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jUN 1 ^ 1972
TREASUKV Off****

RELEASE MORNING NEWSPAPERS,
Saturday, September 1, 1956.

H-1154

Y^wj.—
77^.«-"~

The Treasury Department announced last evening that the tenders for $1,600,000,000,
or thereabouts, of 91-day Treasury bills to be dated September 6 and to mature
December 6, 1956, which were offered on August 28, were opened at the Federal Reserve
Banks on August 31«
The details of this issue are as followsJ
Total applied for - $2,U86,9Ui,000
Total accepted
- 1,600,551,000

(includes $220,llU,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
- 99.308/ Equivalent rate of discount approx. 2.736? per annum

Average price

Range of accepted competitive bids: (Excepting one tender of $500,000)
High - 99*312 Equivalent rate of discount approx. 2.722? per annum
Low
- 99.306
«
«
»
»
"

2.7U5? "

(i*2 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 CityDallas
San Francisco

35,556,000
l,9U9,6Ji2,000
30,138,000
U2,35U,000
15,353,000
21,15U,000
215,223,000
20,1*29,000
9,656,000
29,835,000
28,Wil,000
89,163,000

*
23,506,000
1,209,032,000
11,965,000
33,63U,000
13,7U5,000
17,625,000
1145,838,000
17,329,000
9,056,000
25,130,000
18,oia,000
75,650,000

|2,1|86,9W*,000

$1,600,551,000

Total

-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 li51i (b) and 1221 (5) of the Internal Revenue Code of
195b the amount of discount at which bills issued hereunder are sold is not
considered to accrue until such bills are sold, redeemed or otherwise disposed 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. !tl8, Revised, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue. Copies
of the circular may be obtained from any Federal Reserve Bank or Branch.

- 2

2 percent of the face amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank or trust
company.
Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the
Treasury Department of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect shall be
final. Subject to these reservations, noncompetitive tenders for $200,000 or less
without stated price from any one bidder will be accepted in full at the average
price (in three decimals) of accepted competitive bids. Settlement for accepted
tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on September 15. 1956 , in cash or other immediately available funds
or in a like face amount of Treasury bills maturing September 13. 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 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 principa
or interest thereof by any State, or any of the possessions of the United States,

4
SxhihuUfexx
ItisxKfc
TREASURY DEPARTMENT
Washington

US J

FOR RELEASE, MORNING NEWSPAPERS,
Thursday. September 6, 1956
The Treasury Department, by this public notice, invites tenders for
$1,600,000,000

, or thereabouts, of

-day Treasury bills, for cash and

~m~

in exchange for Treasury bills maturing
$1,601,545,000

September 15, 1956
, in the amount of
2$pjx
, to be issued on a discount basis under competitive and non-

*5F
competitive bidding as hereinafter provided.
dated September 15, 1956 , and will mature

The bills of this series will be
December 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
one-thirty
Daylight Saving
closing hour,/tax o'clock p.m., Eastern/««»oafiRfsfl time, Monday, September 10, 1956.

?B5
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
WASHINGTON, D.C.
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, September 6. 1956

H-II55

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 September 13, 1956,
In the amount of $ 1,601,5^3,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided* The bills of this series will be dated September 13, 1956*
and will mature December 13, 1956, when the face amount will be
payable without interest. They will be issued in bearer form only^
and in denomination 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 Daylight
Saving time, Monday, September 10, 1956.
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
ranee 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) oi accepted

- 2 competitive bidse Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on September 13, 1956,in cash or other immediately available funds
©r in a like face amount of Treasury bills maturing September 13, 195
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price of the new
bills*
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, 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

//^/AT^

flit treasury Department ai«a©uneed l*mm eTOt&Mt t&atlta* tender* for $1,600,000,00
or t^r*afemita» of 9l~4my treasury UUa to be dated September 13, and to Mtu» amn

13, 1956, which were of f ered on September 6, mm opened at the Federal Beseanre Banks
on September 10.
The details of t&is issue are as iollow©:
£1 total applied for - ft£»3$5*b£6>QOO
fetal eee«»te4
- 1*600,1*83,000 (includes |293,16S,O0O entered ©*
a noiMSomootittY* beats aad aeeepfced In
fall «t tha average prim* shown BWJ*ar)ii,y,
Average price
- 99*300 EeM****** * & t e °* <tt*coa*t approx. 2.770* par annua
^* ^
State
T a .ered :o
Rang* e£ aaeepted #©^>etitit» bidet (Excepting one tender of | I ^ 0 ® ^ 0 » ) ax
tscour
ch uix^s* * ^ ea
Hieii
- 99.312 Equiw2Jwit rat* of discount epfOW. 2.722* *e* annum
iJSr
- 99.29$
*
• >o •
"
* c t 2.78931 • ? "
(£7 percent or the amount

or at tae low price wae accepted)

federal Reserve
District

total
Applied for

fotalr*
Accepted

Beaton
Hew York
Philadelphia
Cleveland
Eicbaond
Atlanta
Chicago
: t. Louis
Minneapolis
Kansas City
Dallas
San Francisco

| 36,264,000
1,735,969,000
29,342,000
71,171,000
25,564,000
60,^14,000
231,UB7,QOO
25,703,000
15,473,000
59,740,000
46,295,000

$
24,26U,000
1*066,271,000
lU,3i»2,000
60, $21^030 eo
25,56b,000
59,975,000
170,837,000
2t,903,000
15,078,000
S,92U,000
,906,000

TOTAL

Wayfrpy
$2,335,426,(W

AFHussey

^ \

$l,6O0,U83,00O

RELEASE IUORNING NEWSPAPERS,
Tuesday, Sept amber 11, 1956.

H-1156

The Treasury Department announced last evening that the tenders for $1,600,000,000,
or thereabouts, of 91-day Treasury bills to be dated September 13 and to mature December
13, 1956, which were offered on September 6, were opened at the Federal Reserve Banks
on September 10 *
The details of this issue are as follows:
Total applied for - $2,385,1*26,000
Total accepted
- 1,600,U83,000 (includes $293,765,000 entered on
a noncompetitive basis and accepted in
full at the average price shown below)
Average price
- 99.300 Equivalent rate of discount approx. 2.770£ per annum
Range of accepted competitive bids: (Excepting one tender of $1,000,000)
High - 99.312 Equivalent rate of discount approx. 2.722$ per annum
M
!t
Low
- 99.295
" "
"
2.789^ »

(87 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

36,2614,000
1,735,969,000
29,3l'-2,000
71,171,000
25, 561;, 000
60,5lU,000
231,U87,000
25,703,000
15,U78,000
59,71*0,000
U6,298,000
U7,396,000

$2,385,1*26,000

2U,26U,000
1,066,271,000
H*,3U2,000
65,521,000
25,$6U,000
59,975,000
170,837,000
2U,903,000
15,078,000
53,92U,000
UO,908,000
38,896,000

$1,600,U83,000

STATUTORY

DEBT

LIMITATION

.^TREASURY D E P A R T M E N T

AS w-JKHKLatJP*

- s££E%56

Washington, ...„.fT.
«
Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under authority
of that Act, and the face amount of obligations guaranteed as to principal and interest by the United States (except such guar-

shall be considered as its face amount." The Act of July 9, 1956,(P°Lo 678 84th Congress) provides that during the period
beginning on July 1, 1956, and ending on June 30, 1957, the above limitation ($275,000,000,000) ahall be temporarily increased
by $3,000,000,000.
T h e following table shows the face amount of obligations outstanding and the face amount which can still be issued under
this limitation:
Total face amount that may be outstanding at any one time
9£fO,wU»S/w,WU
OutstandingObligations issued under Second Liberty Bond Act, as amended
Interest-bearing;
Treasury bills $20,808,535f000
Certificates of indebtedness
Treasury notes ...
BondsTreasury
* Savings (current redemp. value)
Depositary.
Investment series
Special FundsCertificates of indebtedness
Treasury notes!
Total interest-bearing
.
Matured, interest-ceased
Bearing no interest:
United States Savings Stamps
Excess profits tax refund bonds
Special notes of the United States:
Internat'l Monetary Fund series
Total

19,523,309,000
35.122,318.000
81,828,217,200
571338,202,898
303,402,000
11.930.780.000
35»561,062,000
10.493.Q52.400

751^1162,000

1 5 1 ,400,602,098

46.Q54.ll4.4Q0
272,908,878,498
4*/3t891,32o

47,079,825
981,523
1.673.000.QQQ
-

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A
78,625,4-50
Matured, interest-ceased
802.550
v
Grand total outstanding
„
Balance face amount of obligations issuable under above authority

1.721.06l»348
275.103t831»172

79.428.000

Reconcilement with Statement of the Public Debt ..*ftSJJ§.t?..23-.JI...!!;95§.
(Data)
(Daily Statement of the United States Treasury,
A%S)i?.1?..,23:.»..,.?S59.
..
(Date)
OutstandingTotal gross public debt
Guaranteed obligations not owned by the Treasury.
H
Total gross public debt and guaranteed obligations.
„
Deduct - other outstanding public debt obligations not subject to debt limitation

275.183.259 .172,
2»8l6.74Q.82o

275,564,737,410
79^428.000
275,644,165,410
460.9Q6.23Q
275,183,259*172

H-1157

STATUTORY DEBT LIMITATION
AUGUST 3 1 , 1956
Aq n F
AS 0 F
"

TREASURY DEPARTMENT
Fl.cl Service
w
Sept. 1 1 , 1956
Washington,
( • c A U o n ^* o^^cond Liberty Bond Act, as amended, provides that the face amount of obligations issued under authority
ot that Act, and the face amount of obligations guaranteed as to principal and interest by the United States (except such cuarant<
(A<
Q

V'Wl
""J "*a"y """g*1'"" '«^"^u on a discount basis which is redeemable prior to maturity at the option ^. m C „„„„
shall be considered as its face amount." The Act of July 9, 1956/P L. 678 84th Congress) provides that during the period
b B13n000 000 000
ending on June 30, 1957, the above limitation ($275,000,000,000) ahall be temporarily increased

The following table shows the face amount of obligations outstanding and the face amount which can still be i
this limitation:
Total face amount that may be outstanding at any one time
$278,000,000,000
OutstandingObligations issued under Second Liberty Bond Act, as amended
Interest-bearing;
Treasury bills $20,808,535,000
Certificates of indebtedness
Treasury notes
BondsTreasury
* Saving?! (current redemp. value)
Depositary.
Investment series
Special FundsCertificates of indebtedness
Treasury notes.
Total interest-bearing
Matured, interest-ceased
Bearing no interest:
United States Savings Stamps
Excess profits tax refund bonds
Special notes of the United States:
Internat'l Monetary Fund series
Total

19.523*309,000
35,122,318,000
81,828,217,200
57.338,202,898
303.402,000
11.930.780,000

$ 75»^•

162,000

151,400,602,098

3 5 • 56l»0629000
.,10^433,052,400
....

