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Iheas. ^ UtS. treasury U*fn* vress (Betakes LIBRARY ROOM 5030 JUN 14 1972 TREASURY DEPARTMENT KEL&ASE MOraiiO MWmPAPERS., Tuesday, October a. 1955. 1-4 / */ ^ i K ¥h% Treasury Bsp*rts»nt ansoimaad last evening that the ttndsrs for $1,600,000,0 or thereabouts, of 91-day Traasuty bills to b# dated October 6, 1955, and to m&%v «?anaary 5, 1956, *ich war® ©iimtmd on September 29, war® apaned at tha Federal l Bank® on October 3. tha details of tkLa issas are a© follow®! total applied for - ft,O67,O4f,000 Total aooaptad - 1,600,122,000 (include® #195,753,000 entered on a noncompetitive basis and accepted in full at tha average prio® shown below) Average price ~ 99.W*0/ Equivalent rat® of disco-ant approx. 2.21t$ psr anas Bant® «f aooapted competitive bidst (tatptlBg tiro tenders totaling #1,500,000) *&** - 99*h7$ Iqaivalamt rat© of discotaat approx. 2*017% par summ I*» - 99.430 » . a • » n %*%$$$ » (58 percent of tha amount bid for at tlMi low price was accepted) Federal leserve total total District Applied for Boston # 38,036,000 | 38,036,000 law lork 1,^,807,000 Philadelphia 29,888,000 Cleveland 1*6,921,000 EictoaM 9,901,000 Atlanta 2O,O79tO00 Chicago 257,262,000 St. Lonls 15,1*21,000 Minneapolis 9,398,000 Kansas Oity l#,ii52,0OO *•«*• 52,298,000 Sen Francisco 72,579,000 total #2,067,01*2,000 tit 600,122,000 Accepted 1,076,987,000 17,788,000 1*6,921,000 9,901,000 20,079,000 200,262,000 15,1*21,000 9,398,000 1*0,1*52,000 52,298,000 72,579,000 » TREASURY DEPARTMENT WASHINGTON, D.C. RELEASE MORNING NEWSPAPERS, Tuesday, October 4T lggg. H-922 The Treasury Department announced last evening that the tenders ior $1,600,000,000, or thereabouts, of 91-day Treasury bills to be datea October 6, 1955, and to mature January 5, 1956, which were oxfered on September 29, were opened at the Federal Reserve Banks on October 3. The details of this issue are as follows: Total applied for - $2,067,042,000 Total accepted ; - 1,600,122,000 (includes $195,753,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Average price - 99.ij.lfo/ Equivalent rate of discount approx. 2.214$ per annum Range of accepted competitive bids: (Excepting two tenders totaling $1,500,000) Hi h & - 99.475 Equivalent rate of discount approx. 2,077$ per annum Low - 99.430 Equivalent rate of discount approx. 2.255$ per annum (58 percent of the amount bid for at the low price was accepted) Federal Reserve Total Total Pl3tr^ct - &B8i2&*pr.limit Boston $ 38,036,000 $ 38,036,000 New York 1,474,807,000 Philadelphia 29,888,000 Cleveland 46,921,000 Richmond 9,901,000 Atlanta 20,079,000 Chicago 257,262,000 St. Louis 15,421,000 Minneapolis 9,398,000 Kansas City 40,452,000 ^llas 52,298,000 San Francisco 72 ? ;?79T 000 Total $2,067,042,000 $1,600,122,000 0O0 Accepted 1,076,987!000 17!788 000 46,92l!oGO 9,901!000 20,079,000 200,262,000 15,421,000 9,398!ooo 40,452 000 52,298*000 72.579.000 -13* 4 tax burdens. Ibey wJJLl aXua be en ifc© alert to arrange their affaira i* audi a mimes* aa to take advantage of any speoial provisions afaicb m^ agist* la the Treasury ^par^BBt, w® feel it is oar ras^oalMlitr to aa^&nistar and apply tbe tax laws, as ttaqr are passed ^r t$m Oongreas, la a way to place a iniatasm iaooBvenienee on taxpayers^ eosftdaeA uita fall protection of t«@ revenues and reasonable administrative bnrdena upon the CtammsfttSfU W© reeogniaa a further raapaaslbU&ty to observe tbs operation of tae lairs m& to nake recoransndations for tbeir inmrovesent, bot^i for the purpose of reaving unnecessary compliance bordsns and inequities on taxpayers, and for tae purpose of protecting Hie revenues. Qm own investigations in these areas are not yet complete^ m& it i»uld be premature at this Um to make any specific rvmmmm^ tions to tha Ceraisittee on poaaible changes in the technical ami axteinistratlve aspects of the excise tax laws* - 12 - . 5 the important eletieat of certainty* Another sat- of problems arises in connection aith tha; treatment ©f taxable itgsm atteh may be incorporated' by other mamifaaturars into nontaxable preduats. The c^ieatioa is Aether a taxed item in same sense looses its identity and hence should become nantaxabla itaft it is usaa' .as a ©espsaejit in a larger or nora elaborate article. -&£« problem appears in conneetion ,aitb tires and radios uaed in the aeanfrifr** of automobiles. ^ &»•»»?*** -t* . %» ^(ttofrglt* a me final sat.of prebles*® aeals with toe technique of establishing refunds, credits, or exaaptian® en item destined for/tax exempt uses, as, for example, sales to states -.and <raunicl£|ft&Ujes and in connection with exports, Biis, however* is largely a procedural matter and henee may be better bandied in connection with tha consideration of col* lections and aisiitt, at tola %m# U» ^m «r.y ,-, In aH of the foregoing,areas,--it is of course quite natural for taxpayers; to advaaee argumaats to Justii^ either administrative tvmtomA or special statutory provisions which will miniaiga their physical processing, they would be placed at a disadvantage or forced to create artificial arrangements to secure an equal cosflpetitive treatment. Another type of problem arise® in determining the proper excise tax base for manufacturers aho carry on their own distribution up to the retail level as compared with those who sell finished sawdust* to jobbers and aholesalerg. tt is sometimes urged that manufaeturiag aanpanie* which have extensive distribution systems and costs/ should be pemitted, instead- of paying the tax on their actual sales prices, to use a lower price nhieh it is" presumed they would have charged if they- aetd to jobbers and thole* sale-rs In te &am wmnm m their- e*fl^tito*#-''do« - Suggestions of this sort often seem • well founded because the greater tax burden on a firm which does carry out its own distribution is rmry real. - However, my attempts to detemine proper presumptive prices would inevitably le^ to controversy and would involve a delegation of a large mount of adrninistr&tive :iiser^ticn to the Internal Revenue Service. The rule of basing the tax on invoice price does assure - 10 • f do not constitute manufacturing, while representatives of competing manufacturers insist that they would be placed at an unfair competitive disadvantage if those engaged in extensive processing are not subjaat to comparable taxes, tfeila. the statute contains specific provisions to deal with trade-in .aHowanoes-on rebuilt automobile engines, it remains a problem • to distinguish between rebuilding and repairing operations, Another sort of problem in tha. definition of * manufaoturer has to do with fixing..the point of 'manufacture, when a suooeaaion. of ©eiiMinies handle various stages of production* there- is a natural desire by taxpayers to have a tax iiaposed. at•• the first possible stage of production because the tax base is thus kept at a minium* For exanisle, it may be argued that even though a company advertises, guarantees, distributes, and puts its own brand name on a product, it should be taxed to another eeaspaay which physically produces the product. Other companies, however, which carry on all these production processes contend that if the tax is baaed only on which may be- subject to different rates of tax, or one of which amy be taxed and the other untaxed, lassies of this sort of Preble® occur in connection with the determination whether jewelry of a religions nature is exempt because it is used for religious purposes or is iamble baaaufta it is ommental. Also* cigarette lighters may be titrable either at sueti at 10^ of'manufacturer1 s price, or, if they are sufficiently decorated they may be texed as Jewelry at 20# of retail price. The third ^p®- ©f ptthlm arises in developing a line of danave&tion between the process of manufacturing and mere repair activity in the application of a »anufaeturer*s excise tax, m float cases, no problems 'art involved, but there m^® some borderline situations In which tha amount of new material or the extant of reprocessing VBt&ly converts what is asserted to be a repair into a mamfacturing operation,^2t is quit* imd@rstandable that in these borderline situations, some taxpipm will argue that their activitias - 8 * Q the dollar anount of revenue involved'is relatively saaU, and Hie adrrlnistrative burdens on both taxpayers and the Government' is not justified, so it is claimed, by the revenue collected, Ihis arguswint is usually associated with one of the preceding reasons, lifeperi'ence has indicated that any exemptions granted, no matter how Justifiable they *iay appear at first sight to be, are Hke3y to lead to claims for olfeer e&e^ptions. Exesiptions for a particular activity on the basis of a charitable or social purpose aliaost inevitably lead to claims for exemptions by others with somewhat similar activities. Those who consider that their activities are equally worthy of special treatment contend that they are being discriminated against if they do not get an exertion. Also, when exertions for" charitable or social purposes are granted, charges of unfair competition are likely to be made by those whose products are subject to tax* The admissions tax has raised many problens of this sort, A second set of problems arise in cemection with the class!- flcation of a particular Item into one or another of two categories -7 - H We have found that there are at least four reasons given for proposed exemptions, Sometimes they are advanced on the grounds that the thing subject to tax is believed to have an important social purpose, farious exemptions ROW in the law ajpear to be based on these grounds, ©specially the exemptions from admissions tax for activities which are cultural or educational in purpose, or the proceeds of which go to charitable activities, the second reason advanced for giving exemptions is an alleged xm^A to redress a competitive inequity between competing activities or industries, mis, for example, is the basis for the elimination of the tax on sen-sen, as provided in H,H. I4668, passed by the House in the last session of the Congress* Inevitably some things taxed wiH be more or less competitive with other things which are not taxed.-^he third reason for asking for relief is a state of distress in a particular industry, either temporary or arising from long term secular changes in the demands for particular products. The fourth reason sometimes advanced for axamptlon is sjtaqdy that Treasury Department, it seens useful to take this occasion to -•lake it available for examination and co^aeat* As Mr. Avis will indicate, the proposed revision of Chapter 51 does not deal with five controversial areas. Each of these involves complex administrative problems, has serious competitive and economic ramifications, and is the basis for intense and confHeting feeling within the industries affected. Many of then have existed for generations. In the belief that the existence of these controversial problems should not delay consideration of the other non~controversial improvements, we have studiously avoided suggesting any change in the law in these five areas. The draft which will be presented to you sisply carries forward the old law on these issues, . On the technical aspects of the law, the following classifications have seemed helpful to us In our own analysis of the suggestions which come to us. First, there are numerous suggestions for exemption for particular iteis from one or another of the excise taxes. These invariably have an adverse effect on the revenue and from this stand- point are as serious as reductions in rates. H A * will ba pm®mU& hy »*• *Mgfet £• « * * Hbrestor @f.ten Alcohol & !SttMoeo f «K Ife&s&Mi a£ te# IiAsrasl Remmm Seanles* I «iah to enpbssise that ten asterlal id«b hs pri^te *itt bo a witise dral% as d^nlgpal bf tea espsitt^ In.lAi £4flSiiosi ifortdng with a oonsittos of tint listing ^ifite 1J**IS1*7 4»tMtaM oi sdsiiAotvstifs Matters* Shi» 4ntf* m* m% milable in tee ZrassaJT-SsfttrtaMftt wfctt the end of Xaat nwd^ .«nd in tea ititervsisinc ^p it has. 'not beta possible te- ham., it vmimmd by tee trsasuigr ^*»f^ -«•** "^ officials ecaeernsd with poH«xy $M mm srsa* Xt 1:.. ataost bMnitablo test tone tfe$^: v^lcfe. war be darned appropriate by tecs* uho adsdniater- tea lew vLll. h*pt te be -modified wiaea tboy ara r^fie^acl Am the- stssstpoiot of general policy*- i^paelficsllar* nod asr&ly &s one cacreijiloW to tea estent that tesra is mw *'Viarss atffect on tee rvsfv^ottic* I^QR tee proposed cfeasgea, tea S?©»w Ospsrteswt will withhold faswtMi ttMHS&aads* tlone at this tfcoe*-.. Kite tes. imd^stealing that tesgrsft wfeicii ?£?• A^I® prsssnts dots got constitute a 9eacniaaiidat&an of tee After I esmcsltida wy trasontetioa, ^r*ftisttnMantes Assistant OonNlsslOQar (ffBdsAesDtt His %m ha:! t-t^risiv© m^mtmm lurnsagr anisecte of te© ma*k ©f tee Internal Hmnas ^orvtce, vUl deeeribe tee proeodttrtje qssd' in tee rorvico in iNwetUm :Ate tee proepsrstiflii and •r3ublIo=*tU«i of rulings en exci»<* tax nsttsrSf collectloas and audita* 3ha third item in om? prsaontstion will bs a wesrMiip draft of a minion, of Copter SX§ «ad oovtsltt parte of chsptsr* Si and $3$ of the lat«?tsal Ravmais Cods* Thit is- belag isada In accordance with tea (Ereetioa of tea ttsyv saO **e«ae l^^d^te la Its report m -.!,?, 3300-unlet! ststsdt (House fSspart "«oe 133?# B3d QK^ras% Second Jessi©nf page 9£) • u- to a lack of tin* te-. s^rl^ca of tee -^.stilled '--trite proviDianc w*ns ^on li-itcd thnn in the cace of te«- pr-->v*.j'.o:5t; i" litinj, to the oth-jr alcoholic b* v«raf?e and tdbscco t^m^ In viev of this* at the 4 a~—*; .on of your wr* itteo an Icohol Tax . urvry on "itt?"-c of tee -Yr-isury -<•.;• .irteont is now woriAn£ with a eo-nit-toa of the * i r M l l ^ spirits industry U* c.'nrider furt.ier char., rt. for s\uj*!s&lon to tec next ConrireecV' 14 their posslbla «^^e€tloi» with ote*r fstfelmu eh^T- t^lfv ^t-fhi a*nesr to ml*m a T-'TT^XT! £o often* s or r^llc^e » inec'ilty nlH oroate —aiv r^Htenr n^^ -»r^**l*nc or iasqaltloSj -?hirh vifch .-raster fcrssttfA ft*'** "iwr been ^rrtlexpated fast' s*odU$ed^ the liltfe»if wrlch t-dll be rsrescnt©^ at the hearters iltU* w© «ro awei be af nreot *also 1y' wwkliat * fhll and ^»to*ciate ottroi'sge of -sugeestisiK ^ taxps^BPs* % 'hoop it id 11 be pottibla te hfcve .-'otBs eaaffercaoss'«lte :«nisr steif in wtetitoe ssd ®MSJAI^| th* ^ieriia 'isAch idll be fitweTtted to ysm her©* After ecitfar^rKOS wtte *?flHfee*s of yottr ststf9 tee ^eaj^y !5e£«rtraSRi hfcs jwepsrad tenst different items for oreeert-atlon to tha ri3ibcoerdttoet Da tea Ewtf I shslX Indicate briefly the nrl»ri$ai cfiteforles Into nhieh te«s C9iplaii|to -oar* «tt0tostionr icd.eb im r^cHvc^ Other team thace hsvttr to *o lAth *ste£j nmm to rail© Tn dola? m, I shall .attest to list ©or» of the alternative w^r® in trlcb the problems which sive rise to theae ^mn^$timm may be <spps*oochad.# and tacfeniesl assets at wmim tsxs&tan* l&acussiisii® mm mlm carried m with thons raspoasible for tea ad?siaiste«tlim e£ thsss taigas Hi tfeo Xatojnsl tmmm Strvloa to gat tinAr ^u b«-^»--'f^ jja^rOTcasnts* Bwmm& Joint ooa**roi»s* wore hold «Lte tea Staff sX tec Jo at OcnAtioo on Internal Bovenas fasatioa on tea satojeaW It mm coatesylKted* far a tins* teat it mid -bo possiblft te uaralop. & maisfaf af asocsmndatloa* to iveson* to tea '-Jnyn «d Kasas Oonnlttea in oscsie«tloa< i&te < tee gaaaral mlstaft of tea Asternal Wmmm Cads in 1- -U ttriUr the tfc* praaaiaras whteti devslE^d, h^f^/ei-, It w» not po&ssiblc te i^ti excise toe pxobXsas la the DspsvtmsiMs tsx *eoan*sadattaas* la tee IBUP* ve&sing zwnuwt venous other sufgastlms h«r& coma in te tea Departeaiij* bat it has not ba« feasible te seanre a ae^rats^isiv© sat of propoaala hy tmgmgwu on tee int^ralat^l aapacts of teis. geaoral .jroblan* * find It especially iqportsat te dasl with iadivliual iro~ blatig In tee- ©steles tsse area only aftar fill e^nsidariittei* of 16 s t s t ^ m t W **• ^ a T« satte* sposisl Aan&steKo to tee Sacratery off the Trsssury* bafor® ten ^jft**^ tit* Fi^W*-i^-*n*-*stt»- isirflisltrS^#7^ S ,f ^J October k$ 19SS* Tbs T r a s s w T>»artKflKt w&oonss te@ ^ ^ » ^ s i ^ stfcsdsd tgr thsso iMMtsso of te© SabsovAttso on asdso f« Tostalnsi sad AdnbAalrailvn MUm of ten **syo and Hasan QswAtteo te secure, ttvootfi tea ttnttaonr utActi «Ul ba prsssnfcod to yea* em^t^mmim sad ap-to-dofe* sagpnrttsas of te^^ir® m m® technical and a^iMstetiw aapsstt of snelas tsxstloae vie shara ten Cnaslttos*s Inssvast te tea e-bjeet* ths «Ktsaal*s asterlsl atAeh ^H bo presented to tea temruigs mn bo of ^m% bsnsflt te as la our own eomtiaiAac rsvion of pml&mm la this & 1553s ss part of tlis irojpsrstion of rooaasandaticaMi son* carnlaj- tsat IsgUlsUnA ftr l&ft* tea staffs of tea treasury ttopartasnt sad tet Jaterasl Bavsaaa Service cscwtSJwd te® propoaals which hM boon nsdo tip te teat t&ns tjr taxpayers M various grotfm oateid® ten Gnvaramnt for aocon««tions of tao ftdHHiitelife y, 3 TREASURY DEPARTMENT Washington 17 Statement by Mr. Dan T. Smith, Special Assistant to the Secretary of the Treasury, before the Subcommittee on Excise Tax Technical and Administrative Problems, Ways and Means Committee, House of Represenatives, 10 A.M., EST, October 4, 1955. The Treasury Department welcomes the opportunity afforded by these hearings of the Subcommittee on Excise-Tax Technical and Administrative Problems of the Ways and Means Committee to secure, through the testimony which will be presented to you, comprehensive and up-to-date suggestions of taxpayers on the technical and administrative aspects of excise taxation. We share the Committee's interest in the subject. The extensive material which will be presented in the hearings will be of great benefit to us In our own continuing review of problems in this area. In 1953, as part of the preparation of recommendations concerning tax legislation for 1954* the staffs of the Treasury Department and the Internal Revenue Service examined the proposals which had been made up to that time by taxpayers and various groups outside the Government for modifications of the administrative and technical aspects of excise taxation. Discussions were also carried on with those responsible for the administration of these taxes in the Internal Revenue Service to get their suggestions for improvements. Several joint conferences were held with the Staff of the Joint Committee on Internal Revenue Taxation on the subject. It was contemplated, for a time, that it would be possible to develop a number of recommendations to present to the Ways and Means Committee in connection with the general revision of the Internal Revenue Code in 1954. Under the time pressures which developed, however, it was not possible to include excise tax problems in the Department's tax recommendations. In the intervening months, various other suggestions have come in to the Department, but it has not been feasible to secure a comprehensive set of proposals by taxpayers on the interrelated aspects of this general problem. We find it especially important to deal with individual problems in the excise tax area only after full consideration of their possible connections with other problems. So often, a change which might appear to solve a problem or relieve an H-923 inequity will create more serious new problems or inequities, which with greater foresight might have been anticipated and avoided. 18 - 2 The testimony which will be presented at the hearings will, we are sure, be of great value by providing a full and up-to-date coverage of suggestions by taxpayers. We hope it will be possible to have joint conferences with your staff in reviewing and examining the material which will be presented to you here. After conferences with members of your staff, the Treasury Department has prepared three different items for presentation to the Subcommittee. In the first, I shall indicate briefly the principal categories into which the complaints and suggestions which we receive, other than those having to do with rates, seem to fall. In doing so, I shall attempt to list some of the alternative ways in which the problems which give rise to those suggestions may be approached. After I conclude my presentation, Mr. Justin Winkle, Assistant Commissioner (Technical), who has had extensive experience in many aspects of the work of the Internal Revenue Service, will describe the procedures used In the Service in connection with the preparation and publication of rulings on excise tax matters, collections and audits. The third item in our presentation will be a working draft of a revision of Chapter 51, and certain parts of Chapters 52 and 53* of the Internal Revenue Code. This is being made in accordance with the direction of the Ways and xMearis Committee in its report on H.R. 8300 which stated: (House Report No. 1337* 83d Congress, Second Session, page 95) "Due to a lack of time the revision of the distilled spirits provisions was more limited than in the case of the provisions relating to the other alcoholic beverage and tobacco taxes. In view of this, at the direction of your committee an Alcohol Tax Survey Committee of the Treasury Department is now working with a committee of the distilled spirits industry to consider further changes for submission to the next Congress." This will be presented by Mr. Dwight S. Avis, Director of the Alcohol & Tobacco Tax Division of the Internal Revenue Service. I wish to emphasize that the material which he presents will be a working draft, as developed by the committee in his Division working with a committee of the distilled spirits industry on technical and administrative matters. This draft was not available in the Treasury Department until the end of last week, and in the intervening days it has not been possible to have it reviewed by the Treasury staff and the officials concerned with policy in this area. It is almost Inevitable that some things which" may be deemed appropriate by those who administer the lav/ point will have of general to be modified policy. when Specifically, they are reviewed and merely from asthe onestandexample, - 3- 1Q to the extent that there is any adverse effect on the revenues from the proposed changes, the Treasury Department will withhold favorable recommendations at this time. With the understanding that the draft which Mr. Avis presents does not constitute a recommendation of the Treasury Department, it seems useful to take this occasion to make it available for examination and comment. As Mr. Avis will indicate, the proposed revision of Chapter 51 does not deal with five controversial areas. Each of these involves complex administrative problems, has serious competitive and economic ramifications, and is the basis for intense and conflicting feeling within the industries affected. Many of them have existed for generations. In the belief that the existence of these controversial problems should not delay consideration of the other non-controversial improvements, we have studiously avoided suggesting any change in the law in these five areas. The draft which will be presented to you simply carries forward the old law on these issues. On the technical aspects of the law, the following classifications have seemed helpful to us in our own analysis of the suggestions which come to us. First, there are numerous suggestions for exemption for particular items from one or another of the excise taxes. These invariably have an adverse effect on the revenue and from this standpoint are as serious as reductions in rates. V/e have found that there are at least four reasons given for proposed exemptions. Sometimes they are advanced on the grounds that the thing subject to tax is believed to have an important social purpose. Various exemptions now in the lav; appear to be based on these grounds, especially the exemptions from admissions tax for activities which are cultural or educational in purpose, or the proceeds of which go to charitable activities. The second reason advanced for giving exemptions is an alleged need to redress a competitive inequity between competing activities or industries. This, for example, is the basis for the elimination of the tax on sen-sen, as provided in H.R. 4668, passed by the House in the last session of the Congress. Inevitably some things taxed will be more or less competitive with other things which are not taxed. The third reason for asking for relief is a state of distress in a particular industry, either temporary or arising from long term secular changes in the demands for particular products. The fourth reason sometimes advanced for exemption is simply that the dollar amount of revenue involved is relatively small, and the administrative burdens on both taxpayers and the Government is not argument justified, isso usually it is associated claimed, bywith the revenue one of the collected. precedingThis reasons. - 4- 20 Experience has indicated that any exemptions granted, no matter how justifiable they may appear at first sight to be, are likely to lead to claims for other exemptions. Exemptions for a particular activity on the basis of a charitable or social purpose almost inevitably lead to claims for exemptions by others with somewhat similar activities. Those who consider that their activities are equally worthy of special treatment contend that they are being discriminated against if they do not get an exemption. Also, -when exemptions for charitable or social purposes are granted, charges of unfair competition are likedly to be made by those whose products are subject to tax. The admissions tax has raised many problems of this sort. A second set of problems arise In connection with the classification of a particular Item into one or another of two categories which may be subject to different rates of tax, or one of which may be taxed and the other untaxed. Examples of this sort of problem occur in connection with the determination whether jewelry of a religious nature is exempt because it Is used for religious purposes or is taxable because it is ornamental. Also, cigarette lighters may be taxable either as such at 10$ of manufacturer's price, or, if they are sufficiently decorated they may be taxed as jewelry at 10% of retail price. The third type of problem arises in developing a line of demarcation between the process of manufacturing and mere repair activity in the application of a manufacturer's excise tax. In most cases, no problems are involved, but there are some borderline situations in which the amount of new material or the extent of reprocessing really converts what is asserted to be a repair into a manufacturing operation. It is quite understandable that in these borderline situations, some taxpayers will argue that their activities do not constitute manufacturing, while representatives of competing manufacturers insist that they would be placed at an unfair competitive disadvantage if those engaged in extensive processing are not subject to comparable taxes. While the statute contains specific provisions to deal with trader-In allowances on rebuilt automobile engines, it remains a problem to distinguish between rebuilding and repairing operations. Another sort of problem in the definition of a manufacturer has to do with fixing the point of manufacture, when a succession of companies handle various stages of production. There is a natural desire by taxpayers to have a tax imposed at the first possible stage of production because the tax base is thus kept at a minimum. For example, it may be argued that even though a company advertises, guarantees, distributes, and puts its ownbrand which physically name on a product, producesit the should product. be taxed Other tocompanies, another company however, - 5- 21 which carry on all these production processes contend that if the tax is based only on physical processing, they would be placed at a disadvantage or forced to create artificial arrangements to secure an equal competitive treatment. Another type of problem arises in determining the proper excise tax base for manufacturers who carry on their own distribution up to the retail level as compared with those who sell finished products to jobbers and wholesalers. • It is sometimes urged that manufacturing companies which have extensive distribution systems and costs should be permitted, instead of paying the tax on their actual sales prices, to use a lower price which it is presumed they would have charged if they sold to jobbers and wholesalers in the same manner as their competitors do. Suggestions of this sort often seem well founded because the greater tax burden on a firm which does carry out its own distribution is very real. However, any attempts to determine proper presumptive prices would inevitably lead to controversy and would involve a delegation of a large amount of additional administrative discretion to the Internal Revenue Service. The rule of basing the tax on invoice price does assure the important element of certainty. Another set of problems arises in connection with the treatment of taxable items which may be incorporated by other manufacturers into nontaxable products. The question is whether a taxed item in some sense loses its identity and hence should become nontaxable when it is used as a component in a larger or more elaborate article. This problem appears In connection with tires and radios used in the manufacture of automobiles. The final set of problems deals with the technique of establishing refunds, credits, or exemptions on items destined for tax exempt uses, as, for example, sales to states and municipalities and in connection with exports. This, however, is largely a procedural matter and hence may be better handled in connection with the consideration of collections and audits. In all of the foregoing areas, It is of course quite natural for taxpayers to advance arguments to justify either administrative treatment or special statutory provisions which will minimize their tax burdens. They will also be on the alert to arrange their affairs in such a manner as to take advantage of any special provisions which may exist. In the Treasury Department, we feel it is our responsibility to administer and apply the tax laws, as they are passed by the Congress, in a way to place a minimum inconvenience on taxpayers, combined with full protection of the revenues and reasonable administrative burdens upon the Government. We recognize - 6- 22 a further responsibility to observe the operation of the laws ana to make recommendations for their improvement, both for the purpose of removing unnecessary compliance burdens and inequities on taxpayers, and for the purpose of protecting the revenues. Our own investigations in these areas are not yet complete, and it would be premature at this time to make any specific recommendations to the Committee on possible changes in the technical and administrative aspects of the excise tax laws. Mr. Winkle and a number of specialists from the Internal Revenue Service are here and we shall undertake jointly to provide such information as may be desired by the Committee on such aspects of the subject as you may wish information. 0O0 REASURY DEP SS > tckSXtd d*0|. Jvctfa $mi$-x&btf $mmff®£ia& fasataa ?9(I fWrtwstT srif la noxlIM 4\£-S£ te jatoallo ifaao J-nomao adi icl %m£$ai*m?i€m lo Xd boviaoe^ fl@®d osri sssfib-ordabnl 1© asd-aailtcriaa noiJaqlal&iA xaT .xsbis^sax assnlaad 1© saolo adi si$ar0Td£ aainsS arssssfi Istsfosl addforxo&od' baofliyoisas ad Xliw ©usax alri* no fesM#o!lB lo aiasd arft •ytbnotTi Wednesday » October $> 1955* / The Treasury Department aaisotmeed today that about |8.6 billioa of subseriptioaa for the currant eaah offerisg of $2-3/4 billioa of fax anticipation Gertifieates of Indebtedness had bean received by the Federal leserve Banks through the close of business yesterday. the basis of allotment on this issue sill be annoiaseed tomorrow Horning. TREASURY DEPARTMENT ^L WASHINGTON, D.C. IMMEDIATE RELEASE, Wednesday, October 5, 1955. H-924 The Treasury Department announced today that about $8.6 billion of subscriptions for the current cash offering of $2-3/4 billion of Tax Anticipation Certificates of Indebtedness had been received by the Federal Reserve Banks through the close of business yesterday. The basis of allotment on this issue will be announced tomorrow morning. oOo - 3 - 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 h$k (b) and 1221 {$) of the Internal Revenue Code 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 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. hlS, 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. - 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 October 13. 13$$ » in cash or other immediately available funds XXX or in a like face amount of Treasury bills maturing October 13. 191% . 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 195k. 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 prin or interest thereof by any State, or any of the possessions of the United State 2? t3$M TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, jT ~ /2 ^? Tlmrsday. October 6r 19g5 L The Treasury Department, by this public notice, invites tenders for $ 1.600.000.OOP , or thereabouts, of 91 -day Treasury bills, for cash and in exchange for Treasury bills maturing October 13. 1955 * in the amount of $ 1>600.U59.000 * to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated October 13* 1955 » and will mature January 12. 1956 , when the face amount will be payable without interest. They will be issued in bearer form onl and in denominations of $1,000, 15,000, $10,000, $100,000, $500,000 and $1,000, (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the one-thirty closing hour,/tea: o'clock p.m., Eastern Standard time, Monday, October 10. 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 thr decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received 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 RELEASE MORNING NEWSPAPERS, Thursday, October 6, 1955. H-925 The Treasury Department, by this public notice, invites tenders for $1,600,000,000, or thereabouts, of 91-day Treasury bills, for cash and in exchange for Treasury bills maturing October 13, 1955, in the amount of $1,600,459,000, to be issued on a discount basis under competitive and non-competitive bidding as hereinafter provided* The bills of this series will be dated October 13, 1955, and will mature January 12, 1956, 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, one-thirty o'clock p.m., Eastern Standard time, Monday, October 10, 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 - p - °? r ^ e t V e b i d 3 ' S e t t i e m e n t I>or accepted tenders in accordance with the bids must be made or -....mpl tried at the Federal Reserve Bank °n October 13, 1955, In cusii or other immediately available funds or In a like face amount of Treasury bills maturing October 13, 195Gash and exchange tenders will receive equal treatment. Cash adjustments wilJ 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 k5l\ (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 >.t maturity during the taxable year for which the return J.3 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. thursday, October 6, lffi£.L, the Treasury today *nt*wnc«4a Jt parent *13*tsMflt on seSssorlpilaiis is excess of §100.000 for the current cash offsriiif of 9 2 ~ 3 A b U l i o a of 2-lA perssiit ttac AaAI«ip**$** Certifies***. Sabaeriptiona -for $200*000 or lass will ba allotted ia full. Siibseriptissts *®r » r a than $100,000"* will be allotted not lass tafta $180,00®. ,? eport-s? received tints far front the Faisral laser*©- Santea show that1 at^acrlptiona total about I6 9 777 million. Districts as to sstosttriptloa* and allotments will bt.sittsounesd'ifbsit flasl report® are raoaivad fro» tfee Federal TREASURY DEPARTMENT 30 WASHINGTON, D.C. IMMEDIATE RELEASE, Thursday, October 6, 1955. H-926 The Treasury today announced a 32 percent allotment on subscriptions in excess of $100,000 for the current cash offering of $2-3/4 billion of 2-1/4 percent Tax Anticipation Certificates. Subscriptions for $100,000 or less will be allotted in full. Subscriptions for more than $100,000 will be allotted not less than $100,000. Reports received thus far from the Federal Reserve Banks show that subscriptions total about $8,777 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 31 KoniSay, Oeteber 10, lf$$> m a Treasury Bepartfteiit teiisy anBg^nced the s^seripti<m aisd all©tee»t figures with respect to tha current cash offering @f 2-3/h percent fax Anticipation Certificates ef Indebtedness of ?*!*** C-lfS®. These certificatas will be dated Oeteber 21, 1955, an4 will matiira «ftine 22, 1956. They will be accepted at par pirns aaemsd interest te satarity in payment ef incense and profits taxes due on ^im* 25» 1956Afcoat $1.3 billion ©f these oertifSpates were allotted te nenbank soirees ©n or%iaal issue* Subseripttais and allotments ware divided among the several Federal H«s©rve Pistrists and the Treasury as follows t federal Reserve District Total Sab scriptions Received fetal Subscriptions Allotted Boston Saw York Philadelphia Cleveland Rlc&nond Atlanta Chieage St. h&mis Minneapolis Kansas City Dallas Sam ?rsnelsso Treasury I 3H»O17#G0O 3>S7B9m»9(® i 1C&,663,0O0 l,lS9,7i*7,OO0 H9,7ife,ooo 255,81ik,000 103,182,000 128,131,000 1*5^,1*1*9,000 81,79**000 62,738,000 «Jl,lt*l,000 127,980,000 277,393,000 m$2n,ooo 769»3&6,QQQ t*»,3*»,000 32fe,**M00 1,318,163,000 213,152,000 U>9f82Of0©© 250,529,000 XOtfl9QQQ m97Tf$mo tm&L 18,778,160,000 #2,970,120,000 TREASURY DEPARTMENT 32 W A S H I N G T O N , D.C Vi ~^2( IMMEDIATE RELEASE, Monday, October 103 1955* The Treasury Department today announced the subscription and allotm figures with respect to the current cash offering of 2-lA percent Tax Anticipation Certificates of Indebtedness of Series C-1956. These certificates will be dated October 11, 1955, &nd will mature June 22, 1956. They will be accepted at par plus accrued interest to maturity in payment of income and profits taxes due on June 15, 1956. About $1.3 billion of these certificates were allotted 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 Subscriptions Received District Boston ^ewYork * 311,017,000 3,578,865,000 3 7 Philadelphia Cleveland Richmond M^earolis Ka^as City Treasury S SanSancisco TOTAL * 10h,663,000 ^ M X f '?S'S22 o**S£2S 289,369,000 JS'flfrSE ?S*?R*'2E 103,182,000 32U,28fc,000 1,318 563 000 213 152 000 128,131,000 i*5fc,U*9,000 81,798,000 159 820,000 250 529 000 360 167,000 81,5,777,000 $8,778,160,000 62,738,000 91,1*1,000 127,980,000 277,393,000 $2,970,120,000 7 Atlanta Chicago St Louis tions Allotted 33 BMMSB wmim NSSSPAPSM, Tuesday, October 11, 1955» the Treasury Department announced last evening that the tenders for |X,600,000,0® or ttmreabouts* of 91~dsy treasury feiUs to be dated October 13, 1955, sad te nat January 12, X956, which were offered on October 6, were opened at the Federal Res Banks on October 10. *Bie details of this issue are as follows5 Total applied for - $2,256,679,000 Total accepted - 1,600,731,000 Average prise - 99M9J (includes $231,1*03,000 entered on a aoncc&ipetitive basis and accepted is full at the average price shown below) BquimLent rate @f discount appro*. 2.257* par anssa Range of seeepted competitive bidss (gseeptiag QQ© tender of $500,000) Hi# - 99.440 tqsimlest rate of discount apprea&. 2.215* per annua I*ar - 99.1*26 » * * * * 2,271* * • (84 pereemt of the amount bid for at the low p-iee was accepted) Federal Eeserve District fetal Applied for Total Accepted Boston Sew lork f&Hadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco 1 $ TOfAL 35,938,000 1,594,934,000 42,377,000 63,525,000 15,654,000 33,297,000 250,432,000 27,564,000 16,124,000 35,940,000 56,095,000 84,799,000 $2,256,679,000 30,938,000 1,060,694,000 27,377,000 63,525,000 15,654,000 32,637,000 180,792,000 27,564,000 15,7cm, 000 34,940,000 31,063,000 79,839,000 $1,600, 731,000 TREASURY DEPARTMENT WASHINGTON, D . C RELEASE MORNING NEWSPAPERS, Tuesday, October 11,1955. H-92b The Treasury Department announced last evening, that the tenders for $1,600,000,000, or thereabouts, of 91-clay Treasury bills to be dated October 13, 1955, and to mature January 12, 1956, which were offered on October 6, were opened at the Federal Reserve Banks on October 10. The details of this issue are as follows: Total applied for - $2,256,679,000 Total accepted - 1,600,731,000 (includes $231,403,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Average price - 99.429/ Equivalent rate of discount approx. 2.257$ per annum Range of accepted competitive bids: (Excepting one tender of $500,000) High - 99.440 Equivalent rate of discount approx. 2.215% per annum Low - 99.426 Equivalent rate of discount approx. 2.271$ per annum (84 percent of the amount bid for at the low price was accepted) Federal Reserve Total Total District Applied for Boston. $ 35,933,000 New York 1,594,934,000 Philadelphia ^2,377,000 Cleveland 63,525,000 Richmond 15,654,000 Atlanta 33,297,000 Chicago 250,432,000 St. Louis 27,564,000 Minneapolis 16,124,000 Kansas1 City 35,940,000 Dallas 56,095,000 San Francisco 84,799,000 TOTAL $2,256,679,000 $1,600,731,000 0O0 Accepted $ 30,938,000 l,0t>0,694,000 27,377,000 03,525,000 15,b54,000 32,b37,000 180,792,000 27,5o4,000 15,708,000 34,940,000 31,063,000 79,639,000 ™KM™Y?Z$?c™m < "K Fl»c*l Service STATUTORY DEBT LIMITATION «„; *\*\ <iAff o c AS OF *»£.:.. 3?..*..A?# ^- n 195< Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of pbllgationslsaued under "parity Washington, ^E.r.T A.Af.»...<.r(,i of that Act, and the face amount of obligations guaranteed as to principal and intercut by the United S t o t « % ^ " " p ^ , «m? •creased by 5G,UUU,Ui)U,UUU. ine Act or June w, iy?> \r.L.. 1/4 tyna congress; i_"m.u»«==. ««»» »-r—, The following table shows the face amount of obligations outstanding and the face amount which can still be issued undef this limitation: 'Total face amount that may be outstanding at any one time $ 2 8 1 , © 0 0 ,000,000 OutstandingObligations issued under Second Liberty Bond Act, as amended Interest-bearings Treasury bills $20,810,383,000 Certificates of indebtedness Treasury notes 9.0^6,810,000 *t8,106\W),500 • 77,963,633.500 B °"ednss"ury 81,860,518,200 fepositaty- V 12,1*50 [828*000 152,97^,218,170 Investment series 1—•£•—- • Certificates of indebtedness 31 » 851, 2?1, 000 12,039,723,^00 Treasury notes! Total interest-bearing i Matured, interest-ceased Bearing no interests United States Savings Stamps 46,209,912 Excess profits tax refund bonds 1,056,600 Special notes of the United States; . „.. , „ J „,:.« 1,613,000,000 Internat'l Monetary Fund series 1 sLl ! Total • Guaranteed obligations (not held by Treasury): Interest-bearing: ^ ^ Debentures: F.H.A. '907^50 Matured, interest-ceased Grand total outstanding „ ; B a l a n c e face a m o u n t of obligations issuable under a b o v e authority ^3,890,99^,^00 27^,828,846,070 508,139,000 1,660,266,512 1 * *-«s 276,997,251,582 47,725,900 ——• « ; g „ „ ^ ^ -„„ ^g2 — — ^ 6cj< M$ <ng" J'??-*'^ O . . . Reconcilement with Statement of the Public Debt j£R&t...3p.»....?sS5.5 (pata) (Daily Statement of the United States Treasury, ?®ES.T...^9.J.A?.55 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, W , 1 0 6 , 6 ^ 1 j^„ - ^ e Q Q Q ___™— 277,; 277,0*14,977,**82 H-929 STATUTORY DEBT LIMITATION AS oi-..?.^.:...3?.;...l?55 TRKABUNY DKPARtMRMT *\ s~\ Total face amount that m a y be outstanding at any one time Outstanding- Pl»c»l Betvice Retvice PI,c»I $281,000,000,000 Obligations issued under Second Liberty Bond Act, a s a m e n d e d Interest-bearing; Treasury bills ...„„„..„„.„..,„„„.,„„.„, Certificates of indebtedness.,..,.... Treasury notes .». ...................... Treasury ......................................... * Savings (current redemp. value),.,,, Depositary.................,.,..,....,..,,.,,,,,,.,, investment series .....„..,..„,„.„.„„„„ Special F u n d s Certificates of indebtedness „,.„..... Treasury notes............................,..„ Total interest-bearing ........................ 