in Cleveland Heights,
Ohio.

0O0

- 3-

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 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 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•

- 2 -

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, 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 January 13, 19$$ , in cash or other immediately available funds
or in a like face amount of Treasury bills maturing January 13, 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 principa
or interest thereof by any State, or any of the possessions of the United States,

M&XfitXSXX
TREASURY DEPARTMENT
Washington

Q
/

FOR RELEASE, MORNING NEWSPAPERS,
Thursday, January 6, 1955
•
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 13. 1955 s

in the amoun t of

$1,500,014,000 , to be issued on a discount basis under competitive and non-

m—

competitive bidding as hereinafter provided. The bills of this series will be
dated January 13, 1955 , and will mature April 14, 1955 , when the face
amount will be payable without interest. They will be issued in bearer form o

and in denominations of $1,000, $5,0Q0, $10,000, $100,000, $500,000 and $1,000
(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 10, 19

Tenders will not be received at the Treasury Department, Washington. Each ten

must be for an even multiple of $1,000, and in the case of competitive tender
the price offered must be expressed on the basis of 100, with not more than
decimals, e. g., 99*92$. Fractions may not be used. It is urged that tenders

be made on the printed forms and forwarded In the special envelopes which wi
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 d
in investment securities. Tenders from others must be accompanied by payment

RELEASE MORNING NEWSPAPERS,
Thursday, January 6, 1955.

H-679

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 13, 1955,
in the amount of $1,500,014,000, 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 13, 1955*
and will mature April 14, 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 10, 1955Tenders 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 necurities. 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

- 2competitive bids. Settlement for accepted tenders In accordance
with the bids must be made-or completed at the Federal Reserve Ban!
on January 13, 1955, in cash or other immediately available funds
or In a like face amount of Treasury bills maturing January 13* IS
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 hav<
any exemption, as such, and loss from the sale or other dispositio
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 Federa
or State, but are exempt from all taxation now or hereafter impose
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. 418, 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.

IMMEDIATE RELEASE,
Friday, January 7, 1955

The Treasury Department announced today that on Tuesday, January 11*
the Secretary of the Treasury on behalf of the Federal National Mortgage
Association will offer for cash subscription $500 million of •*- «fc percent
notes of the Association to be dated January 20, 1955, and to mature ^ ^ . 2 . 0 , »•)<•!
As announced by the Association on December 30, 1954, the Treasury Department has agreed to handle this offering for the Association and it will
utilize the facilities of the Federal Reserve Banks, as Fiscal Agents of the
United States,in receiving subscriptions, making allotments, and delivering
securities allotted in much the same manner as public debt offerings are
handled.
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 December 31, 1954* On all other subscriptions a payment
of 10 per cent of the amount of notes subscribed for must be made, not subject
to withdrawal until after allotment*
Although payment by Treasury Tax and Loan Account credit will not be
permitted, arrangements have been made between the Association and the Treasury
whereby the Treasury will deposit with qualified banks, upon request, amounts
equal to notes allotted to such banks for themselves and their customers. This
is the same procedure followed last November in connection with the sale of
Commodity Credit Corporation certificates of interest.
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 per cent 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.

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Friday, January 7, 1955.

H-630

The Treasury Department announced today that on Tuesday,
January 11, the Secretary of the Treasury on behalf of the Federal
National Mortgage Association villi offer for cash subscription
$500 million of 2-1/2 percent notes of the Association to be dated
January 20, 1955, and to mature January 20, 1958.
As announced by the Association on December 30, 195^, the
Treasury Department has agreed to handle this offering for the
Association and it will utilize the facilities of the Federal
Reserve Banks, as Fiscal Agents of the United States, in receiving
subscriptions, making allotments, and delivering securities allotted
in much the same manner as public debt offerings are handled.
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 December 31, 1954. On all other subscriptions a payment of
10 per cent of the amount of notes subscribed for must be made,
not subject to withdrawal until after allotment.
Although payment by Treasury Tax and Loan Account credit will
not be permitted, arrangements have been made between the
Association and the Treasury whereby the Treasury will deposit with
qualified banks, upon request, amounts equal to notes allotted to
such banks for themselves and their customers. This is the same
procedure followed last November in connection with the sale of
Commodity Credit Corporation certificates of interest.
Commercial banks and other lenders are requested to refrain
from making unsecured leans or loans collateralized in whole or in
part by the notes subscribed for, to cover the 10 per cent 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.

oOo

iELTiASE IfORKBIG MfSPAFEHS,

th* Tmmmry

mpmttmnt

/ '/

mmmmad

(y () 1

last •vwdag tfetat tl* t o a d m far gl, 500,000,000,

or tbf*»*lN«t», of gL-dqr ttawWT MHs§ to b# dattd Jaiaaary 13 and to mafaxrm April 34,
105$, Khieh mm ®itamd m Jaimary 6, mm t*u»d at tte Fataral mmrv® Baxdw on
January 10.
Trie details of this ismxe «r© a$ folXowit
Total applied for - $2,355,730,000
total mmph®&
~ 1,500,300,000

(iaolsfea *227,68t,O00 entered on
a mmmpatitir®
basis and accepted in
thXL at ma marmm prtMm ® h o m boliwr)
Ammm
prim
~ 99.69V Equivalent rata at dlmmmmt approx. 1*229 per annua
Range of accepted, eoaprtitit* bids:
Hlrfj * 99.T65 l^&ivalBist rata at dim&mt approx. 0.930i par annua
w
io»
. 99.6®k
« •
#
*
1*250^

(49 pariMMat of tit® mount hiM tor at the low price was mmmptad)

Fadmral mmrm

total

total
Accepted

Bistriet
«r.*ii>.iiailMMM..M»..1|'i i m i... n . » » » » » > «

Boston
Mam lark
ffeiladslphia
Cl®v@laiad
EichaoDKrl

Atlanta
Chic&go
St. tmla
Miw®ap®Ms
K®mm City
Dallas
•San Wramaijtma
TOfAX.

31,363,000
1,716,811,000
32,275,000
415,808,000
17,238,000
32,0U*,000
220,79k,000
39,319,000
16,767,000
67 ,!• 31,000
$1,073,010

Jpj.?6L^
12,355,730,000

31,363,000
920,011,000
25,275,000
1*5,803,000
17,238,000
32,01li,000
lda>26kf000
39,319,000
16,787,000
66,1*61,000
U7,073,030
7l*,6d7,O00

$1,500,300,000

TREASURY DEPARTMENT

WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, January 11, 1955 *

H-681

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated January 13 and to mature April 14, 1955, which were offered on
January 6, were opened at the Federal Reserve Banks on January 10.
The details of this issue are as follows:
Total applied for - $2,355,730,000
Total accepted
- 1,500,300,000

(includes $227,682,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price - 99.691/ Equivalent rate of discount approx.
1.222$ per annum
Range of accepted competitive bids:
High - 99.765 Equivalent rate of discount approx.
0.930$ per annum
Low
- 99.684 Equivalent rate of discount approx.
1.250$ per annum
(49 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District
Applied for

Accepted

Bos

ton $ 31,363,000 $ 31,363,000
New York
1,716,811,000
Philadelphia
32,275,000
Cleveland
45,808,000
Richmond
17,238,000
Atlanta
32,014,000
Chicago
220,794,000
St. Louis
39,319,000
Minneapolis
16,787,000
Kansas City
67,481,000
Dallas
57,073,000
San Francisco
78,767,000
TOTAL $2,355,730,000 $1,500,300,000
0O0

930,011,000
25,275,000
45,808,000
17,238,000
32,014,000
184,264,000
39,319,000
16,787,000
66,461,000
47,073,000
74,687,000

IMMSDIATK RKLEASt,
Tuesday, January H , 1955*

"J-*"

{

The Treasury Bepartment announced today the closing of the subscription books for the current offering of 2-1/2 percent three-year
Federal Rational Mortgage Association notes, at the close of business
today.
Subscriptions addressed to a Federal Reserve Bank or Branch, or
to the Treasurer of the United States, Washington, IU C , and placed
in the mail before midnight tonight, January 11, will be considered
as having been entered before the close of the subscription books.
Announcement of the amount of subscriptions and the basis of
allotment will probably be made on Friday, January ll*.

& -

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Tuesday, January 11, 1955.

H-682

The Treasury Department announced today the
closing of the subscription books for the current
offering of 2-1/2 percent three-year Federal National
Mortgage Association notes, at the close of business
today.
Subscriptions addressed to a Federal Reserve
Bank or Branch, or to the Treasurer of the United States,
Washington, D. C , and placed in the mail before midnight tonight, January II, will be considered as having
been entered before the close of the subscription books.
Announcement of the amount of subscriptions and
the basis of allotment will probably be made on Friday,
January 14.

oOo

- 3-

mm.
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 k$k (b) and 1221 {$) of the Internal Revenue Code of
195-4 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. hl6, 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*

- 2 MEB&
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, noncompetitive tenders for $200,000 or less
without stated price from any one bidder will be accepted in full at the average
price (in three decimals) of accepted competitive bids. Settlement for accepted
tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on January 20. 1955 > in cash or other immediately available funds
or in a like face amount of Treasury bills maturing January 20, 1955 Cash
and exchange tenders will receive equal treatment. Cash adjustments will be made
for differences between the par value of maturing bills accepted in exchange and
the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the
sale or other disposition of the bills, does not have any exemption, as such, and
loss from the sale or other disposition of Treasury bills does not have any
special treatment, as such, under the Internal Revenue Code of 19$k. 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,

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS, Aw _ j' [ -3
Thursday, January 13, 1955
•

y° U

—/

m
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 20, 1955 »

in the

amount of

$ 1,500.256.000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided.

The bills of this series will be

dated January 20. 1955 , and will mature April 21. 1955 , when the face
$&x
xxx
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 17T 1955 ._*
Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99*92$. 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 payment of

RELEASE MORNING NEWSPAPERS,
Thursday, January 13, 1955.

H-683

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 20, 1955,
In the amount of $1,500,256,000, 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 20, 1955,
and will mature April 21, 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 17, 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 v/ill 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 th
Federal Reserve Banks and Branches, following which public announcement villi 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 tender,
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 accept.-.--i

- 2competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on January 20, 1955, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing January 20, 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 Gode 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.

*» 2 *•

Oonsiieration will be given: to any relevant data, views,
or argtraeats pertaining to the correct tariff classification
of this merchandise which are submitted in writing to the
Btareau of Customs, Washington 25, B . C , not later than 3 0
days from the date of publication of this notice.

In view of

the necessity for a prtaapt disposition of this question, no
consideration can be given to any eoisremications received in
the Bureau after the expiration of the 3$~day period*

M©

hearings will be held*

(3igned) !AU»f! mLT
RALPH KEL>jy[
Commissioner of Customs

C y

DEPARTMENT OF THE TRfiASURX
BUREAU OF CUSTOMS

mi2m^
/*426*&427
TARIFF CLASSIFICATION
Notice of prospective classification of watch movements specially
constructed to be up jeweled after importation.
It appears probable that imported watch Movements specially
constructed to be upjeweled after importation, such as, but not
limited to, those incorporating the so-called «Due-FixK feature,
or employing metal end caps designed to be replaced by jewels, or
utilizing other similar devices, are properly classifiable as
movements containing substitutes for jewels within the meaning of
paragraph 367(i), Tariff Aet of 1930, and are subject to duty and
marking accordingly*

Under this view a movement containing, for

example, 15 jewels and, in addition thereto, 2 Duo-Fix units having 1 jewel and 1 cap each would be dutiable as a movement having
more than 1? jewels, and would be required to be marked 19 jewels
or, optionally, IT jewels and 2 substitutes for jewels*
pursuant to section l6.10a(d) of the Customs Regulations (19
CFE 16* 10a(d)), notice is hereby given that the classification of
watch movements specially constructed for upjeweling as containing
substitutes for jewels within the meaning of paragraph 36? (i) of
the tariff act is under consideration in the Bureau of Customs*
Under the existing uniform practice, such watch movements have not
been so classified*

There is not in contemplation an administra-

tive review of the question decided in the case of the Bulova
Watch Co* v* United States, T* D* 46494, 21 C.C.P.A* 156, whether
"bouchons" or "bushings" in so-called conventional watch movements
of the kind involved in that case are substitutes for jewels*

SL.

/ W S\r*f
P

-. 'IE*4 '

The Bureau of Customs ***oy filed with the Federal
A

Register, for official publication, notice that it is considering a change In the classification of certain watch
movements (trade name for all parts of a watch except the
case) for the fixing of import duties.
The proposed change would affect imported movements
specially constructed for so-called Mupjeweling."

Some of

these use a so-called Mduo-fixw feature, or metal end caps,
designed to facilitate the insertion of additional jewels
after importation.

Under thetfulebeing considered such

movements would be treated as containing substitutes for
jewels, which under the Tariff Act would count as jewels for
marking and duty purposes.
The Customs Bureau will give consideration to any
relevant data, views or arguments on the matter submitted
to it in writing within 30 days.
The text of the official notice follows;

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE AM NEWSPAPERS,
Thursday, January 13, 1955.
The Bureau of Customs on Wednesday filed with the Federal
Register, for official publication, notice that it is considering a change in the classification of certain watch movements
(trade name for all parts of a watch except the case) for the
fixing of import duties.
The proposed change would affect imported movements specially
constructed for so-called "upjeweling." Some of these use a
so-called "Duo-Fix" feature, or metal end caps, designed to
facilitate the insertion of additional jewels after importation.
Under the rule being considered such movements would be treated
as containing substitutes for jewels, which under the Tariff Act
would count as jewels for marking and duty purposes.
The Customs Bureau will give consideration to any relevant
data, views or arguments on the matter submitted to it in
writing within 30 days.
The text of the official notice follows:
DEPARTMENT OF THE TREASURY
BUREAU OF CUSTOMS
January 12, 1955

^126.8437
TARIFF CLASSIFICATION
Notice of prospective classification of watch movements specially
constructed to be upjeweled after importation.
It appears probable that imported watch movements specially
constructed to be upjeweled after importation, such as, but not
limited to, those incorporating the so-called "Duo-Fix" feature,
or employing metal end caps designed to be replaced by jewels, or
utilizing other similar devices, are properly classifiable as
movements containing substitutes for jewels within the meaning of
paragraph 367 (i), Tariff Act of 1930, and are subject to duty and
marking accordingly. Under this view a movement containing, for
example, 15 jewels and,in addition thereto,2 Duo-Fix units having
1 jewel and 1 cap each would be dutiable as a movement having more
than 17 jewels, and would be required to be marked 19 jewels or,
optionally, 17 jewels and 2 substitutes for jewels.

O "7

- 2 Pursuant to section l6.10a(d) of the Customs Regulations (19
CFR l6.I0a(d)), notice is hereby given that the classification of
watch movements specially constructed for upjeweling as containing
substitutes for jewels within the meaning of paragraph 367(i) of
the tariff act is under consideration in the Bureau of Customs.
Under the existing uniform practice, such watch movements have not
been so classified. There is not in contemplation an administrative review of the question decided in the case of the Bulova
Watch Co. v. United States, T.D. 46494, 21 C.C.P.A. 15o~
whether "bouchonsu or ''bushings" in so-called conventional
watch movements of the kind involved in that case are substitutes
for jewels.
Consideration will be given to any relevant data, views, or
arguments pertaining to the correct tariff classification of
this merchandise which are submitted in writing to the Bureau
of Customs, Washington 25, D^ C , not later than 30 days from
the date of publication of this notice. In view of the necessity
for a prompt disposition of this question, no consideration can
be given to any communications received in the Bureau after the
expiration of the 30-day period. No hearings will be held.
(Signed) RALPH KELLY
RALPH KELLY
Commissioner of Customs

oOo

- 2 -

Unit
:
©f
:Imports as of
Quantity:Dec. 31» 19$k

Commodity
Peanuts, whether shelled, not
shelled, blanched, salted,
prepared, or preserved (including roasted peanuts, but 12 months from
not including peanut butter), July 1, 19$k
Peanut Oil

12 months from
July 1, 1924

1,709,000 Pound
80,000,000 Pound

Quota Filled

5,592,909

Barley, hulled, unhulled, rolled,
and ground, and barley malt... 12 months from
Oct. 1, 19$k
Canada
Other Countries

27,225,000 Bushel
275,000 Bushel

8,412,932

5,635 *

Oats, hulled and unhulled, and
unhulled ground
12 months from
Oct. 1, 1954
Canada 39,312,000 Bushel
Other Countries

688,000 Bushel

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

* Imports through January 11, 1955*

6,540,167
439,299 *
Quota Filled

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Thursday, January 13*1955*

H-685

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 December 31, 1954, inclusive, as follows:

Commodity

Period and Quantity

: Unit
;
: of
: Imports as of
:Quantity: Dee. 31» 195k

3,000,000 Gallon

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

51,513

Cream Calendar Year

1,500,000 Gallon

825

Butter Nov. 1, 1954-

50,000,000 Pound

134,117

Mar.

31, 1955

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

33,950,386 Pound

Quota Filled

12 months from 150,000,000 Pound
Sept. 15, 1954 329,100,000 Pound

33,723,800
4,406,526

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

4,268

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

5,792

120,000 Head

Walnuts Calendar Year

5,000,000 Pound

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

5,000,000 Pound

Quota Filled

356,709

Filberts, shelled (whether or not
blanched)
12 months from
6,000,000 Pound
Oct. 1, 1954

1,709,166

.Alsike clover seed 12 months from
July 1, 1954

Quota Filled

1,500,000 Pound
(Continued)

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Thursday, January 13»1955.

H-685

Commodity
___

:
:
:

Period and Quantity

: Unit
;
: of
: Imports as of
:Quantity: Dec. 31» 1954

Whole milk, fresh or sour Calendar Year 3,000,000 Gallon 5l,5l3
Cream Calendar Year 1,500,000 Gallon 825
Butter Nov. 1, 1954- 50,000,000 Pound 134,117
Mar. 31, 1955
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

33,723,800
4,406,526

Cattle, less than 200 lbs. each. 12 months from 200,000 Head 4,268
April 1, 1954
Cattle, 700 lbs. or more each... Oct. 1, 1954- 120,000 Head 5,792
(other than dairy cows)
Dec. 31, 1954
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

356,709

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

6,000,000 Pound

1,709,166

Alsike clover seed 12 months from
July 1, 1954

1,500,000 Pound
(Continued)

Quota Filled

. 2 -

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

: Unit
:
j of
slmports as of
:Quantity:Dec. 31. 1951^

1,709,000 Pound

Quota Filled

Peanut Oil 12 months from
July 1, 1954

80,000,000 Pound 5,592,909

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

27,225,000 Bushel
275,000 Bushel

8,412,932
5,635*

688,000 Bushel

6,540,167
439,299«

Oats, hulled and unhulled, and
unhulled ground
12 months from
Oct. 1, 1954
Canada 39,312,000 Bushel
Other buntries

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

* Imports through January 11, 1955.

Quota Filled

TREASURY DEPARTMENT
WASHINGTON
IMMEDIATE RELEASE,
Thursday, January 13, 195^.

H-686

The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour authorized to be entered, or withdrawn
from warehouse, for consumption under the import quotas established in the
President's proclamation of May 28, 194l, as modified by the president's
proclamation of April 13, 1942, for the 12 months commencing May 29, 1954*
as followst

•

1
Wheat
Country

$heat flourj semolina,
crushed or cracked
wheat, and similar'
wheat products

of
Origin

* Established :
Imports
- Established :
Imports
Quota
: May 29, 19ft,
Quota
iMay 29, 1954, to :
* to J a n . n , IQ<
: January 11, 1955 '•
0
(Pounds)
(Pounds)
(Bushels)
(Bushels)

Canada
China
Hungary
Hong Kong
Japan
United Kingdom
Australia
Germany
Syria
New Zealand
Chile
Netherlands
Argentina
Italy
Cuba^
France
Greece
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
Guatemala
Brazil
Union of Soviet
Socialist Republic*3
Belgium

795,000
-

100

795,000
mm

-m
_
_

—

100
100

—
—

100
2,000

100

1,000
—

100
—
—
—
—.
_,

3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

1,000

100
100
100

100

"
mm
mm

_
_
_

3,815,000

70
5,000

2,000

"*
"
**
—
—
—
-

TREASURY DEPARTMENT
WASHINGTON

IMMEDIATE RELEASE,
Thursday, January l,^r 1955.

H-686

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

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

Established :
Imports
Quota
kEay 29, 1954, to
: January 11, 1955
(Bushels)
(Bushels)
795,000

100
100
100

100
2,000
100
1,000
100

1,000
100
100
100
100

Established
Quota

Imports

May 29, 1954*
to

(Pounds)
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

A&UJ1JL>-J3$$
(Pounds)
3,815,000

5,ooo

2,000

•11

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Thursday. January 13, 1955.

H-687

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 December 31, 1954, inclusive, as follows:

Products of the
Philippines

Buttons

Established Quota
Quantity

850,000

: Unit
:' of
:Quantity

Gross

:' Imports as of
:December 31, 1954

776,036

Cigars

200,000,000

Number

Coconut Oil ......

448,000,000

Pound

135,567,426

Cordage

6,000,000

Pound

2,598,051

Rice

1,040,000

Pound

1,904,000,000

Pound

(Refined ..
Sugars
(Unrefined
Tobacco •. •..

3,561,101

9,386,760
1,891,822,137
6,500,000

Pound

1,361,738

TREASURY DEPARTMENT
Washington

H
IMMEDIATE RELEASE,
Thursday, January 13, 1955.

H-687

Products of the
Philippines

:Established Quota
:
Quantity

Buttons

850,000

Imports as of
December 31, 1954

Gross

776,036

Cigars 200,000,000 Number

3,561,101

Coconut Oil 448,000,000 Pound

135,567,426

Cordage 6,000,000 Pound

2,598,051

Rice 1,040,000 Pound
(Refined
Sugars
(Unrefined
Tobacco 6,500,000 Pound

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

Pound
1,891,822,137
1,361,738

««i2—

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-countries.; United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italys
Established
TOTAL QUOTA

Country of Origin
United Kingdom
Canada . . . .
France . . . 0 0 0
British India
Netherlands © o e
Switzerland
Belgium .
«apan . <> . . « .
0

unina o o e o » o
Egypt
0 0 0 0 0 0
o
Cuba
Germany o
Italy
0

•

o
o

o
0

,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

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

Total Imports
Sept. 20, 1954, to
January 11 T 1955
695,760
30,202

Established
33-1/3$ of
Total Quota
1,441,152
75,807

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

25,443
2^088.

Imports
Sept. 20, 19 £4
to Jan. 11. 19
695,760

IMMEDIATE RELEASE,
Thursday. January 13, 1955.

TREASURY DEPARTMENT
Washington

H-688
Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by-the Pre-sideat'-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, 1954. to January 11, 1955, inclusive?
Country

Established Quota

Egypt and the AngloEgyptian Sudan . .
f8 m

o e o a .-- « o o

British India

....

Mexico .......
JjraZlJ.

o a

Union of Soviet
Socialist Republics
Argentina . . . . . .
JTiaiuX

Ecuador . . • • . . •

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

Imports

5,931
20,355
1,131,307
618,723
1,300

Established Quota

Country of Origin
Honduras ..... .
Paraguay ......
t
Colombia . . . . . „ .
H

&£\ 0 0 0 0 0 0 0 0

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

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^. To December 31, 1954

Cotton 1-1/8" or •more, but less than 1-11/16"
Imports Feb. 1, 1954. to January 11, 1955

Imports

Established Quota (Global) Imports

2,194,769

1*5,656,420 39,177,566

Imports
_

124
_
_
-

«„

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Thursday, January 13, 1955.

H-688
Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the President'^-Proclamation of September 5, 1939, as amended
COTTON (other than linters) (in pounds)
Cotton under l-i/8 Inches other than rough or harsh under 3/4"
. Imports Sept. 20, 1954T~to January 11, 1955, 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
O

O O • • O

• OOOOQOOO
OOOOOOOO

• 00C0004

•

9OO0OOOO0

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 ....
Paraguay .
Colombia
Iraq . . oo*ooo a
British East Africa
Netherlands E. Indies.
Barbados . . . . . . .
l/Other British W. Indies
Nigeria
2/0ther British W. Africa
jj/Other French Africa . .
Algeria and Tunisia e
9

5,931
20,355

Established Quota

• O 9 O O 9 9

9 9

1,131,307
613,723
1,300

752
871
124
195
2,240
71,388

Imports

124

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, 1%4. To December 31, 1954

Cotton 1-1/8" or more, but less than 1-11/16"
Imports Feb. 1. 1954. to January 11, 1955

Established Quota (Global) Imports

70,000,000 2,194,769

45,656,420 39,177,566
CO

-2—

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

Country of Origin

United Kingdom
Canada . . . .
France . . . .
British India .
Netherlands . «
Switzerland . ,
Belgium . . . «
Japan • • . • .
China O O 9 9 9 9
Egypt .
Cuba . ,
Germany
Italy .

Established
TOTAL QUOTA

Total Imports
Sept. 20, 1954, to
January 11. 1955

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

695,760
30,202

5,482,509

776,568

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, 19 54
to Jan. 11. 1955
695,760

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

6,627

25,443
7,088
1,599,886

6,527
702,387

W+fruH-ft-ft *«•.«? 12, Iff?,

fUe ftMMMQr ft******* w m N i toft* *^* pt^taUwr"
repels i?ec#lT#i fiam that fete*®! I
to %&• Mfifc mta 1mm

Sank* cm friNtftptUlMi

indicate & pmamhla aXtetmmt la th*

m&0toamhmd at 15 p«r*«rt«
mhmm*

N M M

SLMI

<!«»••• UM3.«ftim l*i# maM

will 1©% ha maAlahl* until M « * r , amd 1% i« axpama%r

th®& the ammlm at allmtmaat miXl W amn0a»cei frittf ***<

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Wednesday, January 12, 1955.

H-689

The Treasury Department announced today
that preliminary reports received from the
Federal Reserve Banks on subscriptions to the
FNMA note issue indicate a probable allotment
In the neighborhood of 15 percent.

Final

figures, including late mail returns, will not
be available until Friday, and It is expected
that the basis of allotment will be announced
Friday afternoon.

0O0

c\ \7 rM 9 l-1
11

e-s

STATUTORY DEBT LIMITATION
A~ nF December 31, 1954

°F
Washington, JlHBfflOT-. 1 . 4 * M 5 5
Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under J ^ ™ *
of that Act, and the face amount of obligations guaranteed as to principal and interest by the United States (except sucnguatanteed obligations as may be held by the Secretary of the Treasury), "shallnot exceed in the aggregate *275>000,UUU^
(Act of June 26, 1946; U.S.C.. title 31, sec. 757b), outstanding at any one time. For purposes of this sectioc' *~ c £ r e " «
aemption value of any obligation issued on a discount basis which ^redeemable prior to ™<urity a: the option of the holder
shall be considered as its face amount." The Act of August 28, 1954, (P.L. 68643rd Congwa- L P ' S m ^ V a U beTemiorarilv
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 , 505,955,000
Certificates of indebtedness
Treasury notes..
BondsTreasury
1
Savings (current redemp. value)

28,457,862,000
32,580,840,500

„
1%
80,544,657,300

81,750,042,900
57»bfl,9^*9»b4y

";::r;;z:::::::::::: laXffiffi 153,535,301.0*9
Special FundsCertificates of indebtedness
Treasury notes
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:
I„,e,na.4 Urn**, Fund serie

. .
9,101,480,000
13,464,766,400

,.rr~\,r\.*n
k2, g66, 246,400
275,646 204, 7 ^
*-\J%
»*- »< -£.
QQg K ? 8 "346
JJ^iJ'- 1 *>

48,057,075
1,10(,U4x
1,528,000.000

ToMl

Guaranteed obligations (not held by Treasury):
Interest-bearing:
'
Debentures: F.H.A
32,986,93o
Matured, interest-ceased
955,250
Grand total outstanding
Balance face amount of obligations issuable under above authority

t
1,577,224,116
278,221,957,211

33,9^2,186

Reconcilement with Statement of the Public Debt.....„I?.9.?,..^.„A......rf.5...
(Date)
(Daily Statement of the United States Treasury
.?.f°.:....3±*...r.95!f.
,.
(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

278 , 2pp, 899 , 397
2,744,100,003

;

)

278 , 7^9,814,391
3 3 ,"42,loD
^ 1 ° , r°3» \0^>0\ '
|?27 ,857,-i8U

278,255,899,397
H-690

STATUTORY DEBT

LIMITATION

AS OF.± , .?^B^£.JL... 1 95^

Washington, JS5^^....l.4j|Jk955
Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under authority
of that Act, and the face amount of obligations guaranteed as to principal and interest by the United States (except such guar*
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 re:
J
J:
demption value of any obli
""* k^ 0 ' 0 •"V.!"'* •'" r»^l««.«,«ut- «,:«. .
».._:.... _» »i
» : — ~t » L . L _ U _ .
shall be considered as its
period beginning on A u g u s
increased by $6,000,000,000.
T h e following table s h o w s the face amount of obligations outstanding and the face amount which can still be issued under
this limitation;
Total face amount that m a y be outstanding at any one time
$ 2 8 1 0 0 00 0 0 0 0 0
OutstandingObligations issued under Second Liberty Bond Act, as a m e n d e d
Interest-bearing:
Treasury bills $19 , 505,955,000
Certificates of indebtedness..,.,.,....,....
Treasury notes
BondsTreasury
.,
' Savings (current redemp. value) ........
Depositary..............
Investment series
Special FundsCertificates of indebtedness ..............
Treasury notes.
Total interest-bearing.
Matured, interest-ceased
Bearing no interest:
United States Savings Stamps....
Excess profits tax refund bonds
,
Special notes of the United States:
Internal Monetary Fund series............
Total

28,457,8)62,000
32. 580.840. "500
81,750,042,900
57,671,9^9»649
k^2, 76l, 500
12,680,5^7,000
29,101,480,000
13,464,766,400

$ 8 0 , 544, 657,300

152,535,301.049

42,566,246,400
2/^,646,204,(49
998 , 528 , 34b

48 ,057 »075
•!•»-l-O I , 04J.
1,528,000,000

1, 577 , 224, ll6
278,221,957,211

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A
32,986,936
Matured, interest-ceased
955.250
Grand total outstanding
Balance face amount of obligations issuable under above authority

33,942,186

Reconcilement with Statement of the Public Debt .....?®.S.T...^!r..».......?.2...
(Date)
(Daily Statement of the United States Treasury
.?.?.$.:...;3;7..^...7.rf.rf.7.
..

278 , 255,899 > 397
2, (44,100,OO3

;

)

(Data)

OutstandingTotal gross public debt
Guaranteed obligations not o w n e d by the Treasury...
Total gross public debt and guaranteed obligations..
Deduct - other outstanding public debt obligations not subject to debt limitation

278 , 749 , 8l4, 391
J J *D ~-*~~^
2fo, (o^t (O^tjl I
Q2[ ,o^f , l o U

278,255,S99,397
H-690

M E D I A T E RELEA££,
Friday, January lit, 1955.

H-l

the Treasury today announced a Ik percent allotment on subscriptions for sore than #50,000 for the current cash offering
of 2-1/2 percent Federal National Mortgage Association notes.
None of these subscriptions will be allotted less than #50,000,
and subscriptions for #50,000 and less will be allotted in full.
rnpnrtn TCTD I in ml frnr tin r Mi i ITTTPTT IT • P°*-^n ^hffliT thnt-saagrtpl'iJhii 4.*t.i1 iffTTiTtv ftTT^ U1JM?JAUU«. Details by Federal
Reserve Districts as to subscriptions and allotments will be
announced when final reports are received from the Federal Reserve Banks.

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE.
Friday, January 14, 1955

H-691

The Treasury today announced a 14 percent
allotment on subscriptions for more than $50,000"
for the current cash offering of 2-1/2 percent
Federal National Mortgage Association notes.
None of these subscriptions will be allotted less
than $50,000, and subscriptions for $50,000 and
less will be allotted in full.
Details by Federal Reserve Districts as to
subscriptions and allotments will be announced
when final reports are received from the Federal
Reserve Banks,

oOo

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,

fJDuring the month of <*mmmm&r 195^,
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
$iiu/iiil|iBij)SjJlipiftt9,

?¥*, n< '6*

January 5» 1955
M O H M D u M Tp» MR. BarTBLTi

The following transactions were made In direct md guarantee
seomritle® of the Q o n m n t *«r Treasury investments and other
accounts ouring the month of December 1954s
fiirehasea

#42,156,0(^*00

^les

1.190.900*00
$40,965,100.00
C. £• Horxan

(l^<y diief, Investments Braaeh
Division of Deposits k favestiaen&a

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Monday, January 17, 1955.

H-692

During the month of December 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
$40,965,100.

oOo

ti-rfi
ammmmd

fha frmMBvsry

Umt am&m

« a ttib*tawtom far 31*500,000,009,

JT thmmahtm®, mi 9lHkqr tsaaawf- M31s %# t» aa&Nt ^aisaaiy ZQ amd U mm&mrn ApmU i^
1^5, «hieb wm ogtaraA on

^SMST

33# *••* afan*€ at tfe* FaiiamL Etsast® Baaiss <m

Jiua&af^ IY»
fhtt details of this isaoe are as follows:
t«tel applied for - ilUJ^faW^W
full at th» amrm^a price ah&m halm)
wemm
prim
- nMd&
?xprt«a**t rata mi dimmm

appnm* 1*10!% par aaaw

Snag® m ^c^yled s^^iiMve M4a; < jwa/tt** two tenters toUOlsg ttQOtOOD)
~ *9*6?? .^aiiml«iit mtm mt £Lmmm>
H
~ &.6I6
•
«
«

of the

appros:. 1 . 1 ^ par ana
ft
1*1121$ *
«

bid for «t the low

Mai
frtafrgict

Applied tarn

total
Accaoted

Boaton
H#r ttoffc

Wti^tQ^

-tttiifiOo©

Cl^velai^
Attt**a

W.O1O.000

SO»739»9*

3S?,MS*0CS0

15»,HCUW

mimm
at. umi*

12.218,(^0
tfthftfOOO

Kansas City
Dallas
San framtamm

W.O9T.O00

- • W°M
TCT4T

^WV^WO

«lt*»,56««089

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, January 18, 1955.

H-693

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated January 20 and to mature April 21, 1955, which were offered on
January 13, were opened at the Federal Reserve Banks on January 17.
The details of this issue are as follows:
Total applied for - $2,459,473,000
Total accepted
- 1,500,562,000

(includes $247,725,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.644/ Equivalent rate of discount approx.
1,407^ per annum
Range of accepted competitive bids: (Excepting two tenders
totaling $200,000)
- 99.697 Equivalent rate of discount approx.
High
1.199/5 per annum
Low
- 99.640 Equivalent rate of discount approx.
1.424)1? per annum
(41 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Eoston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

Total
Applied for
> 45,895,000
1,773,231,000
39,329,000
61,201,000
12,633,000
39,165,000
218,971,000
44,827,000
12,218,000
65,457,000
37,540,000
^2,459,473,000
109,006,000

0O0

Total
Accepted
42,010,000
944,114,000
23,739,000
59,201,000
12,633,000
36,165,000
153,201,000
43,763,000
12,216,000
47,097,000
29,360,000
$1,500,562,000
95,056,000

Mr. Burgess
U P . Overby
Mr. Rose
"Mr* I*ennartson^
Hr. Willis

<t*Nl

Secretary' s/Stateasent on trade

la revising the various draft statements on the trade- Agreements
Program for km House Ways anil M s a W Comsiittee, MT. Bandajt suggested.
the taUm&m
additional sentenoe for insertion at the and at para**
graph 19 psfee 2 of the Secretary* e statement!
Convertibility will be encouraged by a balaneed development
of world trade 5 and, in tarn, will contribute to amah a
development.

mm k •"

Reconstruction and Development*

The tmrpose of the corporation will

be to stimulate private investnsent in underdeveloped countries by providing venture capital through loans without government guarantees,
thus filling a need which is not being met by any existing organisation.
While all of these proposals are important, the keystone lj§~~th1TyV%
Reciprocal Trade Agreements le gisia tidhXrts enactment will show that
the United States is following a sound trade oolicy consistent with
both our domestic and our International needs.

-3 One proposed bill will continue the program of custoas siaiplifioatioa and management improvement initiated by the Customs Simplification
Acts of 19£3 and 19$k* Although the existing legislation In this field
has brought about substantial improvements in customs procedures and has
caused an appreciable decrease in the backlog of uncompleted customs
work, further improvements rooiaxn to be ef^ee%B>4»>.
The coasplex valuation provisions of the customs laws are in particular med of improvement and sijsplification* As a result of studies
now being completed legislative changes will be recommended to make the
process of appraisal more prompt and efficient as well as more realistic
and ecyoitable from a coinaerci&l standpoint* Again I find other countries
in nsany instances are about as much concerned with these questions of
customs as t*hey are about the level of tariffs.
In the field of taxation, we are smggesting that consideration again
he given to certain changes in the Revenue laws with respect to taxation
of income earned abroad. More particularly, we recomsiend that corporate
business Income from foreign subsidiaries or branches be taxed at a rate
1<4 percentage points lower than the rate on corporate dosses tie income*
and a deferral of tax on foreign branch income until it is removed from
the country where earned« hie will be prepared to discuss these tax proposals in more detail with your Committee at the-appropriate time. These
proposals are not large or costly out we think they will encourage sound
private 0. S. Investent abroad.
Another important part of the Administration1 s program on which the
Treasury is workiny is the proposal for an International Finance Corporation, to be established as an affiliate of the International Bank for

mZW&

GSL^w

i muma^n •!•» *•*&

• jt^ammaammmm

I. K

- 2 m

their financial houses in order not only to strengthen their internal
economies but also to keep their foreign payments and receipts in
b&laaee, I m encouraged by the progress isany at these nations have
made toward store internal stability and toward convertibility of their
currencies,
the second point which has Impressed se in ay contacts abroad is
the concern of foreign countries with the broad direction of our commercial policy*

Foreign countries do not expect us to lower our tariffs

drastically. What they want to have, however, is assurance of continuity
in our policies and they wateh for moderate steps in the direction of
our ©b-Jeetiveg. This argues strongly for a three-year extension of the
trade Agreements Program*

A three-year period is needed to provide

reasonable assurance of such continuity*
The bill before yon Is moderate. It does not interfere with existing safeguards for our domestic producers, It d^elTlsmrjmmiS^^~'
drastic changes which weuld adversely affeet si sable groups of our
citizens.
I would like to mention one other broad principle in connection
with the bill. from the budgetary viewpoint, the Presidents trade program should help to r^duM Government expenditures for foreign aid over
a period of time. I believe/fe#i^
way; than receive aid from the If. S. treasury, this bill is a further
step in that direetion.
the treasury Depar%aent Is actively working on other aspects of the
Presidents program to oromote foreign trade and investsaent. These proposals will be submitted 'to the "Congress shortly.

p/ferffoa^as-

~.o

MT. Chairman and Ambers of the Committee t
In my contacts over the past two years with foreign financial
official® I have been impressed with two uiajor principles In our
economic relations.
First, the importance of keeping our own economy strong and dynamic
and sound. Our policies are directed toward, eoonoiaic strength and
growth —

toward greater freedom from governmental interference and

eontrol. Our policies aim at encouraging initiative and freedom and
maintaining economic progress &r$l a high level of economic activity at
relatively stable prices. Such a condition helps international trade
in both directions. A strong internal economy helps to keep us competitive md makes our goods attractive to foreign buyers. It also
promotes a high level demand for imports. With high levels of business
activity, the capacity of our economy to absorb imports is enormous —
particularly imports of raw »atorials.

(Tnn nty wl nh-lKj itflpftrh-frow

Maintaining the strength and value of the United States dollar is
~a vital part of our contribution to international monetary stability —
for the United States dollar is the yardstick for all of the currencies
of the free world.

The free world«s vigorous economic growth must rest-

on a sound financial basis. What is essential for our own strength at
home is equally essential for the other free nations of the world. Many
countries, I am glad to say, are appreciating the ijaportance of keeping

£1

TREASURY DEPARTMENT
Washington
For,
Jtagj
Statement by Treasury Secretary Humphrey before
House Ways and Means Committee on the Trade1955
Agreements Program, Tuesday, Janaary IV,

L/
//-

TREASURY DEPARTMENT
Washington

Statement by Treasury Secretary Humphrey
before House Ways and Means Committee
on the Trade Agreements Program,
Tuesday, January 18, 1955
Mr. Chairman and Members of the Committee:
In my contacts over the past two years with foreign financial
officials I have been impressed with two major principles in our
economic relations.
First, the-importance of keeping our own economy strong and
dynamic and sound. Our policies are directed toward economic
strength and growth — toward greater freedom from governmental
interference and control. Our policies aim at encouraging
initiative and freedom and maintaining economic progress and a high
level of economic activity at relatively stable prices. Such a
condition helps international trade in both directions. A strong
internal economy helps to keep us competitive and makes our goods
attractive to foreign buyers. It also promotes a high level
demand for imports. With high levels ox1 business activity, the
capacity of our economy to absorb imports Is enormous -particularly imports of raw materials.
Maintaining the strength and value of the United States
dollar is a vital part of our contribution to international
monetary stability — for the United States dollar is the yardstick for all of the currencies of the free world. The free
world's vigorous economic growth must rest on a sound financial
basis. What Is essential for our own strength at home is equally
essential for the other free nations of the world. Many countries,
I am glad to say, are appreciating the importance of keeping
their financial houses in order not only to strengthen their
internal economies but also to keep their foreign payments and
receipts in balance, I am encouraged by the progress many of
these^ nations have made toward more internal stability and toward
convertibility of their currencies.
Convertibility will be encouraged by a balanced development
of world trade; and, in turn, will contribute to such a
development.
H-694

- 2 The second point which has impressed me in my contacts
abroad is the concern of foreign countries with the broad
direction of our commercial policy. Foreign countries do not
expect us to lower our tariffs drastically. What they want to
have, however, is assurance of continuity in our policies and
they watch for moderate steps in the direction of our objectives.
This argues strongly for a three-year extension of the Trade
Agreements Program. A three-year period is needed to provide
reasonable assurance of such continuity.
The bill before you is moderate. It does not interfere with
existing safeguards for our domestic producers. It does not
contemplate any drastic changes which would adversely affect
sizable groups of our citizens.
I would like to mention one other broad principle in
connection with the bill. From the budgetary viewpoint, the
President's trade program should help to reduce Government expenditures for foreign aid over a period of time. I believe it is
best, where possible, for foreign countries to earn their way,
rather than receive aid from the U, S. Treasury. This bill is a
further step in that direction.
The Treasury Department is actively working on other aspects
of the President's program to promote foreign trade and investment. These proposals will be submitted to the Congress shortly.
One proposed bill will continue the program of customs
simplification and management Improvement initiated by the
Customs Simplification Acts of 1953 and 1954. Although the existing legislation in this field has brought about substantial
improvements in customs procedures and has caused an appreciable
decrease in the backlog of uncompleted customs work, further
improvements should be made.
The complex valuation provisions of the customs laws are in
particular need of improvement and simplification. As a result of
studies now being completed legislative changes will be recommended
to make the process of appraisal more prompt and efficient as well
as more realistic and equitable from a commercial standpoint.
Again I find other countries in many instances are about as much
concerned with these questions of customs as they are about the
level of tariffs.
In the field of taxation, we are suggesting that consideration
again be given to certain changes in the Revenue laws with respect
to taxation of Income earned abroad. More particularly, we
recommend that corporate business income from foreign subsidiaries
or branches be taxed at a.rate 14 percentage points lower than the
rate on corporate domestic income, and a deferral of tax on
foreign branch income until it is removed from the country where
earned.

- 3We will be prepared to discuss these tax proposals in more
detail with your Committee at the appropriate time. These
proposals are not large or costly but we think they will encourage
sound private U. S. investment abroad*
Another important part of the Administration's program on
which the Treasury is working is the proposal for an International
Finance Corporation, to be established as an affiliate of the
International Bank for Reconstruction and Development. The purpose
of the corporation will be to stimulate private investment in
underdeveloped countries by providing venture capital through
loans without government guarantees, thus filling a need which is
not being met by any existing organization,
While all of these proposals are important, the keystone is
the Reciprocal Trade Agreements legislation now before you. Its
enactment will show that the United States is following a sound
trade policy consistent with both our domestic and our international needs.

oOo

- 3-

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. 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 Branch.

- 2 -

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,

TREASURY DEPARTMENT
Washington

/ V

} ^j

*- (^ '""'

FOR RELEASE, MORNING NEWSPAPERS,
Thursday, January 20, 1955
•

xW
The Treasury Department, by this public notice, invites tenders for
$ 1.500.000.000 , or thereabouts, of 91 -day Treasury bills, for cash and

~~xM

in exchange for Treasury bills maturing

January 27, 1955

, in the amount of

$ 1.500.237.OOP , to be issued on a discount basis under competitive and nonxx3c
competitive bidding as hereinafter provided. The bills of this series will be
dated January 27. 1955 , and will mature April 28, 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 24, 1955 .»
Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99*92$. 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 payment of

TREASURY DEPARTMENT

^T3nA^rca\^vcssa»)ss»a;ssaEessniB3!«2£

WASHINGTON, D.C

RELEASE MORNING NEWSPAPERS,
Thursday, January 20, 1955-

H-695

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 27, 1955,
in the amount of $1,500,237,000, 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 27, 1955,
and will mature A p r i i 28, 1955, w h e n t h e f a c e a m o u n t w i n b e ,
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 24, 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
ursed 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 recognlzedValers 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.
TmmflfHal.plv after the closing hour, tenders will be opened at the

.ecierarRes^^BankranfB^nchef

fol owing which public announce-

final Subject to these reservations,

non com etit

?;^H^n^?13 ll

- 2 competitive bids. Settlement for accepted tenders In accordance
with the bids must be made or completed at the Federal Reserve Bank
on January 27, 1955, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing January 27, 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 H5k (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.

y ay
Wednesday, January 19, 1955-

•

the treasury ©apartment today announced the subscription and allot- •
sent figure® with respect to the eurrent sash offering of 2-1/2 percent
Federal Ifetional Ifcrtgage Association Hot®* of Series m-19$b-Ay^thaaf1*
notes will be dated Mammary 20, 19$$, *M will mtmra January 20, 19S8.
Subscriptions and alloinents were d^brided among the several Federal ^
Reserve Uistriets and the treasury as follows t
~J.U nJl'JL\

total
Subscriptions

District

t 135,122,000
993,216,000
157,631,000
181,483,000
166,747,000
131,615,000
600,505,000
111,236,000
12l*,505,OOO
135,122,000
177,112,000
571,616,000

Boston
Hew Tork
Philadelphia
Atlanta
Chicago
St. Iiouis
Kansas City
Dallas
San Francisco
treasury

.
tOfAS,

Allotments
U

22,270,

2*222
$570,389,000 ln€

The total amount of the allotment was large? than previously
anticipated because final reports received from Federal Reserve Banks
disclosed that a greater number of subscribers were entitled to the
150,000 minimum allotment than was estimated when the lk% allotment
basis was announced.

na.l

10,386,000
84,567,000

2*222

13,485,915,000

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Wednesday, January 19, 1955

H-696

The Treasury Department today announced the subscription and
allotment figures with respect to the current cash offering of
2-1/2 percent Federal National Mortgage Association Notes of
Series ML-1958-A, These notes will be dated January 20, 1955, and
will mature January 20, 1958,
Subscriptions and allotments were divided among the several
Federal Reserve Districts and the Treasury as follows:
Federal Reserve
District

Total
Subscriptions

Total
Allotments

$ 22,270,000
$
135,122,000
Boston
993,216,000
144,869,000
New York
157,631,000
26,462,000
Philadelphia
181,483,000
29,844,000
Cleveland
166,747,000'
28,504,000
Richmond
131,615,000
25,360,000
600,505,000
101,465,000
Atlanta
111,236,000
21,773,000
Chicago
124,505,000
28,302,000.
St. Louis
135,122,000
26,582,000
Minneapolis
177,112,000
30,386,000
571,616,000
84,567,000
Kansas City
5,000
5,000
Dallas
San Francisco
$570,389,000
$3,485,915,000
Treasury
TOTAL
The total amount of the allotment was larger than previously
anticipated because final reports received from Federal Reserve
Banks disclosed that a greater number of subscribers were entitled
to the $50,000 minimum allotment than was estimated when the 14fS
allotment basis was announced.
0O0

HELSASE HOaiHG M S S P A F E ^ ,
fnesday, January 2$, 1955.

the treasury Deparfes#at annonnoed 3ast evening that the tenders for .§1,500,000,000,
or thereabouts, of 91-day treasury bills to be dated January 27 and to mature April 28,
1955, wfeion were offered on January 20, were mpamd at the Federal Eeserve Banks on
January 24.
the details of this issue are as follows:
total applied for - |2,449,938,000
Total accepted
- 1,500,197,000 (include* $21*0,537,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
Average priee
- 99.^9 EtpivaLent rate of discount approx. 1 . 3 W per annua
iaage of accepted competitive bidst (Ixceptisg one tender of 1900,000)
High - 99*671 Equivalent rate of discount approx. 1.302$ per annua
low
- 99.657
•
• «
•
«
1.35?* *
(13 percent of the amount bid for at the low priee was accepted)
Federal leserve total total
District
Boston
Mew fork
PnUadelpaia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Bellas
San Francisco

total

Applied for

Accepted

f
28,666,000
1,711,382,000
41,680,000
58,219,000
14,126,000
29,315,000
307,44i,ooo
19,920,00®
13,875,000
53,393,000
41,026,000
130,895,000

#2,449,938,000

$1,500,197,000

26,666,000
949,1S6,000
2O,I|20,OQQ
53,229,000
14,026,000
;•?... 24,170,000
201,759,000
18,314,000
11,735,000
48,608,000
29,126,000
102,956,CK)0

TREASURY DEPARTMENT

£4

WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tue sday, January 25, 1955.