_ M * 0 5 4 j a 4 ^ M
2?2,908,8?8,498
473.891.326

47*079*825
981,523
1,673.000,000
-

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A
73,625*450
Matured, interest-ceased
.
. ^ g O ^ ^
T
Grand total outstanding
Balance face amount of obligations issuable under above authority

1*721,0,61,348
275,103.831,172

79^8,000

Reconcilement with Statement of the Public Debt. August .31*.. 1.959.
(Date)
(Daily Statement'of the United States Treasury
^ U | ^ t 31jL..i?39....
v
(Date)
OutstandingTotal gross public debt
Guaranteed obligations not owned by the Treasury.
„
„
Total gross public debt and guaranteed obligations,
~
Deduct - other outstanding public debt obligations not subject to debt limitation

27,5*^83.259.172
2*816.740.828

275.564,737*410
7 9 14^8,000
275.644,165,410
460.906.238
275.183*259.172

H-U?7

TREASURY DEPARTMENT
Washington

JL \y

H-1158

IMMEDIATE RELEASE,
Thursday. September 13. 195o.

The Bureau of Customs announced today preliminary figures showing the
quantities of -wheat and wheat flour authorized to be entered, or withdrawn
from warehouse, for consumption under the import quotas established in the
President's proclamation of May 25, 19Ul, as modified by the president's
proclamation of April 13, 19U2, for the 12 months commencing May 29, 1956,
as follows?

Wheat
Country
of
Origin

' Established ;
Imports
:
Quota
sMay 29, 19565 to
sSept. 11. 1956
(Bushels)
(Bushels)

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

795,000

Hfrieat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established
Quota
(Pounds)
3,815,000
2lt,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000

iU,ooo
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

Imports
May 29, 19%
to Sept. 11.
(Pounds)
3,815,000

695

1,000

TREASURY DEPARTMENT
Washington

11
H-115B

MMEDIATE RELEASE,
r
hursday, September 13, 195o.

The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour authorized to be entered, or withdrawn
from warehouse, for consumption under the import quotas established in the
President's proclamation of May 23, 19Ul, as modified by the president's
proclamation of April 13, 19U2, for the 12 months commencing May 29, 1956,
as follows?

Wheat
Country
of
Origin

* Established 1
Imports
:
Quota
tMay 29, 1956, i
8
s
Sept. 11, 1956
(Bushels)
(Bushels)

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

795,000

Wheat flour, semolinax
crushed or cracked
wheat, and similar
wheat products
Established :
Imports
Quota
1 May 29, 1956|
* to Sent. 11. 1956
(Pounds)
(Pounds)
3,815,000
2U,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000

iU,ooo
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

3,815,000
«=
—
_
—

695
—
-

1,000
«—
—
—
—
—
—
—
mm

—
—
—
—
—
-

TREASURY DEFARTMENT
Washington

IMMEDIATE RELEASE,
Thursday, September 13, 1956.

H-1159

The Bureau of Customs announced today the following preliminary
figures showing the imports for consumption from January 1, 1956, to
August 31, 1956, inclusive, of commodities for which quotas were
established pursuant to the Philippine Trade Agreement Revision Act
of 1955:

Commodity

"' ':
: Unit
:
: Established Annual :
of
: Imports as of
. Quota Quantity
, Quantity : August 31, 1956
•

Buttons 807,500 Gross 402,671
Cigars 190,000,000 Number 2,574,685
Coconut Oil 425,600,000 Pound 119,054,667
Cordage 6,000,000 Pound 2,949,604
(Refined 13,784,885
Sugars
(Unrefined

1,904,000,000

Tobacco 6,175,000 Pound 3,013,460

Pound
1,611,896,975

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE*
Thursday a September 13, 1956

H-1159

0 0 0 0 9 0 0 0 0 0 0 0 9 0

o o o e e o o o o o e o o o o o e

Coconut Oil

o o o o o o o o o o o o o o o o

G o o e e o o e e o Q o o o o o o o o

(Refined

8075500

Gross
2,574,61

190,000,000
425,600,000
6,000,000

0 0 0 0 0 0 6 0 0 0

Sugars

l,90ii,000,000

* o c o © o o

e o o o o o o o o e o o o e o o o o

9'**mmJ.9

6,175,000

Pound

013,160

>9VJ-.J9

IMMEDIATE RELEASE,
Thursday. September 13

1956

TREASURY DEPARTMENT

*
Washington
H-1160
The Bureau of Customs announced today preliminary figures showing*-vhe imports
for consumption of the commodities listed below within quota limitations from the
beginning of the quota periods to August 31, 1956, inclusive, as follows:
Unit :
of
: Imports as of
Quantity:Aug. 31, 1956

Commodity
Tariff-Rate Quotas:
Cream, fresh or sour Calendar Year 1,500,000

Gallon

527

Whole milk, fresh or sour Calendar Year 3,000,000

Gallon

1,675

Cattle, less than 200 lbs. each. 12 mos. from
April 1, 1956

200,000

Head

U,52li

Cattle, 700 lbs. or more each .. July 1, 1956 - 120,000
(other than dairy cows)
Sept. 30, 1956

Head

1,837

Pound

Quota Filled

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

(I!
35,196,575

Tuna fish April 16, 1956 - 28,757,393
Dec. 31, 1956
White or Irish potatoes:
Certified Seed
Other

12 mos. from
Sept. 15, 1955

Pound 17,U91,176

150,000,000
60,000,000

Pound
Pound

139,892,180
Quota Filled

Walnuts Calendar Year

5,000,000

Pound

Quota Filled

Alsike clover seed 12 mos. from
July 1, 1956

2,500,000

Pound

15,059

Peanut Oil 12 mos. from
July 1, 1956

80,000,000

Pound

Peanuts, whether shelled, not
shelled, blanched, salted, prepared, or preserved (including
roasted peanuts, but not
12 mos. from
including peanut butter)
Aug. 1, 1956

1,709,000

Pound

Quota Filled

Rye, rye flour, and rye meal .. 12 mos. from
July 1, 1956
Canada
182,280,000
Other Countries
3,720,000

Pound
Pound

182,065,U68

Absolute Quotas:

(2)

Imports for consumption at the quota rate are limited to 26,397,U32 pounds
during the first nine months of the calendar year.
(2) Imports through September 10, 1956.

A- [(<

RELEASE MORNING NEWSPAPERS,

Saturday, September l f 1956«

The Treasury Department announced last evening that the tenders for $1,600,000,000,
or thereabouts, of 91-day Treasury bills to be dated September 6 and to nature
Deoeefcer 6, 1956, which were ottmrmd on August 28, were opened at the Federal Reserve
Banks on August 11.
The details of this issue are as follows:
Total applied for - $2,W6,9W*,0Q0
Total accepted
- 1,600,551,000

(includes $220,11*,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
Average price
- 99.306/ Equivalent rate of discount approx. 2.736$ pmr annum
Range of accepted competitive bides (Excepting one tender of $500,000)
High - 99*312 Equivalent rate of discount approx. 2.722$ per annum
LOW
- 99.306
»
* *
m
n

2.7kS% «

(ii2 percent of the amount bid for at the low price was accepted)
Federal Reserve
District

Total
applied for

Total

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

$ 35,556,000
1,9*9,6*2,000
30,136,000
U2,35u,000
15,353,000
21,l5*,O0O
215,223,000
20,«29,000
9,656,000
29,815,000
28,UpL,000
89,163,000
$2,*86,9**,0OO

$
23,566,000
1,209,012,000
11,965,000
33,63t,000
13,7*5,000
17,625,000
1*5,836,000
17,329,000
9,056,000
25,130,000
18,0*1,000
75,650,000

W\-

$i,6oo,55i,ooo

IMMEDIATE RELEASE,
Phursdav. September 13 1956
"
*
•"—Z*--

TREASURY DEPARTMENT
Washington

H-1160

The Bureau of Customs announced today preliminary figures showing the imports
>r consumption of the commodities listed below within quota limitations from the
jginning of the quota periods to August 31, 1956, inclusive, as follows?

Commodity

Period and Quantity

Unit ?
of
% Imports as of
t QuantitygAugo 31, 1956

riff-Rate Quotas;
earn, fresh or sour .

o o o o e « 9 9 0

ole milk, fresh or sour ...

Calendar Year

1,500,000

Gallon

Calendar Year

3,000,000

Gallon

200,000

Head

*,52i*

120,000

Head

1,837

35,196,575

Pound

Quota Filled

April 16, 1956 =
- 28,757,393
Dec. 31, 1956

Pound

17,1*91,176

ttle, less than 200 lbs» each. 12 mos, from
April 1, 1956
ttle, 700 lbs. or more each .. July 1, 1956 other than dairy cows)
Sept. 30, 1956
sh, fresh or frozen, filleted,
t c , cod, haddock, hake,
Calendar Year
allock, cusk, and rosefish •
? a fish o o o o o o o o

o o © © o

527

Lte or Irish potatoes s
m*mA^JL7

o o o o o e o e o o e o e e o o o a o o o o o o o

12 mos. from
150,000,000
Septa 15, 1955 60,000,000

Pound
Pound

139,892,180
Quota Filled

Lnuts

o o o o o o o e o e o o o o o o

Calendar Year

5,000,000

Pound

Quota Filled

12 mosc from
July 1, 1956

2,500,000

Pound

80,000,000

Pound

1,709,000

Pound

Quota Filled

182,280,000
3,720,000

Pound
Pound

182,065,U68
-

?2r&XX16Cl

O 6 6 Q

o o p o o o o o o © o © © o © ©

like clover seed
uiut Oil

o a © • ©

e o o o o e o o o e e e e

o e o o e o O e o e o o e o

oeoeooo

12 mos. from
July 1, 1956

15,059

tolute Quotas g
inuts, whether shelled, not
lelled, blanched, salted, preired, or preserved (including
wasted peanuts, but not
12 mos6 from
icluding peanut butter) O0O.. Aug. 1, 1956
i, rye flour, and rye meal »• 12 mos. from
July 1, 1956
Canada
Other Countries
"(TJ
(2)

(2)

Imports for consumption at the quota rate are limited to 26,397,*32 pounds
during the first nine months of the calendar year.
Imports through September 10, 1956.