120,810,383,000 9,046,810,000 48,106,440,500 | 77,963,633,500 81,860,518,200 58,290,306,470 372,565,500 12,450,828,000 31,851,271, 12,039,723,^0 Matured, interest-ceased .................... Bearing no interest; United States Savings Stamps,,.,,..,,,, 152,97^,218,170 43,890,994,400 274,828,846,070 508,139,000 46,209,912 1,056,600 E x c e s s profits iax refund bonds ...... Special note8' of the United States: 1,613,000,000 series....... 1,660,266,512 276,997,251,582 Guaranteed obligations (not held by Treasury' Interest-bearings Debentures; F»H»Ae ................ ....... Maturedg interest-ceased ........................ — 46,818,250 907,650 4?.725,900 277.044,977,482 Grand ftota! outstanding .................. .......................................................... Balance face amount of obligations issuable under above authority ,..,.,„., Reconcilement with Statement of the Public Del Sept, 30, 1.25,5.,. (Daily Statement'of the United States Treasury,,, Sept. .30, 195^ (Dai«) J (Tint a) )utstanding» Total gross public debt ., Guaranteed obligations not o w n e d by the Treasury. Total gross public debt and guaranteed obligations....... >educt - other outstanding public debt obligations not subject to Mebt limitation,.,.,..... 277,^76,106,641 ^7,725,900 277.523,832,541 478,835,059 277,044,977,482 H-929 lrm».D«>i>t.-l,P-WM»h.,D.C. 126- 3 - 3 - &fi£ 37 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 {$) of the Internal Revenue Code 1?5U 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. 4l8, 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, "c - OQ 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 October 20. 1955 » in cash or other immediately available funds or in a like face amount of Treasury bills maturing October 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 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, QO XKE5BBC TREASURY DEPARTMENT Washington , ^ ^ . FOR RELEASE, MORNING NEWSPAPERS, Thursday* October 13* 1955 The Treasury Department, by this public notice, invites tenders for • l»60Q,OOQ»OOQ , or thereabouts, of In 91 -day Treasury bills, for cash and ng in exchange for Treasury bills maturing October 20. 1955 , in the amount of m $ 1,600,431*000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated October 20, 1955 , and will mature January 19, 1956 , when the face ^r m amount will be payable without interest. They will be issued in bearer form only, and in denominations of $1,000, #5,000, #10,000, 1100,000, $500,000 and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the one-thirty closing hour,/tats o'clock p.m., Eastern Standard time, Monday. October 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 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, October 13, 1955. H-930 The Treasury Department, by this public notice, invites tenders for $1,600,000,000, or thereabouts, of 91-day Treasury bills, for cash and in exchange for Treasury bills maturing October <20, ly^t), In the amount of $1,600,431,000, to be issued on a discount basis under competitive and non-competitive bidding as hereinafter provided. The bills of this series will be dated October 20, 1955* and will mature January 19, 1956, 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, andwill $1,000,000 (maturity value). Tenders be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty o'clock p.m., Eastern Standard time, Monday, October 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. " J ; 8 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 FederaTReserve Banks and Branches, following which public announcemint will be made by the Treasury Department of the amount and price rnnL of accepted bids. Those submitting tenders will be advised of ^ a c c e p t a n c e or rejection thereof. The Secretary of the Treasury exoressly reserves the right to accept or reject any or all tenders ^ P , , ^ i f 0 r i n oart and his action In any such respect shall be final sSbjectPto these reservations, non-competitive tenders for 4200 000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) ot accepted - 2competitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on October 20, 1955, in cash or other immediately available funds or In a like face amount of Treasury bills maturing October 20, 195S Gash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange and the issue price of the new bills. The Income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, does not have any exemption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treatment, as such, under the Internal Revenue Code of 195^. The bills are subject to estate, Inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or Interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States Is considered to be interest. Under Sections 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— COTTON WASTES (In pounds) COTTON CARD STRIPS made from cotton having* staple of less than 1-3/16 inches in length, COMBER WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN 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 countriess United Kingdom, Prance, Netherlands, Switzerland, Belgium, Germany, and Italys Country of Origin United Kingdom . Canada . . „ . . • . France . . . 0 . « o > o o British India . . a Netherlands . „ Switzerland . . . . Belgium . o o o o Japan . „ . . « 0. o . 0 o . China 0 0 . e . Egypt o o o o . . Cuba Germany o e o o . . a . 0 0 0 Italy o o o o 0 . 0 Established TOTAL QUOTA Total Imports Sept. 20, 1955* to 4,323,457 239,690 227,420 69,627 68,240 44,388 38,559 341,535 17,322 8,135 6,544 76,329 21,263 158,449 64,4*3 18,692 5,482,509 266,124 l/ Included in total imports, column 2. Prepared in the Bureau of Customs. Established 33-1/356 of Total Quota 17 Imports Sept. 20, 1955, to Oct* 11, 1955 1,441,152 158,449 75,807 18,692 22,747 14,796 12,853 24,500 24,500 1,599,886 201,641 TREASURY DEPARTMENT Washington IMMEDIATE RELEASE, Thursday. October 13, 1955. H-931 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 55, to October 11, 1955, inclusive Country of Origin Egypt and the AngloEgyptian Sudan . . Peru British India . . . , China Mexico . . . . . . . Brazil Union of Soviet Socialist Republics Argentina , Haiti Ecuador . . . . . . . Established Quota 783,816 247,952 2,003,483 1,370,791 8,883,259 618,723 475,124 5,203 237 9,333 Imports Country of Origin Honduras . *" i* c%&<> 8,883,259 368,196 ~ Established Quota 752 ~ Paraguay 871 Colombia 124 Iraq 195 British East Africa . . 2,240 Netherlands E. Indies. 71,388 Barbados 21,321 l/0ther British W. Indies Nigeria . . 5,377 2/0ther British W. Africa 16,004 ,2/Other French Africa . . 689 Algeria and Tunisia . 1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago. 2/ Other than Gold Coast and Nigeria, 2/ Other than Algeria, Tunisia, and Madagascar. Cotton, harsh or rough, of less than 3/4" Imports Sept. 20. 19 5?. to Sept. 30. 195g Cotton 1-1/8" or more, but less than 1-11/16" Imports Feb. 1. 1955, to Sept. 30. 1955" Established Quota (Global) Imports Established Quota (Global) 70,000,000 1,134,447 45,656,420 Imports 31,314,171 3 mBASURY DEPARTMENT Washington IMMEDIATE RELEASE^ Thursdayf October 13. 1953* H-931 Preliminary data on imports for consumption of cotton and cotton waate chargeable to the quotas established by the President6^ 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 55, to October 11, 1955, inclusive Country of Origin Established Quota Imports Country of Origin Established Quota Egypt and the Anglo«= Honduras „ . 0 0 c 0 783,816 Egyptian Sudan • . °° Paraguay . „ „ . • • » ra 247,952 Peru • . • • o • • . Colombia c o . . . .' o OT 2,003,483 British India . «, . . Iraq . , e e . „ 0 6 e 1,370,791 China . . . . . . „ . British East Africa . . 8,883,259 Mexico . . . . . 0 o 8,883,259 Netherlands E c Indies. 618,723 Brazil . . „ . . , . , 368,196 Barbados . . . . e . . Union of Soviet l/0ther British W 0 Indies 475,124 -Socialist Republics Nigeria . . e . . c . 5,203 Argentina . . . e • • 2/0ther British W e Africa 237 Haiti . o . . . 0 . o J/Other French Africa c . 9,333 Ecuador . . « . . . . 1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobagoe Algeria and Tunisia c 2/ Other than Gold Coast and Nigeria. 2/ Other than Algeria, Tunisia, and Madagascar* 752 871 124 195 2,240 71,338 21,321 5,377 16,004 689 Cotton, harsh or rough9 of less than 3/4" Imports Sept. 20. 1955. to Sept. 30. 1955 Cotton 1-1/8" or more, but less than 1-11/16" Imports__Feb. 1. 1955, to Sept. 30. 1955 Established Quota (Global) Imports Established Quota (Global) 70,000,000 1,134,447 45,656,420 Imports 31*314,171 -<2« COTTON WASTES (In pounds) G °wI?^CA^BS^^ nade-from cotton having * staple of less than 1-3/16 inches in length, COMBER A ^ r ^ r T ™ 5 ? ? ^ SLIVER WASTE, AND ROVING WASTE, AETHER OR NOT MANUFACTURED OR OTHERWISE ^ T ^ Y J V A L ? ? ? Provided, however, that not more than 33-1/3 percent of the quotas shall pe lined by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more in s.apie- length in the case of the following countries? United Kingdom, France, Netherlands, Switzerland, Belgium, Germany, and Italy* Country of Origin Established TOTAL QUOTA : Total Imports i Established s Sept. 20, 1955, to : 33-1/3* of i-Qct. 11. 1955 : Total Quota Imports Sept. 20, 19 55, to Oct. 11, 1955 United Kingdom . . . . . 4,323,457 Canada . . . . . . . . . 239,690 France . . . . . . . e e 227,420 British India . . . . . , 69,627 Netherlands . . . . . . . 68,240 Switzerland . . . . . . . 44,388 Belgium . . . . . . . . . . 38,559 Japan . . . . . . . . . . . 341,535 China . . . , . . . . . . 17,322 Egypt . . . . . . . . . . 8,135 Cuba . . . . . . . . . . 6,544 Germany . . . . . . . . . 76,329 Italy . . . . . . . . . . 21.263 158,449 64,483 18,692 24,500 25,443 7.088 24,500 5,482,509 266,124 1,599,886 201,641 1/ Included in total imports, column 2. Prepared in the Bureau of Customs• 1,441,152 158,449 75,807 18,692 22,747 14,796 12,853 ±7 TREASURY DEPARTMENT Washington IMMEDIATE RELEASE, Thursday. October 13. iQ«re H-932 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, 19$$, to September 30, 19$$, inclusive, as follows; Products of the Philippines Buttons Established Quota Quantity 850,000 Unit of Quantity Gross Imports as of Sept. 30, 1955 504,723 Cigars 200,000,000 Number Coconut Oil 448,000,000 Pound 106,408,677 Cordage 6,000,000 Pound 3,166,575 Rice 1,040,000 Pound - (Refined Sugars (Unrefined Tobacco 6,500,000 2,442,799 7,063,617 1,904,000,000 1,785,866,324 Pound 757,443 TREASURY DEPARTMENT Washington IMMEDIATE RELEASE, Thursday. October l^ r I Q ^ 45 H-932 The Bureau of Customs announced today preliminary figures showing the S P 0 ™ n t ° ' consumption of commodities on which quotas were prescribed by ^ Z ^ 1 1 ? 1 3 1 ? 6 T r a d e A c t o f 19k6' f r o m J a n u a r y !» 19SS, to September 30, 1955, inclusive, as follows? Products of the Philippines s Unit i —~ s Established Quota s of g Imports as of s Quantity s Quantity s Sept0 30, 1955 Buttons 850,000 Gross 504,723' Cigars 200,000,000 Number 2,442,799 Coconut Oil 448,000,000 Pound 106,408,677 Cordage 6,000,000 Pound 3,166,575 Rice .......... 1,040,000 Pound (Refined Sugars 1,904,000,000 7,063,617 Pound (Unrefined Tobacco .•••*..... 6,500,000 1,785,866,324 Pound 757,443 </7 -2- Unit: of : Imports as c Quantity : Sept. 30. Il Commodity Peanuts, whether shelled, not shelled, blanched, salted, prepared, or preserved (including roasted peanuts, but not in12 mos. from eluding peanut butter) Aug. 1, 1955 Peanut Oil 12 mos. from 1,709,000 Pound 730,960 * 80,000,000 Pound 4,356,256 27,225,000 275,000 Bushel Bushel 16,411,350 5,731 39,312,000 688,000 Bushel Bushel 15,688,624 687,834 July 1, 1955 Barley, hulled, unhulled, rolled, and ground barley, and barley Jaalt 12 mos. from Oct. 1, 1954 Canada Other Countries Oats, hulled and unhulled, and unhulled ground 12 months from Oct. 1, 1954 Canada Other Countries Rye, rye flour, and rye meal 12 mos. from July 1, 1955 Canada Other Countries * Imports through October 11, 1955. 182,280,000 3,720,000 Pound Pound 178,550,421* TREASURY DEPARTMENT Washington 4S IMMEDIATE RELEASE, Thursday, October 1 3 , 1955. H-933 The Bureau of Customs announced today preliminary figures showing the imports for consumption of the commodities listed below within quota limitations from the beginni^ of the quota periods to September 30, 1955, inclusive, as follows: Commodity Period and Quantity Unit : of : Imports as o, Quantity; Sent. "30T 1<? Whole milk, fresh or sour Calendar Year Cream Calendar Year 1,500,000 Gallon 639 Butter July 16, 1955 Oct. 31, 1955 5,000,000 3,000,000 Gallon Pound 4,091 106,361 Fish, fresh or frozen, filleted, etc., cod, haddock, hake, pollock, cusk, and rosefish Calendar Year 35,432,624 Pound Quota Filled ( White or Irish potatoes: Certified Seed ........ Other 12 mos. from 150,000,000 Pound Sept. 15, 1955 60,000,000 Pound 21,622 Cattle, less than 200 lbs. each ... 12 mos. from April 1, 1955 200,000 Head k,79$ Cattle, 700 lbs. or more each (other than dairy cows) July 1, 1955 Sept. 30, 1955 120,000 Head 3,785 Walnuts Calendar Year 5,000,000 Pound Quota Filled Almonds, shelled, blanched, roasted, 12 mos. from or otherwise prepared or preserved Oct. 1, 1954 5,000,000 Filberts, shelled (whether or not 12 mos. from blanched) Oct. 1, 1954 7,500,000 Pound 7,410,496 Alsike clover seed 12 mos. from July 1, 1955 Pound 1,841,725 2,500,000 Pound 1,493,153 (1) Imports for consumption at the quota rate are limited to 26,574^468 lbs. during the first nine months of the calendar year. (Continued) TREASURY DEPARTMENT Washington IMMEDIATE RELEASE, Thursday, October 13, 1955. H-933 The Bureau of Customs announced today preliminary figures showing the imports for onsumption of the commodities listed below within quota limitations from the beginning f the quota periods to September 30, 1955, inclusive, as follows: Commodity iole milk, fresh or sour ? Period and Quantity Calendar Year 3,000,000 Unit : of i Imports as of Quantity; Sept. 30. 1955 Gallon 4,091 'earn GO...<>... Calendar Year 1,500,000 Gallon 639 LwV6r eoo.ooeeos.ss.s.s. ........... uUly 10, lyPP — Oct. 31, 1955 .sh, fresh or frozen, filleted, itc, cod, haddock, hake, pol.ock, cusk, and rosefish .,. « . • e * Calendar Year dte or Irish potatoes: lertified Seed ..................... 12 mos. from ither .....••• Sept. 15, 1955 5,000,000 Pound 35,432,624 Pound 150,000,000 Pound 60,000,000 Pound 106,361 Quota Filled 21,622 ittle, less than 200 lbs. each .... 12 mos. from April 1, 1955 200,000 Head 4,795 ittle, 700 lbs. or more each • July 1, 1955 other than dairy cows) Sept. 30, 1955 120,000 Head 3,785 «LnUT>S e»»eeeooooe««o.»»»« •«...»•*« \j H.-L enCl aUL IQCUL 5,000,000 Pound Quota Filled monds, shelled, blanched, roasted, 12 mos. from r otherwise prepared or preserved Oct. 1, 1954 5,000,000 Pound 1,841,725 lberts, shelled (whether or not 12 mos. from lanched) Oct. 1, 1954 7,500,000 Pound 7,410,496 sike clover seed 12 mos. from July 1, 1955 2,500,000 Pound 1,493,153 (1) Imports for consumption at the quota rate are limited to 26,574,468 lbs. during the first nine months of the calendar year. (Continued) - 2 - Unit : of : Imports as of Quantity : Sept. 30^ iggc Commodity Peanuts, whether shelled, not shelled, blanched, salted, prepared, or preserved (including roasted peanuts, but not including peanut butter) ....... Peanut Oil « « 0 e a « o 12 mos. from Aug. 1, 1955 12 mos. from July 1, 1955 1,709,000 Pound 730,960 * 80,000,000 Pound 4,356,256 Barley, hulled, unhulled, rolled, and ground barley, and barley maxw .•..««.....•...•«»..«.*.... 12 mos. from Oct. l, 1954 Canada Other Countries Oats, hulled and unhulled, and unhulled ground Bushel Bushel 16,411,350 5,731 39,312,000 688,000 Bushel Bushel 15,688,624 687,834 182,280,000 3,720,000 Pound Pound 178,550,421* 12 months from Oct. 1, 1954 Canada Other Countries Rye, rye flour, and rye meal 27,225,000 275,000 12 mos. from July 1, 1955 Canada Other Countries * Imports through October 11, 1955. TREASURY DEPARTMENT Washington 49 IMMEDIATE RELEASE, Thursday, October 13, 1955. H-934 The Bureau of Customs announced today preliminary figures showing the quantities of wheat and wheat flour 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, 1955> a s follows: Wheat Country of Origin Imports Established ~: Quota ;May 29, 1955, to Oct. 11, 1955 (Bushels) (Bushels J Canada 1795,000 '95,000 China Hungary — Hong Kong — Japan United Kingdom 100 — Australia Germany 100 Syria *100 — New Zealand Chile Netherlands 100 Argentina 2,000 Italy 100 Cuba 1,000 France Greece Mexico 100 — Panama — Uruguay — Poland and Danzig — Sweden — Yugoslavia — Norway "* Canary Islands Rumania 1,000 Guatemala 100 100 Brazil Union of Soviet Socialist Republics 100 100 Belgium Wheat flour, semolina, crushed or cracked wheat, and similar wheat products Established s Imports Quota j May 29, 1955, : to Oct. 11, 19fl (Pounds) (Pounds) 3,815,000 24,000 13,000 13,000 8,000 75,000 1,000 5,000 5,000 1,000 1,000 1,000 14,000 2,000 12,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 3,815,000 1,000 TREASURY DEPARTMENT Washington IMMEDIATE RELEASE, Thursday, October 13 1955. 50 H-934 The Bureau of Customs announced today preliminary figures showing the quantities of wheat and wheat flour entered, or withdrawn from warehouse, for consumption under the import quotas established in the President's proclamation of May 28, 191*1, as modified by the President's proclamation of April 13, 1942, for the 12 months commencing May 29, 1955, as follows: Wheat Country of Origin Established s Imports Quota sMay 29, 1955, to sOct. 11, 1955 (Bushels) (Bushels) Canada 795,000 China Hungary Hong Kong Japan United Kingdom 100 Australia Germany 100 Syria * 100 New Zealand Chile Netherlands 100 Argentina 2,000 Italy 100 Cuba France 1,000 Greece Mexico 100 Panama Uruguay Poland and Danzig Sweden Yugoslavia Norway Canary Islands Rumania 1,000 Guatemala 100 Brazil 100 Union of Soviet Socialist Republics 100 Belgium 100 795,000 Wheat flour, semolina, crushed or cracked wheat, and similar wheat products Imports Established s Quota i May 29, 1955, t to Oct. 11, 1955 (Pounds) (Pounds) 3,815,000 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 1,000 2,000 12,000 1,000 1,000 1^000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 accrue in the future under our Joint Accounting Improvement Program from the point of view of application of electronic data processing techniques in other areas for the achievemem of economy and greater efficiency in Government operations." - 3Conversion of check processing to the new system will require a year, according to present estimates. One step expected to be taken will be the complete elimination of paper checks, with punch card checks of a new type used exclusively. Elimination of paper checks will make possible the expected economies in the Federal Reserve banks, where at present these checks have to be proved, sorted, listed and microfilmed by account. Within the next 18 months, it is expected that use of the machines will reduce to approximately 300 the number of employees in the Treasury and General Accounting Office required to perform the necessary data-processing operations. The present, procedures which will be outmoded require about 750 employees. ***k*^jL Every effort will be made to utilize^elsewhere in the Government service those employees who will be affected by the changeover, whenever they are qualified and competent to fill available vacancies. The Comptroller General, in expressing his approval of the new undertaking, stated/ in parti ^famt"'^riiP^inBr ?m tntti e^iomplo or-rfaow «kmtypeimsuTVW~&i I believe afeve that in addition to the direct benefits and savings which these procedures will bring about in the check payment and reconciliation area very substantial benefits will Zl The new system will involve only minor changes m l , ^ * ^ ! Govern, checks. So-called "data processing^ by the electronic machines will pro - 2 most of the economies^ h^L4^^J^C^*-i *u*A tu*£vte**^L >&y rend< rendering unnecessary c o s t l y A « « W procedure! now followed , | M MI, ,,, _ ,-HBH 1 im-—i •—' ' ^ by the Office of the Treasurer of the United States and the General Accounting Office in paying checks and verifiying them. At present, when a disbursing agency issues a check, the details are reported to the Comptroller General, who sets up his own record. When the elieck is paid by the Treasury, it is sent to the Comptroller General for verification against the issue record. With hundreds of millions of checks to be handled each year, these procedures require the services of hundreds of employees. Under the new system, facts concerning each check issued, such as the serial number and the amount, will be "fed" into one of the electronic machines. When the check comes back to the Treasurer of the United States for payment, it will go through the machine, and will be either verified or thrown out as Incorrect. by the machines. About 1,500,000 checks a day will be handled Tk^^^am^J^ the in discharging v/aw * '*« m*i****ifr^<*™**&*a*<***mf**mv®^^ s our Bing~"orr i c er s will ,n^longe.ri ,J^ag^si&@#f & - The machines will also provide information at any time on checks still outstanding. This will simplify the reconciliation of the accounts of disbursing officers. Insert Page 1 V ( u^\ Secretary Humphrey and M r . Campbell called the m o v e " an outstanding example of how agencies of the Government can work together in whole-hearted cooperation to bring about savings in the cost of conducting the Government" . High speed electronic machines to process payment of 350,000,000 cnecks a year will save about ^1-3/4 million in cost annually according to announcement today by Treasury Secretary Humphrey, Comptroller General Campbell, and Budget Director Hughes. The electronic machines capable of accurately "remembering" facts and figures will be installed in Treasury, and in addition to processing the payment of checks will be used to reconcile the checks after payment. In addition to the direct savings of $1-3/4 million, the new system will make possible decreased expenditures by the Federal Reserve System thus providing an increase to the Treasury of possibly $5^0,000 or more a year from Federal Reserve System earnings. Decision to install the new equipment followed two years' study by the Treasury, General Accounting Office, and the Bureau of the Budget. It is the latest of many steps taken in recent years to reduce costs by improving the Governments accounting .A procedures. /\ ^ $ In making the announcement Secretary Humphrey and Mr. Campbell also stressed tha£ the two agencies would make every effort to help those displaced find other employment. "It is hoped that much of the personnel reduction over the next eighteen months will be taken care of by transfers in filling vacancies which occur in the normal turnover of government agencies. However, the government will do anything else in its power to help other employees affected find suitable employment", Humphrey and Campbell said. TREASURY DEPARTMENT 57 WASHINGTON, D.C. IMMEDIATE RELEASE Friday, ., October 14, 1955. H-935 High speed electronic machines to process payment of 350,000,000 checks a year will save about $1-3/4 million in cost annually according to announcement today by Treasury Secretary Humphrey, Comptroller General Campbell, and Budget Director Hughes. The electronic machines capable of accurately "remembering" facts and figures will be installed in Treasury, and in addition to processing the payment of checks will be used to reconcile the checks, after payment. In addition to the direct savings of $1-3/4 million, the new system will make possible decreased expenditures by the Federal Reserve System thus providing an increase to the Treasury of possibly $500,000 or more a year from Federal Reserve System earnings. Decision to Install the new equipment followed two years' study by the Treasury, General Accounting Office, and the Bureau of the Budget. It is the latest of many steps taken in recent years to reduce costs by improving the Government's accounting procedures. Secretary Humphrey and Mr. Campbell called the move "an outstanding example of how agencies of the Government can work together in whole-hearted cooperation to bring about savings in the cost of conducting the Government." In making the announcement Secretary Humphrey and Mr. Campbell also stressed that the two agencies would make every effort to help those displaced find other employment. "It is hoped that much of the personnel reduction over the next eighteen months will be taken care of by transfers in filling vacancies which occur in the normal turnover of government agencies. However, the Government will do anything else in its power to help other employees affected find suitable employment," Humphrey and Campbell said. The new system will involve only minor changes in the issuance of Government checks. So-called "data processing" by the electronic machines will produce most of the economies by rendering unnecessary costly recording and auditing procedures now followed by the Office of the Treasurer of the United States and the General Accounting Office in paying checks and verifying them. - 2At present, when a disbursing agency issues a check, the details are reported to the Comptroller General, who sets up his own record. When the check is paid by the Treasury, it is sent to the Comptroller General for verification against the issue record. With hundreds of millions of checks to be handled each year, these procedures require the services of hundreds of employees. Under the new system, facts concerning each check issued, such as the serial number and the amount, will be "fed" into one of the electronic machines. When the check comes back to the Treasurer of the United States for payment, it will go through the machine, and will be either verified or thrown out as incorrect. About 1,500,000 checks a day will be handled by the machines. The machines will also provide information at any time on checks still outstanding. This will simplify the reconciliation of the accounts of disbursing officers. Conversion of check processing to the new system will require a year, according to present estimates. One step expected to be taken will be the complete elimination of paper checks, with punch card checks of a new type used exclusively. Elimination of paper checks will make possible the expected economies in the Federal Reserve banks, where at present these checks have to be proved, sorted, listed and microfilmed by account. Within the next 18 months, it is expected that use of the machines will reduce to approximately 300 the number of employees in the Treasury and General Accounting Office required to perform the necessary data-processing operations. The present procedures which will be outmoded require about 750 employees. Every effort will be made to utilize in needed positions elsewhere in the Government service those employees who will be affected by the changeover, whenever they are qualified and competent to fill available vacancies. The Comptroller General, in expressing his approval of the new undertaking, stated in part: "I believe that in addition to the direct benefits and savings which these procedures will bring about in the check payment and reconciliation area very substantial benefits will accrue in the future under our Joint Accounting Improvement Program from the point of view of application of electronic data processing techniques in other areas for the achievement of economy and greater efficiency in Government oOo operations." ^..•.UiCDua TO. i, umm L. worn the following trimgaetioii* were m^m in direst and guaranteed securities of the CfeveKsseiit for $rmmwty Jjwst&eiits and other aeeounts earing the month &$ September, 19$$% ^^^ 111,81*8,000.00 SalSS 27,500*00 f11,820.gOQ, 0 ^ V ©lief, Iavestaeiit® Branch Division of Deposits and Invesisenta O TREASURY DEPARTMENT WASHINGTON, D.C. IMMEDIATE RELEASE, gftui jaaK'*S^|JtUiiilJLl lp, lQfrjw During MgBB&c 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 A — ^'',' oOo TREASURY DEPARTMENT 59 WASHINGTON, D.C. IMMEDIATE RELEASE, Monday, October 17, 1955. H-936 During September 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 $11,820,500. 0O0 Jw*w^~ inL^A^ &a^ n, >* Following is the text of a statement issued by Treasury Secretary Humphrey at Denver following his consultation with President Eisenhower on Saturday, October 15: / "I had a good visit with the President and found / him in fine spirits and keenly interested in affairs of the day. ___ ^ - "Just before the President became ill, I had planned to come to Denver to report to him on the annual meetings of the International Bank and the Monetary Fund in Istanbul, Turkey, from which I had just then returned. I have now heen able to make that report which was postponed on account of the President's illness. "I told the President that we received reports of high prosperity from nearly all of the more than fifty free world nations represented at the Istanbul meetings. Representatives of some countries with whom we talked spoke of the reappearance of inflationary pressures in their countries. It is reassuring that the financial advisers of so many nations of the free world are aware of the dangers of possible excesses and pressures toward inflation which can accompany high prosperity. If these are not curbed, they can lay the foundations for reaction and the difficulties of a deflation that we would all deplore, "Here in the United States we are breaking all records in the number of people with jobs, the high wages they are receiving, and in the production of goods for people to enjoy. This prosperity is shared less in agriculture where the disposal of large surpluses has created situations we are earnestly seeking to Improve. The great majority of Americans, however, are enjoying high prosperity while successfully resisting pressures toward inflation. The productive capacity of our country is so great that normal competitive conditions with our present high level of production should continue to keep prices relatively stable even with very high consumer demand. "I assured the President that we in the Administration will continue to carry out his firmly established policies and programs. If all Americans — workers, producers, consumers, businessmen and investors — go ahead with confidence ^.,^f1 will for tempered duction, all continue the with and. people wages, prudence, to enjoy asand time new there increasingly peaks goes ison." of every prosperity higher reasonstandards why in jobs, this of Nation proliving TREASURY DEPARTMENT MEMORANDUM TO THE PRESS: 62 WASHINGTON, D.C. October 17, 1955 Following is the text of a statement issued by Treasury Secretary Humphrey at Denver following his consultation with President Eisenhower on Saturday, October 15*. "I had a good visit with the President and found him in fine spirits and keenly interested in affairs of the day. "Just before the President became ill, I had planned to come to Denver to report to him on the annual meetings of the International Bank and the Monetary Fund in Istanbul, Turkey, from which I had just then returned. I have now been able to make that report which was postponed on account of the Presidents illness. "I told the President that we received reports of high prosperity from nearly all of the more than fifty free world nations represented at the Istanbul meetings. Representatives of some countries with whom we talked spoke of the reappearance of inflationary pressures in their countries. It is reassuring that the financial advisers of so many nations of the free world are aware of the dangers of possible excesses and pressures toward inflation which can accompany high prosperity. If these are not curbed, they can lay the foundations for reaction and the difficulties of a deflation that we would all deplore. "Here in the United States we are breaking all records in the number of people with jobs, the high wages they are receiving, and in the production of goods for people to enjoy. This prosperity is shared less in agriculture where the disposal of large surpluses has created situations we are earnestly seeking to improve. The great majority of Americans, however, are enjoying high prosperity while successfully resisting pressures toward inflation. The productive capacity of our country is so great that normal competitive conditions with our present high level of production should continue to keep prices relatively stable even with very high consumer demand. "I assured the President that we in the Administration will continue to carry out his firmly established policies and programs. If all Americans -- workers, producers, consumers, businessmen and investors --go ahead with confidence tempered with prudence, there is every reason why thisin of H-937 production, Nation living will for all and continue the wages, people toand enjoy as increasingly time new peaks goes on." higher of prosperity standards jobs, 62 iEI^ASl MORNIMG ^WSPAPEES, Tuesday, October 18, 19$$. U/O / The Treasury Bepartisa&t annoumed last awning that the teMers for 11,600,000,000 or thereabouts, of 91-day Treasury Mils to be dated October 20, 19$$, and to datu January 19, 1956, which were offered on October 13, were opened at the Federal Ke Banks oa October 17, The details of this issiue are as £ollowsj total applied for - |2,kQ$,91$*OQQ total accepted - 1,600,96*3,000 Average price (inelades 1^0,^2,000 entered oa & nom<m$et±t±Ye basis and accepted Is full at the average price shown belo*) - 99.klQf Is^aifaiesi; rate of discouat approx. 2.3335* per aswm laa§e of accepted competitive bides (Sxcepting oae teader of #500,000) High Low - 99.k3k Equivalent rat© of discount aDurox. 2+239% per - 99*k07 • • • « * « 2»3li6£ • • (28 percent of the amount bid for at the low price was accepted) Federal leserve District Total Applied for fotsl Accepted Boston lew lork Philadelphia Sievelaid Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas Saa Francis©© 1 # 26,839,000 1,708,1*05,000 3k, 519,000 71,869,000 15,623,000 28^,679,000 3*1,252,000 11,390,000 32,962,000 1*1,521,000 101,686,000 21,639,000 1,056,105,000 19,519,000 67,869,000 14,763,000 36,728,000 19k,919,000 30,812,000 11,190,00) 29,962,000 26,021,000 91,256,000 f2,!*Q5,915,000 11,600,983,000 W,i6a,ooo TOTAL rx \ TREASURY DEPARTMENT WASHINGTON, D.C. RELEASE MORNING NEWSPAPERS, Tuesday, October 18, 1955. H-938 The Treasury Department announced last evening that the tenders for $1,600,000,000, or thereabouts, of 91-day Treasury bills to be dated October 20, 1955, and to mature January 19, 1956, which were offered on October 13, were opened at the Federal Reserve Banks on October 17. The details of this issue are as follows: Total applied for - $2,4(35,915,000 Total accepted - 1,600,983,000 (includes $260,942,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Average price - 99.410/ Equivalent rate of discount approx. 2.333$ per annum Range of accepted competitive bids: (Excepting one tender of $500,000) High - 99.434 Equivalent rate of discount approx. 2.239$ per annum Low - 99.407 Equivalent rate of discount approx. 2.346^ per annum (28 percent of the amount bid for at the low price was accepted) Federal Reserve District Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco TOTAL Total Applied for Total Accepted $ 26,839,000 1,708,405,000 34,519,000 71,869,000 15,623,000 42,168,000 284,679,000 34,252,000 11,390,000 32,962,000 41,521,000 101,688,000 $ 21,839,000 1,056,105,000 19,519,000 67,869,000 14,763,000 36,728,000 194,919,000 30,812,000 11,190,000 29,962,000 26,021,000 91,256,000 $2,405,915,000 $1,600,983,000 0O0 - 3tWXk rC or by any local taxing authority. For purposes of taxation the amount of discou at which Treasury bills are originally sold by the United States is considered be interest. Under Sections 454 (b) and 1221 {$) 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 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. Copie of the circular may be obtained from any Federal Reserve Bank or Branch, - 2 Cg 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 October 27. 1955 , in cash or other immediately available funds or in a like face amount of Treasury bills maturing October 27, 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 to 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 UHKXKXKXX TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Thursday. October 20, 1955 • S5 The Treasury Department, by this public notice, invites tenders for $1.600.000,000 , or thereabouts, of 91 -day Treasury bills, for cash and —w m October 27. 1955 $ l n the amount of gogc $ 1.601.235*000 , "to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be in exchange for Treasury bills maturing dated October 27. 1955 , and will mature January 26, 1956 , 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 one-thirty closing hour,/tatt ofclock p.m., Eastern Standard time, Monday. October 24. 1955 .« Tenders will not be received at the Treasury Department, Washington. Each tende must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than thr decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received 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 go TREASURY DEPARTMENT WASHINGTON, D.C. RELEASE MORNING NEW ''APERS, Thursday, October 2u, 1955. H-939 The Treasury Department, by this public notice, invites tenders for $1,600,000,000, or thereabouts, of 91-day Treasury bills, for cash and in exchange for Treasury bills maturing October 27, 1955, in the amount of $1,601,235,000, to be issued on a discount basxs under competitive and non-competitive bidding as hereinafter provided. The bills of this series will be dated October 27, 1955, and will mature January 26, 1956, 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,one-thirty o'clock p.m., Eastern Standard time, Monday, October 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 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 rime 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 4200 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 October 27, 1955, in cash or other immediately available funds or in a like face amount of Treasury bills maturing October 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 sue 1, 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 blll3 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 conbidered 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 13 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. 69 t M M m y &$*»**•{? maaphrey %&4&$ m% mim fcte mmmmtom WmiM^X Xftbor ^wtsovy Omimittm *qp**»*riiftfc la&@r siiO^iS *hlol mm join*** with t M trtttmr? i» s^fcl;,£ IfMHNMfcMrt t* %*» imi« 0 f t?^it#d afcai#<s awing* Umm% jiu^ar#y la.st m^nnt*, At tag*? 4 * *«>ri£er*nc# nl&m im out tiiis i/i«?dge w»m 4 £ * M M N M U mm mmittmm of tfc* « N M M & * * « * at%#tiit&ii§ *«&&?'» eoantf^iitt wmm .^p»rl&ai-s M t a m H * ? * *r l*fc*r — *Utta» F* S*li«ii.fcgi#tv iim j§^§«§iirfitj- c&tgpt** fur fcritetvifti" Qr^a*tiJ»^i*iyi —• to i^^^^»f^it^^g«^l ttait&i Hi;,# ttefen* *f ^riea ~~ iSim § « * » % ^ N ^ ^ ^ r ^ ^ ^ i ^ m r i difea a. Mates. mmimm% t© w*# "pMilMi, I MttamtMiCfwtt « u n m **» ^ ftaii^ Lab.*;- £***«*&*•* 4#^0e4mtS0a ~~ Jr*ma^-£f^JaaA0&.# 4 lUBUsn A, *-. ty**** exo^utlve a***eta*v # ?:;e ath«*t # t4u€fid«m* *f TREASURY DEPARTMENT WASHINGTON, D.C. IMMEDIATE RELEASE, Wednesday, October 19, 1955. H-940 Treasury Secretary Humphrey today met with the reorganized National Labor Advisory Committee representing labor unions which have joined with the the Treasury in seeking increased labor support of the sale of United States Savings Bonds. The national labor leaders pledged continued and Increased support to the savings Bonds Program at an earlier meeting with Secretary Humphrey last August. At today's conference plans for carrying out this pledge were discussed. Members of the committee attending today's conference were American Federation of Labor -- William F. Schnitzler, secretary-treasurer, and George T. Brown, economist, office of the president; Congress for Industrial Organizations -- George L. P. Weaver, assistant to the secretary-treasurer; United Mine Workers of America -John Owens, secretary-treasurer, John J. Mates, assistant to the president, and Elwood Moffett, district No. 50; Railway Labor Executives Association — A. E. Lyon, executive secretary. oOo - 14 - 71 with which our Goverxmeatal %&®%ms can aeeoas&ish a given reetalt; th© degree to which each anst drain its owa ecoaawy to •w»oAueti a given quantity of yawea ani iffQM»t 'te Q*TWM*4 »a %Mm tfranaggLc. X have no fear of-*** outcome, for the advantage we hold, hoth materially &a& morally, are js&ay and reat. #B*r to the extent we ca&> improve the efficiency j^k^aBidWrtir aoverniaeatal machine by so mch do we strengthen ourselves for this 3mg contest^ Al &**J*^ AyU4 dZtt^rtuUs fa (U*j^*t\&^Ji ^ $ - is - 72 incapsftle of feeing applied across tfit® Hoard, It is being spread to soae extent sad eaa be ^mi t®& sore vidaly tJaroaghomt Govaraiiest; and 1 am sure that-the Hoover report arill aaka.aa iamltial&* contribution to taa* ezuu fhe inaediata reason wly this whole stifejeet ig of vital iaterest to m is of course tha ofevioue oae^ 4s»-4ii#»®«*f'"«#i iataasive seareh for nor© ecoaoaies ia OoversaeBt wnA <Vhmam§m ways- of reduciag the tax tardea oa tfoewnHMiiiiBwpi^wai the people. Bit there is a longer-range reason of ©ven ^reaver ijaportanee. We are ia a vorl*-vld* contest with aaothar m& of life, fhis contest goet forwards with a& eaphaels that varies fro® tiae to time, oa every plaa/of haaaa endeavor* fhe free vorld is Hatching itself a^aiat* tha CoiaSHLAist world ia tha development of military power, and of economic pewer as well; w© are competing against each other la the sphare of aoral value® &ad for tha ala&s s.M, spiritual allegiance of all mankind. Important in this fnr-flung competition is the relative efflcltiuqMV& - 13 - 73 How iaportant this area of saving my fee for the future is perhaps illustrated fey seme experiences we have had in the freasnary Bepartaaaf. We hata feeem hard at tferk throughout the Department to perfora our operations more eeonesieallys how hard appears f~-.» the faet that we eaplejptd nearly 88 thousand civilians in January, 1953, and eaplef afeont ?9JH& now, a redaction of 2i6lv Ik the Dqpartaeitft we have twe/tapeans ^E& operations taws, are almost exactly analogous to those of private business. fhe Bureau of -fogrsrlng and Printing is a felg hank 0UAAAM, *j,X* aote company that prints feills, staaps *a& securities; and the Mint is a setal rolling and ataapi&g operation isisere the coins are aad«« ISiese two Bureaus have eaeh redueed their eaj&oyaent fef 3§$ in the se&e period, Ssjsstoasiaasa* the Bepartneatal average Vy ffjp'frdBafta and •saooeia the aej.t largest redaction RJF-IS pe»€sata@fl pointofc ^<, **^f &/*>*** ^ du^jj* Of course, there are aangreae^laaaHony vhy these two buginesa-typa operations should have shown the largest reductions; feut I as convinced that a major factor was the afelllty to follow closely the business analogy of a^iiiMa qg coat control. While this pattern is doubtless &ry^£A^u^ ***-« U~ "hS, W^mAXA^^uJ -d#U*M ** *La£je ' the satisfactoryperformance of its personnel. In'the-'afesenee of »©& a criterion,'the natural pressurea are 'ait'in taa': other direction? * -to get there fastest vita the aoitast9" to :fee sure "you have- enough people and material to do the assigned jofe; eves, and less creditafely,''t@'vfeuild a little empire," In fact, 'the whole wmmM'geaeratad fey apprapriattoaoriented accounting is to the 'saaa effect; there is a widespread theory, with which'you'are all acquainted, that t&© feast iiay;:'to Justify youraext year's need is'to spend all of: this year** appropriation. finally, it is'aaeieaaile'in feusi&ass mat good east'• aeeeu&tiig and cost estimating is Vprlaary aa&" vital tool-of 'good- asaagaaeat planning. ffta afe'sence of "it tends' to hamper nuicfc and final decision aakimg a» 'fee -'flM**^— i>rofele©s arise, and"to crowd' aa% those -deMs'ldas'into theferiefperiod when the Jttsaa> feadget decisions are feeing ua&M*« ,: "'W-w^ T^*^ ^*$ " A goo&^kesl ox progress aai' feeen made la certain areas of th» Government under the joint accounting program launched 'fey the Budget"*51 and Accounting' Act' of 1993, particularlygovernment carperati'ms and other areas where the "operations TaaaaaW thovfr of the ordinary feuslaes-s activity. ^eaauae the accountiiig ayst«R*"%siisr ***W/fe4 oa ofeli^Uoaal «&tk*ri%Fk iw-m^^sm^t^m^^^^mHkt. w *ttF exas^l©, tha eoama?ttea af an inventory of ,;...t-.,-i ,. acquired fro© a prior year*a appropriation would frequently Ml U 1. reflested^ ^ *jR*-J^ ^^ '*k> * **"^)» A see**& conserraenca is that feeeJiwref the length of time it tales* /• SIM the executive ferenah to sake up it*s appropriation requests aad the length ef;.tiaa It takes Ooagraas to revise aad enact thaa^ fepiftaHy the haste data is foartee/aoatha old ajr the beginning of the fiac&l y®&? Qwozok fey the appropriation*, wosk fcopft la ilay, 1954, on thafeadgetfm fisejO. iJMaV^icl, went later etfleat oa «faiy «faly 1, 1955 inter etfgeat period, v* **»»' ^Qiwuia^ £wi,i M ^ . «<-*i *"V h^ <t+, /fJ^ A third consequence is that, having in wide areas a© ourrent data as to tha factual cost of operating a probata, it la hard for the Goveraaant to malts© cost redaction a eritoriott of • 7ft •• ftiaatir in tha movent {peer* # f t » : « * » * ejp '•eattet 9 * 9 MCUaflaff:''aa*1#'aapeaaiB** oa dtpartiaeat m activity Intel**** naef *§r 'or - war aa* aa*N» a «lo*e relation t^ tha oatt ef ojseratioa- la the ea*fta* *»**% Hi - a: ^epartaeat lite th* Sreaattry. ^mm Amm% the entire ««i*Sji« eeat it payroll, it hat a ela** relatlettt la tt* Safe*** Seportstaut, tlMe* a lar^ fr&fsiisn oritur c*«t it hem Inaa*aiae> jmeajfteaaJt* tha *e1*M<ea44» Is ieaea a t m »c*%#. **** ms0&lm$m *t H d s fe*le* I* fanlevtet % Hat f*V> -3 CUM etiafceneat te Hat :rap«rt that at - ISett yea** JJrttlwr IU«ttxattos in' thi fm% toe-i * § n this AfteiBit^tleii toe* emoe* «ae eair^Mifver or pfmnaam^ «8?s»raaraAted eat aaa^eafted twin *n# 'anafiy let) M31ioiu As ta* H@@vW reports antae' <&*nv» tnavt as* mi^ edus^^jsc^s 'that xlw 'ftrav mimm®$ ^mmmmm mm®Mm UmeHL. ej^ffeprlation* rattier than tenswl aatunl anefatlag fteatst Wm ma tltia*. ** *» irn^anatHy Vety dlifiealt ta *»t a« a®«mte plfttafa of ta* aaanal eant at eae«ail«i asi a®i*^r «r a pa«ti«alar aro^aa* -«- 77 ^^mmmmm^msU fee iapo^siUe in ^ -ti^ avaliaal* to all the Sioaw Oeasiaaloa jreaemmna)M*U*£,1** f weald like ta point to tt aaaa te open vis^s -~ and ay tale X eo*% of t®j,iaply anything one .way or another e£,fraaam*y oj^Adaiaistratiea GXidorseneat of the proposals as a wani* or .la. their details. ^ ,,*^ ^aoa^andatloaa aoafeers H ^*& 7 are as follow&t ffeat exeoutlv* agency budgets fee formulated and adaiaiet^ad an a oost feaatev torn y^.