H-697

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated January 27 and to mature April 28, 1955, which were offered on
January 20, were opened at the Federal Reserve Banks on January 24.
The details of this issue are as follows:
Total applied for - $2,449,938,000
Total accepted
- 1,500,197,000 (includes $240,537,000
entered on a noncompetitive
basis and accepted in full
at the average average price
shown below)
Average price
- 99.659 Equivalent rate of discount approx.
1.349$ per annum
Range of accepted competitive bids: (Excepting one tender of
$900,000)
- 99.671 Equivalent rate of discount approx.
High
1.302$ per annum
Low
- 99.657 Equivalent rate of discount approx.
1.357$ per annum
(13 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
Applied for

TOTAL

$
28,666,000
1,711,382,000
41,680,000
58,219,000
14,126,000
29,315,000
307,441,000
19,920,000
13,875,000
53,393,000
41,026,000
$2,449,938,000
130,895,000

0O0

Total
Accepted
26,666,000
949,188,000
20,420,000
53,229,000
14,026,000
24,170,000
201,759,000
18,314,000
11,735,000
48,600,000
29,126,000
$1,500,197,000
102,956,000

yj?
/-

eMar3rr > HAj3&ffj^^
tjj^&HrSOJQ^^p., Q,h Jam. £47' ^55 — Treasury Secretary Humphrey today announced the appointment of Carl E. Hanson, president of the Bishop National
Bank of Honolulu, as territorial chairman of the Hawaii Savings Bonds Committee*
He succeeds the late George S. Waterhouse, who died last Christmas
Day while visiting in California, /^retired official of the Bishop Nationa^
^Bailie, Mr. Waterhouse (had served as Savings Bonds chairman for Hawaii since

1947.
Mr. Hanson is a native of Paso Robles, California, and a graduate
of the University of California. He worked for a short time with Standard
Oil Company of California, but has been with the Bishop National Bank in
various capacities since 1925* He was named president in 1951* Mr. Hanson's
other business connections include directorships in Bishop Co. Ltd., Alexander
& Baldwin Ltd., United General Finance Co. Ltd,, and Kauai Consolidated
Terminals Ltd.
The 52-year-old banker is active in civic affairs. He is a director
of the Honolulu Chamber of Commerce* a trustee in the Better Business Bureau.,
K
yf
H
Xa$pste9*~v&^^
e is married and has two children.
In notifying Mr. Hanson of his appointment to the chairmanship of
the Savings Bonds Committee for the Territory of Hawaii, Secretary Humphrey
wrote:

"It is with much pleasure that I appoint you to this position .....

the Treasury appreciates your enlistment in this work, which is of great
importance to us all, and we are happy to welcome you as the newest member
of the family."
# # #

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Monday, January 24, 1955 >

H-698

Treasury Secretary Humphrey today announced the appointment
of Carl E. Hanson, president of the Bishop National Bank of
Honolulu, as territorial chairman of the Hawaii Savings Bonds
Committee.
He succeeds the late George S. Waterhouse, who died last
Christmas Day while visiting ir California. Mr. Waterhouse, a
retired official of the Bishop National Bank, had served as
Savings Bonds chairman for Hawaii since 1947.
Mr. Hanson is a native of Paso Robles, California, and a
graduate of the University of California0 He worked for a short
time with Standard Oil Company of California, but has been with
the Bishop National Bank in various capacities since 1925. He
was named president in 1951. Mr. Hanson's other business
connections include directorships in Bishop Co, Ltd., Alexander &
Baldwin Ltd., United General Finance Co. Ltd., and Kauai
Consolidated Terminals Ltd.
The 52~year-old banker is active in civic affairs. He Is a
director of the Honolulu Chamber of Commerce and a trustee in the
Bettor Business Bureau, He is married and has two children.
In notifying Mr. Hanson of his appointment to the chairmanship of the Savings Bonds Committee for the Territory of Hawaii,
Secretary Humphrey wrote: "It is with much pleasure that I
appoint you to this position ..... the Treasury appreciates your
enlistment in this work, which is of great importance to us all,
and we are happy to welcome you as the newest member of the
family."
0O0

- 2 Mr. Kendall was in military service for four years during
World War II, in the U.S. Air Force. He was returned to
inactive duty in 1945 with the rank of major.
He was born in Indianapolis, Indiana, February 11, 1903.
He was graduated from Princeton University with the degree
of A.B. in 1924, and received his law degree from the
University of Michigan in 1931-

HTreasury Secretary Humphrey today administered the oath of
office to David W. Kendall as General Counsel of the Treasury
Department.
Mr. Kendall succeeds Elbert P. Tuttle, who resigned to
accept appointment as judge of the United States Circuit Court
of Appeals, Fifth Circuit. Mr. Kendall was nominated by President
Eisenhower on January 10, 1955, and was confirmed by the Senate
on January 24, 1955.
As the chief legal officer of the Treasury Department, the
General Counsel has supervision over and coordinates the work of
the Legal Division.

He is directly responsible to the Secretary

of the Treasury, and performs such additional duties as are
assigned by the Secretary or required by law.
Mr. Kendall is a resident of Jackson, Michigan, where he was
associated with the law firm of McKone, Badgley, Kendall & Domke.
He is a member of the American Bar Association, the State Bar
of Michigan, and The Barristers of Jackson County, Michigan.
He has served as President of the Board of Education of
Jackson, and as a member of the Jackson Veterans Housing
Administration.

He was instrumental in the founding of the

John George Home in Jackson, a philanthropic organization for
assistance to aged and retired persons.

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Wednesday, January 26, 1955.

H-699

Treasury Secretarjr Humphrey today administered the
oath of office to David W. Kendall as General Counsel of
the Treasury Department.
Mr. Kendall succeeds Elbert P. Tuttie, who resigned
to accept appointment as judge of the United States Circuit
Court of Appeals, Fifth Circuit. Mr. Kendall was nominated
by President Eisenhower on January 10, 1955, and was confirmed by the Senate on January 2k, 1955.
As the chief legal officer of the Treasury Department,
the General Counsel has supervision over and coordinates
the work of the Legal Division. He Is directly responsible
to the Secretary of the Treasury, and performs such additional duties as are assigned by the Secretary or required
by law.
Mr. Kendall is a resident of Jackson, Michigan, where
he was associated with the law firm of McKone, Badgiey,
Kendall & Domke. He is a member of the American Bar
Association, the State Bar of Michigan, and The Barristers
of Jackson County, Michigan.
He has served as President of the Board of Education
of Jackson, and as a member of the Jackson Veterans Housing
Administration. He vras instrumental in the founding of the
John George Home in Jackson, a philanthropic organization
for assistance to aged and retired persons.
Mr. Kendall was in military service for four years
during World War II, in the U. S. Air Force. He was
returned to inactive duty in 1945 with the rank of major.
He was born in Indianapolis, Indiana, February 11, 1903.
He was graduated from Princeton University with the degree
of A.B. in 1924, and received his law degree from the
University of Michigan in 1931.

oOo

- 3 -

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 {$) of the Internal Revenue Code of
195>U the amount of discount at which bills issued hereunder are sold is no|*
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.

- 2 -

in cash or other immediately available funds

or in a like face amount of Treasury bills maturing

February 3, 19$5

Cash

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,

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, January 27, 19$5
.

6^V

competitive bidding as hereinafter provided. The bills of this series will be
dated February 3, 1955 , and will mature May 5, 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 31, 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

TREASURY DEPARTMENT
WASHINGTON, D.C

RELEASE MORNING NEWSPAPERS,
Thursday, January 27, 1955.

H-700

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 February 3, 1955,
in the amount of $1,500,936,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated February 3, 1955,
and will mature
May 5, 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, tv/o o'clock p.m., Eastern Standard time,
Monday, January 31, 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 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 lor
$200,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted

- 2 competitive bids. Settiement for accepted tenders In accordance
with the bids must be made or completed at the Federal Reserve Bank
on February 3, 1955, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing February 3, 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 195*1. 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.

It
^sipp&gSSf ^ePqii^m^m %mtm Wm$&w wSPiPpi!!1^' ^^Smmamf^m ^•FwP^l^'P^Br ws*wm0smt'

m H M Mil 11 mM
tft* mmmmm tarn mmmm
§ H ^ i p g ^ i*^aS|f m # §fal® m $L%1 IftWMfe f W
To all yoyyy?-ty->a, 1 Mini a f§HlS§ ftiiKMm

/ ^ , ^

January 27, 1955
Dear Admiral Richmond:
Please pass to the commanding officer
and crew of the Coast Guard Cutter Coos Bay
my congratulations on the skill and courage
with which the rescue of the crew of a
Military Air Transport Service airplane was
effected late yesterday in mid-Atlantic.
This rescue job proves again that Coast
Guardsmen are ready and able at all times for
the finest type of service.
To all concerned, I send a most sincere
"Well done:"
Sincerely,

/s/

G. M. Humphrey

Vice Admiral A. C. Richmond
Commandant, United States
Coast Guard

0O0

--SLm****?*^). ..yk--tyi^€-^^^

^f^f^y:

^m^^A^J^y/r rl^/fcl. A^/.

otiflteto* Xat* ^^«^ in «a*-*tt«tfc0.

tkfa» f twist fw§ of mmt^»
m mil «r*%**»*,. X MRS « «o»> sitfc*^
%WLX toml*

sf Jl&^.^

CktfUKl

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Thursday, January 27, 1955.

H-701

Treasury Secretary Humphrey today sent the following message to the Commandant of the United States
Coast Guard:
January 27, 1955
Dear Admiral Richmond:
Please pass to the commanding officer
and crew of the Coast Guard Cutter Coos Bay
my congratulations on the skill and courage
with which the rescue of the crew of a
Military Air Transport Service airplane was
effected late yesterday in mid-Atlantic.
This rescue job proves again that Coast
Guardsmen are ready and able at all times for
the finest type of service.
To all concerned, I send a most sincere
"Well done.1"
Sincerely,

/s/

G, M. Humphrey

Vice Admiral A. C. Richmond
Commandant, United States
Coast Guard

oOo

10
IMMEDIATE RELEASE,
Thursday, January 27, 1955.

i ',y

The treasury announced today that on Tuesday, February 1, it will offer
holder* of the 2*1/1 percent treasury Bonds of 1955-60, called for recaption
on March 15, an opportunity to exchange their holding* for a 3 percent
liQ-year Treasury bond or a 13-fflonth 1-5/8 percent Treasury mmta* Oash subscriptions will not fee received.
At the same tine holers of the 1-5/S percent oerMsf States of indebtedness, maturing February 15, and the 1-1/2 pamaat Treasury notes, maturing
larch 15, will be given the choice at exchanging their holdings for the new
13-month note or a 2 percent 2-l/2~year Treasury aata.
the si&seriptioa books will be open for three days, Tuesday through
Thursday, for these offerings*

for
lew Issues
to be Bated
February 15* 19$$
Maturing
Issues
Exchange
1-5/S3* etfs.

*7,W

(2% 2-1/2-yr. note and 1-5/8:* 13-moath note

1-1/231 notes

5,365

3%
kO-yr.
bond and 1-5/®*
2,611 U-wath note
2-7/8*
honds
The 13-Month acts will Mature Marsh 15, 1956
The 2-1/2-year note will mature August 15, 1957
The l*0-year bond will mature February 15, 1995
Holders of the 2-7/8 percent called bonds will be credited with the full
six-months« interest to larch 15 on the bonds surrendered, they will be charged
accrued interest from February 15 to Harch 15 on the new securities they elect
to receive, and they will be paid the difference, f^liowij^-^Mu^^tan&e^^^tne
Xn determining the amount of interest received upon the bonds exchanged,
and the exemption to which such interest is entitled, for Federal income tax
purposes, the full amount which is allowed as interest on the bonds surrendered
in the exchange will be regarded as such to the extent that It accrued to the
holder making the exchange, and not as a capital recovery; similarly the amount
of interest charged the subscriber on the new securities issued will be regards*
as an investment of capital, and therefore upon subsequent recovery of such
amount (i.e., upon payment of interest to him on the securities or upon sale
SJP other disposition by him of the securities) as a return of capital and net
as interest
;

^ IxBhaugea of the maturing certificates will be wads par for par »>8 of
February 15.ftschanges,of the notes Maturing larch 15 will be m*Wmt par
with an adjustment of accrued interest as of February 15.
Full information concerning this exchange offering will be released on
Monday, January 31•

TREASURY DEPARTMENT

WASHINGTON, D.C.
IMMEDIATE RELEASE,
Thursday, January 27, 1955.

H-702

The Treasury announced today that on Tuesday, February 1, it
will offer holders of the 2-7/8 percent Treasury Bonds of 1955-60,
called for redemption on March 15, an opportunity to exchange their
holdings for a 3 percent 40-year Treasury bond or a 13-month
1-5/8 percent Treasury note. Cash subscriptions will not be
received.
At the same time holders of the 1-5/8 percent certificates of
indebtedness, maturing February 15, and the 1-1/2 percent Treasury
notes, maturing March 15, will be given the choice of exchanging
their holdings for the new 13-month note or a 2 percent 2-1/2-year
Treasury note.
The subscription books will be open for three days, Tuesday
through Thursday, for these offerings.
Eligible
for
New Issues to be Dated February 15,1955
Maturing Issues Exchange
$7,007
1-5/8$ ctfs.
2% 2-l/2-yr« note and 1-5/8$ 13-month
note
5,365
1-1/2$ notes
$2-7/8$
40-yr.
bond and 2,611
1-5/8$ 13-month note
bonds
The 13-month note will mature March 15, 1956
The 2-1/2-year note will mature August 15, 1957
The 40-year bond will mature February 15, 1995
Holders of the 2-7/8 percent called bonds will be credited with
the full six-months» interest to March 15 on the bonds surrendered,
S y Sill be charged accrued interest from February 15 to March 15
6nthe newLcurlties they elect to receive, and they will be paid
the difference.
:V
In determining the amount of interest received upon the bonds
exchanged! anS?heSexemption to which such interest ;S entitled ,or
Federal income tax purposes, the full amount which is allowed as
interest on the bonds surrendered m the exchange will be regarded
as such to the extent that it accrued to ^he holder making^he
exchange, and not as a capital recovery; s r i m ^ ^ / the amount ot
Interest charged the subscriber on the n e\^™ritiesissued will De
regarded as an investment of capital and therefore upon ^sequent
recovery of such amount (i.e., upon payment 01 inuBI
securities or upon sale or other diaposition b y t o i o . the
securities) as a return of capital and not as mteiest income.

- 2 -

Exchanges of the maturing certificates will be made par for
par as of February 15. Exchanges of the notes manuring March 15
will be made at par with an adjustment of accrued interest as oy
February 15.
Full information concerning this exchange offering will be
released on Monday, January 31.

oOo

, . - 7o y
f

wutaSB mmxm

MI»RFIHS,
••
—>
Tuesday, February It 1?55«
The fraammy Departsasst announced last evening t'mt Urn taxtdara tar 11,500,000,000,
or th«r«eteonts, of 91-day Treasury Mil® to be dated Wmhrmry 3 and tm mmtwra Way 5,
1955, whteh were offered on Sammry Z7, were opened at the federal l©a«r*e Banks on
January 31*
the details of this issue are as followss
Total applied for - *?,$£,71tf»000
Total accepted
- 1,5QO,192,0@® (Uialadm mS9kn*W®
entered oa a
noncompetitive basis and accepted in
full at tt» average prim shown below)
Average prioe
- 99a7Xl\/ftq^valewtrata at discount apisrox. 1.13W par atmm
fSsiii® of accepted ecmpetitlve bids;
High * 99*727 m&talmt rate of discount . l.OSOg per annas

Low

- 99*m

am**** *»*5» •

(B7% mi the amount bid for at tbe lam prtmrn warn attempted)
Federal !eser?e total fatal
©istriet

Applied tar

Boston * 31,3fS,000 I Jftfg*a«»
Hew torlc
1,622,000,000
FMladelpteia
21,k7$9®m
Qmmlmd
%93%kym
Mcimmd
35»?19,000
Atlanta
SDfU>2,000
Onieag®
i99«fi^»O0O
St. I^iis
t$#«00»OC10
linneapolis
13,610,00©
Kansas City
35,835,000
DaUas
^>,3i5*000
San Francisco
10ii.ltf3.tPP0
total *2,385,7fc7,000 U,500,29t,OOQ

Aaaapted
<m9$$090m
^U,f?5,000
J3,lli9,000
15,519,000
5&»ltO2»00O
230,066,000
fc5,?50,GOO
13,510,000
35*f3S,GOO
28,835,O0O
66,^*3,009

•

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, February 1, 1955.

H-703

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated February 3 and to mature May 5, 1955> which were offered on
January 27* were opened st the Federal Reserve Banks on January 31.
The details of this issue are as follows:
Total applied for - $2,285,747,000
Total accepted
- 1,500,192,000 (includes $215,471,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99*713/ Equivalent r^te of discount approx.
1.134$ per annum
Range of accepted competitive bids:
- 99.727 Equivalent rate of discount 1.
High
per annum
Low
- 99.708 Equivalent rate of discount approx.
1.155$ per annum
(87$ 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
$
31,398,000
1,622,800,000
27,475,000
34,364,000
15,719,000
50,402,000
293,556,000
25,800,000
13,610,000
35,835,000
30,335,000
$2,285,747,000
104,403,000

0O0

Total
Accepted
31,398,000
929,550,000
11,975,000
33,149,000
15,519,000
50,402,000
233,066,000
25,750,000
13,510,000
35,635,000
23,835,000
86,403,000
$1,500,192,000

- 3-

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 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 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. ItlS, 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.

- 2-

mm.
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, 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 February 10, 1955 , in cash or other immediately available funds
or in a like face amount of Treasury bills maturing February 10, 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,

n
O

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS, ^f-f - / <? J
Thursday, February 3. 1955 •

££ - - 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 February 10, 1955 , in the amount of
$ lf500.502,000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated February 10, 1955 , and will mature May 12. 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, February 7. 195>5 .«
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 payment of

TREASURY DEPARTMENT
**»—-*«"^"'—

— *^—w

.-•••••••

LlLmJ£J^m'mWimnj> WM6agSg53S
i ••!•»•*—, w i - ^ — * * • * * * • :
,i i i • - nr inifim.
—M •

WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS,
Thursday, February 3, 1955.

H-704

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 February 10, 1955,
in the amount of $1,500,502,000, to be Issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated February 10, 1955,
and will mature
May 12, 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, February 7, 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 ^hall be
final. Subject to these reservations, n° n - c o m P e t l t iY^^ n 5-r^ S H
$200,000 or less without stated price from any one bidder will toe
accepted in full at the average price (in three decimals) of accepted

- 2competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or.completed at the Federal Reserve Bank
on February 10, 1955, in cash or other Immediately available funds
or in a like face amount of Treasury bills maturing February 10, 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.

i- KJ.. u.e*i.— c

REl£4SS MORHBiO K3t$?kPzllS9
Tuesday, Fabraary 8, 1955 *

/"'!' - V • ' ^ *

iaa ^aaaary Daf.«rtea«isfc annmineed laat ewBiisg that tha ttndi^tfir $l$$&$fjl&$&%t
ar imhmraahmta, of £L«*day Treasury bills to be dated February 10 and to isatnra Hay 12,
1955, whlah mr® off©red on February 3, -mr® apamd at the faderal Mmrra "Baxdm an
February 7*
The details at this issue are as followsi
Total allied for - 0-2,11°, 533,900
Total accepted
- l,>J0,cx>vi,vJG

(includes 5216,5^4,% 10 entered oni tf
a noncompetitive basis and accepted in
full at tli© average price ehoro balow)
Average prima
- 99.725 aqpiwubsnt rata of disoousfe approst. 1»08SP par annua
Eaugg of accepted eos^atitiva bids:
High - 99.73U £quiml@nt rata at dlmawttt approx. l.Q&i par annum
* 99 719

* 1 1*1 O** »

(70 pereant of the amotmt hSLtt for at taa low price warn accepted)
Wamarma Total Total
District
Boston
Cleveland
Richmond.
Atlanta

S^Su a;isu;ooo &&-&
^nnpa--olis
^*"rT£,
wW

^ a

San Fraasiaeo
TOTAL |tfii®,533tOoo $1,500,008,000

tM33#ooo

f ;AtU}«op»

l,y*S,§:Ut000

909f«ll«OQO

1*2,576,000
1^,276,030

1*2,176,000
lii,276,00O

2S*335#ooo

25,i35#ooo

291*838*000

238,238,000

1?,7'1S>^
>:>,26a,x»

19,786,000
58,61*3,000

5?;^Uiu

»^22

8U»a#»000

7a*555»3Qg

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
ft Tuesday, February 8, 1955.

H-705

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated February 10 and to mature May 12, 1955, which were offered on
February 3, were opened at the Federal Reserve Banks on February 7.
The details of this issue are as follows:
Total applied for - $2,119,533,000
Total accepted
~ 1,500,008,000 (includes $216,524,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.725 Equivalent rate of discount approx.
1.088$ per annum
Range of accepted competitive bids:
High - 99.734 Equivalent rate of discount approx.
1.052$ per annum
Low
- 99.719 Equivalent rate of discount approx.
1.112$ per annum
(70 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District

Applied for

Boston $ 24,433,000 $ 24,433,000
New York
1,448,811,000
Philadelphia
27,423,000
Cleveland
42,576,000
Richmond
14,276,000
Atlanta
25,135,000
Chicago
291,838,000
St. Louis
24,154,000
Minneapolis
19,786,000
Kansas City
59,268,000
Dallas
57,278,000
San Francisco
84,555,000
TOTAL
$2,119,533,000

Accepted
909,911,000
12,223,000
42,176,000
14,276,000
25,135,000
238,233,000
24,154,000
19,786,000
58,643,000
56,478,000
74,555,000
$1,500,008,000

u »

In making the announcement, Treasury Secretary Humphrey saidl:

"The banks, the Government security dealers, and the entire financial
coEBnunity gave magnificent cooperation in supporting the $15 billion
refunding operation. The successful placing, especially of not far from
$2 billion of 3% 40-year bonds, with investors in the three days in -which
the subscription books were open was a substantial achievement and involved
the transfer of ownership among many thousands of holders. This, together
with other necessary activity in connection with the refunding, required
a volume of market transactions in Government securities of about $2-1/2
billion a day during the time of the exchange.^
ff

The 40-year 3% bonds are the longest issue of Government bonds since

a 50-year bond was issued in 1911 to help build the Panama Canal. The
-auv4jc.ii.ful plaelngS^f this^ossue is a further step in carrying out the
goal of improving the structure of the debt so as to help maintain the
value of the dollar and so encourage the dynamic growth of the economy.^
"This operation lengthens the average maturity of the marketable debt
from 4- years and 2 months to U years and 9 months."

IMMEDIATE MLSASE,
Taaaday, February *t 1???.

»~

;&§ Treasury tggHgp announced that a tabulation of sabaarlptlena far tha
recent axaaatiga of faring showed $1,91? adlliom ter tha nam 40-yaar 3£ Traaaary
uondsf $3,7S4 million for tha 2~l/2~ym*r 2% note; and $8,450 aillioafor tha
13-®oatfe 1^/M note. , ->t far froa
Tha securities eliglhla for exchanga totaled £14,983,000,000, and tbe aiafeseriptions amounted to $14,151,000,00©, laavisg only $612,000,000 or $M «*ajc~i
changed. A breakdown of tha exchanges fey ieauaa faHavas Tk±£s together
(In esillioaa at dollar*) w c^fusdiBg. ra^airad
'• r • H I • inn. II inn .i . II.IIII

i———ma

i urn mi !i m m i HIM

i n iliiMMM»iM«MIM«»MWtillMM«Mlt»M»M«i»^MWItWIM^^

Sxahaage Sueaaflptifi^bf ®hmt 12-1/2 « n M .
Eligible
iar Haw Iseaaa
y
for
i->>m lata
H Sola
'" "I""-i
Ex(13--«a&tii) {2~l/2~raar) 3S$ B©»d
efeaafd
change
(40-yaar) be Total 'ma

Maturing
or
Called
Issues
""

m m I mi I m rni u n m n m im i r

i mi. I M U I I minii

.111m. 1 11.mm

.m iir IHIUJII .11 1

1^/m Oartifieate*
(maturing Feb. 15,
1955)...-.....
17,007
$5,743
1-1/^ Motsa - ^iintaJji the
(maturing Mar. 15,
1955)
5,365
2,|i£
2*7/8$ Bonds of 1955- issrkatabla dmbt
60
(called for radaaption Mar.15,1955)
2,6U
31f

n ...I..»I..II ..n..—n.n • in im MIL « 1 1 ••• 1

immmmmamWmmilgmmWmmWammWammmmmm

^anal. Tim
$1,17*

i -

t*,t«
tte

2*6©$

1,917

$ 85

4,993^372

*,23*

yotal......... #14,983 $8,450 $3,784 $1,917 $14,33* $83*
\
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f-L^-iy^^M ^~y^£y-±£~^ ^^-y -J .

• n

••

TREASURY DEPARTMENT
WASHINGTON, D.C.

MEDIATE RELEASE,
Tuesday, February 8, 1955.

H-706

Treasury Secretary Humphrey today announced that a tabulation of subscriptions
for the recent exchange offering showed $1,917 million for the new UO-year 3%
Treasury Bondsj $3*78/4 million for the 2«l/2-year 2% note; and $8,1*50 million for
the l>month 1-5/8$ note0
The securities eligible for exchange totaled $lU,983,000,000, and the subscriptions amounted to |lU, 151,000,000, leaving only $832,000,000 or $06% unexchanged
A breakdown of the exchanges by issue follows:
(in millions of dollars)
Maturing
or
Called
Issues
to

Eligible
for

£XcflaR e
g

1-5/6$ Certificates
(maturing Feb,. 1$9
1955)

$ 7,007

1-1/256 Notes
(maturing Mar. 1$9
19$$)

$,36$

2-7/8$ Eonds of 195560
(called for redemption Lar. 15, 1955)

2,611
$1U,9S3

Exchange Subscriptions
for New Issues
l-$/B% Note
2% Note
(13-month)
(2-l/2-year) 3% Bond
(U0-year)

& $,lk3

2S388

chanced
Total

$ 1,179

% 6,922

0 85

2,605

U,993

372

1,917

2,236

375

1,917
VO-,

ylu,l5l

$832

319
),h$0

Unex-

$3,78U

Final figures by districts will be released in a few days*
In making the announcement, Treasury Secretary Humphrey said:
"The banks, the Government security dealers, and the entire financial corn-unity
gave magnificent cooperation in supporting the %1$ billion refunding operation* ihe
successful placing, especially of not far from ,,2 billion of 3;* UO-year lends, with
investors in the three days in which the subscription books were open -.--a? a suostantial achievement and involved the transfer of ownership among _r,anythous"ncs oi
holders. This, together with other necessary activity in connection wi-n tne refunding, required a volume of market transactions in Government securities ol atom.
52-1/2 billion a day during the time of the exchange.

- 2-

"The UO-year 3% bonds
50-year bond was issued in
a further step in carrying
to help maintain the value
economy.

are the longest issue of Government bonds since a
1911 to help build the Panama Canal. The bond issue is
out the goal of improving the structure of the debt so as
of the dollar and so encourage the dynamic growth of the

"This operation lengthens the average maturity of the marketable debt from
k years and 2 months to k years and 9 months."

oOo

STATUTORY DEBT LIMITATION
A S Q F January 31, 1955
Washington, l$ZmW..lk:J:$55
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 S t a t f* < e * c . e P'*^guaranteed obligations as may be held by the Secretary of the Treasury), ,fshall not exceed in the aggregate $275,000,000,000
(Act of Tune 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 lace amount." The Act of August 28, 1954, (P.L. 686-83rd Congress) provides that during the
P^iod begbninlon 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
«P281,000 , 0 0 0 ,000
OutstandingObligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills $ 19, 506 ,66l, 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:
J L . , ' 1 Mo»«a,y Fund « * . _
Total

28,462,179,000
3 2 , 534, 7 3 6 , ^00 $ 8 0 , 5 0 3 ,5?6 ,500
81, 757, 784, 900
57» 966 , 5 4 0 ,674
^52, l62 ,000
12,676,791,000
28,838,211, 000
13,430,l66,400

4 8 , 4 3 4 , if88
1,156,66,5
^
1,528.000.000

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A
22,033,836
Matured, interest-ceased
1,772,700
Grand total outstanding
.
Balance face amount of obligations issuable under above authority

152,853,278,574

kZ% 268,377 ,400
275 , 625, 232, 474
7 2 2 , 1 6 . ,771

_ ._,„ .__ _ ._,
1,577.591.153
277,92^,988,398

23,806,536
„

Reconcilement with Statement of the Public Debt ..f^.^iLZ...3i.....i?.5.5
(Date)
(Daily Statement of the United States Treasury,
$^$^mY,..m32iJ..X955.
,.
tDate)
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,,

277,948,794,93^
3,051,205,066

;

)

278,439,067,319
23,806,53° .
278,462,873 ,855
514.078.921

277,948,794,93^
H-707

*?1<L

S T A T U T O R Y D E B T LIMITATION
9

AS 0F.±;^5:..S.:..i 55

Section 21 of Second Liberty Bond Act, as amended, provide*, that thm ( < Washington, ..^..2}BlZ.lkJ:.?.55
und
of that Act, and the face amount of obligations g u T r ^ m e e ^
« authority
United S t a t 5 ( e x c e r
anteed obligations as may be held by the Secretary of the Treasurv<VhJ\««,U? A ? ,if
S
P •«"*8«-H(Act of June 26, 1946; U.S.C., title 31, sec. 757b), outstandfn*a7anv
U '»"'« " the a«/re.«ate 12/5,000,000,000

tkb Umtadi™'"8

,ab

°"" "" '"" "m"™'."' -A"""1"" ou««.„din8 and the face amount which can .,111 b. l.,Md

Total face amount that may be outstanding at any one time
OutstandingObligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills $ 19, 506 , 66l, 000
Certificates of indebtedness
Treasury notes
BondsTreasury
,
4
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

28,462 179 000
32 | 534. 7?6.'.OO $ 80 , 503 ,576 , 500
81,757,784,900
57 , 966 , $k0 , 674
452 ,162 ,000
12 . 676 . 791. OQQ 152 ,853 , 278, 574
28 , 838 , 211, 000
13 .430 .166.400

42,268,377,400
275,625,232,474
722,164, 771

48 , ^34 , 488
1,136 , 66^
1,523,000,000
„

1,577,591,153
277 , 924 , 988 , 398

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A
2 2 ,033 , 8 3 6
Matured, interest-ceased
1,772.700
Grand total outstanding .„
Balance face amount of obligations issuable under above authority
,

23,806,536

Reconcilement with Statement of the Public Debt .c....X...M...'/.....l....! .<..?.•?.
(Date)
(Daily Statement of the United States Treasury,
J^?;^.D[.-^"-»...^^^
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-707

on<let

$28l Q 0 0 0 0 0 0 0 0
'
'
'

w 7 , 9"'P, 79^', 9 3 ^
J >051 i£vj,0oO

;

>
273,^39,067,319
~2-l £' -"•—
278,^62,873.855
51*-' ,078,921
277,9^8.79^,93^-

- 3-

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 k$k (b) and 1221 {$) 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 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

- 2 -

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, 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 February 17. 1955 * in cash or other immediately available funds
or in a like face amount of Treasury bills maturing February 17. 19$$ • 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 195U. 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,

xxfemm
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS, /~"/— 7^ ^
Thursday. February 10. 1955
xxx

$ 1>5Q0*39«U»000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated February 17, 1955 , and will mature May 19» 1955 , when the face
_

Um^

amount will be payable without interest.

XXX

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, February lk* 1955^*
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., 99.925. 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

TREASURY DEPARTMENT
WASHINGTON. D.C.

RELEASE MORNING NEWSPAPERS,
Thursday, February 10, 1955.

H-708

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 maturingPebruary 17, 1955,
in the amount of $1,500,394,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated February 17, 1955,
and will mature May 19, 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., February 14, 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 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 WJ.I1 be
accepted in full at the average price (in three decimals) of accepted

- 2competitive bids. Settlement for accepted tenders In accordance
with the bids must be made or completed at the Federal Reserve Bank
on February 17, 1955, In cash or other immediately available funds
or in a like face amount of Treasury bills maturing February 17* 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.

- 2 -

Commodity,

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

Period and Quantity

12 months from
July 1, 1954

1,709,000

: Unit
:
: of
Imports as oi
iQuantity; Jan. 29, 19ft

Pound

Quota Filled

Peanut Oil 12 months from
July 1, 1954
Barley, hulled, unhulled, rolled,
and ground, and barley malt

Other Countries

27,225,000
275,000

Bushel
Bushel

9,070,084

39,312,000
688,000

Bushel
Bushel

7,9614,025
629,069 *

Pound

Quota Filled

5,635 *

12 months from
Oct. 1, 19$k

Canada
Other Countries
Rye* rye flour, and rye meal 12 months from
July 1, 1954

* Imports through February 8, 19$$»

8,243,629

12 months from
Oct. 1, 1954

Canada

Oats, hulled, and unhulled, and
unhulled ground

80,000,000 Pound

186,000,000

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE
Thursday, February 10j 1955*

H-709

Commodity

Period and Quantity

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

3,000,000

: Unit :
i
of
: Imports as of
:Quantity: Jan. 29, 1955
Gallon

2,1)49

1,500,000 Gallon

Mar. 31, 1955

50,000,000 Pound

223*0614

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

35,432,624 Pound

Quota Filled

Butter Nov. 1, 1954-

White or Irish potatoes:
Certified Seed
oth r
e

12 months from 150,000,000 Pound
Sept. 15, 1954 329,100,000 Pound

Cattle, less than 200 lbs. each... 12 months from
April 1, 1954
Cattle, 700 lbs. or more each Jan. 1, 1955(other than dairy cows)
Mar. 31, 1955
Walnuts

Calendar Year

200,000

Head

120,000 Head

42,755,910
11,332,981

U,Uo8
28,406

5,000,000

Pound

171,930

Almonds, shelled, blanched, roasted,
or otherwise prepared or preserved. 12 months from
Oct. 1, 195U

5,000,000

Pound

565,827

filberts, shelled (whether or not
blanched)
12 months from
Oct. 1, ±9$k

6,000,000 Pound

2,053,51^

1,500,000 Pound

Quota Filled

Alsike clover seed 12 months from
July l, 195U

(1)

LT^st^rsroft£%s£to £.rlimitedto 8'858'156 ".^sssr
'iif

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE
frursday, February 10, 1955.

H-709

Commodity

Porlod and Quantity

Whole milk, fresh or sour

Calendar Year

Cream .» Calendar Year
Butter Nov. 1, 1954,

Mar. 31, 1955

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

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

3,000,000

: Unit :
t of
: Imports as of
:Quantity: Jan. 29» 1955
Gallon

2,149

1,500,000 Gallon

50,000,000 Pound

223,064

35,432,624 Pound

150,000,000 Pound
329,100,000 Pound
200,000 Head

Quota Filled
42,755,910
11,332,981
4,408

Cattle, 700 lbs. or more each Jan. 1, 1955(other than dairy cows)
^ r . 31, 1955

120,000 Head

28,406

Walnuts Calendar Year

5,000,000 Pound

171,930

5,000,000 Pound

565,827

6,000,000 Pound

2,053,514

1,500,000 Pound

Quota Filled

Almonds, shelled, blanched, roasted,
or otherwise prepared or Dreserved. 12 months from
Oct. 1, 1954
Filberts, shelled (whether or not
blanched)
12 months from
Oct. 1, 1954
Alsike clover seed I2

months rrom

July 1, 1954

(Tjlmoorts for consumotion at the quota rate are li-nited to ^ % 1 ? 6 lbs. during
the first throe months of the calendar w a r .
(.'onUnued)

- 2 -

Commodity

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

j
: Period and Quantity
.

12 months from
July 1, 1954

: Unit
t
i of
: Imports as of
:Quantity: Jan. 29, 1959

1,709,000

Pound

Quota Filled

80,000,000

Pound

8,243,629

Peanut Oil • 12 months from
July 1, 195)-'
Barley, hulled, unhulled, rolled,
and ground, and barley malt

12 months from
Oct. 1, 1954

Canada 27,225,000 Bushel 9,070,084
Other Countries
Oats, hulled, and unhulled, and
unhulled ground
»c = *

275,000

Bushel

5,635 *

688,000

Bushel

629,069 #

12 months from
Oct. 1, 1954

Canada 39,312,000 Bushel • 7,964,025
Other Countries
Rye, rye flour, and rye meal 12 months from
July 1, 1954

* Imports through February 8, 1955.

136,000,000

Pound

Quota Filled

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Thursday, February 10, 1955.

H-710

Products of the
Philippines

Buttons

Unit
Established Quota
of
Quantity
[Quantity

850,000

:
: Imports as of
: January 29, 1955

Gross

63,425
24,892

Cigars ,

200,000,000

Number

Coconut Oil ......

448,000,000

Pound

Cordage .•••••....

6,000,000

Pound

261,620 >9 *

Rice

1,040,000

Pound

(Refined...
Sugars
(Unrefined
Tobacco

1,904,000,000

9,385,130

Pound _ _
127,514,562

6,500,000

Pound

32,785

3* an

TnZASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Thursday, February 10, 1955.

1 Hi

H-710

The Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities on which q iotas were prescribed by the
Philippine Trade Act of 19u6, from January 1, 1955, to January 29, 1955, inclusive, as follows:

Products of the
Philippines

Buttons

Unit
Established Quota
of
Quantity
iQuantity

850,000

Gross

:
: Imports as of
: January 29, 1955

63,425

Cigars

200,000,000

Number

24,892

Coconut Oil ......

4)48,000,000

Pound

9,385,130

Cordage ..........

6,000,000

Pound

267,620

Rice

1,040,000

Pound

1,904,000,000

Pound

(Refined..,
Sugars
(Unrefined
Tobacco ..........

127,514,562
6,500,000

Pound

32,785

TREASURY DEPARTMENT
Washington
H-711

IMMEDIATE RELEASE,
Thursday, February 10, 1955.

The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour authorized to be entered, or withdrawn
from warehouse, for consumption under the import quotas established in the
President's proclamation of May 28, 194l, as modified by the presidents
proclamation of April 13, 1942, for the 12 months commencing May 29, 1954,
as follows?

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

litieat

Country
of
Origin

Established :
Imports
Quota
:Kay 29, 1954, to
8

[ (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

Feb. 8 » J £ g .
(Bushels)
795,000

—
100
100
100

100
2,000
100
1,000
100
-

1,000
100
100
100
100

t Established
s
Quota

Imports
May 29, 1954*

(Pounds)

3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

3,815,000

70
5,000

2,000

TREASURY DEPARTMENT
Washington

103
IMMEDIATE RELEASE,
Thursday,. February 10, 1955.

H-?ll

The Bureau of Customs announced today preliminary figiires showing the
quantities of wheat and wheat flour authorized to be entered, or withdrawn
from warehouse, for consumption under the import quotas established in the
President's proclamation of May 23, 1941, as modified by the President's
proclamation of April 13, 1942, for the 12 months commencing May 29, 1954,
as follows?

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

Wheat
Country
of
Origin

Imports
Established :
Quota
tly 29, 1954, to
s Feb. 8, _ ! £ £ £ _
(Bushels)
(Bushels)

795,000
Canada
China
Hungary
Hong'Kong
Japan
—
United Kingdom
100
Australia
Germany
100
Syria
100
New Zealand
Chile
Netherlands
100
2,000
Argentina
Italy100
Cuba,
—
1,000
France
Greece
—
100
Mexico
Panama
—
Uruguay
—
Poland and Danzig
—
Sweden
Yugoslavia
Norway
Canary Islands
1,000
Rumania
Guatemala
100
Brazil
100
Union of Soviet
100
Socialist Republics5
Belgium
100

800,000

795,000

795,099

Established
Quota
(Pounds)

Imports
May 29, 195b
i to Feb. 8, 19«tt
(Pounds)

3,815.000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

3,815,000

HTO'OOyjOa

3,822,070

5,000

2,000

3492

-.0*

-*2—
COTTON WASTES
(In pounds)

ADVANCED IN VALUE* Provided, however, that not moreJhan 33-1/3 £«•£ £ ^6 £nohes

or more

Switzerland, Belgium, Germany, and Italys

Country of Origin
United Kingdom
Canada . • a 9 9 o
O 0
0 . 0
France . . .
o .
British India
o a
Netherlands •
O
.
O
0 o .
Switzerland .
Belgium . . « o e • . • .
Japan . . . • • • • • o .
China « . . • • « • • o .
. a
Egypt . . . o . o . .
a o
o o . o
Cuba
o a
0
0
0
Germany
ooo
o o o o
Italy

Established
TOTAL QUOTA

i
Total Imports
8 Sept. 20, 1954, to
t Feb. 8. 1955

,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*262

1,006,289
o2,389

5,482,509
1/ 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, 19 54to Feb. 8, 1955
1,006,289

75,807

67,894
22,747
14,796
12,853

6,627

25,443
7,088

6,627

1,143,199

1,599,886

1,012,916

"17

3492

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Thursday, February 10, 1955.

H-712

Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the President'sProclamation of September 5, 193*, as amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/i,"
Imports Sept. 20, 19^,,. to^touary^., 195TTlIc1^sive~
Country of Origin
Egypt and the AngloEgyptian Sudan . .
Peru . . . . . . . . .
British India . . . .
China . . . . . . . .
Mexico . . . . . . .
Brazil . . . . . . .
Union of Soviet
Socialist Republics
Argentina . . . . . .
rlaiOl

Ecuador

Established Quota
783,816
247,952
2,003,483
1,370,791
8,883,259
618,723

o e . o . o o .

475,124
5,203
237

. . . . . . .

9,333

Imports

5,931
20,355
3,541,107
618,723
411,813

Country of Origin
Honduras .....
Paraguay
Colombia . .

Established Quota

752

Iraq o . . o . o o o

British East Africa . .
Netherlands E. Indies.
Barbados . . . . . . .
l/0ther 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

¥/ o ^ ^ ^
o a ^ ° 8 5 B e r m u d a > Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
1/ Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less than 3/4"
Imports Sept. 20. 195Z,.T to January 2 0 ^ ^
Established Quota (Global) Imports
70,000,000 3,918,694

Cotton 1-1/8" or more, but less than 1-11/16"
Imports Feb. l ? 195U, to January %£T"I95:
Established Quota (Global)

45,656,420

Imports
41,053,691

TREASURY DEPARTMENT
Washington
H-712
IMMEDIATE RELEASE,
Thursday, February 10, i ^ 2 >

Preliminary data on imports for consumption of cotton and cotton ™ * ^ f ^ £ * * *
established by the Presidents Proclamation of September 5, 1939, as amended

Country of Origin,

^ ^

COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/4"
Imports Sept. 20. 195/.. to February 8. 1955, inclusive
Established Quota
Country of Origin
Established Quota
Imports

752
Honduras ...»
Egypt and the Anglo871
Paraguay . . . . .
783,816
Egyptian Sudan • . .
124
5,931
Colombia . . . . .
247,952
Peru.
......*.*
195
.
. . e o
20,355
2,003,483
Iraq • .
British India . . . .
2,240
1,370,791
British East Africa . •
71,388
China
........
3,541,107
8,883,259
Netherlands
E
.
Indies.
Mexico
o . «
618,723
618,723
Barbados . . . . . . .
21,321
Brazil . . . . . « « <
5,377
l/0ther
British
W.
Indies
411,313
475,124
Union of Soviet
16,004
Nigeria . . . . . . »
5,203
Socialist Republics
689
2/0ther
British HI. Africa
237
Argentina .
^/Other French Africa . .
9,333
Haiti .
Ecuador
. . Barbados,
. . . . Bermuda, Jamaica, Trinidad, and Tobago, Algeria and Tunisia .
1/ Other .
than
2/ Other than Gold Coast and Nigeria*
2 / Other than Algeria, Tunisia, and Madagascar.
Cotton 1-1/8" or more, but less than 1-11/16"
r.nt/hon, harsh or rough, of less than 3/4"
Imports Feb. 1. 1954, to January 31> ^55
Imports Sept. 20. 195/,, to J-nu^ry 29, 1955
Imports
Established Quota (Global)
Established Quota (Global) Imports
41,053,691
45,656,420
70,000,000 3,918,694

x
4-i -

II-

Tuesday, February 1$, 19$$*
y& Treasury Department announced last evening that the tenders for -§l,500,000,ef(
or thereabouts, of 91-day treasury billa to be dated February 17 and te mature ay 1%
1955, ehiefe mre off trad m ^bwafj 10> -were opened at the Federal Eea@rve Banks on
Fetr.;~ry H.
Tne details of this -ssue are as follows:
Total applied tar - 42,158,675,000
fetal a ^ p t e d
- 1,500,125,000

(immlmdm %216,6$19QQQ entered en
a noncaapatitiT© baais and accepted in
full at the average pries shown halm)
Average pries
- 99.73>V Ea^ivalaafc rate of diaeeusfc appro*. 1*130* par annua
fia&ge of accepted c«tip©titlv© bide:
Hi

^ ~ 99.731* Squivalent rate of discount appro*. 1.0$2J par annul
id*
- 99,709
«
«
«

1,15^

(78 percent ef the amotiiit bid .tar at the mi prima wae accepted)
Federal Reserve
Disttrlet

Total
Applied for

Boston
Sew York
Philadelp^ila
C^evelaod
Richmond
Atlanta

St. tm&s
Miaaeapolia
Kassas City
Dallas
San Francisco
TGfAL

jifiljtjooo
I#^0» 953*000
34,500*000
1*9*206*000
20, 882,-000
26,098,000
26o,L?i,30O
33,3^ .,-XK)
20,950,000
36,478*00)
39,191*, 000
77,U07*0OO

$2,158,675,000

fetal
30,^,000
9t*3,7S3>000
19,500,300
k7,iO6»000
20,272,000
-t£.t$9S»OO0
219,1*73,000
30,388,000
20,^0,000
37,37ifO00
3§,7$*,OO0
66,107,000
$1,500,125,000

TREASURY DEPARTMENT
WASHINGTON. D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, February 15, 1955.