«£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, SLIYER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE K-*
ADVANCED IN VALUE a Provided, however, that not more than 33-1/3 percent of the quotas shal<3P
be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more
in staple--length in the case- of the following countriesi United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italys
Established
TOTAL QUOTA

Country of Origin
United Kingdom . a
Canada9 e.oeo c « •
Franceo .a o a « » »a
o »
Britisha a India
..
oca*.
Netherlands
•
e a a a e
Switzerland
.
Belgiumo a .o e . . .
oooo
a
a
Japan
o
o
e o
a
China
Egypt o . . .
L#UDa

•

a
c

o
e

Germany .
J.X»aj.y

,
o

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

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

Total Imports
Sept. 20, 19 55
Sept 11
946,311
238,516
68,287
57,617

Established
33-1/3* of
Total Quota

Imports
Sept. 20, 19 55
to Sept. 11. 1956

1,441,152

946,311

75,807

68,287

22,747
14,796
12,853

24,500
7,039

25,443
7,088

24,500
7,039

1,342,270

1,599,886

1,046,137

IMMEDIATE RELEASE,
Thursday. September 13. 1956.

TREASURY DEPARTMENT
Washington

y
H-1161

Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the President1*-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 September 11. 1956
Country of Origin, Established Quota Imports Country of Origin • Established Quota Imports
Egypt and the Anglo- Honduras 752
Egyptian Sudan . , .
783,816
Paraguay
Peru
247,952
25,180
Colombia
British India . . . . .
2,003,483
398,403
Iraq
China
1,370,791
British East Africa . .
Mexico
8,883,259
8,883,259
Netherlands E. Indies.
Brazil
618,723
368,196
Barbados
Union of Soviet
l/Other British W. Indies
Socialist Republics .
475^124
322,197
Nigeria
Argentina
5,203
2/0ther British W. Africa
Haiti
237
^Other French Africa . .
Ecuador .
9,333
Algeria and Tunisia .
1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
jj Other than Algeria, Tunisia, and Madagascar.

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

Cotton, harsh or rough, of less than 3/4" Cotton 1-1/8" or more iVtfmCfiffKKX^^
Imports Sept. 20, 19 55. to Aug. 31. 1956" _
Imports Aug. 1. 1956, to Aug. 31. 1956. inel.
Established Quota (Global) Imports Established Quota (Global) Imports
70,000,000 12,555,607 45,656,420 1,643,905

IMMEDIATE RELEASE,
Thursday. September 1 3 , 1956.

TREASURY DEPARTMENT
Washington
H-1161

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 September 11. 1956
Established Quota
Established Quota
Country of Origin
Country of Origin,
Imports
Honduras • . • e • •
Egypt and the Anglo783,816
Paraguay e 0 o . • * ©
Egyptian Sudan 0 •
247,952
25,180
Colombia @ 0 e » « . ©
Peru • • • • • • • • •
398,403
2,003,483
Iraq e • • • • • • • 0
British India . . . .
_
1,370,791
British East Africa . 0
China
........
8,883,259
8,883,259
Netherlands E« Indies 0
Mexico o • • • • . .
618,723
368,196
Barbados
• • • , • ••
Brazil . . . . . • • ,
l/Other British W e Indies
Union of Soviet
322,197
475,124
_
Nigeria . . . . . . .
Socialist Republics
5,203
•
237
2/0th'er British W 0 Africa
Argentina c • • • • •
mm
9,333
j/Other French Africa . .
Haiti . . . o 0 . . .
Algeria and Tunisia .
Ecuador • • • • • • •
1/ Other than Barbados, Bermuda^ Jamaica, Trinidad^ and Tobago,
2/ Other than Gold Coast and Nigeria•
2/ Other than Algeria, Tunisia, and Madagascar*
Cotton, harsh or rough, of less than 3/4"
Imports Sept. 20, 19 55. to Aug. 31. 19JCL
Established Quota (Global)
70,000,000

Imports
12,555,60?

Imports

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

Cotton 1-1/8" or more 1BD&XIS33I3D&1^^
Imports Aug. 1, 1956, to Aug. 31, 1956, incl»
Established Quota (Global)
45,656,420

Imports
1,643,905

COTTON WASTES
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 countriess United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy%

Country of Origin
United Kingdom
Canada . . . .
France . . . .
British India ,
Netherlands « .
Switzerland •
Belgium . * •
Japan . . . .
China . • • .
Egypt • . . •
Cuba . • e •
Germany . . •
Italy • • • •

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

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

Total Imports
Sept. 20, 19 55, to
Sept. 11, 1956

Established
33-1/3% of
Total Quota

"~
imports
1/
Sept. 20, 19 55
to Sept. 11, 1956

946,311
238,516
68,287
57,617

1,441,152

946,311

75,807

68,287

24,500
7,039

25,443
7.088

24,500
7,039

1,342,270

1,599,886

1,046,137

22,747
14,796
12,853

- 3
1Q
1 ^

x*fc£gft

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%

(b) and 1221 (5) of the Internal Revenue Code of

195U the amount of discount at which bills issued hereunder are sold is not
considered to accrue until such bills are sold, redeemed or otherwise disposed of,
and such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between the price paid
for such bills, whether on original issue or on subsequent purchase, and the
amount actually received either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. Iil8, 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 -

9i"!

55a£
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,

21
TREASURY DEPARTMENT
Washington

FOR RELEASE, MORNING NEWSPAPERS,
Thursday, September 13, 1956
The Treasury Department, by this public notice, invites tenders for
$1,600,000,000

, or thereabouts, of

in exchange for Treasury bills maturing
$1,600,241,000

-day Treasury bills, for cash and

September 20, 1956

, in the amount of

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

—V—
competitive bidding as hereinafter provided. The bills of this series will be
dated September 20, 1956 , and will mature December 20, 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
one-thirty
Daylight Saving
closing hour,/torn o*clock p.m., Easterr/«lwe6B§s9 time, Monday, September 17, 1956.

55JE
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
T!\Z.T.~^XViSnJlJ. J-^T.'^.'K'.tS'JT-T?—

WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Thursday, September 13, 1956.

H-1162

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 September 20, 1956,
in the amount of $1,600,241,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated September 20, 1956,
and will mature December 20, 1956,
when the face amount will be
payable without interest. They will be issued in bearer form only,
and in denomination 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 o1clock p.m., Eastern Daylight
Saving time,Monday, September 17, 1956.
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 tenaers
in whole or in part, and his action in any such respect shall be
final
Subject to these reservations, non-competitive tenders ior
$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 September 20, 1956,in cash or other immediately available funds
or in a like face amount of Treasury bills maturing September 20, 195
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, 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.
0O0

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,

During gnty 1956, market transactions in
direct and guaranteed securities of the
government for Treasury investment and other
accounts resulted in nat purchases by the
4ft ^,40V. TOOTreasury Department of J)'19,Q1Q, jOO.

0O0

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Friday, September 14, 1956.

H-H63

During August 1956, 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 $9,402,200.

0O0

IMMEDIATE RELEASE
September l\, 1956

;"T
'

"~~" ''

V
The Bureau of Customs announced today that special reports
received from collectors of customs show that 2,202,740 pounds of
shelled Virginia-type peanuts were entered for consumption or
withdrawn from warehouse for consumption during the period
beginning August 30 and ending at the close of business on
September 10, under Presidential Proclamation No. 3152 of
August 29, 1956.

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Monday, September 17, 1956.

H-1I64

The Bureau of Customs announced today that
special reports received from collectors of
customs show that 2,202,740 pounds of shelled
Virginia-type peanuts were entered for consumption
or withdrawn from warehouse for consumption during
the period beginning August 30 and ending at the
close of business on September 10, under
Presidential Proclamation No. 3152 of August 29,
1956.

oOo

,4^
REL.ASE M(»NIIIO NEWSPAPERS,
Tuesday. September 18, 1956«

1
V

The Treasury Department announced last evening that the tenders for $1,600,000,OC
or thereabouts, of 91-day Treasury bills to be dated September 20 and to mature December 20, 1956, which were offered on September 13, were opened at the Federal Reserve
Banks on September 17*
The details of this issue are as follows t
Total applied for ~ |ff3fc8, 1*19,000
Total accepted
- 1,600,494,000 (includes $341,964,000 entered on a
noncompetitive basis and accepted in full
at the average price shown below)
Average price
- 99.26$/ Equivalent rate of discount approx* 2.908* per anai
Range of accepted competitive bids:
High - 99*310 Equivalent rate of discount approx* 2.7300 per ann\m
Low

- 99.258

2.9350

(61 percent of the amount bid for at the low prise 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

$
43,617,000
1,586,020,000
45,520,000
64,205,000
31,655,000
46,130,000
271,433,000
35,787,000
15,465,000
43,oi5,ooo
49,674,000
115,898,000

$2,348,419,000

$1,600,494,000

TOTAL

33,617,000
932,850,000
30,520,000
64,205,000
31,655,000
46,130,000
213,458,000
35,787,000
15,465,000
43,015,000
39,894,000
113.898.000

•

TREASURY DEPARTMENT
W A S H I N G T O N , D.C
RELEASE MORNING NEWSPAPERS,
Tuesday9 September 16, 1956c

H-1165

The Treasury Department announced last evening that the tenders for $1,600,000,000,

or thereabouts, of 91-day Treasury bills to be dated September 20 and to mat
, which were offered on September 13, were opened at the Federal Reserve

issue are as follows;
Total applied
Total accepted
Average price

$2,348,419,000
1,600,494,000 (includes $341,964,000 entered on a
noncompetitive basis and accepted in full
at the average price shown below)
99*265/ Equivalent rate of discount approx* 2»908^ per annua

- 99c310 Equivalent rate of discount approx* 2.130% per annum
- 99*258
«
w w
ie
»
2»935# w
*

High

percent of the amount bid for at the low price was accepted)