„f executive ana&&t ana soii^r#ssa©iiax appropriations &# in tense of eetlaaieeV anneal accrued esspendttures, aaaely, charges for the east of goods and services eatiaated ta fee received. ?e ,;-et $ae mix mgasxteanee of taeee proposals, it la important to understand the degree to ^hieh federsl figure werk Is dominated tgr --uid oriented taward the ofetainln^ of Coagresiiomi appropriations, faese appropriations are authorisations to taa'^jeeouUtre fr^nch te spend money « ?fait prfnaiple it an IK f&* £K&AM-J IM -«/" ^4J^ *-v pu^ h ftuM ***y M^JL likelihood of a reduction of of ear natltatel far lang en finding wnyg of doing; what m am* te da aora It in the of its task force oa tale is a ht#&y technical saejaat, that a sjMa tsatiutri feat far interesting ntatelf in it ntnam the pes?ifele ultimate saving at H felUian a „ „ Of course, 1 peraaaaily la this «ar this tt®m*t hat the *>M. "%& $± feat that it is pat forward fey a taeic force of the of thin la eacju^h ta attention* - 6- 79 for any tax eat to fee a real eat must reflect surplus revenues. If it sistply adds to a deficit and therefore to the dafet, it Is a aere postponement te a future day and generation of the tax that levied to pay lew *}£+* $SS*4feillioa^eitl*,as I have said, tha real of eliminating ey< — * /U •PH&6-&* <*f»» wmrt mJawSl * J- ?'-7 <•!£"**•• . that tpread ia the awnmrn Teu all know, at course, wh&t makes that tank so difficult. Appsmiiaately #40 billion ot budget e%emditure* are for dafemse purposes, and a hi^h proportion of tha remainder are far things .like interest, veterans benefits, and the fam program, which are sdiolly or relatively aneontrollafeie. It is a slow and hard jofe, therefore, to find furrier savings viWout iiip&irlac essential activities, mi^.^ hfrft ^a&4*»^£~^i^#e^&(aa^^ I aheuld like to emphasise that defense pragraas fee out to put the budget in fe&laice. Mkaaa pr ogr©ia|*4iaaja> hare feeen determin fey the Secretary of Defense tm&feythe ^reaideat tofeeessential to our security* come first. Our hooe is, <?md we still entertain It, that fey ale^e and aayaaittiag control, fey the elimination of waste wherever found. / n * ' ( m 4 4 . *-***1 we can still save enough to - 4- 81 year. And as savings cane in sight, tax redactions were effectuated. But in that first spring of 1953, when the process of putting our financial house in order was just feegianing, yoa will recall that the major tax event was a six-faonths extension of the excess-profits tax. Much as it opposed the form ?nd sufestance of this, the Administration sueeessfully fought its expiration until the inflationary pressures had feeen ferou#t under feetter control and the feudgetary deficit had feeen ••¥* substantially narrowed. > Oprlug !tT 1904; ant Ispieaul mm fhis tiae had arrived fey the 'SpHaa fef 1904; "ant tiPienuJ jji/ the ' Adainistration reflected the expenditure reductions in a tax eat of |7. distrifeuted aaeng the exeess protits tax, the individual income tax, various excise taxes, and the major tax revision bill that feeeaae effective that year. And go we have come fey hard and intensive work on all froata froa the Budgetary and tax position of January, 19S3/5where ear expeaditurea were estimated at #78 feillion and our revenue at $68 feillioa, to the present situation of an estimated outgo of $e£t# feillioa and revenue of 1~ *- "3" 82 -., >areathetieallyi 1 night say that*this efcreaaetaaae of the shortness of human aeaory ma-emphatically fereu^t-Jsaan to us the ,©thef,-day:,whan;. Secretary'Honphrey''referred in a speech that be made % in --Chicago-, to the that''baa of*the "controversial early-step®-, taken-fey this Administration w to ellainate'prlee aat*iaga; controls*-%Shis momentarily generated a.eeriout argaeent'aa^oag- the newspaper reporters who*were covering the speech, seae of iiihoa'were sure -that'-tanee controls had feeen lifted.feefnre we arrived -%^''*leturning therefore to the situation of Jnaaarjr* 1953, we were faced. with a budget that had Just"gene no 'vnngrees proposing ?aa expenditure level of $78 feillioa aad$a deficit ef-nearly-$LQ billion. lr$ca - infXation«0jseaa dace 1939jTmd 'cut the "purchasing pe«#»of the. dollar to §2 eeaSs, l#*#'^ra^^ .the Trafelic tefet^ to© much of which had been allowed to dr4ft into short tern securities, was fmmmh$^M^m^m the m® eUliaa eeUing. ^f ^**t itm la''this' situation, vigorous action;wnn taken*ia many directions.* •fan7 proposed : budget 'of if?*' billion was pared to $?4 and then still farther la succeeding years to the presenfe*w*laetn-*g;$••*» .far the, current fiscal - apossibility of somewhat hl^er revenues than we antiolmtad.feeeaana of the continuation of the good tines that we are now, enjoying., We are opposed to a tax cut until we can see where we will get the aoaey .to flaaaee it. This does not mean that we have to wait.until, the money is actually in hand, feat it wist fee clearly in si^ht. When that time cones, we shall suaaort a tax cut. But until that tine comes, It is idle to speculate on the form that it might take, because you cannot intelligently consider how nest e%ultafely to distribute tax relief before yam have some idea how anch there might fee to distribute. While, m I said at the outset, there is nothing very startling about that position, it is entirely consistent with the tax policy that the,,- lisenhower Administration has followed since it took offlae la January, 19S3 The present highly prosperous condition of the', economy may fairly be said, to have resulted in sane measure *ns>saassat, froa the. success of the fiscal and tax policies that have been followed since that tine; and it Is worthwhile, thereforet to review^their aajor outlines as a guide for the future, because the nemory of wpt&mmamm la «e short. 84 there is a certain frustration these days In emerging - from the freasury Building to aake a speech, especially feefore an audienee concerned with taxes — and, in fast, feefore any audience whatever, oeeaaajLall audiences are concerned with tu«ar these &ayi|t The frustration arises from the fact that what everyone wants to hear is a. speech atiaut the outlook for tax yreduction! and there is nothing very startling to fee said on that subject at this time. In his press conference in Dmsv^r after he had seen the President last sver^esay V Secretary Huraphrey and •"te-1 answer m a y quest! oas on this subject, framed with all the ingenuity we have come to expect froia the Washington press corps. What he said in effect was this: We hope to balance the fendget in the current fiscal year ending next .June 30. Despite the deficit of 11.7 billion indicated fey our August estimates, we hops to achieve this result in Wo ways? First, fey continued and Intensive search for savings la the executive Branch — and ^dthout reducing the programs of the Befense Department, which are giving us the strongest military posture in our peacetime history; and second, froa the 0-i Address Isy IW€4,4% £ CHAPMaN ROSE ; asr mam-ams feefore ^Voiht liuncheon o£. THS NATIOML EAX COB3EBSBCE and ."sA 2H3 D^ROIT BtaB 01 COMMERCE &f /£4*W >>%»*' | y -•*•* * ? • .// y : ^12.00 W n ^ 0 /| A October 21, 1955 jyf fW^t-i,- 31 TREASURY DEPARTMENT Washington Address by Under Secretary H. Chapman Rose before a joint luncheon of The National Tax Conference and The Detroit Board of Commerce at the Statler Hotel, Detroit, Michigan, 12:00 o'clock noon, EST, Friday, October 21, 1955. There is a certain frustration these days in emerging from the Treasury Building to make a speech, especially before an audience concerned with taxes — and, In fact, before any audience whatever, because in these days all audiences are concerned with taxes. The frustration arises from the fact that what everyone wants to hear is a speech about the outlook for tax reduction, and that there is nothing very startling to be said on that subject at this time. In his press conference in Denver after he had seen the President last Saturday, Secretary Humphrey answered many questions on this subject, framed with all the ingenuity we have come to expect from the Washington press corps. What he said in effect was this: We hope to balance the budget in the current fiscal year ending next June 30. Despite the deficit of $1.7 billion indicated by our August estimates, we hope to achieve this result in two ways: First, by continued and intensive search for savings in the Executive Branch -- and without reducing the programs of the Defense Department, which are giving us the strongest military posture in our peacetime history; and second, from the possibility of somewhat higher revenues than we anticipated, because of the continuation of the good times that we are now enjoying. We are opposed to a tax cut until we can see where we will get the money to finance it. This does not mean that we have to wait until the money is actually in hand, but it must be clearly in sight. When that time comes, we shall support a tax cut. But until that time comes, it is idle to speculate on the form that it might take, because you cannot intelligentiy consider how most equitably to distribute tax relief before you have some idea how much there might be to distribute. While, as I said at the outset, there is nothing very startling about that position, it is entirely consistent with the tax policy H-941 that the Elsenhower Administration has followed since it took - 2- 90 office in January, 1953. The present highly prosperous condition of the economy may fairly be said to have resulted in some measure from the success of the fiscal and tax policies that have been followed since that time; and it is worthwhile, therefore, to review some of their major outlines as a guide for the future, because the memory of man is short. Parenthetically, I might say that this circumstance of the shortness of human memory was emphatically brought home to us the other day when Secretary Humphrey referred in a speech that he made in Chicago to the fact that one of the controversial early steps taken by this Administration was to eliminate price and wage controls. This momentarily generated a serious argument among the newspaper reporters who were covering the speech, some of whom were sure that these controls had been lifted well before we arrived. Returning therefore to the situation of January. 1953, we were faced with a budget that had just gone to Congress proposing an expenditure level of $78 billion and a deficit of nearly $10 billion. Price inflation had cut the purchasing power of the dollar to 52 cents since 1939. And the public debt, too much of which had been allowed to drift into short term securities, was not far below the $275 billion statutory ceiling. In this situation, vigorous action was taken in many directions. The proposed budget of $78 billion was immediately pared to $74 billion and then still farther reduced in succeeding years to the present estimate of $63.8 billion for the current fiscal year. And as savings came in sight, tax reductions were effectuated. But in that first spring of 1953, when the process of putting our financial house in order was just beginning, you will recall that the major tax event was a six-months extension of the excess-profits tax. Much as it opposed the form and substance of this, the Administration successfully fought its expiration until the inflationary pressures had been brought under better control and the budgetary deficit had been substantially narrowed. This time had arrived by the end of 1953, and for 1954 the Administration reflected the expenditure reductions in a tax cut of $7.4 billion distributed among the excess-profits tax, the individual income tax, various excise taxes, and the major tax revision bill that because effective that year. And so we have come by hard and intensive work on all fronts from the budgetary and tax position of January, 1953, when expenditures were estimated at $78 billion and our revenue at $68 billion, to the present situation of an estimated outgo of $63.8 billion and revenue of $62.1 billion, with, as I have said, the real hope of eliminating in the current fiscal year even that remaining spread of $1.7 billion. - 3- 83 You all know, of course, what makes that task so difficult. Approximately $40 billion of budget expenditures are for defense purposes, and a high proportion of the remainder are for things like interest, veterans benefits, and the farm program, which are wholly or relatively uncontrollable. It is a slow and hard job, therefore, to find further savings without impairing essential activities. I should like to emphasize that there was no suggestion from any responsible source that our defense programs be cut to put the budget in balance. On the contrary, those programs have been determined by the Secretary of Defense and by the President to be essential to our security,* and they come first. Our hope is, and we still entertain it, that by close and unremitting control, and by the elimination of waste wherever found, we can still save enough to balance out. For any tax cut to be a real cut must reflect surplus revenues. If it simply adds to a deficit and therefore to the debt, it is a mere postponement to a future day and generation of the tax that should be levied to offset.the debt increase thus generated by our improvidence. This principle is as true In the long run as it is in the short run. Only with a material improvement in the international climate in the future, be it near or far, is there any real likelihood of a reduction of the scale of our national defense effort that now absorbs so large a part of our national budget. Our search for long range improvements must therefore turn on finding ways of doing what we need to do more cheaply and more efficiently. In that connection, I have personally found great interest and much encouragement in the report of the Hoover Commission and its task force on Government budget and accounting practices. This is a highly technical subject, that a layman approaches with humility; but even a layman can be pardoned for interesting himself in it when the task force estimates a possible ultimate saving of $4 billion a year resulting from improvements in this area. Of course, I cannot personally vouch for this figure; but the fact that it is put forward by a task force of the eminence of this one is enough to challenge serious attention. It would be impossible in the time available to analyze all the Hoover Commission recommendations In this area, but I would like to point to a couple of them that seem to open vistas -and by this I don't, of course, mean to imply anything one way or another concerning Treasury or Administration endorsement of the proposals as a whole or in their details. - 4 Recommendations numbers 6 and 7 are as follows: u^ Recommendation No. 6 That executive agency budgets be formulated and administered on a cost basis. Recommendation No. 7 That the executive budget and congressional appropriations be in terms of estimated annual accrued expenditures, namely, charges for the cost of goods and services estimated to be received. To get the full significance of these proposals, it is important to understand the degree to which Federal figure work is dominated by and oriented toward the obtaining of Congressional appropriations. These appropriations are authorizations to the Executive Branch to spend money either in the current year, or the first or second year following; and, depending on the Department or activity involved, they may or may not have a close relation to the cost of operation in the current year. In a Department like the Treasury, where almost the entire operating cost is payroll, it has a close relation; in the Defense Department, where a large fraction of the-cost is long lead-time procurement, the relationship Is much more remote. The magnitude of this factor is indicated by the statement in the report that of 1956 expenditures of $6£e3 billion about $25 billion will be money appropriated in prior years. Another Illustration is the fact that when this Administration took office, the carry-over of previously appropriated but unexpended funds was nearly $80 billion. As the Hoover reports make clear, there are many consequences that flow from orienting Government accounting toward appropriations rather than toward actual operating costs: For one thing, it is frequently very difficult to get an accurate picture of the annual cost of operating an agency or a particular program, because the accounting system is focused on obligatlonal authority, and not on current operating cost. As just one example, the consumption of an inventory of material acquired from a prior year's appropriation would frequently fail to be reflected as an operating cost of the current year. A second consequence results from the length of time it takes the executive branch to make up its appropriation requests and the length of time it takes Congress to revise and enact them. Typically the basic data for appropriation is fourteen months old by the beginning of the fiscal year covered by the appropriation. Work started in May, 1954, on the budget for the fiscal year which began on July 1, 1955 and will end on June 30, 1956. - 5- 87 A third consequence is that, having in wide areas no dependable and current data as to the actual cost of operating a program, it is hard for the Government to make cost reduction a criterion of the satisfactory performance of its personnel. It is hard to reflect an individual's cost consciousness in his personnel folder as a plus on his record. In the absence of such a criterion, the natural pressures on an individual career executive in the Government are all in the other direction: To get there fastest with the mostest, to be sure you have enough people and material to do the assigned job; even, and less creditably, to build a little empire. In fact, the whole pressure generated by appropriation-oriented accounting is to the same effect; there is a widespread theory, with which you are all acquainted, that the best way to justify your next year's need is to spend all of this year's appropriation. Finally, it is axiomatic in business that good cost accounting and cost estimating is a primary and vital tool of good management planning. The absence of it tends to hamper quick and final decision making as problems arise, and to crowd too many of those decisions into the brief period when the budget decisions are being made, is being put into final shape for submission to Congress. A good deal of progress has been made in certain areas of the Government under the joint accounting program launched by the Budget and Accounting Act of 1952, particularly in Government corporations and other areas where the operations resemble those of the ordinary business activity. How important this area of saving may be for the future is perhaps illustrated by some experiences we have had in the Treasury Department. We have been hard at work throughout the Department to perform our operations more economically; how hard appears from the fact that we employed nearly 88 thousand civilians in January, 1953, and employ about 79 thousand now, a reduction of 10$ Department-wide. But in the Department we have two and only two Bureaus whose operations are almost exactly analogous to those of private business. The Bureau of Engraving and Printing is a big bank note company that prints bills, stamps and securities; and the Bureau of the Mint is a metal rolling and stamping operation where the coins are made. These two Bureaus have each reduced their employment by 35$ in the same period. These reductions are 3-1/2 times the Departmental average and are almost double the next largest reduction in any other Bureau in the Treasury. Of course, there are a number of reasons why these two business-type operations should have shown the largest reductions; but I am convinced that a major factor was the ability to follow closely the business analogy of a system of effective cost control. While this pattern is doubtless incapable of being applied across the board, it is being spread to some extent and can be spread far more widely throughout Government; and I am sure that the Hoover report will make an invaluable contribution to that end. The immediate reason why this whole subject is of vital interest to me is of course the obvious one; our intensive search for more economies in Government as a means of reducing the tax burden on the people. But there is a longer-range reason of even greater importance. We are in a world-wide contest with another way of life. This contest goes forward, with an emphasis that varies from time to time, on every plane of human endeavor. The free world is matching itself against the Communist world in the development of military power, and of economic power as well; we are competing against each other in the sphere of moral values and for the minds and spiritual allegiance of all mankind. Important in this far-flung competition is the relative efficiency with which our Governmental systems can accomplish a given result; the degree to which each must drain its own economy to deliver a given quantity of effort and power at the decision point. I have no fear of the outcome, of this struggle, for the advantages we hold, both materially and morally, are many and great. But to the extent we can improve the efficiency of our Governmental machine by so much do we strengthen ourselves for this contest, which may be long, will certainly be hard, and will determine for generations if not forever the future of our way of life. 0O0 32 To Heads ©f Bureaus and Treasury Staff*. To honor the memory ©f Alexander Hanilton, and to give recognition for outstanding and unusual leadership # ^mmmmml «*^- of tae Treasury Bepartaieatt i hereby authorial an award to be known as the Alexander Hamilton andal. *.. Alexander Hamilton, as first Secretary of tae Treasury, $Jt ewfesMtsd/s^rraly^Inascial leadership in tae early years of ©rises and uncertainty of tae new governiagnjt. fie w< largely responsible for^^aolisaiaeat of mm national credit and for adoption of the sound money principles which remain to this day. It is proper, then, to establish an Alexander Hamilton Medal to be awarded those whose leadership la tae Treasury is saoa as to bring outstanding and mrasual service and benefit to the ©ovemaest and so to tae people of ©ur nation Ju^C^j 4/A >*^-a^- The medal is gold with a bas-relief portrait of Hamilton on one side and the Treasury seal on the other. A certificate signed by the Secretary amjgsm accompanies the award. The language of the directive which established the Alexander Hamilton Medal is: (See attached page) / r FOR RELEASE AT 2:30 PeM# MONDAY, OCTOBER 24, 1955 ^ ' L4l V* The first presentation of the Alexander Hamilton Medal, a new Treasury Department award for distinguished leadership, was made today by Treasury Secretary Humphrey to Edward F. Bartelt, former Fiscal Assistant Secretary of the Treasury. The presentation at the Treasury was witnessed by tanee*W"^ great grandchildren of the first Secretary of the Treasury, LaureniHamiltonli^Ita»#^^ Burgess. Mrs. W. Randolph Also attending were members of the Alexander Hamilton Bicentennial Commission, Treasury officials, and other friends of Mr. Bartelt. **We have created this award to honor the memory of the first Secretary of the Treasury, and to recognize the outstanding and unusual type of leadership by Treasury people which results in great benefit to the Government, and so to the American people", Secretary Humphrey said,in making the presentation. '/Alexander Hamilton, as the first Secretary of the Treasury, skilled financial leadership in the early years of crises and uncertainty of the new government. He was largely responsible for establishment of Mam national credit and /V for adoption of the sound money principles which remain to this day**, Mr. Humphrey said. "Mr. Bartelt, in his long years with the Treasury gave outstanding and unusual leadership in the best interest of the Nation. It gives me great pleasure to have him as the first recipient of this new Alexander Hamilton Medal'V Ms-—Humphrey • TREASURY DEPARTMENT 96 WASHINGTON, D.C. IMMEDIATE RELEASE*. Monday, October 24, 1955 . H-942 The first presentation of the Alexander Hamilton Medal, a new Treasury Department award for distinguished leadership, was made today by Treasury Secretary Humphrey to Edward P. Bartelt, former Fiscal Assistant Secretary of the Treasury. The presentation at the Treasury was witnessed by two great great grandchildren of the first Secretary of the Treasury, Laurens Hamilton and Mrs. W. Randolph Burgess. Also attending were members of the Alexander Hamilton Bicentennial Commission, Treasury officials, and other friends of Mr. Bartelt. "We have created this award to honor the memory of the first Secretary of the Treasury, and to recognize the outstanding and unusual type of leadership by Treasury people which results in great benefit to the Government, and so to the American people," Secretary Humphrey said in making the presentation. "Alexander Hamilton, as the first Secretary of the Treasury, set an extraordinary example of skilled financial leadership in the early years of crises and uncertainty of the new government. He was largely responsible for firm establishment of the national credit and for adoption of the sound money principles which remain to this day," Mr. Humphrey said. "Mr. Bartelt, in his long years with the Treasury gave outstanding and unusual leadership in the best interest of the Nation. It gives me great pleasure to have him as the first recipient of this new Alexander Hamilton Medal." The medal is gold with a bas-relief portrait of Hamilton on one side and the Treasury seal on the other. A certificate signed by the Secretary accompanies the award. The language of the directive which established the Alexander Hamilton Award is: To Heads of Bureaus and Treasury Staff: To honor the memory of Alexander Hamilton, and to give recognition for outstanding and unusual leadership in the work of the Treasury Department, I hereby authorize an award to be known as the Alexander Hamilton Medal. Alexander Hamilton, as first Secretary of the Treasury, set an extraordinary example of skilled financial leadership in the early years of crises and uncertainty of the new government. He was largely responsible for the firm establishment of the national credit and for adoption of the sound money principles which remain to this day. It is proper, then, to establish an Alexander Hamilton Medal to be awarded those whose leadership in the Treasury is such as to bring outstanding and unusual service and benefit to the Government and so to the people of our Nation. G, M, HUMPHREY Secretary of the Treasury / "\ EELMSI wmmm wmmmmrn* X U^- f QT w Tuesday, October 2$* 1955> * 7'J '- ' The freairary Department annotiaeed last evening that the tenders for |l,6oo,000 0 or thereabouts, of 91~day Treasury bills to foe dated October 27, 19$$, and to aattrrt Sammtf 26, 1956, which were offered on October 20, were opened at the Federal Eeaervi Banks urn October 2k* tha details at this issue are ae follow* s total applied for - #2,1*30,033,000 Total accepted - 1,601,073,000 (include* #250,515,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Average price - 99*k3ty Equivalent rate of discount approx, 2.231$ per amm Eaage of accepted competitive bidet Ugh - 99*kk3 J^pivalent rate of discount approx* 2*2®h$ per mtm tow * 99*k3k » « « » « 2*239% * (26 percent of the anomt bid for at the low price was accepted) Federal Eeserve Total Total District ^ Applied for Boston | 36,658,000 # 29,158,000 lew fork 1,691,703,000 FMladelphia la,8ia,000 eaeveland 89,582,000 tlcisaond 15,3114,000 Atlanta 37,1*51,000 Chicago 310,053,000 St. Louis 31,191,000 Minneapolis 9,725,000 Eaasas City 1*2,967,000 Teliae 37,165,000 San Francisco 86,3835000 Total $2,1*30,033,000 $1,601,073,000 / Accepted 1,000,753,000 26,81a,000 81^,782,000 I5,211i,000 27,981,000 230,373,000 30,691,000 9,251,000 la,087,000 23,1*65,000 81,^77,000 » TREASURY DEPARTMENT 98 WASHINGTON, D.C RELEASE MORNING NEWSPAPERS, 1 VA^ October 25, 1955. H-943 The Treasury Department announced last evening that the tenders for $1,600,000,000, or thereabouts, of 91-day Treasury bills-to be dated October 27, 1955, and to mature January 26, 1956, which were offered on October 20, were opened at the Federal Reserve Banks on October 24, The details of this issue are as follows: Total applied for - $2,430,033,000 1,601,073,000 (includes $250,515,000 Total accepted entered on a noncompetitive basis and accepted in full at the average price shown below) Average price - 99.436/ Equivalent rate of discount approx, 2.231$ per annum Range of accepted competitive bids: High - 99,443 Equivalent rate of discount approx. 2.204$ per annum Low - 99.434 Equivalent rate of discount approx. 2.239$ per annum (26 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 ?0TAL Total Applied for Total Accepted $ 36,658,000 I,691,703,000 41,841,000 89,582,000 15,314,000 37,451,000 310,053,000 31,191,000 9,725,000 42,967,000 37,165,000 86,383,000 $ 29,158,000 1,000,753,000 26,841,000 84,782,000 15,214,000 27,981,000 230,373,000 30,691,000 9,251,000 41,037,000 23,465,000 81,477,000 $2,430,033,000 $1,601,073,000 0O0 TREASURY DEPARTMENT WASHINGTON, D.C. IMMEDIATE RELEASE, Tuesday, October 25, 1955. H-944 Treasury Secretary Humphrey announced today that he was recommending to the President the appointment of Russell Chase Harrington of Providence, Rhode Island, as Commissioner of Internal Revenue, to succeed T. Coleman Andrews, whose resignation was accepted by the President effective October 31. Mr. Harrington has been for many years a partner of the national accounting firm of Ernst & Ernst with headquarters In Providence, Rhode Island. He is a past president of the Providence, Rhode Island, Chamber of Commerce, and for the past eight years has been a director of the U. S. Chamber of Commerce. For three years he served as a vice president of the U. S. Chamber, and is now serving as Treasurer. A detailed biographical sketch is attached. Mr. Harrington is severing his business partnership and other commercial connections, and it is expected that he would assume office as Commissioner of Internal Revenue about December 1. In the interval, following the effective date of Commissioner Andrews' resignation, 0. Gordon Delk, Deputy Commissioner of Internal Revenue, will be Acting Commissioner. oOo RUSSELL CHASE HARRINGTON Russell Chase Harrington was born November 9, 1890, at Taunton, Massachusetts, the son of George Stanley and Lydia Roebuck Harrington. His schooling included attendance at the University of Massachusetts in the class of 1913. His first employment was with the old Adams express company, for which he worked in Massachusetts as truck driver, messenger on trains and boats, and office cashier. During World War I, Mr, Harrington served as supervisor of the Army Ordnance cost accounting section in New York City. He joined the national accounting firm of Ernst & Ernst in 1920 as a staff accountant. From 1921 to 1940 he was manager of the Providence, R.I., office of Ernst & Ernst, and since 1940 he has been a resident partner of the firm with headquarters at Providence. Mr. Harrington has been prominent in the activities of accounting organizations. For 12 years he was a member of the Council of the American Institute of Accountants. He served on a number of committees of the Institute, including those on auditing procedure, public relations and trial board. He is a past president of the Rhode Island Society of Certified Public Accountants and also of the Association of CPA Examiners, which is a national organization of State accountancy boards. He was chairman of the Rhode Island Board of Accountancy for four years. He is a member of the American Accounting Association and of the National Association of Cost Accountants. His participation in the affairs of his home State has included service as vice president of the Rhode Island Public Expenditure Council and as a member of the board of directors and the executive committee of Junior Achievement of Rhode Island, Inc. He is vice president and chairman of the finance committee of the Greater Providence YMCA. Mr. Harrington has been prominent also in the affairs of the Chamber of Commerce of the United States. He has been a director of the Chamber for eight years, was vice president for three years, and was named treasurer this year. Committees of the Chamber on which he has served as chairman have included those on finance, government expenditures, and business statistics. Mr. Harrington and Olive Walker were married August 23, 1915. Their home is at 6 Wingate 0O0 Road, Providence, - 3 - M 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. bl8, 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 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 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 l without stated price from any one bidder will be accepted in full at the avera price (in three decimals) of accepted competitive bids. Settlement for accepte tenders in accordance with the bids must be made or completed at the Federal R serve Bank on November 3, 1955 , in cash or other immediately available funds or in a like face amount of Treasury bills maturing November 3, 1955 Cash and exchange tenders will receive equal treatment. Cash adjustments will be ma for differences between the par value of maturing bills accepted in exchange a 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 to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the pri or interest thereof by any State, or any of the possessions of the United State (0% TREASURY DEPARTMENT Washington i r,yy p FOR RELEASE, MORNING NEWSPAPERS, < Thursday, October 27, 1955 m The Treasury Department, by this public notice, invites tenders for $1,600,000,000 3 or thereabouts, of 91 -day Treasury bills, for cash and W "HBg— in exchange for Treasury bills maturing $1,600,714,000 t November 3, 1955 , in the amount of to be issued on a discount basis under competitive and non- competitive bidding as hereinafter provided. The bills of this series will be dated November 3, 1955 and will mature February 2, 1956 P^E amount will be payable without interest. when the face 35 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 one-thirty closing hour,/±3BS> o'clock p.m., Eastern Standard time, Monday, October 31, 1955 , P5 Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than thre decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will b supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized deal in investment securities. Tenders from others must be accompanied by payment of TREASURY DEPARTMENT WASHINGTON. D.C RELEASE MORNING NEWSPAPERS, Thursday, October 27, 1955. H ~^5 The Treasury Department, by this public notice, invites tenders for $L, 600,000,000, or thereabouts, of 91-day Treasury bills, for cash and in exchange for Treasury bills maturing November 3, 1955, in the amount of $L,600,71^,000, to be issued on a discount basis under competitive and non-competitive bidding as hereinafter provided. The bills of this series will be dated November 3. 1955. and will mature February 2, 1956, 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, 410,000, $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, one-thirty o'clock p.m., Eastern Standard time, Monday, October 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 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 oe accepted in full at the average price (in three decimals) of accepted £?rh t'h"MI \ ^tiement for accep.ua tenders In accordance th bld Ifl on M \ ; ^ L b e m d d e 0 r '-••"'*itt'^ at the Federal Reserve Bank on November 3,^ 1955, In cash or other Immediately available funds S L £ a . l i k e L l a c e amount of Treasury bills maturing November 3, 1955 Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value jf maturing bills accepted in exchange and the issue price of the aew 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 ail 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 k5h (b) and 1221 (5) of the Internal Revenue Code of 195^ 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 »t maturity during the taxable year for which the return J 3 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. 105 £@?r Tuesday, iovemaer 1, 1955* _ The Treasury Department announced last evening that tae tenders for $1,600,000,0 or tborMbotita,. of 91-*day Treasury bills to be dated loveaber 3, 1955, and to m February 2, 1956, which were offered on October 27, were opened at the Federal Ba Banks on October 31 • the details of this issue are as follows! total applSM for - $2,1*29,182,000 total accepted - 1,602,267,000 Average prioe (iaslades |2^2,W5,0CK) entered oa a noncompetitive basis and accepted in full at the average price shorn below) - 99.kk& Equivalent rate of dieeooafc appro*. 2.179£ per annas Bang® of accepted competitive bids: (Excepting tae tenders totaiiog |^1SK),00£ . n b "*' s ?e T,. . H3 -P* - 99*k$2 Equivalent rate of discount appro*. 2.168^ per annua 3*OW - 99.kh& » « a * a S.lftL€ n M (23 percent of the amount bid for at the low price was accepted) ly Federal Eeservo Bietriet total Applied for Boston Mew fork Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Bailee San Francisco | tCfAL ^,10*8,000 1* 731*636,000 27,333*000 5k,*t68,000 17,603,000 29,818,000 3Ut, 933,000 25,899,000 11,908,000 39,913,000 35,718,000 97,505,000 12,1*29,182,000 total Accepted this | 32,1^,000 1,138,587,000 10,Ub7,000 28,830,000 lit, 063,000 26,ia6,000 189,587,000 22,973,000 9,356,000 29,177,000 21,918,000 78,767,000 11,602,267,000 TREASURY DEPARTMENT 106 WASHINGTON, D.C. RELEASE MORNING NEWSPAPERS H-946 Tuesday, November 1, 1955. The Treasury Department announced last evening that the tenders for $1,600,000,000, or thereabouts, of 91-day Treasury bills to be 'dated November 3, 1955, and to mature February 2, 1956, which were offered on October 27, were opened at the Federal Reserve Banks on October 31. The details of this issue are as follows: Total applied for - $21,429,182,000 Total accepted - 1,602,267,000 (includes $242,415,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Average price - 99.449/ Equivalent rate of discount approx. 2.179$ per annum Range of accepted competitive bids: (Excepting two tenders totaling $1,100,000) High - 99.452 Equivalent rate of discount approx. 2.168fo per annum Low - 99.448 Equivalent rate of discount approx. 2.184$ per annum (28 percent of the amount bid for at the low price was accepted) Federal Reserve Total Total District Applied for Boston $ 42,448,000 $ 32,446,000 New York 1,731,636,000 Philadelphia 27,333,000 Cleveland 54,468,000 Richmond 17,603,000 Atlanta 29,818,000 Chicago 314,933,000 St. Louis 25,899,000 Minneapolis 11,908,000 Kansas City 39,913,000 Dallas 35,718,000 San Francisco 97,505,000 TOTAL $2,429,182,000 $1,602,267,000 0O0 Accepted 1,138,587,000 10,147,000 28,830,000 14,O63,000 26,416,000 189,587,000 22,973,000 9,356,000 29,177,000 21,918,000 78,767,000 - 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 h$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. ltl&, 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 -i. v.- w 2 percent of the face amount of Treasury bills applied for, unless the tenders an 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 avera 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 November 105 1955 * in cash or other immediately available funds or in a like face amount of Treasury bills maturing November 10, 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 to 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 TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, jf — (f/ Thursday. November 3f 1 0 ^ < The Treasury Department, by this public notice, invites tenders for $ 1,600,000.000 , or thereabouts, of 91 -day Treasury bills, for cash and in exchange for Treasury bills maturing November 10. 19^ in the amount of $ 1,600^507>000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated November 10, 1955 , and will mature February 9. 1956 when the face W 3Jft$X 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, (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the one-thirty closing hour,/tt» ofclock p.m., Eastern Standard time, Monday. November 7. 19f& Tenders will not be received at the Treasury Department, Washington. Each tende must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than thr decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received 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, November 3, 1955. H-94? The Treasury Department, by this public notice, Invites tenders for $1,600,000,000, or thereabouts, of 91-day Treasury bills, for cash and in exchange,for Treasury bills maturing November 10, 1955, in the amount of $1,600,507,000, to be issued on a discount basis under competitive and non-competitive bidding as hereinafter provided. The bills of this series will be dated November 10, 1955, and will mature February 9, 1956, 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, one-thirty o^lock p.m., Eastern Standard time, Monday, November 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 - 2w ? ^ ^ ^ ^ L b i d S \ Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on November 10, 1955, in cash or other immediately available funds or in a like face amount of Treasury bills maturing November 10 IQRR 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 QxlIS. 