K-7I'

The Treasury Department announced last evening that the
tenders for $1,500,000,000, or thereabouts, of 9i~day Treasury
bills to be dated February 17 and to mature Kay 19, 1955, which
were offered on February 10, were opened at tne Federal Reserve
Banks on February 14«
The details of this issue are as follows;
Total applied for - $2,158,675,000
Total accepted
- 1,500,125,000 (includes $216,651,000
entered on a noncompetitive basis and
accepted in full at
the average price
Average price
shown below)
- 99.714/ Equivalent rate of discount
Range of accepted competitive bids: approx. 1.130$ per annum
- 99.734 Eouivalent rate cf discount
approx. 1.052$ per annun
Low
- 99.709 Equivalent rate of discount
l.l^lfo per annum
approx
(78 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
Acceytsd

Total
Applied for
31,146,000
1,520,953,000
34,500,000
49,206,000
20,832,003
26,093,000
269,473,000
30,333,000
20,950,000
3o,478,000
39,194,000
$2,158,675,000
Vi7,407,000

30,646,000
943,753,000
19,500,000
47,206,000
20,2,2,000
25,59^,000
219,473,000
30,388,000
20,750,000
37,37 8,000
58,754,000
6:.40",000
$1,500,125,000

COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having-* staple of less than 1-3/16 inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AMD ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHER./ISii,
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 Italyi

Country of Origin
United Kingdom
Canada . . . .
France . . . .
British India
Netherlands .
Switzerland .
Belgium . . .
Japan . © » •

China. . . . .
Egypt . „ . .
Cuba

o e . .

Germany . . «,
Italy c . • o

Established
TOTAL QUOTA

Total Imports
Sept. 20, 195U, to
Feb. 8,
\9$$___

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

1,006,239
o2,339

5,482,509

1,143,199

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, 19 $h
to Feb. 3, 19$$
1,006,289

75,807

67,394
22,747
14,796
12,853

6T627

25,443
7,088
1,599,886

6,627
1,012,916

-H
i^hukyL, mMMitm it:.xyA?ms,
Tuesday, February 1$3 19$$*
Zm Treasury l&partsaotit mzimmad

last evening that the tenders tm ,tl*5OO#OO;,000,

or thereabouts, of Fl«^ay Treasury kills to be dated .frnXwrnrj 17 aal to mature May 19,
T-

1955, which ire re offered an r *bruary 10, mra

opened at tha tmdmraX Beosrve Banks on

fturu-ry It.

fna details of tfaio la&m are as follows s
Total applied for - |2f 118,675,000
fatal accepted
- | t 5oo f it$ f ooo

{imlkmdm $2M.i$.l,OO0 entered on
a 8©a©eMpetlt£ve oasis and accepted in
full at th© average pfloo shown below}
Average price
~ 99,7-Ui/ l ^ v a l o s t rate of discount approx, 1.130$ per annua
Range of accepted competitive bids;
Higi
LOW

~ 99,734 Equivalent rate at discount approx. 1.052;5 per annum
- 99*709
a
n
a
a
n
1,1$1% a
«
(78 pereent of the amount bid for at the low prica was accepted)

Federal Reserve
Bistrlot
Hew York
Philadelpriia
Cleveland
Heteond
Atlanta

Total
Applied for

fatal

31,11^,000
1*520,^3,000

3i*,5oo*ooo
1^,206,000
20,311,000
26,098*000
269,173,000
30,3o::.,CK>3
.10, 950, J 00

Ch* cayo
St. I.-ouis
Mliuii&mpoiia
Kansas City
Dallas
Ban Fraseiseo

38,W*ooo
3?»l&*ooo
77tfc0?*OOO
TQf&L

12,1^8,675*000

30,6&6,ooo
9h3»7S3»000
1P,500,000
47,206,000
20*272*000

t$9$m>om
2X99k739Q®0
30,388*000
§0,7^0,000
:

|T,378,ooo

f**7§U*aao
16,^07*000

t^5oof^,ooo

TREASURY DEPARTMENT
=

WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, February 15, 1955.

H-713

The Treasury Department announced last evening that the
tenders for $1,500,000,000, or thereabouts, of 91-day Treasury
bills to be dated February 17 and to mature May 19, 1955, which
were offered on February 10, were opened at tne Federal Reserve
Banks on February l4c
The details of this issue are as follows:
$2,158,675,000
1,500,125,000 (includes $216,651,000
entered on a noncompetitive basis and
accepted in full at
the average price
Average price
shown below)
99.71V Equivalent rate of discount
Range of accepted competitive bids: approx. 1.130$ per annum
Total applied for
Total accepted

High

- 99.73^- Equivalent rate of discount
approx. 1.052$ per annun
Low
- 99.709 Equivalent rate of discount
approx. 1.151$ per annum
(78 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*1^6,000
1,520,953,000
34,500,000
49,206,000
20,832,000
26,098,000
269,473,000
30,338,000
20,950,000
38,478,000
39,194,000
Y7,407,000
$2,158,675,000

Total
Acce-oted
$

30,646,000
943,753,000
19,500,000
47,206,000
20,2/2,000
25,593,000
219,47°-, 000
30,3cJ,000
20,750,000
37,378,000
38,754,000
6o,407,000

$1,500,125,000

m. v*.w

,«**«-

3SSMEDIaTE IKUftSKi
tuesdayJsL 1February 15* 1955*
the Treasury Wapartmamt announced today that final tabulation of subscriptions
for the recent exchange offering showed #1,923 million for the new 40~yoar 3 percent
treasury bonds, f3,793 million for the new 2*l/2*year 2 percent notes, and 88,/'"
million for the 13-sionth 1-5/8 peroent notes.
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 leaerve Districts.
(In millions of dollars)
Exchange Subscriptions for 1 ew Issues
If
Tf
total
Note
m*wmgmm*m*ma#tmmammm*m»*vi*

Old Issues
Certificates.....
••**•••••«*•

for
I 7,007
5,365

#14,983

11,923

Unexchanged

8l,l67

$5*738

I 6,905

#102

2,626

2,401

5,027

338

22!

2,246

#8,2*61

#14,178

1,923

••*••

total,

8 »

n ti^mammmmmtmmammm^Hma#mmm»m^am

13,793

MwWtX—W

mil Mini

#805

svmcuwtmm m imwm* BKSE:»*S BISTEICTS
3%

federal leserve
District

treasury Bonds
of 1995

Series C-1957
HOtes

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

total

128,296,500
1,283,751,500
35,322,000
63,732,500
19,314,500
8,438,500
228,779,500
23,766,500
&>,642,50G
36,^38,500
16,1*64,000
32,559,000
5*764,500

#1,923,270,000

124,617,000
1,523,200,000
127,528,000
169,896,000
84,230,000
120,808,000
667,268,000
183,946,000
137,460,000
206,531,000
123,931,000
311,698,000
12,146,000

#3,793,309,000

1-5/8*
Series A-1956

notes
#

119,711,001
6,456,606,000
81,486,000
210,495,006
59,339,000
161,300,000
598,968,006
UO,4l9,O0@
97,254,000
144,929,000
46,506,000
352,562,000
22,4^3.000

#8,462,028,000

TREASURY DEPARTMENT

1 1 .' i
mm. 4, \mf

W A S H I N G T O N . D.C.
IMMEDIATE RELEASE,
Tuesday, February 15, 1955*

H-714

The Treasury Department announced today that final tabulation of subscriptions
for the recent exchange offering showed $1,923 million for the new 40-year 3 percent
Treasury bonds, $3,793 million for the new 2-l/2-year 2 percent notes, and $8,462
million for the 13-month 1-5/8 percent notes.
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

Eligible
for
Exchange

(In millions of dollars)
Exchange Subscriptions for New Issues
~2$
1%
1=578?Total
Note
Bond
Note

Unexchanged

Certificates,

$ 7,007

$1,167

$5,738

$ 6,905

$102

Notes. i

5,365

2,626

2,401

5,027

338

323

2,246

365

$8,462

$14,178

$805

Called Bonds
Total,•,

1*923
$14,983

M-,923

$3,793

SUBSCRIPTIONS BY FEDERAL RESERVE DISTRICTS
3%
Treasury Bonds
of 1995

2%
Series C-1957
Notes

1-5/8*
Series A-1956
Notes

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

$ 128,296,500
1,283,751,500
35,322,000
63,732,500
19,314,500
8,438,500
228,779,500
23,766,500
40,642,500
36,438,500
16,464,000
32,559,000
5,764*500

$ 124,617,000
1,523,200,000
127,528,000
169,896,000
84,280,000
120,808,000
667,268,000
183,946,000
137,460,000
206,531,000
123,931,000
311,698,000
12,146*000

$ 119,711,000
6,456,606,000
81,486,000
210,495,000
59,339,000
161,300,000
598,968,000
110,419,000
97,254,000
144,929,000
46,506,000
352,562,000
22,453*000

Total

$1,923,270,000

$3*793,309,000

$8,462,028,000

Federal Reserve
District
»ii

i ' i

- 8the future at an accelerated pace in excess of anything
we have ever known before.
You and I as citizens must participate in this great
drive toward a better America.

As such a citizen, I am

pleased and proud to accept this fine award from the Chamber
of Commerce of Greater Philadelphia, and to receive it in
recognition of the contributions which President Eisenhower's
Administration has made to the advancement of the economy of
this nation.

hhe future of free America lies in the initiative, the
•Mprourcefulness, the tenacity, daring, and courage of 160
million Americans, each free to choose how best he can promote
his own interest and the Interest and future of his loved ones
in whatever way he can best devise only so long as he does not
interfere with the rights of others. It is the cumulative
power of this great effort which has made America great in
the past and which I am convinced will drive us ahead in

recognition of the contributions which President Eisenhower's
Administration has made to the advancement of the economy of
this nation.

!1 0

-7As cuts in future expenditures all through the government's
operations come clearly into sight, and if at the same time our
expanding economy promises greater income vith lesser rates of
tax, we will look forward to further reductions in our tax
structure, distributed as fairly as possible among all taxpayers.
The expectation of further tax reduction and the maintenance of sound fiscal policies are firm foundation stones
creating greater confidence In our future prosperity.
These, then, have been fine, worthwhile accomplishments
for the good of the nation, Its economy, and Its future.

They

have been accomplished without fanfare or sensational controversy.
afre no& _the^e--jwho^c3^sfer^-^

CThfTlpeo^lw Tart5^
p\£hmOild%^fkiJ^^^

ia the Cabinet

and in the Agency heads in this Administration, there exists a
wonderful team spirit which has resulted in real accomplishment
with few headline battles.
The role which the government can play in the economic
affairs of the nation should be limited.

Government manipulation

is the antithesis of a free America, and encroachment by government in restricting the freedom of its citizens should be
limited to doing, as Lincoln said, "for a community of people
whatever they need to have done, but cannot do at all, or
cannot so well do for themselves - - i n their separate and
individual capacities.

In all that the people can individually

do for themselves, government ought not to interfere.w

. .
«•,-,-« , a f o m p forces are ire co initio
on
The President's decisions on our a e i ^ e i o ^
d e v e W t ^
o'Fthe- fact fhac In this s ^ o f &1^\^l\Xlvel
static d e f e n d
science and. production techniques, we cannot h a v e ^
3 e c u r i t y for
committed to old-fashioned s^ate^y and weapons.
3 ^ / ^
our nation over an extended period mast disc r^s. y
yr owing e c on omy•
expanding economy promises greater income vith lesser rates of
tax, we will look forward to further reductions in our tax
structure, distributed as fairly as possible among all taxpayers.
The expectation of further tax reduction and the maintenance of sound fiscal policies are firm foundation stones
creating greater confidence in our future prosperity.
These, then, have been fine, worthwhile accomplishments
for the good of the nation, Its economy, and Its future.

They

have been accomplished without fanfare or sensational controversy.
The'"people aroiindL the President are not. those who

°]^^yy^

pUblUcly fbr the aake of getting into .prlnt^J In the Cabinet
and in the Agency heads In this Administration, there exists a
wonderful team spirit which has resulted in real accomplishment
with few headline battles.
The role which the government can play in the economic
affairs of the nation should be limited.

Government manipulation

is the antithesis of a free America, and encroachment by government In restricting the freedom of its citizens should be
limited to doing, as Lincoln said, "for a community of people
whatever they need to have done, but cannot do at all, or
cannot so well do for themselves - - i n their separate and
individual capacities.

In all that the people can individually

do for themselves, government ought not to interfere."

113

- o In fiscal 1956, spending will be almost §12 billion less than in
1953*

We have not yet balanced the budget. We could have, done so in

195^-* but a big tax cut was more stimulating to aftJpio'roaoiii^gf economy
and we believed that it was better for the people to have more of
their own money left with them to spend, as they thought best, rather
than to have the government spending it for them.

We have cut the

deficit from, more than $9 billion in fiscal 1953 to what we estimate
will be less than $2i billion in 1956. We are still a year and a half
away from the end of-that period, and we have every hope of cutting
this deficit even further if some development elsewhere in the world
does not upset our planso
There is nothing in the Formosa situation or elsewhere in the
world which up to this moment has altered our budget program for
reduced expenditures in the year to come. And reduced expenditures
do not n<rigt?aoor 1 ,ly mean reduced defenses.
A
As the President has said, the United States is in a stronger
position to defend itself against aggression than it was two years
ago. The Defense Department has developed a better balanced, more
mobile and flexible and effective defense establishment at lower
cost to the taxpayers*
Progress has been made in reducing waste and extravagance*
Obsolete equipment and supplies are being eliminated.

There is

much left to be done, but that does not alter the fact that much has
already been accomplished.

We have a far better balanced program*

We are making progress In real unification in the armed services, so
that competition between them is less likely to duplicate efforts
and expenditures that squander both tax money and our national
resources.

Greater unity adds strength to our defense position.

We can and we must spend^whatever is needed for our security;
But we know that real security does not
result simply from spending huge amounts of money.

The worth of

our defense must be measured not by its costs but by its wisdom.

- 5This is well illustrated by the issue and highly successful.
placement only a few days ago of nearly two billion dollars in
lj.0-year 3% bonds. They are the longest bonds that have been
sold by the government since an issue to.pay for the Panama
Canal in 1911.
There is nothing academic about the importance of keeping
inflation locked out* The value of earnings and savings can
be protected in no other way. Just realize that 55 out of every
100 families in America now earn more than ^[j.,000 a year as
jt^frj-y.'i^ -**ww w-£&u3tv GJ&vttd •.!*A-»,-.^.

compared with only 10 out of 100 earning $4-* 000 a year in terms'^
A
1
of today's j. i ii i IjO \t\ n J^IMJJJ"! .JI And recall the millions of
owners of their homes, accounts in savings banks, savings
bonds, insurance policies, and pension*, of which I spoke just
a moment ago. Because this nation has quietly become a nation
of "haves" rather than "have nots," inflation must stay checked
to protect the earnings and savings of millions of Americans.
y-

We had a cash balance between money collected from the
public and money paid out by the government last year. Although
we will not have a cash balance this year, we are estimating
a small surplus in the fiscal year ahead. The total debt has
continued to grow because of the large deficit we inherited in
our first year in office and subsequent deficits*even though
they have been much smaller. But the inflationary effect of
deficit financing has been almost wholly eliminated^*
U^-^?nHfct3d*n^ mis t of
the increase in debtJ£kfts**fce«iU'financed' by securities issued to
government trust funds rather than borrowing from, the public.

tiftovlag so as to be as careful as possible feonceEfg its'
effect upon the constructive course of the economy.

- 4Our nation has made the transition from a wartime high to
a lower level of government spending without a major economic
upset.

This transition was helped substantially by heavy tax

cuts and other moves stimulating confidence.
While there is still high tension in many places, there
is no armed warfare between major powers at any point on the
globe as of this moment.

There is peace —

uneasy as it is —

as far as American fighting men are concerned.
has halted.

War in Korea

War in Indo-China has ceased.

The present Improved relationships in many places throughout the world have been achieved by ceaseless and dedicated
pursuit of solutions for the vexing and serious widespread
international problems.

It is a treacherous path.

Bold

risks must sometimes be taken, but success to date is high
proof of the competence and wisdom of the policies which have
been adopted in wrestling with this problem ©f preserving the
peace and making it more secure.
Inflation has been stopped.

In the past two years the

value of the dollar has changed only one-fifth of one cent.
This compares with a drop in the value of the dollar from 100
cents in 1939 to only 52 cents in January 1953." All departments and many people In government have been working hard for,
and insisting upon getting, our federal spending under control.
Deficits —

which lead to more borrowing and so to inflation —

have been cut substantially.
The Federal Reserve System has acted promptly, courageously*
and wisely to adopt monetary and credit policies which have met
the needs of the economy while walking the fine line between
deflation and inflation, j And the Treasury has done Its bit in

- 3What has been done in encouraging initiative and enterprise
has not been sensational or dramatic.
to every American in his daily life.

But it has been important
It is important to the

standard of living of every American worker and his loved ones.
And it is vitally important to the defense of all Americans
against any possible enemy attack, for the power and strength of
American industrial capacity is the very foundation of our security
It is often true that "good news" is "no news" to attract
public attention in the daily news outlets of press, radio, and
TV.

Yet the quiet, undramatic, progressive developments that

are going on in America —

without making sensational news —

are important for the present and future of our people.
I have no quarrel with what makes news.

I make these

observations only as a reason for talking a little tonight
about some of the constructive things that have been done
during the past two years —

important things which are

worth mentioning because they do not draw the attention that
controversy and violence do.
What are some of these unspectacular things that this
Administration has been helping to accomplish during the past
two years?
The undramatic but steady and healthy progress which has
been going on in this country has increased the confidence
of all Americans in the possibilities of our future.

This

increasing confidence is the most Important stimulant to the
development of the strength of our nation's economy, with the
careful and quiet assistance of an administration which knows
that government can do relatively little except to help to
properly set a stage upon which free vigorous Americans can
perform.

- 2 choosing —

Jobs that they are free to leave or change if and

whenever they so desire.

There are no headlines to tell you

that about 55 percent of the k7 millions of families in
America own their own homes, that Americans have savings
of $80 billion in life insurance policies; almost $50 billion
in U. S. Savings Bonds; and $25 billion in retirement pension
funds.

There are no headlines to remind you that stringent

wartime government controls no longer hamper or restrict the
individual or the businessman.

And there are no headlines

to laWfa herald the stirring return of confidence of Americans
in their government, in each other, and in our ability and
strength to do whatever may be required of us in any emergency.
I am even more encouraged to talk about these simple
principles that have made our country great when I read over
the list of names of those who have been previous recipients
of the William Fenn Award, showing that the Philadelphia
Chamber of KK»fflfSy.K Commerce over the years has been honoring
men who stand for the same principles of free competitive
enterprise and initiative which we now believe are basic to
our American way of life -- the way of life which has fret to
be surpassed anywhere in this world of ours.
It has been a dedicated goal of the Eisenhower Administration to keep alive and vigorous the priceless principles
But
of free, competitive enterprise and initiative, /we must do
more than keep them alive and vigorous.

We must keep them

growing and always developing the new things and the better
ways of doing things which have made this

f "I J**

LSJ

J CT'

DRAFT - Tuesday MoHttn*"*^j

«***^0^«i,*ymarks by Treasury Secretary Humphrey
(following receipt of the 1954 William Penn Award
of The Chamber of Commerce of Greater Philadelphia),
Wednesday, February 16, 1955* a4uatoi>fc-7« QQ jJi-W*r
Bellevue-Stratford Hotel, Philadelphia, Pa.

,S,4SMIU

Ladl<

I am deeply honored to receive the 1954 Willian Penn
Award of the Chamber of Commerce of Greater Philadelphia.
It is a great privilege for me to receive this honor as a
member of President Elsenhower's Administration.
I am going to talk to you tonight not as Secretary of
the Treasury, not as a Cabinet officer, or even as a businessman
who is now a bureaucrat.

I will talk rather as a friend and

fellow-citizen and a taxpayer who shares with you the responsibility of good government, of keeping America the land of
opportunity—the land where the economy of today must build
for the economy of tomorrow by its wisdom, its soundness,
and its farsightedness. We must build a world with more and
better opportunities for our children and our children's
children and not a world that will take opportunity away from
them.
The problems and accomplishments I speak of tonight are
the problems of every citizen, and the accomplishments are
the work of all who, by their own efforts, have helped to
build soundness and opportunity by hard work and honest
endeavor.
I am going to talk to you tonight not of headlines,
controversy, and crises, but of the quiet, undramatic,
progressive developments that are going on all around us ID
America.

There have been no headlines to tell you that more

^ W

*l 7 t*

rr>

- , , - -rue*..,

n^r^rm^

jgppp^Fgfrt-lremarks by Treasury Secretary Humphrey
(following receipt of the 1954 William Penn Award
of The Chamber of Commerce of Greater Philadelphia),
Wednesday, February 16, 1955* mthUL\mm\m\Mf*J^
Bellevue-Stratford Hotel, Philadelphia, Pa.

I am deeply honored to receive the 1954 WillIan Penn
Award of the Chamber of Commerce of Greater Philadelphia.
It is a great privilege for me to receive this honor as a
member of President Eisenhower's Administration.
I am going to talk to you tonight not as Secretary of
the Treasury, not as a Cabinet officer, or even as a businessman
who is now a bureaucrat.

I will talk rather as a friend and

fellow-citizen and a taxpayer who shares with you the responsibility of good government, of keeping America the land of
opportunity--the land where the economy of today must build
for the economy of tomorrow by its wisdom, its soundness*
and its farsightedness.

We must build a world with more and

better opportunities for our children and our children's
children and not a world that will take opportunity away from
them.
The problems and accomplishments I speak of tonight are
the problems of every citizen, and the accomplishments are
the work of all who, by their own efforts, have helped to
build soundness and opportunity by hard work and honest
than 60 million Americans are working at Jobs of their own

TREASURY DEPARTMENT
Washington

FOR RELEASE AT 6 P.M., EST
Wednesday, February lb, 1955
Remarks by Treasury Secretary Humphrey
•{following receipt of the 19$y William Penn
Award of The Chamber of Commerce of Greater
Philadelphia),. Wednesday, February 16, 1955*
Bellevue-Stratford Hotel, Philadelphia, Pa.,

I am deeply honored to receive the 195'}- William Penn Award
of the Chamber of Commerce of Greater Philadelphia. It is a
great privilege for me to receive this honor as a member of
President Eisenhov/er' s Adminis trat ion.
I am going to talk to you tonight not as Secretary of the
Treasury, not as a Cabinet officer, or even as a businessman who
is now a bureaucrat. I will talk rather as a friend and
fellow-citizen and a taxpayer who shares with you the responsibility of good government, of keeping America the land of
opportunity-~the land where the economy of today must build for
the economy of tomorrow by Its wisdom, its soundness, and its
farsightedness. We must build a world with more and better
opportunities for our children and our children's children and
not a itforld that will take opportunity away from them.
The problems and accomplishments I speak of toniyht are
the problems of every citizen, and the accomplishments are the
work" of all who, by their own efforts, have helped to build
soundness and opportunity by hard work and honest endeavor.
I am going to talk to you toniyht net of headlines, controversy, and crises, but of the quiet, undramatic, progressive
developments that are going on'all around us in America,, There
have been no headlines to tell you that more than 60 million
Americans are working at jobs of their own choosing -- jobs that
they are free to leave or change if and whenever they so desire.
There are no headlines to tell you that about 55 percent of the
k7 millions of families in America own their own homes, that
Ai..erleans have savings of V S0 billion in life insurance policies;
almost t50 billion in U. S. Savings Bonds; and y2j? b i i n c n _ n
retirement pension funds. There are no heallines to remind
you that stringent wartime government controls no longer hamper y
or restrict the individual or the businessmen, -nd ^nere are
\
no headlines to herald the stirring return of conj.L-ier.ce ^
Americans in their government, in each ct.-.or, ana in our ao.iity
and strength to do whatever may be recuirei of us in any emergenc

H-715

- 2 I am even more encouraged to talk about these simple principles that have made our country great when I read over the
list of names of those who have been previous recipients of the
William Penn Award, showing that the Philadelphia Chamber of
Commerce over the years has been honoring men" who stand for
the same principles of free competitive enterprise and initiatiye
which we now believe are basic to our American way of life — the
way of life which has yet to be surpassed anywhere in this world
of ours.
It has been a dedicated goal of the Eisenhower Administration
to keep alive and vigorous the priceless principles of free,
competitive enterprise and initiative. But we must do more than
keep them alive and vigorous. We must keep them growing and
always developing the new things and the better ways of"doing
things which have made this nation great*
What has been done in encouraging initiative and enterprise
has not been sensational or dramatic. But it has been important
to every i-imericaxi in his daily life. It is important to the
standard of living of every American worker and his loved ones*
And it is vitally important to the defense of all Americans
against any possible enemy attack, for the power and strength of
American industrial capacity Is the very foundation of our security.
It is often true that "good news" is "no news" to attract
public attention in the daily news outlets of press, radio, and
TV. Yet the ouiet, undramatic, progressive developments that
are going on in America — without making sensational news -- are
important for the present and future of our people.
I have no quarrel with what makes news. I make these
observations only as a reason for talking a little tonight about
some of the constructive things that have been done during the
past two years — important things which are worth mentioning
because they do not draw the attention that controversy and
violence do.
What are some of these unspectacular things that this
Administration has been helping to accomplish during the past
two years?
The undramatic but steady and healthy progress which has
been going on in this country has increased the confidence of
all Americans in the possibilities of our future, This increasing
confidence is the most important stimulant to the development
of the strength of our Nation's economy, with the careful and
quiet assistance of an administration which knows that government
can do relatively little except to help to properly set a sta.ye
upon which free vigorous Americans can perform.

- 3
Our Nation has made the transition from a wartime hi eh to
a lower level of government spending without a major economic
upset. This transition was helped substantially by heavy tax
cuts and other moves stimulating confidence.
Vihile there is still high tension in many places, there is
no armed warfare between major powers at any point on the globe
as of this moment. There is peace -- uneasy as it is -- as far
as American fighting men are concerned. War in Korea has halted.
V<ar in Indo-China has ceased.
The present improved relationships in many places throughout
the world have been achieved by ceaseless and dedicated pursuit
of solutions for the vexing and serious widespread international
problems. It is a treacherous path* Bold ris;<3 must sometimes
be taken, but success to date is high proof of the competence
and wisdom of the policies which have been adopted in wrestling
with this problem of preserving the peace and making it more secure.
Inflation has been stopped. In the past two years the value
of the dollar has changed only one-fifth of one cent. This
compares with a drop in the value of the dollar from 100 cents in
1939 to only $2 cents in January 1953» All departments and many
people in government have been working hard for, and insisting
upon getting, our federal spending under control. Deficits <— which
lead to more borrowing and so to inflation -- have been cut
substantially,
The Federal Reserve System has acted promptly, courageously,
and wisely to adopt monetary and credit policies which have met
the needs of the economy while walking the fine line between
deflation and inflation. And the Treasury has done its bit in
halting inflation -- and avoiding deflation — by doing its
borrowing so as to be as careful as possible concerning its
effect upon the constructive course of the economy.
This is well illustrated by the Issue and highly successful
placement only a few days ago of nearly two billion dollars in
40-year 3% bonds* They are the longest bonds that have been
sold by the .government since an issue to help pay for the Panama
Canal in 1911a
There is nothing academic about the importance of keeping
inflation locked out. The value of earnings and savings can be
protected in no other way. Just realize that 55 out of every
100 families in America now earn more than V.LL,000 a year as
compared with only 10 out of 100 earning y!y,000 a year early in the
century in ten. s of today's nrices. And recall the millions of owners
of their homes, accounts in savings banks, savings bonds,
insurance policies, and pensions, of which I spoke just a moment
ago. Because this Nation has quietly becone a IT at ion of "haves"
rather than "have-nots/' inflation must stay checked to protect
the earnings and savings of millions of Americans.

* no
AM.

'—

-ItWe had a cash balance between money collected from the
public and money paid out by the government last year. Although
we will not have a cash balance this year, we are estimating a
small surplus in the fiscal year ahead. The total debt has
continued to grow because of the large deficit we inherited
in our first year in office and the subsequent deficits, even
though they have been much smaller. But the Inflationary effect
of deficit financing has been almost wholly eliminated now that
most of the increase in debt is being financed by securities
issued to government trust fund's rather than borrowing from the
publie.
In fiscal 1956, spending will be almost %12 billion less
than in 1953« We have not yet balanced the budget. We could
have done so in 195U-* but a big tax cut was more stimulating to
a growing economy and we believed that it was better for
the people to have more of their own money left with them to
spend, as they thought best, rather than to have the government
spending it for them. We have cut the deficit from more than
#9 billion in fiscal 1953 to what we estimate will be less than
$2-g- billion in 1956« We are still a year and a half away from
the end of that period, and we have every hope of cutting this
deficit even further if some development elsewhere in the world
does not upset our plans.
There is nothing in the Formosa situation or elsewhere
in the world which up to this moment has altered our budget
program for reduced expenditures in the year to come. And
reduced expenditures we make do not mean reduced defenses.
As the President has said, the United States is in a stronger
position to defend itself against aggression than it was two
years ago. The Defense Department has developed a better balanced,
more mobile and flexible and effective defense establishment at
lower cost to the taxpayers.
Progress has been made in reducing waste and extravagance.
Obsolete equipment and supplies are being eliminated, There is
much left to be done, but that does not alter the fact that
much has already been accomplished. We have a far better
balanced program. We are making progress in real unification in
the armed services, so that competition between them is less
likely to duplicate efforts and expenditures that squander both
tax money and our national resources. Greater unity adds strength
to our defense position*
We can and we must spend whatever is needed for our security;
that is our first concern, But we know that real security does
not result simply from spending huge amounts of money. The
worth of our defense must be measured not by its costs but by
its wisdom*

—

- 5The President's decisions on our defense forces are re cog-??
nition of the fact that in this age of almost unbelievable
developments in science and production techniques, we cannot have
a static defense committed to old-fashioned strategy and weapons.
Real security for our Nation over an extended period must also
rest upon a sound and growing economy*
As cuts in future expenditures all through the government's
operations come clearly into sight, and if at the same time our
expanding economy promises greater income with lesser rates of
tax, we will look forward to further reductions in our tax structure,
distributed as fairly as possible among all taxpayers „
The expectation of further tax reduction and the maintenance
of sound fiscal policies are firm foundation stones creating
greater confidence in our future prosperity.
These, then, have been fine, worthwhile accomplishments for
the good of the Fat ion, its economy, and its future. They have
been accomplished without fanfare or sensational controversy. In
the Cabinet and in the Agency heads in this Administration, there
exists a wonderful team spirit which has resulted in real
accomplishment with few headline battles.
The role which the government can play in the economic affairs
of the Nation should be limited. Government manipulation is the
antithesis of a free America, and encroachment by government in
restricting the freedom of its citizens should be limited to doing,
as Lincoln said, "for a community of people whatever they need to
have done, but cannot do at all, or cannot so well do for themselves -- in their separate and individual capacities. In all that
the people can individually do for themselves, government ought
not to interfere. "
The future of free America lies in the initiative, the
resourcefulness, the tenacity, daring, and courage of 160 million
Americans, each free to choose how best he can promote his own
interest and the interest and future of his loved ones in whatever
way he can best devise only so long as he does not interfere with
the rights of others. It Is the cumulative power of this great
effort which has made America great in the past ana which I am
convinced will drive us ahead in the future at an accelerated
pace in excess of anything we have ever known before.
You and I as citizens must participate in this great drive
toward a better America, As such a citizen, I am pleased and
proud to accept this fine award from the Chamber of Commerce of
Greater Philadelphia, and to receive it in recognition of the
contributions which President Eisenhower's Administration has
made to the advancement of the economy of this Nation.

oOo

United States and Peru. The Agreement was signed by W. Randolph Burgess,
Under Secretary of the Treasury for Monetary Affairs, on behalf of the United
States, and by Ambassador Berckemeyer on behalf of the Government of Peru
and the Central Reserve Bank ©f Peru*
Under the terms of the Agreement, the United States Exchange Stabilization Fund undertakes to purchase Peruvian soles up to an amount equivalent
to $12*$ million if the occasion for such a purchase should arise* The
Agreement is designed to assist in maintaining trade and payments between the
two countries substantially free from governmental restrictions and avoiding
unnecessary fluctuations in the rate of exchange*
The International Monetary Fund has also announced today the extension
of its stand-by arrangement with Peru under which the Monetary Fund agrees to

make available up to $12*5 million. The two agreements, therefore, can provide
a total of $25 million in stand-by resources*.
Peru's currency is freely convertible into dollars at a market rate of
exchange* Tfio"oxiftK«g®^ In 195U balance
was achieved in PeruTs commodity trade with other countries, and foreign
exchange reserves increased in the last half of the year*
Ambassador Berckemeyer stated that his Government intended to continue

the sound monetary and fiscal policies which have contributed to this improved
international position.

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Wednesday, February 16. 1955.

H-716

The Treasury Department today announced the signing of an
Agreement extending, for a period of one year, the 1954
Stabilization Agreement between the United States and Peru. The
Agreement was signed by W. Randolph Burgess, Under Secretary of
the Treasury for Monetary Affairs, on behalf of the United States,
and by Ambassador Berckemeyer on behalf of the Government of Peru
and the Central Reserve Bank of Peru,
Under the terms of the Agreement, the United States Exchange
Stabilization Fund undertakes to purchase Peruvian soles up to an
amount equivalent to $12,5 million if the occasion for such a
purchase should arise. The Agreement is designed to assist in
maintaining trade and payments between the two countries substantially free from governmental restrictions and avoiding unnecessary fluctuations in the rate of exchange.
The International Monetary Fund has also announced today the
extension of its stand-by arrangement with Peru under which the
Monetary Fund agrees to make available up to $12.5 million. The
two agreements, therefore, can provide a total of $25 million in
stand-by resources.
Peru's currency is freely convertible into dollars at a market
rate of exchange. In 1954 balance was achieved in Peru's commodity
trade with other countries, and foreign exchange reserves increased
in the last half of the year.
Ambassador Berckemeyer stated that his Government intended to
continue the sound monetary and fiscal policies which have contributed to this improved International position.

oOo

- 3-

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 k$k (b) and 1221 {$) of the Internal Revenue Code of
195-4 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. Htl8, 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.

- 2 -

xM
or in a like face amount of Treasury bills maturing

February 2k3 19$$

» Cash

ixW~
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 19$k. 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,

i£3

SxTOKira

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS, H-717
Thursday, February 17* 1955

«-f-w

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 February 2liP 1955 * in the amount of
I l.iU99t8l5«0Q0 » to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated February 2k, 19$$ , and will mature May 26, 19$$ , when the face
—

7-rr
tSLX

TSV

XXX

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, February 21, 19$$ •

tat
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

RELEASE MORNING NEWSPAPERS,
Thursday. February 17s 1955

H-717

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 February 24, 1955
in the amount of $1,499*815,000, to be issued on a discount basis '
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated February 24, 1955,
w h e n the face
and will mature May 26, 1955,
amount will be
payable without Interest, Tfaey 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, February 21, 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 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
price from
any one
bidder will
be
accepted
in full
at the average
(in three
decimals)
of accepted

- 2competitive bids. Settlement for accepted tenders In accordance
with the bids must be made or completed at the Federal Reserve Bank
on February 24, 1955* in cash or other immediately available funds
or in a like face amount of Treasury bills maturing February 24, 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, 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 economic down-turn of last year is behind us.

general, the economy is now moving upward on a bread fronto
There are some lines and areas which are still depressed,,
Unsolved problems still remain on which we are diligently
working. Unemployment in January was 3,300,000, an increase
of 500,000 over the previous month and an increase of 200,000
over January a year ago. But as concrete evidence of the
economy's upward movement, employment in January was 60,200,000,
or lj.00,000 higher than in January a year ago. The economy never
moves in a smooth straight line, up or down, but as long as our
broad movement is upward^ we are moving in the right direction.
If government, business, labor, farmers and all our citizens
remain both confident and reasonable in their demands upon the
whole economy, we should be able to maintain this upward trend,
and supply the rightful demands of an ever-growing population.

Laxaoie 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 economic down-turn of last year is behind us.

general, the economy is now moving upward on a bread fronto
There are some lines and areas which are still depressed0
Unsolved problems still remain on which we are diligently
working.

Unemployment in Januarv was 3.. 300.000. an increase

- 13 If the' great'Bulk of the American people are reasonably confident
of the future they will expand their activities, invoke new
initiative and try new ways of doing things*

As they continue

to find their confidence justified, they will not only save
money but will invest their savings.

This will provide the

funds to produce the tools and power for the new plants, new
equipmentf and new and better ways of making more things.
This will lead to greater production, .greater earnings of more
people to pay for more consumption of more things and so in
turn make more and better jobs as the years go by.
earn more only if he can produce more.
will all have more.

A man can

As we produce more we

If we maintain confidence in the stability

of our system, there will be more and cheaper goods produced
through more and better jobs and with more and better earnings
for both the workers and the investors.
€*„

¥hat is the economic outlook today?

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^ y "3

There is nothing academic about this point because America
today is a nation of earners and of haves rather than have-nots.
Most Americans today are saving several dollars a week out of
their pay and putting it in insurance policies, retirement funds,
and so forth.

The recurrence of inflation would rob millions

of people of their savings.

- 12 \

The Federal Reserve System must continue to use wisely its money
and credit responsibilities so that the economy of the nation can
operate with the minimum of regulation.

Savings must be protected.

Investment must be encouraged j ^ a great and ever-growing group §f
both large and small investors, and more and better jobs will be
A
created to produce more goods for better living for more and more
Americans.
Q.

Isn't a little inflation a good thing?

Wo, it is not, and such thinking is very dangerous.

I know

there are millions of Americans who are earning more dollars today
than they did 20 drears ago.

That's good.

In many cases there

is a real improvement in that they have better homes, automobiles,
and so forth.

But the fact that this increase In dollar income

has been accompanied by less value of the dollar must be considered.

In addition, the large numbers of persons on fixed

incomes and persons wh© have put aside savings for retirement
and old age have been cruelly hurt by inflation taking away 48
cents of each dollar they saved 15 years ago.
Fortunately, inflation has now been stopped.

As economists

of the American Federation of Labor put it recently, according to
press reports:

"Unionized labor fared better in 1954 on the wage

front than in any other postwar year.

Higher hourly wages and

stable living costs had given most workers their greatest postwar
gain in purchasing power.

This was true even though the average

pay rise of 5-9^ per hour was modest in comparison with increases
in previous years.

Last year the wage-earner got the full benefit

of a fatter pay envelope.
much of his gain.''

In other years inflation gobbled up

- 12A Q.

What is the prospect for more jobs in this country?

The prospect for jobs is very closely related to what I
have just been talking about. Probably the most important
thing in promoting a high level of employment and business
activity Is confidence — people's confidence in our government,
confidence in each other, and confidence in the future.

134

§,. Will there be more long-term issues?
Yes. It is our f irr.. goal to continue to lengthen the
maturities of the debt as rapidly as appropriate conditions
permit. The issue last week was the second long-term issue
we have put out. The first was the 3i$> 30-year bond in the
spring of 1953* We will have more when and as the conditions
make it appropriate. We want to have varied types of issues
so that ail types of investors will have appropriate government
securities in which to put their funds. This will spread the
debt as widely as possible among the largest number of investors
so as to both finance the debt and promote sound economic growth.
Q,. Have we permanently stopped inflation? /
That depends upon the courageous, tenacious will of the
yfcr €*b>

T**-**

great majority of the American people.^ The lure of inflation
is something that is never permanently killed. It beckons
like a siren to enticing evil ways. Unless continuously
watchful resistance Is always exerted, the weak may fall for
its false promises of ease to riches and be led down the
primrose path to their ruin. It means the destruction of
savings, which make Investment possible, which in turn makes
jobs. When we jeopardize the making of ever more and better
jobs in America, we are ruining the very foundation of this
republic.
Our record of the past two years has been good. The value
of the dollar has changed less than one-fifth of one cent between
January 1953

d today. This compares with a loss of [j.8 cents

in the value of the dollar from 1939 to the time when this
Administration took office. Inflation will stay checked only

if we continue to actively resist the things which bring inflatior
about. Government must continue to cut down deficit financing
and to handle its debt in a prober way.

.7 ^s

- 10 criteria; and that if the collections made under that measure
of use are dedicated by the good faith of the Congress to neet
the debt obligations that are incurred, it is a perfectlv proper
way to independently finance debt required to pay for roads.
Moreover, the entire econory is benefited: First, by the construction of the road and its employment of men and materials;
second, by the use of the road and its benefits to transportation; and, third, by the liouidation of the cost of the
road through a user tax measured by gas and oil, rather than
by placing an additional burden on the back of the general
income taxpayer.
Q. Is the government improving its debt structure?
Yes. The enormous debt is too heavy in short-term maturities. These can be inflationary as well as the source of
trouble and possibly real danger to our whole economy under
t*«^k fro *****%** &&sv>jc~y^o^<^yy^y^o

certain circumstances at t imo o f—ge-n e w a 1 . , | We are making progres
slowly in lengthening the average maturities. ^Thrs—rs—bhc way
we must move so as not to upset our sensitive economy. The
l|0-year 3% bonds just issued have been a real ster» forward.
The issue was a great success. It has lengthened the average
maturity of our whole marketable debt from four years and two
months to four years and nine months. It is the longest
government bond issued since 1911 when some 50-year bonds were
issued to help finance the Panama Canal. This issue, like all
our financing operations, had to be rightly timed for market
condit "'ens which were appropriate to be sure that we did not
interfere ;ith other finanei:y requirements and so affect the
economic s'tuation in an unfavorable way.

. 9 -

ft**
This year we estimate a #§• billion-^iste deficit, which
we hope we may cut a little, as I have said. And in fiscal
1956 we are estimating a smaller deficit of $ 2 | billion or

less.

But regardless of size and the reductions in~.the deficits
A
A.
we are making, each deficit pushes up our debt still further,
and so involves the problem of what to do about the debt
limit.

It will be with us acutely again this June.

Is borrowing outside the debt limit necessarily

improper?
No, not necessarily.

If the government borrows outside

of the regular debt for something which must be paid back from
general funds, it is and would be Improper.

But if the

government Is acquiring or operating "earning assets," it is .
perfectly proper that they should be Independently financed.
The federal road program is a good example.

Some people have

suggested it should not be financed outside the present debt,
but I think it properly can be.
For instance, if a toll road is built and the tolls to
be collected, are sufficient to meet the debt service, both
principal and interest, required to amortize the debt that
is created to pay for the road, it is a perfectly clear case
of a proper independent financing of an earning asset. Now,
the toll to be collected can be based on weight or ^gzsX charge,
on a mileage basis, or on any other suitable measure of use,
including the consumption of oil and gasoline.
Some people have argued that while this is all true and
that such a situation would be entirely proper, the allocation
of oil and gas taxes to the payment of road bonds generally is

-8-

Why do you have to raise the debt limit if you are

really cutting spending as you claim?
When we came into office, there was ISSg^PwSn $8 billion
between the amount of the then-existing debt and the $275
billion debt ceiling.

Now, in the very first year, the pre-

vious budget which we inherited turned out with a deficit of
$9^

billion.

Actually there was little we could then do

beyond carrying out the spending that had already been planned
and paying the bills that were presented.
under

We had no leeway

the debt limit as we entered our first.fiscal year, 1954,

so we asked the Congress for an increase, as a matter of
prudence as we looked ahead.

As things came out in fiscal

1954, we cut the prior administration's $11 billion estimated
deficit (after an overestimate of revenue is figured in) to
$3 billion —

a cut of $8 billion.

But even then we still had

this $3 billion deficit that had to be put on top of the $9
billion deficit that we inherited from the preceding year.
These two things, plus the wide seasonal variations in collection of corporate income taxes, made some elasticity in the
debt limit absolutely

essential.

Congress recognized this and

last year authorized a $6 billion temporary increase in the
limit on the condition that the debt would go back to the
$275 billion limit at the end of this fiscal year.

3tf

- 7A While significant accomplishments have been realized
through foreign aid which are in the mutual interest of the
United States and other free countries, history has sadly
proved that large grant programs not only burden the* American
taxpayer but do not always produce either stronger or more
friendly allies. The entire program is under intensive,
continuing review to be sure that in the future both military
and economic assistance may be properly balanced as operating
parts of our foreign relations and defense programs.

•jM-^

it o°,

\ What we are doing is shifting some of tne empnasis rrom men
to machines, from the old concept of slugging it out with
masses of men to being ready to beat the enemy with mobility,
technological know-how and the most modern superiority of
weapons and equipment.
Q.

Can't we cut spending and balance the budget by just

eliminating all foreign aid?
!hat is a program which Is often suggested but is neither
simple nor wise to carry out if you just stop and think about it.
Certainly it is better to put military equipment in the hands of
our friends overseas so that they can help to defend themselves
if the need comes, rather than to also send American boys to
handle those weapons, with all the potential loss In lives and
national wealth, as well as the human anxiety that is involved.
Total expenditures for mutual security, including both military
assistance and economic support, are estimated at $4.7 billion
for fiscal 1956, Including the provisions for a program in Asia.
This compares with mutual security spending of $4.3 billion in
the present fiscal year.
The total cost included in this program for economic
assistance alone is $1,025 million in fiscal 1956 as compared
with $1,075 million in the present fiscal year.

The total estimated

expenditures in 1956, not Including obligations for the future,
for all Asian economic assistance will be about $585 million as
compared with about $500 million to be spent for economic aid in
Asia in the present fiscal year.

So, while estimated over

^ M "

tfyi actual spending for economic aid increases slightly in Asia,
the overall foreign economic aid program is still decreasing.
This is directly in line with this administration's conclusion
that we can best serve the cause of the free world by helping its
members to help themselves through selective development programs
in which private investment can play the major role.

~ 6and our present target for 1956 is an aimed strength of 2,860,000
men, or almost double the number of June 1950.

By the end of

fiscal 1956 we will have an Air Force of 131 wings and 975,000
men as compared with JL4.8 wings and only 14-11,000 men when the
Korean fighting began. The Navy and Marines will be second to
none (with 857,000 men).

And the Army will be 80 percent above

June 1950 in manpower (1,027,000 as compared with less than
593,000), but of even greater importance is the fact that
because of advances in the science of warfare, each Army division
will have 80 percent more firepower than a division of World
War II.
To support these forces, we will spend an estimated
I3I4. billion —

almost three times what we were spending when

Korea broke out.

So the total in both personnel and money going

Into our defense forces today is comparatively substantially
increased.
Q.

Have we cut too much from our security?

fid , The reductions that we have made in spending for defense
have not reduced our armed strength.