Applied for
New fork

St. Louis
Dallas
San Francisco
TOTAL

$ 43,617,000
1,586,020,000
45,520,000
64,205,000
31,655,000
46,130,000
271,433,000
35,787,000
15,465,000
43,015,000
49,674,000
115,898,000
$2,348,419,000

Total
Accepted
$

33,617,000
932,850,000
30,520,000
64,205,000
31,655,000
46,130,000
213,458,000
35,787,000
15,465,000
43,015,000
39,894,000
113,898,000
$1,600,494,000

Comparison of principal items of assets and liabilities of national banks - Continued
(In thousands of dollars)
Increase or decrease * Increase or decrease
June 30.
Apr. 10,
June 30.
«in™ AVrm 10. 1956 tfllnceJune y t l 7 g
1955
1956
1956
An,™,r>t ! Percent » Amount
* Percent
LIABILITIES
deposits of individuals, partnerships, and corporations:
Demand
5*.*92,37f
Time
25,760,836
Deposits of U. S. Government..... • 3,211,507
Postal savings deposits.
12,852
Deposits of States and political
subdivisions
7.607.153
Deposits of banks
8,408,890
Other deposits (certified and
cashiers1 checks, etc.)
1 #642,785
Total deposits
101,136,401
Bills payable, rediscounts, and
other
liabilities for borrowed
Other
liabilities
1.495.210
money
150,884
Total liabilities, excluding
capital accounts
102,782,495
CAPITAL ACCOUNTS
Capital stock:
3.859
Preferred
Common.
•
•
2.571.573
Total
2,575.432
Surplus
4,006,626
Undivided profits
1,*13»837
Reserves
257.905
Total surplus, profits and
reserves
5.678,368
Total capital accounts
8,253,800
Total liabilities and
capital accounts
111.036.295
RATIOS:
Percent
U.S.Gov't securities to total assets 27.6l
Loans & discounts to total assets... *J#*3
Capital account* to total deposits.•
S.lo

53.711.^57
24,963,347
3,142,410
13.HO
7.208,503 7,287.1*2
8,316,961
g,576,201
5*.97*.9*0
25.322,058
2,642,083
12,847

mm.U

780,921
797. *89
69.097
-258

l.*5
3.19
2.20
-1.97

-482,562
1*38.778
769,*2*
5

1.73
3L51
•0*

398,650
-167.311

5.53
-1.95

320,011
9L929

*.39
l.ll

1,378.800
99.915.^32

l.*98,*99
98,932.92b

263,985
1,220,969

19.15
1.22

l4*,286
2,203.475

9.63
2.23

891,068
1.522.367

71.600
1.320.834

-7*40,184
-27,157

-83.07
-1.78

79.28*
17*.376

110.73
13.20

453.628

.**

2.*57.135

2.*5

-70

-1.78
.78

-87
152.123
1^2,036
308,162
66,0*0
-6,*25

-2.20
6.29
6.27
8.33
*.90
~2.*3

6,91
TmlZ
2J5

102.328,867 100,325.360
3.929
2.551.563
2.555.492
7*
3,971,001
1.392,29*
259.552

3,9*6
2.419.450
2.423.396
3.698 &
1,3*7,797
264,330

20,010
19.940
35.625
21,5*3
-1,647

5,622,8*7
8,178,339

5,310.591
7.733.987

55.521
75.*6l

.92

367,777
519.813

110.507.206 108.059.3*7
Percent
Percent
32.19
28.85
36.59
40.28
7.82
8.19

529,089

._M

2,976,9*8

18
•90
1.55
-.63

.99

NOTE: Minus sign denotes decrease.

Statement showing comparison of principal items of assets and liabilities of active national banks
as of June 30, 1956, April 10, 1956 and June 30, 1955
(In thousands of dollars)
June 30, : Apr. 10, * June 30,
!
J
1956
1955
1956
Number of banks

*,675

*.689

*.751

Increase or decrease : Increase or decrease
since Apr. 10. 1956 : since June 30, 1955 ...
Amount :Percent :
Amount
{Percent
-76
-1*

ASS3STS

Commercial and industrial loans.... 19.688,876
Loans on real estate
11,623,319
All other loans, including overdrafts
15.*18,277
Total gross loans
*6,730.*72
Less
reserves
731,072
Netvaluation
loans
*5,999,^0
U. S. Government securities:
Direct obligation
30.653,137
Obligations fully guaranteed
*,132
Total U. S. securities
30,657.269
Obligations of States and politicaf subdivisions
7,09*.*78
Other bonds, notes and debentures.. 1,736,150
Corporate stocks, including stocks
Total securities
39.718,761
of Federal
Reserve banks
230.86*
Total loans and securities.... 85,718,161
Currency and coin
1,178.332
Reserve with Pederal Reserve banks. 11,052,92*
Balances with other banks
11,378.290
Total cash, balances with other
banks, including reserve balances and cash items in process of collection
23.609.5*6
Other assets
1.708.588
Total assets
111,036.295

18,87*,97*
11.286,775

15.799.919
10.*3*.93*

15.063.581
*5.225.330
709.330
*4.516,000

13.901.699
*0,136.552
593.0*8
39.5*3.50*

31.872,38*
*,073
31,876,*57

3*.778.270
h355.
3*.781,025

7,111,377
1,866,78*

7,026,pjl
2,002,*63

!^.902
336.5**
.c c
?5*,6?6
1.505.1*2
21,7*2
i,*tf3,4oo
.
-1,219.2*7
.
52
-1,219.188
-16.899
-130,63*

*.3jl
2.98
h21
3.33
h2L
3.33
-3.83
h&
-3.82
;.*
-7.00

3.888,957
1,188,385

2*. 61
11.39

1.516.578
6,593.920
138,02*
6,*55.896
. 0 .
^>125>\%
. *'ffl
-4.123.756
c .
J8.*07
-266,313

10*91
16.*3
23*27
16.33
n «£
-£*g
Hs2«
z}l*&L

*1,083,*58
-*,302,593
228,8*0 4*,021,35*
211,795 -1,36*,697
2,02* -3.?2
.88
19.069
85,599,*58 83,56*^58 118,703 .1* 2,153,303 2.58
-202,323
l.*56,627
I.38O.655
-278,295 -19.U
65,530
11,*03,*98 10,987.39*
-350.57* -3.07
790.88*
10.378.336 10,587.406
999.95* 9.6*

23.238,*6l 22.955.*55
1.669.287
1.539.03*
110,507.206 108,059.3*7

371,085
39,301
529.089

2*60
&J5L
.*8

65*.091
169.55*
2.976,948

.97
-13*30
zML
i ^
-14.65
.60
7-*7

2.85
11.02
2.75

and installment cash loans, and single-payment loans) amounted to $8,900,000,000,
an increase of one percent since April. The percentage of net loans and discounts to total assets on June 30, 1956 was *1.*3 in comparison with *0*28 in
April and 36*59 in June 1955*
Investments of the banks in United States Government obligations

on June 30,

1956 aggregated $30,700,000,000 (including $4,100,000 guaranteed obligations), a
decrease of $1,200,000,000 since April*
of total assets*

These investments were nearly 28 percent

Other bonds, stocks and securities of $9,000,000,000, which in-

cluded obligations of States and political subdivisions of $7,100,000,000, were
$1*5,000,000 less than in April*

Total securities held amounting to $39,700,000,00

Surplus was $4,007,000,000, undivided profits

$1,*1*,000,000 and capital reserves $258,000,000, or a total of $5,679,000,000.
Total capital accounts of $8,250,000,000, which were 8.16 percent of total
deposits, were $75,000,000 more than in April when they were 8*19 percent of
total deposits.

TREASURY DEPARTMENT
Comptroller of the Currency
Washington
RELEASE MORNING NEWSPAPERS
Friday 9 September 21, 1 9 5 6 .

H-1166

The total assets of national banks on June 30, 1956 amounted to
$111,000,000,000, it was announced today by Comptroller of the Currency Ray M.
Gidney. The returns covered the *,675 active national banks in the United Statss
and possessions* The assets were $529,000,000 more than the amount reported by
the *,689 active banks on April 10, 1956, ths date of the previous call*
The deposits of the banks on June 30 were $101,100,000,000, an increase of
$1,200,000,000 sines April* Included in the recent deposit figures were demand deposits of individuals, partnerships, and corporations of $5*,500,000,000,
which decreased $500,000,000, and time deposits of individuals, partnerships, and
corporations of $25,700,000,000, which Increased $400,000,000. Deposits of ths
United States Government of $3,200,000,000 increased nearly $800,000,000 since
April; deposits of States and political subdivisions of $7,600,000,000 increased
$*00,000,000, and deposits of banks amounted to $8,400,000,000, a decrease of
$170,000,000* Postal savings were $12,800,000 and certified and cashiers1 checks,
etc., were $1,650,000,000*
Net loans and discounts on June 30, 1956 were $46,000,000,000, an increase
of $1,500,000,000 since April* Commercial and industrial loans of nearly
$20,000,000,000 were up $800,000,000, and loans on real estate of $11,600,000,000
were up $350,000,000* Retail automobile installment loans increased $135,000,000
to $3,500,000,000, and other types of retail installment loans amounting to
$1,3*0,000,000 increased $155,000,000* Loans to brokers and dealers in securities,
and other loans for ths purpose of purchasing or carrying stocks, bonds, and other
securities decreased $31,000,000 to $1,700,000,000* Other loans, including loans
to farmers, loans to banks, and other loans to individuals (repair and modernisation

TREASURY DEPARTMENT
Comptroller of the Currency
Washington

RELEASE MORNING NEWSPAPERS
Friday, September 21, 1 9 5 6 .