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 Revenue0 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. Qojpies of the circular may be obtained from any Federal Reserve Bank or Branch. - 2- 111 Sessions of the Savings Bonds Conference.1at tha Statler Hotel. are being presided over by Earl 0. Shrove, National Director of the : ^ d s Savings Bonds Division of the Treasury. The'purpose of the conference is to review this year's progress of the bond program and complete plans f for the 1956 sales campaign. The conference was exacted t© fix"a national goal of %$,650,000,000 for sales of Series E and H bonds in 195&* s The 1955 goal is $5,500,000,00 A feature" ©f today1® sessions wag a $a*»l dtee**«iwt-%£ business, industrial and a&rlimltttral Dresi&eets. s I t was presided over by Treasury Under Secretary W# Randolph Burgess and was participated in •\BrTrea.a\xry John S. Coleman of the Burroughs Corporation, Williaa F. Schmitaler of the American federation of Labor, Fred Florence^representing. the American Bankers Association, Assistant Secretary Jl. «7.vJfeNeilrtQf the Defense11® Department, and Allen B« Klin® representing uthe American Farm imreau Federation. At a noon luncheon tJie conferees were to hear Bennett Cerf/* author, humorist and oubllsher, Samuel C. Waugh. President of the. Export-Import Bank, and ffenard K f Smith, chief European correspondent of the Columbia 4 Broadcasting System, were to speaic at a conrerence dinner tonignn. 112 BMEDIATE EaEASE (9*30 a.m. Thursday, lovember 3, 1955) Vc President Eisenhower, today^SSmM a Treasury Department conference of national leaders of the United States Savings Bonds program that "the fruits of the unselfish efforts of you and your associates back home will live on in the security of millions of American families as the years go by.** A'Tfuiofn^re fyew ihe Presidentwas read by Vice President i^ixon at the opening of a two-day meeting of State Savings Bonds chairmen, national Savings Bonds committee chairmen, and other volunteer leader with Treasury and Savings Bonds Division officials and staff members. The message salds "TO THE UNITS) STATES SAflNGS BOMDS CONFERENCE! "fou volunteers, including a large body of workers in mary state and community, are an all*Amerlcan team of men and women who serve their nation under the Savings Bonds banner., "The Savings Bonds program gives every individual and every family a chance at the opportunities and the happiness that go with financial independence. It enables every citizen to save on a safe and systematic basis, and thereby to contributeto the economic stability of his community and the nation. "X am sure that leadership of the Savings Bonds program has been one of Secretary Humphrey*s most satisfying experiences, and that he is deeply Impressed by the splendid support the program has had. »*The fruits of the unselfish efforts of you and your associates back home will live on in the security of millions of American families as the years go by. WIGHT *>. EISENHOWER" TREASURY DEPARTMENT 114 WASHINGTON, D.C. IMMEDIATE RELEASE, Thursday, November 3, 1955. H-94d President Eisenhower said today in a message to a Treasury Department conference of national leaders of the United States Savings Bonds program that "the fruits of the unselfish efforts of you and your associates back home will live on in the security of millions of American families as the years go by." The President's message was read by Vice President Nixon at the opening of a two-day meeting of State Savings Bonds chairmen, national Savings Bonds committee chairmen, and other volunteer leaders with Treasury and Savings Bonds Division officials and staff members. The message said: "TO THE UNITED STATES SAVINGS BONDS CONFERENCE: "You volunteers, including a large body of workers in every state and community, are an all-American team of men and women who serve their nation under the Savings Bonds banner. "The Savings Bonds program gives every individual and every family a chance at the opportunities and the happiness that go with financial independence. It enables every citizen to save on a safe and systematic basis, and thereby tcr contribute to the economic stability of his community and the nation. "I am sure that leadership of the Savings Bonds program has been one of Secretary Humphrey's most satisfying experiences, and that he is deeply impressed by the splendid support the program has had. "The fruits of the unselfish efforts of you and your associates back home will live on in the security of millions of American families as the years go by. DWIGHT D. EISENHOWER" - 2- 113 Sessions of the Savings Bonds Conference, at the Statler Hotel, are being presided over by Earl 0. Shreve, National Director of the Savings Bonds Division of the Treasury. The purpose of the conference,is to review this year's progress of the bond program and complete plans for the 1956 sales campaign. The conference was expected to fix a national goal of $5,650,000,000 for sales of Series E and H bonds in 1956. The 1955 goal is $5,500,000,000. A feature of today's sessions was a panel discussion of business, industrial and agricultural prospects. It was presided over by Treasury Under Secretary W. Randolph Burgess and was participated in by John S. Coleman of the Burroughs Corporation, William F. Schmitzler of the American Federation of Labor, Fred Florence representing the American Bankers Association, Assistant Secretary W. J. McNeil of the Defense Department, and Allen B. Kline representing the American Farm Bureau Federation. At a noon luncheon the conferees were to hear Bennett Cerf, author, humorist and publisher. Samuel C. Waugh, President of the Export-Import Bank, and Howard K. Smith, chief European correspondent of the Columbia Broadcasting System, were to speak at a conference dinner tonight. 0O0 FOB. RELEASE: 115 /-/- ^ 7 The Treasury's Savings Bond Salesmen today set for themselves a 1956 goal of 15,650,000,000 la series E and H bonds — an increase of |150 million over this year1 s quota. Closing a two-day National Savings Bonds Conference at the Statler Hotel, MM staff and volunteer workers from every stata heard Treasury officials praise them for "an outstanding job in 1955." Earl 0. Shrove, national director of the Treasury* s Savings Bonds Division, announced that $ and H sales for the first 10 months of this ©alta- dar year totalled $2j.,5ii8 million, an increase of #487 million over the fir 10 months of 1954* At the same time, 10-month redemptions «M* 13,910 million, leaving over an axeess of sales/ntf/redemptions of §638 million through October 31. At Wam*m*maWfamx9 sales kg* exoeeded^Mt^O^sW #359 millionth jA>f** For the month of Ootoeer, E and H sales -were fyl&k million. This is #35 million above the October 195k sales of I369 million. Director Shreve also reported that the #14,5146 million salts to date represent 82.7 per cent of the I955 goal of #5,500 million. "We have an excellent ehance of meeting our quota this year," he told the Conference, "but it will take the very best efforts of all of us during the final two months. I know all of you are going tan baek home to redouble your efforts in that direction. Ntw 1 that we• spe < ww nlff>ei4i The purpose of the annual conference was to review this year's progrw in the Savings Bond Program, and to CiiTeompleto plans for the 1956 sales campaiga. Those in attendance included state sales directors and state volunteer chairmen from the I48 states, Hawaii, and the District of Columbia* # # # 116 TREASURY DEPARTMENT WASHINGTON. D.C. IMMEDIATE RELEASE. Friday, November 4, 1955. H-949 The Treasury's Savings Bond Salesmen today set for themselves a 1956 goal of 35,650,000,000 in series E and H bonds -- an increase of $150 million over this year's quota. Closing a two-day National Savings Bonds Conference at the Statler Hotel, staff and volunteer workers from every state heard Treasury officials praise them for an outstanding job in 1955." Earl 0. Shreve, national director of the Treasury's Savings Bonds Division, announced that E and H sales for the first 10 months of this calendar year totalled J4,54b million, an increase of $487 million over the first 10 months of 1954. At the same time, 10-month redemptions were $S,910 ?Ji5 . ^ } e a v i n s a n e x c e s s of sales over redemptions of $o3b million through October 31. Sales exceeded redemptions by $359 million in the first 10 months of 1954. M,^, F??.the mont|1 of October, E and H sales were *404 million. This is $35 million above the October 1954 sales of $369 million. ^ Director Shreve also reported that the £4,548 million P 500 millionrePreSent 82*? P8r °8nt of tlle ^55 goal of "We have an excellent chance of meeting our quota this year, he told the Conference, "but it will take the very best efforts of all of us during the final two ^ „ s ^ I know all of you are going back home to redouble ;your enorts in that direction." ... The Pu^Pose of the annual conference was to review this year's progress in the Savings Bond Program, and to complete plans for the 1956 sales campaign. Those in attendance included state sales directors and state volunteer chairmen from the 48 states, Hawaii, and the ULSorict 01 Columbia. 0O0 SUGGESTED PRESS RELEASE , . -7 X A. k FOR RELEASE AT 6:00 P.M.,EST, Friday, November 4, 1955. H- fS~$ Delegations from the Austrian Federal Ministry of Finance and the United States Treasury Department today concluded discussions in Washington, D. C. on a draft income tax convention to eliminate double taxation and thus to promote international trade and investment. The two delegations began their meetings on October 24. The draft income tax agreement will be submitted to the respective governments for approval and will be made public in due course in accordance with the regular procedures prevailing in connection with treaties. The delegations also discussed a convention to eliminate double taxation on the transfer of property at death but were unable to reach agreement in the time available. It is hoped that a further exchange of views will lead to the consummation of an estate tax convention. The Austrian delegation was composed of Dr. J. Stangelberge: and Dr. 0. Watske of the Federal Ministry of Finance. The United States delegation was headed by Dan Throop Smith, Special Assistant to the Secretary of the Treasury, and Laurens Williams, Assistant to the Secretary. 0O0 TREASURY DEPARTMENT WASHINGTON, D.C. FOR RELEASE AT 6:00 P.M., EST, Friday, November 4, 1955. H-950 Delegations from the Austrian Federal Ministry of Finance and the United States Treasury Department today concluded discussions in Washington, D.C. on a draft income tax convention to eliminate double taxation and thus to promote international trade and investment. The two delegations began their meetings on October 24. The draft income tax agreement will be submitted to the respective governments for approval and will be made public in due course in accordance with the regular procedures prevailing in connection with treaties. The delegations also discussed a convention to eliminate double taxation on the transfer of property at death but were unable to reach agreement in the time available. It is hoped that a further exchange of views will lead to the consummation of an estate tax convention. The Austrian delegation was composed of Dr. J. Stangelberger and Dr. 0. Watske of the Federal Ministry of Finance. The United States delegation was headed by Dan Throop Smith, Special Assistant to the Secretary of the Treasury, and Laurens Williams, Assistant to the Secretary. oOo i 11 BEI1AS3 IICRHIKG S3VSPAHSS, trasday, Scweaber 8, Iggg. m e treasury BepartmeBt announced last evening that the tenders for fl,6OO,000 i or thereabouts, of 91-day treasury bills to be dated Moveiaber 10, 19$$, and to February 9, 1956, wmiek were offered on loveaber 3, war® opened at the Federal S Banks on lovesber 7. ^e details of Ms issue are as follows? total applied for - t2,222,7l5f000 fetal accepted » 1,600,065,000 Average priee (includes §238,182,000 entered on a noncompetitive basis and accepted Is fnil at the average price shewn belo - 99.486 Equivalent rat© of discount approx. 2.03W par annas Range of accepted competitive bids; High Low ~ 99*$lk Bivalent rate of ^iseonst approx. 1.923I& per annus - 99*472 * » » « » ZM% * » (8ii percent of tae aaonst bid for at t&e low priee was accepted) Federal Eeserve District Total Applied for total Accepted Boston Sew fork Bxiladelpbia Cleveland Riehmoiid Atlanta Chicago St* Lonis Minneapolis Kansas City Dallas San Francisco 1 | torn 25,089,000 1,622,1*03,000 33,326,000 35,503,000 19,950,000 29,995,000 263,828,000 23,1498,000 15,060,000 1*7,669,000 37,736,0(K) 68,678,000 12,222,715,000 25,089,000 1,080,803,000 18,326,000 35,503,000 19,950,000 29,995,000 20it,828,000 23,498,000 lit,660,000 1*7,669,000 31,066,000 68,678,000 #1,600,065,000 TREASURY DEPARTMENT 120 WASHINGTON, D.C. RELEASE MORNING NEWSPAPERS, Tuesday, November 8, 1955. H-951 The Treasury Department announced last evening that the tenders for ^1,600,000,000, or thereabouts, of 91-day Treasux-y bills to be dated November 10, 1955, and to mature February 9, 1956, which were offered on November 3, were opened at the Federal Reserve Banks on November 7. The details of this issue are as follows: Total applied for - $2,222,715,000 Total accepted - 1,600,065,000 (includes $238,182,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Average price - 99.486 Equivalent rate of discount approx. 2.034$ per annum Range of accepted competitive bids: High - 99.514 Equivalent rate of discount approx. 1.923$ per annum Low - 99.472 Equivalent2.089$ rate per of discount approx. annum (84 percent of the amount bid for at the low price was accepted) Federal Reserve District Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San FranciscoTOTAL Total Applied for $ 25,089,000 1,622,403,000 33,326,000 35,503,000 19,950,000 29,995,000 263,828,000 23,498,000 15,060,000 47,669,000 37,716,000 $2,222,715,000 68,678,000 0O0 Total Accepted $ 25,089,000 1,080,803,000 18,326,000 35,503,000 19,950,000 29,995,000 204,828,000 23,498,000 14,660,000 47,669,000 31,066,000 $1,600,065,000 68,678,000 S T A T U T O R Y D E B T LIMITATION AS OF..??.*°.iSL.S^55 c . l^shington,.I?I-... 8 , 1! of thnrAV-rn2n,l°/lwSCf?nd.Libtlr!y P°ui A^!' B S ^ " ^ / " v i d c s t h n t the face amount of obligations issued under authority Mtcetl ohlVrnHn, « n ° p ' « ^ «*»«««»«i" PuarantcccTfts to principal and Interest by the United States (except sucl.guj J/K of l , m f 5 r loS?."!?'* r 1 K. S C C ^ V ! 7 °f th ° treasury), ''shall not exceed in the aggregate $275,000,000,000 9 6J Semorioi vnb? nf Vr^*' ^ 3 V " * 7 ?' 7b) ' out » ta "d J "? «* «ny one time. For purpose* of this section the currentV . E T k vn,u.c1of «°y obligation issued on a discount basin which is rcdccmnblc prior to maturity at the option of the holder ITfiii Z C ( ? n s ! d v r e d " s Its * » " am " unt - ' T I S A c t of Aueu '" 28« 1954 » < P , L ' 6B6-R3rd CongreNsjf provides that during the period beginning on August 28, 1954, and ending June 30, 1955, the above limitation (1275,000,000,000) shall be temporarib increascd by $6,000,000,000. The Act of June 30, *955 (P.L. 124 84th Congress) contmues this temporary increase until j S $ fift The following table shows the face amount of obligations outstanding and the face amount which can still be issued »i»f this limitation: «»<»«cu una Total face amount that may be outstanding at any one time $ 2 8 1 , 0 0 0 , 0 0 0 000 OutstandingObligations issued under Second Liberty Bond Act, as amended Interest-bearing: Treasury bills | 20 , 811, 535, 000 Certificates of indebtedness 12,01?,030 ,000 Treasury notes ... 47,877,821,000 * 80, 706,386,000 BondsTreasury 81.868,l6l,000 * Savings (current redemp. value) j&*£OJ-t<~o5*vy5 Depositary. 373»593,5®© Investment series 12,360,221,000 152,863,261,195 Special FundsCertificates of indebtedness 31,626,074,000 Treasury notes! 12,031,162,400 43>657,236,4©© Total interest-bearing 277,226,883,595 Matured, interest-ceased tyg* \%K l"3^t Bearing no interest: United States Savings Stamps Excess profits tax refund bonds Special notes of the United States: Internal Monetary Fund series Total 46,673,54? 1,052,23© 1,602,000,000 • Guaranteed obligations (not held by Treasury): Interest-bearing: Debentures: F.H.A 47,190,85© Matured, interest-ceased 878,975 Grand total outstanding , Balance face amount of obligations issuable under above authority,„ 1,649,725,783 279,339,79^,513 48,069,825 ,'' Reconcilement with Statement of the Public DelH..2C.S.0.'5*F.t.S.f..;l?.55. (Date) (Daily Statement of the United States Treasury, ?e.*Sjj.!f ..S.'.. «?-*-* Outstanding- TO'^ Total gross public debt „ Guaranteed obligations not owned by the Treasury. Total gross public debt and guaranteed obligations. 4t t Deduct - other outstanding public debt obligations not subject to debt limitation ; # 279,387,864,338 l,6l2.135«662 ) 279,817,534,986 ^O,069,0**.? 279,065,604,811 ^ 7 7 ,740,473 279,387,864,338 H-952 STATUTORY DEBT LIMITATION AS 0|r October 31, 1955 ^on 122 Washington, 2?I:..3.A..J151 Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations insued under authority of that Act, and the face amount of obligations guaranteed as to principal and intcicst by the United States (except Huchguargntccd obligations ns may be held by the Secretary of the Treasury), ' shall not exceed in the aggregate $275,000,000,000 iAct of June 26, 1946; U.S.C.. title 31, sec. 757b), outstanding at any one time. For purposes of this section the current reeruption value of any obligation issued on a discount basin which is redeemable prior to maturity at the option of the holder shall be considered ns its face amount.1" The Act of Augusl 28, 1954, (P.L. 6H6-B3rd Congrens) 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 $6,000,00,0,000. The Act of June 30, 1955 (P.L. 124 84th Congress) continues this temporary increase until June 30, 1956, The following table shows the face amount of obligations outstanding and the face amount which can still be Issued under thin limitation: Total face amount that may be outstanding at any one time $281,000,000,000 OutstandingObligations issued under Second Liberty Bond Act, as amended Interest-bearings Treasury bills $ ^ , 811, 535. 000 Certificates of indebtedness Treasury notes B nd °r e "B"ury 1 2 , 017,030 ,000 47,877,821,000 % 80, 706,386,000 81,868,161,000 * Savings (current redemp. value) Der)0sitary. y , p 1 2 , 3 6 0 , Investment series Special FundsCertificates of indebtedness Treasury notes Total interest-bearing Matured, interest-ceased ...» Bearing no intetest: United States Savings Stamps Excess profits tax refund bonds Special notes of the United States: , ,1M ; B A Internat'l Monetary Fund series Total i 2 58,261,285,695 373.593,500 2 1 , 0 0 0 Li ! 1 . , , 31,626, W , 0 0 0 12,031,162,400 ! ^ ' * « 152,863.261,195 -/ * -^ * • '-* 43,657,236,400 -" •" * "* * 277,226,883,595 463,185,135 ^6 ,673, 5^7 1,052,236 1,602,000,000 ! ! 1 ,. — — —rt_ 1,649,725.783 ;—L.—L_L!—rLU.—± 279,339,794,513 Guaranteed obligations (not held by Treasury): Interest-bearing: 47,190,850 Debentures: F.H.A 878,975 Matured, interest-ceased Grand total outstanding , .. * . Balance face amount of, obligations issuable under above authority 48,069,825 279,387,864,338 1 .-• •.1 \bl2>\lj*% 662, • Reconcilement with Statement of the Public Debt "•;••.•'! "'*"' (pate) (Daily Statement of the United States Treasury, ™....?.£„2...j 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 .?.55 "• •••• > • 279.817.534,986 1,0 /N/CQ o n e _^ --. *6-\\' 4 7 7 W 0 473 'Jjl L__L£. 279,387,864,338 H-952 - 3 - mm 123 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 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- mm 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 November 17 * 19$$ , in cash or other immediately available funds —TW* " or in a like face amount of Treasury bills maturing November 17, 1955 • Cash §5X]K 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 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 EXKHIXXX . ^ t- TREASURY DEPARTMENT Washington , ^ ) , i 6 *j FOR RELEASE, MORNING NEWSPAPERS, Wednesday, November 9, 1955 The Treasury Department, by this public notice, invites tenders for $1,600,000,000 , or thereabouts, of 91 -day Treasury bills, for cash and TO* "~Win exchange for Treasury bills maturing November 17, 1955 , in the amount of $1,600,635*000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated November 17, 1955 , and will mature February 3.6, 1956 , 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 one-thirty closing hour,/teas o'clock p.m., Eastern Standard time, Monday, November 14, 1955 .« 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 RELEASE MORNING NEWSPAPERS, Wednesday, November 9, 1955. H-953 The Treasury Department, by this public notice, invites tenders for $1,600,000,000, or thereabouts, of 91-day Treasury bills, for cash and in exchange for Treasury bills maturing November 17, 1955, in the amount of $1,600,635,000, to-be Issued on a discount basis under competitive and non-competitive bidding as hereinafter provided. The bills of this series will be dated November 17, 1955, and will mature February 16, 1956, 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, one-thirty o'clock p.m., Eastern Standard time, Monday, November 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 November 17, 1955, in cash or other immediately available funds or In a like face amount of Treasury bills maturing November 17, 191 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. TREASURY DEPARTMENT Washington IMMEDIATE RELEASE, Thursday, November 10, 1955« 127 H-954 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 October 29, 1955, inclusive, as follows: Products of the Philippines Buttons Established Quota Quantity 850,000 Imports as of Oct. 29; 1955 Gross 594,056 Cigars. 200,000,000 Number Coconut Oil 448,000,000 Pound 117,174,68? Cordage 6,000,000 Pound 3,670,704 Rice 1,040,000 Pound - (Refined ............ Sugars (Unrefined Tobacco 6,500,000 3,6l2,a8 8,221,617 1,904,000,000 Pound 1,838,182,077 Pound 896,883 TREASURY DEPARTMENT Washington IMMEDIATE RELEASE, Thursday, November 10, 1955. 128 H-954 The Bureau of Customs announced today preliminary figures showing the imports for consumption of commodities on v/hich quotas were prescribed by the Philippine Trade Act of 1946, from January 1, 1955, to October 29, 1955, inclusive, as follows: Products of the Philippines _ _ _ _ ^ : Established Quota : Quantity Imports as of Oct. 29; 1955 *^ Buttons 850,000 Gross Cigars 200,000,000 Number 3,612,218 Coconut Oil 448,000,000 Pound 117,174,687 Cordage 6,000,000 Pound 3,670,704 Rice 1,040,000 Pound (Refined Sugars (Unrefined Tobacco 6,500,000 594,050 8,221,617 1,904,000,000 Pound 1,838,182,077 Pound 896,883 «»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 VALUEt Provided, however, that not more than 33-1/3 percent of the quotas shall be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more in staple- length in the case of the following countries: United Kingdom, France, Netherlands, Switzerland, Belgium, Germany, and Italys Country of Origin United Kingdom Canada . . . . France . . . . British India , Netherlands . , Switzerland . . Belgium . . . , Japan . < > . . . China . . . . • Egypt o o . . . Cuba 0 « • » « Germany . . . . JL"t>aj.y « o . o Established TOTAL QUOTA Total Imports Sept, 20, 1955, to Established 33-1/3* of Total Quota Imports Sept. 20, 1955, to Nov. 8, 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\263 272,833 69,783 18,692 24,500 25,443 7.088 24,500 5,482,509 385,808 1,599,886 316,025 1,441,152 272,833 75,807 18,692 17 22,747 14,796 12,853 1/ Included in total imports, column 2. Prepared in the Bureau of Customs. ro TREASURY DEPARTMENT Washington IMMEDIATE RELEASE, Thursday, November 10,1955 H-955 Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas established by th-e 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, 1956. to November 8. 1955. inclusive Country of Origin. Established Quota Imports Country of Origin Established Quota Imports Egypt and the Anglo- Honduras 752 Egyptian Sudan . . . 783,816 Peru 247,952 British India . . . . . 2,003,483 China . . . . . . . . . . 1,370,791 Mexico 8,883,259 Brazil 618,723 Union of Soviet Socialist Republics . 475^,124 Argentina 5,203 ^aitl 237 Ecuador . . 9,333 40,273 8,883,259 368,196 - Paraguay Colombia Iraq British East Africa . . Netherlands E. Indies. Barbados l/Other British W. Indies Nigeria . 2/0ther British W.'Africa i/Other French Africa . . Algeria and Tunisia . 871 124 195 2,240 71,388 21,321 5 377 16*004 689 1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago. 2/ Other than Gold Coast and Nigeria. 2/ Other than Algeria, Tunisia, and Madagascar. Cotton, harsh or rough, of less than 3//," Cotton 1-1/8" or more, but less than 1-11/16" Imports Sept. 20, 195.5. to Oct. 29. 1Q55 __ Imports Feb. 1, 1955. to Oct. 2Q. loss Established Quota (Global) Imports Established Quota (Global) Sports 70,000,000 2,751,106 45,656,420 32,863,95? CO TREASURY DEPARTMENT Washington 131 IMMEDIATE RELEASE, Thursday, November 10,1955 H-955 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, 1955. to November 8. 1955, inclusive Country of Origin Established Quota £gypt and the AngloEgyptian Sudan . ... Peru *. British India . . . . China . . . . . . . . Mexico . . . . . . . Brazil . . . . . . . . Union of Soviet Socialist Republics Argentina . . . . . . Haiti Ecuador . . . . . . . 783,816 247,952 2,003,483 1,370,791 8,883,259 618,723 475,124 5,203 237 9,333 Imports 40,273 8,883,259 368,196 Country of Origin Honduras ..... • Paraguay . . . . . . . Colombia . . . . . . . .Lraq . . . . . . . . . British East Africa . . Netherlands E• Indies. Barbados . . . . . . . l/0ther British W. Indies Nigeria . 2/0ther British W. Africa ^Other French Africa . . Algeria and Tunisia . Established Quota 752 871 124 195 2,240 71,388 21,321 5,377 16,004 689 l/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago. 2/ Other than Gold Coast and Nigeria. 2/ Other than Algeria, Tunisia, and Madagascar. Cotton, harsh or rough, of less than 3/4" Imports Sept. 20, 1955. to Oct. 29. 1955 Cotton 1-1/8" or more, but less than 1-11/16" Imports Feb. 1. 1955. to Oct. 29. 1955 Established Quota (Global) Established Quota (Global) 70,000,000 Imports 2,751,106 45,656,420 Imports 32,863,957 •9— 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 . . . . • British India . Netherlands . „ Switzerland . . Belgium . . . . Japan . „ . . • China . . . . . Egypt . . . . . 6 • O Cuba 0 9 9 Germany Italy 0 0 0 0 9 9 Total Imports Sept. 20, 1955, to Nov. 8, 1955 Established s Imports 33-1/3$ of : Sept. 20, 1955, Total Quota ; to Nov. 8, 1955 1,441,152 272,833 75,807 18,692 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 21,263 272,833 69,783 18,692 24,500 25,443 7,088 24,500 5,482,509 385,808 1,599,886 316,025 1/ Included in total imports, column 2. Prepared in the Bureau of Customs. 22,747 14,796 12,853 V TREASURY DEPARTMENT Washington 132 IMMEDIATE RELEASE, Thursday. November 1©. 1955. H-956 The Bureau of Customs announced today preliminary figures showing the imports for consumption of the commodities listed below within quota limitations from the beginning of the quota periods to October 29, 1955, inclusive, as follows: Commodity Ihole milk, fresh or sour Period and Quantity Calendar Year Unit t of : Imports as < Quantity ;Oct. 29. 191 3,000,000 Cream Calendar Year Gallon U,l7k 1,500,000 Gallon 686 Butter July 16, 1955 Oct. 31, 1955 5,000,000 Pound 191,106 Fish, fresh or frozen, filleted, etc., cod, haddock, hake, pollock, cusk, and rosef ish Calendar Year 35,li32,62li Pound Quota Fille 150,000,000 60,000,000 Pound Pound 2,634,550 639,ljl3 White or Irish potatoes: Certified Seed Other 12 mos. from Sept. 15, 1955 Cattle, less than 200 lbs. each .. 12 mos. from April 1, 1955 200,000 Cattle, 700 lbs. or more each .... Oct. 1, 1955 (other than dairy cows) Dec. 31, 1955 Walnuts Calendar Year Head It, 912 1,061* 120,000 Head 5,000,000 Pound Quota Fillei Alsike clover seed 12 mos • from Peanuts, whether shelled, not shelled, blanched, salted, prepared, or preserved (including roasted peanuts, but not ineluding peanut butter) July 1, 1955 2,500,000 Pound Quota Fill© 12 mos. from Aug. 1, 1955 1,709,000 Peanut OH 12 mos. from Pound 92U,U87 * 80,000,000 Pound 6,683,737 July 1, 1955 Rye, rye flour, and rye meal 12 mos. from July 1, 1955 Canada Other Countries •^Imports through November 8, 1955* 182,280,000 3,720,000 Pound 179,620,636 * Pound TREASURY DEPARTMENT Washington 133 MMEDIATE RELEASE, hursday, November 10, 1955* H-956 The Bureau of Customs announced today preliminary figures showing the imports for consumption of the commodities listed below within quota limitations from the beginning of the quota periods to October 29, 1955, inclusive, as follows: Commodity Period and Quantity Unit of :Imports as of Quantity :0ct. 29, 1955 "Whole milk, fresh or sour Calendar Year 3,000,000 Cream Calendar Year 1,500,000 Gallon Butter , July 16, 1955 Oct. 31, 1955 5,000,000 Pound 191,106 35,lt32,62U Pound Quota Filled 150,000,000 60,000,000 Pound Pound 2,63U,550 639,1*13 Fish, fresh or frozen, filleted, etc., cod, haddock, hake, pollock, cusk, and rosefish Calendar Year White or Irish potatoes: Certified Seed Other 12 mos. from Sept. 15, 1955 Cattle, less than 200 lbs. each ., 12 mos. from April 1, 1955 Cattle, 700 lbs. or more each ... Oct. 1, 1955 (other than dairy cows) Dec. 31, 1955 200,000 Gallon Head 120,000 Head U,17U 686 U, 912 1,064 Walnuts Calendar Year 5,000,000 Pound Quota Filled Alsike clover seed 12 mos. from July 1, 1955 2,500,000 Pound Quota Filled 12 mos. from Aug. 1, 1955 1,709,000 Pound Peanuts, whether shelled, not shelled, blanched, salted, prepared, or preserved (including roasted peanuts, but not including peanut butter) Peanut Oil 12 mos. from July 1, 1955 Rye, rye flour, and rye meal 12 mos. from July 1, 1955 Canada Other Countries ^Imports through November 8, 1955. 92U,U87 * 80,000,000 Pound 6,683,737 182,280,000 Pound 179,620,636 * 3,720,000 Pound I3</- TREASURY DEPARTMENT Washington FOR RELEASE P.M. NEWSPAPERS, THURSDAY, NOVEMBER l?,_lg£k ., i T " rniiir t i '•'•-••- ' niiMniiuii i „ OR7 D{ ^ . Remarks by Secretary of the Treasury George M0 Humphrey before Annual Meeting, American Petroleum Institute, at San Francisco, California, Thursday Morning, November 17, 1955. BETTERMENT FROM THE BOTTOM UP It is an often-neglected fact that within the last half century this nation has gone through an economic evolution that makes pale any other In the long history of man's efforts to achieve a better life. The result Is — that this nation is today a nation made up of small to medium savers and investors. This means that today this is a nation of "haves", and not a nation of "have nots". We have been in a tremendous and beneficial evolution, peacefully bettering the lives of most of us. We in this Administration have hitched our wagon to this rising star of a "have" nation to make sure of its continued rise — to keep making "have nots" into "haves". We are admirers of, and believers in this uniquely American growth and progress9 But on coming into office we found that this great day-to-day American evolution from the bottom up was in danger. In fact, we found that it had not even been properly recognized by economic policymakers of the past two decades,-, They were too busy fighting the ghosts of a "have not" nation, a nation that had even-then already ceased to exist. As a result, we found the economy blown up with the hot air of inflation, to a point where there was real danger that it might burst, letting us all down with a crash that would have maimed us as a nation, and dropped the free world1s defenses Invitingly low. 135 - 2 We found the economy1s growth hampered and hobbled by a tangle of successive layers of regulations, controls, subsidies and taxes imposed in past emergencies. The economy was being twisted into the shape of things past, when it should have been reaching freely for its rightful future. In addition, we found defense spending being used partly to buy defense, and partly as a crutch to support an unsound economy, thereby endangering both defense and the economy. In other words, we found an economy in danger of going stale, out of step with the times and out of step with the nation it had to serve, an economy fearful of the ghosts of bygone crises, living precariously on the treacherous dodges of inflation, subsidy, and excessive crash-and-crisis government spending. We have been reshaping this government's economic policies into the policies required for a strong and forwardlooking nation, Its economy firmly footed and self-supporting; an economy that will pump a continuous new flow of nourishment into the day-to-day American evolution of self-betterment; an economy that will constantly generate new and better paying jobs for an ever-growing population. At the same time our economy must provide an ever-higher standard of living, plus the social services the people want and need, as well as the men and the weapons the nation must have for its defense. Now, let's look at what you millions of American citizens have been making of our economy, how you have been creating the world's most successful and beneficial economy, and what we in the government are now doing to see that you have every possible opportunity to press forward and continue making a better life for all. All hands in our nation — labor unions and the employer, the rich and the poor, both major parties, the farmer and the city man, the woman at home and the man at his job — all have had a part in making our new productive way of life. The point now is that the peaceful evolution has resulted in a tremendous upheaval of this nation1s whole economy that really has created a different kind of nation, a unique nation of "haves" that needs an up-to-date way of thinking about itself, and up-to-date policies, in keeping with its strength and growth potential. 136 - 3 Let's look back to the turn of the century and see what las been happening, economically, since then. Only by making men a comparison can you realize how outmoded a line of thought can be, even if only a few years old, when applied to >ur dynamic economy, and how alert we must be not to let out>f-date thought and practices tie us down while opportunity )asses us by* Our total national production of goods and services now ipproaches 400 billion dollars. That is just 20 times as nuch as our national output in 1900. When you make allowance tor price rises since the turn of the century, today's national )roduction Is still about seven times what it was in 1900. Our )opulation has more than doubled since 1900, but our national output per capita -«*• production per man, woman and child in the lation — is three times what it was then. Our national income is now over 320 billion dollars. Ifter allowance again for price changes, this is seven times rtiat it was In 1900. And our Income per man, woman and child Ln the whole population is, like production, three times as nuch as In 1900. Here is the important thing about that income change since 1900. The lower and middle income groups have received ;he greatest share of our increased income. Early in the century, only 1 out of every 10 American families earned as nuch as $4,000 a year in terms of today's prices. Now almost lalf of our families earn more than $4,000 a year. Those jrith inadequate incomes for a decent living are becoming !*ewer and fewer, and more and more of them are becoming 'haves" — people who have enough money not only to live adequately, but to save besides • That is the basic economic levelopment in this country which we are trying most ferrently to keep going, and to continually improve. Let's see just how widespread and important this flow of )urchasing power to the broad base of our economy has been md will continue to be. One of the most common methods of savings is the purchase >f insurance. At the turn of the century, people in this country had taken out 14 million life insurance policies. today, with the population only slightly more than doubled, md with many people owning several policies, the number of ife insurance policies has increased nearly 18 times, to tbout 250 million. _ it _ 137 Ownership of individuals in their life insurance has increased from under 2 billion dollars in 1900 to more than 85 billion dollars today. Small investors' holdings in United States Savings Bonds, total the huge amount of 50 billion dollars. No such investment existed in 1900. Let's see some other ways in which the average man on the street in this nation has been malting himself over into an investor — a man with a real financial stake in the future such as no other average citizen anywhere ever had before. Nearly 10 percent of all American families today own stock in American corporations. At the turn of the century, this was just getting under way. In 1900, individuals had liquid savings of all types amounting to less than 10 billion dollars. Now such savings of individuals In this country total more than 235 billion dollars. Last year alone, Americans bought equipment for themselves and their homes of almost 30 billion dollars. This included things unknown to the homeowner of 1900, like 7 million radios, 7 million television sets, nearly 3-1/2 million washing machines, and a million air conditioners. These are mass investments in a better life only a nation of "haves" could make. About 25 million families own their own homes today, compared with only 7 million homeowners half a century ago, while population has only a little more than doubled in that time. About 55 percent of our families now live In homes of their own0 Nearly all the others want to. And ways and means of helping them to do so are of greatest concern in present government policy. Labor unions to which many American workmen pay dues, are also Investors0 Not so many years ago, union treasuries were low. To:'.ay many of them bulge with huge sums,:. They own banks and buildings, bonds and stocks, and investments of many kinds. These vj'a investments belonging to — and benefiting — the man in overalls0 Today more than 15 million Americans have more than 30" billion dollars invested in pension and retirement trust funds. This represents an investment of almost $2,000 per worker. Such retirement plans were practically unknown in 1900. - 5- 138 You can see from these few examples what has been happening o the ordinary individual and the ordinary family in our onderlahd economy. We need a completely new set of standards n thinking about ourselves. We are a nation of "haves," not f "have-nots". This nation's economy has grown right over, ,nd has left behind in the dust, both socialism and communism. The consequence of this brilliant human achievement in our tation is that the basic interests of the man in the overalls re today the same as the basic interests of the man in the usiness suit. Business long ago recognized this fact, and centered its ,ttention on the wants and needs of the far greater number of len who at times wear overalls. It is time that we all caught ip with the facts of life in this nation. Let's see how the man in the overalls and the man in the •usiness suit today have the same basic interests and what that •evolutionary fact means to the whole economy; In the first place these clothes are interchangeable and ;reat masses of our people wear both depending upon the day ^ the week — the time of day — and their occupation at the loment. This fact in itself illustrates the virtual removal f any gap between them. But there are many other illustraions of similarity of purpose, thought and situation. Both men have current earnings and probably savings in one orm or another. That means that both are interested in seeing he dollar keep its purchasing power. To the extent that inlation develops, both men are robbed. If you had $1,000 saved up in 1939, which you did not draw ut to use until 1953, you really took a beating. Inflation ad sneaked into your savings during those years and made off ith $478» How? Because inflationary price rises during that ime cut the purchasing value of the dollars you were saving, very minute of every day. When you drew out your $1,000 avings, inflation had stolen away with all but $522 of the urchasing power your dollars had when you put them aside in This Is a terrible thing to happen to a nation of people bo are working and sweating and scrimping to put aside money or the education of their children, the ourchase of a home, r to provide for their old age. - 6- 139 The man in the overalls and the man in the business suit often try, by purchasing insurance, to build up some security to leave" to their wives and children in the event of untimely death. It is a terrible thing to have the purchasing power of his insurance — the time that it will pay the rent and set the table or help with the education for those that are left — cut nearly in half In the short period of just 15 years. It is a heartbreaking thing for a man and woman who put aside savings in a pension or retirement trust fund as they work during their lifetime to find on retirement that inflation has robbed them of nearly half of what they had invested to live on in their declining years. We in the Eisenhower Administration have made halting inflation one of the principal goals of our Administration. In the last 2-3/4 years, the value of the dollar has changed only one-half of one cent. This means that we have kept inflation's hand out of your savings almost entirely. We want to keep inflation locked out, so that when you save — byputting money in the bank, by buying a savings bond, by buying insurance, by contributing either work or money to a pension fund or fraternal order or in any other way — you will get from your investment the same value that you toil now to put into it. The man in the overalls and the man in the business suit have at least an equal interest in this fight. But, if there is any difference between them, it Is the man in the overalls who most needs protection. He can less afford to lose. Now, it is growing more and more to be, that it is the vast sum of the many smaller savings of the man in the overalls on which our industrial and commercial system depends for its financing. The sum of all the little savings is funneled mainly into big Investments by the savings banks, the building and loan associations, the insurance companies, investment trusts, pension funds, union and fraternal organizations, and others handling the savings of the man In the overalls. Business in this country is pouring nearly 28 billion dollars of new investment Into its plants and equipment this year. That tremendous amount must come from somebody's savings. Without it, the future's new jobs will never be born, nor will we get tomorrow's increase in productivity, as the result of new and better tools of production, bought by new Investment. 