As the President has said,

we are increasing it; this Nation is in a stronger position to
defend itself today than it wastwo years ago. We have a mere
flexible and better balanced defense establishment tailored to
meet the requirements of future warfare and at lower cost to
the taxpayerso

Nothing that has happened^ in Formosa or

elsewhere in the world up to this very day has changed our
budget plans for lower spending in the year to come.

I say

this while emphasizing one basic fact: We can and will spend
whatever we need to spend for our security.

But this

Administration is operating in the firm knowledge that real
security comes not from merely spending billions of dollars
but rather from spending them wisely.

141

uhefpolicy of cutting taxes as we cut spending is a sound
policy.

The fact that consumer spending in the past year

was the highest that it has ever been is also good evidence
of how the tax cuts helped to make the successful economic
transition.
Q.

Will there be further tax cuts?

Not this year, if the Administration's recommendations
\

are accepted by the Congress.

The President has proposed

that the corporate rate of $2 percent, as well as excise taxes
which wo&ld go down on April 1, be continued for one full year.
We are asking this because we think the current status of the
economy will take it and because further tax reduction would
lead to too heavy deficit financing and a possible revival
of dangerous inflationary pressures.
This does not mean that taxes must not be cut further.
They are still too high for the long run and must come down.
As the President has said, we certainly hope that we can be
planning additional tax reductions a year from now.
C.

If you are going to cut taxes further next year,

how can you ever balance the budget?
That is a question we are often asked —

and it is an

important one. As I have said, we have not abandoned the
goal of balancing the budget, and neither have we stopped
cutting taxes. We ctan and will do both. We will keep trying
to cut government spending further.

At the same time our

-yy

expanding economy %an provide greater tax income even at
lower tax rates because it is on a broader base. As this
country continues to grow, there is no reason why we can't
have both a balanced budget and lower tax rates provided only
that world conditions continue to improve.
of World War II manufacture.

We now have 3,100,000 men in service

The fact that the economic downturn was so quicKiy cneeked and^Ea
we are now proceeding upwards on a broad front is proof that

- 3We must constantly have in mind in making these reductions the necessity of creating new employment to absorb
those who will thus be out ©f work.

There must be a great

transition — moving people from working for the government,
either directly or indirectly, into jobs working for the
production of goods for the general public.

We have gone

through two years ©f this transition with reasonable success.
We are striving continually to do better and to make the
transition with less loss of time for those directly involved.
Bu%~4Jk~±&~a matter that must be continually balanced and Is
an a^ded ajid most iii^orta^t reason why W e cannot switch from
years of deficit spending to a balanced budget in too short

tenitL^3aJa@«n^a& jT^ii
4£$\l£ we had not accompanied the heavy cuts we made in

p )
p

^\J

spending with substantial tax cuts, we would have balanced the *^L
budget. But we had to consider the proper balance in our

sensitive economy. We knew that heavy cuts in government
spending meant putting people out of work who either worked
d£r-g£jil^"for the ^government or whose income came from making
gOjad^uJbou^Tt^y^the^gevernment.

We believed that we should

cut taxes sharply and so give more people added money to spend

for themselves to help create jobs for those who previously got
their pay checks directly from the government or from government
purchases. We eut taxes in calendar year 1954 by a total ©f
$7.4 billion — the largest single dollar'tax eut in history.
We did this to help make possible the easier and quicker transitionin jobs from high government spending to lower government spending*

f) I) A -v-n ffct/^ ^ ^ - ^ t j ^ c ^ Z*+yyL*

yX/U^x. H^*-Jiy^?r-*n

/QL

*yy$ ^tyt>

|^-<nn^^L<^xi2^

O^^CK^

jfl'vfyf y<-**

yisJt^^f,

T$m&vw~~r&~~fare- uther tP^c4^]^-^Aa^--^ffl±g^?--aIways" "be kept—In
"Sfcd.

The government can only reduce its expenses by putting

people put -of' work,' either directly or indirectly.

This sounds,

harsh, but the fact is that the government spends most of its
money for only two things:

(1) the employment of people working

directly for the government, o.r (2) the purchase of goods which
are made by people w#rk 1 ng. f:OXL-nth^jaa who will be out of work
if the orders for the goods are cancelled.

Under these circum-

stances, 'it wotrld riot be prudent to .cut government spending
too fast, even if It were possible to do so.
<

<fxy^

•

aikssa^eah an&-4a©^^

cannot switch from

years of deficit spending to a balanced budget in too short
a time.

j fj

•

, -t-

^ try**.

?ky

JFlA/

Wtjy haven Lt you Jbeen afel^-Jfe^Jmlaja©e--the'Jbudget ?

y \
^1%%
4kA \ If we had not accompanied the heavy cuts we made in
~^\L
spending But
withwe
substantial
tax cuts,
we would
have balanced
budget.
had to consider
the proper
balance
in our the
sensitive economy.

We knew that heavy cuts in government

spending meant putting people out of work who either worked
direniCLy—for- the government or whose income came -from making
go^d^4>©u^stHby^tfoe—government.

We believed that we should

cut taxes sharply and so give more people added money to spend

for themselves to help create jobs for those who previously got
their pay checks directly from the government or from government
purchases.

We cut taxes in calendar year 1954 by a total ©f

$7.4 billion —

the largest single dollar*tax eut in history.

We did this to help make possible the easier and quicker transition'
in jobs from high government spending t© lower government spending.

144

QJ* vy^^^<uJt
- 2 Gentlemefi: rfhe stage is set.

The clock Is marking off

the secondsjrJme kleig lights are on.

The moderator is in

his place. %y& are ready for the first question.
Q,. Mr. Secretary, please tell us -- has the Administration
abandoned its program of trying to balance the budget?
The answer to that is absolutely no. We are working ms&y
hsggd, and with a reasonable amount of success, toward a balanced
budget.

The record shows that progress has been good, even

though we have not reached the goal.
deficits ^

agwa^-J-.Taa. * a:Ll^m^J^^m^M^i^

The government's

jnftpq-yirq o f KniJ--miLab--^^nT»

budgft-t I^-^e^-in^J^aXaaee Jfe have been cut substantially since
we came into office.
|9i billion.

The deficit in fiscal 1953 was almost

We could do very little about this in five short

months as actual spending plans were committed beyond recall.
However, the Eisenhower Administration did cut the deficit in
the next fiscal year, fiscal 195^1-, down to $3»1 billion -- or
two-thirds of the way toward a balanced budget.

It is true

that the deficit in the present fiscal year (fiscal 1955) looks
like %±2H5et #4-5 billion, but the new budget for fiscal 1956
again cuts the deficit to $2.1}. billion.

Both the present deficit

and the deficit for the next fiscal year may be less than now
estimated if revenue holds up and if we are able to cut spending
further, as we are continuously trying to do.
~~*
their pay checks directly from the government or from government
purchases. We eut taxes in calendar year 1954 by a total ©f
$7.4 billion —

the largest single dollar*tax eut in history.

We did this to help make possible the easier and quicker transition'
In jobs from high government spending to lower government spending.

14*-*

s ,

f . /fr/i/ii

^tl

A S of Wednesday, Feb. %fr9 195c

»»5555a^remarks by Treasury Secretary Humphrey
at Ij.8th Annual Convention of the National
Canners Association, Conrad Hilton Hotel,
Chicago, Illinois, at 10:00 a.m.. Saturday,
February 19, 1955.
£J7~
Mr. Willkie (Mr. E. E. Willkie, President of the National
Canners Association) and Gentlemen:
I am delighted to have the opportunity to meet with the
National Canners Association this morning.
I am greatly impressed with something I have just heard
about your association.

I am told that your financial state-

ment for the past year shows that you have operated with a
budget that is balanced.

To one who has the ambition to do

likewise but is beset with all of the problems of the Secretary
of the Treasury of the United States, that is something I
note with great envy.
I am also glad to have this opportunity to see so many of
my good friends of days that were more carefree and to have_
this chance to explain to such a fine group of leading
businessmen as are here this morning some of the simple
principles so vital to the successful operation of our economy
which the Eisenhower Administration is trying to perpetuate
|[|id strengthen.
We live in an age of change, devoted to the use of new
techniques. Now, as I am not an orator but at heart, and by
experience, just a businessman like yourselves, to whom deeds
mean more than words, I am going to choose a new technique, in
speaking to you this morning.

It is the technique of the

presently popular radio-TV quiz show.

By using questions

which I am. constantly being asked by Government officials,

TREASURY DEPARTMENT
Washington

FOR RELEASE AT 10 A.M. CST (ll A.M. EST)
Saturday, February 19, 1955.

Remarks by Treasury Secretary Humphrey
at 48th Annual Convention of the
National Canners Association, Conrad
Hilton Hotel, Chicago, Illinois, at
10 a.m., CST, Saturday, February 19,1955.
Mr. Willkie (Mr. E. E. Willkie, President of the National
Canners Association) and Gentlemen:
I am delighted to have the opportunity to meet with the
National Canners Association this morning.
I am greatly impressed with something I have just heard about
your association. I am told that your financial statement for the
past year shows that you have operated with a budget that is
balanced. To one who has the ambition to do likewise but is beset
with all of the problems of the Secretary of the Treasury of the
United States, that is something I note with great envy.
I am also glad to have this opportunity to see so many of my
good friends of days that were more carefree and to have this
chance to explain to such a fine group of leading businessmen as
are here this morning some of the simple principles so vital to
the successful operation of our economy which the Eisenhower
Administration is trying to perpetuate and strengthen.
We live in an age of change, devoted to the use of new
techniques. Now, as I am not an orator but at heart, and by
experience, just a businessman like yourselves, to whom deeds mean
more than words, I am going to choose a new technique in speaking
to you this morning. It is the technique of the presently popular
radio-TV quiz Show-

Bv usine: Question a

IA^K.T

^ m ^ncfori-i^

*r<
'jtr/f\r+*>***•?/f, yf y <i

»e?e«5aRemarks by Treasury Secretary Humphrey
at lj.8th Annual Convention of the National
Canners Association, Conrad Hilton Hotel,
Chicago, Illinois, at 10:00 a.m.. Saturday,
February 19, 1955*
£S7~
Mr. Willkie (Mr. E. E. Willkie, President of the National
Canners Association) and Gentlemen:
I am delighted to have the opportunity to meet with the
National Canners Association this morning.
I am greatly impressed with something I have just heard
about your association. I am told that your financial statement for the past year shows that you have operated with a
budget that is balanced. To one who has the ambition to do
likewise but is beset with all of the problems of the Secretary
of the Treasury of the United States, that is something I
note with great envy.
I am also glad to have this opportunity to see so many of
my good friends of days that were more carefree and to have
this chance to explain to such a fine group of leading
businessmen as are here this morning some of the simple
principles so vital to the successful operation of our economy
which the Eisenhower Administration is trying to perpetuate
•fid strengthen.
* We live in an age of change, devoted to the use of new
newsmen, Members of Congress, and people like yourselves, I
will try to inform you by my answers of our problems, our
accomplishments, and our hopes.

/-/

TREASURY DEPARTMENT
Washington

FOR RELEASE AT 10 A.M. CST (ll A.M. EST)
Saturday, February 19, 1955.

- 2 Gentlemen: The stage is set. The clock is marking off the seconds. Tne kleig lights are on. The moderator is in his place.
We are on the air and are ready for the first question.
Q. Mr. Secretary, please tell us — has the Administration
abandoned its program of trying to balance the budget?
The answer to that is absolutely no. We are working, and
with a reasonable amount of success, toward a balanced budget.
The record shows that progress has been good, even though we
have not reached the goal. The government's deficits have been
cut substantially since we carne into office. The deficit in
fiscal 1953 was almost $9-1/2 billion. We could do very little
about this in five short months as actual spending plans were
committed beyond recall. However, the Eisenhower Administration
did cut the deficit in the next fiscal year, fiscal 1954, down
to $3<,1 billion — or two-thirds of the way toward a balanced
budget. It is true that the deficit in the present fiscal year
(fiscal 1955) looks like $4,5 billion, but the new budget for
fiscal 1956 again cuts the deficit to $2.4 billion. Both the
present deficit and the deficit for the next fiscal year may be
less than now estimated if revenue holds up and if we are able to
cut spending further, as we are continuously trying to do.
Q. Why haven1t we cut government spending faster?
The government can only reduce its expenses by putting people
out of work, either directly or indirectly. This sounds harsh,
but the fact is that the government spends most of its money for
only two things: (l) the employment of people working directly
for the government, or (2) the purchase of goods which are made
by people who will be out of work if the orders for the goods are
cancelled. Under these circumstances, it would not be prudent to
cut government spending too fast, even if it were possible to do so.
Of course the most Important reason is that in these perilous
times our first obligation to the nation is to adequately provide
for our security. But there is another very important consideration
that must be prominently kept in mind.
We must constantly have in mind in making these reductions
the necessity of creating new employment to absorb those who will
thus be out of work. There must be a great transition — moving
people from working for the government, either directly or indirectly^ into jobs working for the production of goods for the
general public. We have gone through two years of this transition
with reasonable success. We are striving continually to do better
and to make the transition with less loss of time for those
directly involved. We cannot switch from years of deficit spending
to a balanced budget in too short a time.

- 3Q.
Why has this administration cut so much from the
defense budget ?

'•• 4 §

Sixty-five percent of our latest budget goes for major
national security programs. This amounts to about $40.5 billion
a year. Of the remaining $21.9 billion, $14.8 billion or 24 percent of tha total''budget goes for payment of interest on the debt
and'other charges fixed"by law.- That leaves only $7,1 billion, or
11 percent, of the total budget for other so-called civilian
agencies of government. So, it simply follows that if any
large cuts in spending are to be made, they must largely come -but carefully and wisely made — from the heavy total for defense.
Now, when we talk about "cutting" expense, letfs always
remember that does not mean cutting our effective defense. Let's
recall how much stronger we are today than we were when Korea
began in June of 1950. At the outbreak of Korea, our armed
forces had less than 1-1/2 million men,, equipped almost wholly
with material of World War II manufacture. We now have
3,100,000 men in service, and our present target for 1956 is an
armed strength of 2,860,000 men, or almost double the number of
June 1950. By the end of fiscal 1956 we will have an Air Force
of 131 wings and 975*000 men as compared with 48 wings and only
411,000 men when the Korean fighting began* The Navy and
Marines will be second to none (with 857,000 men). And the
Army will be 80 percent above June 1950 in manpower (1,027,000
as compared with less than 593,000), but of even greater
importance is the fact that because of advances in the science
of warfare, each Army division will have 60 percent more firepower than a division of World War II.
To support these forces, we will spend an estimated
$34 billion — almost three times what we were spending when
Korea broke out. So the total in both personnel and money going
into our defense forces today is comparatively substantially
increased.
Q. Have we cut too much from our security?
No.' The reductions that we have made in spending for defense
have not reduced our armed strength. As the President has said,
we are increasing it; this nation is in a stronger position to
defend itself today than it was two years ago. We have a more
flexible and better balanced defense establishment tailored to
meet the requirements of future warfare and at lower cost to
the taxpayers. Nothing that has happened in Formosa or
elsewhere in the world up to this very day has changed our
budget plans for lower spending in the year to come. I say this
while emphasizing one basic fact: We can and will spend whatever
we need to spend for our security. But this administration is
operating
in thebillions
firm knowledge
thatbut
real
security
not from
merely
them
wisely.
spending
of dollars
rather
fromcomes
spending

- 4 -

What we are doing is shifting some of the emphasis from men
to machines, from the old concept of slugging it out with masses
of men to being ready to beat the enemy with mobility,
technological know-how and the most modern superiority of weapons
and equipment.
Q. Can't we cut spending and balance the budget by just
eliminating all foreign aid?
That is a program which is often suggested but is neither
simple nor wise to carry out if you just stop and think about it.
Certainly it is better to put military equipment in the hands of
our friends overseas so that they can help to defend themselves
if the need comes, rather than to also send American boys to
handle those weapons, with all the potential loss in lives and
national wealth, as well as the human anxiety that is involved.
Total expenditures for mutual security, including both military
assistance and economic support, are estimated at $4.7 billion
for fiscal 1956, including the provisions for a program in Asia.
This compares with mutual security spending of $4.3 billion in
the present fiscal year.
The total cost included In this program for economic
assistance alone is $1,025 million in fiscal 1956 as compared
with $1,075 million in the present fiscal year. The total
estimated expenditures in 1956, not including obligations for the
future, for all Asian economic assistance will be about $535
million as compared with about $500 million to be spent for
economic aid in Asia in the present fiscal year. So, while the
estimated over the actual spending for economic aid increases
slightly in Asia, the overall foreign economic aid program is
still decreasing. This is directly in line with this
administration's conclusion that we can best serve the cause of
the free world by helping its members to help themselves through
selective development programs in which private investment can
play the major role.
While significant accomplishments have been realized through
foreign aid which are in the mutual interest of the United States
and other free countries, history has sadly proved that large
grant programs not only burden the American taxpayer but do not
always produce either stronger or more friendly allies. The
entire program is under intensive, continuing review to be sure
that in the future both military and economic assistance may be
properly balanced as operating parts of our foreign relations and
defense programs.
Q. In view of the big reductions in expenditures that have
been made could the budget have been balanced?
Yes.' If we had not accompanied the heavy cuts we made in
spending with substantial tax cuts, we would have balanced the
budget.
we had We
to knew
consider
proper
in our spending
sensitiveBut
economy.
thatthe
heavy
cutsbalance
in government

- 5meant putting people out of work. We believed that we should
cut taxes sharply and so give more people added money to spend
for themselves to help create jobs for those who previously got
their pay checks directly from the government or from government
purchases. We cut taxes in calendar year 1954 by a total of
$7.4 billion — the largest single dollar tax cut in history.
We did this to help make possible the easier and quicker transition
in jobs from high government spending to lower government spending.
The fact that the economic downturn was so quickly checked and that
we are now proceeding upwards on a broad front is proof that
the policy of cutting taxes as we cut spending is a sound policy.
The fact that consumer spending in the past year was the highest
that it has ever been is also good evidence of how the tax
cuts helped to make the successful economic transition.
Q. Will there be further tax cuts?
Not this year, if the Administration's recommendations
are accepted by the Congress. The President has proposed that
the corporate rate of 52 percent, as well as excise taxes
which would go down on April 1, be continued for one full year.
We are asking this because we think the current status of the
economy will take it and because further tax reduction would
lead to too heavy deficit financing and a possible revival of
dangerous inflationary pressures.
This does not mean that taxes must not be cut further.
They are still too high for the long run and must come down. As
the President has said, we certainly hope that we can he planning
additional tax reductions a year from now.
Q. If you are going to cut taxes further next year, how
can you ever balance the budget?
That is a question we are often asked — and it is an
important one. As I have said, we have not abandoned the goal
of balancing the budget, and neither have we stopped cutting
taxes. We can and will do both. We will keep trying to
cut government spending further. At the same time our expanding
economy can provide greater tax income even at lower tax rates
because it is on a broader base. As this country continues to
grow, there is no reason why we can't have both a balanced
budget and lower tax rates provided only that world conditions
continue to improve.
Let's notice here the difference between the administrative
and the cash budgets. As long as the government is not taking
out of the economy more than it spends, the government is not
increasing the money supply and thus being inflationary. So
when we have a balance in the cash budget (which includes the
receipts of the trust funds such as social security) we have
eliminated that particular inflationary pressure. We did have

- 6-

15.

a cash balance between money collected from the public and
money paid out by the government last year, although we will
not quite have a cash balance this year. We estimate a small
cash surplus in fiscal 1956. So that the inflationary effect
of deficit financing will have been almost eliminated during
the entire period this administration has been in financial
control.
Q. Why do you have to raise the debt limit if you are
really cutting spending as you claim?
When we came into office, there was $8 billion between
the amount of the then-existing debt and the $275 billion
debt ceiling. Now, in the very first year, the previous budget
which we inherited turned out with a deficit of $9-1/2 billion.
Actually there was little we could then do beyond carrying out
the spending that had already been planned and paying the bills
that were presented. We had no leeway under the debt limit as
we entered our first full fiscal year, 1954, so we asked the
Congress for an increase, as a matter of prudence as we looked
ahead. As things came out in fiscal 1954, we cut the prior
administration's $11 billion estimated deficit (after an overestimate of revenue is figured in) to $3 billion — a cut of
$8 billion. But even then x^e still had this $3 billion deficit
that had to be put on top of the $9 billion deficit that we
inherited from the preceding year. These two things, plus the
wide seasonal variations in collection of corporate income
taxes, made soma elasticity in the debt limit absolutely essential.
Congress recognised this and last year authorized a $6 billion
temporary increase in the limit on the condition that the debt
would go back to the $275 billion limit at the end of this fiscal
year.
This year we estimate a $4.5 billion deficit, which we
hope we may cut a little, as I have said. And in fiscal 1956
we are estimating a smaller deficit of $2-1/2 billion or
less. But regardless of the size of the deficit and the reductions
we are making, each deficit pushes up our debt still further,
and so involves the problem of what to do about the debt limit.
It wil] be with us acutely again this June.
Q, Is borrowing outside the debt limit necessarily
improper?
No, not necessarily. If the government borrows outside
of the regular debt for something which must be paid back from
general funds, it is and would be improper. But if the
government is acquiring or operating "earning assets," it is
perfectly proper that they should be independently financed.

- ")

- 7For example, if a toll road is built and the tolls to
be collected are sufficient to meet the debt service, both
principal and interest, required to amortize the debt that is
created to pay for the road, it is a perfectly clear case
of a proper independent financing of an earning asset. Now,
the toll to be collected can be based on weight or axle charge,
on a mileage basis, or on any other suitable measure of use,
including the consumption of oil and gasoline.
If the collections made under such a measure of use are
dedicated in good faith to meet the debt obligations that
are incurred, it is a perfectly proper way to independently
finance debt required to pay for roads, Moreover, the entire
economy is benefited: First, by the construction of the road
and its employment of men and materials; second, by the use
of the road and its benefits to transportation; and, third,
by the liquidation of the cost of the road through a user tax
measured by gas and oil, rather than by placing an additional
burden on the back of the general income taxpayer.
Q. Is the government improving its debt structure?
Yes. The enormous debt is too heavy in short-term maturities.
These can be inflationary as well as the source of trouble and
possibly real danger to our whole economy under certain
circumstances with so many short maturities, We are making
progress slowly in lengthening the average maturities, and we
must move slowly so as not to upset our sensitive economy. The
40-year 3% bonds just issued have been a real step forward.
The issue was a great success. It has lengthened the average
maturity of our whole marketable debt from four years and two
months to four years and nine months. It is the longest
government bond issued since 1911 when some 50-year bonds were
issued to help finance the Panama Canal. This issue, like all
our financing operations, had to be rightly timed for market
conditions which were appropriate to be sure that we did not
interfere with other financing requirements and so affect the
economic situation in an unfavorable way.
Q. Will there be more long-term issues?
Yes. It is our firm goal to continue to lengthen the
maturities of the debt as rapidly as appropriate conditions
permit. The issue last week was the second long-term issue
we have put out. The first was the 3-1/4$ 30-year bond in the
spring of 1953. We will have more when and as the conditions
make it appropriate. We want to have varied types of issues

- 8i si
--L w y-J

so that all types of investors will have appropriate government
securities in which to put their funds. This will spread the
debt as widely as possible among the largest number of investors
so as to both finance the debt and promote sound economic growth.
Q. Have we permanently stopped inflation?
That depends upon the courageous and tenacious will of the
great majority of the American people to do so. The lure of
inflation is something that is never permanently killed. It
beckons like a siren to enticing evil ways. Unless continuously
watchful resistance is always exerted, the weak may fall for
its false promises of ease to riches and be led down the primrose
path to their ruin. It means the destruction of savings, which
make investment possible, which in turn makes jobs. When we
jeopardize the making of ever more and better jobs in America,
we are ruining the very foundation of this republic.
Our record of the past two years has been good. The value
of the dollar has changed less than one-fifth of one cent between
January 1953 and today. This compares with a loss of 48 cents
in the value of the dollar from 1939 to the time when this
administration took office. Inflation will stay checked only
if we continue to actively resist the things which bring inflation
about. Government must continue to cut down deficit financing
and to handle its debt in a proper way.
The Federal Reserve System must continue to use wisely its
money and credit responsibilities so that the economy of the
nation can operate with the minimum of regulation. Savings must
be protected. Investment must be encouraged by a great and
ever-growing group of both large and small investors, and more
and better jobs will thus be created to produce more goods for
better living for more and more Americans.
Q. Isn't a little inflation a good thing?
No, it is not, and such thinking is very dangerous. I know
there are millions of Americans who are earning more dollars today
than they did 20 years ago. That's good. In many cases there
is a real improvement in that they have better homes, automobiles,
and so forth. But the fact that this increase in dollar income
has been accompanied by less value of the dollar must be considered. In addition, the large numbers of persons on fixed
incomes and persons who have put aside savings for retirement
and old age have been cruelly hurt by inflation taking away 48
cents of each dollar they saved 15 years ago.
Fortunately, inflation has now been stopped. As economists
of the American Federation of Labor put it recently, according to
press reports: "Unionized labor fared better in 1954 on the wage
front than in any other postwar year. Higher hourly wages and
stable living costs had given most workers their greatest postwar

- 91 R£
gain in purchasing power. This was true even though the^average
pay rise of 5^9$ per hour was modest in comparison with increases
in previous years. Last year the wage-earner got the full benefit
of a fatter pay envelope. In other years inflation gobbled up
much of his gain."
There is nothing academic about this point because America
today is a nation of earners and of haves rather than have-nots.
Most Americans today are saving several dollars a week out of
their pay and putting it in insurance policies, retirement funds,
and so forth. The recurrence of inflation would rob millions
of people of their savings.
Q. What is the prospect for more jobs in this country?
The prospect for jobs is very closely related to what I
have just been talking about. Probably the most important
thing in promoting a high level of employment and business
activity is confidence — people's confidence in our government,
confidence in each other, and confidence in the future.
If the great bulk of the American people are reasonably
confident of the future they will expand their activities, invoke
new initiative and try new ways of doing things. As they continue
to find their confidence justified, they will not only save
money but will invest their savings. This will provide the
funds to produce the tools and power for the new plants, new
equipment and new and better ways of making more things. This
will lead to greater production, greater earnings of more people
to pay for more consumption of more things and so in turn make
more and better jobs as the years go by. A man can earn more
only if he can produce more. As we produce more we will all
have more. If we maintain confidence in the stability of our
system, there will be more and cheaper goods produced through
more and better jobs and with more and better earnings for
both the workers and the investors.
Q. What is the economic outlook today?
The economic down-turn of last year is behind us. In
general, the economy is now moving upward on a broad front.
There are some lines and areas which are still depressed.
Unsolved problems still remain on which we are diligently working.
Unemployment in January was 3,300,000, an increase of 500,000 over
the previous month and an increase of 200,000 over January a year
ago. But as concrete evidence of the economy's upward movement,
employment in January was 60,200,000, or 400,000 higher than in
January a year ago. The economy never moves in a smooth straight
line, up or down, but as long as our broad movement is upward we
are moving in the right direction. If government, business,
labor, farmers and all our citizens remain both confident and
reasonable in their demands uponoOo
the whole economy, we should be
able to maintain this upward trend, and supply the rightful
demands of an ever-growing population.

7/f

Tmadag, February 22, .1955.

Th* Treasury Department annoimced last evening that tta tenders tar $1,500,000,000,
or th*r«abaut«, of 91-ciay Treasury bill® to be dated fmhtmry 2k *M to laature May 2d,
19$$9 mhlmh were offered on ftbmary 17, w«i*e opesed at the f^d#ral Eeg#.rv$ Banks mm
Wahrmtf 21.
Thft details of tala iasue are as foUoersi
Total a»H0d for - $291$$9?73,OG0
fatal aeoeFtad
- 1,500,11*1,000

(includes |X£3t§* f 000 entered cm

full at the average price shewn below)
Amrma prima
- 99*&$7/ Sfalvs&i&fe rata of dtftcsust appr^E* 1#3S$$ p w
Eaugt of accepted com^titive bids:
- /9.731 Equivalent rata of discsmnt a^rox. 1*061$ per
- 99M1
»
» s
B
«
1,381$ •

(2$ percent of the aiaount bid for at tha lm price was aeeeptad)

Total

Fedoral Jto»*nr«
Mstrisi
Boftan
law fork
PhUadtlphla
Glevgl&ad

2£,8?2,O0O
l,ftll,l58fOOO

66,993,000
13,2^2,000

Atlanta

m9mtooo
m>m*mo

St* Louis
Kansas 01%
Dallas
San fmmi&mo

26,203,000
3?r3$7#000
3S,32SiOOO

m*fo«s
TOttL fa*X£$# 773*000

12,790,000
£30,10§,00Q
9,237,000
63,998,000
IX,917,000
10,260,000
211,168,000
X6,321,000
26,203,0X5

33,637»ooo

xu,imooo
tX,^0f2rhXf000

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
^#uesday, February 22, 1955.

K-719

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated February 24 and to mature May 26, 1955, which were offered on
February 17, were opened at the Federal Reserve Banks on February 21,
The details of this issue are as follows:
Total applied for - $2,155,773,000
Total accepted
- 1,500,141,000 (includes $193,805,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.657/ Equivalent rate of discount approx.
1.355$ per annum
Range of accepted competitive bids:
- 99.731 Equivalent rate of discount approx.
High
l.C64$ per annum
Low
- 99.651 Equivalent rate of discount approx.
i#38l$ Per annum
(25 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
Accepted

Total
Applied for
$ 25,872,000
1,511,158,000
24,237,000
66,998,000
13,292,000
22,635,000
255,468,000
16,321,000
26,203,000
39,387,000
35,325,000
$2,155,773,000
118,877,000

0O0

22,790,000
930,108,000
9,237,000
63,998,000
11,917,000
20,260,000
211,463,000
16,321,000
26,203,000
33,637,000
35,325,000
$1,500,141,000
118,877,000

£EB 8 1855
TO: MB. BARTELT:
The following transactions were made in direct and guaranteed
securities of the Government for Treasury investments and other
accounts during the month of January, 1955s
Purchases

$25,270,000.00 /

Sales \ £ l. 2.276.630,00
$22,993,400.00
(Sgd) Char lei I. Brannar
Chief, Investments Branch
Division of Deposits & Investments

TREASURY DEPARTMENT
WASHINGTON. D.C

H
IMMEDIATE RELEASE,
Monday, J?mniT»y-ifc¥r 1'93S^

*%/r ^*t *f*f
During the month of'
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

0O0

IMMEDIATE RELEASE,
Monday, February 21, 1955.

H-720

During the month of January 1955,
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
$22,993,400.

oOo

v_/

- 4There are many other things I could tell you that the
able and loyal people in our Service have accomplished
during the past two years but I hope I have said enough
to convince you, as I am convinced, that we are now on
a firm and effective operating basis and have a solid
foundation for an Internal Revenue Service of the very
highest standards of efficiency and integrity.

(signed) T. Coleman Andrews
Commissioner

0O0

- 3On January 1, 1953, there were 21,490 disputed cases
pending before our Appellate people for decision. On
December 31, 195^, this number had been reduced to 9,213,
a decrease of 57 percent.
Even when a taxpayer does not agree with the Appellate
Division and files a petition with the Tax Court of the
United States he may still return before trial of the case
and reopen negotiations. In fact, most cases are being
settled before trial. In turn, this has resulted in
exceptional progress in reducing the docketed cases.
The number of docketed cases pending on January 1, 1953
was 10,214. On December 31, 19$4, the number had been reduced to 8,044, a decrease of 21 percent.
On the side of better service, we have taken steps this
year to provide greater facilities for helping taxpayers
fill out their own returns. Me also introduced this year
a new small card-type tax return for wage earners with
incomes of less than $5,000, This return, which has only
14 lines, will be used by millions of taxpayers.
As in the past, for those who use this return the
Service will compute their tax and send them a check, bill,
or "even" notice. All our tax forms are under continuous
study in an effort to make them more simple and understandable,
I think it is significant to note that while the total
personnel of the Service was reduced from 51,292 to 50,234
during the calendar year 1954, the number of revenue agents
was increased from 7,994 to 10,992.
Most of these additional agents, all of whom were
required to pass qualifying Civil Service examinations,
came from the Collection Division where they had been
doing audit work before ail audit responsibility was
consolidated in the Audit Division,
The over-ail drop in Service personnel results largely
from steps taken to Increase efficiency and improve
methods in our non-enforcement activities.
We are, as you know, faced this year with the
necessity for informing millions of taxpayers about the
requirements of the new Internal Revenue Code. This means
not only that we must take time out of our regular
activities to train our people in the provisions of the
new law but also that we are going to have to give much
more assistance to taxpayers than ever before.
These drains on our manpower may possibly result in
some leveling off, or even decline, in our enforcement work
during the next 2 or 3 months. Under the circumstances
this is unavoidable. We will, of course, do everything
within our power to minimize the effect of the drain.

c.2

- 2 I am citing these figures on a six-month basis because
we do not have strictly comparable figures as to the number
of audits for prior years. This is so because the audit
figures reported for prior periods include numerous
examinations which were merely checks of the mathematical
accuracy of the returns. These are not "audits" as we
conceive the term today.
Also, not all returns for prior years were
mathematically verified. Today mathematical verification
is required in ail cases. Some mistakes, of course, favor
the taxpayerj others favor the Government, Last year, on
balance, we collected nearly $48 million in extra taxes
from this work on 1953 returns.
Vie also are giving increased attention to individual
income tax returns that call for refunds. In 195^-, our
pre-reiund audits weeded out over $40 million of improper
claims.
In the fraud area, we are catching up with more tax
evaders. In calendar year 1954, 1,417 evaders were successfully prosecuted for criminal violations of the tax
laws. This was a 27 percent increase over 1953.
In our enforcement work, we have concentrated pretty
largely on our audit and tax-fraud programs. There is
another aspect of our enforcement activity, however, that
is important. That is the problem of the slow-paying
taxpayers. Here we needed a new approach.
We started out by overhauling our accounting system
so that we would have better information on our past-due
accounts. We worked on this new system during most of
1954, and its installation was completed by the first of
this year.
Under the old system we measured delinquencies only
when they reached the distress stage. Now we pick them
up immediately after the due date.
On December 31, 1954, our delinquent accounts totalled
$l,6l4 million. This large balance must be reduced and we
are taking vigorous steps to do just that.
That, in brief, is the enforcement picture. Now let's
look at some other important activities.
One essential of a good tax administration is prompt
settlement of disputes. Taxpayers must have this service
so they can budget their funds and make related business
decisions. Here we have made what I regard as outstanding
progress.

U. S. TREASURY DEPARTMENT
OFFICE OF COMMISSIONER OF INTERNAL REVENUE
WASHINGTON 25

February 18, 1955

MEMORANDUM FOR:

Honorable George M. Humphrey
Secretary of the Treasury

This month marks the second anniversary of my service
as Commissioner of Internal Revenue, and it has occurred
to me that this is an appropriate time to bring you up to
date on some of the highlights of our operation.
Two years ago the initial stages of the reorganization
of the Internal Revenue Service had been completed. However, the big job of realigning functions, defining
responsibilities, modernizing procedures, and instituting
proper controls remained to be done.
We took the first six months to appraise the plan,
concluded that it was basically sound, and, with your concurrence, decided to continue it with some necessary changes.
For example, a top-heavy administrative organization was
avoided by reducing the number of regional offices from
17 to 9.
The tedious task of making the reorganization work
was completed about July, 1954, and the bare blueprint
that we inherited became a dynamic, effective organization.
Nov/, then, how are we doing?
To answer that, we must look at the enforcement
figures. The vast majority of Americans play fair with
our system of voluntary self-assessment. However, this
willingness to do so is affected by our diligence in dealing with those who, intentionally or unintentionally, fail
to carry their share of the load.
In the last six months of calendar year 1954 the Service
audited 10 percent more returns than in the same period in
1953. At the same time, additional taxes produced by audit
and other enforcement "work increased from $644 million in
the last half of 1953 to $766 million in the last six months
of 1954. This is a step-up of over $120 million.

THE SECRETARY OF THE TREASURY
Washington

February 18, 1955
Dear Mr. Chairman:
Attached is a copy of a report from the
Commissioner of Internal Revenue, T. Coleman Andrews,
regarding the operations of the Internal Revenue
Service. I am submitting the report to your
Committee, as well as subsequently making it public,
in the belief that it is of general interest to see
how the Federal tax collecting agency has Improved
in the past two years.
It is a matter of great pride to me that the
Internal Revenue Service has improved notably in
two main respects: (l) in the increased effectiveness of its collection work; and (2) its better
day-to-day service to the tax-paying citizens of
our country.
I think the broad improvement which the
attached report shows on both these fronts is one
of which ail concerned can well be proud. The
helpful advice and consultations given by your
Committee have been of vital assistance In bringing about the improvements recorded in Commissioner
Andrews * report,
Sincerely,
(Signed) G. M, Humphrey

Honorable Jere Cooper
Chairman, Joint Committee on
Internal Revenue Taxation
Room 1107, House Office Building
Washington 25, D, C.

IMMEDIATE RELEASE

•• o»

RELEASE AM NEWSPAPERS
Wednesday, February 23, 1955

H- -~j ^/

The Treasury today made public the following letter of
transmittal, and a report from Commissioner of Internal Revenue,
T. Coleman Andrews, covering improvements in the Internal,Revenue
Service during the past two years:

our country.
I think the broad improvement which the
attached report shows on both these fronts is one
of which all concerned can well be proud. The
helpful advice and consultations given by your
Committee have been of vital assistance in bringing about the improvements recorded in Commissioner
Andrews * report,
Sincerely,

(Signed) G. M, Humphrey

Honorable Jere Cooper
Chairman, Joint Committee on
Internal Revenue Taxation
Room 1107, House Office Building
Washington 25, D, C,

TREASURY DEPARTMENT
WASHINGTON, D.C. N ^ s ^ ^
RELEASE AM NEWSPAPERS,
Wednesday, February 23, 1955.

H-721

The Treasury today made public the following letter of
transmittal, and a report from Commissioner of Internal
Revenue T. Coleman Andrews, covering improvements in the
Internal Revenue Service during the past two years:
February 18, 1955
Dear Mr. Chairman:
Attached is a copy of a report from the
Commissioner of Internal Revenue, T. Coleman Andrews,
regarding the operations of the Internal Revenue
Service. I am submitting the report to your
Committee, as well as subsequently making it public,
in the belief that it is of general interest to see
how the Federal tax collecting agency has improved
in the past two years.
It is a matter of great pride to me that the
Internal Revenue Service has improved notably in
two main respects: (l) In the increased effectiveness of its collection work; and (2) its better
day-to-day service to the tax-paying citizens of
our country.
I think the broad improvement which the
attached report shows on both these fronts is one
of which all concerned can well be proud. The
helpful advice and consultations given by your
Committee have been of vital assistance in bringing about the Improvements recorded in Commissioner
Andrews * report.
Sincerely,
(Signed) G. M. Humphrey
Honorable Jere Cooper
Chairman, Joint Committee on
Internal Revenue Taxation
Room 1107, House Office Building
Washington 25, D. C.

U. S. TREASURY DEPARTMENT
OFFICE OF COMMISSIONER 0? INTERNAL REVENUE
WASHINGTON 25

February 18, 1955

MEMORANDUM FOR: Honorable George M. Humphrey
Secretary of the Treasury
This month marks the second anniversary of my service
as Commissioner of Internal Revenue, and It has occurred
to me that this is an appropriate time to bring you up to
date on some of the highlights of our operation.
Two years ago the initial stages of the reorganization
of the Internal Revenue Service had been completed. However, the big job of realigning functions, defining
responsibilities, modernizing procedures, and instituting
proper controls remained to be done.
We took the first six months to appraise the plan,
concluded that it was basically sound, and, with your concurrence, decided to continue it with some necessary changes.
For example, a top-heavy administrative organization was
avoided by reducing the number of regional offices from
17 to 9.
The tedious task of making the reorganization work
was completed about July, 1954, and the bare blueprint
that we inherited became a dynamic, effective organization.
Nov;, then, how are we doing?
To answer that, we must look at the enforcement
figures. The vast majority of Americans play fair with
our system of voluntary self-assessment. However, this
willingness to do so is affected by our diligence in dealing with those who, intentionally or unintentionally, fail
to carry their share of the load.
In the last six months of calendar year 1954 the Service
audited 10 percent more returns than in the same period in
1953. At the same time, additional taxes produced by audit
and other enforcement work increased from $644 million ±n
the last half of 1953 to $766 million in the last six months
of 1954. This is a step-up of over $120 million.

- 2-

«*, L-' \s

I am citing these figures on a six-month basis because
we do not have strictly comparable figures as to the number
of audits for prior years. This is so because the audit
figures reported for prior periods include numerous
examinations which were merely checks of the mathematical
accuracy of the returns. These are not "audits" as we
conceive the term today.
Also, not all returns for prior years were
mathematically verified. Today*mathematical verification
is required in all cases. Some mistakes, of course, favor
the taxpayer; others favor the Government. Last year, on
balance, we collected nearly $48 million in extra taxes
from this work on 1953 returns.
We also are giving increased attention to individual
Income tax returns that call for refunds. In 1954, our
pre-refund audits weeded out over $40 million of improper
claims.
In the fraud area, we are catching up with more tax
evaders. In calendar year 1954, 1,417 evaders were successfully prosecuted for criminal violations of the tax
laws. This was a 27 percent increase over 1953.
In our enforcement work, we have concentrated pretty
largely on our audit and tax-fraud programs. There is
another aspect of our enforcement activity, however, that
is important. That is the problem of the slow-paying
taxpayers. Here we needed a new approach.
We started out by overhauling our accounting system
so that we would have better information on our past-due
accounts. We worked on this new system during most of
1954, and its installation was completed by the first of
this year.
Under the old system we measured delinquencies only
when they reached the distress stage. Now we pick them
up immediately after the due date.
On December 31, 1954, our delinquent accounts totalled
$1,614 million. This large balance must be reduced and vie
are taking vigorous steps to do just that.
That, in brief, is the enforcement picture. Now let's
look at some other important activities.
One essential of a good tax administration is prompt
settlement of disputes. Taxpayers must have this service
so they can budget their funds and make related business
decisions. Here we have made what I regard as outstanding
progress.

- 3** r-

On January 1, 1953, there were 21,490 disputed cases
pending before our Appellate people for decision. On
December 31, 1954, this number had been reduced to 9,213,
a decrease of 57 percent.
Fr^en when a taxpayer does not agree with the Appellate
Division and files a petition with the Tax Court of the
United States he may still return before trial of the case
and reopen negotiations. In fact, most cases are being
settled before trial. In turn, this has resulted in
exceptional progress in reducing the docketed cases.
The number of docketed cases pending on January 1, 1953
was 10,214. On December 31, 1954, the number had been reduced to 8,044, a decrease of 21 percent.
On the side of better service, we have taken steps this
year to provide greater facilities for helping taxpayers
fill out their own returns. We also introduced this year
a new small card-type tax return for wage earners with
incomes of less than $5,000. This return, which has only
14 lines, will be used by millions of taxpayers.
As in the past, for those who use this return the
Service will compute their tax and send them a check, bill,
or "even" notice. All our tax forms are under continuous
study in an effort to make them more simple and understandable,
I think it is significant to note that while the total
personnel of the Service was reduced from 51,292 to 50,234
during the calendar year 1954, the number of revenue agents
was increased from 7,994 to 10,992.
Most of these additional agents, all of whom were
required to pass qualifying Civil Service examinations,
came from the Collection Division where they had been
doing audit work before all audit responsibility was
consolidated in the Audit Division.
The over-all drop in Service personnel results largely
from steps taken to increase efficiency and improve
methods in our non-enforcement activities.
V.Te are, as you know, faced this year with the
necessity for informing millions of taxpayers about the
requirements of the new Internal Revenue Code, This means
not only that we must take time out of our regular
activities to train our people in the provisions of the
new law but also that we are going to have to give much
more assistance to taxpayers than ever before.
These drains on our manpower may possibly result in
some leveling off, or even decline, in our enforcement work
during the next 2 or 3 months. Under the circumstances
this is unavoidable. We will, of course, do everything
within our power to minimize the effect of the drain.

TO
- 4There are many other things I could tell you that the
able and loyal people in our Service have accomplished
during the past two years but I hope I have said enough
to convince you, as I am convinced, that we are now on
a firm and effective operating basis and have a solid
foundation for an Internal Revenue Service of the very
highest standards of efficiency and integrity.

(signed) T. Coleman Andrews
Commissioner

0O0

- 3 -

ISM

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

at which Treasury bills are originally sold by the United States is considered
be interest. Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code
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 hereu

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

•T7-2

- 2-

&£&

2 percent of the face amount of Treasury bills applied for, unless the tenders a
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 th
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 o
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 les

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 March 3* 19$$ , in cash or other immediately available funds

•

or in a like face amount of Treasury bills maturing

March 3, 1955

• Cash

_£3$$x

sale or other disposition of the bills, does not have any exemption, as such, an
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 princ

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

•; fl

mtfctm
TREASURY DEPARTMENT
Washington

\•

FOR RELEASE, MORNING NEWSPAPERS,
Thursday, February 2k, 1955

The Treasury Department, by this public notice, invites tenders for
$ 1,5Q0J0Q0I000 , or thereabouts, of 91 -day Treasury bills, for cash and
in exchange for Treasury bills maturing March 3f 1955 , iR the amount of
$ l«5QOy391«QQO , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated March 3% 19$$ , and will mature June 2, 1955 , 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,
(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, Mondayf February 28, 191

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 dea

in investment securities. Tenders from others must be accompanied by payment of

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Thursday, February 24, 1955.