37
H-1166

The total assets of national banks on June 30, 1956 amounted to
$111,000,000,000, it was announced today by Comptroller of the Currency Ray M.
Sidney. The returns covered the *,675 active national banks in the United States
and possessions. The assets were $529,000,000 more than the amount reported by
the *,689 active banks on April 10, 1956, the date of the previous call.
The deposits of the banks on June 30 were $101,100,000,000, an increase of
$1,200,000,000 since April. Included in the recent deposit figures were demand deposits of individuals, partnerships, and corporations of $5*,500,000,000,
which decreased $500,000,000, and time deposits of individuals, partnerships, and
corporations of $25,700,000,000, which Increased $*00,0009000. Deposits of the
United States Government of $3,200,000,000 increased nearly $800,000,000 since
Aprils deposits of States and political subdivisions of $7,600,000,000 increased
$400,000,000, and deposits of banks amounted to $8,400,000,000, a decrease of
$170,000,000. Postal savings were $12,800,000 and certified and cashiers1 checks,
etc*, were $1,650,000,000.
Net loans and discounts on June 30, 1956 were $46,000,000,000, an increase
of $1,500,000,000 since April. Commercial and industrial loans of nearly
$20,000,000,000 were up $800,000,000, and loans on real estate of $11,600,000,000
were up $350,000,000* Retail automobile installment loans increased $135,000,000
to $3,500,000,000, and other types of retail installment loans amounting to
$1,3*0,000,000 increased $155,000,000. Loans to brokers and dealers in securities,
and other loans for the purpose of purchasing or carrying stocks, bonds, and other
securities decreased $31,000,000 to $1,700,000,000. Other loans, including loans
to farmers, loans to banks, and other loans to individuals (repair and modernisation

and installment cash loans, and single-payment loans) amounted to $8,900,000,000,
an increase of one percent since April©

The percentage of net loans and dis-

counts to total assets ©a June 30, 1956 was *10*3 in comparison with *0o28 is
April and 36*59 in June 1955.
Investments of the banks in United States Government obligations

on June 300

1956 aggregated $30*700,000,000 (including $*,100,000 guaranteed obligations),, &,
decrease of $1,200,000,000 since April*

These investments war® nearly 28 percent

of total assets* Other bonds, stocks and securities of $9,000,000,000, which ineluded obligations of States and political subdivisions of $7,100,000,0009 were
$1*5,000,000 less than in April*

Total securities held amounting to $39,700*000,000

decreased $1,400,000,000 since April.
Cash of $1,200,000,000, reserve with Federal Reserve banks of $11,000,000,000,
and balances with other banks (including cash items in process of collection) of
$11,400,000,000, a total of $23,600,000,000, showed an increase of $37090009000
since April®
Borrowed money of $151»000,000 decreased $740*000,000 since April and increased $79,000,000 in the year.
The capital stock of the banks on June 30, 1956 was $2,575,000,000, including
$3,859,000 of preferred stock. Surplus was $*,007,000,000, undivided profits
$1,*1*,000,000 and capital reserves $258,000,000, or a total of $5,679.OOO900O.
Total capital accounts of $8,250,0009000e which were 8.16 percent of total
depositee were $75,000,000 more than in April when they were 8«19 percent of
total deposits*

Statement showing comparison of principal items of assets and liabilities of active national banks
as of June 30, 1956, April 10. 1956 and June 30, 1955
___ (In thousands of dollars) ^
8 June 30,
5 1956
•

§ Apr. 10,
*• I956
l

* June 30,
1955
§

* Increase or decrease 5 Increase or decrease
s^-nce Apr. 10, 1956 1 since June 30, 1955
;
Amount I Percent 1
Amount
t Fere en t

Number of banks. • • • • „ ,<,....<, 0 0 a <> 0. 4,675 4,689 *»751 -1* ~76
ASSETS
"
Commercial and industrial loans.... 19.688,876
IS,87*,974
15,799,919
813,902
Loans on real estate............... 11,623,319
11,286,775
10,43*,934
336,5*4
All other loans, including overdrafts., . o.. o o....o..o 0..o.»o..9.. 15,*18,277
15,063,581
13,901,699
35*,696
Total gross loans............* 46,730,*72
*5,225,330
40,136,552
1,505,1*2
Less valuation reserves.....
731,072
709,330
593.0*8
21.7*2
Net loansoo.oooooe.coao,.,, *5.999»1*O0

U» S„ Government securitiesl
Direct obligations............... 30,653,137
Obligations fully guaranteed
4,132
Total U 9 S. securities........ 30.657.269"""
Obligations of States and political subdivisions.*......,,......,, 7,09*,*78
Other bonds, notes and debentures.. 1,736,150
Corporate stocks, including stocks
of Federal Reserve banks.........
230,86*
Total securltiesoo...,........ 39,718,761

4.31
2.9S

3,888,957
1,188,385

2he6l
11.39

2.35
3.33
3.07

1,516,578
6,593,920
138,02*

10.91
I6.U3
23.27

44,516,000

39,5*3,50*

1,1*83,400

3.33

6,455,896

16.33

31,872,38*
4,073
31*876,*57

3*,778,270
2,755
3*.781.025

-1,219,2*7
59
-1.219.188

-3.S3
1.^5
-3*82

-4,125,133
1,377
-*,123,756

-11.86
*9«Q8
-11.Sb

7,111,377
1,866,78*

7,026,071
2,002,*63

-16,899
-130,63*

-.2*
-7.00

68,*07
-266,313

.97
-13«30

228,8*0

211,795

2,02*

.SS

19,069

9.00

41,083,458

44,021,354

-1,364,697

-3.32

-*»302,593

-9*77

Total loans and securities..*. 85,718,161 85,599,458 83,564.858 118,703 .1* 2,153,303 2*58
Currency and coin....*...........•• 1,178,332
Reserve with Pederal Reserve banks. 11,052.92*
Balances with other banks
11,378,290
Total cash, balances with other
banks, including reserve balances and cash items in process of collection
23.609.5*6
Other assets
1,708.588
Total assets

111.036,295

1,456,627
11,*03,*9S
10,378,336

1,380,655
10,987,39*
10,587,*06

-278,295
-350,57*
999,95*

-19.11
-3.07
9.6*

-202,323
65,530
790,88*

-1**65
.60
7.1*7

23,238,*6l
1,669.287

22,955,*55
1.539.03*

371.085
39.301

1.60
2.35

65*.091
169.55*

2.85
11.02

110,507.206

108,059,3*7

529.089

.*8

2,976,9*8

2.75

Comparison of principal items of assets and liabilities of national banks - Continued
(In thousands of dollars)
Increase or decrease 1 Increase or decrease
June 30,
Apr. 10,
June 30,
since Apr. ipJr,l°i56_! since June 30, 1<?55
1956
1956
1955
Amount % Percent x Amount
: Percent
LIABILITIES
Deposits of individuals, partnerships, and corporations?
-*S2,562
780,921
5**97*.9*0
Demand
5*. *92,378
53.7H.*57
10*5
x line. ....«...«**..«« »•«.««•««
25.760,836
*38,778
25.322,058
1.73
797.*89
2*,963,3*7
3^9
Deposits of U« S. Government..»...
769,*2*
3.211,507
2,4*2,083
31.51
69.097
3,1*2,410
2.20
Postal savings deposits.,.........
5
12,852
12,8*7
.0*
-258
13,110
-1.97
Deposits of States and political
320,011
398,650
7.208,503 7,287.1*2
subdivisions. •«..«..•••«•«..(,•• 7.607,153
5.53
*.39
8,576,201
8,316,961
9L929
-167.311
Deposits of banks.... *•» » . . * * « . « .
-1.95
l.il
8,*{08,890
Other deposits (certified and
144,286
_1_372,800 JL,*98,499
263,985
9.63
19.15
cashiers1 checks, etc.)• « « . * « « . 1,6*2,785
T01,136,li01
1.22
2.23
99.9157532
98T9327926^~I7220T9Sr
2,2037575"
Total deposits'«»»..«..«.«««•
Bills payable, rediscounts, and
other liabilities for borrowed
79.284
150,88*
891,068
71,600
-7*0,18*
-83.07
110.73
money...»..»..»•..«•...*».••«•«
174.376
1.522,367
1.320,834
-27,157
-1.78
JaM^JlO.^
13.2C
Other liabilities................
Total liabilities, excluding
2.4*
*53»628
.44
2.*57.135
capital accounts.
\. 102,782,495
102,328,867 100,325,360
CAPITAL ACCOUNTS
Capital stock:
* rexerrec.......................
y % OJJ
-2.2C
-70
-1.78
3.929
3.9*6
-87
uonunon. . . a o . . . . . . . . . . « . . • • . . . . . .
u>jfiipf^
20,010
Zi55L3§>3m 2,*19,*5Q
152,12?
r
x o Lax......... Q .....»»....»
152.036
6*21
i9ffio
Jk555T*92
2^*23^3^
ikSISJli
*JA.
4,006,626
3,971,001
3,698,46*
7WS
o u r p JLUS ..... 0. . . a . o o . . « . « . . « » « «
308,162
.90
357625
8.3]
Undivided profits..............
1,392,29*
1,3*7.797
l.*13.837
66,0*0
21,5*3
1.55
**9C
•fie s e r v e s. 0 0 . a . . . « e . . o * . ..*.••.*
259.552
26*,330
257.905
-6,*25
-1.6*7
-2M
Total surplus, profits and
5.622,8*7
5,310,591
reserves........so.......... 5,678,368
6.32
55.521
.99
367.777
Total capital accounts...•...
75.*6l
8,253.800
8.178.339
7.733.987
6T72
519.813
.92
Total liabilities and
110.507,206 108.059,3*7
529.089
capital accounts....o»o»o.«. 111.036.295
MS
2,976,9*8
ikZI
Percent
Percent
RATIOS.
Percent
28.85
32.19
U.S.Gov't securities to total assets
27»6l
NOTE: Minus sign denotes decrease,
40.28
Loans & discounts to total assets.»»
*1«*3
36.59
8*19
Capital accounts to total deposits.»
8.l6
' 7«82

- 3 Q
or by any local taxing authority. For purposes of taxation the amount of discount
at which Treasury bills are originally sold by the United States is considered to
be interest. Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of
1954 the amount of discount at which bills issued hereunder are sold is not
considered to accrue until such bills are sold, redeemed or otherwise disposed of,
and such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between the price paid
for such bills, whether on original issue or on subsequent purchase, and the
amount actually received either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 4l8, Revised, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue. Copies
of the circular may be obtained from any Federal Reserve Bank or Branch.

- 2 A&PXfc

in cash or other immediately available funds

3§p5
or in a like face amount of Treasury bills maturing September 27, 1956

Casn

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,

3___________feC

TREASURY DEPARTMENT
Washington

*-*^~t ^

FOR RELEASE, MORNING NEWSPAPERS,
Thursday. September 20. 1956

The Treasury Department, by this public notice, invites tenders for
$1,600.000,000

, or thereabouts, of

in exchange for Treasury bills maturing

-day Treasury bills, for cash and

September 27, 1956

, in the amount of

$5
$ 1,600,808,000

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

5S5
competitive bidding as hereinafter provided.
dated September 27, 1956
and will mature

The bills of this series will be
December 27, 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
one-thirty
JSU-V W / S * * ^
o*clock p.m., Eastern iStSnaaru time, Monday. September 24, 1956..