140 Saving is important to the nation, and must be encouraged, not discouraged, because it strongly influences the security of the job you have, and your hopes for ever-better pay through continued increase in your productivity. Thus you can see how inflation can rob you not only of your personal savings but, in addition, steal away your pay increases and perhaps even your jobs. We must have policies that put solid ground under our dayto-day evolution of continual betterment from the bottom up. Such policies must aim at everyone, spreading the riches throughout the land. There is only one way to have everyone have more and that is to produce more« The nation's treasures of goods and services must constantly Increase, by continually increasing individual productivity, so that they can be spread ever deeper and broader throughout the whole economy. Our policies must result in giving the man in the overalls ever more and more of the same things which the man in the business suit also wants to have. And that can only be accomplished by an economy that constantly produces more of the comforts, conveniences and necessities of life. Such an economy will not only be of direct benefit here at home, but will also be a beacon of progress in the whole Free World. Our strong economy must — and can — carry the costs of fully adequate defense, and of indispensable public services, and at the same time continue Its healthy growth. But it will only be able to do so if we balance the load correctly, so that it can be carried, and carried indefinitely, without a breakdown. We have devised policies to fit our new situation and we are balancing the load. We are NOT the slave of any particular aspect of our flexible policies. We regard inflation as a public enemy of the worst type. But we have NOT hesitated, either, to ease or restrict the basis of credit when need was indicated. Under the new cooperation that exists in this Administration between the Treasury and the Federal Reserve, the full force of monetary policy has been made effective more promptly than ever before in the nation's history to better respond to natural demands. - 9- 142 We will be rising on the solid ground of these things: Savings protected against shrinkage by a stable dollar; Increased production and increased wages and earnings made possible by the investment of those savings in more, new and better tools of production; Wide use, by Americans who are both workers and Investors, of these tools of production for the creation of more jobs and new, better and cheaper goods, with ever-widening distribution among an ever-growing number of consumers as their earning power increases and the cost of the goods decline; Use of the increased income from this increased production of the things you want — NOT to pay the bill for unneeded or unwise government spending, or as tribute to inflation, but for the creation of a better life for all. We have turned our backs on artificial stimulants. We have turned our faces confidently to practical, natural methods for the creation of a better life for all of us — firm in the belief that continuation of the processes of the American evolution of self-betterment from the bottom up is second nature to our whole people. The United States is now enjoying plenty ~* in peace. Americans are breaking all records in the number of people with jobs, the high wages they are receiving, and in* the production of goods for people to enjoy. And they are enjoying this high prosperity while successfully resisting pressures toward inflation. Whether this high prosperity will continue without getting into the excesses of inflation or deflation depends in very large part upon what 166 million Americans do. It depends upon you in this room this morning, and your associates in the economic life of America. We hope for continued prosperity based, not on war scares or artificial government stimulants, but on steady spending by consumers, and investment by business. It has a broad and solid base. We have laid to rest the myth that a free enterprise system can thrive only in war. We have shown that free men in a free world can provide an abundance — can provide plenty in peace — far above the capacity of the governmentrun economies of the world. The best that government can do to strengthen our economy is to provide a fertile field in which millions of Americans can work. The continued success of our economy depends, not upon government, but upon the efforts of all the people trying to do a little more for themselves and their loved ones. It is the sura total of all these .individual efforts that makes our system superior to anything known in this world before. It is what makes America. The continued prosperity of America is peculiarly a responsibility of a group such as the petroleum industry of America. For it is from siich industries as yotirs that we constantly get the new products, and new uses for products which lead to the new jobs, higher income, and better living, which is the progress of America. From the seemingly inexhaustible spring of American research flows a stream of new ideas and new products resulting in new opportunities and new wealth for everyone. Your Industry is one which must continue te be a front-runner in nurturing progress from the spring of research. The continuance of good — arid even better — times in America is up to you. It is up to you and all the rest of the American people. If all Americans — workers, producers, businessmen, consumers, and investors — go ahead and buy and build and improve with confidence tempered with prudence, this nation will continue to be even more a nation of "haves" enjoying new peaks of prosperity in business, production, and wages, and constantly higher standards of living — for all the people. 0O0 144 *3^ ?*3 l ^ j t e : H o t o M 0 * P,^o^ooo»ooc last M U s to b© i&t#$ at ..te'fbdmX 9, 1b» details of t&iis %mm tetel « 3 M tap Total ampteft tit'tfstLm** mm as f^Bmmt «M3HMW»MI - 1,600^76,000 full at the a v w ^ e pri«& eaovm belcw) Rang© of asceptrM eeag*Utli» tttet rat© o£ discount apprat* 1#9*W ptr mm tor (§3 percent or ttat Mi. im &t th* lor i^*iee mm .jf^ua Pt*>H» I aa,2a6.:ooo: XGTfe rSAfOOO >0Q0 ,009 ,000 City Dallas 38% TOTAL |2»320,6?6*O0O |3.600»UkOQO TREASURY DEPARTMENT 14s WASHINGTON, D.C. RELEASE MORNING NEWSPAPERS, Tuesday, November 15, 1955. H-958 The Treasury Department announced last evening that the tenders for $1,600,000,000, or thereabouts, of 91-day Treasury bills to be dated November 17, 1955* and to mature February 16, 1956, which were offered on November 9, were opened at the Federal Reserve Banks on November 14. The details of this issue are as follows: Total applied for - $2,320,676,000 Total accepted - 1,600,476,000 (includes $221,827,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Average price - 99.^32 Equivalent rate of discount approx. Range of accepted competitive bids: 2.248$ per annum High - 99.507 Equivalent rate of discount approx. 1.950$ per annum Low - 99.^-22 Equivalent rate of discount approx. 2.287$ per annum (83 percent of the amount bid for at the low price was accepted) federal Reserve District Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St.Louis Minneapolis Kansas City Dallas San Francisco TOTAL Total Applied for Total Accepted $ 28,286,000 1,668,209,000 46,867,000 70,55^,000 19,322,000 ^.4,936,000 233,577,000 36,9^0,000 21,082,000 39,356,000 33,039,000 88,508,000 $ 23,286,000 1,024,859,000 36,017,000 70,554,000 19,322,000 34,436,000 173,577,000 36,940,000 21,082,000 39,356,000 33,039,000 83,008,000 $2,320,676,000 $1,600,476,000 0O0 4b / /""^ /' FOR RELEASE AT 12:30 P.M. MONDAY, NOVEMBER 14, 1955 The Alexander Hamilton Medal for distinguished leadership in the Treasury Department was presented today by Treasury Secretary Humphrey to T. Coleman Andrews, mMftrQ&%*to&& i - Commissioner of Internal Revenue. Treasury and Internal Revenue Service officials and other friends of Mr. Andrews attended the presentation ceremony at the Treasury. "During his two years and nine months as Commissioner, Mr. Andrews did an outstanding job of rebuilding the Internal Revenue Service and restoring it to public confidence," Secretary Humphrey said. "At the same time, through improvements in every phase of Internal Revenue work, he brought this very important agency to a gratifyingly high,level of operating efficiency. "It gives me pleasure to present to him the Alexander Hamilton Medal in recognition of the exceptional quality of his leadership." The medal is of gold and bears a bas-relief portrait of Hamilton, first Secretary of the Treasury. the second Treasury official to receive it. Mr. Andrews is The Commissioner, whose home is in Richmond, resigned in October to go into private business. TREASURY DEPARTMENT WASHINGTON, D.C. FOR RELEASE AT 12:30 P.M., Monday, November 14, 1955. H-959 The Alexander Hamilton Medal for distinguished leadership in the Treasury Department was presented today by Treasury Secretary Humphrey to T. Coleman Andrews, who recently resigned as Commissioner of Internal Revenue. Treasury and Internal Revenue Service officials and other friends of Mr. Andrews attended the presentation ceremony at the Treasury. "During his two years and nine months as Commissioner, Mr. Andrews did an outstanding job of rebuilding the Internal Revenue Service and restoring it to public confidence," Secretary Humphrey said. "At the same time, through improvements in every phase of Internal Revenue work, he brought this very important agency to a gratifyingly higher level of operating efficiency. "It gives me pleasure to present to him the Alexander Hamilton Medal in recognition of the exceptional quality of his leadership." The medal is of gold and bears a bas-relief portrait of Hamilton, first Secretary of the Treasury. Mr. Andrews is the second Treasury official to receive it. The Commissioner, whose home is in Richmond, resigned in October to go into private business. oOo The following transactions were made 1 B direct and guaranteed securities of the Government for treasury Inrefltaente and other accounts during the month of October, 1955! Sales $53,0<H,OOO.OQ Parckases 32«317»000»00 t3Q*£§7#OQO.OO l •M<mw*HIBS Maw *P € A Itc Jforman Assistant Chief, Investments Branch Dirision of Deposits and Inveataents L/3 TREASURY DEPARTMENT WASHINGTON, D.C £<? IMMEDIATE RELEASE, •Q c t Q'b eyrfcr7"5 >™$!tyfy fik mumy* 71 4j| *«j /vr^ /w;/etfr^K 19559 market transactions During in direct and guaranteed securities or the government for Treasury investment and other accounts resulted in net ^bHwhaoco by the 4zo, £#7.000 Treasury Department of 0O0 TREASURY DEPARTMENT WASHINGTON, D.C IMMEDIATE RELEASE, Tuesday, November 15, 1955. H-960 During October 1955, market transactions in direct and guaranteed securities of the government for Treasury investment and other accounts resulted in net sales by the Treasury Department of $30,687,000. oOo - 3•ArLj'TTliV * »-. j " -"•• • v - ' « - 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 hSh (b) and 1221 (5) of the Internal Revenue Code 19£k 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. 1*18, 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, - 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 November 25, 1955 j.n cash or other immediately available funds m or in a like face amount of Treasury bills maturing November 2j?, 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 195b. 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 prin or interest thereof by any State, or any of the possessions of the United State 54 TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Thursday, November 17, 1955 The Treasury Department, by this public notice, invites tenders for $1,600,000,000 , or thereabouts, of 90 in exchange for Treasury bills maturing $1,600,217,000 — -day Treasury bills, for cash and November 25, 1955 , in the amount of , to be issued on a discount basis under competitive and non- fcisr—-~ competitive bidding as hereinafter provided. dated November 25, 1955 , and will mature The bills of this series will be February 23, 1956 , when the face ^ 1 m 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 one-thirty closing hour,/torn o!clock p.m., Eastern Standard time, Monday, November 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 TREASURY DEPARTMENT „m.,,T|.r..,.|.»W.IHM.| I-.'... A 7 " " V " « '...JW-.g.»«T~^-r^^ WASHINGTON, D.C. RELEASE MORNING NEWSPAPERS, Thursday, November 17, 1935. H-961 The Treasury Department, by this public notice, invites tenders for $1,600,000,000, 0 r thereabouts,, of 90-day Treasury bills, for cash and in exchange for Treasury bills maturing November 25, 1955, in the amount of $1,600,217,000, to be Issued on a discount basis under competitive and non-competitive bidding as hereinafter provided. The bills of this series will be dated November 25, 1955, and will mature February 23, 1956, 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, one-thirty o'clock p.m., Eastern Standard time, Monday, November 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 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 November 25, 1955, in cash or other immediately available funds or in a like face amount of Treasury bills maturing November 25 ic 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. F1SEHT . . IXIi It. XL / S£XS A v, ILL ~ . . ' i . . a THRI THJ 0 -if tm fllT PI* I CE i a i mflMt . if T O • Hb » B is ns$m YET r ... . WLM?\ZX 4 $ FIRST, i Tl< trrseii 13 4 i fr^K-* V . IT *<'H,. U »„^^IW < IE fefe,P-A ffi t ACCIT^LAI; I .' H : RAT:. . ] IBE | •AT" o t. Li* * * i ES fMT err:: €F VMM THE -;^A • ^; FREE. I - -PEST I I -.;icutfu^ ifH I I ^CIOUS Of NBlV : * ? ,Q£ TC I " ' I THAT j/i/ >;u • £ ?•'•' < <TM f r £} Aft *•«*- ;Aji . «• : Ml. t li;rt r THE i 3 Till i- I C O F L E 1 gg&¥ BY TWO • • -,:i. i .. .-...•: I .. ! • •"•• £5? TO A BETTER PAY R '. 1 . i :. i fj I : i B i •• Utfj UVtm A GREA] • (0 H U M i i THE ^. "- IST&AT^ P EAHfUST ATTENTION RECENTLY VHXCK ARE I ' &S BE: +aliation by other countries and price wars with the prospect of ruinous rices and competition that would greatly limit our sales. So the whole thinp would be worse than useless in moving the surplus crops, * r;.q The middle way is the solution. Price supports that recognize the natural laws of supply and demand and do not try futilely to repeal them. Carefully planned restriction of production. Expanded programs of research to find new crops and new uses to aid agriculture. Cautious selling of surpluses both at $ home and abroad with &f DU8 K [ Ktll IUX • IHWSS: DOS .a/% ; /;*/ rMrm*. 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J|gf KCI I Qf A;A:AA: ALI N . | PV JL> * 5'Vi tf*f TYT'l"' i iJrf-L. X<»» W'|" A fcji'i. i«'ll- ! ~"i"~ i ... ' '< . I .£,»«.. r '"•"'; ''' • T •"•" Af I X L i , . .. .-'i w j r # y*fij\j& & -.' t... " i I 1: " 1 i LI !*'-«• PACIFIC. M PR£Si:L..r- SLI€? A ;JU M^ * f\«*l " "!'ft?-f"*.' D THE . HAL Jl CUT I: ••' IDENCY. HI. vTv *? J y I H^)ILLW rj •> S TC KOREA TO S E E 179 TREASURY DEPARTMENT Washington FOR RELEASE AT 2 P.M., EST, Saturday, November 19, 1955* H-962 Remarks by Secretary of the Treasury George M. Humphrey before the 39th Annual Session of the National Grange, The Music Hall,. Cleveland^ Ohio., at 2 P#M., Saturday, November 19, 1955 Master of the National Grange Herschel D. Newsom, State Masters and their wives, and other Grange members attending the 89th Annual Session of the National Grange t I am honored and pleased to be able to talk for a few minutes today to this session of the National Grange. I am honored because of the great influence your farm family fraternity has in the rural life of America. And I am pleased because it affords the opportunity to try to explain some of the fiscal and economic principles this Administration is attempting to follow in the best interests of our farm people and all of our 166 million Americans. After outlining some of the general principles we have been following as they affect the whole nation, I will describe how they apply to the best interests of the farm people who make up American agriculture and who are such an important part of our whole economy. On a bright afternoon just short of three years ago today I boarded by helicopter the heavy cruiser Helena off Wake Island in the mid-Pacific. Already aboard were President-elect Eisenhower, just returned from Korea, and several other appointees to the new cabinet. Mr. Eisenhower had just finished one of the missions which he had laid out in his campaign for the presidency. He had been to Korea to see for himself what, if anything, should or could be done about bringing an end to death and suffering in the war of stalemate that was dragging on and on and taking the lives of American boys month after month. Let's go back to those days for a few minutes to look at the situation then confronting this country and recall the objectives toward which we then set our sights. We on the Helena nearly three years ago were determined to restore the fullest measure of freedom and the good things that go with it to the American people. We were determined to work toward freedom from war and the cruel strains and stresses throughout the - 2- 1?8 world that threatened its very destruction, freedom from communism and corruption, and freedom from inflation and the artificial controls which throttled our economy. A moment's reflection will recall the situation both domestic and around the world which obtained as we talked on the Helena three years ago. The most pressing problem, of course, was Korea, where 33^000 American boys were killed and nearly 104,000 wounded, and where there was no end to war in sight. The war in Indo-China had been going for six years and there were no plans to bring it to an end. Although we were spending record amounts for our defense and for foreign aid, we found as we tried to be strong everywhere at once that we were diffusing our efforts to such an extent that we weren't really strong enough anywhere to be as effective as we should be. President Eisenhower on the Helena then was as determined as he is today that "mankind longs for freedom from war and from rumors of war;" and that working toward peace -- and thus toward freedom from war -- must be the primary goal of the new administration. As we surveyed the scene three years ago, there were other things that also concerned us. We saw that for many years we had been following unhealthy financial policies that induced inflation, depreciated our currency, and threatened to exhaust our credit. Our dollar had shrunk in purchasing power from 100 cents to 52 cents in 13 short years. Savings of the people had been half destroyed by cruel inflation. We found ourselves with more than $267 billion of debt. We found obligations to spend some $80 billion, with no provision for payment. We found a proposed budget left for us to spend $78 billion in our very first fiscal year with a deficit of $10 billion over anticipated revenues. We found a tax structure so high that it threatened to destroy the incentives to work and to save and to invest. We found controls needlessly strangling the economy, We found corruption and communism in too many places. - 3- 17? A constructive program was designed to bring about peace in Korea, and pressures were applied to accomplish it. These pressures were successful, and in July the armistice in Korea was achieved, to end the killing and wounding of our American youth as well as to bring welcome relief from worry and heartbreak to thousands of families back home. Freedom from war in Korea had so soon become an established fact. But there remained the greater problem of establishing better relations throughout the world. We sought to establish relations which might eventually lead to peace — a just and honorable peace for all nations. To keep strong meanwhile was prerequisite to everything else* Plans and programs for ourselves and our allies have progressed far since then with improved relations in many directions. On the fiscal and economic side, we determined early in 1953 to adopt a fiscal program which would help to make more jobs and better living for every citizen. This program involved the restoration of freedom in many fields. One of the most severe restrictions on freedom which we inherited was that of wage and price controls and allocations of materials. A difficult but prompt decision was made to lift those controls very early in 1953• As soon as it was announced, the voices of the timid cried out that it could never be done without run-away prices and further inflation wrecking the economy. You all remember the public hue and cry. Yet within a matter of weeks the hue and cry was as dead as the controls. This was the actual result rather than the disaster which our critics had prophesied. In the spring of 1953* as the prospects for a Korean armistice appeared brighter, we were faced with a new problem. Fear was voiced by some that the coming of peace and the reductions in Government spending which our program of economy was producing might lead to an upset in business and a depression. It was in peace that America grew great and accumulated the homes, industries, farms, and mines that saw us through two wars. It was wars that brought us debt and taxes and inflation. There was no reason why we should fear peace, even though there might have to be adjustments in the economy as there were swings in government spending. 176 We did get peace. We did not have a depression. In only about six months we had obtained freedom from war in Korea. We had obtained freedom from controls on the private lives and businesses of our citizens. Progress along the lines of the framework of the freedoms we had determined on the Helena to return to the people of America began to take real shape. Who wants to go back? In the spring of 1954, progress toward greater freedom for the American people was jeopardized by the prophets of doom and gloom. There appeared ill-advised spokesmen who proclaimed that our economy was in a bad way. These prophets loudly predicted that the economy was headed for serious trouble unless the executive branch should greatly increase deficit spending and embark on large emergency public-works expenditures to "stimulate the economy," The Administration resisted the pressures to move in and try to run the economy from Washington. We retained the new freedoms which we had won, with confidence in our position. We had then made tremendous savings in government expenditures over the past two years by big reductions in both government payrolls and purchasing. We were in the transition of absorbing the people who had previously been working for the government directly or making wartime goods which the government had been buying by helping them get jobs making peacetime goods for all the people to buy to improve the general scale of living. One reason it was so certain that the private economy would make the jobs to hire people previously employed by the government or by the government's spending was the tax program. Tax cuts put into effect in 1954 totaled $7.4 billion — the largest total dollar tax cut in any year in history. This tax cut left this huge sum in the hands of all of the people to buy the goods which they wanted to buy rather than in paying it in taxes to the government. Returning this huge sum of money to the people to spend for themselves was certain to result in greater purchasing and in the creation of more and better jobs for the people who used to make their living from government spending. Millions of individuals were also assisted by these great tax cuts. Every single ta xpayer in this country received a tax saving, and millions of cases of hardship existing under the previous laws were corrected so that individuals were incouraged to expand their purchases and all their activities. 175 - 5The great bulk of the tax savings,, went directly to individuals. The Government can help best to strengthen the economy by helping to provide a fertile field and sound basic conditions in which 166 million Americans can work. The success of our economy depends not upon government but upon the efforts of all the people all trying to do a little more for themselves, trying to better themselves and their loved ones. It is the cumulative effect of all this individual effort, each for himself, thinking, planning and working to improve his own position in his own way, that makes Our system superior to anything ever known in this world before. That's what makes America. Prosperity in America cannot be had just by stimulating consumption, essential as that certainly is. Unemployment in the heavy industries can be just as real a problem. To solve this, the people must buy the production of heavy industries. This means more investment because it is the investors who buy the heavy goods. That is what makes the jobs in the heavy goods industries of America, and that is what creates new plants and new tools and new jobs for the ever-growing work force of this expanding country. That is what control of inflation and the tax revision bill helped to accomplish. More important perhaps than any other single thing in developing a healthy economy with high purchasing power, high employment, and good times is widespread general confidence in the integrity of the Government, in its security, in its plans and programs, and in the stability of its money. The cost of living which had doubled during the preceding thirteen years has increased less than one per cent in the past three years. The dollar has been stable and is the most prized currency in all the world. Pensions and savings have been protected. Investment is encouraged and we at long last are on the way to a balanced budget for the government. It is this course of government conduct, so carefully planned and so rigidly adhered to, that inspires the great confidence of the people and which has brought us so far from the predictions of doom and gloom into the greatest volume of business and highest employment of people in the long history of this country. Of great importance is our consistent program of economy in government spending. Since the 1953 fiscal year government spending has been cut by $10-1/2 billion. Reductions have been made in spending in many places. In defense, while reductions have been made, we are at the same time developing a better, more efficient defense structure. Today, at less cost, we have an armed strength more efficient and better organized than ever before. We have the great advantage of guidance from the foremost military leader in this world and under President Eisenhower's great leadership, the defense of America is today stronger in peacetime than at any previous moment in our history. The unequaled present prosperity of America, except in agriculture, is well known to us all. We have set nevi records in almost every way in which good times can be judged and measured. Employment reached 65.5 million for the first time in history. Unemployment has declined to 2.1 million. And at the same time there has been an Eisenhower "extra1'' for the benefit of all Americans. This Eisenhower extra has been created in this sound way. The fact that there has been practically no change in the cost of living since this administration has been in office means that the wage-earners of America have now been getting real wage increases instead of the "cost of living" wage increases which had previously been the order of the day. So they have more money to spend for food, for better living, for the products of both farm and factory than ever before in history. Who wants to go back? Now what about more freedom for the farmer? The other day I received a letter from a mid-western farmer's wife in which she said: "I see by the papers that you made a speech asking, 'who wants to go back?' If you talked to some of the farmers, as well as the farm machinery people, in this area you would very soon find out who wants to go back." I have thought a great deal about 'what that good farm lady wrote. I sense in it all the concern and anxiety of a farm family that is experiencing the squeeze of declining selling prices and the rise in some prices of the things they buy, I think I can understand a little of the puzzlement and concern that beset her. Why shouldn't she and her family be sharing more equitably in the country's unprecedented good times? Yet I wonder if she and her family — and the farm families of America generally — really want to go back. The peak of farm prices was in February, 1951. That was during the war in Korea. I doubt very much that anyone wants to go back to those high prices based on war. I do not believe that this farmer's wife nor anyone else wants that with all its heartache and suffering and fear for every family. Yet substantially less than half of the decline in farm prices has occurred since the end of that war. 173 - 7What she wants, and what this administration wants for her, is to share more equally with other Americans in the abundance we as a nation are enjoying* She is proud of the work that she and her family do to help provide the food and fiber needs of our country. She feels that;somehow this basic part of the economy is not in step with prospering America, She is right. But does she want to go back to the discredited program that built up the huge price-depressing surpluses which today deny our farmers better returns for what they produce? Does she want to go back to a program from which today a majority of our farmers are reaping not benefits but injury? Does she want to go back to a program that can only perpetuate and make worse all her present difficulties? Does she want to go down that deadend road of Government regimentation of our independent farm folk which is the sure end result of that old program? I doubt she wants to go back to that old road. These price-depressing surpluses operate In agriculture as they would in any other industry. Imagine the situation if a whole year's production of automobiles was in storage around the country in government stockpiles. Or if there were millions of government-owned radio or TV sets or refrigerators in government storage. These surpluses overhanging the markets would certainly demoralize them, and it is impossible to imagine our present prosperity in those lines under such conditions. So, too, today our agricultural surpluses plague the path ahead to a fair break for our farmers. We must stop adding to those surpluses and we must work at cutting them down. After Korea and subsequent cutbacks in defense spending, the industrial side of our economy went through a readjustment. Reduced production, particularly in heavy industry began in 1953 and continued during a considerable part of 1954 as the inventory of excess goods stimulated by the Korean war was being absorbed by sales in excess of production. It was during this period that the false prophets of doom and gloom cried loudest of coming depression and despair. But as the excess supplies were used up, production and employment began to pick up and the industrial side of our economy began the movement toward its present record prosperity. America's agriculture is still in its postwar adjustment, slowed down by wartime rigid supports and ever-increasing Government surplus stockpiles which have made the process even more difficult and drawn out because of the restricted ability of agriculture to bring production into line with changing demands. There is no easy solution, but' there is only one objective that will ever wholly succeed. Production must ultimately become reasonably balanced with demand and those overhanging pricedepressing, disposed of.increasing surpluses must be absorbed and ultimately - 8- 172 Surely continuation of the plan that got us into all this trouble is not the answer. While we still press forward to gain our place in world markets, it is obvious that wholesale dumping indiscriminately abroad Is no answer. That would be not only distressing to our foreign relations with friendly nations with whom we are joined for our common defense, but it would surely result in retaliation by other countries and price wars with the prospect of ruinous prices and competition that would greatly limit our sales. So the whole thing would be worse than useless in moving the surplus crops. The middle way is the solution. Price supports that recognize the natural laws of supply and demand and do not try futilely to repeal them. Carefully planned restriction of production. Expanded programs of research to find new crops and new uses to aid agriculture. Cautious selling of surpluses both at home and abroad with strenuous efforts continuously made to increase consumption everywhere. All coupled with a dynamic program of soil conservation and improvement of our farm lands for future generations. The growth of our population will be of tremendous help. Three million more mouths to feed each year will eat into both limited current production and surplus at an amazing rate as time goes on. Our increasing scale of living means that 166 million of us will all eat more and better as each year passes by. Our growing industry with its continuously increasing jobs to be filled will continue to offer good opportunities for farm boys and girls to work in industry if they choose to do so rather than raising more cotton and wheat than can be consumed. The farmer is equally interested with all the rest of us in prosperity for industry. Its workers are his customers. The more they earn, the more of his crops they can buy. And the more industry advances in its techniques and inventions the better and more effective tools for farming will be available for him to have. We are all bound together. It is not always evenly balanced, but that is the objective we must always strive to attain. One fact we should never forget; This transition has been helped because the industrial economy has been operating at high levels. We must keep it so. Meanwhile we must continuously adopt and apply the most effective means to cushion the hardships and ease the strains of the transition for the people on the farms. We must do this while we continue to make progress toward our true objective of a balanced farm economy, unhampered by excessive stocks of crops which destroy the very markets they were created in false hope to help. -9- 1?i President Eisenhower said after his recent meeting in Denver with Secretary Benson that "no problem on the domestic front is more demanding of our understanding and best ideas" than that facing our farmers. The President's great concern is illustrated by the fact that this agricultural statement was his first personal statement on a domestic matter issued from his hospital bed in Denver. In it the President cited the need for "new steps" to deal with the farm problem so as "to speed the time when farm production and markets are in balance at prices that return to our farmers a fair share of the national income." I can assure you that there is the fullest realization at the highest levels of the Administration not only of the tremendous importance of our farm people to the welfare of the whole nation and national policies but also of the need to help farm people share more fully in the expanding prosperity which the rest of the economy enjoys. To do this we must avoid going back to the policies that have failed in the past, policies which were bailed out before only by two ghastly wars and a terrible drought. We must go forward, building on the foundation already laid, to hasten the transition to a better day for farming and better returns for farmers. This means a many-sided program designed to cut down the surpluses, adjust production to markets, expand markets at home and abroad, and spur research into new uses of farm products. There are two related matters to which the Administration has been giving a great deal of earnest attention recently which are of interest to you. First, I should like to mention the Treasury's position in regard to taxation of cooperatives. We made a written suggestion to the Congress on this subject last July which I recommend you read. It has been charged by some critics that we desire to tax accumulated savings first at the corporate rate in the hands of the cooperative and later to re-tax the same savings In the hands of the patrons of cooperatives as income to the individual. This is not true. The Treasury does not favor double taxation. We are interested only in obtaining a means of taxing the income of a cooperative as income either to the cooperative or to the individual wherever the income is held but not to tax at both levels. That is only fair and proper. It is to the end only of effectively providing that single tax, such as we envisioned by the Act of Congress in 1951* that we have suggested to the Congress that action might properly be considered. Second, I should like to touch upon the Cabinet report on transportation which I know is of interest to you because of the Grange's role in getting the Interstate Commerce Commission originally established to check transportation monopoly many years ago. The main point of the Cabinet report was that all forms of transportation be allowed more freedom to voluntarily compete so as relinquished that cheaply all the asas American possible. freedom public increased. Needed might safeguards have thewould best not transportation be - 10 - 170 I am no expert on agriculture and I am conscious of being in the presence of experts. But I am sure that Secretary Benson is a true and devoted friend of the farmer,- with the wisdom and the courage to do whatever is soundly required. And I know that in his intensive scrutiny of new ideas for strengthening the present program, Ezra Benson is seeking help from every farmer and every true friend of farmers. In that search he has the full support and interest of the whole Administration, Only the best efforts and the best ideas of all of us will be good enough. I am confident that we Americans have the resourcefulness and the character to work our way out of this problem as we have out of others. To do so we must think clearly with steadfast adherence to American ideals. There is no trick way to do it, but there is a right way to do it, consistent with our values and traditions, I know that working together we will find that way. And so we return to a review of our objectives as we outlined them three years ago for the benefit of all Americans, We now have a sound and stable dollar. We have reduced deficit spending until now we can hope that a balanced budget this year is within our grasp. Our credit has improved by the manner in which we have handled the debts we already owe. Taxes have been reduced for every single taxpayer in this country. Free markets in America have been reestablished without price controls. Inflation and its cruel theft of savings is halted and the savings of the old, their pensions and insurance, are now being protected. America is again becoming the land of unbounded opportunity for the young where only your own ambition and ability can limit your rise to any height in this fair land. Progress, you must admit, is well on its way. There is plenty yet to do but much has already been accomplished. The turn has been completely made. America now faces in a new improved direction. There is no reason to go back. Let's all go forward. 0O0 //-f^ J I * iI .4. w W RELEASE MOHSIHG NEWSPAPERS, Tuesday, Hovember 22, 1955. The Treasury Department announced last evening that the tenders for $1,600,000,00* or thereabouts, of 90-day Treasury bills to be dated November 25, 1955, and to mature February 23, 1956, which were offered on November 17, were opened at the Federal Reserve Banks on November 21. The details of this issue are as followst total applied for - $2,17k,O73,O00 total accepted - 1,600,093,000 (Includes $231,087,000 entered on a noncompetitive basis and accepted in fall at the average prise shown below) Average prise - 99.390 Equivalent rate of discount approx. Z»kfflt per amim Range of accepted competitive bids: (Excepting three tenders aggregating $780,000) High - 99-iiOO Equivalent rate of discount 2.ltfX# per annua Low - 99.375 * s e e £,500* » • (5? percent of the amount bid for at the lew price was accepted) Federal Reserve District total Applied faa» total Accepted Boston Hew lork Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minaeapclis Kansas City Bellas San FTanelseo f 39,«A»OQO 1,526,AMQ0 32,1*26,000 75,56*,O0O 13,286,000 t7,7O6,00O till, 767,000 20,63*1*000 11,985,000 b7,969»O0O W*,196,0Q0 81,355,000 $ 37,50k,OOO 1,017,031,,000 17,k2£,,000 71,1*1,000 18,286,,000 27,706,,000 202,807),000 20,63*1,,000 1S,9®5;,000 1*7,969,,000 kt,Qk6,,000 §1,351,,000 $t,17fc,073,O00 #1,600,093,000 V fa- TREASURY DEPARTMENT WASHINGTON, D.C. tELEASE MORNING NEWSPAPERS, fresday,--'November 22, 1955. H-963 The Treasury Department announced last evening that the tenders for $1,600,000,00 >r thereabouts, of 90-day Treasury bills to be dated November 25, 1955, and to ma February 23 > 1956, -which were offered on November 17, were opened at the Federa teserve Banks on November 21. The details of this issue are as follows; Total applied for - &2,17U,073,000 Total accepted - 1,600,093,000 (includes $231,087,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Average price . - 99.390 Equivalent rate of discount approx. 2.1*1*0$ per annum Range of accepted competitive bids: (Excepting three tenders aggregating $780,000 High - 99.1*00 Equivalent rate of discount 2.1*00$ per annum n Low - 99.375 " " •• 2.500$ « (57 percent of the amount bid for at the low price was accepted) Federal Reserve District Total Applied for Total Accepted Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco $ 39,65U,000 1,528,511,000 32,126,000 75,56U,000 18,286,000 27,706,000 2ljl, 787,000 20,63U,000 15,985,000 1*7,969,000 1*U,196,000 81,355,000 $ $2,17li,073,000 $1,600,093,000 37,5ol*,ooo 1,017,031,000 17,1*26,000 71,26)4,000 18,286,000 27,706,000 202,887,000 20,631*, 000 15,985,000 1*7,969,000 1*2,01*6,000 81,355,000 '« - 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 1*51* (b) and 1221 (5) of the Internal Revenue Code of 1951* 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. i*l8, 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 - 183 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 December 1, 1955 , in cash or other immediately available funds or in a like face amount of Treasury bills maturing December 1, 1955 Cash xx££ and exchange tenders will receive equal treatment. Cash adjustments will be made 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 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 prin or interest thereof by any State, or any of the possessions of the United State 184 KMM TREASURY DEPARTMENT Washington y^ / . FOR RELEASE, MORNING NEWSPAPERS, Wednesday, November 23. 1955 _ iix The Treasury Department, by this public notice, invites tenders for $ 1,600,000^000 , or thereabouts, of 91 -day Treasury bills, for cash and in exchange for Treasury bills maturing December 1. 1955 t in the amount of $ 1.600.01*9.000 > to be issued on a discount basis under competitive and nonxxx competitive bidding as hereinafter provided. The bills of this series will be dated December 1. 