H-722

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 March 3, 1955,
in the amount of $1,500,391,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated March 3, 1955,
and will mature June 2, 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, February 28,1955.
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

2 competitive bids. Settlement for accepted tenders in accordance
M thi! Q id i 3 Q 2c 3t b e m a d e o r completed at the Federal Reserve Bank
on March 3, 1955,
In cash or other immediately available funds
or in a like face amount of Treasury bills maturing March 3, 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 la made, as ordinary gain or
loss.
Treasury Department Circular No. 4l8, Revised, and this
notice, prescribe the term3 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.

materially injurious to th© domestic potash Uidmtrj* a To aaamm^
bm&m*
a&laa at drngXag prima tram a $temmml$Um$afarQlXa&- counter H J C ha. nvada*, '
i&ry ia thtir aotljatloa* that %hmy §m m aotlwtad and thmratara are, -5,
lpg& facto. lajmioaa* voul& bt, la atme%$ to aafca *. flacUag of injury la
tha prmm&mmm vitbaut tha aaoaaatty of twritoar lavaatlgatloa* t . it, w i l d ba
®@o0H«ry oaly to .#e$alftliii th&t malm* or aXtmrmHmv MAa at. .tftagdag m^aa
did in fact oe<mr with raapaet to such Cbaiii^l^#oiatrc^l»i lioimtiT* la
Warn vi®w of thaaa (kas^aeionara, tfala if not an ade^us,t© 1t*ala<i$a& whiek
to *tka a £lading of iajury at. %hla %&m tha
prmtkml-m®*^1®^^
whie& vomld bt- tfea eompl&t® molmlo® oi all ftorthar JLaparta of aiar&ata a$j
pataafe trmm-Jamfc &®mmy*
Howava?, thay do atroagly avta %)mt tafiay**) \ tapairta of inHaiia of pataah trm tha Soviat §om at Qarwmy ha clQftely
obaarvad, end that a r#viw of tha ajpaattea of ih# ®pplim%$&n of %ha 4&tl~
daaptag 4et @hoyld ha iaitlatad ia ife® avast that liapsiFta Ijw^i^jig *a|«*u
belov fair mlm
imrmm
te.aacfc m amtamt m to wkrrmt. *mh-a raYifuv.gd
or any of the
?h© divide opinio* of tb* CoattiMioa, a* ix*&t*at*d mamitm^ma^aftm,
of cours®, la ao fladlag of injury/
SIncaraly your*

cr)
Jfefear B*. Bross-a2?d
.-fihaittMui'' -the

February 25, 1955

Tha Honorable
the Secretary of the Treasury
Washington 25, B. G«
Bear Mr, Secretary:
Keference is made to tha latter from the Acting Secretary of
the Treesxiry, dated November 23, 1954, vhich isms received If tha Coaaission on Soveaber 26, 1954, advising that nmriate of'potash from tha Soviet
Zoa© of 0araaay la being or is likely to ha sold in the United States at
lass tha* fair value as that tarn is used in the A^t^^aping Act, 1921.
/

\ \

if tar investigation in accordance yltfe-the pspvleions of section
201(a) of tha antid^aping Act, 1921, tit©-So^iaission 1># anally divided on
tha question of whether tha domestic ^ t a ^ h Industry ie\b£iag or is likely
to ba injured by reason of the is^ppattajfe£oa\>:f Vaariate ofvpo%ash from tha
Soviat Hone of Sersany at less th*£n j^ir v^&W*
\
\ /
/
Soisaissioners Broasaxfi*.,?s3»^>t &*.o. Schreiber fled ia the affijaa-*
&tive*
fhey base their tpf^klmg oi£^tUeKt&G$ that sales or offer* for sale
of muriate of potash belofc :pd:F v^nsyN ifotcnx^otash * s produced in &
@of^xa_iat~eontrolled coi^ata?^ (last ^rkaw%^mdaT
the «ell-tostowa eonditiona
pramXamt ia siash a Qowiiif, reader jraejh mlm and resultant imports predatory ia nature and inspire^ W nlte^p.or' polities! purposes, the very
essence of the CtasnunistNpta^e ia>^t''it elisiiBstes the basic aeonoaic
factors which psT'tha] free Nsonnirles ^ f the vorld constitute an isportant
part of their/co#tg"'of pro4u«5t_con-':tbder a. system of free enterprise and tha
esf&oyer-empjjloy/e relationship*
Under this CSomsraniatie system &sy net
profit ensnijag [bears no -felptionship to the mine of the prodaet or to the
costs of production in a/ fr/e@ eeonoay.
gmeh sales, offers of sales* and
iaports, witlibm^vc^onsidera/iioaj) of costs of production and other eeomoaie
factors mnder ^raia£''trajde practices, obviomaly cause injury to the domestic
indnatry producin^-pot&'sh,
Cos&tissioners Byder, Icimlnater and Sutton find in the negative*
In connection ¥ith their finding they desire it to be noted that they are
fnHy cognisant of the possibility that sales or offers for sale of smriate
of potash belov fair value originating in a Sosaunist-controlled country
stueh as Hast ^sraany may be dictated hy other than eomsaercial considerations.
So convincing evidence has bee* presented, however, that snch sales
or offers for sale have, in fact, bee* dominated by such eoaja&dafatioaa or
have been predatory in their motivation. neither has there been convincing evidence that the effect of such sales or offers for sale bag bees

_<r_r

••-~ T-V..•!,..•/.//*~\^y*&&L^^,y

The Treasury Department today instructed Customs field
officers to discontinue the witholding of appraisement of
entries of muriate of potash from the Soviet Zone of Germany
because of suspected dumping and to process entries of such
merchandise wittfjput regard to any question of dumping.
The instructions were issued after notification by the
United States Tariff Commission of $ divided opinion in the
first case certified to it by the Secretary of the Treasury
under the Antidumping Act, 1921, as amended by section 301 of
the Customs Simplification Act of 1954. The divided opinion
means that the Commission has not made an affirmative finding
of injury, as required by the Antidumping A c t / ^ /&* fa~f*&J**^
In the Commission's letter of notification,. three
[j*$4, jf^-UAM-U A * 0 U

members, expressed the view that future imports of muriate of
potash from the Soviet Zone of Germany, a Communist-controlled
country, should be closely observed aa^that ^.xeview of the /
ap_3*lieatIon of the Antidumpteg Act should fee Initiated in the 7
.event- that impo-^fcs -involving ©ales belo^-fm^.^mt^^±ncre@LBed J
to such an extent as to warrant a review.^ 2Ble Treasury has
advised the Tariff Commission that it will maintain close
observation over such importsA^w«a^th<^ugh withelding of

The letter of notification from the Tariff Commission to
the Treasury Department is attached.

TREASURY DEPARTMENT

WASHINGTON, D.C.

IMMEDIATE RELEASE,
Friday, February 25 > 1955.

. H-723

The Treasury Department today instructed Customs field
officers to discontinue the withholding of appraisement of
entries of muriate of potash from the Soviet Zone of Germany
because of suspected dumping and to process entries of such
merchandise without regard to any question of dumping.
The instructions were issued after notification by the
United States Tariff Commission of an equally divided
opinion in the first case certified to it by the Secretary
of the Treasury under the Antidumping Act, 1921, as amended
by section 301 of the Customs Simplification Act of 195^.
The divided opinion means that the Commission has not made
an affirmative finding of injury, as required by the
Antidumping Act for the imposition of dumping duties.
In the Commission^ letter of notification, the three
members who found no injury expressed the view that future
imports of muriate of potash from the Soviet Zone of Germany,
a Communist-controlled country, should be closely observed
and that a review of the application of the Antidumping Act
should be initiated in the event that imports involving sales
below fair value increased to such an extent as to warrant
a review. Accordingly, the Treasury has advised the Tariff
Commission that it will continue to maintain close observation
over such imports.
The letter of notification from the Tariff Commission
to the Treasury Department is attached.

UNITED STATES TARIFF COMMISSION

February 25, 19^t?
The Honorable
The Secretary of the Treasury
Washington 25, D. C.
Dear Mr. Secretary:
Reference is made to the letter from the Acting Secretary
of the Treasury, dated November 23, 195^, which was received by
the Commission on November 26, 195^-, advising that muriate of
potash from the Soviet Zone of Germany is being or is likely to
be sold in the United States at less than fair value as that term
is used in the Antidumping Act, 1921.
After investigation in accordance with the provisions
of section 201(a) of the Antidumping act, 1921, the Commission is
equally divided on the question of whether the domestic potash
industry is being or is likely to be injured by reason of the
importation of muriate of potash from the Soviet Zone of Germany
at less than fair .value.
Commissioners Brossard, Talbot and Schreiber find in the
affirmative. They base their finding on the fact that sales or
offers for sale of muriate of potash below fair value, which
potash is produced in a Communist-controlled country(East Germany)
under the well-known conditions prevalent in such a country,
render such sales and resultant imports predatory in nature and
inspired by ulterior political purposes. The very essence of the
Communist State is that it eliminates the basic economic factors
which in the free countries of the world constitute an important
part of their costs of production under a system of free enterprise and the employer-employee relationship. Under this
Communistic system any net profit ensuing bears no relationship
to the value of the product or to the costs of production in a
free economy. Such sales, offers of sales, and imports, without
considerations of costs of production and other economic factors
under normal trade practices, obviously cause injury to the
domestic industry producing potash.
Commissioners Ryder, Edminster and Sutton find in the
negative. In connection with their finding they desire it to be
noted that they are fully cognizant of the possibility that
sales or offers for sale of muriate of potash below fair value
originating in a Communist-controlled country such as East Germany
may be dictated by other than commercial considerations. No
convincing evidence has been presented, however, that such sales
or offers
ations
or have
for sale
beenhave,
predatory
in fact,
in their
been motivation.
dominated by Neither
such considerhas

T-1

I0U
- 2there been convincing evidence that the effect of such sales or
offers for sale has been materially injurious to the domestic
potash industry. To assume, because sales at dumping prices from
a Communist-controlled country may be predatory in their
motivation, that they are so motivated and therefore are, ipsofacto,
injurious, would be, in effect, to make a finding of injury in the
premises without the necessity of further investigation. It would
be necessary only to establish that sales or offers for sale at
dumping prices did in fact occur with respect to such Communistcontrolled country. In the view of these Commissioners, this is
not an adequate basis upon which to make a finding of injury at
this time the practical consequences of which would be the complete
exclusion of all further imports of muriate of potash from East
Germany. However, they do strongly urge that future imports of
muriate of potash from the Soviet Zone of Germany be closely
observed, and that a review of the question of the application of
the Antidumping Act should be initiated in the event that imports
involving sales below fair value increase to such an extent as to
warrant such a review.
The divided opinion of the Commission, as indicated above,
results, of course, in no finding of injury.
Sincerely yours,
/ s / Edgar B. Brossard
Edgar B. Brossard
Chairman

0O0

«p1

Excise taxes were cut by a billion dollars on goods of everyday use.
And millions upon millions of Americans got tax reductions in relief
provisions for retired people, widows, working parents, and the sick or
hospitalized. These reductions were predominantly in the low-income group.
But even more important is the fact that this administration has been
slowly getting the government's financial affairs under control to help
the economy expand and so make constantly more and better jobs. / A job

is more important than a tax cut. J The investment of money in tools, plants

and equipment which makes jobs has been stimulated. Confidence has increased
in the government and in the maintenance of sound policies in the future
aaa\in the ability of our free economy under such policies to constantly
develope more and better jobs, better living, and more security for all.
The economic gains we are now enjoying are firm evidence of the fact that
this confidence is justified. /This/tax cut is entirely unjustified by
firm evidence at this time. If it is paid out of borrowed money requiring
additional deficit financing^which is all that is in sight at this momentj
y%y^UT
it can start us^back on the reckless road of inflation with all its cruel
thievery. J Inflation, rampant for several past years, has been checked.
*****

4A>#^0

The cost of living has not increased^for over two years as compared with the
fact that it almost doubled in the 1$ previous years. This has been worth
billions of dollars to millions of Am^ricans. j-m^lias^m^^Mt^^
the full purchasing value of^_S^rent earnings but has insured the

full worth of their savings in savings accounts, insurance policies, pension
fund*?

*=+r-

xrf+>. TTV,-;„V,

+I,

ti^Hm

&4*4 tU44* >C*4n*f W^-iy

runcis, etc., with which they are trying \o provide for their f u t u r e ^ J W
let ^always remember that it is not the rich who ^ protection against
inflation. It is the little folks - who suffer the most
*aa^3£3SBst hr inflation^yM^
j^hope the committee will vote out a bill excluding the #20 tax cut

-• 9.9

We cut planned spending in fiscal year 19$k by more than #10 billion.
We cut the deficit in fiscal 195U by more than $6 billion and so moved
two-thirds of the way toward a balanced budget. With these spending cuts
firmly in sight, we cut taxes by $l.k billion — the largest single tax
cut in history.
This administration advocates further tax cuts but only at such times
as we can see them justified by further cuts in spending and increased
revenues from economic growth that broadens the tax base.
^Jne President said in his State of the Union Message, *I am hopeful
that such reductions can be made next year." Both the President's budget
message and his economic report also expressed hope for a tax reduction
next year but only if justified by spending cuts and increased income from
A
economic growth.
To vote a #20 tax cut now — before we know we can afford it next
year — and without any indication of where the money is coming from is
nothing but an irresponsible gesture-based on hopes as yet entirely

unrealized which mi^tft well turn out to mean heading back into heavy defici
financing, with all the inflationary dangers that such borrowing means for
the American people.
There has been some misleading talk about justifying the #20 proposal
on the ground that the "little folks" have been entirely neglected. Letfs
look at the record. The #7.1* billion tax cuts last year included an
income-tax cut for every taxpayer in America. The cut averaged about
10 percent for all the lower income taxpayers but was scaled down to only
about 2 percent for the high-bracket incomes. These reductions applied
to every single taxpayer in the nation.

£3

4f dji^
9*^ /0;*e

A
& fy /0>s~k

Possible xemarks by Secretary Humphrey before the
Senate Finance Committee, 10:00 a.m., Monday,
February 28, 195S

Your committee has before it this morning a #20 tax cut which Mam
A

U?W<* J

)

hurriidly passed through the House of Representatives last week by a

scant margin of only five votes withawt hearinga a% time for thoughtful
consideration.
I strongly urge the Senate Finance Committee to reject this proposal
as completely contrary to the public interest.
President Eisenhower asked the Congress to continue responsible
financial management of the Governments affairs by extension of (1) the
corporate income tax rate at $2 percent and (2) the excise taxes on
tobacco, liquor, etc., which otherwise would go down automatically on
April 1. These two extensions woald give the government $2.8 billion in
1

• f-

revenue and ws»*id help to continue the progress toward lower deficit
financing and a balanced budget.
The #20 proposal has been hastily tacked on as an amendment to this £©>u^
bill.
This #20 proposal would give every taxpayer a reduction of #20 for
himself, his wife, and each dependent. It would take about five million
taxpayers completely off the federal income tax rolls. And it would lose
about #2.3 billion of revenue in a full year.
Now, why is this #20 proposal contrary to the public interest? It is
contrary to the public interest because it means reversing the successful
trend of the administration during the past two years in cutting deficits
and working towards a balanced budget. The budget deficit for fiscal year
*53 was almost #9-0/2 billion and a deficit projected for fiscal year *$k was
nearly #10 billion. j-f ^ 7 ^ V

184
TREASURY DFPARTMFNT
Washington
FOR RELEASE AT 10:00 A.M. H-72U
Monday, February 28, 19$$

Remarks by Secretary Humphrey
before the Senate Finance Committee
10:00 a.m., Monday, February 28, 1955
Your committee has before it this morning a $20 tax cut which was suddenly
sprung on the Jays and Means Coirimittee and hurriedly passed through the House
or Representatives last week by a scant margin of only five votes with only
a limited hearing and no time for thoughtful consideration.
I strongly urge the Senate Finance Committee to reject this proposal as
completely contrary to the public interest.
President Eisenhower asked, the Congress to continue responsible financial
management of the Government's affairs by extension of (1) the corporate
income tax rate at $2 percent and (2) the excise taxes on tobacco, liquor,
etc., both of which otherwise would go down automatically on April 1, These
two extensions will give the government #2.8 billion in revenue and will
help to continue the progress toward lower deficit financing and a balanced
budget.
The $20 proposal has been hastily tacked on as an amendment to this
sound bill.
This £20 proposal would give every taxpayer a reduction of £20 for himself,
his wife, and each dependent. It would take about five million taxpayers
completely off the federal income tax rolls. And it would lose about $2.3
billion of revenue in a full year.
Now, why is this $20 proposal contrary to the public interest? It is
contrary to the public interest because it means reversing the successful
trend of the administration during the past two years in cutting deficits
and working towards a balanced budget. The budget deficit for fiscal year
'53 was almost £9-1/2 billion and a deficit projected for fiscal year *$k
was nearly £10 billion.
We cut planned spending in fiscal year 19$U by more than £10 billion.
We cut the deficit in*fiscal 195U by more than £6 billion and so moved
two-thirds of the way toward a balanced budget. With these spending cuts
firmly in sight, we cut taxes by &l*k billion — the largest single tax cut
in history.
This administration advocates further tax cuts but only at such times
as we can see them justified by further cuts in spending and increased revenues
from economic growth that broadens the tax base.

- 2-

} C0

The President said in his State of the Union i.essace, "I an hopeful
that such reductions can be made next year.M Both the "resident's budget
message and his economic report also expressed hope for a tax reduction next
year but only if expressly justified by spending cuts an": increased, income
from econo:. ic growth.
To vote a .20 tax cut now — before we know we can afford it next
year — and without any indication of where the money is cominT from is nothing
but an irresponsible gesture. It is based only on hones as yet entirely
unrcaliz^d which may well turn out to mean heading; back into heavy deficit
financing, with all the inflationary dangers that such borrowing means for
the American people.
There has been some misleading talis: acout justifying the 23 oroposal
on the ground that the "little folks" have been entirely ne~lectee\ Lei's
look at the record. The wl.L billion tax cuts last year included an income-tax
cut for every taxpayer in America. The cut averaged about 10 percent for
E1-L the lower income taxpayers but was scaler down to only about 2 oercent
for the highest bracket incomes. These reductions applied to every single
taxpayer in the nation.
Txcise taxes were cut by a billion dollars on goods of every5 a-.r use.
And millions upon millions of Americans got tax reductions in relief orevisions
for retired people, widows, working parents, and the sick or hospitalized.
These reductions were predominantly in the low-income grout.
But even more important is the fact that this adninistraticn has been
slowly getting the government's financial affairs under control to help the
economy expand and so make constantly more and better jobs.
A job is more important than a tax cut.
The investment of money in tools, slants and equipment which makes jobs
has been stimulated. Confidence has increased in the government and in the
maintenance of sound policies in the'.future as well as in the ability of our
free economy under such policies to constantly develop more and better jobs,
better living, and more security for all. The economic gains we are now enjoying
ar» firm evidence of the f=ct that this confidence is justifiei.
This icrotosed tax cut is entirely unjustified by firm evidence at this
tire. If it is paid out of borrowed money requiring additional deficit financing,
which is all that is in sirht at this moment, it can start us rirht tack on
the reckless road of inflation with all its cruel thievery.
Inflation, rampant for several past years, has been checked. The cost
of living nas not increased now for over two years as couparec with the fact
that it al'iost doubled in the 15 previous years. This has been woetb billions
of dollars to idllions of Americans,

186
- 3This checking of inflation has protected not only the full purchasing
value of peoples' current earnings but has insured the full worth of their
savings in savings accounts, insurance policies, pension funds, etc., with
which they are trying to provide for their own and their loved ones futures.
And let us always remember that it is not the rich who need protection
against inflation. It is the little folks who suffer the most when inflation takes hold in a land.
I hope the committee will vote out a bill excluding the $20 tax cut
proposal.

oOo

m$mky?m,
Tuesday, ^B*rmhlr}$SS^_ i[rm

BHURISB -CE!~IHG

£7^3

Tha Treasury Department aiinoui^ced last evening that the teaiers for 11,500/300,000,

or thereabouts, of ^1-olay' Treasury bills to be dated mrah 3 and to aature June 2, I9$
which were offered on l^brtiary 2k, wsre opemd at the Federal Reserve Banks on
February 2d.
The details of this issue art as fallows:
total applied for - $2,333,t$39OQQ
fetal aeespted
- l,£oo,8JiXfO00

(iuelades $199M09QQ0
at&mrad an
a noncompetitive basis and accepted ia
full at the average price shown below)
Average pries
- 99*%2 Squiml^jst rate of discount approx. 1.U17^ per
totaaing *1,^0,000)
Range of accepted competitive v.ds? (^ctpting three
~ 99.66$ ^uivmlttat rata of discount apgirac. 1.3251 par
?J
H
~ ^.6hG
*
«
*
X.U8tf •

Ugh

urn

•

{S5 parosnt of the aaoixot bid for at the low price
F*4tvsl Reserve
fjlstltst

Boston
lew fork
COsfftfsat
Iliekuond
Atlanta
Chicago
St. Louis
Eimi©apolis
Kansas City
Dallas
San Franelas©

Total
Applied for

.¥••*•*

X99m90QQ
i,6?0,*$»oo©

m
9m$om
71,128,000
1$, 161*000
16,060,000
29Xf?SSf000
36#aj*»»ooo
i0,«jft,ooo
3f9$7$Bcm
3b,t)fc»ooo
KXUL

•2sH3^S3fO0O

Total

„

11,023,000
962*735,000
16,050,000
6S»068»CX30
lh,l6l,000
83,560,000
206,936,000
35,235,000
t f nt f oQo
35,380,000

afts

$^5OO,8WL»000

TREASURY DEPARTMENT

i**
8

WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, March 1, 1955.

H-725

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated March 3 and to mature June 2, 1955, which were offered on
February 24, were opened at the Federal Reserve Banks on February 28.
The details of this issue are as follows:
Total applied for - $2,333,253,000
Total accepted
- 1,500,841,000

(includes $199,050,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
fc>/
*&
Average price
- 99.642 Equivalent rate of discount approx.
1.417$ per annum
Range of accepted competitive bids: (Excepting three tenders
totaling $1,950,000)
- 99.665 Equivalent rate of discount approx.
High
1.325$ per annum
Low
- 99.640 Equivalent rate of discount approx.
1,424$ per annum
(85 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
$
19,523,000
1,670,055,000
41,050,000
71,128,000
15,161,000
26,060,000
291,988,000
16,195,000
10,432,000
35,575,000
34,214,000
101,872,000
$2,333,253,000
0O0

Total
Accepted
$

17,023,000
961,735,000
26,050,000
68,068,000
14,161,000
23,560,000
206,938,000
15,235,000
9,932,000
35,330,000
24,214,000
98,545,000

$1,500,841,000

While a U of these prepo@als are Important, the Reciprocal trade
Agreements legislation now befar* you is desirable bseawss it®
enactment will pmtmAX the U. S, t© follow a @ennd trada policy
consistent with both ®«r doiaeeti© and our international needs.
In conclusion, X cannot emphasis too strongly the importance
of mintalslng a high level of employment and economic aatlvi^r
right fsere in the tf# S. upon which the whole wer!<t depends. Serious
reversals here would have serloas unfortunate offsets throughout
the entire world*

es-

•gI weald like to mention ens ottosr breat ptiaeiola in connection
with the bill. Fro» the bnigetay- viewpoint* the President* s • trade
program shomld help .to tedttee' a©vernmsnt.expsneUtnres for foreign aid
over a period of time. 1;believe it is best,> where possible, for
foreign countries to earn their way, rather teas reoeiw aid from the
0. S. freasmry. this bill i® a farther step *» thatedirection*
The Treasury Oeperteent is .Mtiieljr.fMv]BlMv^;«tlMw:;-s^peete-ef the
President* s program to promote foreign trade and investment. Among
these is.a p*ef»essl revising somewhat earlier fraaswry reeomendations
whioh have previously been presented to the Congress and which have not
been finally considered because ©f the lade of tlae.
fie proposal will provide for Warn amendment of the standards
governing the valuation of l__perted articles, for the conversion of
currency into dollars for eastow valuation, and for the repeal of certain
obsolete provisions in the ©nstoms laws, the revision of the complex
valuation provisions of the present law to aake the process of appraisal
more prompt and efficient as w e H as sore essnereialljr reallstie is
partienl&rly Important.
Qm program for cmatows simplification and management improvement,
began by the Cnstows Simplification acta of 19^3 and I9$k, will continue.
Me expect to have some additional proposals for administrative improvement
to make to the Congress during the present setsioa.
In the field of taxation, consideration is again being given to
certain changes in the revenue laws with respect to taxation "of income
earned abroad, so as t© tax corporate business income fro* foreign
subsidiaries or branches at a rate Uj feroaatage points lower than the
rate on corporate domestic laces*, and to defer tax on foreign branch
income until it is removed frora the country where earned. This rate is
already effective for Western lemlephere trade corporations.
these proposals are not large or eestljr bat are designed to
encourage sound private if. S. Investment abroad.
another important part of the idministration1 s program on which the
Treasury is working is the proposal for an International Finance Corporation,
to be established as an affiliate of the International Bank for
Reeonstrttetion and Beveloptient. the purpose of the corporation will be to
stiianlate private investment ia underdeveloped countries ay providing
venture capital through loans without fovernwint guarantee®, thus filling
a mad which is not being net by any existing organisation. The preparation of a charter for the Corporation is proceeding steadily ia the
International Bank.

—rr*

^ateastit by 'Treasury Secretary St*s#*rgf '** *'"'''*
'Before *ii& Sanata Ttonoe CdnBlttem
its 1¥3gr» si
f* * > <v-!

**r. chairsiaa and tesbera of the 0#ssid.*iwet
Ba mT e«tsets e w the part '** famm with foreign flititeialfe-„
^rilfiiale I have ham iapramtayd with two .major principles in o^or - '"**
l
mm
mt
w n o w i c relations.
^
'Jlrstf the impertmmoe of Vceepiag eur^owa mmaw$ strong and d#aailc and sound* &«r $oli@lee am directed "toward mmmhoadm strength
&nd g^rowtli««^l^STWird giraater trmmdflmk Ironi ^ovarnsflontiil. iiftei*£!ereiiee ami
contirol* o«r fillets® aim at m & m r m ^ initiative and freedom and ***•»
s t a i n i n g esroneeile p u r e e s *nd s high level-of eoonoMe artivitx '***
at relatively rteble prices* Bmh s oondititm help® i n t e r n a <m?il •*• "lfe*i
trmmm in both toortta*. i strong internal seena^r feels* ^® * ^ «•
- ;-r*titiv* and m h m our goods attractive to foreign tmyam* It also
'^tt»Us a high 1*7*1 deaand far import** «ith ttlgh levels of busi*
n o ^ activity, the esnftottgr of ossr oeonc^ to *heer% l<«po?t* is enor* J*»
.^4iti«*-F«^^^^rl# Import* of raw materials*l •* * • •tt*1 y5 ^ - '
tine*.
, "i . £.or utr-« *..
j*eTeriasr.t
Mstemttta* the strength m d m l m at tha vm**** state* dollar
is a vital vert of oar contribution to international sionetary •tahl*
,i-y—/or th* fhtlted States dollar is the ^ardsMer ibr all w the - '**
; -.wpe-.ieiiK. of the free world. Tha free "world** vi^arou* mmooomdn t "^^
:rmw%h isttrt rest on a sound fiitmm*i*l bisie* ' yhat is maaamftlal forFour *** #«s»aisitH at te« is equally essential far the m^mr f#*a
nations of the world., mmy eowatttrlea, t m .*\*A to eaj, am s^preoiat-r
^^rvertibill^ will Wememreg!*! ^ a %alaae«4 developwent of ^i% i§
<&
irq? the i^ortan«e of ' ^ p ^ theirfinamial hot*** "in mrdmr not
*
:
::
w m m t»msi$ » d , in twin, wltt mWIH*ale %m m m * *lvwlo|mlseik Per•-.*«««*»,
May to stras^liem their internal e«oaoiif«« "hefb alee %h hamp ^krnlr
Fr^rema toward 'eeovertimUity wemmw «nc! is ?^e«w«^i laf f^ogrssS in
.foreign payments md tmmipta in balanee* I em enoomraged hy the
r^:a>vin^'tfmdto m a ^
•• ( ****«^-- • »l '.."* to
P?®grma msy of ^ e s e n«ti*ns have msd# %amm mere fntemel
etabilitv
;
"the
sae^id
point
wMeli
has
^
r
e
e
s
e
d
«»
i»
mf
oofttsete
abroad
is the y
•:-tJ towsr4 orw*rtibltity at their
eon««sw of foreign eetaimi^ea wtVH- the <<lM»eji daVreealretti #f ©yr eeasiereial &®"
; oiler* lo^etgH ewuamrlse do ne% empeet its to lower ©«* '*g#4ff» ^ »
^rjstioally* mmmV^pliey *'«,^ to 'wa9 howeverf mb assuranoe of oontinaity
In our 00110104 ai ui«;, wstoh or ..federate step® in the dlreetion of
oar eiaejeeti/^* r'^JLs ^^5- si* &•«, desirability of a three-»3rear
of t .-> Travla Agreeai^te ' **o *r*i. A "5.^ir^e»yaar period would froviao
ra / .>ctible ...* *r -.i»«jw of & ich oont^t »i^/.
Ihe bill before >mi is moderate* r't preserves all eaci-sting
cafagmerds for oar domestic predttBere* Tt ^ioes not contemplate nay
drastis ch«g»s
w M c h woi..,.d adtvercetl/ affeet sis#able groups of oar
?
^.*ti»en«*
i^s»*-.'^fc*

"•

_ 't ^

^ S ^

• • • „ * • '

* "*

••••*'«'•

TREASURY DEPARTMENT
Washington

Statement by Treasury Secretary Humphrey
Before the Senate Finance Committee
on the Trade Agreements Program
Thursday, March 3, 1955
Mr. Chairman and Members of the Committee:
In my contacts over the past two years with foreign financial
oxficials I have been impressed with two major principles in our
economic relations.
First, the importance of keeping our own economy strong and
dynamic and sound. Our policies are directed toward economic
strength and growth — toward greater freedom from governmental
interference and control. Our policies aim at encouraging
initiative and freedom and maintaining economic progress and a
high level of economic activity at relatively stable prices. Such
a condition helps international trade in both directions. A strong
internal economy helps to keep us competitive and makes our goods
attractive to foreign buyers. It also promotes a high level
demand for imports. With high levels of business activity, the
capacity of our economy to absorb imports is enormous -particularly imports of raw materials.
Maintaining the strength and value of the United States
dollar is a vital part of our contribution to international
monetary stability -- for the United States dollar is the yardstick for all of the currencies of the free world. The free
world!s vigorous economic growth must rest on a sound financial
basis. What is essential for our own strength at home is
equally essential for the other free nations of the world. Many
countries, I am glad to say, are appreciating the importance of
keeping their financial houses in order not only to strengthen
their internal economies but also to keep their foreign payments
and receipts in balance. I am encouraged by the progress many
of these nations have made toward more internal stability and
toward convertibility of their currencies.
Convertibility will be encouraged by a balanced development
of world trade; and, in turn, will contribute to such a development. Progress toward convertibility means and is measured by
progress In removing trade and exchange restrictions.
H-726

- 2 The second point which has impressed me in my contacts
abroad is the concern of foreign countries with the broad
direction of our commercial policy. Foreign countries do not
expect us to lower our tariffs drastically. They want to have,
however, assurance of continuity in our policies and they watch
for moderate steps in the direction of our objectives. This
suggests the desirability of a three-year extension of the
Trade Agreements Program. A three-year period would provide
reasonable assurance of such continuity.
The bill before you Is moderate. It preserves all existing
safeguards for our domestic producers. It does not contemplate
any drastic changes which would adversely affect sizeable groups
of our citizens.
I would like to mention one other broad principle in
connection with the bill. From the budgetary viewpoint, the
President's trade program should help to reduce Government
expenditures for foreign aid over a period of time. I believe
it is best, where possible, for foreign countries to earn their
way, rather than receive aid from the U, S. Treasury. This bill
is a further step in that direction.
The Treasury Department is actively working on other aspects
of the President's program to promote foreign trade and investment.
Among these is a proposal revising somewhat earlier Treasury
recommendations which have previously been presented to the
Congress and which have not been finally considered because of the
lack of time.
The proposal will provide for the amendment of the standards
governing the valuation of Imported articles, for the conversion
of currency into dollars for customs valuation, and for the
repeal of certain obsolete provisions in the customs laws. The
revision of the complex valuation provisions of the present law
to make the process of appraisal more prompt and efficient as
well as more commercially realistic is particularly important.
Our program for' customs simplification and management
improvement, begun by the Customs Simplification Acts of 1953
and 1954, will continue. We expect to have some additional
proposals for administrative improvement to make to the Congress
during the present session.
In the field of taxation, consideration is again being given
to certain changes in the revenue laws with respect to taxation
of income earned abroad, so as to tax corporate business income
from foreign subsidiaries or branches at a rate 14 percentage
points lower than the rate on corporate domestic income, and to
defer tax on foreign branch, income until it is removed-, from the
country where earned. This rate is already effective for
Western Hemisphere trade corporations.

1 03

- 3These proposals are not large or costly but are designed to
encourage sound private U. S. investment abroad.
Another important part of the Administration's program on
which the Treasury is working is the proposal for an
International Finance Corporation, to be established as an
affiliate of the International Bank for Reconstruction and
Development. The purpose of the corporation will be to stimulate
private investment in underdeveloped countries by providing
venture capital through loans without government guarantees,
thus filling a need which is not being met by any existing
organization, The preparation of a charter for the Corporation
is proceeding steadily in the International Bank.
While all of these proposals are important, the Reciprocal
Trade Agreements legislation now before you is desirable
because its enactment will permit the U. S. to follow a sound
trade policy consistent with both our domestic and our
international needs.
In conclusion, I cannot emphasize too strongly the importance
of maintaining a high level of employment and economic activity
right here in the U. S. upon which the whole world depends.
Serious reversals here would have serious unfortunate effects
throughout the entire world.

oOo

XKfHX

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

be interest. Under Sections k$k (b) and 1221 {$) of the Internal Revenue Code o
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 hereu

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. 4lBj Revised, and this notice, prescribe

the terms of the Treasury bills and govern the conditions of their issue. Copie
of the circular may be obtained from any Federal Reserve Bank or Branch.

iQy

- 2 -

Secretary of the Treasury expressly reserves the right to accept or reject any o
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 les

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 March 10. 19$$ , in cash or other immediately available funds

ilk

or in a like face amount of Treasury bills maturing March 10. 19$$
• 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, an
loss from the sale or other disposition of Treasury bills does not have any
special treatment, as such, under the Internal Revenue Code of 19$k. 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 princ

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

£5&&I-&U_X

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS, '
Thursday. March 3. 1955
•

j j^

"";

The Treasury Department, by this public notice, invites tenders for
$ ljSOOfOOOaOOO , or thereabouts, of 91 -day Treasury bills, for cash and
in exchange for Treasury bills maturing March 10, 1955 , in the amount of
$ 1^99,962,000 , to be issued on a discount basis under competitive and nonXXX
competitive bidding as hereinafter provided. The bills of this series will be
dated March 10, 1955 * and will mature June 9, 1955 , when the face
^ L

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, March 7, 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 thre
decimals, e. g., 99*92$. Fractions may not be used. It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which will b
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from

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

RELEASE MOROTNG NEWSPAPERS,
Thursday, March 3, 1955.
The Treasurv Department, by this public notice, invites tenders
for $1,500,000,000, o r thereabouts, of 91-day Treasury bills, for
cash and in exchange for Treasury bills maturing March 10, 1955,
in the amount of $1,499,962,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated March 10, 1955,
and will mature June 9, 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, tv/o o'clock p.m., Eastern Standard time,
Monday, March 7, 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 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

- 2 bidS
°?Tu e u
' S e t t l e m e n t f ^r accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on March 10, 1955,
in cash or other immediately available funds
or in a like face amount of Treasury bills maturing March 10, 1955
Cash and exchange tenders will receive equal treatments 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 bill3 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 term3 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.

•' Q y

March 2, 1955
!

lte^c«e*eibie--

George If. Humphrey
fieei-uUtry uf the Treasury
Bear Mr. Secretary:
Reference is made to the letter from the Acting Secretary
of the Treasury dated December Ik, 195** which was received by the
Tariff Conanission on December 15, 1954, advising that Muriate of Potash
from the Federal Republic of Germany and from France is being, or is
likely to be, sold in the United States at less than fair value as
that term is used in the Antidumping Act, 1921, as amended.
After investigation in accordance with the provisions of
section 201(a) of the said Antidumping Act, the Ccaanission by unanimous
opinion has determined that the domestic potash industry is not being,
and is not likely to be, injured by reason of the importation of muriate
of potash from the Federal Republic of Germany or from France at less
than fair value.
Sincerely yours

Edgar B. Brossard
Chairman

{

S)r 2

m^%iym
m

.- tha "Smmmy

DapwtKiant --.-od^y iaatrtsatad

0 "'
Ctafttowi field of.flc-*ra to diacontirata tha idtl-holding
ol a^iJi-aiiv^x-ut oi entriet of mtriata- of $ota*h tran
tha Vsueral Republic of urnm®^ and froa rranea
at suspected discing ia. to pro©®®® * ntri IU jat much ^ y f f
^ r ^ ^ l a a yi*%my

,,o_/„i

«f

_, ^ . ^

Tha instructions i?©r@ issued after notification
,. ,_ _
.tm
* -a* rn*a?ws
bv tha United ..ate*, tariff Gosmdssion of a tsnaniiaona
'*:•.- •

«>. »*,

or ta

©pinion that the dofflaatle potash industry is mb being
and ia net l U a l y t* be injured by rmmm
at the iaaportati«& of :..widu, oi potash froa tta» ^ r u i p u b l i c
~*i>k,

V**.

«f G#raany or fr«t Franca a t 1G*U, than x-vr
Jh- latter oi
•M <s£ nirlttle
;f^oa P*e%a» a t i>i>ea

0^t<*

•.s4r£«*' via*

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Thursday, March 3, 1955.

H-728

The Treasury Department today instructed Customs field officers
to discontinue the withholding of appraisement of entries of muriate
of potash from the Federal Republic of Germany and from Prance
because of suspected dumping and to process entries of such
merchandise without regard to any question of dumping.
The instructions were issued after notification by the
United States Tariff Commission of a unanimous opinion that the
domestic potash industry is not being, and is not likely to be,
injured by reason of the Importation of muriate of potash from the
Federal Republic of Germany or from France at less than fair value.
The letter of notification to Treasury Secretary Humphrey
from the Tariff Commission is as follows:
March 2, 1955
Dear Mr. Secretary:
Reference is made to the letter from the Acting
Secretary of the Treasury dated December 14, 1954, which
was received by the Tariff Commission on December 15*
1954, advising that Muriate of Potash from the Federal
Republic of Germany and from France is being, or is
likely to be, sold in the United States at less than
fair value as that term is used in the Antidumping Act,
1921, as amended.
After investigation in accordance with the provisions
of section 201(a) of the said Antidumping Act, the Commission
by unanimous opinion has determined that the domestic potash
industry is not being, and is not likely to be, injured by
reason of the importation of muriate of potash from the
Federal Republic of Germany or from France at less than
fair value.
Sincerely yours,
(signed)

0O0

E. B. Brossard
Edgar B. Brossard
Chairman

<02

Immediate 3/3/55

/—f ~-~) 2-

The Treasury Department today made public the following letter from
Secretary Humphrey to Chairman Cooper of the *Wse Ways and Means Committee,
concerning corrections in the new tax code which the Treasury will request:
Bear Mr. Chairman:
I am writing you with respect to reserves tar
estimated amp&ma* under the provisions of the new
las code. The Tf emsttry stall, in collaboration with
the staff of the Joint Committee on Internal Revenue
Taxation, has been investigating far several months
this subject and several others which mmf need
Congressional correction.
We will submit to your Committee a lull list
of tbesa provisionse together with our suggestions,
in tha near future. This will include our report and
recommendations concerning reserves tar estimated
expenses.

it seams clear that some of the recent reports on the
revenue lass involved are grossly exaggerated.
We will urge your Committee to take prompt
remedial action*

Honorable Jere Cooper
Chairman
Committee on Ways and Means
House of Representatives
Washington 25, 0. C.

TREASURY DEPARTMENT

cu
?m

WASHINGTON, D.C.
IMMEDIATE RELEASE,
Thursday, March 3, 1955.

H-729

The Treasury Department today made public the following
letter from Secretary Humphrey to Chairman Cooper of the House
Ways and Means Committee, concerning corrections in the new
tax code which the Treasury will request:
Dear Mr. Chairman:
I am writing you with respect to reserves
for estimated expenses under the provisions of
the new tax code. The Treasury staff, in
collaboration with the staff of the Joint
Committee on Internal Revenue Taxation, has been
investigating for several months this subject
and several others which may need Congressional
correction.
We will submit to your Committee a full list
of these provisions, together with our suggestions,
in the near future. This will include our report
and recommendations concerning reserves for estimated
expenses.
Although the studies made thus far are not finished,
it seems clear that some of the recent reports on the
revenue loss involved are grossly exaggerated.
We will urge your Committee to take prompt
remedial action.
Sincerely,

(Signed)
Honorable Jere Cooper
Chairman
Committee on Ways and Means
House of Representatives
Washington 25, D, C.
0O0

c. M. Humphrey

HSttiss; _oni!*>

mmwms.

•4

the treasury BtgwrtsMttt mnomm-A last mm&ng

13{

thai the triers taw tX,$0O,OOO,QQQ

@r tharaabouts, at ?l-fey fraaawy bills t» be fete* tore* 10 and to wrntw
IfSS* wnifcti urn offered ** larah 3, mm stsmi at %h$ fmdawmX
Harah ?.
The details of this Imm are as follows?
futnl applied im* - |t,OU,OJi8,OO0

fatal wNwyts*

on a
in fall

- u m f Q W f 0 0 0 (inal^aa |tlMtttoa>
at tha
- 99.609 Univalent mtm of dtmoil

X . U W Pa*

Range mi &®aap%ad empstltlvv. fe&tot
aigh
isw

- 99*69? W*jatmaiU*%% mU
m
w
- 99.6SI
•

at dlmmmt. spsrau l*199f£ p«r
•
"
%aWm
"

(65 piraamt of tha as**** Mi fir st the lam ptkm mm accepted)
Favsrau. aesHiprw
District

Tata*

Boat*®
Haw lark
tMX!v*i@l.phi3
C&sffsiUttdl
siah^r®^
AtUtttft
Chiefs
It. Ideals
Wkstajaaffialfckm
Seats* € t %
Bftllas

$m frmwlma®
Total

fatal

kamptmd

tMSMoo

i»l89ffjS7,eeo
IO,9M**tiOO
33»ld»»000
i©,70,is@©
*7-,397,00»
S69»tOO # OOD
10,767,000
17,237,000
*3,l88,CJOO
39,68O«Q0O
S7,70*>,000

#ffm,«»«S0

20,l5t,00©
97t,$&7,000
2j999fe»00p
3tf3U,000
19,10,060
t7>3f7#0@Tr|
297,803,000
30,767,000
11,137,000

hMttO»oo»
30,$0o,ooo
SaMiffi
tt,$9QtaW,0Q0

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, March 6, 1955.

H-730

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts,- of 91*day Treasury bills to be
dated March 10 and to mature June 9, 1955,which were offered on
March 3, were opened at the Federal Reserve Banks on March 7.
The details of this Issue are as follows:
Total applied for - $2,011,048,000
Total accepted
- 1,500,048,000 (includes $210,812,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price - 99.689 Equivalent rate of discount approx,
1,231$ per annum
Range of accepted competitive bids:
High - 99.697 Equivalent rate of discount approx.
1.199$ per annum
Low
- 99.681 Equivalent rate of discount approx.
1.262$ 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

$
20>152,000
1,429*337,000
28,994,000
33,413,000
20,725,000
27,397,000
262,203,000
30,767,000
17,237,000
43,188,000
39,880,000
57,705,000
TOTAL

Total
Accepted

ttotal
Applied for

$2,011,048,000
0O0

20,152,000
972,587,000
13,994,000
32,313,000
19,225,000
27,397,000
227,203,000
30,767,000
17,137,000
42,988,000
38,530,000
57,705,000

$1,500,048,000

a. „ W *-/

THE SECRETARY OF THE T R E A S U R Y
WASHINGTON

jUS^te

I M s mppl&mnts wy 2*ttar at
atioja mi *fefe# ti
_
incoiae and reserves for ectiinated expenses (Sections t$2
M i ©s? t&© Hrt«n»X B m n » ®&m of 1 0 * ) * ©*a? stales
roeeedad fsx enough to indicate elaarly that
arm sdyajSriiliig ho %%aa thamm
irUa tin© tttaar *»• i-**fl__l*^£**-^^ •
Q* &J»«I$*« «t 18ftM» statists* ma sligplr to aos£@*m tax
•hfM^^^i^K with h&sS&B&Q ^ooldrSsapiij^. ISllQf B/t^w IPBJ?S iataad*
to aofaa? imsxMi_aemblB it&ssia scaas taxiM3^a?a aii&ar&xi&l^' #.iit%<WM# to
claim. If peroitted to r e m i n in the la.^ they « u i cause a
loss ia

C '^'?

,.^
SJCBJA

>0 sireew

ssnpf^onq. jo a©dooo ©a©f ^remaps HQ c^fajqdranH icWeaoag mojj

Jsqi^eT^at-ioIToj ©TO ojxqnd epwn i & p o % ^ n ^ a « d e a itxnsyeea/sqj;
V

eqsppeiaaij

Immediate

//- 7 3/
The Treasury Department today made public the following letter from
Secretary Humphrey to Chairman JDBEX Co0per of the

House Ways and Means

Committee recommending the repeal of two provisions of the Internal
Revenue Code of 1954 concerning deferred income and reserves for
estimated expenses!

<_0

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Monday, March 7, 1955.

H-731

The Treasury Department today made public the following
letter from Secretary Humphrey to Chairman Cooper of the House
Ways and Means Committee recommending the retroactive repeal of
two provisions of the Internal Revenue Code of 1954 concerning
deferred income and reserves for estimated expenses:
My dear Mr. Chairman:
This supplements my le
tter of March 3 concerning
the operation of the two ne vi accounting provisions
covering deferred Income and reserves for estimated
expenses (Sections 452 and 462 of the Internal Revenue
Code of 1954). Our studies now have proceeded far
enough to indicate clearly that many taxpayers are
planning to use these provi sions to defer income and
create deductions in excess of anything contemplated
at the
time
they were
The
objective
of propo
these sed.
sections was simply to
conform tax bookkeeping with business bookkeeping.
They never were intended to cover innumerable items
some taxpayers apparently intend to claim. If permitted
to remain in the law, they will cause a greater loss in
revenue than estimated and cause considerable litigation,
We are not able to adequately correct this by regulation,
Accordingly, I recommend that the two provisions cited
above immediately be repealed retroactively to their
original effective dates.
Our report and recommendations on various other
technical corrections in the 1954 Code will be ready
soon.
Sincerely yours,
/s/

G. M. Humphrey

Honorable Jere Cooper
Chairman, Committee on Ways and Means
House of Representatives
Washington, D. c.
0O0

- 3-

'mm

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.

Viti
f„ JL 0

- 2 -

Secretary of the Treasury expressly reserves the right to accept or reject any o
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 les

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 March 17. 1955 , in cash or other immediately available funds
XXX
or in a like face amount of Treasury bills maturing March 17. 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

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

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

« T T)TT ft

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, March 10, 1955
•

-_ p
'-*

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

March 17, 1955

, i n the amount of

$ 1,^00,623,000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated March 17. 1955 , &nd will mature June 16, 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, March lit, 1955

Hi
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 payment of

RELEASE MORNING NEWSPAPERS,
Thursday, March 10, 1955.

H-732

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 March 17, 1955,
in the amount of $1,500,623,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated March 17, 1955,
and will mature June 16, 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, March 14, 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 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

- 2competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on March 17, 1955,
in cash or other immediately available funds
or in a like face amount of Treasury bills maturing March 17, 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.

