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treasury

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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*

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,

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 •

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 -

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'

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

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-

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-

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-

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-

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

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

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

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

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

W A S H I N G T O N , D.C

~^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

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

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

°"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«)

(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

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 -

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

-day Treasury bills, for cash and

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

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

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

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

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

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 ^

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

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

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

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

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

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

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

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:

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,

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©©

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

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-

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

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

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

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 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.

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 -

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.

*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*

-«-

^^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

f&*

£K&AM-J

-«/" ^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

its task force

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"

-.,

>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-

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-

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-

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

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

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*

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

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 -

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

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

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

"HBg—

in exchange for Treasury bills maturing
$1,600,714,000

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.

~^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-

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

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

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)

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~$

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

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

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

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 -

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-

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

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

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

22,747
14,796
12,853

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

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)

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

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

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

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
.,

T "

rniiir

'•'•-••-

' niiMniiuii

„

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

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»

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

/""^ /'

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*

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

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 -

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

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

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,
Thursday, November 17, 1955

The Treasury Department, by this public notice, invites tenders for
$1,600,000,000

, or thereabouts, of

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

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

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.

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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

£,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

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-

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

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

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£

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

^... ^ ^

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*

***•*»#*

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« ****

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*

-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

-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

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-

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

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

BKKIEQ&XI
H35KK
TREASURY DEPARTMENT
Washington

„ ^^ ^..

\ i
FOR RELEASE, MORNING NEWSPAPERS,
Thursday. December 1, 1955
•

* *

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

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

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

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.

~ 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

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

•'

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

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
_

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\\
>

;

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®

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

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-

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

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

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 / /

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

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

1,651,249,017
;
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

...

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 ™ «

47,881,876,700

Treasury notes
BondsTreasury
* Savings (current redemp. value)
D.po.1,.,.

ZZJ,.-hi
Special FundsCertificates of Indebtedness

80,710,594,700

•

^^
^
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

«•.«,

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.

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 -

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

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,
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

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

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

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

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

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-^£

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

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

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

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

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

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

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

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

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

•

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

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—

-day Treasury bills, for cash and

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,

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

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-

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

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

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

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

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
«

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

$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.

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

£/" i?<

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)

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

Full text of Press Releases of the United States Department of the Treasury : Volume 105

FRASER