TJ5
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

rr.^^^L^^i>^a^v.l-^i,j-..^i''Ti«w^y:::'-.?r3.~n,,-gP'..

WASHINGTON, D.C
RELEASE MORNING NEWSPAPERS,
Thursday, September 20, 1956.

H-1167

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 September 27, 1956,
in the amount of $1,600,808,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated September 27, 1956,
and will mature December 27, 1956, when the face amount will be
payable without interest. They will be issued in bearer form only,
and in denomination 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 Daylight
Saving time, Monday, September 24, 1956.
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 baruc
or trust company.
Immediately after the closing hour, tenders win 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
ranre of accepted bids. Those submitting tenders will be advisee of
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tencers
in whole or in part, and his action in any such respect shall be
final
Subject to these reservations, non-competitive tenders lor
$200 000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) 01 accepted

- 2 competitive bidse Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on September 27, 1956,in cash or other immediately available funds
or in a like face amount of Treasury bills maturing September 27, 195
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, 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.
0O0

AO
RELEASE v*aUHlG

W.sm?ms9

- ffy y

Tuesday, Septeafeer 2$, 1956,

The Treasury Department announced last evening that the tenders far $l,6QO,9$v,O0l
or thereabouts, of 91-day Treasury bills to be dated Septeeeer 27 and to ma tore December 27, 1956, which were offered on September 20, vere opened at the Federal Reserve
Banks on September 24.
The details of this issue are as followst
Total applied for - $2,409,640,000
Total accepted
- 1,600,515,000

(includes $301,642,000 entered oa m
noneompetiti^e basis end excepted in
fell at the average price sfeowa below)
Average price
- 99.245/ Equivalent rate of discount approx. 2.965$ per tana
Range of accepted oowpetitive bidet (Excepting three tenders totaling $690,000)
High - 99*266 Equivalent rate of discount aparox. 2«90fc£ per a nam
Lou
- 99.242
«
« •
•
•

2.999*

($0 percent of the amount bid for at the lew price was accepted)
Federal ftemrm
Bistrict

Total ,
Applied for

Total
Accepted

Boston
Men Xork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
Sen Francisco

$
37,060,000
1,726,401,000
39,320,000
63,717,000
37,488,000
222,671,000
36,135,000
13,249,000
50,987,000
43,194,000
125,354,000

$
26,560,000
1,031,526,000
24,320,000
62,217,000
14,044,000
36,438,000
169,371,000
33,635,000
12,849,000
46,967,000
30,194,000
112,304,000

$2,409,840,000

$1,600,515,000

Total

i4,ob4fooo

•

TREASURY DEPARTMENT
WASHINGTON, D.C.
ffiLBaSE MORNING NEWSPAPERS,
ruesday, September 2$. 1956.

H-llod

The Treasury Department announced last evening that the tenders for $1,600,000,000,
>r thereabouts, of 91-day Treasury bills to be dated September 27 and to mature December 27, 1956, which were offered on September 20, were opened at the Federal Reserve
3anks on September 24.
The details of this issue are as follows:
Total applied for - $2,409,840,000
Total accepted
- 1,600,515,000

Average price

(includes $301,842,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
- 99.245/ Equivalent rate of discount approx. 2,985? per annum

Range of accepted competitive bids: (Excepting three tenders totaling $690,000)
High - 99.266 Equivalent rate of discount approx. 2.904# per annum
n
Low
- 99.242
n
n
u
n
2.999%
(50 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total

Applied for

Accepted

$
37,080,000
1,726,401,000
39,320,000
63,717,000

i25,3S4,ooo

$
26,580,000
1,031,526,000
24,320,000
62,217,000
14,044,000
36,488,000
169,371,000
33,635,000
12,849,000
46,987,000
30,194,000
112,304,000

$2,409,840,000

$1,600,515,000

i4,o44,ooo
37,488,000
222,871,000
36,135,000
13,249,000
50,987,000
43,194,000

- 3 -

-4

&i£H&

or by any local taxing authority.

For purposes of taxation the amount of discount

at which Treasury bills are originally sold by the United States is considered to
be interest. Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of
1954 the amount of discount at which bills issued hereunder are sold is not
considered to accrue until such bills are sold, redeemed or otherwise disposed of,
and such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between the price paid
for such bills, whether on original issue or on subsequent purchase, and the
amount actually received either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 4l8, Revised, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue. Copies
of the circular may be obtained from any Federal Reserve Bank or Branch.

- 2 -

casn or

other immediately available funds

or in a like face amount of Treasury bills maturing October 4, 1956 . Cash
IfflfflB

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 Interna}. 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,

Miiihiiihimii

~* ^

TREASURY DEPARTMENT .If n
Washington

jIb /

FOR RELEASE, MORNING NEWSPAPERS,
Thursday, September 27, 1956

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

, or thereabouts, of

SflBL

in exchange for Treasury bills maturing
$1,600,219,000
zsr

-day Treasury bills, for cash and

EBBS

October 4, 1956

in the amount of

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

•mm
competitive bidding as hereinafter provided. The bills of this series will be
dated October 4, 1956
, and will mature January 5, 1957
, when the face
amount will be payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o*clock p.m., Eastern/fliliwiieennii time, Monday, October 1, 1956

*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., 99.925. 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

RELEASE MORNING NEWSPAPERS,Thursday, September 27, 1956.

H-1169

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 4, 1956,
in the amount of $1,600,219,000, 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 4, 1956,
and will mature January 3, 1957*
when the face amount will be
payable without interest. They will be Issued in bearer form only,
and in denomination of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m.. Eastern Daylight
Saving time, Monday, October 1, 1956.
~
Tenders willliot 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 October 4, 1956,
in cash or other immediately available funds
or in a like face amount of Treasury bills maturing October 4, 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 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.
0O0

//7
IMMEDIATE RELEASE
'l/jycmi September 26, 1956

The Bureau of Customs announced today that the quota of 8,883,259
pounds on Mexican cotton of less than 1-1/8 inches in staple length
(other than harsh or rough cotton of less than 3 A Inch in staple
length, and other than linters) was filled at the opening moment of
the quota year on September 20, 1956. Authorizations have been issued
for the release of 21.68 per centum of the cotton presented for entry,
thus filling the quota.
The Bureau of Customs also announced that the quota of 239,690
pounds on Canadian cotton waste was filled on September 24, 1956. As
of the close of business on September 25 a total of 600,000 pounds
was charged against the quota of 6l8,723 pounds on Brazilian short
staple cotton, and a total of 22,775 pounds against the quota of
25,443 pounds on German cotton waste.

TREASURY DEPARTMENT
WASHINGTON. D.C.

IMMEDIATE RELEASE,
Thursday, September 27, 1956.

H-1170

The Bureau of Customs announced today that the
quota of 8,883,259 pounds on Mexican cotton of less
than 1-1/8 inches in staple length (other than
harsh or rough cotton of less than 3/4 inch in staple
length, and other than linters) was filled at the
opening moment of the quota year on September 20,
1956. Authorizations have been issued for the
release of 21.68 per centum of the cotton presented
for entry, thus filling the quota.
The Bureau of Customs also announced that the
quota of 239,690 pounds on Canadian cotton waste was
filled on September 24, 1956. As of the close of
business on September 25 a total of 600,000 pounds
was charged against the quota of 618,723 pounds on
Brazilian short staple cotton, and a total of
22,775 pounds against the quota of 25,443 pounds on
German cotton waste.

0O0

TREASURY DEPARTMENT

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

IMMEDIATE RELEASE,
Friday, September 28, 1956.

H-1171

The Treasury Department today made public a report of
monetary gold transactions with foreign governments and central
b^nks for the second quarter of 19563 In this period, the
United States purchased $95.1 million worth of gold, and sold
$.2 million. These transactions brought to $100.1 million the
net inflow of gold into the United States in the first half of
this year, with U. S. gold purchases at $134»2 million and U.S.
sales, $34.1 million.
In the twelve months ended June 30, 1956, net purchases
of monetary gold by the United States totaled $110.2 million.
A table showing net transactions, by country, for the
first two quarters of 1956 and for the two fiscal years
(ended June 30) 1955 and 1956, Is attached.

UNITED STAT3S GO ID T:iANSACTIQNS I/ITH FOREIGN COUNTRIES
January 1, 1956 - June 30, 1956

c;i
OJ
"

(In millions of dollars at $35 per ounce)
Negative figures represent net sales by the
United States; positive figures, net purchases
, Fi r s t . Second J) Fiscal Year 1956 '; Fiscal Year 1955
Country
I Quarter ! Quarter ,j (July 1, 1955- ! (July 1, 19541956 | 1956 | June 30, 1956) |
June 30, 1955)
Argentina
Austria
Bolivia

$20.1

$20.1
-$6.2

5.5

France
•
Germany
International Monetary Fund .

-^33.8
25.0

-33.8
75.0

Iran
Israel
Korea

100.0

-67.5
•180.0
-2.7

-.3
-1.1
-1.9

Portugal •,
Sweden
Switzerland

-34.9
-15.0
-15,5

Switzerland-Bank for
International Settlements .
Uruguay
Vatican City
,
Attorney General of the U.S.-fc
All Other
Total

-11.0
11.0
1.0
13.1
-.2

2.5
13.1

-.2

-.5

^>5.2 | ':?94.9

aio.2

5.8

-,P322.6

•* - Represents Rumanian-owned gold blocked unqler Executive Order, and, pursuant
to Public Law 285, 84th Congress, August 9, 1955, aiiong assets vested and
liquidated, their proceeds to be distributed to American claimants against
Rumania.