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214

Statement showing comparison of principal items of assets and liabilities of active national banks
as of December 31, 1954, October 7, 1954, and December 31, 1953
(In thousands of dollars)
Dec. 31»
Oct. 7.
Dec* 31t
1954
1954
1953
Number of banks
ASSETS
Commercial and industrial loans
Loans on real estate
All other loans, including overdrafts.
Total gross loans...
Less valuation reserves..
Net loans
U. S. 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 Jed. 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

4,796

4,827

4,864

:Increase or decrease
:since Oct. 7, 1954
:
Amount
:Percent

Increase or decrease
since Dec. 31, 1953
Amount : Percent

-68

"X3S"

-21,388
1,019,568
952*623
1,950,803
67.271
1,8*3.532

-.13
11.60
7.19
5.07
12.13
4.96

-410,220
2,425
-407,795

-1.03
63.22
-1.02

3.937.^4
-19,168
3,918,236

11.07
-75-38
11.01

-93,562
30,284

-1.27
1.57

916.039
-130.599

14.47
-6.26

l6,l|47,067
9,806,254
14,196,209
40,^9,530
621,852
39,827.678

15,868,226
9,465,267
12,695,779
38,029,272
583,260
37,446,012

16,468,455
8,786,686
13,243,586
32,498,727
554,581
37,944,146

578,84l
340,987
1,500,430
2,420,258
38,592
2,381,666

39.500,738
6,26l
39,506,999

39,910,95S 35.563.331*
3.836
25,fe9
39.914,794 35.5SS.763

3.65
3.6O
11+82
6.36
6.62

7,246,304
1,956*124

7,339.866
1.925,840

6,330.265
2,086,723

222,831
48,932,258
88,759,936
1,279»171
12,450,001
11,992,725

215.636
49,396,136
86,842,148
1.323,599
12,353,834
9,699,058

204,482
V*.210,233
82,154,379
1,292,254
13,130,530
12,122,73**

7.195
-463,878
1,917»788
-44,428
96,167
2,293,667

3>3**
-.94
2.21
-3.36
• 78
23.65

18,349
4,722,025
6,605,557
-13,083
-680,529
-130,009

8,97
10.68
8.04
-1.01
-5.18

25,721,897
1,668,736

23,376,491
1,541,171

26,545,518
1,416,802

2,345,406
127,565

10.03
8.28

-823,621
251,934

-3.1ft
17.7^

111,759,810 110,116,699

4,390,759

3.93

6,033,870

5.48

116,150,569

loans to individuals, loans to farmers, to brokers and dealers and others for

the purpose of purchasing and carrying securities, and to banks, etc., amoiinte
to $14,200,000,000, an increase of nearly 12 percent since October. The percentage of net loans and discounts to total assets on December 31, 195^ was
34.29 in comparison with 33.51 in October and 34.46 in December 1953»
Investments of the banks in United States Government obligations on
December 31, 1954 aggregated $39,500,000,000 (including $6,000,000 guaranteed
obligations), a decrease of $400,000,000 since October. These investments
were ]j4 percent of total assets. Other bonds, stocks and securities of

$9»400,000,000, which included obligations of States and political subdivision

of $7,200,000,000, were $56,000,000 less than in October, but $800,000,000 mor

than held in December 1953. Total securities held amotinting to $48,900,000,00
decreased $500,000,000 since October.
Cash of $1,300,000,000, reserve with Federal Reserve banks of $12,to),000,000
and balances with other banks (including cash items in process of collection)

$12,000,000,000, a total of $25,700,000,000, showed an increase of $2,300,000,
in the quarter.
The capital stock of the banks on December 31, 1954 was $2,500,000,000,

including $4,000,000 of preferred stock. Surplus was $3,900,000,000, undivided
profits $1,400,000,000 and capital reserves $300,000,000, or a total of
$5,600,000,000. Total capital accounts of $8,100,000,000, which were 7.64
percent of total deposits, were $200,000,000 more than in October when they
were 7»77 percent of total deposits.

TREASURY DEPARTlvENT
Comptroller of the Currency
Washington

RELEASE MORNING NEWSPAPERS, H-733
Friday, March 11, 1955.
The total assets of national banks on December 31, 195^ amounted to
$116,000,000,000, it was announced today by Comptroller of the Currency
Ray M. Sidney. The returns covered the 4,796 active national banks in the
United States and possessions. The assets were $4,400,000,000 more than
the amount reported by the 4,827 active banks on October 7» 195^» th& date
of the previous call, and more than $6,000,000,000 over the aggregate reported by the 4,864 active banks as of December 31, 1953*
The deposits of the banks on December 31 were $106,100,000,000, an increase of $4,300,000,000 since October, and an increase of $5,200,000,000 in
the year. Included in the recent deposit figures were demand deposits of
individuals, partnerships, and corporations of $59,000,000,000, which increased
$3,900,000,000, and time deposits of individuals, partnerships, and corporations of $24,700,000,000, which increased $258,000,000. Deposits of the
United States Government of $2,800,000,000 decreased $1,600,000,000 since
October; deposits of States and political subdivisions of $7,200,000,000
showed an increase of $700,000,000, and deposits of banks amounted to
$10,700,000,000, an increase of $600,000,000. Postal savings were $13,000,000
and certified and cashiers' checks, etc., were $1,700,000,000.
JSTet loans and discounts on December 31, 195^

*e $39»g00,000,000, an

increase of $2,400,000,000 since October, and an increase of $1,900,000,000,
or 5 percent, above the December loan figure in 1953* Commercial and industrial
loans of $16,400,000,000 were up $600,000,000 since October, and loans on real
estate of $9,800,000,000 were up $300,000,000. Other loans, including consumer

TR32ASURY DEP-ulTi-STT
Comptroller of the Currency
Washington

1 7

RELEASE MORNING NEWSPAPERS, „ 7~Q
Friday, March 11, 1955.

*W_5J

The total assets of national banks on December 31, 1954 amounted to
$116,000,000,000, it vr»3 announced today by Comptroller of the Gurrency
Ray M. Gidney. The returns covered the 4,796 active national banks in the
United States and possessions. The assets were $4,400,000,000 more than
the amount reported by the 4,827 active banks on October 7, 1954, the date
of the previous call, and more than $6,000,000,000 over the aggregate reported by the 4,864 active banks as of December 31, 1953.
The deposits of the banks on December 31 were $106,100,000,000, an increase of $4,300,000,000 since October, and an increase of $5,200,000,000 in
the year. Included in the recent deposit figures were demand deposits of
individuals, partnerships, and corporations of $59*000,000,000, which increased
$3»900,000,000, and time deposits of individuals, partnerships, and corporations of $24,700,000,000, which increased $258,000,000. Deposits of the
United States Government of $2,800,000,000 decreased $1,600,000,000 since
October; deposits of States and political subdivisions of $7t200,000,000
showed an increase of $700,000,000, and deposits of banks amounted to
$10,700,000,000, an increase of $600,000,000. Postal savings were $13,000,000
and certified and cashiers' checks, etc., were $1,700,000,000.
Net loans and discounts on December 31, 1954 were $39,800,000,000, an
increase of $2,^400,000,000 since October, and an increase of $1,900,000,000,
or 5 percent, above the December loan figure in 1953- Commercial and industrial
loans of $l6,400,000,000 were up $600,000,000 sinco October, and loans on real
estate of $9,800,000,000 were up $300,000,000. Other loans, including consumer

e. -

91Q
?:'.. J- w

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
to $14,200,000,000, an increase of nearly 12 percent since October. The percentage of net loans and discounts to total assets on December 31, 195^

was

34.29 in comparison with 33.51 in October and 34.46 in December 1953.
Investments of the banks in United States Government obligations on
December 31, 1954 aggregated $39,500,000,000 (including $6,000,000 guaranteed
obligations), a decrease of $1400,000,000 since October. These investments
were 34 percent of total assets. Other bonis, stocks and securities of

$9»400,000,OCX), which included obligations of States and political subdivisions
of $7,200,000,000, were $56,000,000 less than in October, but $800,000,000 more
than held in December 1953. Total securities held amounting to $48,900,000,000
decreased $500,000,000 since October.
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) o

$12,000,000,000, a total of $25,700,000,000, showed an increase of $2,pO,000,000
in the quarter.
The capital stock of the banks on December 31, 1954 was $2,500,000,000,
including $4,000,000 of preferred stock. Surplus was $3,900,000,000, undivided
profits $1,400,000,000 and capital reserves $300,000,000, or a total of
$5,600,000,000. Total capital accounts of $8,100,000,000, which were 7.64
percent of total deposits, were $200,000,000 more than in October when they
were 7.77 percent of total deposits.

3
Statement showing comparison of principal items of assets and liabilities of active national banks
as of December 31, 1954, October 7, 1954, and December 31, 1953
(In thousands of dollars)
Dec. 31,
1954
Number of banks

4,796

ASSETS
Commercial and industrial loans
Loans on real estate
All other loans, including overdrafts.
Total gross loans
Less valuation reserves
Net loans
U. S. 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
Tctal securities.
o;al' loans and securities
Currency and coin
Reserve with Fed. Reserve banks
3alances with other banks.......••....
Total cash, balances with other
banks, including reserve balances and cash items in process
of collection
Other assets
»
•.
iotai assets

Oct. 7.
1954

Dec. 31,
1953

4,827

4,864

Increase or decrease
since Oct. 7, 1954
Amount
'.Percent

:Increase or decrea
:since Dec. 31, 195
t
Amount ;Percent

-68

J.2L

16,447,067
9,806,254
14,196,209
40,449,530
621,852
39,827,678

15,868,226 16,468,455
9.465,267 8,786,686
12,695.779 13.243,586

578,841
3^.987
1.500,430

3.65
3.60
11.82

-21,388
1.019,568
952,623

38,029,272 38,498,727
583,260
554,581
37,446,012 37.944,146

2,420,258
38.592
2,381,666

-.13
11.66
7.19

"oT3o"
6.62
6.36

1.950,803
67.271
1,883,532

5.07
12.13
Wyjfc

39.500,738
6,26l
39,506,999

39,910,958 35.563,334
3,836
25,429
39,914,794 35.588,763

-410,220
2,425
-407,795

-1.03
63.22
-1.02

3.937.^4
-19,168
3,918,236

11.07
75.38
11.01

7,246,304
1,956,124

7,339,866
1,925,840

6,330,265
2,086,723

-93.562
30,284

-1.27
1.57

916,039
-130.599

14.47
-6.26

222,831
48,932,258
88,759,936
1,279.171
12,450,001
11,992,725

215,636
49,396,136
86,842,148
1,323.599
12,353,834
9,699.058

204,482
44,210,233
82,154,379
1,292,254
13,130,530
12,122,734

7,195
-463,878
1,917,788
-44,428
96.167
2,293.667

3.3^
-.94
2.21
-3.36
.78
23.65

18,349
4,722,025
6,605,557
-13,083
-680,529
-130,009

8.97
10.68
8.04
-1.01
-5.18
-1.07

25,721,897
1,668, 73&

23,376,491
1,541,171

26,545,518
1,416,802

2,345,406
127,565

10.03
8.28

-823,621
25L93^

-3.10
17^78

111,759,810 110,116,699

4,390,759

3-93

6,033,870

5.48

.. 116,15c,569

Comparison of principal items of assets and 1:Labilities of national banks
.
(In thousands of dollars)

Dec. 3 1 ,
1954

Oct. 7,
1954

Dec. 31,
1953

LIABILITIES
Deposits of individuals, partnerships, and corporations:
Dem?md

59,005,232
24,676,853
2,823,965
13,069

55,144,436
24,418,920
4,374,955
13,046

56,614,391
22,863,011
2,817,227
13.^42

n
?i ";n"'r*;
Deposits of U.fe.Government
Postal savings deposits.
Deposits of States and political
6.793.634
subdivisions
...t, 7,174,667
6,480,477
10,155,942
Deposits of banks,....
.. 10,717,647
10,127,696
1,689,586
Other deposits (certified and
1
100,947,233
cashiers checks, etc.).,
..... 1,734.380
1.32Q.4QQ
Total deposits
106,145,813
101,880,029
.Bills payable, rediscounts, and
14,851
other liabilities for borrowed
1,745,099
money
11 OQg
233 478
Other liabilities...............
1.889[4l6
1.73^Q7P 102,707,183
Total liabilities, excluding
^
-^O^fc.
capital accounts.,...
108,046,327 103.847.479
5,211
CAPITAL ACCOUNTS
2,296,546
Capital stock:
2_J01_J5I
Preferred
U.389
4,602
3,523,443
Oon
^°n-;
2,481,455
2,389.884
1,310,761
/otal
•
2,485,8144 - 2.394.486"
q
273,555,

T?* ?!•;••••;;

•

3,950,552

3.690,908

Undivided prof its
1,377,282
Reserves
290.564
Total surplus, profits, and
reserves
5,618,398
Total capital accounts....
8,104,242
Total liabilities and
34.01'"""
capital accounts
116,150,569
3^.29
RATIOS: PePCent Percent
7.64
U. S. Gov't securities to total
assets....
Loans
Capital& accounts
discounts to
tototal
total deposits....
assets.....*

1,540,254
286.683
5.517.84*;
7 912 331
—35.71
^ u —
111,759.810
33.51
1*11

5407.791
7,409,516
110 116.699
Percent
32.32

34.46
l*3k

Continued

Increase or decrease:
since Oct. 7, 1954
Amount :Percent

3,860,796
7.00
1.06
257.933
1.550,990 -35.45

23
694,190
589,951
413,881
4,265,784
-222,380
155.444
4,198,848

Increase or decrease
since Dec. 31, 1^53
Amount :Percent/

2,390,84i
1,813,842
6,73s
-373
381,033
561,705

4.32
7.93
.24
•2.7?
5.bl
5.53

44,794
3,1. ft
4.19
5,198,580

2.65
5.15

.18
10.71
5.83

-95.25
8.96
4.04

-3.753
144,317
5.339,144

-25.27
8.27

-15.77
8.05
8.00
12.12
5.07
6.22

5.20

-213
91,571
91.358
2597644
-162,972
3,881

3.82
7.03
-IO.58
l.-w

-822
184,909
184,087
427,109
66,521
17,009

,100,553
191,911

1.82
2.43

510,639
694,726

10.00
9*38

4.3QQ.7RQ

3.93

6.Q33.87Q

_2_i_S

-4.63

•V)

NOTE: Minus sign denotes decrease.

221

«2COTTON WASTES
(In pounds)
COTTON CARD STRIPS made,from cotton hating--* staple of less than W/l6w^?^n^B1fSfe«MBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE. Provided, however, that not more than 33-l/3+percent o r 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

Country of Origin
United Kingdom
Canada . . . .
France . . . .
British India ,
Netherlands . .
Switzerland . ,
Belgium . . . .
( j a p a n o . <> . <

Uri3.na . o o o i
Egypt c o o . .
Cuba

e . o

Germany * . .
Italy o . o o

Established
TOTAL QUOTA

4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,1356,544
76,329
21,263
5,482,509

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

Total Imports
Sept. 20, 19^4, to
March 8, 1955
1,006,289
62,389

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

Imports
Sept. 20, 19^4
to Mar. 8, 1955
1,006,289

75,807
67,894
20,382

22,747
14,796
12,853

6,627

25,443
7,088

1,163,581

1,599,886

20,382

6,627
1,033,293

rsnO

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Wednesday. March 9, 1953.

H-734

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 March 8. 1955, inclusive
Established Quota

Country of Origin,
Egypt and the AngloEgyptian Sudan .
Peru
British India
China .......
Mexico ........
Brazil
Union of Soviet
Socialist Republics
Argentina .......
Haiti .........
Ecuador
o

o e o .'« o o •
e • . i

.a.....*

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

5,931
20,355
7,337,123
618,723
411,813

Established Quota

Country of Origin

Imports

Honduras • 9 9 9 o a
Paraguay 9 9 9 9 9 o •
Colombia
Iraq . .
British East Africa . .
Netherlands E. Indies.
Barbados
l/0ther British W. Indies
Nigeria . . . . . .
2/0ther British W. Africa
_3/0ther French Africa . .
Algeria and Tunisia
•

752
871
124
195
2,240
71,388

Imports

124

21,321
5,377
16,004
689

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago,
2/ Other than Gold Coast and Nigeria.
_3/ Other than Algeria, Tunisia, and Madagascar.
Cotton» harsh or rough, of less than 3/4"
Imports Sept. 20, 1954. to February 26. 1955

Cotton 1-1/8" or more, but less than l-ll/l6"
Imports Feb. I_. 19 55, to February ?f>T...-\ott

Established Quota (Global) Imports

Established Quota (Global)

70,000,000 4,519,444

45,656,420

Imports
2,853,234

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Wednesday, March 9, 1955.

H-734

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. 1954. to March 8, 1955, inclusive
Country of Origin
Egypt and the AngloEgyptian Sudan
0
.
Peru
« o
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

5,931
20,355
7,337,123
6lB,723
411,313

Country of Origin
Honduras • • • • «
Paraguay
*
9
«
a
Colombia • « O « 9 0
Iraq « e • • *
British East Africa . .
Netherlands E. Indies.
Barbados . . . . . . .
l/0ther British W. Indies
Nigeria . . . . . . .
2/0ther British W. Africa
_3/0ther French Africa . .
Algeria and Tunisia .

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

Cotton 1-1/8" or more, but less than 1-11/1611
Imports Feb. 1. 19fr_.to Ft-hnipry p ^ I Q ^

Established Quota (Global) Imports

Established Quota (Global)

70,000,000 4,519,444

45,656,420

Imports
2,853,234

«-*2—

COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than 1-3/16 inches in lenp+h rn«R}«-B

S ^ S

Sm WASTE>ANDR0VING WAS?S> " « ™ °* N0T ™ACTU!D

OR S ^ I S E

ADVANCED IN VALUEs Provided, however, that not more than 33-1/3 percent of the quotas shall
be lined by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or mor*
in staple- length in the case of the following countries: United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy*
Country of Origin

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

Established
TOTAL QUOTA

Total Imports
s Established i
Imports
Sept. 20, 1954, to : 33-1/32 of s Sept. 20, 19^4
March 8, 1955
: Total Quota ; to Mar. 3, 1955

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

1,006,289
62,389

5,482,509

1,163,581

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

1,441,152

1,006,239

75,807
67,394
20,332

6,627

22,747
14,796
12,853

25,443
7,088
1,599,886

20,332

6,627
1,033,293

y.c*r

>- 2 --

Unit :
of
: Imports as of
Quantity; Feb. 26, 1955_

Commodity

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

Quota Filled

80,000,000 Pound

15,118,28?

Peanut Oil 12 months from
July 1, 1954
3arley, hulled,unhulled, rolled,
and ground, and barley malt

12 months from
Oct. 1, 1954

Canada 27,225,000 Bushel
Other Countries
Oats, hulled, and unhulled, and
unhulled ground.

275,000 Bushel

9,736,587
5,635

688,000 Bushel

9,817,847
686,9U3

12 months from
Oct. 1, 1954

Canada 39,312,000 Bushel
Other Countries
Rye, rye flour, and rye meal 12 months from
July 1, 1954

* Imports through March 8, 1955.

186,000,000 Pound

Quota Filled

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Wednesday, March 9, 1955.

H-735

Unit
:
of
:Imports as of
Quantity;Feb. 26, 1955

Commodity
Whole milk, fresh or sour

Calendar year

3,000,000 Gallon

Cream

Calendar Year

1,500,000 Gallon

Butter

Nov. 1, 1954Mar. 31, 1955

50,000,000 Pound

285,449

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

Calendar Year

35,432,624 Pound

Vfliite or Irish potatoes:
Certified Seed
Other

12 months from
Sept. 15, 1954

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

Cattle, less than 200 lbs. each..

12 months from
April 1, 1954

3,089

Quota Filled (1)'

200,000 Head
Head

59,638,150
9,055,898
k,$22

Cattle, 700 lbs. or more each....... Jan. 1, 1955(other than dairy cows)
Mar. 31, 1955

120,000 Head 42,973

Walnuts

5,000,000 Pound 847,969

Calendar Year

Almonds, shelled, blanched, roasted, 12 months from
or otherwise prepared or preserved Oct. 1, 1954
Filberts, shelled (whether or not
12 months from
blanched)
Oct. 1, 1954
Alsike clover seed.

12 months from
July 1, 1954

5,000,000 Pound jjffb*9,0k$
6,000,000 Pound 2,536,247
1,500,000 Pound Quota Filled

(1) Imports for consumption at the quota rate are limited to 8,858,156 lbs. during
the first three months of the calendar year.
(Continued)v y
id

TREASURY DEPARTMENT
Washington
?9C

IMMEDIATE RELEASE,
Wednesday, March 9, 1955.

H-735

T h e bureau o f Customs announced today oreliminary figures showing the i m ports for c o n s u m p t i o n o f t h e commodities listed b e l o w within quota limitations from
the beginning of.' t h e q u o t a periods to February 2 6 , 1 9 5 5 , i n c l u s i v e , as f o l l o w s :

Commodity

(Whole m i l k , fresh o r sour

: Period and Quantity

•alendar Y e a r

Unit
:
of
:Imports as o f
Quantity:Feb. 2 6 , 1 9 5 5

3,000,000 Gallon

3,089

1,500,000 G a l l o n

;.Cream ,

Calendar Year

.Butter

•!ov. 1, 1954iar. 3 1 , 1 9 5 5

50,000,000 Pound

Calendar Y e a r

35,432,624 Pound

Fish, fresh o r f r o z e n , filleted
etc., c o d , h a d d o c k , h a k e , p o l t lock, cusk, and r o s e f i s h
.Vhite o r Irish p o t a t o e s :
J Certified S e e d

K Other

12 months from
Sept. 15, 1954

285,449

Quota Filled (1)

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

59,638,150
9,055,893

iiCattle, less than 200 lbs. each

12 months from
Aoril 1, 1954

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

Jan. 1, 1955;.far. 31, 1955

120,000 Head 42,973

Walnuts

Calendar Year

5,000,000 Pound 847,969

200,000 Head
Head

4,522

Almonds, s h e l l e d , b l a n c h e d , r o a s t e d , 12 m o n t h s from
I or otherwise p r e p a r e d o r p r e s e r v e d Oct. 1, 1954

5,000,000 Pound ,789,045

Filberts, shelled (whether or not
blanched)

1 2 months from
O c t . 1, l Ql >4

6,000,000 Pound 2,536,247

12 month.", from
juiy i , vy'M

1,''.00,000

Alsiko clover seed,

Poimcl

Quota Filled

(1) Imoort? Tor c o n s u m p t i o n at t h - naol.a rale »ro. Lbnitod to a , 8 ^ , 1 ! ^ lb:., during
the first throe month:; o f tin* c a l e n d a r v-* T> .
(' "-on t• i nu<\i)

.- 2 --

Unit :
of
:Imports as of
Quantity:Feb. 26, 1955

Commodity

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

3arley, hulled,unhulled, rolled,
and ground, and barley malt

12 months from
July 1, 1954
12 months from
July 1, 1954

Quota Filled

80,000,000 Pound

15,118,287

12 months from
Oct. 1, 1954
Canada
Other Countries

Oats, hulled, and unhulled, and
unhulled ground

1,709,000 Pound

27,225,000 Bushel
275,000 Bushel

* Imports through March 8, 1955.

5,635 «

12 months from
Oct. 1, 1954
Canada 39,312,000 Bushel
Other Countries
638,000 Bushel

9,736,587

12 months from
July 1, 19<4
l8o,000,000 Pound

9,817,847
686,9-43 '
Quota Filled

yd.

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE, H-736
Wednesday, March 9, 1955.
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, 1955, to February 26, 1955, inclusive, as follows:

: : Unit :
Products of the
Philippines

: Established Quota
: Quantity

Buttons

,:
of
;Imports as of
: Quantity:Feb. 26, 1955

850,000 Gross

92,123

Cigars 200,000,000 Number 299,988
Coconut Oil 448,000,000 Pound 23,226,089
Cordage.... 6,000,000 Pound 694,8l8
Rice 1,040,000 Pound
(Refined 500,000
Sugars
(Unrefined
Tobacco 6,500,000 Pound 95,285

1,904,000,000

Pound
240,634,562

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Wednesday, March §, 1955.

228

H-736

Products of the
Philippines

Buttons ...........

Established Quota
Quantity

:
Unit :
,:
of
; Imports as of
: Quantity:Feb. 26, 1955

850,000 Gross

92,123

Cigars ,

200,000,000 Number

299,988

Coconut Oil

443,000,000 Pound

23,226,089

Cordage.

6,000,000 Pound

694,818

Rice

1,040,000 Pound

(Refined..,
Sugars
(Unrefined,

1,904,000,000 Pound

Tobacco •

6,500,000 Pound

500,000
240,634,562
95,285

22S

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Wednesday. March 9, 1955.

H-737

The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour authorized to be entered, cr withdrawn
from warehouse, for consumption under the import quotas established in the
President's proclamation o f M a y 23, 1 9 4 l , as modified b y the president's
proclamation of April 1 3 , 1 9 4 2 , for the 1 2 months commencing M a y 2 9 , 1954,
as follows-

Country
of
Origin

s
:
s
%

USheat H o u r , semoli.na.
crushed or cracked
wheat, and similari
wheat products

Wheat
;
J
:' Established :
: Established s
Imports
Inroorts
s
Quota
t
Qaota
May. 29", 1954,
:!-:a;- 29, 1954, to. .
*
9
to liar. 8, Iff
SLIaroh 8j 1 9 ^
9
9
(Pounds)
(Pounds)
(Bushels)
(Bushels)

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

795,000
-

100

795,000
«
~
—.
—

•

3,815,000
24,000
13,000
13,000
8,000
75,000
1,000

3,815,000
_
_.
_
__,

._.
5,000
^9
_
_

100
100

5,ooo

—

5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
_
—
—

—

100
2,000

100
1,000
-

100
—
—
—
1,000

_
-.
—
—,
_
~->
—
r~

~
_
_
_
_
_
,

100
100
100

100

_
___

_m
o ono
«— y w
^m

tm
mm

__,
—•
_^
—*
__,

-^
-

TREASURY DEPARTMENT
Washington

r> O

IMMEDIATE RELEASE,
Wednesday, March 9, 1955..

H-737

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 r

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

Country
of
Origin

Established
Quota
(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

(Bushels)

(Pounds)

795,000

3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

—
—

100
-

100
100
-

100
2,000

100
_

1,000
—

100
""*
*~
"™

—
—
—
—'

1,000

100
100
100
100

Imports
May 29, 1954?
i to Mar. 8, 1955
(Pounds)
3,815,000

70
5,000

2,000

y 71

TJNIT33) STATES GOLD TRANSACTIONS wTTE FOREIGN COUNTRIES, 1954

(in millions of dollars at $35 -per ounce)
Negative figures represent net sales by the
United States; positive figures, net purchases..
1st
2nd
3rd
Quarter Quarter Quarter

Country

1954
Austria#

1954

135k

$13.2

i.sraei...........

$2^0
-15.6 ~$i4o,o

19 54

195^

-$6.2

-$6*2
17.3
-225*6

2.0
-30o 0

-i#i

• • •

Calendar
' kth
Year
Quarter!

-g.S

» V

—8*8
SO.3

30.3
!

Portugal;;;;
Sweden,
Svit zerl pnd

;.., -20,0
..«
<—
••
—

Switz erland—-Bank for
International Settlements —7*9
United Kingdom,...........
—
Uruguay.
~5«0
The Vatican*
Venezuela.,,
All Others..

-5.0

-1.1
.50.O

-g.o

-10.0 it -5^9
-15'. 0
-15.0
-15.5
-7.5

-2.6
—

-8.4
—

-20.0
-50.0
-5.0

3.3

S.S"
-30.0
-1.0

-$72.3

!-$326.6

-20.0

5.5
-.2
Total

-30.0
-.2

-.1

-$63.0 -$19.6 -$171.S

-aSome figures may not add to totals oeeause of rounding.

y, v,-1_

TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS,
Thursday, March 10, 1955.

The Treasury Department today made public

a report of monetary gold transactions with

foreign governments and central banks for the
calendar year 1954. For the year as a v/hole,
the net outward movement of gold amounted to
$326.6 million; U.S. sales of gold were $433.1
million; U.S. purchases, $106.4 million.
A table showing quarterly and annual net
transactions for 1954, by country, is attached.

H-738

233

- 4 As we have pmvifmmlj tmmUti## and said many times,
in a, revision of tax laws involving iff page* of printed
matter covering all of the lav with respect to federal
taxation, it is inevitable t&at soif errors should creep ia.
These mm

all only be developed hf mxpmrtmmm ia aotwal

practice and we have repeatedly said that as soon as any
discrepancy between the original Congressional intent and
actual operation of the law became apparent we would call
it t#.ta# attention of the Congress tm
This ia such a ease.

corrective action.

"234

3 ~
How much greater it might hm we cannot BOW aay aaaaaaa mm
simply do not have the information as to what tto bulk of
taxpayers concerned aight clain should these proviaioaa raaaia
in the law.

And vita the litigation that would surely Ha

involved ia many cases should the provliioas remain, vo aight
not have final figure* on the loaa for yeara to coaa.
Repeal of these two provisions will reinstate the lag*]
rights of everyone just an taay vara under the old lav
prior to laat August and will protect the government from •,-•
revenue loaa which van never intended by the €aa$raaa*
X wish to emphasise that there la almost no nev
aoney over oar original estimates which will be added to tha
Treasury by repeal of these two proviaioaa.

This action

simply avoid© unplanned loaa of rrnvmrnm.
Tha objective of trying to conform tax accounting
vita business accounting is still a sound ana.

Xa trying

to do this, however, a serious mistake was made ia not
sufficiently limiting the application of tha provisiona
ana restricting the revenue impact of tha chaagea as
enacted,

that ia any repeal ia required rather than

amendment, ao aa to be aura that in aay nev approach ta the
vrlg&mml objective, tha revenue ia adequately protected.

*-- w vy

-a
their income tax returns and the thirty daya expired for
protests against the propoeed regulations, there was not
much reliable information available.
It then developed that there ia a sharp differeace
of opinion between taxpayers and tha government aa to tha
scope of these sections. The tentative regulationa issued
by the Treaaury on January 22, ia. oraar to carry oat the
provisions of the law, have mmma under strong attack aa being
too restrictive m

limiting tha intended application at the

sections. Taxpayers have already served notice that they
intend to litigate this restriction.

Should they be succesafal

in the aoarta, taa revenue loss under tha la* might be far in

the checks vara sufficiently conclusive to satisfy taa ataff
that taa original objective might mat be carried out and that
the situation could not be adequately corrected by/regulation,
they reported their findinga and va promptly made tats move to
call taa matter to taa attention of the Congress.
tha original estimate far awvar** so-called bookkeapiv||
items, of which Sections 452 and 462 wmm

the principal

ravaaiia items, was $47 si 1 lion. Taa limited check that va have
made around taa country indicates that taa loaa vottld be
substantially greater than the original estimatea.

S V J. i w

236

Statement by Secretary Humphrey before Ways and Means
Committee, 10:00 a.m., Thursday, March 10, 1955.
Mr. Chairman:
X am here today to urge prompt action, as X did in my
letter to tbn Chairman on Monday af tnia mmmM, to repeal
Sections 452 and 46a of the Internal Revenue Code of 1954.
v

tha original objaetiva of these two sections which

cover prepaid income and reserves for estimated expvnaaa
was simply to conform tax accounting with business
accounting.

It van never intended that these provisions

would result in any substantial loan of revenue or result ia
windfalls to taxpayers. A raviav of tha oonaidaration of this i
y ^aaiyaet by tJaia committee vlll confirm the impression held at
tha time by lawyers, accountants, and businessmen, that the
basic motive for these provisions van simplification of tax
accounting procedures, and not radical tax reductions.
This tax lav became effective on August 16, 1954.
During tha fall, aa the knowledge of its provisions increased,
there began to ba rumors that these particular provisions
might not work aa originally intandad.

Before tha mmd of

the year, studies by the Treasury staff, working with tha
staff of your committee, vara undertaken to see if the
thraatanad situation could properly and effectively ba
cured hf regulation.

Proposed regulations wmrrn issued on

January 22. lovavar, until tha time oamavhaa thesa proviainmn
bagab to ba put into aetual practice by taxpayara preparing

237
TREASURY DEPARTMENT
Washington
Statement by Treasury Secretary Humphrey before
Ways and Means Committee, 10;00 a.m.. Thursday,
March 10, 1955.

Mr. Chairman:
I am here today to urge prompt action, as I did in my
letter to the Chairman on Monday of this week, to repeal Sections
452 and 462 of the Internal Revenue Code of 1954.
The original objective of these two sections which cover
prepaid income and reserves for estimated expenses was simply
to conform tax 'accounting with business accounting. It was
never intended that these provisions would result in any substantial
loss of revenue or result in windfalls to taxpayers. A review of
the consideration of this subject by this committee will confirm
the impression held at the time by lawyers, accountants, and
businessmen, that the basic motive for these provisions was
simplification of tax accounting procedures, and not radical tax
reductions.
This tax law became effective on August lo, 1954. During
the fall, as the knowledge of its provisions increased, there
began to be rumors that these particular provisions might not work
as originally intended. Before the end of the year, studies by
the Treasury staff, working with the staff of your committee, were
undertaken to see if the threatened situation could properly and
effectively be cured by regulation. Proposed regulations were
issued on January 22. However, until the time came when these
provisions began to be put into actual practice by taxpayers
preparing their income tax returns and the thirty days expired
for protests against the proposed regulations, there was not much
reliable Information available.
It then developed that there is a sharp difference of opinion
between taxpayers and the Government as to the scope of these
sections. The tentative regulations issuedby the Treasury on
January 22, in order to carry out the provisions of the law, have
come under strong attack as being too restrictive in limiting the
intended application of the sections. Taxpayers have already
served notice that they intend to litigate this restriction.
Should they be successful in the courts, the revenue loss under
the law might be far in excess of anything contemplated by the
H-739
Congress. As soon as the checks were sufficiently conclusive to
satisfy
the staff
that the original
night corrected
not be carried
out
and that
the situation
could notobjective
be adequately
by

- 2-

(.. «-> <-/

regulation, they reported their findings and we promptly made this
move to call the matter to the attention of the Congress.
The original estimate for several so-called bookkeeping
items, of which Sections 452 and 462 were the principal revenue
items, was $47 million. The limited check that we have made
around the country indicates that the loss would be substantially
greater than the original estimates. How much greater it might
be we can not now say because we simply do not have the information
as to what the bulk of taxpayers concerned might claim should
these provisions remain in the law. And with the litigation that
would surely be involved in many cases should the provisions
remain, we might not have final figures on the loss for years
to come.
Repeal of these two provisions will reinstate the legal rights
of everyone just as they were under the old law prior to last August
and protect the government from revenue loss which was never
intended by the Congress.
1 wish to emphasize that there is almost no new money over
our original estimates which will be added to the Treasury by
repeal of these tvio provisions. This action simply avoids unplanned
loss of revenue.
The objective of trying to conform tax accounting with
business accounting is still a sound one. In trying to do this,
however, a serious mistake was made in not sufficiently limiting
the application of the provisions and restricting the revenue
impact of the changes as enacted. That is why repeal is required
rather than amendment, so as to be sure that in any new approach
to the original objective the revenue is adequately protected.
As we have previously testified and said many times, in a
revision of tax laws involving 875 pages of printed matter
covering all of the law with respect to Federal taxation, it is
inevitable that some errors should creep in. These can all
only be developed by experience in actual practice and we have
repeatedly said that as soon as any discrepancy between the
original Congressional intent and actual operation of the law
became apparent we would call it to the attention of the Congress
for corrective action. This is such a case.

oOo

fc- >v/ v*"

^\ I hope that the Administration's request for extension of both
increased corporation and excise taxes wil be approved without addition

of this latest misleading compromise proposal as a crippling ammendment.
\V Confidence in the government's hadling of its financial affairs
in a sound and healthy way is far more important t o the people, both
to the Hit tie people4* they talk so mucnp about and to the great middle
classs of fine Americans who are the great majority of our total
population/.than any political quickie gimmick can possibly be«
/

240

^ «STAT<SMSBP§-

m-M®mrmzMmmma&«*

The U*S* Senate now appears defintely

J>JHJJII*

ftv^htpriginal straight

*\
#20 Democratic tax cut planjf a**d I am encouraged to believe that it will reject
the unsound $2O-10 compromise tax cut %_piA0eeVlh connection with the proper

A
extension of the increased copporetion and e else taxes*
As Government spending is being reduced, this Administration has taken

nigh to help the economy make the transition from high to lower government
manyi steps
my is1. One of the principal ways in which our economy isVfchelped to make
spending*
that transition successfully was the enactment of last year's tax programt
giving tax relief to every taxpayer* We are now on the way up on a broad front*
Iproposes^
To repeal, as this quickie compromise now i\mmwi» some of the important
tax changes which have been helping to make new jobs and better times in
this recovery would certainly not be in the interests of the people*
x

< The American people can be seriously harmed by unwise political

tinkering with a tax program which has helped set the present economic
recovery in motion* It is entirely ml&eading to argue that this .proposal
which <a_Smvd work^against the making of new and better jobs / is really in the
interests of the^little folks*.
\^ Therclaims of increased revenue to help to balance this year's budget are
fantastic* You don't help pay your way this year by proposing to collect
more taxes in the future two or three years from now* You don't help to
increase the purchasing power of the * little folks" by repealing the laws
which are helping to make their jobs and then claiming to increase their
purchasing power by #10 and #20 a year tax reductions which they don't even
be gin J' to get until nearly a year from now and then at the rate of but a
few cents a week for only part of the people*

<4i

TREASURY EEPARTMENT
Washington

RELEASE MORNING NEWSPAPERS
Monday, March 14, 1955

H- 7 tf&

Treasury Secretary Humphrey today issued the following statement
concerning the tax bill now pending in the Senate:

TREASURY DEPARTMENT
Washington

RELEASE MORNING NEWSPAPERS
Monday, March lit, 1955.

Treasury Secretary Humphrey today issued the following statement
concerning the tax bill now pending in the Senate:
"The U. S. Senate now appears to have definitely abandoned the
original straight $20 Democratic tax cut plan and I am encouraged to
believe that it will reject the unsound £20-10 compromise tax cut proposed in connection with the proper extension of the increased corporation and excise taxes.
"As Government spending is being reduced, this Administration has
taken many steps to help the economy make the transition from high to
lower government spending. One of the principal ways in which our
economy is being helped to make that transition successfully was the
enactment of last year's tax program, giving tax relief to every taxpayer. We are now on the way up on a broad' front. To repeal, as this
quickie compromise now proposes, some of the important tax changes
which have been helping to make new jobs and better times in this recovery would certainly not be in the best interests of the people.
"The American people can be seriously harmed by unwise political
tinkering with a tax program which has helped set the present economic
recovery in motion. It is entirely misleading to argue that this newest
proposal which works against the making of new and better jobs is really
in the interests of the 'little folks'.
":::s,— "Their claims of increased revenue to help to balance this year's
budget are fantastic. You don't help pay your way this year by proposing to collect more taxes in the future two or three years from
now.--Xou don't help to increase the purchasing power of the 'little
folks' by repealing the laws which are helping to make their jobs and
then claiming to increase their purchasing power by $10 and $20 a year
tax reductions which they don't even begin to get until nearly a year
from now and then at the rate of but a few cents a week for only part
of the people.
"Confidence in the government's'handling of its financial affairs
in a sound-.and. healthy way is far more iirportant to the people j both. •
to the 'little people' they talk so much about and to the great middle
class of fine Americans xtfio are the great majority of our total population, than any political quickie gimmick can possibly be.
"I hope that the Administration's request for extension of both
increased corporation and excise taxes will be approved without addition
of this latest misleading compromise proposal as a crippling amendment."

oOo

A/- -7 7/

a_g*vi,-*w_..%,,»gi_^.
H a Treasury Departs^ mimummi

f aa i ^ ^ 000,00),

l&at avaaiiig that tea

aa Miwi
m thaiaabvoia^ at #3r«a*jjr f*»aavry atU* va ba <latad *****
1?

<IIIZB

16,

loaaata I§J9l» aa iton*
U*5Sf atiiA vara *£Ca*ad aa s»*ch 10, vara ogamta at tha Faiaaal

tint d«at4ills mi tola issue sra at filJna..

fatal a^pMaa f«a - m9m93®hmm
Total accord
pai®#

- aat #f§

taaga ^ w»pt#i aoapatitlva Mist

99.T21 .^luivfilaat aat* af alaaaaat aaavaa* I.ldti pa* atamia
5*9.6?ii

X^M

of the

fetal
Biatafict

lav lark
arilfidalphia

iif,§0i»a0®
tlftl^fOJO
. tttSMaOOO
UfMpOOo

ItlEKtS

^?*^ f ouo
m*90*om

eity
Dallas
saa ftmmimm

^hM*m
TOKUL

p»ax^soi»0oo

fatal
i"l irfhrffrt-rtii^l1'!^ imiflfi

tt,t#WQCX>

W»Wf.»cw
lk,«S,ooo

1*8*653,000
tii?fa^*cM
aatlh^OOO
32#$f8f0Q0
5a f M6 f OOO
to#8^t(»
W*7toCttG
11,500*251,000

TREASURY DEPARTMENT

WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, March 15, 1955.

H-741

The Treasury Department announced, last evening that the
tenders for $1,500,000,000, or thereabouts, of 91-d<
_ -day Treasury
bills to be dated March 17 and to mature June 16, 1955, which
were offered on March 10, were opened at the Federal Reserve Banks
on March 14.
The details of this issue are as follows:
Total applied for
Total accepted

$2,219,301,000
1,500,251,000 (includes $231,695,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
Average price
below)
99.675 Equivalent rate of discount approx.
Range of accepted competitive bids: 1.286$ per annum
- 99.721 Equivalent rate of discount approx.
1.104$ per annum
Low
- 99.672 Equivalent rate of discount approx.
1.298$ per annum
(30 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. Loui s
Minneapolis
Kansas City
Dallas
San Francisco

Total
Applied for
$ 21,367,000
1,518,081,000
37,291,000
53,487,000
14,653,000
49,853,000
279,395,000
24,346,000
12,598,000
57,976,000
46,905,000
103,349,000

TOTAL

i2, 219, 301, 000
0O0

Total
Accepted
$

21,367,000
880,931,000
22,291,000
48,487,000
14,653,000
48,653,000
247,895,000
24,346,000
12,593,000
54,476,000
44,805,000
79,749,000

$1,500,251,000

**— r s_/

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

AS OF *mhrvmrx 28,# 1955
Washington,
.^<Skm3&JB55
Section 21 of Second Liberty Bond Act, as Amended, provides that the face amount of obligations issued under authority
of that Act, and the face amount of obligations guaranteed as to principal and interest by the United States (except such guaranteed obligations as may be held by the Secretary of the Treasury), ''shall not exceed in the aggregate $275,000,000,000
(Act of June 26, 1946; U.S.C.. title 31, sec. 757b), outstanding at any one time. For purposes of this section the current redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holder
shall be considered as its face amount." The 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 $ 19,505,255,000
Certificates of indebtedness
Treasury notes
BondsTreasury
1
Savings (current redemp. value)
Depositary
Investment'^'!
.'
Special Funds- ">
Certificates of indebtedness
Treasury notes.

21,h$$,Mil,000
39.722.h98.700
8 1 , M i l , 21*6,200
5$,22li,Oo9,399
446,6l8,000
12,6g0,708,000

$ 80,683,191*,700

152,763,461,599

, .
28,695,802,000
13,351,565,400

Total interest-bearing.
Matured, interest-ceased

42,047,367,400
275,494,023,699
590,043,784

Bearing no interest:
United States Savings Stamps
Excess profits tax refund bonds
Special notes of the United States:
Internafl Monetary Fund series
Totai

ii8,765,OljO
1,154,665
1,536,000,000

•«»-..*
^
1,585,919,705
277,669,987,188

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

25,239,536
1,708,725

26,948,261
2 7 7 , 6 9 6 , 9 3 5 ,—4_4_9,

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

;

Reconcilement with Statement of the Public Debt ..J.$]?™aZJ.„$.A.295.$.
(Date)
(Daily Statement of the United States Treasury,
£®^^Z..?.?.!»....3:.?.?.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

3,303,064,551

)
278,131,954,6)42
»
'
>
£.Q9yup9coi.
278,208,902,903
511« 9 6 7 > 4 5 4

277,696,935,449
H-712—

S T A T U T O R Y D E B T LIMITATION
A S O F . E s f e H a . 2 3 , . .1955

0 *~>

Washington, Ji&££h.lkj$55
ority
i guardemotion value ofany' o b l l ^ i ^ E ^
F°5 P«*P°*« pTthls section the'curVe^re
.haft be considered as its lace amount." The Ac o A u g u s t 2 8 ? 1954 (P F & S K S r " " " " " ? at * f ^ " J * ^he hoIdet
period beginning on August 28, 1954, and endine Tune K \
1, t « r 686783rd Congress) provides that during the
8 J
3
Increased by $6*000 .OOO.OOOi
° ' ?55t the a b ° V e h m " a " ° » ($275,000,GOO,000) shall be temporarily
The following table shows the face amount of obligation- nu^.T./!... -_J >u /
...
this limitation:
obligations outstanding and the face amount which can still be issued under
Totalface amount that may be outstanding at any one time
&oai n n n n n n r\r\r.
Outstanding¥231,000,000,000
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills $ 19,505,255,000
Certificates of indebtedness.........
21,455,Mjl,000
Treasury notes
j £ x Z 2 2 A ] 1 2 8 j y i Q O $ 80,683,19*1,700
BondsTreasury
„
81,4[il,246,200
'• Savings (current redemp. value)........
58 ,22lj,889, 3 9 9
Depositary.......
446, 618 ,000
Investment series
12,650,706.000
152,763,461,599
Special Funds- '
Certificates of indebtedness
28 ,695,802,000
Treasury notes...................
13,351,565,400
42,047,367,400
Total interest-bearing..,
,
275,494,023,699
Matured, interest-ceased
590,043,784
Bearing no interest:
United States Savings Stamps..............
Excess profits tax refund bonds
Special notes of the United States:
Internat'l Monetary Fund series............
Total

48,765,040
1,154,665
1,536,000,000
,

Guaranteed obligations (not held by Treasury);
Interest-bearing:
Debentures: F.H.A.
25,239,536
Matured, interest-ceased...
1,708,725
Grand total outstanding
,
Balance face amount o( obligations issuable under above authority

1,585,919,705
277,669,987,188

26^948 p26li
;

! , ,!l,
rr!
*> J U j , U O u , p p l

Reconcilement with Statement of the Public Debt ...X^fe^^.Oi...?.?.*...!.^.^
(Date)

(Daily Statement of the United States Treasury

.?.®S^^!Z...?5.i,....i.2.5§

Tidin8* „• A b. """' 278,181,95.1,61.2
Total gross public debt
Guaranteed obligations not owned by the Treasury......
Total gross public debt and guaranteed obligations.
Deduct » other outstanding public debt obligations not subject to debt limitation

H-7^2

.................

,' r '
1
1
2/0,200 ,yJc9yQ3
p l l , y O / , U?U
277,696,935,149

!!£ g Wfi

nil fu 4i$i$i mi-

;£?
ffSgd) Charles T e Brannan
M T 1 # i < m at 3$|>s«fj.l t4» 4

i:*

,*o

248

TREASURY DEPARTMENT
WASHINGTON, D.C

"7
IiMMEDIATE RELEASE,
Monday, February-21:, 1955.

-H=720

During the month of January 1955,
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

oOo

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Monday, March 14, 1955.

H-743

During the month of February 1955,
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
$77,205,500.

0O0

£ 3 "J

I a m g4er-dto have h»d this opportunity to
ViPw-«--fo-»"»•*»y assistances

trry ,

/kfthe stock market
in the study 'of

thai youi tiuu-u^.i4t««'"t!9 cortd^^tlag. I will be glad to answer any questions
tkat lean on this subject which, as I said at the outset, I long ago discovered I didn't k n o w m u c h about.