1955 * &nd will mature March 1, 1956 , when the face ife£ m 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 one-thirty closing hour,/*WH o'clock p.m., Eastern Standard time, Monday. November 28f 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, Wednesday, November 23, 1955. H-9o4 The Treasury Department, by this public notice, invites tenders for $1,600,000,000, or thereabouts, of 91-day Treasury bills, for cash and In exchange for Treasury bills maturing December 1, 1955, in the amount of $1,600,049,000, to be issued on a discount basis under competitive and non-competitive bidding as hereinafter provided. The bills of this series will be dated December 1, 1955, and will mature March 1, 1956, 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, one-thirty o'clock p.m., Eastern Standard time, Monday, November 28, 1955. Tenders will not be received at the 4 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 andtBranches, 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 December 1, 1955, In cash or other immediately available funds or in a like face amount of Treasury bills maturing December 1, 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 195^ 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. DRAFT 11-22-55 ^... ^ ^ 1/ FOR IMMEDIATE &$LEASE (Date) Laurence B, Robbins, Assistant Secretary of the Treasury, in charge of liquidation of the Reconstruction Finance Corporation, today delivered to Secretary fferirifflffjftg^^ Humphrey the Corporation^ check for $100,000,000. This represented additional proceeds derived from the liquidation of RFC assets. Some of the larger items contributing to the total were a l&m.repayment of $28,362,000. from the Detroit Steel Corporation, $17,748,000. from the sale of notes of the Hidalgo Chemical Company, and $12,000,000. in retirement of preferred stock of The Trust Company of New Jersey, JU^^ £?H?y H • & > Since the start of RFC Hqfrbdation on September 28, 1953, a total of $935,875,000 has been paid into the Treasury from liquidation of assets and earnings from the lending, synthetic rubber and other programs formerly conducted by the Corporation. There remains approximately $158,000,000 in RFC loans and securities still to be liquidated* ***•*»#* 7 TREASURY DEPARTMENT WASHINGTON, D.C. IMMEDIATE RELEASE, Wednesday, November 23, 1955. H-965 Laurence B. Robbins, Assistant Secretary of the Treasury, in charge of liquidation of the Reconstruction Finance Corporation, today delivered to Treasury Secretary Humphrey the Corporation's check for $100,000,000. This represented additional proceeds derived from the liquidation of RFC assets. Some of the larger items contributing to the total were a loan repayment of $28,362,000 from the Detroit Steel Corporation, $17,748,000 from the sale of notes of the Hidalgo Chemical Company, Tulsa, Okla., and $12,000,000 in retirement of preferred stock of The Trust Company of New Jersey, Jersey City, N.J. Since the start of RFC liquidation on September 28, 1953, a total of $935,875,000 has been paid into the Treasury from liquidation of assets and earnings from the lending, synthetic rubber and other programs formerly conducted by the Corporation. There remains approximately $158,000,000 in RFC loans and securities still to be liquidated. 0O0 188 H\ I- s \JV B3OTIATI RELEASE, Friday, Ifovember 25» 1955. ( The Treasury Department announced today that the subscription books will open on Monday, Hovestber 28, fbr an optional exchange of its December maturities into 2-5/8 percent .one-year Treasury Certificates of Indebtedness or 2-7/8 percent ?&* '- **.- — ^ %^t-^-""Treasury Motes, maturing W ^ | 5j/f i f f • Cash subscriptions wall not be received. 0 These securities will be offered in exchange for $12,212 million of securities which will become due on December 15. These securities consist of $5,359 million of 1-l/U percent certificates of indebtedness and $6,853 million of 1-3A percent Treasury notes. Holders of the aaturing securities will have the option of exchanging for either of T jfajrf^ the issues now offered. 4^^^^4^j^^ ^Ke new certificates and the new notes will be dated BeeenDsr 1, 1955, and exchanges will be made at par with an adjustment of interest as of that date. Delivery of the new securities will be wade on <e%<^^&s December 8, ox-^n^Jj^ex^a^iot^saW following acceptance of the ^securities to be exchanged. Coupons dated December 15, 1955, should be attached to the certificates and notes to be exchanged, and accrued interest to December 1, 1955, will be paid in each case following weepfcance -o^yie-secus4*iee~-te-%e--^x^a«ged> ( K , 4v ^c^^ P^. The subscription books will be open three days for this exchange offering. Any subscription for either issue addressed to a Federal Reserve Bank or Branch, or to the Treasurer of the United States, and placed in the mail before midnight Wednesday, Hovember 30, will be considered as timely. After completion edt this refunding ^e-Treasury will-offer for cash a mmUT^iwa^r-of Tax Anticipation o^Jpft^ions to mature next March to meet curref^needs.: - "~* TREASURY DEPARTMENT WASHINGTON, D.C. IMMEDIATE RELEASE, Friday, November 25, 1955. H-966 The Treasury Department announced today that the subscription books will open on Monday, November 28, for an optional exchange of its December maturities into 2-5/3 percent one-year Treasury Certificates of Indebtedness or 2-7/8 percent two and one-half year Treasury Notes, maturing June 15, 1958. Cash subscriptions will not be received. These securities will be offered in exchange for $12,212 million of securities which will become due on December 15. These securities consist of $5*359 million of 1-1/4 percent certificates of indebtedness and $6,853 million of 1-3/4 percent Treasury notes. Holders of the maturing securities will have the option of exchanging for either of the Issues now offered. The new certificates and the new notes will be dated December 1, 19553 and exchanges will be made at par with an adjustment of interest as of that date. Delivery of the new securities will be made on December 3, following acceptance of the securities to be exchanged. Coupons dated December 15, 1955, should be attached to the certificates and notes to be exchanged, and accrued Interest to December 1, 1955* will be paid in each case on December 8. The subscription books will be open three days for this exchange offering. Any subscription for either issue addressed to a Federal Reserve Bank or Branch, or to the Treasurer of the United States, and placed in the mall before midnight Wednesday, November 30, will be considered as timely. 0O0 Statement by V. E&ndolph Burgess, trader Secretary of the treasury, before the Subeomiitee on lousing of the Senate Banking end Currency Committee, November 28, 1955 The freasury is vitally interested In any development that effects the value of the dollar. Bebt management operations are also influenced by any large demand for funds such as arises from building. This year there has been mounting evidence that the volume of residential building has been exceeding not only the volume of ®®®&y availabl from norasl sources for mortgage lending, but also the availability of labor and building materials. Building aateria! costs *i0ce mid-1954 ha« **** W Dy^XB pereeat under the Sjapaet of the tremendous increase in new housing starts* If smteri and labor are available only et increasing prices, the inevitable result is a higher-priced house. In the final analysis, it is the home buyer who suffers. Continued increase in the cost of homes could sharply liait the future market for houses, and liait our progress toward improved housing standards for our people. Accordingly, the Treasury has bees syi^pathetic to the various actions taken by the Federal Housing Administration, the veterans Administration, the Federal Home I*oan Banks, and the Federal Reserve System which h&ve been desi to protect the dollars of the hose builders $&& hose owners and others. ^.IflpetrHiniy, ^mmsiey for home mortgages must come from the savings of the people. In times like these, with business activity straining at eegac we cannot run the inflationary risks of manufacturing raoney through bank cre to encourage e. level of housing starts that probably could not be sustained because of shortages of labor and materials. That would only result in furthe price increases. TREASURY DEPARTMENT Washington 191 Statement by W. Randolph Burgess, Under Secretary of the Treasury, before the Subcommittee on Housing of the Senate Banking and Currency Committee, November 28, 1955 The Treasury is vitally interested in any development that affects the value of the dollar. Debt management operations are also influenced by any large demand for funds such as arises from building. This year there has been mounting evidence that the volume of residential building has been exceeding not only the volume of money available from normal sources for mortgage lending, but also the availability of labor and building materials. Building material costs since mid-1954 have moved up by about 10 percent under the Impact of the tremendous increase in new housing starts. If materials and labor are available only at increasing prices, the inevitable result is a higher-priced house. In the final analysis, it is the home buyer who suffers. Continued increase in the cost of homes could sharply limit the future market for houses, and limit our progress toward improved housing standards for our people. Accordingly, the Treasury has been sympathetic to the various actions taken by the Federal Housing Administration, the Veterans1 Administration, the Federal Home Loan Banks, and the Federal Reserve System which have been designed to protect the dollars of the home builders and home owners and others. Money for home mortgages must come largely from the savings of the people. In times like these, with business activity straining at capacity, we cannot run the inflationary risks of manufacturing money through bank credit to encourage a level of housing starts that probably could not be sustained because of shortages of labor and materials. That would only result in further price increases. H-96? oOo 1 GO JL REI£ASB HQRMINa ISfSPIFFS, Tuesday, Hovesiber 29, 1955* \J t- -I - fi $ The Treasury Bepartoeat announced last evening that the tenders for $1,600,000,08 or thereabouts, of 91-day Treasury bills to be dated December 1, 1955, and to mature Harch 1, 1956, which were offered on lovember 23, mre opened at the Federal geserro Banks on November 28* the details of this issue are as follows: Total applied for - 12,233*1*75,000 Total accepted - 1,601,028,000 (includes #21^,078,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Average price - 99-381 iqaivalefst rate of discount approx* 2mh$Q$ per annas Bange of accepted competitive bids: (i^xcepting one tender of $900,000) Ugh - 99.1*00 Equivalent rate of discount approau 2 .371$ per annum Low - 99.J6S « * « » • 2.$Q0£ * • (7 percent of the amount bid for at the low price was accepted) total spited for Federal Reserve District Sew lork Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco $ 33,032,000 1,583,9146,000 27,275,000 5kf33ib000 15,785,000 31,097,000 311,026,000 16,636,000 13,133,000 32,500,000 31,1*65,000 63,21*6,000 WML |2,213,1*75,000 (UL total | 28,032,009 1,035,1*00,000 12,275*000 SkSfeooo 15,785,ooo 30,911,000 267,776,C^0 16,1*50,000 12,85^,(^0 32,500,000 31,W5t©00 63,2J|6,QQQ $1,601,028,000 TREASURY DEPARTMENT mmMftmiJ.^\.w&j«^'miMimuE<m>niiiiii.iMw.mi*a~*~ WASHINGTON, D.C. ffilEASE MORNING NEWSPAPERS, Caesday, November 29, 1955. H-968 The Treasury Department announced last evening that the tenders for $1,600,000,000, 3r thereabouts, of 91-day Treasury bills to be dated December 1, 1955, and to matu iforch 1, 1956, which were offered on November 23,' were opened at the Federal Re 3anks on November 28. The details of this issue are as follows: Total applied for - $2,213,1*75,000 Total accepted - 1,601,028,000 Average price (includes $2lU,078,000 entered on , a noncompetitive basis and accepted in full at the average price shown below) - 99.381 Equivalent rate of discount approx. 2.U5o$ per annum Range of accepted competitive bids: (Excepting one tender of $900,000) High Low - 99.U00 Equivalent rate of discount approx. 2.371$ per annum - 99*36Q '« « •« « II 2.5005? «» « (7 percent of the amount bid for at the low price was accepted) Federal Reserve District Total Applied for Total Accepted Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco $ $ TOTAL 33,032,000 1,583,9I|6,000 27,275,000 5U,33U,000 15,735,000 31,097,000 311,026,000 16,636,000 13,133,000 32,500,000 28,032,000 1,035,100,000 12,275,000 5H,33U,ooo 15,735,000 30,911,000 267,776,000 16,U50,000 12,85U,000 32,500,000 3i,U65,ooo 3l,U65,000 63,21+6,000 63,2U6,000 J2,213,U75,000 $1,601,028,000 Comparison of principal items of assets and liabilities of national banks - Continued (In thousands of dollars) ___ l j , Oct. 5, j 1955 j t LIABILITIES deposits of individuals, partnerships, and corporations. Demand 54,590.107 Time 25.077.012 Deposits of U. S. Government 2,353.373 Postal savings deposits 13.103 Deposits of States and political subdivision 6,699.178 Deposits of banks 8,661,764 Dther deposits (certified and cashiers' checks, etc.) 1,395.499 Total deposits 98,790,036 Bills payable, rediscounts, and other liabilities for borrowed money. 702,71? Hher liabilities 1,481,874 Total liabilities, excluding capital accounts 100,974,629 CAPITAL ACCOUNTS Capital stock: Preferred 4,176 g Common »i?ft?3 Total 2,mtel urplus S,W.b» hdivided profits 1,489,989 eserves 267,721 1 Total surplus, profits, and U.S.Gov Loans ATIOS: Capital, Total reserves capital A tdiscounts aoooxoits capital liabilities securities accounts to accounts to total total to andtotal deposits.. assets... assets 108.882.495 7.907.866 5,467,3gg Percent 37*73 31*33 8.00 t lIncrease or decrease .Increase or decrease June 30, , Oct. 7. > since June 30. 1955 * since Oct. 7. 195** 1955 8 1954 : Amouni sPerceni ^Amount xperoeni **. %. 1.64 -554.329 -1.01 .46 658,092 2.70 -25.11 -8.0ei.582 - ^ • 2 J -.05 57 .44 53.711.457 24,963.347 3.142,410 13.110 55.144,436 24,418,920 4,374,955 13,046 878.650 113,665 -789.037 -7 7.287.1*12 8,316,961 6,*I80,477 10,127,696 -587.964 3^.803 -8.07 218,701 4.15 -1.465,932 3.37 -l4.47 1.498.499 98,932,926 1.320**09 101,880,029 -103.000 -142,890 -6.87 75.000 *-7l4-3,089,993 5.68 -3*03 71.600 1,320,834 233.478 1.733,972 631,119 161,040 100,325,360 103.847,479 6^9,269 3.?46 g.ffi.fa) 2>23,39o 3.698,464 1,347.797 264,330 4,602 g.»yfff 2,394.48b 37^558 1,540,254 286,683 108,059.347 g'gO'Sgl 7.733.987 Percent 3§.§9 32.19 7*82 111,759,810 5.517,845 7.912.331 Percent 33*51 35*71 7*77 881.45 12.19 469,241 -252.098 200.98 -l4»54 .65 -e,872,850 -2.77 ?30 l6,8Jl 17,101 H7L55 142,192 3.391 5.83 .70 .?! 35 10.55 1.28 -426 -9.2 46,437 l.S 4o75ll1^ iS^I ^ -50,265 -3.2 -18,962 -6.6 8g3,l48 156.778 173.879 MOTBi Minus sign 2.95 2.25 .76 denote* -2.877.315 -50.476 -4,465 deor^a. * w « M ».2 -.0 -.S *—* .! 3 Statement showing comparison of principal items of assets and liabilities of active national hanks as of October 5, 1955, June 30, 1955 and\ October 7, 1954 (in thousands of dollars) _ — : l *«•> K T™* *n fi«* y 'increase or decrease •Increase or decrease : °?** *• * * ? ? *• : °%l tsince June 30, 1955 -•too* Oct. 7. 1954 •W9 , WOO 5 •**:>"* s Amount iPeroent : Amount ;Percent 106 4,721 4,751 4,827 -22 ~ : of hanks ASSETS >mmercial and industrial loans >ans on real estat LI other loans, including overdrafts Total gross loansreserves Less valuation Net loans 16,697.696 10,670,220 14,314,319 4l,682,235 598,672 41,083,563 41,083,563 15.799.91? 10,434,934 13.901.699 *K>.136,552 593.048 ' 39.543.504 39.543,504 , S. Government securities. Direct obligations 34,106,314 34.778.270 Obligations fully guaranteed 4,037 2.755 Total XT. S. Securities 34.110.351 34,781,025 ^ligations of States and political subdivisions 7.145,936 7,026.071 bher bonds, notes and debentures.... 1,986,499 2,002,463 >rporate stocks, including stocks of Ped. Reserve banks 212,872 211,795 Total securities 43,455,658 44,021,35^ Total loans and securities 84,539.221 83.564.858 irrency and coin. 1.358.591 1,380,655 aserve with Ped. Reserve banks 11,366,869 10,987,394 ilances with other banks..... 10,051.446 10,587.406 Total cash, balances with other banks. Including reserve balances and cash items in process of collection. 22.776.906 22.955.455 fcher assets. 1,566,368 1,539.034 Total assets..... 108,882,495 108.059,347 111,759.810 823.148 15.868,226 897.777 9.465.267 235.286 12,695.779 412,620 38.029.272 1,545,685 583.260 5.624 " ;,624 37,41*6,012 l,5**0.059 37.446,012 1,5^ 5.68 2.25 2.97 3.85 .95 .; 3^89* 829,470 1.204,9^3 1.6l8,5*K> 3.652,963 15.412 5.23 12.73 12.75 9.61 2.64 3.637.551 9.71 39.910,958 3.836 39.914,794 -671.956 1.282 -670.674 -1.93 46.53 -1.93 -5.804,644 201 ~5.804.1<43 -14.54 5.24 -14.5% 7.339.866 1,925.8*K> 119,865 -15,964 1.71 -.80 -193.9JO 60,6-59 -2.64 3*15 215.636 49,396,136 86.842.l48 1.323.59? 12,353.834 9.699.058 1,077 -565.696 974.363 -22,064 379.475 -535.960 .51 -1.29 1.17 -1.60 3*45 <-5.06 -2.764 -5.940.478 -2.302.927 34,992 -986,965 352,388 23.376.**91 -178.549 1.541.171 27.334 .76 -2,877.315 -2.57 -.78 1.78 -599.585 25*197 »»1.28 -12.03 -2.65 2.64 -7.99 3.63 v~* «ffi56 1.63 - 2- 1 QC modernization and installment cash loans, and single-payment loans) amounted -Lwv to $8,400,000,000, an increase of nearly 1 percent since June. The percentage of net loans and discounts to total assets on October 5» 1955 was 37.73 ia comparison with 36.59 in June and 33.51 iu October 1954. Investments of the "banks in United States Government obligations on October 5, 1955 aggregated $34,100,000,000 (including $4,037,000 guaranteed obligations), a decrease of $700,000,000 since June. These investments were 31 percent of total assets. Other bonds, stocks and securities of $9,300,000,000, which included obligations of States and political subdivisions of $7» 100,000 were $100,000,000 more than in June. Total securities held amounting to $43,500,000,000 decreased $600,000,000 since June. Cash of $1,400,000,000, reserve with Federal Reserve banks of $11,400,000,000, and balances with other banks (including cash items in process of collection) o $10,000,000,000, a total of $22,800,000,000, showed a decrease of $200,000,000 since June. Borrowed money of $703,000,000 showed an increase of $631,000,000 since June and $469,000,000 since October a year ago. The capital stock of the banks on October 5, 1955 was $2,HOO,000,000, including $4,000,000 of preferred stock. Surplus was $3,700,000,000, undivided profits $1,500,000,000 and capital reserves $300,000,000, or a total of $5,500,000,000. Total capital accounts of $7,900,000,000, which were 8 percent of total deposits, were $200,000,000 more than in June when they were 7.82 percent of total deposits. TREASURY DEPARTMENT Comptroller of the Currency Washington RELEASE MORNING NEWSPAPERS. r-_ Monday, December 5> 1955- H-9o9 The total assets of national banks on October 5» 1955 amounted to nearly $108,900,000,000, it was announced today by Comptroller of the Currency Ray M. Gddney. The returns covered the 4,721 active national banks in the United States and possessions. The assets were $823,000,000 more than the amount reported by the 4,751 active banks on June 30, 1955» the date of the previous call. The deposits of the banks on October 5 were $98,800,000,000, a decrease of §143,000,000 since June. Included in the recent deposit figures were demand deposits of individuals, partnerships, and corporations of $54,600,000,000, which increased $880,000,000, and time deposits of individuals, partnerships, and corporations of nearly $25,100,000,000, which increased $114,000,000. De- posits of the United States Government of $2,350,000,000 decreased $800,000,00 since June; deposits of States and political subdivisions of $6,700,000,000 de creased $600,000,000, and deposits of banks amounted to $8,700,000,000, an increase of $345,000,000. Postal savings were $13,100,000 and certified and cashiers1 checks, etc., were $1,1(00,000,000. Net loans and discounts on October 5, 1955 were $41,100,000,000, an increase of $1,500,000,000 since June. Commercial and industrial loans of $16,700,000,0 were up $900,000,000 since June, and loans on real estate of $10,700,000,000 w up $235,000,000. Retail automobile installment loans increased $256,000,000 to $3,100,000,000, and other types of retail installment loans amounting to $1,188,000,000 increased $23,000,000. Loans to brokers and dealers in securiti and other loans for the purpose of purchasing or carrying stocks, bonds, and other securities increased $70,000,000 to $1,648,000,000. Other loans, includi loans to farmers, loans to banks, and other loans to individuals (repair and TREASURY DEPARTMENT Comptroller of the Currency Washington 201 RELEASE.MORNING NEWSPAPERS n^Q Monday,, December ft, 1953. H-yoy The itotal asset* «cf national banks on October 5, 1955 amounted to nearly $108,900,000,000, it was announced today hy Comptroller of the Currency Ray M. Gidney, The returns covered the 4,721 active national banks in the United Spates m& possessions. The assets were $823,000,000 more than the amount reported by the 4,751 active banks on June 30, 1955, the date of the previous call. The deposits of the banks on October 5 were $98,800,000,000, a decrease of $143,000,000 since June. Included in the recent deposit figures were demand deposits of individuals, partnerships, and corporations of $^600,000,000, which increased $880,000,000, and time deposits of individuals, partnerships, end corporations of nearly $25,100,000,000, which increased $114,000,000. Deposits of the United States Government of $2,350,000,000 decreased $800,000*000 since June; deposits of States and political subdivisions of $6,700,000,000 decreased $600,000,000, end deposits of banks amounted to $8,700,000,000, an increase of $345,000,000. Postal savings were $13,100,000 and certified and cashiers1 checks, etc., were $1,*400,000,000. Net loans and discounts on October 5, 1955 were $41,100,000,000, an increase of $1,500,000,000 since June. Commercial and industrial loans of $16,700,000,000 were up $900,000,000 since June, and loans on real estate of $10,700,'000,000 we "P $235,000,000. Retail automobile installment loans increased $256,000,000 to $3,100,000,000, and other types of retail installment loans amounting to $1,188,000,000 increased $23,000,000. Loans to brokers and dealers in securities and other loans for the purpose of purchasing or carrying stocks, bonds, and other securities increased $70,000,000 to $1,648,000,000. Other loans, including loans to farmers, loans to banks, and other loanc to individuals (repair and - 2- 200 modernization and installment cash loans, and single-payment loans) amounted to $8,400,000,000, an increase of nearly 1 percent since June. The percentage of net loans and discounts to total assets on October 5t 1955 was 37*73 in com " parison with 36.59 in June and 33.51 ia October 1954. Investments of the banks in United States Government obligations on October 5, 1955 aggregated $34,100,000,000 (including $4,037,000 guaranteed obligations), a decrease of $700,000,000 since June. These investments were 31 percent of total assets. Other bonds, stocks and securities of $9,300,000,000, which included obligations of States and political subdivisions of $7,100,000,00 were $100,000,000 more than in June. Total securities held amounting to $43,500,000,000 decreased $600,000,000 since June. Cash of $1,400,000,000, reserve with Federal Reserve banks of $11,400,000,000, and balances with other banks (including cash items in process of collection) of $10,000,000,000, a total of $22,800,000,000, showed a decrease of $200,000,000 since June. Borrowed money of $703,000,000 showed an increase of $631,000,000 since June and $469,000,000 since October a year ago. The capital stock of the banks on October 5, 1955 was $2,400,000,000, including $U,000,000 of preferred stock. Surplus was $3,700,000,000, undivided profits $1,500,000,000 and capital reserves $300,000,000, or a total of $5,500,000,000. Total capital accounts of $7,900,000,000, which were 8 percent of total deposits, were $200,000,000 more than in June when they were 7.32 percent of total deposits. Statement showing comparison of principal items of assets and liabilities of active national "banks as of October 5, 1955. June 30, 1955 and Octooer 7, 195^ (in thousands of dollars) Oct. 5, 1955 June 30, 1335 Number of banks 4,721 4,751 ASSETS Commercial and industrial loan 16,697,696 15,799,919 Loans on real.estate.^. 10,670,220 10,434,934 All other loans, including overdrafts 14,314,319 13#901.699 J' MUlW.iW"/'^-Jl--. Total gross loans,... 4l,682,235 ^,136,552 L e &s valuation ^reserves. • 59%,672 593,048 41,083,563 39,543, Net loans,^,..,**.,..,,.. U. S. Government securities? Direct obligations.......,,. 34,106,3l4 34,778,270 2,755_^ Obligations fully guaranteed....... 4,037 Total U. S. Securities 34,110,351 34,731,025 Obligations of States and political subdivisions............. ,... 7,l45,936 7»026f07X Other bonds, notes and debentures.... 1,9^6,^9 2,002,463 Corporate stocks, including stocks of Fed. Reserve banks,*,#.. 212,872 211,795 44,0gl,3# Total securities,,,,,<,• • •43,455,658 ___ Total loans and securities 84,539,221 33,564,853 Currency and coin 1.358,591 1,3^0,655 Reserve with Fed. Reserve banks 11,366,869 10,987,394 Balances with ether banks..... 10,051,446 10,587,406 Total cash, balances with other banks, including reserve balances and cash items in process 22,955,455 of collection,.* «... 22,776,906 Other assets." 1,566,36s 1,539,034 Total assets 108,882,495 108,059,347 Oct. 7, 1954 'increase or decrease *Increase or decrease ssince June 30, 1955 »since Oct. 7, 1954 [Percent s Amount jPercent S Amount 4,827 -106 -30 15,868,226 897,777 9,465,267 235,286 12,695,779 4l2,6gQ 38,029,272 1,545,683 583,260 5,624 37,4ii6,012 1,5^0,059 5*68 2.25 2.97 3.25 *95 3.S9 829,4?0 1,204,953 1,618,5^ 3,652,963 15i4l2 3,637,551 5*23 12.73 12.75 9.61 2.64 9.71 39,91^,794 -671.956 1,282 -670,674 -1.93 46.53 -1.93 »5.S04,644 201 -5,804,443 -14.54 5.24 -14,54 7,339,S66 l,925,s4o 119,865 -15,964 1,71 -.80 -193,930 60,659 -2.64 3.15 215,636 ~49,396,136 86,842,148 1,323,599 12,353,S34 9,699,05S 1,077 -565,696 974,363 -22,064 379,475 •535,960 .51 -1.29 1.17 -l.bO 3.45 -5.06 -2,764 -5,9^0,478 -2,302,927 34,992 -986,965 352.33S -1.2S -12,03 -2.65 23,376,^91 1,541,171 -178,549 27,334 >*1B 1.78 -599,535 25,197 •2.56 1.6: 111,759,810 823,148 .76 -2,877,315 '2.57 39.910,95S i2i -7.99 3,»6a Comparison of principal items of assets and liabilities of national "banks — Continued, (in thousands of dollars) Oct. 5, 1955 . .* Jane 30, * Oct. 7, 1955 . 1954 :Increase or decrease ^Increase or decrease t since June 30, 1955 * since Oct. 7, 1954 S Amount sPercent's Amount sPeresnt LIABILITIES Deposits of individuals, partnerships, and corporations: Demand 54,590.107 Time 25,077,012 Deposits of U. S. Government 2,353,373 Postal savings deposits 13,103 Deposits of States and political subdivisions 6,699,178 Deposits of banks 8,661,764 Other deposits (certified and cashiers* checks, etc.) 1,395,499 Total deposits... 98,790,036 Bills payable, rediscounts, and other liabilities for borrowed money 702,719 Other liabilities 1,481,874 Total liabilities, excluding capital accounts 100,974,629 CAPITAL ACCOUNTS Capital stocks Preferred ... 4,176 Common 2,436,321 Total 2,440,497 Surplus 3,709,659 Undivided profits..... 1,489,989 Reserves 267,721 Total surplus, profits, and reserves 5,467,369 Total capital accounts 7,907,86b Total liabilities and capital accounts 108,882,495 EATI0S: Percent U.S.Gov»t securities to total assets 31*33 Loans & discounts to total assets... 37*73 Capital accounts to total deposits.. 8.00 53.711,457 24,963.347 3,142,410 13,110 55,1^4,436 24,418,920 4,374,955 13,046 878,650 113,665 -789,037 -7 1.64 •46 -25.11 -.05 -554.329 658,092 -2,021,582 57 -1.01 2.70 -46.21 .44 7,287,142 8,316,961 6,480,477 10,127,696 -587,964 344,803 -8.07 4.15 218,701 •1,465,932 -14.47 1.498,499 98,932,926 1.320,499 101,880,029 -6.87 75,000 -3,089,993 5.68 -3.03 71,600 1,320,834 233,478 1,733,972 100,325,360 103,847,479 3,946 2,419,450 2.423,396 3,69S,**b4 1,347,797 264,330 4,602 2,389,884 2,394.486 3,690,908 1,540,254 286,683 5,310,591 7,733,987 5,517,845 7,912,331 108,059,347 Percent 32.19 36.59 7*82 111,759,810 Percent 35*71 33*51 7*77 r -103,000 •142,890 ""=35" 631,119 161,040 881.45 12.19 469,241 -252,098 200.98 -14.54 649,269 .65 -2,872,850 -2.77 230 16,871 17,101 11,195 142,192 3,391 5.83 .70 .30 10.55 1.28 -426 46,437 46,011 18,751 -50,265 -18,962 -9.26 1.94 1.92 .51 -3.26 -6.61 156,778 173,879 2.95 2.25 -50,476 -4,465 -.91 823,148 .76 -2,877,315 .71 "^ToT -2.57 1TOTE: Minus sign denotes decrease^ CO CO - 3 - 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. 4l8, 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. - 2 - m 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Re- serve Banks and Branches, following which public announcement will be made by 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 December 8", 1955 , in cash or other immediately available funds or in a like face amount of Treasury bills maturing December 8. 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 to 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 04 BKKIEQ&XI H35KK TREASURY DEPARTMENT Washington „ ^^ ^.. \ i FOR RELEASE, MORNING NEWSPAPERS, Thursday. December 1, 1955 • / Q /U * * The Treasury Department, by this public notice, invites tenders for $ 1.600.00Q.000 , or thereabouts, of ,in exchange for Treasury bills maturing *lf601.993.000 91 December 8, 1955 s in the amount of , to be issued on a discount basis under competitive and non- competitive bidding as hereinafter provided. dated -day Treasury bills, for cash and December 8, 1955 , and will mature The bills of this series will be March 8, 1956 g£ , when the face m 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 one-thirty closing hour, /bosx o'clock p.m., Eastern Standard time, Monday, December 5, 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 nottyeused. 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 » r T M|MH>»I1III1..1[1LUI UI.IMVII •MJD.'IM .'.«,«',»wnn j •.W»'iMJ»»Ta«^Wt»'.»tM^I!lWIWfl»llll,WlltllllMBlMll WASHINGTON, DJ RELEASE MORNING NEWSPAPERS, Thursday, December 1, 1955. M ~ y *u The Treasury Department, by this public notice, incites tenders for $1,600,000,000, or thereabouts, of 91-day Treasury bills* for cash and In exchange for Treasury bills maturing December 8, 1955, in the amount of $1,601,993,000, to be Issued on a discount basis under competitive and non-competitive bidding as hereinafter provided. The bills of this series will be dated December 8, 1955, and will mature March 8, 1956, 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, one-thirty o'clock p.m., Eastern Standard time, Monday, December 5, 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 December 8, 19553 in cash or other immediately available funds or in a like face amount of Treasury bills maturing December 8, 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. RELEASE 2:00 P.M. EST Friday, December 2, 1955 U1 Under Secretary of the Treasury W. Randolph Burgess, Mexican Ambassador Senor Don Manuel Tello, and Senor Don Rodrigo Gomez, Director General of the Banco de Mexico, today signed a new Stabilization Agreement between the United States and Mexico. The Agreement is designed to assist Mexico by providing up to a maximum amount of $75 million, if the occasion for use should arise, for exchange stabilization operations to aid in preserving Mexico's exchange system free from restrictions on payments. The Agreement continues for another two year period, until December 31, 1957* arrangements that have been in effect since 1941 and will, as in the past, be operated in close coordination with the activities of the International Monetary Fund. Under Secretary Burgess noted that Mexico's gold and foreign exchange reserves have increased substantially and that Mexico's national output continues to increase while it maintains its traditional freedom of exchange transactions. TREASURY DEPARTMENT 207 WASHINGTON, D.C. RELEASE 2:00 P.M. EST Friday, December 2, 1955 • '>»'"' *• H-971 •' Under Secretary of the Treasury W. Randolph Burgess, Mexican Ambassador Senor Don Manuel Tello, and Senor Don Rodrigo Gomez, Director General of the Banco de Mexico, today signed a new Stabilization Agreement between the United States and Mexico. The Agreement is designed to assist Mexico by providing up to a maximum amount of $75 million, if the occasion for use should arise, for exchange stabilization operations to aid in preserving Mexico1s exchange system free from restrictions on payments. The Agreement con- tinues for another two year period, until December 31, 1957, arrangements that have been in effect since 1941 and will, as in the past, be operated in close coordination with the activities of the International Monetary Fund. Under Secretary Burgess noted that Mexico's gold and foreign exchange reserves have Increased substantially and that MexicoTs national output continues to increase while it maintains its traditional freedom of exchange transactions. oOo ,08 IMMEDIATE RELEASE, Fridayf jteoeaaber 2, 19$$. Preliminary figures show that about ill. 3 billion of the Treasury securities maturing December 1$ have been exchanged for the new one-year 2-5/8$ certificates of indebtedness and two and one-half year 2-1/%% treasury notes. About |2~lA billion of the billion exchanges were for the new notes, and about #9.1 #or the new certificates. further details regarding the exchange will be announced next week after final reports are received. J ^ rsJ \ b»V TREASURY DEPARTMENT WASHINGTON, D.C. IMMEDIATE RELEASE Friday, December 2, 1955 H-972 Preliminary figures show that about $11.3 billion of the Treasury securities maturing December 15 have been exchanged for the new one-year 2-5/8$ certificates of indebtedness and two and one-half year 2-7/8$ Treasury notes. About $2-1/4 billion of the exchanges were for the new notes, and about $9.1 billion for the new certificates. Further details regarding the exchange will be announced next week after final reports are received. oOo RELEASE 12:00 NOON EST MONDAY, DECEMBER 5, 1955 £±ls) jj^ f?3 Treasury Secretary Humphrey today administered the oath of office to Russell Chase Harrington as Commissioner of Internal Revenue. Mr. Harrington, who is from Providence, Rhode Island, was appointed by President Eisenhower to succeed T. Coleman Andrews, who resigned as Commissioner to re-enter private business. The swearing-in ceremony took place at noon in the Jdrfice of the Commissioner at the Internal Revenue/£ullding. Friends of Mr. Harrington from private life, as well as Internal Revenue and other Treasury office®, were present. "It is a real pleasure to have you on the Treasury team, and we look to you very confidently to continue the outstanding job of rebuilding the Internal Revenue Service and restoring it to public gorvlree which was done by Coleman Andrews," Secretary Humphrej told Commissioner Harrington. Mr. Harrington for a number of years was resident partner in Providence of Ernst and Ernst, a national accounting firm. He is a past president of the Providence Chamber of Commerce, and has been a vice president, treasurer and director of the United States Chamber of Commerce. He has resigned from his partnership and severed his other commercial connections. TREASURY DEPARTMENT _ OB Hi WASHINGTON, D.C. RELEASE 12100 K00J ^ Mondayj December 5s 1955 H-973 Treasury Secretary Humphrey today administered the oath of office to Russell Chase Harrington as Commissioner of Internal Revenue. Mr. Harrington, who is from Providence, Rhode Island, was appointed by President Eisenhower to succeed T. Coleman Andrews, who resigned as Commissioner to re-enter private business. The swearing-in ceremony took place at noon in the office of the Commissioner at the Internal Revenue building. Friends of Mr. Harrington from private life, as well as Internal Revenue and other Treasury officials,, were present. "It is a real pleasure to have you on the Treasury team, and we look to you very confidently to continue the outstanding job of rebuilding the Internal Revenue Service and restoring it to public confidence which was done by Coleman Andrews," Secretary Humphrey told Commissioner Harrington. Mr. Harrington for a number of years was resident partner in Providence of Ernst and Ernst, a national accounting firm. He is a past president of the Providence Chamber of Commerce, and has been a vice president, treasurer and director of the United States Chamber of Commerce. He has resigned from his partnership and severed his other commercial connections. oOo , / 212 IMTOIA.TE BELEASE, ^HflM&y.*, PflffifflffliWil', %h,Ju3SL His troasury Dopartaant will invito toador s o n Ifeursday, Bootable 8 t for $1,500,000,000, or thoroabouts, of 9?-day troasury M i l s t o bo datsd Booosjboap 1 5 , 1955, and t o nature Jtooh 23, 1956. 2hose will bo Tax Anticipation bills, aeooptablo at face v&luo i n payasnt o f lnooas and profits taxes due Jfereh 15, 1956. troesury tax and loom aocounta. Payasnt aay bo mado partly bpr erodit ia fail details will bo releasod tomorrow y\\ > / ; y" WTHeffolfingerihsv 12/5/55 TREASURY DEPARTMENT WASHINGTON, D.C. IMMEDIATE RELEASE,, Monday, December 5, 1955 H-974 The Treasury Department will invite tenders on Thursday, December 8, for $1,500,000,000, or thereabouts, of 99-day Treasury bills to be dated December 15, 1955, and to mature March 23, 1956. These will be Tax Anticipation bills, acceptable at face value in payment of income and profits taxes due March 15, 1956. Payment may be made partly by credit in Treasury tax and loan accounts. Full details will be released tomorrow morning. oOo -3- 214 and loss from the sale or other disposition of treasury bills doss not have any special treatment, as such, under the Internal Revenue Cods of W$k* The billi are subject to estate, inheritance, gift or other excise taxes, whether Federal ©r Stat®, but are exempt from all taxation now or hereafter Imposed on the principal or interest thereof by any State, or any of the possessions ©f the United States, or by any loeal taxing authority. For purposes of taxation the ataount of discount at which treasury bills are originally sold by the United States is considered to bo Interest, tinder Sections \6h (b) and 1221 {$) of the Internal Revenue Code of 19Sh 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 b l H s (other than lifs 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, or the amount of income or profits taxes paid by means of the b l H s , during the taxable year for which the return Is mads, as ordinary gain or loss. Treasury ©opartuent Circular No. Iil8, Eeviaed, and tliis notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copita of the circular may be obtained from any Federal Reserve Bank or Branch. - 2- 215 Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will bo received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities* Tenders from others must bo 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 incorporate bank or trust company. Immediately after the closing hour, tenders will bo 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 rigjhfc to accept or rejset any or all tenders, in whole or in part, and his action in any such respect shall bo final. Subject to those reservations, noncompetitive tenders for 1300,000 or less without stated price from any one bidder will bo accepted in lull at the average price (in three decimals) of accoptod competitive bids. Settlement for accoptod tenders In accordance with the bids must bo mads or completed at the Federal teserve Bank on December Ijj^ 1955, In cash or other Immediately available funds, provided, however, any quallfiod depositary will be permitted to make payment by credit in its Treasury Tax and Loan Account for not more than 60 percent of the amount of Treasury bills allotted to it for itself and Its customers (up to the amount for which it shall bo qualified in excess of existing deposits) when so notified by the Federal Reserve Bank of its Mstriot. The income derived from Treasury bills, whether interest or gain from the sal® or other disposition of the bills, does not have any exemption, as such, RELEASE mmim 1W5PAP&RS, Tuesday, December 6, lygg. 216 -v- ;/...* ~ f'^ ^ -«t The Treasury Bopartmont, by this public notice, invites tenders for •1,500,000,000, or thereabouts, of ee~day Treasury bills, to bo issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this Series will be designated Tax Anticipation Series, thoy will be dated Beeember 15, X9$$, and thty will mature March i3, 1S56. Ths; w i n be accoptod at face value in payment of income and profits taxes duo on March 15, 1956, and to th® extant thoy are not presented for this purpose the face amount of those bills will be payable without interest at maturity. Taxpayers desiring to apply these bills in payment of March 15, 1956, income and profits taxes have the privilege ©f surrendering them to any Federal Reserve Bank or Branch not more than fifteen days before Harch 15, If56, and receiving receipts therefor showing the face amount of the b U l s so surrendered. These receipts may be submitted in lieu of the bills on or before larch l5j 1956, to the District Director of Internal Revenue for the district in which such taxes are payable. 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, one-thirty o'clock p.m., l&stem Standard time, Thursday, December 8, 1955. Tenders will not bo reeelired at the Treasury Department, Washington, lach tender mmt 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 isferg-ejf*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. TREASURY DEPARTMENT WASHINGTON, D.C. RELEASE MORNING NEWSPAPERS, Tuesday, December 6, 1955« H-975 The Treasury Department, by this public notice, invites tenders for $1,500,000,000, or thereabouts, of 99-day Treasury bills, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be designated Tax Anticipation Series, they will be dated December 15, 1955* and they will mature March 23, 1956. They will be accepted at face value in payment of income and profits taxes due on March 15, 1956, and to the extent they are not presented for this purpose the face amount of these bills will be payable without interest at maturity. Taxpayers desiring to apply these bills in payment of March 15, 1956, income and profits taxes have the privilege of surrendering them to any Federal Reserve Bank or Branch not more than fifteen days before March 15, 1956, and receiving receipts therefor showing the face amount of the bills so surrendered. These receipts may be submitted in lieu of the bills on or before March 15, 1956, to the District Director of Internal Revenue for the district in which such taxes are payable. 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, one-thirty o'clock p.m., Eastern Standard time, Thursday, December 8, 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 requested 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 price Federal Reserve Banks and Branches, which announcement md range will ofbe accepted made by bids. the Treasury Thosefollowing submitting Department tenders of public the amount will be - 2- 217 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 $300,000 or less without stated price from any one bidder will be accepted In full at the average price (in three decimals) of accepted competitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on December 15, 1955, in cash or other immediately available funds, provided, however, any qualified depositary will be permitted to make payment by credit in its Treasury Tax and Loan Account for not more than 60 percent of the amount of Treasury bills allotted to it for Itself and Its customers (up to the amount for which it shall be qualified in excess of existing deposits) when so notified by the Federal Reserve Bank of its District. The income derived from Treasury bills, whether interest or gain from the sale or other disposition of 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 dispoced 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, or the amount of income or profits taxes paid by means of the bills, during the taxable year for which the return is made, as ordinary gain or loss. Treasury Department Circular No. 4l8, Revised, and this oOo 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. 218 ,.,-jt the treasury Bepertment antiouneed lest evening that the tenders for $1,600,000,000, or thereabouts, of 91-day treasury bills to fee dat©d Seoeafeer S, 1955, and to mature Hard! I, 1956, nhioh mm offered on Deoeaber 1, wore opened at the Federal Beserve Bank on leoe^ber 5» The detail® of this issue are as followsi Total applied for - tt»3&» 978*600 fetal accepted ~ 1,600,098,000 (includes |f23,01*5,000 entered on a noaooapetltlv© basis and accepted in fall at the average price shown below) Average price - 99 J 1 5 / I^uiiralent rate of discount approx. 2.1*71$ per annum tang® of accepted competitive bides {Excepting one tender of $300,000) Ei#i - 99*393 Stei.viPUai rate of discount ajpprox. 