RE&SA8I HQRSaHS JCA'SPAPIT.S,
Tueeday, October 2, 1956,

The Treasury Deparfcaent announced lest evening that the tenders for $1,6O0,0OO,G|
or thereabouts, of 91~d*y Treasury bills to be dated October 4, 1956, and to esters
January 3, 1957, which were offered on September 27, were opened at the Federal Rtstrn
Banks on October 1.
The details ef this issue are as followsi
Total applied for - *2,350,436,000
fetal accepted
* 1,601,236,000

(includes #281,786,000 entered ea a
noneoapetitive basis and accepted la
full at the average prim shown below)
Average price
- 99.267 Equivalent rate of discount approx. 2.&99% per asms
Range of accepted competitive bids}
High - 99.270 Equivalent rate ef discount approx. 2.$88$ per anaaa
Jjam
- 99«26g
•
e
s
s
•
2.90W
(73 percent of the aaoent bid for at the lew price was accepted)
Federal Reserve
District

fetal
Applied for

e»eSTP^P'ar iPS*^p>

Boston
mm tork
Philadelphia
Cleveland
Richsond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Bellas
San Francisco

|
44,951,000
1,699,616,000
37,154,000
70,394,000
12,847,000
33,155,000
232,401,000
38,789,000
12,964,000
53,713,000
32,761,000
81.691.000

$
28,451,000
1,101,856,000
18,621,000
63,281,000
12,368,000
29,038,000
151,893,000
3&,789,QO0
10,314,000
48,351,000
24,830,000
73.6Wi.000

$2,350,436,000

•1,601,236,000

fetal

•

TREASURY DEPARTMENT
xmmumumaiwmmmMwammmMm*mmMHmmmmm.mmmma^mmmmm¥^mBm^^amm^mmm

WASHINGTON, D.C.
minsE MORNING N E W S P A P E R S
Tuesday, October 2, 1956.

H-1172,

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 4, 1956, and to mature
January 3, 1957, which were offered on September 27, were opened at the Federal Reserve
Banks on October 1«
The details of this issue are as followsi
Total applied for • #2,350,436,000
Total accepted
- 1,601,236,000

(includes #281,786,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
Average price
- 99*267 Equivalent rate of discount approx. 2.899? per annum
Range of accepted competitive bids?
High
low

- 99.270 Equivalent rate of discount approx. 2.888? per annum
M
- 99*265
w w w
it
2.908? «
*
(73 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

#
44,951,000
1,699,616,000
37,154,000
70,394,000
12,847,000
33,155,000
232,401,000
38,789,000
12,964,000
53,713,000
32,761,000
81,691,000

$
28,451,000
1,101,856,000
18,621,000
.63,281,000
12,368,000
29,038,000
151,893,000
38,789,000
10,314,000
48,151,000
24,830,000
73,644,000

#2,350,436,000

#1,601,236,000

Total

%y «

Treasury
In a letter to &r. Dickson,/Secretary Humphrey

said:

The record of your advancement in the Secret Service, over a period

of 35 years, to the position of Assistant Chief, and of the diligent
and highly capable manner in which you always performed your duties, is one
for every Secret Service man to wish to emulate.
"The Treasurer Department, the Government and the public have profited
from your efforts.
"All good wishes for the years of leisure to which you are now so
well entitled to look forward.

^5
SmJ^

^•neg ths nan sua] saasaJswajild&ale'U' bfTSeJSoU UH mi agenl wdm une, ••

y^
.-.inralyjag Walter Allred, who made hand-drawn counterfeit bills of excellent
workmanship. Allredfs first notes appeared in Birmingham when Dickson was
assigned to that district. J§05^by months of painstaking inquiries of
artists and art dealers throughout the State of Alabama was Dickson able
to establish Allred's identity. Allred was arrested in a cabin in the Alabama
hills, 25 miles from the nearest railroad, and was convicted and sentenced.
Six months after his release the hand-drawn notes reappeared and Allred was
again arrested by Dickson and again convicted.
while assigned to the St. Louis district Dickson played a major role
in cracking one of the most difficult counterfeiting cases in Secret Service
history. The investigation, covering nearly a year, involved a number of
offenders in Missouri, Michigan, Ohie, Pennsylvania and New York. Leader
of the gang was an unfrocked Serbian priest, ¥0&r Sephrony Balaban. Two
of his accompl^es were previous offenders in counterfeiting, Mike Maslek and
Nicela Zrnety. These three plotted to make nearly half a million dollars
in counterfeit #20 notes, divide them equally, return to their native country,
and retire on the proceeds.
The trail led to Monaca, Pennsylvania, where Maslek, Zrnety, and one
Pete Osula were captured in the act of printing the #20 notes, some #30,000
of which had been completed. Plates for the notes were seized im the baseaemt
of-g^&r Balaban*s home, and it was established that Balaban had supplied
false passports to Maslek and Zrnety, both of whom had previously been deported
from the United States after convictions for counterfeiting. Balaban was
also arrested, and all were sentenced to long prison terms*

itfrpl'ltdlf/^%0-

OCTOBER 3, 1956
v

^ff&&

h
UCarl Dickson will retire October 31 as Assistant Chief of the^ui •»••

Secret Service, ^eiusiiijjaBmsmsmeeesfife Chief U. E. Baughman.anneuaced today.
/\

Mr. Dickson, 61, is a career man who has worked for the Government for
nearly 40 years, 35 of which were spent in the Secret Service,fl*-a4**^~~'t

^\\ As a young mart of 20, Mr. Dickson taught in the elementary schools of
Marshall County, Alabama, where he was born.

On September 4, 1917, he

was appointed as a clerk in the War Department.

He enlisted in the Army

on May 28, 1918, saw service overseas, and was honorably discharged
June 25, 1919, returning t© work in the .War Department until September 23,
1921, when he transferred to the Secret Service .and was assigned to its
A
Birmingham, Alabama, field district.

J?
^i I Later assignments took him to field offices in St. Louis, Richmond, and
Washington, D. C. In 1944, while in Washington, Mr. Dickson was detailed
to the wartime j>ffice of Price Administration, where he and another Secret
Service agent supervised the organization of a corps of investigators to
suppress the counterfeiting of OPA ration coupons.
—^f\

Mr. Dickson was appointed ££< Acting Supervising Agent of the Washington
district on April 16, 1945, and two months later was plaeed in charge of
the Kansas City district, where he stayed until December 31, 1948. la
1949 In iliaipfl Din in H M m I II Assistant Chief of the Secret Service.
yi«A-*~~f /u*o

C4s*ueme<<%r

A-K

At /^Ueytyj^^/l ^
i-yy

j •9

/7m\

$v\

y/L*,/ -^-*^**

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Wednesday, October 3, 1956.

Ii-1173

Carl Dickson will retire October 31 as Assistant Chief of
the United States Secret Service, Chief U, E. Baughman of the
Secret Service announced today.
Mr. Dickson, 6l, is a career man who has worked for the
Government for nearly 40 years, 35 of which were spent in the
Secret Service. He and Mrs. Dickson live at 4439 Davenport
Street, Northwest, Washington,
As a young man of 20, Mr. Dickson taught in the elementary
schools of Marshall County, Alabama, where he was born. On
September 4, 1917, he was appointed as a clerk in the War
Department. He enlisted in the Army on May 23, 1918, saw service
overseas, and was honorably discharged June 25, 1919, returning
to work in the War Department until September 23, 1921, when he
transferred to the Secret Service in the Treasury Department and
was assigned to its Birmingham, Alabama, field district.
Later assignments took him to field offices in St. Louis,
Richmond, and Washington, D. C. In 1944, while in Washington,
Mr. Dickson was detailed to the wartime Office of Price
Administration, where he and another Secret Service agent
supervised the organization of a corps of investigators to
suppress the counterfeiting of OPA ration coupons.
Mr. Dickson was appointed Acting Supervising Agent of the
Washington district on April 16, 1945, and two months later was
placed in charge of the Kansas City district, where he stayed
until December 31, 1948. In 1949 he became Assistant Chief of the
Secret Service.
During his career in the law enforcement agency he participated
in the investigation of many outstanding cases.
One of these involved Walter Allred, who made hand-drawn
counterfeit bills of excellent workmanship. Allred!s first notes
appeared in Birmingham when Dickson was assigned to that district.
By months of painstaking inquiries of artists and art dealers
throughout the State of Alabama, Dickson was able to establish
Allred*s identity. Allred was arrested in a cabin in the
Alabama hills, 25 miles from the nearest railroad, and was
convicted and sentenced. Six months after his releasethe handdrawn notes reappeared and Allred was again arrested by Dickson
and again convicted.

53
- 2 While assigned to the St. Louis district Dickson played: a
major role in cracking one of the most difficult counterfeiting
cases in Secret Service history. The investigation, covering
nearly a year, involved a number of offenders in Missouri,
Michigan, Ohio, Pennsylvania and New York. Leader of the gang
was an unfrocked Serbian priest, Sophrony Balaban. Two of his
accomplices were previous offenders in counterfeiting, Mike Maslek
and Nicola Zrnety. These three plotted to make nearly half a
million dollars in counterfeit $20 notes, divide them equally,
return to their native country, and retire on the proceeds.
The trail led to Monaca, Pennsylvania, where Maslek, Zrnety,
and one Pete Osula were captured in the act of printing the $20
notes, some $30,000 of which had been completed. Plates for the
notes were seized in the basement of Balaban's home, and it was
established that Balaban had supplied false passports to Maslek
and Zrnety, both of whom had previously been deported from the
United States after convictions for counterfeiting. Balaban was
also arrested, and all were sentenced to long prison terms.
In a letter to Mr. Dickson, Treasury Secretary Humphrey said:
"The record of your advancement in the Secret Service, over
a period of 35 years, to the position of Assistant Chief, and of
the diligent and highly capable manner in which you always performed your duties, Is one for every Secret Service man to wish
to emulate.
"The Treasury Department, the Government and the public have
profited from your efforts.
"All good wishes for the years of leisure to which you are
now so well entitled to look forward."
oOo

- 3 • • \m*

or by any local taxing authority. For purposes of taxation the amount of discount
at which Treasury bills are originally sold by the United States is considered to
be interest. Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of
1954 the amount of discount at which bills issued hereunder are sold is not
considered to accrue until such bills are sold, redeemed or otherwise disposed of
and such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between the price paid
for such bills, whether on original issue or on subsequent purchase, and the
amount actually received either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 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.

m
or in a like face amount of Treasury bills maturing
October 11. 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,

6i
X&KKBK
TREASURY DEPARTMENT
Washington

I
\

FOR RELEASE, MORNING NEWSPAPERS,
Thursday, October 4, 1956
^

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

•

or thereabouts, of

m—

-day Treasury bills, for cash and

~m~

in exchange for Treasury bills maturing

October 11, 1956

, in the amount of

$ 1.601.089.000 » to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided.
dated

October 11, 1956

, and will mature

The bills of this series will be
January 10, 1957

, when the face

amount will be payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o!clock p.m., Eastern/Skajufeusd time, Monday, October 8t 1956 _•
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 s , 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
s»Li«:!^^g.vj»^AiuJi^ij:^,'.'3i»j*.,-a3g-.rra:gr:rr

WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Thursday, October 4, 1956.