- uhave a reasonable spread in comparison to those of corporate bonds, where
margin trading remains on a conservative basis, and where turnover is sufI
ficient to maintain a broad active market yet avoids excessive speculation.
The price rise that has taken place in the stock market during the last

year and a half reflects many viewpoints of millions of people and conditio

not only here at home but from abroad. It is in part the rebirth of confide
in the functioning of our free enterprise system.
It is also perhaps reflecting a new phenomenon in our national life

that is growing daily. The small savings of millions of Americans are being
invested in securities in greater amounts than ever before. This wider

investment isn*t ^ust individual purchases in the market —» it reflects the

rapid growth of pension funds and other group investments. What it means is
that millions of people working in industry today have $5oor $10 or some
such amount deducted from each pay check for their future retirement, and
a good share of that goes into stocks and bonds. They often do not realize
it, but these small savings multiply into hundreds of millions of dollars

of security purchases, which is making millions of people investors in Amer
industry who had never thought of doing it before. ^^ H^4^^ ^^
/•r

I "'/We are. ja^M^D|ilaeent, however, about the problems^ which the new hig
\iyO-^ytlAA^\

y>->'<-C-V-M ^Ajrc-,

C-& i, ?^-tcCiZi .r^Ctf} \^

level of the stock market hAe~-bre^^i4^w4#i-i-t. Federal Reserve action in
January in raising margin requirements was

wfeolesame thing, qpii thff

" '
h&& u*jqj*ft34ii^d Tr&emQa6y~-$H&&&rt*

^7,

A-

TTKJ

Buying on margin isn*t nearly as important

ur^tyiy- &*^
as it used to be, but we want to be sstee that credit in the stock market —
A

s,^ ^t,Civ j^fc- A ^u. cvi *y<^< (£***>+

just like all other kinds of credit — doesn't g&-*e^~ot~h&mds* The Federal
Reserve action simply served as a reminder that paafile-blmuld waboh thuir
^I^^-J k„n., y
asd-sise caution in making commitments. The offering of the new Treasury liO-year

bond in February may also have been helpful in offering an attractive alter
form of investment.

- 3contribution of Government agencies in making available an increasing flow
of valuable statistical information on matters affecting the securities
markets, are of major importance.
Even more important to a healthy market, however, is governmental policy
in assisting the achievement^ of a broad, sound financial base for economic
development. Such a base must rest primarily on the continued stability of
the dollar, with reasonably stable buying power. This means a budget that
is under control and headed for balance. It means a public debt that is
prudently managed. It means a tax system that is fair and equitable — one

which minimizes tax barriers to the initiative of workers and investors alike.
It means monetary and credit policies which will achi^e.,j}ur. gaals. through
the exercise of broad general powers rather than through a crushing maze of
direct controls.
This is the way confidence in the future of America is built. Such confidence is the very life blood not only of a healthy stock market but of a
vibrant growing economy. Government action at best can only assist to
influence the broad direction of healthy markets — whether they are for
stocks, for bonds, or for commodities. The real success of these efforts must

rest squarely upon the people of the United States — as investors, as managers
of business enterprise, or as brokers or stock exchange members.
The market place itself has done much to foster public understanding of
its accomplishments and aims. Stock exchange studies are informative and
useful. The function of enlightened investor services has assumed a new
importance in stimulating constructive thinking.
A healthy stock market can be visualized as one in which prices bear an
appropriate relationship to earnings and to asset values, where stock yiilds

- 2 -

{

i^»T

y ,!

These billions of shares are truly shares in America.

They represent

the ownership of American business/ They are the fountainhead of more and
better jobs —• the invested savings through which the inventive genius of
America can find expression in the development of new products and methods.
Widespread ownership of American industry is to be encouraged. A dynamic
economy is synonymous with increased emphasis on corporate financing through
stock issuance rather than by going further and further into debt. And the
success of new risk-taking enterprise is peculiarly dependent on equity
financing. A healthy stock market is essential if the role of equity financing
in corporate finance is to flourish.
Your Committee's study presents an opportunity for increased public
understanding of the market and its functions at a time when w«~aa?e--all
yh^yyy^ ft AT* «<*-«*/ k^yt^y .^.^^v^-tr^
wair&hlng.jkkfe,m^^kJ[M^JSlm^£Mlly. It is also an opportunity to define
more clearly the Government's place in relation to the stock market p&emre% "
The role of Government ^

to do what it can to assist in making stock market

activity contribute to, rather than detract from, the soundness of our
financial structure.
This takes two forms. Both are important.
The first involves the supervisory responsibilities of the Securities
and Exchange Commission. These are designed, as we all know, to insure fair
and honest markets in securities transactions on the organized exchanges,
through adequate public information on proposed new security issues, adequate
periodic company reports, and the regulation of trading on these exchanges.
The second involves Federal Reserve Board regulation of margin require-

help supply sufficient credit yt&£&MM®&mpa%e excessive w&e-^et credit in st
market trading.

These elements of Government supervision, together with the

"254^

yy
o<y£Cs&s*\,.

Statement by Secretary of the Treasury Humphrey
Before the Senate Committee on Banking and Currency,
h: M A>r^i T-.^^-^y March 15, 1955
*

I welcome the opportunity to participate in your study
of the stock market.
I am not here today to say that the market is either too
high or too low.

I gave up years ago trying to figure out

the stock market. 'l thirtMfoe"-gCH^

Hej^s^a^i^^
st^_j_J«iaiai&^^
f IiijSrfe**arfee-."

^y&^
But I am glad to consider with you the importance of a
healthy stock market to a growing economy^ajQfd^J&Qm^^j^aXSm^!^
t^e^a^^e^sara^^

A healthy stock market is one of the evidences of a strong
and growing nation. The 4-1/2 billion shares listed on the
organized exchanges alone are impressive evidence of the
effectiveness of markets throughout the country in meeting
the needs of pur dynamic economy.

These 4-1/2 billion shares

represent investment by millions of savers throughout the
country. Many millions of them own stocks directly. Many
more
millions/have an interest in stock ownership through the
pension plans where they work of through the financial institutions
that handle their life insurance and other savings. Colleges,
hospitals, religious and charitable institutions, scientific
J4 and other research centers, and many other endowed funds
also rely heavily on stodk ownership.

TREASURY DEPARTMENT
Washington

pqt;
"~ w w

Statement by Secretary of the Treasury Humphrey
before the Senate Committee on Banking and Currency,
10:00 a.m., Tuesday, March 15,1955

I welcome the opportunity to participate in your study of the
stock market.
I am not here today to say that the market is either too
high or too low. I gave up years ago trying to figure out the
stock market.
But I am glad to consider with you the importance of a healthy
stock market to a growing economy.
A healthy stock market is one of the evidences of a strong
and growing nation. The 4-1/2 billion shares listed on the
organized exchanges alone are impressive evidence of the effectiveness of markets throughout the country in meeting the needs of our
dynamic economy. These 4-1/2 billion shares represent investment
by millions of savers throughout the country. Many millions of
them own stocks directly. Many millions more have an interest in
stock ownership through the pension plans where they work or through
the financial institutions that handle their life insurance and
other savings. Colleges, hospitals, religious and charitable
institutions, scientific and other research centers, and many
other endowed funds also rely heavily on stock ownership.
These billions of shares are truly shares in America. They
represent the ownership of American business and property. They
are the fountainhead of more and better jobs — the invested
savings through which the inventive genius of America can find
expression in the development of new products and methods.
Widespread ownership of American industry is to be encouraged.
A dynamic economy is synonymous with increased emphasis on
corporate financing through stock issuance rather than by going
further and further into debt. And the success of new risktaking enterprise is peculiarly dependent on equity financing.
A healthy stock market is essential if the role of equity financing
in corporate finance is to flourish.
Your Committee's study presents an opportunity for increased
public understanding of the market and its functions at a time
when it is a matter of broad public interest. It is also an
opportunity to define more clearly the Government's place in
H-744

9^3
- 2 relation to the stock market's operations. The role of Government
should be to do what it can to assist in making stock market
activity contribute to, rather than detract from, the soundness of
our financial structure.
This takes two forms. Both are important.
The first involves the supervisory responsibilities of the
Securities and Exchange Commission. These are designed, as we
all know, to insure fair and honest markets in securities
transactions on the organized exchanges, through adequate public
information on proposed new security issues, adequate periodic
company reports, and the regulation of trading on these exchanges.
The second involves Federal Reserve Board regulation of margin
requirements, in order to help supply sufficient credit but not
excessive credit in stock market trading. These elements of
Government supervision, together with the contribution of
Government agencies in making available an increasing flow of
valuable statistical information on matters affecting the securities
markets, are of major importance.
Even more important to a healthy market, however, is governmental policy in assisting the achievement of a broad, sound
financial base for economic development. Such a base must rest
primarily on the continued stability of the dollar, with reasonably
stable buying power. This means a budget that Is under control
and headed for balance. It means a public debt that is prudently
managed. It means a tax system that is fair and equitable — one
which minimizes tax barriers to the initiative of workers and
investors alike. It means monetary and credit policies which
will operate through the exercise of broad general powers rather
than through a crushing maze of direct controls.
This Is the way confidence in the future of America is built.
Such confidence is the very lifeblood not only of a healthy stock
market but of a vibrant growing economy. Government action at
best can only assist to influence the broad direction of healthy
markets — whether they are for stocks, for bonds, or for
commodities. The real success of these efforts must rest squarely
upon the people of the United States — as investors, as managers
of business enterprise, or as brokers or stock exchange members.
The market place itself has done much to foster public
understanding of its accomplishments and aims. Stock exchange
studies are informative and useful. The function of enlightened
investor services has assumed a new importance in stimulating
constructive thinking.
A healthy stock market can be visualized as one in which
prices bear an appropriate relationship to earnings and to asset
values, where stock yields have a reasonable spread in comparison
to those of corporate bonds, where margin trading remains on a

?^7
- 3conservative basis, and where turnover is sufficient to maintain
a broad active market yet avoids excessive speculation.
The price rise that has taken place in the stock market
during the last year and a half reflects many viewpoints of
millions of people and conditions not only here at home but from
abroad. It is in part the rebirth of confidence in the functioning of our free enterprise system.
It is also perhaps reflecting a new phenomenon in our national
life that Is growing daily. The small savings of millions of
Americans are being invested in securities in greater amounts than
ever before. This wider investment isn't just individual purchases
in the market — it reflects the rapid growth of pension funds and
other group investments. What it means is that millions of people
working in industry today have $5 or $10 or some such amount
deducted from each pay check for their future retirement, and a
good share of that goes Into stocks and bonds. They often do not
realize it, but these small savings multiply into hundreds of
millions of dollars of security purchases., which is making millions
of people investors in American industry who had never thought of
doing it before. These purchases are largely for long term
investment and so tend to continually work to lessen the floating
supply of the securities they buy.
We are watching attentively the conditions which the new
higher level of the stock market is creating. Federal Reserve
action in January in raising margin requirements was, we believe,
a desirable thing. Buying on margin Isn't nearly as important
as it used to be, but we want to be watchful to see that credit
in the stock market -- just like all other kinds of credit —
doesn't exceed the reasonable demands. The Federal Reserve action
simply served as a reminder that caution should be used in making
commitments. The offering of the new Treasury 40-year bond in
February may also have been helpful in offering an attractive
alternative form of investment,
I am pleased to have this opportunity to assist in any way
that I can in the study you are making of the stock market.
I will be glad to answer any questions on this subject which, as
I said at the outset, I long ago discovered I didn't know much
about.
oOo

r\C

- 2-

It has been said m a n y times that this inquiry is a friendlystudy, with the best of intentions, and only to obtain more
knowledge. More knowledge is always a good thing. But as
criticism of the Government and suggestions for restrictive
actions have been made from day to day before the Committee^
and in the public press, with discussion of restrictive action
that the Government might or might not engage JfiXX in, they
can easily contribute to a questioning of confidence and uncertainty
as to what the future may hold.
A feeling of confidence in the future has been strong and
has moved up on a brodd front for the past several months.
Business activity has been BqasxxfcBxg expanding and this month
that we are in today may well be one of the highest months of
activity we have ever had in our history. We are on sound
economic ground, based on sound economic principles, and there
is no reason why we should not go forward unless confidence is
badly incx injured or destroyed.

ADD SECRETARY HUMPHREY'S STATEMENT
There is just one word of caution that I want to leave with
you: Confidence -» or lack of it -- has more to do with conduct
of investors, businessmen, and the great mass of the people
generally than any single thing. If there is confidence in the futur
in the stability of the economy, and in the maintenance of jobs,
the American people continue to buy the things they need and the
things they want. But most American families are in position
today to buy more than the bare necessities of life. When they
have confidence, they buy things that they do not absolutely need
but things that they want. If they lose confidence, they postpone
or cancel those purchases.
Businessmen either move forward with plant expansion -with the creation of XHX new jobs -« or they are cautious and
restrained, based on confidence. And investors are perhaps
more sensitive than any in governing their conduct in confidence
they have or lack.
Confidence is a subtle thing. It is built slowly and can be
easily shaken. It manifests itself in many ways. A crowd leaving
a theatre at the close of a play will walk out in orderly fashion in
short order. But if as the curtain goes down someone calls "fire,'
terror can reign and great injury result.

TREASURY DEPARTMENT
Washington
Further statement by Secretary of the Treasury
Humphrey before the Senate Committee on Banking
and Currency, 10:00 a.m., Tuesday, March 15, 1955
There is just one word of caution that I want to leave with
you: Confidence — or lack of it — has more to do with conduct
of investors, businessmen, and the great mass of the people
generally than any single thing. If there is confidence in
the future, in the stability of the economy, and in the
maintenance of jobs, the American people continue to buy the
things they need and the things they want. But most American
families are in position today to buy more than the bare
necessities of life. When they ftaVe confidence, they buy things
that they do not absolutely need but things that they want.
If they lose confidence, they postpone or cancel those purchases.
Businessmen either move forward with plant expansion —
with the creation of new jobs — or they are cautious and
restrained, based on confidence. And investors are perhaps more
sensitive than any in governing their conduct in confidence they
have or lack.
Confidence is a subtle thing. It is built slowly and can
be easily shaken. It manifests itself in many ways. A crowd
leaving a theatre at the close of a play will walk out in
orderly fashion in short order. But if as the curtain goes
down someone calls "fire," terror can reign and great injury
result.
It has been said many times that this inquiry is a friendly
study, with the best of intentions, and only to obtain more
knowledge. More knowledge is always a good thing. But as
criticism of the Government and suggestions for restrictive
actions have been made from day to day before the Committee
and in the public press, with discussion of restrictive action
that the Government might or might not engage In, they can
easily contribute to a questioning of confidence and uncertainty
as to what the future may hold.
A feeling of confidence in the future has been strong and
has moved up on a broad front for the past several months.
Business activity has been expanding and this month that we are
in today may well be one of the highest months of activity we
have ever had in our history. We are on sound economic ground,
based on sound economic principles, and there is no reason why
we should not go forward unless confidence is badly injured or
oOo
destroyed.
H-744-A

<r*> r

- 13

productive work, improving methods, and cutting out waste wherever we can
find it.
In connection with specific activities, I have given some illustrations
of savings from management improvements. The aggregate savings for the whole
Department were over $12 million in fiscal 1953 and well over $20 million
in fiscal 1954. The 1952 figure was $4 million and the highest previous
year for which we have figures was $8 million in 1951.
In closing, I would like to ^fpe that I am proud to "be a member of the
Eisenhower Administration and the Treasury ^eam. I also want to stress the
loyalty, hard-work, and devoted service *,M?<e£rweH3g^^ the Department If
employees. We are all striving to give the American people a fair, honest,
and efficient Government in which they will have 9amaaawae confidence. Such
confidence is basic to our policies of providing stability in the value of
the dollar and a solid hasis for economic growth.

?-«. w t-

Finally, there are the Treasury's newest duties, those given the
Secretary last year for administering the Federal Facilities Corporation,
the liquidation of the R. F. C, and various defense lending programs*
/ 1

j The Federal Facilities Corporation has been conducting the Government's

program for the production and sale of synthetic rubber and refined tin*
It is currently expected that the synthetic rubber producing facilities will
soon be sold to private interests, and that production of tin will be discontinued at the close of the current fiscal year.
The liquidation of the R. F. C. is being carried out as expeditiously
as possible under the general policy of securing the highest possible
return on the funds invested in R. F. C. assets without creating undue
hardships for those indebted to the Corporation.
The programs for defense production and civil defense lending are being
carried "bri at the minimum levels required under present international S M : m P military conditions* Loans previously made under these programs are being

placed in the hands of private financial institutions as rapidly as possible*

overstaffed so much under the past Admini strati on as some other, Department
the opportunity for savings was not so great. Nevertheless, in the last
two years we have been able to make significant improvements in the management of this Department. While the total civilian employment of the Treasury
is down from almost 38,000 to about 79,000 - a drop of -ew 9,000 or 10 percent - the enforcement activities have been strengthened by emphasizing more

- 11 -

The Bureau of Narcotics administers a program designed to deal with
the control of permissive manufacture, distribution, and sale of drugs as
well as the control of sources of the illicit supply of drugs on international, national, and local levels. The Farcotic Agent1s job is ferreting
out gangsters and drug traffickers and "bringing them "before the courts.

Some of the most effective work done iby this little Bureau is in collaboration with foreign police.
Hext I come to the U. S. Coast Guard, a branch of the military service

at all times, a wing of the Treasury Department during peace, and a fighting
arm of the fla-vy in time of war or whenever the President so directs*
The primary peacetime activity of the Coast Grard is to prevent avoidable loss of life and property. The Coast Guards activities include airsea rescue duties, port security responsibilities, maintaining aids to
navigation including ice patrol work, operation of lighthouses and ocean
weather stations, and inspection of merchant vessels and their equipment.
A dramatic example of the skill and courage of the men of the Coast
Guard was the rescue of the crew of a Military Air Transport Service
plane in the mid-Atlantic in January.

9C
y •>->

iA*fr*JA-aJL
peddler, and moonshiner. Some of theseYactivlties areflfljBfeMrout by
groups I have already mentioned, the Revenue Service and the -Bureau of
Customs*

Other Treasury enforcement activities are conducted by the U . S .

Secret Service, Bureau of Narcotics, and the U. S. Coast Guard.
^ j The Secret Service is a small and compact organization with three major
functions. The first is the protection of the President and his family,
the President-elect, and the Vice President at his request.

The second is

the suppression of counterfeiting of the currency and other obligations
and securities of the Government*

The third is the suppression of the

forgery and fraudulent negotiation of Government checks and bonds*
An example of the excellent work done by the Secret Service is in
detecting counterfeiting*

While there has been no appreciable reduction

in counterfeiting since 1951, there has been marked reduction in -the
amount of counterfeit money in circulation*

This is due to successful

efforts by Secret Service Agents to discover counterfeiters and the seizure
of counterfeiting plants before the money can be placed in circulation.
The "Know Tour Moneyn/program of the Secret Service paid off in a
case near Pittsburgh^Pffiigfllif-rtfln, when a 14-year-old high school boy
detected a counterfeit $10 note after it was passed by one of three men in
a car. The boy called to another clerk to get the license number of the
automobile which bore an Indiana tag. The Secret Service was notified,
the car was traced and with the help of Indiana police, the three men were
arrested and charged with passing nearly $300 in bogus notes in and around
Pittsburgh.

The boy responsible for their capture said he had studied the

Secret Service material on the detection of counterfeit money as a part of
his school1 s Problems of Democracy class. The three men are now awaiting
trial.

QQK.

- 9 Bureau are carried out on a completely reimbursable basis, as authorized

by Congress in 1950* Lower production costs are passed on to other agencies
in the form of reduced costs for currency, bonds, and the Uke. Improved
management techniques are paying large dividends in this Bureau as in
other Treasury activities. For-example, in fiscal 1953 currency printing
was converted from 12 subjects in each sheet to 18 subjects giving an
annual saving of over $4 million. Starting in fiscal 1954 savings of
almost $450,000 a year were made by converting $25 Savings Bonds from expensive plate printing to the offset method. A similar change in the
printing of liquor tax stamps is saving over $125>0OO each year. $50 and
$100 bonds have now been changed also, with additional annual savings of
$150,000.
The main jobs of the Bureau of the Mint are the manufacture of coins
and physical custody of the United States monetary stocks of gold and
silver, including their purchase and sale. Coinage mints are in operation
in Philadelphia and Denver, and, as you probably know, gold is deposited
at Fort Knox, Kentucky, and silver at West Point, New York. Coinage
production for the present fiscal year is expected to be over one billion
pieces. Although salary costs have risen considerably, coinage costs are
lower today than they were several years ago* The cost of shipping coins
has been cut $250,000 a year by using armored cars and trucks instead of
express. Additional annual savings of about $415*000 will commence this
year as a result of discontinuing coinage operations recently in San
Francisco and the closing of -the Seattle Assay office.
Turning now to Treasury enforcement agencies, there are employees who

act against the smuggler, counterfeiter, check forger, tax evader, narcotic

- 8 remarkable progress has been made in utilizing new, efficient procedures.
Conversion from paper to card checks alone provided $327,000 in recurring
annual savings in fiscal 1953 and an additional $112,000 inll954- Decentralization of the destruction of unfit currency is saving over $600,000 a year.
The Bureau of Accounts performs many fiscal activities. In addition
to the payment function, other main jobs of this Bureau include central
summary accounting and financial reporting for the entire Government*

The

Bureau1 s Division of Disbursement in fiscal 1956 is expected to process

job.

6
The Comptroller of the Currency has general supervision over all
national banks including such matters as the organization of new banks,
consolidations, mergers, and the operation of branches. The main working
force is in the field, the examiners and their assistants who make periodic
examinations of national banks to determine their solvency and compliance
with the laws relating to national banks. The personnel of this office is
paid exclusively from assessments against national banks.
The Treasury through the Bureau of Engraving and Printing and the
5

Bureau of the Mint producekthe Nation's stamps, bonds, coins, and currency.
The Bureau of Engraving and Printing designs, engraves, and prints
currency, securities, postage and revenue stamps, Government checks, military commissions and certificates, and other Government engraving work.
This is a large scale production operation employing more than 4,000 people,
about 2,000 less than when we came to Washington. The operations of the

?&1

- 7 Closely related are the activities of the U, S. Savings Bonds Division.
The function of this Division, of course, is to promote the continued
purchase of Series D and H Savings Bonds and to encourage owners of these
bonds to hold them rather than cashing them prior to maturity*
Excellent progress lias been made in the Savings Bonds Program* Cash
sales of Series E and H bonds in 1954 were the best in nine years and the
net sales, that is the excess of cash sales over redemptions, were the
highest in five years. The Series E and H bond holdings reached an alltime peak of $38.2 billion in cash value in the hands of over 40 million
of our citizens. Through the Savings Bonds Program many people, for the
first time in their lives, have become systematic and substantial savers.
The success of this program is in large part a reflection of the
active support of the many thousands of patriotic, public-spirited volunteers who give the Treasury their time, energy, and influence to sell
Savings Bonds.
The Treasurer of the United States is the official custodian of the

public funds. Although practically all functions'of the Treasurer are rigid
prescribed by law and have been performed by the Office of the Treasurer
since 1778,

-6 The Bureau of Customs has as its main duties assessing and collecting
duties and taxes on imported merchandise and baggage; preventing smuggling;
and enforcing various export control laws. Customs1 personnel is now about
8,000, a 10 percent reduction from the figure at the end of 1952. The
staff of this bureau is doing an efficient job in the face of a growing
work load.
Progress has been made in eliminating difficulties of importers and
others in processing goods through Customs, and in facilitating Customs
procedures for travelers. Much of this was made possible by legislation
sponsored by the Department and passed by the 83rd Congress*

Further

efforts towards desirable changes in the law are being made.
/

f Liquidation backlogs have been substantially reduced; required docu-

mentation for Customs purposes has been simplified; and several significant
aids for travelers have been placed in effect. Customs officers strive to
maintain uniform courtesy and efficiency with the tact and patience of
diplomats in spite of the careful examination of baggage which they make
to detect violations at ports of entry - violations which are attempted by
only a very small percentage of passengers.
Turning now from revenue collection to the public debt, the-se* operating
activities are centered primarily in the Bureau of the Public Debt.
This Bureau has been steadily reducing its work force and at the same
time has furnished prompt and satisfactory service to holders of Government
securities. The Bureau this year is expected to handle the issuance or
retirement of more than 180 million individual securities.

2B3

- 5 number of revenue agents has increased from about 7*500 at the end of 1952
to almost 11,000 at the end of 1954. This step-up in enforcement personnel
has enabled the Service to do a more complete job of auditing returns than
was previously possible. In the last six months of 1954 the Service audited
10 percent more returns than in the same period in 1953 and additional taxes
produced by audit and other enforcement work increased $120 million* Suceessfulyprosecutions of tax evadersjwerejup 27'percent in 1954 over the

1953 level. In fiscal 1954 the cost of the Revenue Service was only 38.5$
for every $100 which the Service collected.
The Revenue Service has been making notable progress in increasing the
effectiveness of its collection work. At the same time better day-to-day
service is being given the taxpaying citizens of our country* Tax disputes
pending before the Appellate Division have been reduced 57 percent in the
last two years, thereby enabling taxpayers to settle disputes more promptly.
Facilities for helping taxpayers fill out their returns have been expanded;
this and other steps will help taxpayers take full advantage of the many
beneficial tax changes made by Congress last year. All tax forms are under
continuous study in an effort to make them more simple and understandable*
This year a new small punch-card tax return is available for wage earners
with incomes less than $5*000.
The Service, as you know, suffered from a period of scandals before

this Administration came into office. Through decentralization and a thorough
reorganization, the Service has been greatly strengthened. We are proud of
the work now being done by the Revenue Service, which has as its objective
fair treatment to both the taxpayer and the Government.

-4 gradually but effectively, being followed again to provide sound money, a
firm foundation for economic growth, and opportunity for every American.
This background on the Administration's progress in fiscal matters
puts in perspective the operations of the Treasury Department; for the
principal activities of the Department are the development and implementation of monetary and fiscal policies, management of the debt, collection of
Government revenue, and the manufacture of stamps, bonds, coins, and
currency* More than 90 percent of the Treasury's 79*000 civilian employees
are engaged in these activities.
The development of over-aH Department policies is carried on in the
Office of the Secretary. In this office is the Analysis Staff which coordinates our studies of taxation, financing, and debt management* Also
there are others working out the legal, fiscal, and administrative
aspects of the Department's policies including many important activities
in the field of international finance.
/// Over-all policies, which are developed in the Office of the Secretary,
are carried out by our operating bureaus. The largest of these activities
is that of revenue and customs collection, carried on by the Internal
Revenue Service and the Bureau of Customs* The size of the job is shown in
the amount of Government receipts. In the 1954 fiscal year internal revenue

receipts were almost $62 billion and customs receipts exceeded half a billion
dollars.
To carry out its work, the Internal Revenue Service had about 50,000
employees at the end of 1954. This was a reduction of almost 4,000 since
the end of 1952. While the total employment of the Service has dropped, the

€>

- 3 stable for the last two years, compared with a drop in value from 100£ in
1939 to 52# in 1952. During these two years, the cost of living has risen
less than 1/2 of 1%. The importance of sound money was recently pointed
out by economists of the American Federation of labor, as reported in the
P P O O X t ^*^y

•Q

H^n, *

y^$<#ir*4>*t

"Unionized workers had fared betters© the wage front in the 'recession yea** of 1954 than in any othe^gostwar year. Higher
hourly wages and stable living costs had given most workers their
greatest postwar gain in purchasing power. Th* was true even
though the averagi pay rise of 5*9£ an hour haaNs^en modest by
comparison with the\increases in previous years. XJast year the
wage earner got the rail benefit of his fatter pay envelope. In
other years inflation gobbled up much of his gains."
A fundamental part of our sound money program has been the management
of the public debt in the interest of monetary stability. The public debt
of $278 billion is being handled wisely.

Progess is being made toward our

basic objective of lengthening the average maturity of the debt so that our
huge debt is more manageable. Accelerated sales of United States Savings
Bonds are stimulating widespread ownership of the debt by individuals.
Finally, our central banking system, the Federal Reserve organization, has
been allowed to carry out, in the interest of the American people, flexible
monetary policies directed toward economic stability and growth*
A well-planned program, using the several fiscal and monetary tools I
have mentioned, has enabled the Nation to stop the inflationary trend and
make the necessary adjustment to a sound basis without a serious deflation
and without direct government controls. We have merely put into effect
great American traditions established at the very founding of the republic
by Alexander Hamilton and carried forward by great men of all parties.
While these traditions were cast aside for many years, they are now,

,A'l"

iWSWWOaWWiMSIMasfo,^

"The American Federation of Labor reported today that
unionized workers had fared better on the wage front in the
'recession year' of 1954 than in any other postwar year, y
"A research report was given by the federation's staff
economists.

It said higher hourly wages and stable living

costs had given most workers their greatest postwar gain in
purchasing power.„ ^y
,f

This was true, the report said, even though the average

pay rise of 5 to 9 cents an hour had been 'modest' by comparison
with the increases in previous years. Last year the wage-earner
got the full benefit of his fatter pay envelope. In other years
inflation gobbled up much of his gains, the economists explained."

"Unionized labor fared b#tter in IS54 on
the wage fronfcj^an in any other postwar
l^tl: * h±S^^6fply
wages and stable living

posrwarS^^°J^ rke ^ their greatest"

A
/2^X
—
r -* *

post-war gain^fi BrfJaK-fiasjinfiKpower
This waq
, _.
per hour was modesti2^om%r?Sori with Increases
P

iot thr?ni ^r -..

LaSt

yeSCthe wage earner

got the fulj. benefit of a f att^k pay envelope
in^other years inflation gobbled V m S K f h i B

^
-y

y^J

- 2a Simultaneous with the cutting of taxes, steady progress has been made
towards a balanced administrative budget. For fiscal 1956 we expect a
deficit of $2*4 billion, down $7*0 billion from the 1953 figure. On a
cash basis, comparing the total amount of money we collect and the amount
we pay out, the cash deficit was almost eliminated last year and a small
cash surplus is currently anticipated for 1956.
The budget could have been balanced last year if the heavy cuts in
spending had not been accompanied by substantial tax cuts. But tax reduction helped sustain the economy in a period of transition to lower levels
of Government expenditures. Personal income in the last quarter of 1954
was up $1.? billion from the fourth quarter of 1953 • At the same time
personal taxes fell at the annual rate of $3.0 billion. As a result,
y i, MA,*%, , <• < • 0y^M 'fiwAfr'?

disposable personal income in the iiast quarter of 1954 was at the annual

rate of almost $256 billion, an increase of $4*7 billion over the comparable
period in 1953*

^*» A&&WQ

/lN&uw M ^ ^ ^

/^Ju^fj^^^

J***J

TrTaxes remain high ancf present a serious obstacle to the long-term
dynamic growth of the economy. But the Government must always make adequate
provision for National Security and other essential services. Further tax
reductions can only be made as savings in Government spending or increased
revenues resulting from growth in our economy are in sight.
This encouraging progress in reducing the deficit has helped to give
the American people a sound dollar. The value of the dollar has been

- 2 Last year taxes were cut $7*4 billion, the largest dollar tax reduction
in one year in our Nation's history. This tax reduction cushioned the impact
on the economy of the sharp reduction in Federal spending. Of the cuts, $3
billion was in individual income taxes, $2 billion resulted from the termination of the excess profits tax, and $1 billion represented excise tax
reductions•
The balance of $1.4 billion is accounted for by reductions included in
the 1954 Internal Revenue Code revision. This recasting of the tax laws
was a big step in impiroving our tax system. It had two main objectives: to
remove many of the hardships to individuals which had crept into the tax
laws; and to remove barriers to economic growth, and by so doing let American
ingenuity go ahead full steam under the free enterprise system which has made
this country great. ?
The tax revision law helped millions upon millions of taxpayers who
had been plagued by unjust and unfair hardships for many, many years. This
relief went to many millions of citizens in all walks of life and all income
levels including working women, farmers, small businessmen, retired people
on pensions, widows, and people in hospitals or with medical expense.
The tax revision law sought to help permit the economy to expand and
provide more and better jobs. The partial relief of the double taxation of
dividends is one of the provisions which help stimulate the investments which
make jobs. The more flexible allowance for depreciation also stimulates the
replacement of outmoded equipment and the building of more efficient plants,
which lead to more jobs and the production of better goods.
We must continue in the future to eliminate other hardships in the tax
laws as well as remove additional barriers to economic growth whenever our
financial situation will permit the tax loss involved.

«*1 V*

TREASURY DEPARTMENT
Washington
FOR RELEASE ON DELIVERY /-/- H'fS
Remarks by Marion B. Folsom, Under Secretary of
the Treasury, before the Women's National Republican
Club, New York City, 2:30 p.m., fuesday,
March 15, 1955
The Treasury Department under the Eisenhower Administration
In earlier years March 15 perhaps was not the best psychological moment
for Treasury Department representatives to talk about the activities of the
Department. But the shift of the individual income tax day to April 15
this year may make it easijer for me to talk to you today about the Treasury,
its activities, problems, and accomplishments*
First, though, I want to describe briefly the progress of the Administration as a whole in the fiscal field, which includes the income and outgo
of the Government, taxes, debt, and the Budget. While most of my remarks
this afternoon will be about specific operational activities of the Treasury,
we are, as you know, vitally concerned with the over-all fiscal problems of
the Government.
This Administration has been dedicated to the policies of economy in
Government, tax reduction, and a sound dollar. When we cane to Washington
we were faced with serious deficits- one of $9.4 billion in fiscal 1953,
and a further $11 billion deficit in sight for fiscal 1954. We could do
little about the 1953 deficit, but we cut the projected 1954 deficit to
$3 billion. Due to the intensive work by all departments, spending has been
cut so that for fiscal 1956 it is expected to be about $12 billion below the
actual 1953 level, a huge reduction in so short a time.

TREASURY DEPARTMENT
Washington

H-745
FOR RELEASE ON DELIVERY
Remarks by Marion B. Folsom, Under Secretary of the
Treasury, before the Women's National Republican
Club, New York City, 2:30 p*m*, Tuesday, March 15, 1955
The Treasury Department under the Eisenhower Administration
In earlier years March 15 perhaps was not the best psychological
moment for Treasury Department representatives to talk about the activities:
of the Department. But the shift of the individual income tax day to
April 15 this year may make it easier for me to talk to you today about
the Treasury, its activities, problems, and accomplishments*
First, though, I want to describe briefly the progress of the
Administration as a whole in the fiscal field, which includes the income
and outgo of the Government, taxes, debt, and the Budget* While most of
my remarks this afternoon will be about specific operational activities
of the Treasury, we are, as you know, vitally concerned with the overall fiscal problems of the Government*
This Administration has been dedicated to the policies of economy in
Government, tax reduction, and a sound dollar* When we came to Washington
we were faced with serious deficits — one of $9*4 billion in fiscal 19$3,
and a further $11 billion deficit in sight for fiscal 1954* We could do
little about the 1953 deficit, but we cut the projected 1954 deficit to
f?3 billion. Due to the intensive work by all departments, spending has
been cut so that for fiscal 1956 it is expected to be about $12 billion
below the actual 1953 level, a huge reduction in so short a time0
Last year taxes were cut f>7«4 billion, the largest dollar tax reduction
in one year in our Nation's history. This tax reduction cushioned the
imoact on the economy of the sharp reduction in Federal spending. Of the
cuts, %3 billion was in individual income taxes, $2 billion resulted from
the termination of the excess profits tax, and $1 billion represented
excise tax reductions*
The balance of c$l*4 billion is accounted for by reductions included
in the 1954 Internal Revenue Code revision* This recasting of the tax
laws was a big step in improving our tax system. It had two main objectives:
to remove many of the hardships to individuals which had crept into the tax
laws; and to remove barriers to economic growth, and by so doing let
American ingenuity go ahead full steam under the free enterprise system
which has made this country greato

- 2-

2 T 7

The tax revision law helped millions upon millions of taxpayers who
had been plagued by unjust and unfair hardships for many, many years.
This relief went to many millions of citizens" in all walks of life and
all income levels including working women, farmers, small businessmen,
retired people on pensions, widows, and people in hospitals or with
medical expense*
The tax revision law sought to help permit the economy to expand and
provide more and better jobs. The partial relief of the double taxation
of dividends is one of the provisions which help stimulate the investments
which make jobs. The more flexible allowance for depreciation also
stimulates the replacement of outmoded equipment and the building of more
efficient plants, which lead to more jobs and the production of better
goods*
We must continue in the future to eliminate other hardships in the
tax laws as well as remove additional barriers to economic growth whenever
our financial situation will permit the tax loss involved.
Simultaneous with the cutting of taxes, steady progress has been
made towards a balanced administrative budget. For fiscal 19$6 we expect
a deficit of $2*4 billion, down $7*0 billion from the 1953 figure. On a
cash basis, comparing the total amount of money we collect and the amount
we pay out, the cash deficit was almost eliminated last year and a small
cash surplus is currently anticipated for 1956.
The budget could have been balanced last year if the heavy cuts in
spending had not been accompanied by substantial tax cuts* But tax reduction helped sustain the economy in a period of transition to lower levels
of Government expenditures. Personal income in the last quarter of 1954
was up $1«7 billion from the fourth quarter of 1953* At the same time
personal taxes fell at the annual rate of $3*0 billion. As a result,
disposable personal income, i.e. income after taxes, in the last quarter
of 1954 was at the annual rate of almost $256 billion, an increase of $4.7
billion over the comparable period in 1953. This was the main reason for
the continuous rise in personal spending during 1954»
Taxes remain high and present a serious obstacle to the long-term
dynamic growth of the economy. But the Government must always make
adequate provision for National Security and other essential services.
Further tax reductions can only be made as savings in Government spending
or increased revenues resulting from growth in our economy are in sight*
This encouraging progress in reducing the deficit has helped to give
the American people a sound dollar. The value of the dollar has been
stable for the last two years, compared with a drop in value from 100$ in
1939 to 520 in 1952. During these two years, the cost of living has risen
less than l/2 of 1%9 The importance of sound money was recently pointed out
by economists of the American Federation of Labor, as reported in the
New York Times:

278
- 3"The American Federation of Labor reported today that unionized
workers had fared better on the wage front in the 'recession
year * of 1954 than in any other postwar year* A research report
was given by the federation's staff economists. It said higher
hourly wages and stable living costs had given most workers
their greatest postwar gain in purchasing power. This was true,
the report said, even though the average pay rise of 5 to 9 cents
an hour had been 'modest' by comparison with the increases in
previous years. Last year the wage-earner got the full benefit
of his fatter pay envelope. In other years inflation gobbled up
much of his gains, the economists explained*"
A fundamental part of our sound money program has been the management
of the public debt in the interest of monetary stability. The public debt
of $278 billion is being handled wisely* Progress is being made toward our
basic objective of lengthening the average maturity of the debt so that our
huge debt is more manageable. Accelerated sales of United States Savings
Bonds are stimulating widespread ownership of the debt by individuals.
Finally, our central banking system, the Federal Reserve organization, has
been allowed to carry out, in the interest of the American people, flexible
monetary policies directed toward economic stability and growth*
A well-planned program, using the several fiscal and monetary tools I
have mentioned, has enabled the Nation to stop the inflationary trend and
make the necessary adjustment to a sound basis without a serious deflation
and without direct government controls. We have merely put into effect
great American traditions established at the very founding of the republic
by Alexander Hamilton and carried forward by great men of all parties*
While these traditions were cast aside for many years, they are now,
gradually but effectively, being followed again to provide sound money, a
firm foundation for economic growth, and opportunity for every American*
This background on the Administration's progress in fiscal matters
puts in perspective the operations of the Treasury Department; for the
principal activities of the Department are the development and implementation of monetary and fiscal policies, management of ti.e debt, collection of
Government revenue, and the manufacture of stamps, bonds, coins, and
currency. More than 90 percent of the Treasury's 79,000 civilian employees
are engaged in these activities.
The' development of over-all Department policies is carried on in the
Office of the Secretary. In this office is the Analysis Staff which coordinates our studies of taxation, financing, and debt management. Also
there are others working out the legal, fiscal, and administrative
aspects of the Department's policies including many important activities
in the field of international finance*

-u -

27 S

Over-all policies, which are developed in the Office of the Secretary,
are carried out by our operating bureaus* The largest of these activities
is that of revenue and customs collection, carried on by the Internal
Revenue Service and the Bureau of Customs* The size of the job is shown in
the amount of Government receipts. In the 1954 fiscal year internal revenue
receipts were almost $62 billion and customs receipts exceeded half a
billion dollars.
To carry out its work, the Internal Revenue Service had about 50,000
employees at the end of 1954. This was a reduction of almost 4,000 since
the end of 1952. While the total employment of the Service has dropped, the
number of revenue agents has increased from about 7,500 at the end of 1952
to almost 11,000 at the end of 1954* This step-up in enforcement personnel
has enabled the Service to do a more complete job of auditing returns than
was previously possible. In the last six months of 1954 the Service audited
10 percent more returns than in the same period in 1953 and additional taxes
produced by audit and other enforcement work increased $120 million*
Successful prosecutions of tax evaders were up 27 percent in 1954 over the
1953 level. In fiscal 1954 the cost of the Revenue Service was only 38*5$
for every $100 which the Service collected*
The Revenue Service has been making notable progress in increasing the
effectiveness of its collection work. At the same time better day-to-day
service is being given the taxpaying citizens of our country. Tax disputes
pending before the Appellate Division have been reduced 57 percent in the
last two years, thereby enabling taxpayers to settle disputes more promptly*
Facilities for helping taxpayers fill out their returns have been expanded;
this and other steps will help taxpayers take full advantage of the many
beneficial tax changes made by Congress last year* All tax forms are under
continuous study in an effort to make them more simple and understandable*
This year a new small punch-card tax return is available for wage earners
with incomes less than $5^000.
The Service, as you know, suffered from a period of scandals before
this Administration came into office. Through decentralization and a
thorough reorganization, the Service has been greatly strengthened* We
are proud of the work now being done by the Revenue Service, which has
as its objective fair treatment to both the taxpayer and the Government*
The Bureau of Customs has as its main duties assessing and collecting
duties and taxes on imported merchandise and baggage; preventing smuggling;
and enforcing various export control laws. Customs' personnel is now about
8,000, a 10 percent reduction from the figure at the end of 1952* The
staff of this bureau is doing an efficient job in the face of a growing
workload*
Progress has been made in eliminating difficulties of importers and
others in processing goods through Customs, and in facilitating Customs
Drocedures for travelers. Much of this was made possible by legislation
sponsored by the Department and passed by the 83rd Congress. Further
efforts towards desirable changes in the law are being made.

- 5-

280
Liquidation backlogs have been substantially reduced; required documentation for Customs purposes has been simplified; and several significant
aids for travelers have been placed in effect. Customs officers strive to
maintain uniform courtesy and efficiency with the tact and patience of
diplomats in spite of the careful examination of baggage which they make
to detect violations at ports of entry — violations which are attempted
by only a very small percentage of passengers.
Turning now from revenue collection to the public debt, operating
activities are centered primarily in the Bureau of the Public Debt,
This Bureau has been steadily reducing its work force and at the same
time has furnished prompt and satisfactory service to holders of Government
securities0 The Bureau this year is expected to handle the issuance or
retirement of more than 180 million individual securities.
Closely related are the activities of the U. S* Savings Bonds Division*
The function of this Division, of course, is to promote the continued
purchase of Series E and H Savings Bonds and to encourage owners of these
bonds to hold them rather than cashing them prior to maturity*
Excellent progress has been made in the Savings Bonds Program. Cash
sales of Series E and H bonds in 1954 were the best in nine years and the
net sales, that is the excess of cash sales over redemptions, were the
highest in five yearso The Series E and H bond holdings reached an alltime peak of $38*2 billion in cash value in the hands of over 40 million
of our citizens. Through the Savings Bonds Program many people, for the
first time in their lives, have become systematic and substantial savers*
The success of this program is in large part a reflection of the
active support of the many thousands of patriotic, public-spirited volunteers who give the Treasury their time, energy, and influence to sell
Savings B^nds*
The Treasurer of the United States is the official custodian of the
public funds. Although practically all functions of the Treasurer are
rigidly prescribed by law and have been performed by the Office of the
Treasurer since 1778, remarkable progress has been made in utilizing new,
efficient procedures* Conversion from paper to card checks alone provided
$327,000 in recurring annual savings in fiscal 1953 and an additional
$112,000 in 1954. Decentralization of the destruction of unfit currency
is saving over $600,000 a year.
The Bureau of Accounts performs many fiscal activities* In addition
to the payment function, other main jobs of this Bureau include central
summary accounting and financial reporting for the entire Government. The
Bureau's Division of Disbursement in fiscal 1956 is expected to process
over 200 million check payments; this gives some idea of the size of the
Bureau's job.

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281

The Comptroller of the Currency has general supervision over all
national banks including such matters as the organization of new banks,
consolidations, mergers, and the operation of branches. The main working
force is^m the field, the examiners and their assistants who make periodic
examinations of national banks to determine their solvency and compliance
with the laws relating to national banks. The personnel of this office is
paid exclusively from assessments against national banks*
The Treasury through the Bureau of Engraving and Printing and the
Bureau of the Mint produces the Nation's stamps, bonds, coins, and currency.
The Bureau of Engraving and Printing designs, engraves, and prints
currency,, securities, postage and revenue stamps, Government checks, military commissions and certificates, and other Government engraving work.
This is a large scale production operation employing more than 4,000 people,
about 2,000 less than when we came to Washington. The operations of the
Bureau are carried out on a completely reimbursable basis, as authorized
by Congress in 1950. Lower production costs are passed on to other agencies
in the form of reduced costs for currency, bonds, and the like. Improved
management techniques are paying large dividends in this Bureau as in
other Treasury activities. For example, in fiscal 1953 currency printing
was converted from 12 subjects in each sheet to 18 subjects giving an
annual saving of over )4 million. Starting in fiscal 1954 savings of
almost $450,000 a year were made by converting 12$ Savings Bonds from expensive plate printing to the offset method* A similar change in the
printing of liquor tax stamps is saving over $,125,000 each year. $50 and
$100 bonds have now been changed also, with additional annual savings of
$150,000.
The main jobs of the Bureau of the Mint are the manufacture of coins
and physical custody of the United States monetary stocks of gold and
silver, including their purchase and sale. Coinage mints are in operation
in Philadelphia and Denver, and, as you probably know, gold is deposited
at Fort Knox, Kentucky, and silver at West Point, New York. Coinage
production for the present fiscal year is expected to be over one billion
pieces. Although salary costs have risen considerably, coinage costs are
lower today than they were several years ago. The cost of shipping coins
has been cut $250,000 a year by using armored cars and trucks instead of
express. Additional annual savings of about $415*000 will commence this
year as a result of discontinuing coinage operations recently in San
Francisco and the closing of the Seattle Assay office*
Turning now to Treasury enforcement agencies, there are employees who
act against the smuggler, counterfeiter, check forger, tax evader, narcotics
peddler, and moonshiner. Some of these illegal activities are ferreted
out by groups I have already mentioned, the Revenue Service and the Bureau
of Customs, Other Treasury enforcement activities are conducted by the
U. S. Secret Service, Bureau of Narcotics, and the U. S. Coast Guard.