2.1$1$ per annum ~ 99*$$% « s e e « * . & # • tt LOST {It percent of the amount bid for at the low price was accepted) Federal leserr® District total applied for fotal Accepted Boston fern fork fhiladelphia Cleveland Eichmond Atlanta Chicago St. Louis Minneapolis Kansas City BaHas San fraaoiso® I i 1*8,5149,000 1,6(4,039,000 28,689,000 56,071,000 19,81&,000 30,589,000 198,872,000 22,823,000 8,?5©,ooo 35,568,000 32,287,000 68,891,000 torn M it,.151,978»ooo W,5!*9,ooo 1,113,759,000 19,089,000 56,071,000 19,8IA,OO0 30,589,000 3ia,872,000 22,823,000 8,756,000 35,568,000 32,287,000 68,891,000 $1,600,098,000 TREASURY DEPARTMENT 920 WASHINGTON, D.C. RELEASE MORNING NEWSPAPERS, Tuesday, December 6, 1955. H-976 The Treasury Department announced last evening that the tenders for $1,600,000,000, or thereab- its, of 91-day Treasury bills to be dated December 8, 1955, and to mat March 8, 1956, which -were offered on December 1, were opened at the Federal Reser on December 5» The details of this issue are as follows: Total applied for - $2,154,978,000 Total accepted - 1,600,098,000 Average price (includes $223,045,000 entered on a noncompetitive basis and accepted in full at the average price shown below) - 99.375/ Equivalent rate of discount approx. 2.471$ per annum Range of accepted competitive bids: (Excepting one tender of $300,000) High Low - 99.393 Equivalent rate of discount approx. 2.401$ per annum - 99.358 » « " " » 2.5U05G " " (4 percent of the amount bid for at the low price was accepted) Federal Reserve District Total Applied for Total Accepted Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco ft 48,549,000 1,604,039,000 28,689,000 56,071,000 19,844,000 30,589,000 198,872,000 22,823,000 8,756,000 35,568,000 32,287,000 68,891,000 $ $2,154,978,000 $1,600,098,000 TOTAL 48,549,000 1,113,759,000 19,089,000 56,071,000 19,844,000 30,589,000 143,872,000 22,823,000 8,756,000 35,568,000 32,287,000 68,891,000 - 3 - *$fflk 921 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 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 -• fe— c &*, 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 December 15, 1955 in m casn or other immediately available funds * or in a like face amount of Treasury bills maturing December 15, 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 to 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 09Q TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Thursday, December 8, 1955 • hi — 1 / / / m The Treasury Department, by this public notice, invites tenders for $1,600,000,000 , or thereabouts, of 91 -day Treasury bills, for cash and in exchange for Treasury bills maturing December 15, 1955 , in the amount $$ $1,602,275,000 , to be issued on a discount basis under competitive and n competitive bidding as hereinafter provided. The bills of this series will be dated December 15, 1955 , and will mature March 15, 1956 f wnen the face amount will be payable without interest. They will be issued in bearer f and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $ (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the one-thirty closing hour,/feats o'clock p.m., Eastern Standard time, Monday, Decembe 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 t the price offered roust be expressed on the basis of 100, with not more decimals, e. g., 99.925. Fractions may not be used. It is urged that ten be made on the printed forms and forwarded in the special envelopes whic 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 f incorporated banks and trust companies and from responsible and recogniz in investment securities. Tenders from others must be accompanied by pay TREASURY DEPARTMENT WASHINGTON, D.C. RELEASE MORNING NEWSPAPERS, Thursday, December 8, 1955. N ^ ^ / H-977 The Treasury Department, by this public notice, invites tenders for $1,600,000,000, or thereabouts, of 91-day Treasury bills, for cash and in exchange for Treasury bills maturing December 15,1955, in the amount of $1,602,275,000, to be Issued on a discount basis under competitive and non-competitive bidding as hereinafter provided. The bills of this series will be dated December 15, 1955, and will mature March 15, 1956, 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, one-thirty o'clock p.m., Eastern Standard time, Monday, December 12, 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 - 2competitive bids. Settlement for accepted tenders in accordance with the bids n.ust be made or completed at the Federal Reserve Bank on December IS, 1955, ^ n cash or other Immediately available funds or in a like face amount of Treasury bills maturing December 15, 19 Cash and exchange tenders v/ill receive equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange and the issue price of the new bills. The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, does not have any exemption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treatment, as such, under the Internal Revenue Code of 195**. The bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter 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 4^4 (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. 25 IMMSDIATI RELEASE, i December 7, 1955. H-97* The Treasury Department today announced the results of the current exchange off* ing of 2*5/8 percent one-year Treasury Certificates of Indebtedness of Series D-1956 and 2-7/3 percent two and one-half year treasury Notes of Series A«1958, both dated December 1, 1955, open to holders of $5,359,055,000 of 1 - l A peroeafe treasury Certifi eates of Indebtedness of Series K-1955 and $6,853,792,000 of 1*3/4 percent Treasury! of Series B-1955, both maturing December 15* Subscriptions for the new Issues amount to 111,365,10,2,000, leaving #847,435,000 of the maturing issues for cash redemption. ne eeryst Amounts exchanged were divided between the two new issues and among the several Federal Reserve Districts and the treasury as followss 2-5/8£ tBEAStlRI CUttlFICAfES OF JMMfflEmms 0F SI federal Reserve District Boston Hew fork Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco treasury fOfaX Federal Reserve District Boston Mew York Philadelphia Cleveland Kichmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco treasury tOtAL Certificates 28,197,000 3,394,227,000 29,074 000 40,334 000 25,21*2 53,227 000 237,530 52,632 000 23,592 000 35,798 21,475 000 213,198 000 2,624 000 §4,157,150,000 Hotes IltHchajifired Q*,£Oj, 4,008,736 78,262 110,960 30,346 40,905 239,131* 71,16? 55,784 48,6l6 35,605 134,092 H M M * ooo 000 000 000 000 000 000 000 000 000 464,806,000 17,092,000 33,641,000 10,665,000 20,807,000 120,120,000 12,144,000 15,897,000 29,576,000 19,703,000 36,399,000 1,443,000 wmtmm u r 55 94,132,000 476,664^000 123,80i/«0 79,376,000 4&,000 57*080,000 347>W*&te mmm M-7/%% traSAStmY K O T O OF SERIES A-! —i. "'v-^"avs Certificates Exchanged i 3i,t8S,do6 total Exchanges 90 7,402 963,000 107 151 635,184,000 26,085,000 77,568,000 35,797,000 43,114,000 237,919,000 50,227,000 44,765,00) 76,240,000 55,303,000 105,547,00© 4sQ79,OQO to,WM1,tit> roiau. 10^,044 1,099,990 43,177 111,209 46,462 63,9a 358,039 62,371 60,662 105,816 75,006 141,91*6 v$m$iK 000 000 000 000 000 000 000 000 000 000 HMEDIaTE RELEASE, ednesday, December 7, 19$$. H-978 The Treasury Department today announced the results of the current exchange offer— ng of 2-5/8 percent one-year Treasury Certificates of Indebtedness of Series D-1956 nd 2-7/8 percent two and one-half year Treasury Notes of Series A-1958, both dated ecember 1, 1955, open to holders of $5,359,055,000 of 1-1/4 percent Treasury Certifiates of Indebtedness of Series E-1955 and $6,853,792,000 of 1-3/4 percent Treasury Notes f Series B-1955, both maturing December 15. Subscriptions for the new issues amounted o 111,365,412,000, leaving $847,435,000 of the maturing Issues for cash redemption. Amounts exchanged were divided between the two new issues and among the several 'ederal Reserve Districts and the Treasury as follows: 2-$/Q% TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES D-1956 'ederal Reserve listrict Soston ew York 'hiladelphia lleveland Lichmond .tlanta Ihicago >t. Louis [inneapolis [ansae City lallas lan Francisco 'reasury TOTAL Certificates Exchanged $ 28,197,000 3,394,227,000 29,074,000 40,334,000 25,242,000 53,227,000 237,530,000 52,632,000 23,592,000 35,798,000 21,475,000 213,198,000 2,624,000 $4,157,150,000 Notes Exchanged | 62,281,000 4,008,736,000 78,262,000 110,960,000 30,346,000 40,905,000 239,134,000 71,169,000 55,781!, 000 48,616,000 35,605,000 134,092,000 9,207,000 14,925,097,000 Total Exchanges j 90,478,000 7,402,963,000 107,336,000 151,294,000 55,588,000 94,132,000 476,66Ij,000 123,801,000 79,376,000 84,414,000 57,080,000 347,290,000 11,831,000 $9,082,247,000 2~7/8# TREASURY NOTES OF SERIES A-1958 ederal Reserve istrict oston ew York hiladelphia leveland ichmond tlanta hicago t. Louis inneapolis msas City alias *n Francisco 'easury TOTAL Certificates Exchanged I 31,705,000 464,806,000 17,092,000 33,641,000 10,665,000 20,807,000 120,120,000 12,144,000 ' 15,897,000 29,576,000 19,703,000 36,399,000 1,443,000 1813,998,000 Notes Exchanged * 77,339,000 635,l8Li,000 26,085,000 77,568,000 35,797,000 43,111,000 237,919,000 50,227,000 44,765,000 76,240,000 55,303,000 io5,547,ooo 4,079,000 11,469,167,000 Total Exchanges 1 109,04)4,000 1,099,990,000 43,177,000 111,209,000 46,462,000 63,921,000 358,039,000 62,371,000 60,662,000 105,816,000 75,006,000 141,9146,000 5,522,000 $2,283,165,000 STATUTORY DEBT LIMITATION 4C ... November 10, 1955 0 0 7 CC \ Washington, ...„ A....,..t,iU, Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations Issued under authority of thnt Act, ntul the face umount of obligations guaranteed as to principal and interest by the United States (except BUCIIguaranteed obligations as may be held by the Secretary of the Treasury), ' shall not exceed in the Aggregate $275,000,000,000 iAct of June 26, 1946; U . S . C , title 31, sec. 757b), outstanding at any one time. For purposes of this section the current tcemption 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." T h e Act of August 28, 1954, (P.L. 6B6-R3rd Congress) provides that during the period beginning on August 28, 1954, and ending June 30, 1955, the above limitation (1275,000,000,000) shall be temporarily increased by $6,000,000,000. The Act of June 30, 1955 (P.L. 124 84th Congress) continues this temporary increase until June 30, 1956b 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 m a y be outstanding at any one time $281,000,000,000 OutstandingObligations issued under Second Liberty Bond Act, as amended Interest-bearing: T .... .20,811,688,000 Treasury bills Certificates of indebtedness Treasury notes ... BondsTrea sury * Savings (current redemp. value) r, . feposltat5;- V Investment series ... Special FundsCertificates of indebtedness Treasury notes: Total interest-bearing Matured, interest-ceased „ $ ^881,876,700 t ! • _. _ 81, 865 . 255.800 58,278,768,131 370,948,500 12,3^0 125,000 Lr£ 1 dJ. . ooQ U ^ l & ^ O O Ll ' ,, 152,855,097,431 ^ 44,012,960,400 277,57°»"5^, 531 ^ 3 ° »052,660 Bearing no interest: United States Savings Stamps Excess profits tax refund bonds Special notes of .ha U„i.ed S«..ea: Internat'l Monetary Fund series ; Total 80,710,594,700 48,202,039 1»^46,97o 1 1 ! 1,651,249,017 ; 5 279,659,954,208 Guaranteed obligations (not held by Treasury): Interest-bearing: 52,152,250 Debentures: F.H.A. ... 859,350 Matured, interest-ceased 2 i. Grand total outstanding , Balance face amount of obligations issuable under above authority .. „ , L n ... n 53,011,600 ; ; 279,712,965,808 '-*' J> x >*°^v?**±2Z. ., Hovember 30, 1955 Reconcilement with Statement of the Public Debt (Daily Statement of the United States Treasury * .<.. .T.t; (Data) ?S>Z*£i*L.3S.J..«l25.i>. 1 (Data) OutstandingTotal gross public debt Guaranteed obligations not owned by the Treasury. Total gross public debt and guaranteed obligations. Deduct - other outstanding public debt obligations not subject to debt limitation H-979 - 280,136,379,479 ^ ^ 22-L. ! . 2 8 0 ,l89»391,0?9 476,42fi,271 279,712,965,808 STATUTORY DEBT LIMITATION As OI. November 30, 1955 00 Q W a s h i n g ^ ' : . Ji^ 195X Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations Issued under authority of thnt Act, and the face amount of obligations guaranteed as to principal and Interest by the United States (except suchguatjntccd 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.j title 31, sec. 757b), outstanding at any one time. For purposes of this section the current rejemption value of any obligation in sued on a discount basis which la 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. 6H6-R3rd Congrcws) provides that during the Dctiod 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 Act of June 30, 1955 (P.L. 124 84th Congress) continues this temporary increase until June 30, 1956. The following table shows the face amount of obligations outstanding and the face amount which can still be Issued under thin limitation: Total face amount that may be outstanding at any one time $281,000,000,000 OutstandingObligations issued under Second Liberty Bond Act, as amended Interest-bearing: Treasury bills ,20,811,688,000 Certificates of indebtedness f2'2F'22?'^0° o~rv,« K«I ™ « Z. 47,881,876,700 t Treasury notes BondsTreasury * Savings (current redemp. value) D.po.1,.,. ZZJ,.-hi Special FundsCertificates of Indebtedness '' * 80,710,594,700 t * • ^^ ^ 81,865,255.800 5°»27o, 76o,131 370. 9 ^ , 500 : 12,3»0,125,000 X52.855.097.431 . 32,024,776,000 11,988,184,400 *x ' ' M„*.,„t^ 44,012,960,400 Treasury notes ».. Total interest-bearing , 2 7 7 , 5 7 ° »652,531 Matured, interest-ceased 430,052,660 Bearing no interest: United States Savings Stamps 48,202,039 Excess profits tax refund bonds 1, OM-O , V/O Special notes of the United States: _ ^ «i.-» ~« _, „ , • 1,602,000,000 1,651,249,017 Intcrnat'l Monetary Fund series ' * ' ' "^ Total i 279,659,95^,208 Guaranteed obligations (not held by Treasury): Interest-bearing: Debentures: F.H.A 5^,152,250 ., . 859,350 53,011,600 Ul J7 Matured, Interest-ceased u^ -'•' * ' Grand total outstanding , , Balance face amount of, obligations issuable under above authority «•.«, c 1. n un n 279,712,965,808 l,Zo7tQ3^ , »^"^ k. November 30* 1955 R e c o n c i l e m e n t with Statement of the Public D e b t .?.,..,. rT.T. (Data) (Daily Statement of the United States Treasury K9J®.1?}?®•T....29.A...155.5. hate) n . » JOutstandingT«.i e ,„.. public deb. 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-979 ) ,. , . 280.136.379.J79 3J * , 280,189,391*079 476 ,425,271 279,712,965,808 22S yj ^ f%6 Friday, petember 9, 19$$* The Treasury Department announced last evening that the tenders for $1,500,000,OQ( or thereabouts, of figs &ntieipatio» strips 99-day Treasury bills to be dated December ; 1955* and to mature iferoh %}9 1956, which were offered on December 6, were opened at ii Federal Reserve Basics on Beeember 8* Hie details of this Issue are as follows*. total applied for - $k, 129,518,000 Total accepted - l,50O,689,O0O Average pries (Includes $352,104,000 entered on a noncompetitive basis and accepted In full at the average price shown below) - 99*322/ gqalvalest rate of diseoant appro&. 2+h&$$ per annua lange of accepted eoaipetitive bids? gi# Lew (ixceptl&g four tenders totaling $l|86,0OG) - 99.360 ©imivalent fate of discount approx, 2.327$ per annum - 99.3U • « s « « tAS&H • « (g$ percent of ttse amount bid for at the lew price was accepted) Federal Reserve District Total Applied for Total Accepted Boston lew Jerk fhiladelphia Cleveland Richmond Atlanta Chicago St* Louis stUoneappldit Kansas City Dallas San Francisco $ | T0TA& 217,965,000 2*. 133,523,000 134,135,000 101,200,000 118,418,000 311,950,000 516,832,000 110,663,000 64,541,000 111,414,000 160,727,000 252,145,000 fit* 129, 518, 000 157,7*8,000 618,410,000 31,158*000 66,a9,ooo 58,183,000 iT^035*ooo 55,838,000 38,1*1,000 55,525,000 79,067,000 96,111,000 $1,500,689,000 TREASURY DEPARTMENT WASHINGTON, D.C. IELEASE MORNING NEWSPAPERS, yiday, December 9, 1955* H-980 The Treasury Department announced last evening that the tenders for $1,500,000,000 or tnereabouts, of Tax Anticipation Series 99-day Treasury bills to be dated Decem 1955, and to mature March 23, 1956, which were offered on December 6, were opened Federal Reserve Banks on December 8. The details of this issue are as follows: Total applied for - $U,129,518,000 Total accepted - 1,500,689,000 Average price (includes $352,Ul4,000 entered on a noncompetitive basis and accepted in full at the average price shown below) - 99.322/ Equivalent rate of discount approx* 2,465$ per annum Range of accepted competitive bids: (Excepting four tenders totaling $U86,000) High - 99.360 Equivalent rate of discount approx. 2,327$ per annum ,f Low - 99.313 " •• " " 2,498$ " " (23 percent of the amount bid for at the low price was accepted) Federal Reserve District Total Applied for Accepted Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St Louis $ $ Spoils Kansas City Dallas * San Francisco TOTAL 217,965,000 2,133,528,000 13U,135,000 181,200,000 118,U18,000 127,950,000 516,832,000 110 663,000 157,7U8,000 618,U10,000 31,158,000 66,219,000 58,183,000 69,95U,000 1?U,035,000 55,838,000 6U,5U1,000 g'Si'SE Ul,lOU,000 160,727,000 252,145,000 $U,129,518,000 £'£5,000 79,067,000 96,111,000 $1,500,689,000 aimss nomixsio \vmnvm$ h"J Tuesday, Beceasber 13, 1955. the Treasury Bepartassat announced last evening that the tenders for $1,600,000,0! m thereabouts, a* 91«*day treasury bills to be dated Beeeaber 15, 1955, and t® matur March 15, 1956, which were offered on ©eeeaber 8, were epeaed at the Federal Beserve Banks en ^eeeni&er 12. file detail® of this issue are as follows t Total applied im - $t,50f,950,000 fetal accepted - 1,601,061,000 (includes $837,71*7,000 entered en a noncompetitive basis and aeeepted in full at the average price shown below) Average priee - •*•?*& ^direlent rate ef discount approx. 2.591* per annua Range ef accepted eeapetittve bids? High - 99*3^3 Stuivalent rate ©f discount epprex. t*\&l$ W? annua torn -99.31$ • * * * * &.603* * * (W paten* ef the amount bid far at the lew price was aeeepted) Federal Seserve District fatal Applied for Boston $ Ii3,k75»O®0 I 33,iff,000 lew lerk 1,W,W,000 fMladelphi* 88,803,000 OlevelaM 68,860,000 SLateMiA 15,108,000 Atlanta 57,412,000 Chicago 228,256,000 $t. l#mis 25,072,000 llnaeapells 13,061,000 kaoeaa City 60,272,000 BaBas 17,098,000 San Francisco 180,811,000 fetal $2,509,950,000 $1,601,061,000 fatal Aeeepted l,O62,6fS,000 15,723,000 53,260,000 »}m>®£i 0,618,000 137,366,000 tk,lh3,000 10,781,000 58,272,000 23,092,000 112,111,000 232 TREASURY DEPARTMENT WASHINGTON, D.C. RELEASE MORNING NEWSPAPERS, Tuesday, December 13, 1955. H-981 The Treasury Department announced last evening that the tenders for $1,600,000,00 or thereabouts, of 91-day Treasury bills to be dated December 15, 1955, and to ma March 15, 1956, which were offered on December 8, were opened at the Federal Rese Banks on December 12. The details of this issue are as follows: Total applied for - $2,509,950,000 Total accepted - 1,601,061,000 (includes $237,747,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Average price - 99*345/ Equivalent rate of discount approx. 2»591$ per annum Range of accepted competitive bids: High - 99.393 Equivalent rate of discount approx. 2»40l£ per annum n Low - 99.342 « » » " 2.6035S » (46 percent of the amount bid for at the low price was accepted) Federal Reserve Total Total District Applied for Boston $ 43,475,000 $ 33,895,000 New vork 1,828,408,000 Philadelphia 28,303,000 Cleveland 62,260,000 Richmond 15,108,000 Atlanta 57,412,000 Chicago 228,156,000 St. Louis 25,072,000 Minneapolis 13,081,000 Kansas City 6(3,272,000 Dallas 27,092,000 San Francisco 120,811,000 Total $2,509,950,000 $1,601,061,000 Accepted 1,062,698,000 15,723,000 53,260,000 14,108,000 55,612,000 137,366,000 24,143,000 10,781,000 58,272,000 23,092,000 112,111,000 " - 11 - r< q 1 It is difficult, of course, for the farming community in the present perplexing period to view the prosperity of the country as a whole with entire satisfaction. Nevertheless, a strongly based general economy is an essential background to any sound solution of the farm problem, Sound monetary policies can protect the value of the farmers1 savings, which are so necessary a buffer for lean years* Sound policies help towards restraining the inflationary pressures on prices of agricultural equipment and fertilizers and the other things he buys. Furthermore, a sound general economy stimulates rising standards of living, higher standards of nutrition, and increased demand for an ever-widening variety of farm produce. A sound economy stimulates progress, scientific advancement in farm machinery, in fertilizers, in the use of antibiotics* Sound money under girds a high volume of world trade* The forward movement of the economy has provided job opportunities for those who leave the farm, and has provided others with part-time jobs that added to their farm incomes. This has helped to protect the per capita incomes of our farm population* While it would not be apjropriate for me to try to give you the solution to the farm problem of today, I venture this prediction: That the solution which succeeds will follow the fundamental principles of freedom, integrity, individual self-respect, and confidence based on economic soundness that have made this country great. As George Washington once said: »If, to please the people, we offer what we ourselves disapprove, how can we afterwards defend our work? Let us raise a standard to which the wise and honest can repair* The event is in the hands of God.'* - 10 - ?34 (3) We have worked unceasingly to carry out Hamilton's policies of an effective central banking system as the core of a sound financial mechanism* Our principal objective has been to make sure that the Federal Reserve System is assured independence of action for the welfare of the people, without distortion from political pressures. Federal Reserve policy during the past three years has, I believe, contributed positively to our economic strength and stabil^y* What is our answer to those critics who say that these old-fashioned principles are lacking in dynamism and that more and more government spending is required to assure the country's growth and prosperity? Our reply is that the dynamic growth of the United States has exceeded that of any other country in the world. The principle that good money is the best foundation for economic growth is supported by our economic history. Confidence that comes to our citizens from government's adherence to sound principles is proving the best stimulus to dynamism that could be found* All of this may seem remote to some of you, but, in reality, it is very close* The principles I have been talking about — foundation — the firmness of our are interwoven in the fabric of our whole economy* They apply to industry, to trade, and to the professions. They apply to agriculture, too. No one suffers more when the economy is whipsawed by inflation and succeeding deflation. - 9 Today in the Treasury we are following policies which, wftHe, of course, adjusted to the current needs, are nevertheless aimed at the same objectives as those chosen by Washington and Hamilton 165 years ago* Let me list them* (1) We believe in, and are working toward, a balanced Federal budget* The first year we came into office (1953), there was a deficit of $9-l/2 billion, which we inherited from our predecessors* This we have reduced so that today we have real hope far a balanced budget* This has been done, primarily, by reducing expenditures by more than &L0 billion* With the recognition that our tax rates are too high for the maximum dynamic growth of the economy and the knowledge that big changes in government spending must be cushioned, taxes have been reduced by #7*4 billion* The road block in the way of further substantial economy is the cold war and the imperative need it imposes to keep our country's defenses strong* This is not a problem which can be decided and then forgotten. It represents a struggle which is never-ending — one which we must meet each day* (2) We have sought by many means to distribute the debt more widely among more people* We are trying to lengthen its maturity by the sale of long-term and medium-term bonds* The amount of the floating, or short-term, debt has been reduced* The Savings Boncb Program has been stepped up* This is a direct way in which every citizen can help and in which your organization is helping* - 8n c SOME QUESTIONS But, in the past few years, some voices have been raised to question these old principles* florid War II, followed so soon after by Korea and the continuing cold war, together with faulty fiscal and monetary policies, produced an inflation which seriously reduced the buying power of the dollar and brought hardship to people who were depending on savings or were living on pensions ojjfixed incomes. Although certain groups, such as your own, appeared to achieve greater prosperity, it was not the kind that lasts* Some people, watching their shrinking dollar, have come to doubt whether traditional policies of sound money could be maintained. I am sure you have heard people say, "What's the use of saving your money, because it will not buy as much when you come to spend it?*. Some economists have even gone so far as to predict that this and other countries would face continually rising prices and a gradual decline in the value of money* OIR POLICIES TODAY Let me reassure you* Today in the Treasury Department we do not believe this* Quite the contrary j we believe firmly that this country can have sound, stable money which will retain its value down the years* We believe, also, that this is the best foundation for a sound and growing economy* - 7 - 237 These first steps were designed to make sure that the Nation's income would be adequate to meet its current expenditures, as well as to begin some payment on the debt* In other words, we started with a firm resolve to balance the budget, and we did it in 94 out of the first 140 years of our history. But since 1930 we have balanced it only 3 years out of 25* To go back to our ancestors, the second equally important step in support of a program of sound finance was the establishment of the Bank of the United States, which was chartered in 1791 to act as a central bank and be the core of the new American banking system* This is the principle carried on today in our Federal Reserve System* These policies of Alexander Hamilton, supported by the great moral farce of George Washington, were adopted by a reluctant Congress and carried out under great difficulties* The result was that the foundations were laid for making the dollar the best money in the world* Those of you who have traveled in other countries know what this means* The dollar today is a standard of value for the whole world* "Sound as a dollar* has taken the place of "not worth a continental** In the main and in the long run, the American people have clung to the concept of sound money, and the dollar has been so secure in people's minds that the flow of trade and business could go on unimpeded by worry about the value of their money* This, of course, is one of the reasons for the great prosperity and economic growth of this country* - 6- oqft if, W '- E&milton's bold plan for re-establishing the Nation's credit involved recognizing and funding the Nation's debts, paying interest on them, and retiring them as they came due. The domestic debts owed by the Federal Government, the debts incurred by the 13 colonies in fixating i&e war, and debts owed to foreign countries amounted, in all, to 78 million dollars, a towering sum in those days. Perhaps no more courageous step was ever taken by a financial statesman than Hamilton's action in committing the country to pay this debt in full, even though bonds representing the debt sold in the market at 10 cents on the dollar, or less* But he knew that the surest way to establish confidence in the new Government's financial integrity was to start immediately on a sound program to pay its debts. Before ifce Government could put the plan into effect, it needed money, and needed it badly. No sound financial program was possible without adequate Federal income to pay interest on the debt, to retire the debt as it matured, and to meet Government operating expenses. But the possible sources of Federal revenue were limited. The individual states were jealous of their own prerogatives in levying taxes. The colonists, under the British crown, had vigorously resented such im- posts as the stamp tax on tea and had taken pride in evading British levies on imports. This attitude made the administration of any system of internal taxation extremely difficult. For this reason, and because of the country's heavy dependence on imported products, the Government decided to rely on import duties for most of its income, adding levies on distilled spirits to cover domestic production as well. noQ c.3 ^ - 5 These, and other former Secretaries, faced problems astonishingly like our own: difficulties in raising taxes and borrowing money, despair over the spending pressures upon the Congress, emergencies arising from wars and economic fluctuations. It was under these leaders that we developed the great financial traditions which have shaped the course of our history as surely as have the Declaration of Independence and the Constitution. It was in the year 1789, immediately following the adoption of the Constitution, that Alexander Hamilton became the first Secretary of the Treasury. He was the first Cabinet officer appointed by George Washington, who, incidentally, as you all know, was one of the leading farmers of his day. The country's most immediate and challenging problem was that the country had no money that could be trusted. There were some coins of various nationalities and some paper money issued by the States and the Continental Congress. "Not worth a Continental" was the common phrase which characterized the value of that money. This phrase has come down to us today — and still means what it did then — something which has no soundness or integrity. Our leaders of that day realized that a politically independent and permanent nation was impossible without national financial stability. To achieve this in a raw, new country, with credit virtually destroyed both at home and abroad and with the 13 States strongly opposed to taxation by a federal authority, seemed an almost insurmountable task. - 4- 2^0 life must frankly recognize that the need for military strength, which calls for spending many billion dollars a year, makes more „ difficult our quest for the freer, better life. We are paying taxes that are very heavy, taxes which in themselves levy certain restrictions upon all of us. But we have no alternative. Our joint objectives place heavy strains upon our Government; they force us to examine and strengthen our foundations. We cannot afford unsound, opportunistic, spendthrift government. And, if a sick situation develops, we cannot afford to attempt to cure it with short-sighted and temporary nostrums. We must diagnose the trouble and seek to cure it at the source. OUR GREAT TRAHETICK In this situation, we should be thankful every day for the great traditions of this Nation — for the principles of freedom and selfgovernment and integrity which were built into our Government. In the field of finance, where I labor, we have them too, and I should like to take a few minutes to refresh your memories about them. Every day in my office at the Treasury, I am surrounded by reminders of these traditions. My room, which dates back more than one hundred years, housed many distinguished public servants. Portraits of former Secretaries of the Treasury hang on its walls: Alexander Hamilton, Carter Glass, and Ogden Mills. - 3- A nation, like a family, has to be built on a sound foundation. A sound foundation for life is as broad as life itself. It includes the moral qualities of integrity, diligence, and understanding. But a sound foundation also requires economic solvency. It is the special responsibility of the Treasury to see that our country is solvent — that the economic base for our national life is solid and secure. Only on such a base can we build with assurance for our children and grandchildren. There is a particularly important reason for examining our economic foundation today; we are engaged in a great world struggle which is testing our strength and character to the utmost. In this struggle, we must maintain military power which will deter any aggressor. At the same time, we should exhibit to the world a constantly greater realization and appreciation of the unique advantages of the free way of life which we Americans have inherited and developed. These are the two most effective methods for preventing communism from engulfing the world. The kind of life we seek to maintain is at the opposite pole from communism, in which the individual is the slave of the state — kept so by fear and by force. We seek a life of the greatest possible freedom and opportunity for the development of the individual, the family, and the community. Not for us the rule of controls and restrictions. We believe that a life of freedom is what all mankind basically desires. 2- V9 I have come here also to assure you of the interest and concern of the Secretary of the Treasury and his associates in the present problems of the farmers. There is today no subject receiving more unremitting attention from all departments of Government than this situation. I have, myself, spent many hours on the work of inter-departmental committees considering the export of farm products, which we are trying with some success to stimulate. You are, I know, all aware of the difficulties as well as the successes of that effort and its relation to our foreign policy, m the Treasury, we are also working continuously with the agricultural credit agencies on financing the crops. A practical, realistic farm program is now being threshed out in consultation with the ablest people in the business. This will be presented to the Congress by the President and Secretary Benson. But you have asked me*^day'"SrGlk to you about the problems and programs of the Treasury. So I have taken for my title, "How Firm A Foundation," the opening words of a grand old hymn which many of us here have sung since our early youth. I have chosen it because, in the Treasury, our main concern is to maintain and strengthen the foundations of peace and prosperity in the United States. That is our business — and it is, in truth, big business — the biggest of all. TREASURY DEPARTMENT Washington Address by W. Randolph Burgess, Under Secretary of the Treasury, before the Annual Convention of the American Farm Bureau Federation at Chicago, Illinois, at 10:00 AM, Wednesday, December 14, 1955. HOEf FIRM A FOUNDATION I welcome the opportunity to meet and talk with the members of the American Farm Bureau Federation who have come here from all parts of the country. While banded together to promote the interests of the American farmer, yours is an organization that has always thought in terras of the country as a whole and its long-run welfare. And few organizations have commanded more nation-wide respect and admiration for their statesmanlike approach to national and international problems. Mich credit for the high esteem in which your group is held is, of course, due to the consistently high quality of your leadership. Allan Kline personifies all those admirable qualities that go to make up a great American leader. I know that your lives as well as mine have been enriched by his friendship. His was a job that was hard to fill, but in Charles B. Shuman you have found an able successor. All America stands to benefit from the «teee% traditions of your organization, which he is carrying forward. On behalf of the Treasury Department, I want to acknowledge specifically the aid that this organization has given to the sale of Savings Bonds. These bonds are one of the best means for encouraging thrift, which is so essential to our national growth. Their sale also spreads the national debt widely among our people, which is sound fiscal policy. > } 250 TREASURY DEPARTMENT Washington Address by W. Randolph Burgess, Under Secretary of the Treasury, before the Annual Convention of the American Farm Bureau Federation at Chicago, Illinois, at 10:00 a.m.t0ST.Wednesday, December 14, 1955. HOW FIRM A FOUNDATION I welcome the opportunity to meet and talk with the members of the American-Farm Bureau Federation who have come here from all parts of the country. While banded together to promote the Interests of the American farmer, yours Is an organization that has always thought in terms of the country as a whole and its long-run welfare. And few organizations have commanded more nation-wide respect and admiration for their statesmanlike approach to national and international problems. Much credit for the high esteem In which your group is held is, of course, due to the consistently high quality of your leadership. Allan Kline personifies all those admirable qualities that go to make up a great American leader. I know that your lives as well as mine have been enriched by his friendship. His was a job that was hard to fill but in Charles B. Shuman you have found an able successor. All America stands to benefit from the fine traditions of your organization, which he is carrying forward. On behalf of the Treasury Department, I want to acknowledge specifically the aid that this organization has given to the sale of Savings Bonds. These bonds are one of the best means for encouraging thrift, which is so essential to our national growth. Their sale also spreads the national debt widely among our people, which is sound fiscal policy. I have come here also to assure you of the interest and concern of the Secretary of the Treasury and his associates in the present problems of the farmers. There is today no subject receiving more unremitting attention from all departments of Government than this situation. I have, myself, spent many hours on the work of interdepartmental committees considering the export of farm products, which we are trying with some success to stimulate. You are, I know, all aware of the difficulties as well as the successes of that effort and its relation to our foreign policy. In the Treasury, H-982 we are also working continuously with the agricultural credit agencies on financing the crops. 243 - 2 A practical, realistic farm program is now being threshed out in consultation with the ablest people in the business. This will be presented to the Congress by the President and Secretary Benson. The Fdmnfl&tlfaftS But you have asked me today to talk to you about the problems and programs of the Treasury. So I hasre taken for my title, "How Firm A Foundation," the opening words of a grand old hymn which many of us here have sung since our early youth. I have chosen it because, in the Treasury, our main concern is to maintain and strengthen the foundations of peace and prosperity in the United States. That is our business — and it is, in truth, big business — the biggest of all. A nation, like a family, has to be built on a sound foundation. A sound foundation for life Is as broad as life itself. It includes the moral qualities of integrity, diligence, and understanding. But a sound foundation also requires economic solvency. It is the special responsibility of the Treasury to see that our country is solvent — that the economic base for our national life is solid and secure. Only on such a base can we build with assurance for our children and grandchildren. There Is a particularly important reason for examining our economic foundation today; we are engaged in a great world struggle which is testing our strength and character to the utmost. In this struggle, we must maintain military power which will deter any aggressor. At the same time, we should exhibit to the world a constantly greater realization and appreciation of the unique advantages of the free way of life which we Americans have inherited and developed. These are the two most effective methods for preventing communism from engulfing the world. The kind of life we seek to maintain is at the opposite pole from communism, in which the individual is the slave of the state — kept so by fear and by force. We seek a life of the greatest possible freedom and opportunity for the development of the individual, the family, and the community. Not for us the rule of controls and restrictions. We believe that a life of freedom is what all mankind basically desires. We must frankly recognize that the need for military strength, which calls for spending many billion dollars a year, makes more difficult our quest for the freer, better life. We are for example paying taxes that are very heavy, taxes which in themselves levy certain restrictions upon all of us. But we have no alternative. Our joint objectives place heavy strains upon our Government"; they force us to examine and strengthen our foundations. We cannot afford unsound, opportunistic, spendthrift government. And, if a sick situation develops, we cannot afford to attempt to cure it with short-sighted and temporary nostrums. We must diagnose the trouble and seek to cure Iz at the source. Our Gri@&£ $r&41ti©*i In this situation, we should be thankful every day for the great traditions of this Nation — for the principles of freedom and self-government and integrity which were built into our Government, In the field of finance, where I labor, we have them too, and I should like to take a few minutes to refresh your memories about them. Every day in my office at the Treasury, I am surrounded by reminders of these traditions. My room, which dates back more than one hundred years, housed many distinguished public servants. Portraits of former Secretaries of the Treasury hang on its walls: Alexander Hamilton, Carter Glass, and Ogden Mills. These, and other former Secretaries, faced problems astonishingly like our own: difficulties in raising taxes and borrowing money, despair over the spending pressures upon the Congress, emergencies arising from wars and economic fluctuations. It was under these leaders that we developed the great financial traditions which have shaped the course of our history as surely as have the Declaration of Independence and the Constitution. It was in the year 1789, immediately following the adoption of the Constitution, that Alexander Hamilton became the first Secretary of the Treasury, He was the first Cabinet officer appointed by George Washington, who, incidentally, as you all know, was one of the leading farmers of his day. The countryfs most immediate and challenging problem was that the country had no money that could be trusted. There were some coins of various nationalities and some paper money issued by the States and the Continental Congress. "Not worth a Continental" was the common phrase which characterized the value of that money. This phrase has come down to us today — and still means what it did then — something which has no soundness or integrity. Our leaders of that day realized that a politically independent and permanent nation was impossible without national financial stability. To achieve this in a raw, new country, with credit virtually destroyed both at home and abroad and with the 13 States strongly opposed to taxation by a federal authority, seemed an almost insurmountable task. - 4- 247 Hamilton*s bold plan for re-establishing the Nation's credit involved recognizing and funding the Nation's debts, paying interest on them, and retiring them as they came due. The domestic debts owed by the Federal Government, the debts incurred by the 13 colonies in fighting the war, and debts owed to foreign countries amounted, In all, to JQ million dollars, a towering sum in those days. Perhaps no more courageous step was ever taken by a financial statesman than Hamilton's action in committing the country to pay this debt in full, even though bondsfrepresentIng the debt sold in the market at 10 cents on "the dollar, or less^ But he knew that the surest way to establish confidence in the new Government 's financial integrity was to start Immediately on a sound program to pay its debts. Before the Government could put the plan into effect, it needed money, and needed It badly. No sound financial program was possible without adequate Federal income to pay interest on the debt, to retire the debt as it matured, and to meet Government operating expenses. But the possible sources of Federal revenue were limited. The individual states were jealous of their own prerogatives in levying taxes. The colonists, under the British crown, had vigorously resented such imposts as the stamp tax on tea and had taken pride in evading British levies on imports. This attitude made the administration of any system of internal taxation extremely difficult. For this reason, and because of the country's heavy dependence on imported products, the Government decided to rely on import duties for most of its income, adding levies on distilled spirits to cover domestic production as well. These first steps were designed to make sure that the Nation's income would be adequate to meet its current expenditures, as well as to begin some payment on the debt. In other words, we started with a firm resolve to balance the budget,, and we did it. in 94 out of the first 140 years of our history. But since 1930 we have balanced it only 3 years out of 25. To go back to our ancestors, the second equally important step in support of a program of sound finance was the establishment of the Bank of the United States, which was chartered in 1791 to act as a central bank and be the core of the new American banking system. This is the principle carried on today in our Federal Reserve System. These policies of Alexander Hamilton, supported by the great moral force of George Washington, were adopted by a reluctant Congress and carried out under great difficulties0 The result was that the foundations were laid for making the dollar the best money in the world. Those of you have have traveled in other countries 246 - 5know what this means. The dollar today is a standard of value for the whole world. "Sound as a dollar" has taken the place of "not worth a continental." In the main and in the long run, the American people have clung to the concept of sound money, and the dollar has been so secure in people's minds that the flow of trade and business could go on unimpeded by worry about the value of their money. This, of course, is one of the reasons for the great prosperity and economic growth of this country. Some Questions But,in the past few years, some voices have been raised to question these old principles. World War II, followed so soon after by Korea and the continuing cold war, together with faulty fiscal and monetary policies, produced an inflation which seriously reduced the buying power of the dollar and brought hardship to people who were depending on savings or were living on pensions or fixed incomes. Although certain groups, such as your own, appeared at times to achieve greater prosperity, it was not the kind that lasts. Some people, watching their shrinking dollar, have come to doubt whether traditional policies of sound money could be maintained. I am sure you have heard people say, "What's the use of saving your money, because it will not buy as much when you come to spend it?". Some economists have even gone so far as to predict that this and other countries would face continually rising prices and a gradual decline in the value of money. Our Policies Today Let me reassure you. Today in the Treasury Department we do not believe this. Quite the contrary; we believe firmly that this country can have sound, stable money which will retain its value down the years. We believe, also, that this is the best foundation for a sound and growing economy. Today in the Treasury we are following policies which, while, of course, adjusted to the current needs, are nevertheless aimed at the same objectives as those chosen by Washington and Hamilton 165 years ago. Let me list them. (l) We believe in, and are working toward, a balanced Federal budget. The first year we came into office (1953), there was a deficit of $9-1/2 billion, which we inherited from our predecessors. This we have reduced so that today we have real hope for a balanced budget. This has been done, primarily, by reducing - 6- 245 expenditures by more than $10 billion. With the recognition that our tax rates are too high for the maximum dynamic growth of the economy and the knowledge that big changes in government spending must be cushioned, taxes have been reduced by $7.4 billion. The road block in the way of further substantial economy is the cold war and the imperative need it imposes to keep our country's defenses strong. This is not a problem which can be decided and then forgotten. It represents a struggle which is never-ending — one which we must meet each day. (2) We have sought by many means to distribute the debt more widely among more people. We are trying to lengthen its maturity by the sale of long-term and medium-term bonds. The amount of the floating, or short-term, debt has been reduced. The Savings Bonds Program has been stepped up. This is a direct way in which every citizen can help and in which your organization is helping. (3) We have worked unceasingly to carry out Hamilton's policies of an effective central banking system as the core of a sound financial mechanism. Our principal objective has been to make sure that the Federal Reserve System is assured independence of action for the welfare of the people, without distortion from political pressures. Federal Reserve policy during the past three years has, I believe, contributed positively to our economic strength and stability. Is This Dynamic? What is our answer to those critics who say that these oldfashioned principles are lacking in dynamism and that more and more government spending is required to assure the country's growth and prosperity? Our reply is that the dynamic growth of the United States has exceeded that of any other country in the world. The principle that good money is the best foundation for economic growth is supported by our economic history. Confidence that comes to our citizens from government's adherence to sound principles is proving the best stimulus to dynamism that could be found. All of this may seem remote to some of you, but, in reality, it is very close. The principles I have been talking about — the firmness of our foundation — are interwoven in the fabric of our whole economy. They apply to industry, to trade, and to the professions. They apply to agriculture, too. No one suffers more when the economy is whipsawed by inflation and succeeding deflation. 244 - 7 It is difficult, of course, for the farming community in the present perplexing period to view the prosperity of the country as a whole with entire satisfaction, Nevertheless, a strongly based general economy is an essential background to any sound solution of the farm problem. Sound monetary policies can protect the value of the farmers' savings, which are so necessary a buffer for lean years, Sound policies help towards restraining the inflationary pressures on prices of agricultural equipment and fertilizers and the other things he buys. Furthermore, a sound general economy stimulates rising standards of living, higher standards of nutrition, and increased demand for an ever-widening variety of farm produce. A sound economy stimulates progress, scientific advancement in farm machinery, in fertilizers, in the use of antibiotics. Sound money undergirds a high volume of world trade. The forward movement of th& economy has provided job opportunities for those who leave the farm, and has provided others with part-time jobs that added to their farm incomes. This has helped to protect the per capita incomes of our farm population. While it would not be appropriate for me to try to give you the solution to the farm problem of today, I venture this prediction: That the solution which succeeds will follow the fundamental principles of freedom, integrity, individual self-respect, and confidence based on economic soundness that have made this country great. As George Washington once said: "if, to please the people, we offer what we ourselves disapprove, how can we afterwards defend our work? Let us raise a standard to which the wise and honest can repair. The event is in the hands of God." 0O0 251 UNITH) STATES GOLD TRMJSACTIOHS WITH FOHEIGM COOTTHISS January 1, 1$$$ ~ September 30, 19$$ (In millions of dollars) Negative figures represent net sales by the United States; positive figures, net purchases. * « — ! • — M H M f r M W 111 lllOTPl.i. •• M — — W W — I MM i I .m.llil. I I II M M ^ I Hill I • I— — « — » » — — — — — — » I — — — — « — — W — II Gauntry First Quarter Second Quarter Third Quarter 19$$ 19$$ 19$$ Bolivia..... #3.3> — — — -*&0m France...... -22.5 -#45»0 — Germany..... -10.0 — ~mternational Monetary Fund «2.7 Iran. .•••,••• —«•» — "*$. 3 Korea — — j*$m*"*-I, *} Portugal..... -5..0 — — Uruguay — — 11.0 The Vatican.. — 2 .A — All Others... ~.2 »g -.1 Total -436.9 -44l»7 $8.7 H—•!» ^f5 jw*s-A v ^ " \ ,j ^ / y > 4r- The Treasury Department today made public a report of monetary gold transactions with foreign governments and central banks for the third quarter of 1955. In this period, the United States purchased $11 mllion worth of gold, and sold $2.3 million. These transactions brought to $69.8 million the net outflow of gold from the United States in the first nine months of this year, with U.So gold sales at $87.8 million and U.S. purchases, $lfi million. A table showing net transactions, by country, for the first three quarters of 195$ is attached* 254 TREASURY DEPARTMENT WASHINGTON, D.C. RELEASE MORNING NEWSPAPERS, Wednesday, December 14, 1955* H-983 The Treasury Department today made public a report of monetary gold transactions with foreign governments and central banks for the third quarter of 1955. In this period, the United States purchased $11 mllion worth of gold, and sold ^2,3 million. These transactions brought to $69.8 million the net outflow of gold from the United States in the first nine months of this year, with U.S. gold sales at $87,8 million and U.S. purchases, $18 million. A table showing net transactions, by country, for the first three Quarters of 19^5 is attached. UNITED STATES GOLD TRANSACTIONS WITH FORBIGN COUNTRIES January 1, 1955 - September 30, 1955 (In millions of dollars) Negative figures represent net sales by the United States; positive figures, net purchases. Country First Quarter Third Quarter 1955 Bolivia,,,a, 2955 $3,5 France* „90<,. -22.5 45.0 Hfr Germany...«, -0.0.0 Internationa1 Monetary Fund -2,7 xran.«»••••«• —— -$.3 Korea,,«...., — -1*9' __ Portugal..... -5.0 Uruguay.*...• — The Vatican,, — A34- Others... -a 2 «9 -.1 -436*9 •v4lo7 $8.7 Total B=^.-g-=^i '• L-,1—J~i — 11,0 2.S — - 3 -A T n t M £U» «^ *V 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 454 (b) and 1221 (5) of the Internal Revenue Code of 195k 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 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 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 December 22, 1955 > in cash or other immediately available funds XXX or in a like face amount of Treasury bills maturing December 22. 1955 « Cash JXB$. and exchange tenders will receive equal treatment. Cash adjustments will be made 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 to 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 TREASURY DEPARTMENT Washington / J. FOR RELEASE, MORNING NEWSPAPERS, Thursday, December 1$, 1955 \ ' ^ ^ Uf V I"- The Treasury Department, by this public notice, invites tenders for $ 1,600,000,000 , or thereabouts, of 91 -day Treasury bills, for cash and in exchange for Treasury bills maturing December 22, 1955 9 in the amount of $ 1.600.999.000 » to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated December 22, 1955 a and will mature March 22, 1956 , 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 one-thirty closing hour,4boocofclock p.m., Eastern Standard time, Monday, December 19, 1955 . THE 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 thr decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received 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 MORNING NEWSPAPERS, Thursday, December 15» 1955. H-984 The Treasury Department, by this public notice, invites tenders for $1,600,000,000, or thereabouts, of 91-day Treasury bills, for cash and In exchange for Treasury bills maturing December 22, 1955, in the amount of $1,600,999,000, to be Issued on a discount basis under competitive and non-competitive bidding as hereinafter provided. The bills of this series will be dated December 22, 1955, and will mature March 22, 1956, 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, one-thirty o'clock p.m., Eastern Standard time, Monday, December 19, 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 bido must be made or completed at the Federal Reserve E<r,;ik on Becember 22, 1955, i n cash or other immediately available fuids or in a like face amount of Treasury bills maturing December 22, 195c Cash and exchange tenders will receive equal treatment. Gash adjustments will be made for differences between the par value ;f 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 it 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. >59 TREASURY DEPARTMENT Washington IMMEDIATE RELEASE, Thursday, December 15. 1955 H-985 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 December 3, 1955, inclusive, as follows: Products of the Philippines Imports as of Dec. 3, 1955 s Established Quota * Quantity • 698,188 Buttons 850,000 Gross Cigars 200,000,000 Number Coconut Oil 448,000,000 Pound 135,917,750 Cordage 6,000,000 Pound 4,128,439 Rice 1,040,000 Pound - (Refined Sugars (Unrefined Tobacco 6,500,000 4,114,832 9,946,617 1,904,000,000 Pound 1,867,774,680 Pound 1,064,256 TREASURY DEPARTMENT Washington 26u IMMEDIATE RELEASE, Thursday, December 15 f IQ55. H-985 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 December 3, 1955, inclusive, as follows: Products of the Philippines Buttons Established Quota Quantity 850,000 Unit of Quantity Gross Imports as of Dec. 3, 1955 698,188 4,114,832 Cigars 200,000,000 Number Coconut Oil 448,000,000 Pound 135,917,750 Cordage 6,000,000 Pound 4,128,439 Rice 1,040,000 Pound - 1,904,000,000 Pound (Refined Sugars (Unrefined Tobacco 9,946,617 1,867,774,680 6,500,000 Pound 1,064,256 IMMEDIATE RELEASE, Thursday, December 15, 1955« TREASURY DEPARTMENT Washington 2E H-986 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 3, 1955, inclusive, as follows: Commodity Ihole milk, fresh or sour Period and Quantity Calendar Year 3,000,000 Unit : of : Imports as o; Quantity: Dec. 3, 1?# Gallon 4,227 Cream Calendar Year 1,500,000 Gallon 725 Butter Nov. 1, 1955 - 50,000,000 Pound 85,574 Mar. 31, 1956 Fish, fresh or frozen, filleted, etc., cod, haddock,, hake, pollock, cusk, and rosefish Calendar Year Ihite or Irish potatoes: Certified Seed Other 12 mos. from Sept. 15, 1955 35,432,624 Pound Quota Filled 150,000,000 Pound 60,000,000 Pound Cattle, less than 200 lbs. each .. 12 mos. from April 1, 1955 200,000 l6,244,400 4,823,598 Head 5,096 Cattle, 700 lbs. or more each .... Oct. 1, 1955 - 120,000 Head 2,062 (other than dairy cows) Dec. 31, 1955 Walnuts Calendar Year 5,000,000 Pound Quota Filled Alsike clover seed 12 mos. from Peanuts, whether shelled, not shelled, blanched, salted, prepared, or preserved (including roasted peanuts, but not ineluding peanut butter) July 1, 1955 2,500,000 Pound Quota Filled 12 mos. from Aug. 1, 1955 1,709,000 Pound 1,160,174 * Peanut Oil 12 mos. from 80,000,000 Pound 9,647,078 July 1, 1955 Rye, rye flour, and rye meal 12 mos. from July 1, 1955 Canada 182,280,000 Pound Other Countries 3,720,000 Pound •«• Imports through December 13, 1955* 181,448,198 * IMMEDIATE RELEASE, Thursday, December 15, 1955. TREASURY DEPARTMENT Washington H-^£ 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 3, 1955, inclusive, as follows: Commodity Whole milk, fresh or sour Period and Quantity Calendar Year 3,000,000 Cream Calendar Year 3utter Nov. 1, 1955 - Unit : of : Imports as of Quantity: Dec. 3, 1955 Gallon 4,227 1,500,000 Gallon 725 50,000,000 Pound 85,574 Mar. 31, 1956 Fish, fresh or frozen, filleted, etc., cod, haddock, hake, pollock, cusk, and rosefish Calendar Year White or Irish potatoes: Certified Seed ' Other 12 mos. from Sept. 15, 1955 35,432,624 Pound 150,000,000 Pound 60,000,000 Pound Cattle, less than 200 lbs. each .. 12 mos. from April 1, 1955 200,000 Head Cattle, 700 lbs. or more each .... Oct. 1, 1955 -120,000 Head (other than dairy cows)Dec. 31, 1955 Quota Filled 16,244,400 4,823,598 5,096 2,062 5,000,000 Pound Quota Filled July 1, 1955 2,500,000 Pound Quota Filled 12 mos. from Aug, 1, 1955 1,709,000 Pound 1,160,174 * Walnuts Calendar Year Alsike clover seed 12 mos. from Peanuts, whether shelled, not shelled, blanched, salted, prepared, or preserved (including roasted peanuts, but not ineluding peanut butter) 80,000,000 Pound Peanut Oil 12 mos. from 9,647,078 July 1, 1955 Rye, rye flour, and rye meal 12 mos. from July 1, 1955 Canada Other Countries # IrnDorts through December 13, 19^5 • 182,280,000 3,720,000 Pound Pound 181,448,198 * «%s2— 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 VALUEi Provided, however, that not more than-33-1/3-percent of the quotas shall be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more in staple length in the case of the following countries § United Kingdom, France, Netherlands, Switzerland, Belgium, Germany, and Italyg Country of Origin United Kingdom . uana&a . . . . 0 France . . . . . British India . Netherlands . . Switzerland . • Belgium . . . • Japan . o o o • China - . , . . . , Egypt O O 9 O OI Cuba o o • . «, Germany • • • • , luajiy o o o o » Established TOTAL QUOTA Total Imports s Established Sept. 20, 19 55, to % 33-1/3$ of Dec. 13, 1955 ' s Total Quota 4,323,457 239,690 227,420 69,627 68,240 44,388 38,559 341,535 17,322 8,135 6,544 76,329 2,1.263 425,172 99,948 68,141 9,600 5,482,509 627,361 Imports! 1/ Sept. 20, 19 55, to Dec. 13, 1955 1,441,152 425,172 75,807 68,141 22,747 14,796 12,853 24,500 25,443 7,088 1,599,886 24,500 517,813 l/ Included in total imports, column 2. Prepared in the Bureau of Customs. ro CO TREASURY DEPARTMENT Washington IMMEDIATE RELEASE, Thursday, December 15, 1955. H-987 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 55» to December 13* 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 783,816 247,952 2,003,483 1,370,791 8,883,259 618,723 475,124 5,203 237 9,333 Country of Origin Imports 25,180 40,273 — 8,883,259 368,196 322,197 - Honduras Paraguay Colombia Iraq British East Africa . . Netherlands E. Indies. Barbados l/0ther British W. Indies Nigeria . . 2/0ther British W. Africa ,2/Other French Africa . . Algeria and Tunisia . Established Quota 752 871 124 195 2,240 71,388 21,321 5,377 16,004 689 l/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago. 2/ Other than Gold Coast and Nigeria. jj Other than Algeria, Tunisia, and Madagascar. Cotton, harsh or rough, of less than 3/4" Imports Sept. 20, 19 55, to Dec. 3, 1955 Established Quota (Global) 70,000,000 Imports 4,730,041 Cotton 1-1/8" or more, but less than 1-11/16" Impprt$ Feb. I. 19 55, to Dec. 3, 1955 Established Quota (Global) 45,656,420 Imports 37,695,370 TREASURY DEPARTMENT Washington IMMEDIATE RELEASE, Tiiursday, December 15, 1955. 265 H-987 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 55, to December 13, 1955> inclusive Country of Origin Egypt and the AngloEgyptian Sudan . . Peru . . . . . . . . British India . . . . omna . . . . . * • • Mexico . . . . . . . Brazil . . . . . . . Union of Soviet Socialist Republics Argentina Haiti Ecuador Established Quota 783,816 247,952 2,003,483 1,370,791 8,883,259 618,723 475,124 5,203 237 9,333 Country of Origin Imports 25,180 40,273 8,883,259 368,196 322,197 Honduras Paraguay Colombia Iraq British East Africa . . Netherlands E. Indies. Barbados • l/0ther British W. Indies Nigeria 2/0ther British W. Africa ^Other French Africa . . Algeria and Tunisia • Established Quota 752 871 124 195 2,240 71,388 21,321 5,377 16,004 689 1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago. 2/ Other than Gold Coast and Nigeria. 2/ Other than Algeria, Tunisia, and Madagascar. Cotton, harsh or rough, of less than 3/4" Imports Sept, 20, 19 55, to Dec. 3, 1955 Cotton 1-1/8" or jnore, but less than l-ll/l6B Imports Feb. 1, 19 55, to. Dec. 3. 1955 Established Quota (Global) Imports Established Quota (global) 70,000^,000 4,730,041 45,656,420 Imports 37,695,370 -*2COTTON WASTES (In pounds) COTTON CARD STRIPS made from cotton having a staple of less than 1-3/io inches in length, COMBER WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUEi Provided, however, that not more than 33-1/3 percent of the quotas shall be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more in staple length in the case- of the- following countries: United Kingdom, France, Netherlands, Switzerland, Belgium, Germany, and Italys Established TOTAL QUOTA Country of Origin Total Imports Sept. 20, 19 55, to Dec. 13, 1955 United Kingdom . uanacia . . . . . France . . . . . British India , Netherlands . o « a Switzerland . e o o Belgium 9 O O 9 9 • Japan o o o a • • 9 9 o e China O O 9 O 9 9 Egypt 9 9 9 Cuba • O © O Germany 9 9 Italy . o o o o o 9 Established 33-1/356 of Total Quota Imports Sept. 20, 19 55, to Dec. 13. 195: 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 21,263 425,172 99,948 68,141 9,600 1,441,152 425,172 75,807 68,141 24,500 25,443 7,088 5,482,509 627,361 l/ Included in total imports, column 2. Prepared in the Bureau of Customs. 22,747 14,796 12,853 1,599,886 24,500 517,813 y 266 MEMORANDUM TO MR. MARTIN L. MOORE The following transactions were made in direct and guaranteed securities of the Government for Treasury Investments and other accounts during the month of November, 1965: Purchases $15,409,500.00 Sales 7,516,000.00 I 7,895,500.00 <r -s:: Chief, Investmenta Division Division of Deposits & Investments TREASURY DEPARTMENT WASHINGTON, D.C. IMMEDIATE RELSASE, jf — j^\xm>^^vmmmassBk IL _ l[jLL> - ic ^tcr DuringaJLaE2£S*7l955, market transactions in direct and guaranteed securities of the government for Treasury investment and other accounts resulted in net raates by the Treasury Department of (|)30ij()S7jOOOt 0O0 TREASURY DEPARTMENT 9£A WASHINGTON, D.C. IMMEDIATE RELEASE, Thursday, December 15, 1955. H-988 During November 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 $7,893,500. oOo - 3 6a 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 ($) 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. 4l8, 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. -2- ?K l 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 December 29, 1955 , in cash or other immediately available funds - g^ • or in a like face amount of Treasury bills maturing December 29, 195$ 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, 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 prin or interest thereof by any State, or any of the possessions of the United States 27 i SxkxbtickxJL TREASURY DEPARTMENT Washington C?r>'C FOR RELEASE, MORNING NEWSPAPERS, Monday. December 19, 1955 • f* " '° ^ The Treasury Department, by this public notice, invites tenders for $1,600,000,000 , or thereabouts, of —w— 91 -day Treasury bills, for cash and m in exchange for Treasury bills maturing December 29, 1955 , in the amount of $1,600,010,000 , to be issued on a discount basis under competitive and nonBSE competitive bidding as hereinafter provided. The bills of this series will be dated December 29, 1955 , and will mature amount will be payable without interest. March 29, 1956 , when the face They will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the one-thirty closing hour,/fcw» o!clock p.m., Eastern Standard time, Friday, December 23, 1955 ,_« m Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than 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 FOR RELEASE, MORNING NEWSPAPERS, Monday, December 19, 1955. H-989 The Treasury Department, by this public notice, invites tenders for $1,600,000,000, or thereabouts, of 91-day Treasury bills, for cash and In exchange for Treasury bills maturing December 29, 1955, in the amount of $ 1,600,810,000, to be issued on a discount basis under competitive and non-competitive bidding as hereinafter provided. The bills of this series will be dated December 29, 1955, and will mature March 29, 1956, 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, one-thirty o'clock p.m., Eastern Standard time, Friday, December 23, 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 cor.wianies and from responsible and recognized dealers in Investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders in whole or in part, and his action In any such respect shall be final. Subject to these reservations, non-competitive tenders for $200,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted - 2competitive bids. Settlement for accepted tenders in accordance with-the bids must be made or completed at the Federal Reserve B<-ik on December 29, 1955, in cash or other immediately available fu-uv.* or In a like face amount of Treasury-bills maturing December 29, 1955. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value A: maturing bills accepted in exchange and the issue price of the •-;# bills. The income derived from Treasury bills, whether Interest cr gain from .the sale or other disposition of the bills, does not hav» any exemption, as such, and loss from the sale or other disposj tir,.r of Treasury bill3 does not have any special treatment, as such. under the Internal Revenue Code of 1954 The bills ?re sutj?-^ to estate, inheritance, gift or other excise taxes, v-het .ier "*• --"era * or State, but are exempt from all taxation now or hereafter inr^osea on the principal or interest thereof by any State, or e.ny of tr.n 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 pui'chas-.-, and the amount cc.uall;, 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. 97^ release tf-91 fb* Treasury Departaent announced today that it will re contend to the Congress a one-year extension, *m Deeeaber 51, 1956, of the period within which manufacturers and other business enterprises usirg the life method of accounting may replace oertain inventories and obtain a tax adjustment. ~7**- inventories affected OBWRMMI were liquidated during the period of shortages resulting rem the Korean oriels, ihs Internal Revenue Code provides for am adjustment c^aBBSSBBtowns where such ansmflMBSfeBE? liquidati Ts^Tlcw^^b/x^pX^ement cs£^sacS3Z5SSBm*BB&fc prior to January 1, 1936. Ihe proposed extension would afford another year ia whioh this could b© done. "The prorision is equitable and has the doeirable eaoaociie result of avoidi.-=g artificial pressures for inventory replacement dbrin/ periods of shortage* the T-eas ary said. "It is now sppersnt that shortages kA4*£ til costixs&Mcn certain commodities, 3uch as copper, tt3BRal*atoPBBMRS3M9R *£s&&m3>metkm4mPz%Emm9 and set ertersion of the replacement date would accordingly appear desirable .n r**M&9*&&mm9MBm&M»m&mM&aa& CoeBaerce Secretary ^eelcs wrote to Secretary Humphrey reeoaaaanding an extension, and Secretary Humphrey oonourred i—i a) letter5to Chairaflei Cooper of the House '#*c;s and &eans Committee/***&- Cfa*to~+*~ /Tj^^ / *£isce it will, of oourse, b© impossible to hssre any legislation before ths end of this year, I an using thie r.esns of indicating at this time the p of the. treasury £epartraent on the subject," Secretary Humphrey wrote the ^airajfen. TREASURY DEPARTMENT 274 WASHINGTON, D.C. IMMEDIATE RELEASE, Friday, December 16, 1955. H-990 The Treasury Department announced today that it will recommend t# Congress a one-year extension through December 31, 1956, of the period within which manufacturers and other business enterprises using the Lifo method of accounting may replace certain inventories and obtain a tax adjustment. The inventories affected were liquidated during the period of shortages resulting from the Korean crisis. The Internal Revenue Code provides for a tax adjustment where such a liquidation of a Lifo inventory is followed by replacement prior to January 1, 1956. The proposed extension would afford another year in which this could be done. "The provision is equitable and has the desirable economic result of avoiding artificial pressures for inventory replacement during periods of shortage," the Treasury said. "It is now apparent that shortages have continued on certain commodities, such as copper, and an extension of the replacement date would accordingly appear desirable." Commerce Secretary Weeks wrote to Secretary Humphrey recommending an extension, and Secretary Humphrey concurred and wrote letters to Chairman Cooper of the House Ways and Means Committee and Chairman Byrd of the Senate Finance Committee. "Since it will, of course, be impossible to have any legislation before the end of this year, I am using this means of indicating at this time the position of the Treasury Department on the subject," Secretary Humphrey wrote the Chairmen* ? I3 *-ir/ mrnxm'jssaamNEWSPAPERS* Tuesday, December 20, 19$$* the treasury Department announeed last evening that the tenders for #1,600,000,000 or thereabouts, of 91-day Treasury bills to be dated December 22, 191$$% and to matur Slareh 22, 1956, whieh were offered on Deeember 1$, were opened at the Federal Reserv Banks on December 19. The details of this issue are as follows; total applied for - #2,301,017,000 total aeeepted - 1,600,^92,000 Average price - (intladt* $2Wf68l*#000 entered on a noncoiapetitive basis and aeeepted in full at the average psrief shown bale*-) 99.138/ l^irsleai rat® of diseom^ approx. 2.61§# per annaa tangs of accepted co^etltive bids? - Htgfr Low 99.350 Squiralenfe rat® of discount appreac. 2.572$ par annus n 99.330 » * « * 2.6$1$ per &xsm (111 percent of the amount bid for at the low price was accepted) total Applied for Bistriet Philadelphia Cleveland ' Atlanta Chicago St. Louis Kansas City Dallas San Francisco fOSAL # 37,275,000 1,6714,81*7,000 30,181,000 68,656,000 17,595,000 UO,86^,000 239,^2,000 22,61*1,000 10,270,000 35,833,000 35,385,000 93,928,000 |2,307,017,000 $ 32,275,000 1,030,872,000 i6,oia,ooo 63,91*6,000 17,595,000 U0,86i,00Q 206,692,000 22, 610., 000 10,270,000 35,833,000 31,21*5,000 92,213,000 $1,600,1*92,000 TREASURY DEPARTMENT 276 WASHINGTON, D.C. ffilEASE MORNING NEWSPAPERS, Kesday, December 20, 1955. H-991 The Treasury Department announced last evening that the tenders for #1,600,000,000, jr thereabouts, of 91-day Treasury bills to be dated December 22, 1955, and to ma March 22, 1956, which vrere offered on December 15, were opened at the Federal Re Banks on December 19. The details 'of this issue are as follows: Total applied for - #2,307,017,000 Total accepted - 1,600,1*92,000 Average price - (includes #21*8,681*, 000 entered on a noncompetitive basis and accepted in full at the average price shown below) 99.338/ Equivalent rate of discount approx. 2.618$ per annum Range of accepted competitive bids? High Low ~ - 99.350 Equivalent rate of discount approx. 2.571$ per annum 99.330 " » « » « 2.651$ per annum (1*3 percent of the amount bid for at the low price was accepted) Federal Reserve District Total Applied for Total Accepted Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco # 37,275,000 1,67U, 81*7,000 30,181,000 68,656,000 17,595,000 239,51*2,000 22,61*1,000 10,270,000 35,833,000 35,385,000 93,928,000 # 32,275,000 1,030,872,000 16,01*1,000 63,91*6,000 17,595,000 1*0,861*, 000 206,692,000 22,61*1,000 10,270,000 35,833,000 31,21*5,000 92,218,000 #2,307,017,000 $1,600,1*92,000 i*o,861*,ooo TOTAL -3- Xj or by any local taxing authority. For purposes of taxation the amount of disco at which Treasury bills are originally sold by the United States is considered be interest. Under Sections h$h (b) and 1221 (5) of the Internal Revenue Code 1951* 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. 1*18, 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. 278 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 January 5. 1956 , in cash or other immediately available funds XTOIX or in a like face amount of Treasury bills maturing January 5. 1956 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 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 princ or interest thereof by any State, or any of the possessions of the United States •~79 XXKKtii TREASURY DEPARTMENT Washington c? o i ^ - / ^ V - / 'I / FOR RELEASE, MORNING NEWSPAPERS, Monday, December 26, 1955 • The Treasury Department, by this public notice, invites tenders for #1,600.000.000 , or thereabouts, of 91 -day Treasury bills, for cash and — tr>\ —333 in exchange for Treasury bills maturing January 5. 1956 , in the amount of $ 1.600.062.000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated January 5. 1956 , and will mature April $, 1956 , when the face amount will be payable without interest. They will be issued in bearer form only and in denominations of #1,000, #5,000, |10,000, #100,000, #500,000 and #1,000,0 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the one-thirty closing hour,/1n*fc o'clock p.m., Eastern Standard time, Friday. December "3Q. 1 9 ^ » Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of #1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than thre decimals, e. g., 99*92$. 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 MORNING NEWSPAPERS, Monday, December 26, 1955. H-992 * T h l n ^ r ^ u ? X ^ D e p a r t m e n t ' b y t h i s P u b l * c notice, Invites tenders for $l,bUO,000,000, or thereabouts, of 91-day Treasury bills, for cash and in exchange for Treasury bills maturing January 5, 1956 in the amount of $1,600,062,000. 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 5, 1956, and will mature April 5. 1956, 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, one-thirty o*clock p.m., Eastern Standard time, Friday, December 30, 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 ' with the bids must be made or completed at the Federal Reserve Bank on January 5, 1956, in cash or other immediately available funds or in a like face amount of Treasury bills maturing January 5, 1956. 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 actuallyreceived 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, oOo REkEASI M0R8IHG MliSPAPEBS, Saturday, December 21*, 1955* jA ' 1 l 38i the Treasury Department announced last evening that the tenders for #1,600,000,00 or thereabouts, of 91-day treasury bills to be dated Beceaber 29, 1955, and to Mature March 29, 1956, which were offered on December 19, were opened at the Federal Reserve Banks on December 23* The details of this issue are as follows: Total applied for - $2,404,224,000 Total aeeepted - 1,600,521,000 (includes $194,332,000 entered on a noncompetitive basis and aeeepted In full at the average price shown below) Average price - 99*321 Equivalent rate of discount approx. 2.633£ p%r annua Range of aeeepted competitive bids: High - 99.355 Equivalent rate of discount approx. 2.552# per annua Low - 99.317 " n • « « 2.702* * (79 percent of the amount bid for at the lew price was aeeepted) Federal Reserve Total Total District Boston Mew York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco total Applied for Accepted % 26,674,000 1,844,078,000 29,838,000 60,981,000 16,033,000 22,099,000 192,430,000 46,814,000 5,619,000 36,435,000 25,148,000 98,075,000 I 19,233,000 1,180,553,000 12,240,000 48,531,000 12,895,000 18,928,000 118,788,000 39,393,000 5,219,000 32,637,000 20,465,000 91,639,000 $2,404,224,000 §1,600,521,000 • TREASURY DEPARTMENT WASHINGTON. D.C. RELEASE MORNING NEW5FAFKK3, Saturday, December ,24, 1955* H*-993 The Treasury Department announced last evening that the tenders for $1,600,000,000 or thereabouts, of 91-day Treasury bills to be dated December 29, 1955, and to mat March 29, 1956, which were offered oh December 19, were opened i% the federal Rese Banks on December 23. The details of this issue are as follows: Total applied fo1^ - 12,404,2^4,000 Total accepted - 1,600,521,000 (includes $1194,332,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Average price - 99.321 Equivalent rate of discount approx. 2.688£ per annum Range of accepted competitive bids: ^^ . 99.355 Equivalent rate 6f discount approx. 2.552# per annum Low - 99.317 * n n « « 2.702* « (79 percent of the airiount bid for at the low price was accepted) Federal Reserve Total ^otal Distrjcfr « x ' Applied for Accepted -ft $ ?6 674 000 19,233,000 sssr Ic SfeS SfS* A t } a n t a chioae6 St K^SE 1Q2 L30000 IA flu'noo « 928 000 118,788,000 39 393,000 - LoulS Minneapolis ^'619 OOT , £ M ? 000 5 219 000 32,^37,000 Kansas City DallaE < S'g'ooO 980750dO 20 U65 000 91,639,000 San Frencisco yp,i>f:>»"w Total *>fhOli,K!„000 2 ' $1,600,521,000 383 Q)Qd * Y^ IMEDIATE RELEASE 1 ^ I t O * . % December 2% n 1955 The Bureau of Customs announced today that the absolute quota of 1,709,000 pounds of peanuts, whether shelled, not shelled, blanched, salted, prepared, or preserved (including roasted peanuts but not including peanut butter) was filled for the quota period August 1, 1955 - July 31, 1956, inclusive, by entries and withdrawals for consumption presented on December 20, 1955. (i J«4 TREASURY DEPARTMENT WASHINGTON, D.C. IMMEDIATE RELEASE Friday, December 23, 1955 H-994 The Eureau of Customs announced today that the absolute quota of 1,709,000 pounds of peanuts, whether shelled, not shelled, blanched, salted, prepared, or preserved (including roasted peanuts but not Including peanut butter) was filled for the quota period August 1, 1955 - July 31, 1956, inclusive, by entries and withdrawals for consumption presented on December 20, 1955« 0O0 - 2 June, 1920, as a prohibition agent. He quickly developed a thorough knowledge of investigative methods, and helped bring to justice many notorious lawbreakers, particularly violators of the narcotics laws. Mr. and Mrs. Harney live at 4325 Verplanck Place, Northwest, Washington. W ^J v> Diafto of roloaso for Friday, December 30, 1955 n , £/" i?< Treasury Secretary Humphrey today announced that Malachi L. Harney, Technical Assistant to the Secretary for Enforcement, had requested retirement effective tomorrow, after more. than 35 years of Government service. Mr. Harney who is 60 years of age, has agreed to hold himself available for service as a consultant on Treasury law enforcement problems. The position which he is leaving was created in January, 1952, as a career post under the civil service, and Mr. Harney was the first appointee. He had served as Assistant to the Commissioner of Narcotics since 1936, with additional duties much of the time as Assistant Coordinator or Acting Chief Coordinator of Treasury enforcement agencies. As Technical Assistant to the Secretary he directed the development of nationwide and international Treasury law enforcement policies, helped work out many improved law enforcement techniques, and directed training programs for enforcement officers. He also had such responsibilities as control of enforcement operating costs and the improvement of enforcement communications. Minnesota-born, he was a Marine officer in World War I. He joined the Internal Revenue Service of the Treasury in TREASURY DEPARTMENT WASHINGTON, D.C. IMMEDIATE RELEASE Friday, December 30, 1955 H-995 Treasury Secretary Humphrey today announced that Malachi L. Harney, Technical Assistant to the Secretary for Enforcement, had requested retirement effective tomorrow, after more than 35 years of Government service. Mr, Harney, who is 60 years of age, has agreed to hold himself available for service as a consultant on Treasury law enforcement problems. The position which he is leaving was created in January, 1952, as a career post under the Civil Service, and Mr. Harney was the first appointee. He had served as Assistant to the Commissioner of Narcotics since 1936, with additional duties much of the time as Assistant Coordinator or Acting Chief Coordinator of Treasury enforcement agencies. As Technical Assistant to the Secretary he directed the development of nationwide and international Treasury law enforcement policies, helped work out many improved law enforcement techniques, and directed training programs for enforcement officers. He also had such responsibilities as control of enforcement operating costs and the Improvement of enforcement communications. Minnesota-born, he was a Marine officer in World War I. He joined the Internal Revenue Service of the Treasury in June, 1920, as a prohibition agent. He quickly developed a thorough knowledge of investigative methods, and helped bring to Justice many notorious lawbreakers, particularly violators of the narcotics laws. Mr. and Mrs. Harney live at 4325 Verplanck Place, Northwest, Washington. o©@ 388 mum wmm mums* AC—9^ <? ^ fh® f m r a y I*partMmt aiwouaied la»t m m L a g that the teadare for |l,60O,O00,0QC or thereabout®, of 91-4ay fmmm b&U§ to be dattd January 5 and to islm April 5, 1956, whi&b ufere offered os* Beeeiaber Z6$ mm opened at tfc© federal Easerr© Banks Beoesiw 30. flue details of this issue are as follows: Total applied, for - ft, 1*58, W*3, 000 fatal aooepted - 1,600,17^,000 (iaelades |t33,5h5,000 entered oa a noncompetitive basis and aeeepted la full at the average price shown below) Avesaga prine - 99*3?1 l$4*a2aift rate ## discount approx. 2.1*89$ per anmsra tange of accepted competitive bidss (ixeepting one tender of $1,000,000) Stgi - 99.393 Ityttataat «*ta of discount approx. 2.1*01$ per annum Low - 99366 « « « » » t$m% * * (kk ptttMBfe of the aaount bid for at the low price was accepted) fedaral Beserv© Dlstriet f^tal Applied for- Bottom | 1S#950,000 | 10,1*50,000 «@w fork l»m#67UfOOO HdXadelfhia 1*8,295,000 03^ela*ii ta.,039,000 H#moi»l 7,556,000 Atlanta S*,a08#000 Ohieago 329,51+5,000 St. I M I I 19,518,000 MLBnaapolitf 6,359,000 Itesai GMgr 1*0,200,000 MLUm 39,^91,000 fOfal |t»li$S,Ui3,000 San frtamUoo 85,608,000 total Accepted l,O53,6W*,O00 32,O75#OO0 !a,O39,000 6,756,000 21,278,000 a66,18d,OO0 18,1*90,000 6,359,000 37,900,000 3k,691,000 $1,600,^78,000 63,608,000 389 TREASURY DEPARTMENT I3S22IS^2Z2E2SS; KEsr.3E3X.:rn£K2r: z. - WASHINGTON, D.C RELEASE MORNING NEWSPAPERS, Saturday, December 31, 1955. H-996 The Treasury Department announced last evening that the tenders for $1,600,000,000, or thereabouts, of 91-day Treasury bills to be dated January $ and to mature Apri 1956, which were offered on December 26, were opened at the Federal Reserve Banks December 30. The details of this issue are as followsj Total applied for - $2,1*58,1*1*3,000 Total accepted - 1,600,1*78,000 Average price (includes $213,51*5,000 entered on a noncompetitive basis and accepted in full at the average price shown belc'i) - 99.371 Equivalent rate of discount approx. 2.1*89$ per annum . Range of accepted competitive bids: (Excepting one tender of $1,000,000) High Low - 99.393 Equivalent rate of discount approx. 2.1*01$ per annum - 99.366 " " " " " 2.508$ " " (1*1* 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 $ 18,950,000 1,797,67U,000 1*8,295,000 la, 039,000 7,556,ooo _ 2U,208,000 329,51*5,000 19,518,000 6,359,000 1*0,200,000 39,191,000 85,608,000 TOTAL $2,1*58,1*1*3,000 oOo Total Accepted $ 18,1*50,000 l,053,6bl*,000 32,075,000 1*1,039,000 6,756,000 21,278,000 266,158,000 18, lj 90, COO 6,359,000 37,900,000 3li,6?l,000 63,603,000 §l,600,li78,000 Treas. HJ 10 .A13P4 v.105 Treas. HJ 10 .A13P4 U.S. Treasury Dept, Press Releases U.S. Treasury Dept. Press Releases TITLE v.105 DATE LOANED BORROWER'S NAME LIBRARY 1 0031