- 7-

29 ~J
fc- l_' e _

^ The Secret Service is a small and compact organization with three
major functions* The first is the protection of the President and his family,
and the President-elect, and the Vice President at his request. The second
is the suppression of counterfeiting of the currency and other obligations
and securities of the Government. The third is the suppression of the
forgery and fraudulent negotiation of Government checks" and bonds.
An example of the excellent work done by the Secret Service is in
detecting counterfeiting. While there has been no appreciable reduction
in counterfeiting since 1951* there has been marked reduction in the
amount of counterfeit money in circulation. This is due to successful
efforts by Secret Service Agents to discover counterfeiters and the seizure
of counterfeiting plants before the money can be placed in circulation.
The "Know Your Money" educational program of the Secret Service paid
off in a case near Pittsburgh when a 14-year-old high school boy detected
a counterfeit $10 note after it was passed by one of three men in a car*
The boy called to another clerk to get the license number of the automobile
which bore an Indiana tag. The Secret Service was notified, the car was
traced and with the help of Indiana police, the three men were arrested and
charged with passing nearly $300 in bogus notes in and around Pittsburgh.
The boy responsible for their capture said he had studied the Secret
Service material on the detection of counterfeit money as a part of his
school's Problems of Democracy class. The three men are now awaiting trial.
The Bureau of Narcotics administers a program designed to deal with
the control of permissive manufacture, distribution, and sale of drugs as
well as the control of sources of the illicit supply of drugs on international, national, and local levels. The Narcotic Agent's job is ferreting
out gangsters and drug traffickers and bringing them before the courts*
Some of the most effective work done by this little Bureau is in collaboration with foreign police.
Next I come to the U. S. Coast Guard, a branch of the military service
at all times, a wing of the Treasury Department during peace, and a fighting
arm of the Navy in time of war or whenever the President so directs.
The primary peacetime activity of the Coast Guard is to prevent avoidable loss of life and property* The Coast Guard's activities include airsea rescue duties, port security responsibilities^ maintaining aids to
navigation including ice patrol work, operation of lighthouses and ocean
weather stations, and inspection of merchant vessels and their equipment.
A dramatic example of the skill and courage of the men of the Coast
Guard was the rescue of the crew of a Military Air Transport Service
plane in the mid-Atlantic in January*
Finally, there are the Treasury's newest duties, those given the
Secretary last year for administering the Federal Facilities Corporation,
the liquidation of the R* F* C , and various defense lending programs.

- 8-

283

The Federal Facilities Corporation has been conducting the Government's
program for the production and sale of synthetic rubber and refined tin.
It is currently expected that the synthetic rubber producing facilities will
soon be sold to private interests, and that production of tin will be discontinued at the close of the current fiscal year.
The liquidation of the Pv. F. C. is being carried out as expeditiously
as possible under the general policy of securing the highest possible
return on the funds invested in R. F* C* assets without creating undue
hardships for those indebted to the Corporation.
The programs for defense production and civil defense lending are being
carried on at the minimum levels required under present international and
military conditions* Loans previously made under these programs are being
placed in the hands of private financial institutions as rapidly as possible.

These many bureaus, divisions, offices, and services add up to the
Treasury Department, an efficient organization carrying out functions vital
to the operations of our Government. The Treasury has for many years been
a well-run Department staffed with many able career people. It was not
overstaffed so much under the past Administration as some other Departments
and the opportunity for savings was not so great. Nevertheless, in the last
two years we have been able to make significant improvements in the management of this Department. While the total civilian employment of the Treasury
is down from almost 88,000 to about 79,000 — a drop of 9,000 or 10 percent —
the enforcement activities have been strengthened by emphasizing more
productive work, improving methods, and cutting out waste wherever we can
find it*
In connection with specific activities, I have given some illustrations
of savings from management improvements. The aggregate savings for the whole
Department were over $12 million in fiscal 1953 and well over $20 million
in fiscal 1954* The 1952 figure was $4 million and the highest previous
year for which we have figures was $8 million in 1951•
In closing* I would like to say that I am proud to be a member of the
Eisenhower Administration and the Treasury team, I also want to stress the
loyalty, hard-work, and devoted service of the Department's employees.
We are all striving to give the American people a fair, honest, and
efficient Government in which they will have confidence. Such confidence
is basic to our policies of providing stability in the value of the dollar
and a solid basis for economic growth.

oOo

284

is held in place by friction. The end cap is held
in place by a spring arrangement. The substitution
of the jewels for the metal hole element and the
metal cap is effected after importation by releasing the spring, extracting the metal hole element
and metal cap, inserting their jewel counterparts,
and replacing the spring in position.
(2) A metal end cap, in a position customarily
occupied by a genuine or synthetic cap jewel, fastened
to the plate by a screw. The substitution of a metal
insert containing a genuine or synthetic cap jewel for
the metal end cap is effected after importation by
removing the screw and replacing the metal end cap
with a metal insert containing a genuine or synthetic
cap jewel.
(3) A metal sleeve or collar frictioned into the
plate of the movement. The sleeve or collar eontains a metal hole element and a metal cap bearing,
both of which are held in place by friction. After
importation, the hole element and cap are pressed
out and a genuine or synthetic hole jewel and an
end stone are inserted.
These brief descriptions have been set out to illustrate
the type of devices covered by this ruling. The ruling is not
limited to movements containing the devices described. Any movement which has been specially engineered, constructed, designed,
or prepared to facilitate the placing of genuine or synthetic
jewels after importation in positions occupied by bearings of
any material other than a genuine or synthetic jewel is within
the scope of the ruling.
As announced in the notice of prospective classification,
however, there is not in contemplation an administrative review
of the question decided in the case of the Bulova Watch Co. v.
United States. 21 C.C.P.A. 156, T. D. 46494, whether "bouchons"
or "bushings" in so-called conventional watch movements of the
kind.involved in that case are substitutes for jewels.
Movements containing substitutes for jewels within the meaning of this ruling shall be marked, in order to comply with the
provisions-of subparagraphs (b), (i), and (j) of paragraph 36?,
Tariff Act of 1930, to indicate as jewels the total number of
jewels and substitutes for jewels in the movement or, optionally,
the number of actual jewels and the number of substitutes for
jewels. Thus, a movement containing, for example, 15 jewels and,
in addition, two Duo-Fix units each having one hole jewel and one
metal cap bearing will be dutiable as a movement having more than
17 jei*els, and shall be marked 19 jewels or, optionally, 17 jewels
and 2 substitutes for jewels.
In accordance with the provisions of section 315(d), Tariff
Act of 1930, as amended, and section 16.10(a), Customs Regulations,
this ruling shall be effective only as to such watches and watch
movements entered, or withdrawn from warehouse, for consumption
after 90 days after the publication of this decision in the weekly
Treasury Decisions.
Commissioner of Cusfoms

285

(T. D. 33 7J 3

)

CLASSIFICATION — WATCHES AND WATCH 1DVEMENTS
Certain watch movements specially prepared for upjeweling contain
substitutes for jewels within the meaning of paragraph 367(i),
Tariff Act of 1930.
TREASURY DEPARTMENT
OFFICE OF THE COMKtSSlDNER OF CUSTOMS
WASHINGTON, D. C.
TO COLLECTORS OF CUSTOMS AND OTHERS CONCERNED:
Reference is made to the notice of prospective classification
published in the Federal Register of January 14, 1955 (20 F.R. 345),
announcing that it appeared probable that imported watch movements
specially constructed to be up jeweled after importation, such as,
but not limited to, those incorporating the so-called "Duo-Fix"
feature, or employing metal end caps designed to be replaced by
jewels, or utilizing other similar devices, are properly classifiable as movements containing substitutes for jewels within the
meaning of paragraph 367(i)i Tariff Act of 1930, and are subject
to duty and marking accordingly.
The Bureau has carefully reviewed the written submissions of
those supporting and those opposing the prospective classification.
Consideration also has been given to the oral representations of
the parties in interest who appeared at the Bureau.
It is clear that devices such as Duo-Fix are being utilized
to facilitate upjeweling after importation by omitting (at the time
the movements are prepared for exportation to the United States)
genuine or synthetic jewels from positions in the movements which
would customarily be occupied by such jewels and substituting in
such positions temporary metal caps, bearings, bushings, or bouchons.
It is equally clear that other devices are being utilized to facilitate the replacement after importation of metal caps, bearings,
bushings, or bouchons by genuine or synthetic jewels in positions
customarily occupied by such jewels, jewels having been omitted at
the time the movements were prepared for exportation to the United
States.
The Bureau has concluded after the fullest consideration of
the question in the light of the applicable statutes, the pertinent
judicial decisions, and the controlling principles of tariff classification, that watch movements specially engineered, constructed,
designed, or prepared to facilitate upjeweling after importation by
such omission of jewels and the substitution therefor of metal caps,
bearings, bushings, or bouchons contain substitutes for jewels
within the meaning of paragraph 367(i) in each position customarily
occupied by a genuine or synthetic jewel but in which a metal cap,
bearing, bushing, or bouchon has been placed at the time the movements were prepared for exportation to the United States.
Illustrations of such types of devices in movements specially
prepared to facilitate upjeweling after importation are:
(l) A metal housing frictioned into the plate of
the movement, which contains in positions customarily
occupied by genuine or synthetic jewels a removable
metal hole element and a metal cap. _ The_ hole element

288

# -

After mrnmm^*

study of briefs submitted to it, the Bureau of

Cuatoas km decided that in fixing: import duties, certain ijiportad wateh
movements specially prapared for so-called "qpgevtllnf* ahmld be
treated as containing substitutes for jewels. Under the f arttt Mt

substitutes for jewels count as jewel* for marking and duty purpose*.
The C^stoae decision becomes effective 90 days after the decision
is published in the Weekly Treasury ^eoiaioas. and will be applied to nn o*
ia_>ejrtatl4N» of watch movaaeats cleared through the UnitedStates Customs
thereafter*
Notice of this proposed ruling was published la the Federal Kegieter
on January 14, 19S8, and interested parties wore invited to sufcnit
relevant data, views or arguments. Notice of the decision was filed
Wednesday, March 18, with the Federal H#gigt«r for publication*
The decision will affect imported movements such as those containing ^
the so-called "Duo-Fix* feature, or sjetal eM

caps, which have been

specially prepared to facilitate * upj a m ling" by tha insertion of
additional jewels in the movements after importation* "^\
The text of the official decision follows:

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Thursday, March 17, 1955.

H-746

After careful study of briefs submitted to it, the Bureau of
Customs has decided that in fixing import duties, certain imported
watch movements specially prepared for so-called "upjeweling"
should be treated as containing substitutes for jewels. Under the
Tariff Act, substitutes for jewels count as jewels for marking and
duty purposes.
The Customs decision becomes effective 90 days after the
decision is published in the Weekly Treasury Decisions, and will
be applied to importations of watch movements cleared through the
United States Customs thereafter.
Notice of this proposed ruling was published in the Federal
Register on January Ik, 1955, and interested parties were invited
to submit relevant data, views or arguments. Notice of the decision
was filed Wednesday, March 16, with the Federal Register for
publication.
The decision will affect imported movements such as those
containing the so-called "Duo-Fix1' feature, or metal end caps,
which have been specially prepared to facilitate upjeweling by
the insertion of additional jewels in the movements after importation.
Customs officials said the decision dealt only with the technical
question of the proper legal interpretation of the Tariff Act
provisions on duty determination and marking, and had no relation
to other Issues.
The text of the official decision follows:
(T. D. 53753)
CLASSIFICATION — WATCHES AND WATCH MOVEMENTS
Certain watch movements specially prepared for upjeweling contain
substitutes for jewels within the meaning of paragraph 3b7U),
Tariff Act of 1930.
TREASURY DEPARTMENT
OFFICE OF THE COMMISSIONER OF CUSTOMS
WASHINGTON, D.C.
TO COLLECTORS OF CUSTOMS AND OTHERS CONCERNED:
Reference is made to the notice of prosp ect iveclaBBi Ration
published in the Federal Register of January 14 1955 (20 ^
^ j ,
^announcing that it appeared probable that imported watch movements

. 2-

288

specially constructed to be upjeweled after importation, such as
but not limited to, those incorporating the so-called "Duo-Fix"
feature, or employing metal end caps designed to be replaced by
jewels, or utilizing other similar devices, are properly classifiable as movements containing substitutes for jewels within the
meaning of paragraph 367(i), Tariff Act of 1930, and are subject
to duty and marking accordingly.
The Bureau has carefully reviewed the written submissions of
those supporting and those opposing the prospective classification.
Consideration also has been given to the oral representations of
the parties in interest who appeared at the Bureau.
It is clear that devices such as Duo-Fix are being utilized
to facilitate upjeweling after importation by omitting (at the time
the movements are prepared for exportation to the United States)
genuine or synthetic jewels from positions in the movements which
would customarily be occupied by such jewels and substituting in
such positions temporary metal caps, bearings, bushings, or bouchons.
It is equally clear that other devices are being utilized to
facilitate the replacement after importation of metal caps, bearings,
bushings, or bouchons by genuine or synthetic jewels in positions
customarily occupied by such jewels, jewels having been omitted at
the time the movements were prepared for exportation to the
United States.
The Bureau has concluded after the fullest consideration of
the question in the light of the applicable statutes, the pertinent
judicial decisions, and the controlling principles of tariff
classification, that watch movements specially engineered, constructed, designed, or prepared to facilitate upjeweling after
importation by such omission of jewels and the substitution _
therefor of metal caps, bearings, bushings, or bouchons contain
substitutes for jewels within the meaning of paragraph 3o7U) i n
each position customarily occupied by a genuine or synthetic jewel
but in which a metal cap, bearing, bushing, or bouchon has been
placed at the time the movements were prepared for exportation to
the United States.
Illustrations of such types of devices in movements specially
prepared to facilitate upjeweling after importation are:
(1) A metal housing frictioned into the plate of
the movement, which contains in positions customarily
occupied by genuine or synthetic jewels a removable
metal hole element and a metal cap. The hole element
is held in place by friction. The end cap is held
in place by a spring arrangement. The substitution
of the jewels for the metal hole element and the
metal cap is effected after importation by releasing
the spring, extracting the metal hole element and
metal
replacing
cap,the
inserting
spring their
in position.
jewel counterparts, and

- 3 (2) A metal end cap, in a position customarily
283
occupied by a genuine or synthetic cap jewel, fastened
to the plate by a screw. The substitution of a metal
insert containing a genuine or synthetic cap jewel for
the metal end cap is effected; after importation by
removing the screw and replacing the metal end cap
with a metal insert containing a genuine or synthetic
cap jewel.
(3) A metal sleeve or collar frictioned into the
plate of the movement„ The Sleeve or collar contains a metal hole element and a metal cap bearing,
both of which are held in place by friction. After
importation, the hole element and cap are pressed
out and a genuine or synthetic hole jewel and an
end stone are inserted.
These brief descriptions have been set out to illustrate
the type of devices covered by this ruling. The ruling is not
limited to movements containing the devices described. Any movement which has been specially engineered, constructed, designed,
or prepared to facilitate the placing of genuine or synthetic
jewels after importation in positions occupied by bearings of
any material other than a genuine or synthetic jewel is within the
scope of the ruling.
As announced in the notice of prospective classification,
however, there is not in contemplation an administrative review
of the question decided in the case of the Bulova Watch Co. v.
United States, 21 C.C.P.A. 156, T. D. 46494, whether "bouchons"
or "bushings" in so-called conventional watch movements of the
kind involved in that case are substitutes for jewels.
Movements containing substitutes for jewels within the meaning of this ruling shall be marked, in order to comply with the
provisions of subparagraphs (b), (i), and (j) of paragraph 367,
Tariff Act of 1930, to indicate as jewels the total number of
jewels and substitutes for jewels in the movement or, optionally,
the number of actual jewels and the number of substitutes for
jewels. Thus, a movement containing, for example, 15 jewels and,
in addition, two Duo-Fix units each having one hole jewel and one
metal cap bearing will be dutiable as a movement having more than
17 jewels, and shall be marked 19 jewels or, optionally, 17 jewels
and 2 substitutes for jewels.
In accordance with the provisions of section 315(d), Tariff
Act of 1930, as amended, and section 16.10 (a), Customs
Regulations, this ruling shall be effective only as to such watches
and watch movements entered, or withdrawn from warehouse, for
consumption after 90 days after the publication of this decision
in the weekly Treasury Decisions.
/s/ Ralph Kelly
March 16, 1955
0O0
Commissioner of Customs

d W \J

;^=<£/>r>>^J
IN ANSWER TO INQUIRIES

The FBI has entered the investigation of tha disappearance of
L,000

in |10 Federal Reserve notes at the Bureau of Engraving and

Printing, acting pursuant to a Treasury-Justice Department agreement
5provisions

of Public Law 725 of the 83d Congress.

This law removed any uncertainty as to whether the FBI had
authority to investigate alleged irregularities on the part of
officers and employees of the Treasury Departaent.
&r&>Uuuy #^/u**et£^K^vT"
w ^ A«*^w jfaual**^^
A momorand^ak u>f uudfti & Landing as to the law1 s provisions
by Treasury Secretary Humphrey and Attorney General Brownell,
with a view to assuring the fullest interdepartmental cooperation in
dealing with offenses against the Government.

/ _ 1¥1

TREASURY DEPARTMENT
Washington

IN ANSWER TO INQUIRIES

The FBI has entered the investigation of the
disappearance of $1,000 in $10 Federal Reserve notes
at the Bureau of Engraving and Printing, acting
pursuant to a Treasury-Justice Department agreement
reflecting provisions of Public Law 725 of the 83d
Congress.
This law removed any uncertainty as to whether
the FBI had authority to investigate alleged irregularities
on the part of officers and employees of the Treasury
Department.
A working arrangement as to the law's provisions
has been reached by Treasury Secretary Humphrey and
Attorney General Brownell, with a view to assuring
the fullest interdepartmental cooperation in dealing
with offenses against the Government.

H-747 March 15, 1955
0O0

292

- 3-

agsestac
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 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 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.

-'O -

- 2 -

2 percent of the face amount of Treasury bills applied for, unless the tenders
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 t
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
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 le

without stated price from any one bidder will be accepted in full at the averag

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 Re
serve Bank on March 24 > 19$$ , in cash or other immediately available funds

£5

or in a like face amount of Treasury bills maturing
March 24. 1955
. Cash
and exchange tenders will receive equal treatment. Cash adjustments will be mad

for differences between the par value of maturing bills accepted in exchange an
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, a
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 tp estate, inheritance, gift or other excise taxes, whether Federal

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

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

294

mmisyj
TREASURY DEPARTMENT
Washington

FOR RELEASE, MORNING NEWSPAPERS,
Thursday. March 17» 1955

St
The Treasury Department, by this public notice, invites tenders for
$ 1.500,000,000 , or thereabouts, of

-day Treasury bills, for cash and

in exchange for Treasury bills maturing

March 24. 1955

, i n the amount of

tS3t
$ 1.501*676,000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated

March 24, 1955

, and will mature

June 23, 1955

amount will be payable without interest.

, when the face
—

They will be issued in bearer form only,

Monday, March 21, 1955

~?k~^
Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99*92$.

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 payment of

RELEASE MORNING NEWSPAPERS
Thursday, March 17, 1955
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 March 24, 1955,
in the amount of $1,501,676,000, to be issued on a discount basis
under competitive "and non-competitive bidding as hereinafter
provided. The bills of this series will be dated March 24, 1955,
and will mature June 23, 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, March 21, 1955Tenders 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
Bpecial 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

- 2competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on March 24, 1955,
in cash or other immediately available funds
or in a like face amount of Treasury bills maturing March 24, 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 Branch.

!L,\J •J

^^,>^^%yl^L

/-/- 7 //

Treasury Secretary Humphrey today issued the following statement
endorsing the National Reserve Plan'.Sgg=q Li'uiuiid mlllljaj.^ fui'U<L
Atrial

' I hope that everyone, young or old, interested in national
defense will give thoughtful attention to the National Reserve
Plan. This plan, the broad lines of which were presented by
the President in his recent message to Congress on military
security, and which is embodied in pending legislation,
would significantly strengthen our defense resources for the
%ong pull.'
H The legislation which has been proposed would correct
deficiencies in the present reserve arrangement so as to assure
the maintenance under the most dependable conditions of a
trained force of civilians available in case of emergency or
mobilization.

At the same time it would give the young men

of the Nation the widest feasible choice of methods of fulfilling
their military obligations, and so minimize personal hardships.
It would provide for the most equitable sharing of these
obligations.
•' If any young man or parent who wants to know more about
the National Reserve Plan will write to the Secretary of
Defense, Washington, details of the Plan will be forwarded
f(

to him or her.

TREASURY DEPARTMENT

297

WASHINGTON, D.C

RELEASE AT 6 P.M. E.S.T.,
Saturday, March 19, 1955.

H-749

Treasury Secretary Humphrey today issued the following statement endorsing the National Reserve Plan:
"I hope that everyone, young or old, interested
in national defense will give thoughtful attention to
the National Reserve Plan. This plan, the broad lines
of which were presented by the President in his recent
message to Congress on military security, and which is
embodied in pending legislation, would significantly
strengthen our defense resources for the long pull.
"The legislation which has been proposed would
correct deficiencies in the present reserve arrangement
so as to assure the maintenance under the most dependable conditions of a trained force of civilians available in case of emergency or mobilization. At the same
time it would give the young men of the Nation the
widest feasible choice of methods of fulfilling their
military obligations, and so minimize personal hardships.
It would provide for the most equitable sharing of these
obligations.
"If any young man or parent who wants to know more
about the National Reserve Plan will write to the
Secretary of Defense, Washington, details of the Plan
will be forwarded to him or her."

oOo

29 A.

H'l
IJIMEDIATE RBL1&SE,
Friday, March IS, 19$$.
Secretary Humphrey announced today that on Tuesday, March 22, the
Treasury will offer for cash subscription $3 billion of 1-3/8 percent
Tax Anticipation Certificates of Indebtedness to be dated April 1, 19$$9
maturing June 22, 19$$, and receivable at par plus accrued interest to
maturity in payment of income and profits taxes due on June 1$, 19$$*
The books will be open only for one day, on March 22.
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 50 percent of the combined capital, surplus and
undivided profits of the subscribing bank as of December 31, 19£4. A
payment of 5 percent of the amount of certificates subscribed for, not
subject to withdrawal until after allotment, must be made on all other
subscriptions. The new certificates may be paid for by credit in
Treasury Tax and Loan Accounts.
Commercial banks and other lenders are requested to refrain from
making unsecured loans or loans collateralized in whole or in part by the
certificates subscribed for, to cover the $ 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 sub*
script ion, will also be required.
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 March 22 will be considered as timely.

IMMEDIATE RELEASE,
Friday,, March 18, 1955.

H-750

Secretary Humphrey announced today that on Tuesday, March 22,
the Treasury will offer for cash subscription $3 billion of
1-3/8 percent Tax Anticipation Certificates of Indebtedness to be
dated April 1, 1955, maturing June 22, 1955, and receivable at par
plus accrued interest to maturity in payment of income and profits
taxes due on June 15, 1955. The books will be open only for one
day, on March 22.
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 50 percent of the combined
capital, surplus and undivided profits of the subscribing bank as
of December 31, 1954. A payment of 5 percent of the amount of
certificates subscribed for, not subject to withdrawal until after
allotment, must be. made on all other subscriptions. The new
certificates may be paid for by credit in Treasury Tax and Loan
Accounts.
Commercial banks and other lenders are requested to refrain
from making unsecured loans or loans collateralized in whole or
in part by the certificates subscribed for, to cover the 5 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 customersT 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 Treasurer of the United States and placed in the mail
before midnight March 22 will be considered as timely.

oOo

=-y KJ. J.

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TREASURY DEPARTMENT

301

WASHINGTON, D.C
RELEASE MORNING NEWSPAPERS,
Tuesday, March 22, 1955.

H-751

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated March 24 and to mature June 23, 1955, which were offered on
March 17, were opened at the Pederal Reserve Banks on March 21.
The details of this issue are as follows:
Total applied for - $2,358,953,000
Total accepted
- 1,501,723,000 (includes $250,327,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.655 Equivalent rate of discount approx.
1.366$ £Der annum
Range of accepted competitive bids:
High

- 99.696 Equivalent rate of discount approx.
1.203$ per annum
Low
- 99.653 Equivalent rate of discount approx.
1.373$ per annum
(79 percent of the amount bid for at the low price was accepted)
Total
Ao'olied for

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

TOTAL

$
47,656,000
1,542,101,000
58,878,000
85.443,000
15,420,000
58,804,000
291,060,000
22,640,000
24,849,000
41,214,000
52,850,000
$2,353,953,000
118,02^,000

0O0

Total
Accepted
46,581,000
806,404,000
43,878,000
84,393,000
13,210,000
55,968,000
257', 990,000
22,178,000
24,513,000
31,641,000
33,767,000
$1,501,723,000
81,195,000

3Q.i-

-<TI should also like to call your attention to the fact that the
biHHwovidos that th© : ecretary of the Treasury is responsible for
the supervision of the borrowing program arid all borrowing requires
his consent. In this nay. the borrowing of money can be haraoiiised
with Government fiscal a»4 monetary policy. Jfithin lia&ts, the^ir-dag
y
A
'
of the borrowing can be subject to control and adjusted to M o varying
conditions in the economic life of the country, thus, provision ia
made for keeping any possible inflationary effects of the prograa
under control.

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• m 2/8^"ei^aaaaa ha m
£m% '®h0$§^sm

IN§ aaaaaiad -ia a *«aa* aaa? aa?*. lot oaa baa*-fa*a>e»w

,*ym-4* traaala*.

y ^ « * |*qr * ofMrge tea#<i mm WM - ^ M e f th* * * M * 1 * ,

tft* a v ^ a r - a f paaa«sga«# # -at tM< m ^ y ^ r c>f n - i * ^ -ar*. y o * cka ^ r r y 1&si
out atea £«HiMa» awl aaaaaatfaa? tall* ajr coaattT^Uon o f aaaar aaaiai* fuel.

a p ^ « U s a i aa/ ai aalftf it*
mam

*** aaaa** * iMaea* teial mt

Wm^

is m aoatot M m m&m, tkmt m&m pmm*& amoali ha har-yu.4 mn

m ®$ma-to apa^>m^m^m aaaia am jaiaa*****-* 1 afeaMaat -atojaatf
tmrn^ U .taa %m0mm

fit to imrmm

%hm Wmdmmi$aae3J»e aaa in a\

ariaavaM^baua* thia ; ) % m , ) ^ te mmmt aa §a«
an*-. temmmAm i» mmmmtf$ Ha* taat hammlm
•u tea jj^MMwal mmmm

mhmM mt imm$m*& alaajp

mi taa Salt** .-tate*? Oevajiaaaat*

Xt aaaald rather

mly ttoon rjeci ric. oaar taxa*, ia tlit laat aaa3gr*l*» fait aapt&aiag taa
aeftde aa* lor tbatr s^uritr.
mm

m to # e i « t a af aaaiatati^rttai aadi

j^a^m m*M®t

'.••.j-ttfaa

Y4^***C<(^y

<• 2 •
9m aYaaaaif taat haa afeaajtyr Ipaaa pro#«atM^to jrow * P f f M ) ^ 4 I

^tidir.. & da no &111 reaali in a Mtt^ateitial eaoiaaia sala to the
^.paala .ia taaaa 0, m®>*m0m

tittia*1i *•*• »ajaVd mmmmt

tjram^. * a a t & attlaiaaay afrajft.aara

^ l ^ ^ ^ ^

^ ^ ^

;^' t ^ aaeida** tall* art Xontr oaata aa taa ^koop of 9aaia?*f • ;8!*esia
ar* all aattara dittlaala ta «**&«&% wut y ^ f h % aaata!? tjaart thajr aaa.

la au^etuig taii JNW*% taa aa)a1aia1f*fci«* liaa slearii^ in Kind
taa aivamta«ia to taa aili aoWti^r of aa mpmmd

pmgrm

^$Qh /xill

aajO&f siore sHMgOa, *UJC &$$ to tlaa eoaategr'a xato of o^oaoa^i ^nwrttu^ $aolt
a raid p*ogpaa aill mmmmm

the «»ttawi aeiaXopaaat af tha

iaaaatagr mad taa ammttmUm

$ad*wto?$ iimmp^J^^^^'saiM,^

> ^ ' ^ aaa mUm
^

mmmm9>« ^^

_r _ _
rm

She Sraaaaigr aaa JLven jawtMlar ataay to taa ftaaatiag of taa pro-

jH*Wfeigb«ay pm§®m

md its i*tetAaaaaJr& ta the Feoaral bwfffW

I mmU

aa aaa liat m& to advocate a p»gr«a tkat aiasply addec to mr Fadaval
iw*i.^et art^ta* aa<$ae aa gmmhl

»ad&m3L rmnmxmm*

m ^%:wi»mm- WAA

harm ox* eutttiag k®$& taa iajaatr veim * 01 laaaval expeadltarea* m& 1 ham
tx^aUM*^ atatad taat I taiak tltf* oaa "at <fei# and taat tat load af \Kgeafc '
-nlii@h w^i#i^ ao hoa^T# on ta© airoiiaw# @ » ^ dmcrtmm

ovar a period

#f yaai &. Oaa of taa i-t4<a«ii& 1 aa la fatw of Wm road |tojpaa is that it
doaa aat iatarTlara H ^ * % lon^-tarm o^jeoti'faa of r#«feol^ alaaaa Faderal

l«t aa mm ®$m taat w aaa ooal# hait .atelajaarfaawrd 1taa* 1 lawt for
taa viaaa of Saaatorfyrti*1 aaoa boom mmmmUw

in a^r®oa«Bt with him -?n

<g,OQ

.Hataaaat < ^cretauy oi tha lireaettxy Baaptaray
I^eCore taa daaata o omit ten 0a Pualie Works, ?aalle
Ho&da 8aaeoaaittaa» &tsa^r^ Karaa'•"•,1955* at ldfej* a*a*
c#

-.• y - > ^ '

••.

I am glad to hate tm qajaaterta? te partloipate in your
## ttm Firaaaaart*a aitfamy faa^raav idle parttertar r ^ r f c r ^ to ths '
;ijaimciai(A^eto of a. U 6 0 ,
m mm all ap«adi ea aaa m*m lor aa aa?«*aed M-.#*#ey paagreajr, " Use
'cjaaat&aa ia aaw beat to l&aaaoa it.

-* , ,

- -•&» p&m aw®mdkmd ia i. H i * of aatala* up a
••^.rp&mtio» to haaile taa eajMaaiad- M j ^ a y program aaa been oaraf*il3|f
oeai«art:ta<att*vafeefolilo^ial^,:^y-natives s
', 1. " .«a get taa -road \n»ayemm- mmar m& tilth the spued x^alred
ar the rapld^ jg^^2^ ^ 1 ^ ^ of jaitaaatila ti*lflaa f #
£* % i«*daee fr©?if:'tly ^.ilSitQf^tatO nataarfe;^ -#art of -the
3

^•afctf aafeaaaH»*a«ra» aare alftiartWalr than aaa aa. ioaa or

J. To ti# fIr^ay together ih®ym&M%m^m on ta*dm-am the
imam

whiah e ^ roaaonaelar be etoaaa £roa taa mam

fea rmmdm9 m that the op^mtion is «felf^i^talni2^.
k. fa Hoamm
mm

this road r ^ § m ^ vith tajrmola aaaarittaa rather

%*am*mms®t mmriUm$

this ia an isa&jrty^t aajaatiovf

alace taa yrwing vol»e of taas-eriaji^t iooigritiaa for
mmXma

a\ eerioaa leant a T iweaae t o tha &eaa«T»

, fa hold «ten tarfe** f^?eaaaa la -taa aaaBtlaf l^vole of

^lUMmw

r\ - ^

>wr*&l& mt at aaaaval

TREASURY DEPARTMENT
Washington

0
v

Statement by Secretary of the Treasury Humphrey
Before the Senate Committee on Public Works, Public
Roads Subcommittee^ Tuesday, March 22, 1955, at 10:45 a.m.

I am glad to have the opportunity to participate in your
discussion of the Presidents highway program, with particular
reference to the financial aspects of S. 1160.
We are all agreed on the need for an expanded highway program.
The question is how best to finance it.
The plan embodied in S. 1160 of setting up a self-sustaining
Government corporation to handle the expanded highway program has
been carefully designed to serve the following objectives:
1. To get the road program under way with the speed required
by the rapidly growing volume of automobile traffic.
2, To produce promptly an interstate network as part of
the defense program more effectively than can be done
by dependence on programs of the separate states.
3. To tie firmly together the expenditures on roads and
the income which can reasonably be drawn from the
users of the roads, so that the operation is selfsustaining.
4. To finance this road program with taxable securities
rather than tax-exempt securities; this is an important
objective, since the growing volume of tax-exempt
securities for roads involves a serious loss of
revenue to the Treasury,
5. To hold down further increases in the mounting levels
of Government obligations payable out of general
revenues.
The evidence that has already been presented to your Committee,
1 am sure, has convinced all of us of the urgent need for building
highways more rapidly. To do so will result in a substantial
economic gain to the American people in terms of time-saving
through more rapid movement of traffic, greater efficiency through
more prompt; «. delivery, the reduction of the accident toll, and
lower costs on the upkeep of vehicles. These are all matters
difficult to measure, but all of them are important.
H-752

308
- 2 In suggesting this program, the Administration has clearly
in mind the advantages to the whole country of an expanded road
program which will employ more people, and add to the country's
rate of economic growth. Such a road program will encourage the
continued development of the automobile industry and the construction industry; in fact, all our citizens will be better off
as benefits of the program run through the entire economy.
The Treasury has given particular study to the financing of
the proposed highway program and its relationship to the Federal
budget. I would be the last man to advocate a program that simply
added to our Federal budget and the charge on general Federal
revenues. We must think in terms of cutting back the volume of
Federal expenditures, and I have repeatedly stated that I think
this can be done and that the load of general taxes, which weighs
so heavily on the economy, can be decreased over a period of
years. One of the reasons I am in favor of the road program is
that it does not interfere with the long-term objectives of
reducing Federal expenditures and reducing general taxes.
Let me say also that no one could have a higher regard than
I have for the views of Senator Byrd.
I have been in agreement
with him on the major principles of sound Federal Government
finance. I have read with care his Impressive statement last
Friday before the Committee. It raises important questions of
principle as well as questions of administrative practice and
Government accounting.
I believe the principle involved in S. lloO is sound. My
reasons are simple. There are real earning assets here -- new
highways vital to the future of our Nation, If the program could
be paid for completely by tolls, there would be no question about
its financial soundness. But "tolls" can be measured in a great
many ways. You can base them on mileage traveled. You can levy
a charge based on the weight of the vehicle, the number of
passengers, or the number of axles. Or, you can carry that one
step further and measure your tolls by consumption of motor
vehicle fuel. This is a practical way of doing it.
There Is no doubt in my mind that this program should be
handled on as close to a pay-as-you-go basis as possible. I would
not object, therefore, if the Congress sees fit to increase the
Federal gasoline tax in order to finance this program.
If it cannot be on a pay-as-you-go basis and borrowing is
necessary, then that borrowing should not involve a pledge of the
general revenues of the United States Government. It should
rather rely upon specific user taxes, in the last analysis, for
servicing the bonds and for their security.

309
- 3Now as to details of administration and accounting — the
Board of Directors of the Highway Corporation would have the
authority necessary to assure flexibility in handling the program
in the future. We don't know enough about the future to spell
out all the details now. I hope your Committee will examine with
care questions of accounting and budgetary supervision.
It may cost somewhat more to issue the bonds through the
Corporation rather than by the use of public debt obligations.
I think it is worth it. It provides a semi-automatic way of
paying off the debt over specific periods. If they carry a higher
rate, that very fact may give them wider distribution of ownership
by real Investors and require less use of bank credit.
It Is a wholesome thing to have debt limits set by the Congress.
It provides a standard in our fiscal policy for everybody to
think about and respect. It is wise for the highway program to
have a debt limit, too, and one is provided for in S. Il60.
There is one further point on this program that is very
important, and that is its inflationary potential. If the Congress
and the Administration were to stop suddenly right now in their
drive toward a lower level of budget expenditures, then I would
say that to pile this highway program on top of it might be
inflationary. As I mentioned before, however, we are firmly
committed to further reducing Government expenditures and working
toward a less oppressive tax system. As we succeed in cutting
expenditures further a highway program like this can, I believe,
be handled without inflationary effects.
I should also like to call your attention to the fact that
the bill provides that the Secretary of the Treasury is responsible
for the supervision of the borrowing program and all borrowing
requires his consent, In this way, the borrowing of money can
be harmonized with Government fiscal, monetary and debt management policy. Within limits, the timing of the borrowing can be
subject to control and adjusted to varying conditions in the
economic life of the country. Thus, provision is made for keeping
any possible inflationary effects
of the program under control.
0O0

3iy

- 3aaaaa
« ^ B J _ T K'JUiV

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 o
1951J 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

the terms of the Treasury bills and govern the conditions of their issue. Copie
of the circular may be obtained from any Federal Reserve Bank or Branch.

^lj

- 2 -

Secretary of the Treasury expressly reserves the right to accept or reject any o
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 les

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 March 31, 19155 , in cash or other immediately available funds
or in a like face amount of Treasury bills maturing March 31, 1955 Cash
_ftfl_A_|

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, an
loss from the sale or other disposition of Treasury bills does not have any
special treatment, as such, under the Internal Revenue Code of 19$k. 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 princ

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

312

TREASURY DEPARTMENT
Washington

1 €3

FOR RELEASE, MORNING NEWSPAPERS,
Thursday, March 2k, 1955
•
_{i_t_p

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

[

in exchange for Treasury bills maturing March 31, 1955 , in the amount of
$1,500,859,000

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

competitive bidding as hereinafter provided. The bills of this series will be
dated March 31, 1955 , and will mature June 30, 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, March 28, 1955 .

ij_3a
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 payment of

RELEASE MORNING NEWSPAPERS
Thursday, March 24, 1955. *
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 March 31, 1955,
in the amount of $1,500,859,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated March 31,1955,
and will mature June 30,1)55,
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,
$500,000j, 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, March 28, 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 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

- 2 competitive bids. Settlement for accepted tenders In accordance
with the bids must be made or completed at the Federal Reserve Bank
on March 31*1955*
in cash or other immediately available funds
or in a like face amount of Treasury bills maturing March 31,1955*
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 Branch.

314

UtTOIATE WLMBt,

fh&raday, liforeh m, W$$*
»

f t£

Preliminary reports fraa the federal !ese:nre Banks

indicate subscriptions of slightly leas than #8 billion tmr
the current caeh offering ot^ax Anticipation Certificates
of Indebtedness.
The basis of allotment on this issue will be announced

TREASURY DEPARTMENT
WASHINGTON, D.C

IMMEDIATE RELEASE,
Thursda?/. March 24, 1955.

H-*754

Preliminary reports from the Federal
Reserve Banks indicate subscriptions of•
slightly less than $8 billion for the current
cash offering of $3 billion of Tax Anticipation
Certificates of Indebtedness.
The basis of allotment on this issue will
be announced tomorrow morning.

oOo

316

MEDIATE RELEASE
March 2k, 19$$

The Bureau of Customs announced today that the absolute quota
of 8,883,259 pounds on Mexican cotton of less than 1-1/8 inches in
staple length (other than harsh or rough cotton of less than 3/4
inch in staple length, and other than linters) for the epiota year
ending September 19, 1955, was filled by entries presented on
March 1$9 19$$*

TREASURY DEPARTMENT

317

WASHINGTON, D.C

IMMEDIATE RELEASE,
Thursday, March 24. 1955.

H-755

The Bureau of Customs announced today
that the absolute quota of 8,883,259 pounds
on Mexican cotton of less than 1-1/8 inches
in staple length (other than harsh or rough
cotton of less than 3/4 inch in staple length,
and other than linters) for the quota year
ending September 19, 1955, was filled by
entries presented on March 15, 1955.

oOo

316

IMMEDIATE RELEASE,
Friday, March 2$9 1955*
The Treasury today announced a bP percent allotment on subscriptions for the current cash offering of 1-3/8 percent Tax
Anticipation Certificates. However, subscriptions for f$0,000
or less will be allotted in full. Subscriptions for store than
150,000 will be allotted not less than $50,000.
Reports received thus far from the Federal Reserve Banks show
that subscriptions total about %7993& billion. Details by Federal
Reserve Districts as to subscriptions and allotments will be
announced when final reports are received from the Federal Reserve
Banks.

IMMEDIATE RELEASE,
Friday, March 25, 1955.

H-756

The Treasury today announced a 40 percent
allotment on subscriptions for the current cash
offering of 1-3/8 percent Tax Anticipation
Certificates.

However, subscriptions for

$50,000 or less will be allotted in full.
Subscriptions for more than $50,000 will be
allotted not less than $50,000.
Reports received thus far from the Federal
Reserve Banks show that subscriptions total
about $7,938 million.

Details by Federal

Reserve Districts as to subscriptions and
allotments will be announced when final reports
are received from the Federal Reserve Banks.

oOo

32?

// -7 < 7
Twesdsy, mrah

29, 1955».

£he Treasury &»psrtaMtit naroustsea last s**aiog that tt* tmdam

tar 11*500,000,001

or thereabout®, of 91«dby Treasury bills to be dated *mreh 31 and to m&twrm Jam 30, I
19$$9 which were offered on Siereh 9k9 were opened at tha Federal Bftserv* Banks

yareh 26.
Th# details of tills Issue are as follows*
fatal applied for - 92,229*669,000
total secepte*
- 1*500,099,000

i-verage price

(lneOadkM 9802, 2$L,00Q entered an a
mmtammafDrntttirm basis and aceepted in
ftOl at the- a w r * g e prl«* shossi below)
s^i&ir*lent rate of i i s w t m t apprmx* 1*371*1 per s m n n

* 99*6$3

icange of accepted eesqmtltiv* hMat (MmptiMg tire© tenters totaling #1,012,000}
-> 99*66? "Equivalent rate of discount approx. 1*317£ per annus
- 99.61*
*
«
«
e
«
1.393* "
•

High
Low

Total
|g|llej ri fw (

tot**
kammfhad

Boston
lew York
IMladelpfeia
CleirelsM
Richmond
Atlanta
Ghleago
i-t. Louis
SilllSieapolJLS
Kansas City
Bellas
Sm franaisam

229ftt»00(»
1,613,670,000
27t*»t,O00
68,6£#000

i0t9fa9ooo
2i,b29,ooe
t£l,6$2,000
19*285,000
9,672,000

M,oib,ooo
Ut,9n«ooo
total

22,002,000
960,UO#000
12,k96,§00
67,7*S 9 000
10 9 9kL»000
t6 9 9?k»000
223,662,000
19,285,000
9,672,000

t0*,59li,ooo

—JS.iMEffi

39,971,000
68,137,000

(2,289,689,000

83L»50O,O99,O0O

I2EASURY DEPARTMENT

32i

WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS
Tuesday, March 2Q. I Q ^ '

H-757

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated March 31 and to mature June 30, 1955, which were offered on
March 24, were opened at the Federal Reserve Banks on March 28.
The details of this issue are as follows:
Total applied for - $2,229,689,000
Total accepted
- 1,500,099,000 (includes $202,251,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.653 Equivalent rate of discount approx.
1.374$ per annum
Range of accepted competitive bids: (Excepting three tenders
totaling $1,012,000)
99.667
Equivalent
rate of discount approx.
High
1.317$ per annum
Low
- 99.648 Equivalent rate of discount approx.
1.393$ per annum
(9 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
$
22,502,000
1,613,670,000
27,496,000
68,635,000
10,941,000
21,429,000
251,652,000
19,285,000
9,672,000
47,014,000
44,971,000
92,422,000
$2,229,689,000
0O0

Total
Accepted
$

22,002,000
960,440,000
12,496,000
67,725,000
10,941,000
20,974,000
223,862,000
19,285,000
9,672,000
44,594,000
39,971,000
68,137,000
$1,500,099,000

322

- 3-

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 45k (b) and 1221 {$) of the Internal Revenue Code of
19£h 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. Itl8, Revised, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue. Copies
of the circular aay be obtained from any Federal Reserve Bank or Branch*

- 2 SXSSK

Secretary of the Treasury expressly reserves the right to accept or reject any o
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 les

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 April 7. 19$$ ,, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing April 7, 19$$ Cash

Ho?

sale or other disposition of the bills, does not have any exemption, as such, an
loss from the sale or other disposition of Treasury bills does not have any
special treatment, as such, under the Internal Revenue Code of 19$k. 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 princ

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

324

TREASURY DEPARTMENT
Washington

FOR RELEASE, MORNING NEWSPAPERS,
Thursday, March 31, 1955
.

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

to m
in exchange for Treasury bills maturing April 7» 1955
, l n ths amount of
$ 1 500,112,000 • to be issued on a discount basis under competitive and non*

—

competitive bidding as hereinafter provided.
dated

April 7, 1955

, and will mature

amount will be payable without interest.

The bills of this series will be
July 7, 1955

, when the face

They will be issued in bearer form only,

and in denominations of $1,000, 15,000, $10,000, $100,000, $500,000 and $1,000,000
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock p.m., Eastern Standard time, Monday, April It. 1955
•
#x)c
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

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

TREASURY DEPARTMENT
asMua^-'&T^^ggiKm-M^^

3?5

WASHINGTON. D.C. NS

RELEASE MORNING NEWSPAPERS,
Thursday, March 31, 1955.

H-758

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 maturlngApril 7, 1955*
in the amount of $ 1,500,112,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated April 7, 1955,
w h e n the f
and will mature July 7, 1955.
ace amount will be
payable without Interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Standard time,
Monday, April k, 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 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

- 2competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on April 7, 1955,
in cash or other immediately available funds
or in a like face amount of Treasury bills maturing April 7, 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 Branch.

£v
%w

.MEDIATE RELEASE,
Thursday, Ilarch 31, 1955.

yj
rfyf
/*- /=* '

tha Treasury Banarte-ent today announced the subscription sad allotment figures with respect to the ewrent eash offering of 1-3/8 percent
Tax Anticipation Certificates of Indebtedness of Series 7-1955. these
certificates will be dated Ajsril 1, 1955, and will mature June 22, 1955.
They will be accepted at par plus accrued interest to maturity ia payment
of income and profits taxes due on June 15, 1955*
CoiBnereial banks were allotted slightly over $1.9 billion, with wore
than |1.3 billion going to nonbank sources on original issue.
Subscriptions and allotments were divided among the several Federal
Reserve Districts and the Treasury as follows t
Federal Reserve
District

Total Subscriptions Received

Total Subscriptions Allotted

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

317,673,000
3,ft8,777,000
290,532,000
686,778,000
237,683,000
219,987,000
930,693,000
201,097,000
171,656,000
241,549,000
21*7,752,000
823,767,00©
-

T0IU.

$7,938,lW»,000

ff*

128,105,000
l,a*2,177,000
117,528,000
276,876,000
96,748,000
92,611,000
386,392,000
83,131,000
71,777,000
101,872,000
101,95*f000
33©,801i,000
«k

«*

t3,iO9,rt$,O0Q

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Thursday; March,31, 1955.

* ,*- -

H-759

The Treasury Department today announced the subscription and
allotment figures with respect to the current cash offering of
1-3/8 percent Tax Anticipation Certificates of Indebtedness of
Series F-1955. These certificates will be dated April I, 1955, and
will mature June 22, 1955. They will be accepted at par plus
accrued interest to maturity in payment of income and profits taxes
due on June 15, 1955.
Commercial banks were allotted slightly over $1.9 billion,
with more than $1.3 billion going to nonbank sources on original
issue.
Subscriptions and allotments were divided among the several
Federal Reserve Districts and the Treasury as follows:
Federal Reserve Total Subscrip- Total SubscripDistrlct
tions Received
tions Allotted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury

TOTAL

$ 317,673,000
3,548,777,000
290,532,000
686,778,000
237,683,000
219,987,000
950,893,000
201,097,000
171,656,000
241,549,000
247,752,000
823,767,000
$7,938,144,000
-

0O0

128,105,000
1,422,177,000
117,528,000
276,876,000
96,748,000
92,611,000
386,392,000
83,131,000
71,777,000
101,872,000
101,954,000
330,804,000
$3,209,975,000
-

TftWSUW* t j e p w o * ^

Treas.
HJ
10
.A13P4
v.102
Treas.
HJ
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.A13P4

U.S. Treasury Dept.
Press Releases

TITLE

v.102
BORROWER'S NAME

U.S. TREASURY LIBRARY

Full text of Press Releases of the United States Department of the Treasury : Volume 102

FRASER