H-1174

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 11, 1956,
In the amount of $1,601,089,000, 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 11, 1956,
and will mature January 10, 1957,
when the face amount will be
payable without interest. They will be issued in bearer form only,
and in denomination of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Daylight
Saving time, Monday, October 8, 1956.
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
ranee of accepted bids. Those submitting tenders will be advised of
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders
in whole or in part, and his action in any such respect shall be
final
Subject to these reservations, non-competitive tenders lor
$200 000 or less without stated price from any one bidder will b e
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 October 11,1956,
in cash or other immediately available funds
or in a like face amount of Treasury bills maturing October 11, 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 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.
0O0

t\ mm

They will take a little time to *ork, and, in the meantime, some readjustments are inevitable*

Ton can't change your economic climate without

some change in your living habits.
This Administration recognises the hardships involved to some people
in a readjustment of this sort. We slall do what re can to case these ,
adjustments in such cases. That is why a number ot steps have already been
taken in the operation of Government housing agencies to cushion the impact*
We shall welcome all suggestions male by fee industry and be giving the problem
continuing and close attention.
The country's capacity to make adjustments is greatly aided D|r the current
high general prosperity, with national Income at constantly rising levels*

64
- 3For the longer run, the outlook is hopeful* The current flow of the
people's savings, which can be available for building and other capital
expansion, is large and Is increasing*

Individuals saved 7 percent of their

income after taxes in the first half of 1956 —
year* And the rate is rising*

at the rate of $20 billion a

Higher Interest rates are stimulating savings

and are slowing down some borrowing. This is a natural and normal corrective
to the present inflationary pressures*
The most helpful thing the Government can do for your business, and to
provide more and better housing, is to encourage a large flow of savings
available to finance building at a healthy rate*
There are three ways to encourage savings* The first is to give people
confidence that money is sound, that the money they save will retain its buying
power*

That means balanced budgets and sound monetary policy*

The second way is to reduce tastes. We have reduced tfrem already by
7-1/2 billion dollars and will do more when it can be done without a budget
deficit*
The third way is to let money rates seek their natural level in response
to supply and demand Instead of pegging them at artifleally low levels*
Perpetually easy money is the shortest road to inflation*
These are exactly the policies this Administration has hemn following*
X should add that they were not followed by the previous Administration, and
the present Democrat platform would violate them*
Tress broad policies are the only ones which offer any prospect of sound,
vigorous growth of the building industry*

- 2 -

companies, savings banks, etc*

Some of it was, therefore, financed by short-

term borrowing from commercial banks —

'•warehousing. * Alee, savings institu-

tions sold some other securities to buy mortgagee*
Meanwhile, the demand for funds for other purposes has been Increasing*
Commercial and state and local government construction has been mounting,
demanding men, materials, and money*

Industrial plant and eqjalpint expansion

lc setting new records this year, so it isn't surprising to find total construction running ahead of a year ago* A highly prosperous state of business
has brought about a large increase in bank loans and a heavy demand for capital
from ether sources, we are living in the economic climate of prosperity*
In the face of these demands, even the huge flow of funds available has
not been adequate, interest rates haws risen, and money is less available*
If the Federal Reserve System tried to meet this situation by encouraging
an expansion of bank loans large enough to meet all demands, the result would
be inflationary — with a danger of later collapse*

Already bank loans are

20 percent higher than a year ago*
The real shortage here is not money at allj it Is manpower and materials*
Too freely available loans would make matters worse by encouraging even more
feverish bidding tor scarce resources at higher and higher prices, the home
buyer has a big stake in avoiding inflation, and so getting a house at a
reasonable price*
So right now, this country is feeing a dilemma:

it can have price in-

flation, on the one hand, without any real gain in output! or* by postponing
a little a few of the things we are trying to do all at once, we can keep a
steady,upward trend without inflation*

REMARKS B T W . RANDOLPH BURGESS, UNDER SBCRBTARX
OF THE TREASURY, AT THE FALL MEETING OF THE
BOARD OF DIRECTORS OF THE NATIONAL ASSOCIATION
OF HOME BUILDERS AT THE HOTEL STATU®, BOSTON,
MASSACHUSETTS, 12*30 fjLh FRIDAY, OCTOBER 5, 1956.

W;
The members of your organisation have provided new and better homes for
millions of Americans* By imagination, courage, and ingenuity/yt>u haws
brought housing of new quality within the range of the average citiaen. The
home of today is perhaps the best example of our h i g h — and rising — standard
of living.
Houses are being built currently at the rate of about 1,100,000 a year —
a rate exceeded in only three earlier years* As a matter of fact, more homes
have been built in the past three years than in any other three-year period
in our history*
While the number of hoses being built currently la less than in 1955> the
average size and cost are larger, so that the dollar value is not much less;
it is, indeed, well above any year prior to 1955*
This large amount of housing is apparently being well absorbed by the
market, though there are signs that the number of new homes may be outrunning
the demand for them in some areas* The main problem, as we all know, is
financing, a problem which calls for sympathetic and careful consideration*
This large amount of housing takes an enormous amount of mortgage financing*

In 1955, home mortgage indebtedness increased by an unprecedented 13

billion dollars*

In the first 6 months of this year, it rose by almost 6

billion dollars more.
This was a larger amount of money than could be provided oat of the
various pools of savings, such as savings and loan associations, life insurance

H - ins

TREASURY DEPARTMENT
Washington

REMARKS BY W. RANDOLPH BURGESS, UNDER SECRETARY
OF THE TREASURY, AT THE FALL MEETING OF THE
BOARD OF DIRECTORS OF THE NATIONAL ASSOCIATION
OF HOME BUILDERS AT THE HOTEL STATLER, BOSTON,
MASSACHUSETTS, 12:30 P. M., EDT, FRIDAY, OCTOBER 5,
1956.
The members of your organization have provided new and better
homes for millions of Americans. By imagination, courage, and
ingenuity you have brought housing of new quality within the range
of the average citizen. The home of today is perhaps the best
example of our high -- and rising -- standard of living.
Houses are being built currently at the rate of about 1,100,000
a year -- a rate exceeded in only three earlier years. As a matter
of fact, more single family homes have been built in the past three
years than in any other three-year period in our history.
While the number; of homes being built currently is less than
in 1955* the average sise and cost are larger^ so 'chat the dollar
value is not much less; it is, indeed, well above any year prior
to 1955.
This large amount of housing is apparently being well absorbed
by the market, though there are signs that the number cf new homes
may be outrunning the demand for them in some areas. The main
problem, as we all know, is financing, a problem which calls for
sympathetic and careful consideration.
This large amount of housing takes an enormous amount of mortgage financing, In 1^55^ home mortgage indebtedness increased by
an unprecedented 13 billion dollars. In the first 6 months of this
year, it rose by almost 6 billion dollars more.
This was a larger amount of money than could be provided out of
the various pools of savings, such as savings and loan associations,
life insurance companies, savings banks, etc. Some of it was,
therefore, financed by short-term borrowing from commercial banks -"warehousing." Also, savings institutions sold some other securities
to buy mortgages.
Meanwhile, the demand for funds for other purposes has been
increasing. Commercial and state and local government construction
has been mounting, demanding men, materials, and money. Industrial
plant and equipment expansion is setting new records this year, so
it isn't surprising to find total construction running ahead of a
year ago. A highly prosperous state of business has brought about
a large increase in bank loans and a heavy demand for capital from
other sources. We are living in the economic climate of prosperity.
H-1175

- 2 -

In the face of these demands, even the huge flow of funds
available has not been adequate, interest rates have risen, and
money is less available.
If the Federal Reserve System tried to meet this situation by
encouraging an expansion of bank loans large enough to meet all
demands, the result would be inflationary -- with a danger of later
collapse. Already bank loans are 20 percent higher than a year ago.
The real underlying shortage here is not so much money as it
is manpower and materials. Too freely available loans would make
matters worse by encouraging even more feverish bidding for scarce
resources at higher and higher prices. The home buyer has a big
stake in avoiding inflation, and so getting a house at a reasonable
price.
So right now, this country is facing a dilemma: it can have
price inflation, on the one hand, without any real gain in output;
or, by postponing a little a few of the things we are trying to do
all at once, we can keep a steady, upward trend without inflation.
For the longer run, the outlook is hopeful. The current flow
of the people's savings, which can be available for building and
other capital expansion, is large and is increasing. Individuals
saved 7 percent of their income after taxes in the first half of
1955 -- at the rate of $20 billion a year. And the rate is rising.
Higher interest rates are stimulating savings and are slowing down
some borrowing. This is a natural and normal corrective to the
present inflationary pressures.
The most helpful thing the Government can do for your business,
and to provide more and better housing, Is to encourage a large
flow of savings available to finance building at a healthy rate.
There are three ways to encourage savings. The first is to
give people confidence that money is sound, that the money they
save will retain its buying power. That means balanced budgets
and sound monetary policy.
The second way is to reduce taxes. We have reduced them already
by 7-1/2 billion dollars and will do more when it can be done without a budget deficit.
The third way is to let money rates seek their natural level
in response to supply and demand instead of pegging them at artificially low levels. Perpetually easy money is the shortest road
to inflation.
These are exactly the policies this Administration has been
following. I should add that they were not followed by the previous
Administration, and the present Democrat platform would violate
them.

G9
- 3These broad policies are the only ones which offer any prospect
of sound, vigorous growth of the building industry.
They will take a little time to work, and, in the meantime,
some readjustments are inevitable. You can't change your economic
climate without some change in your living habits.
This Administration recognizes the hardships involved to some
people in a readjustment of this sort. We shall do what we can
to ease these adjustments in such cases. That is why a number of
steps have already been taken in the operation of Government housing
agencies to cushion the impact. We shall welcome all suggestions
made by the industry and be giving the problem continuing and close
attention.
The country's capacity to make adjustments is greatly aided by
the current high general prosperity, with national income at constantly rising levels.

--oOo--

- 7i ^

These are the policies of inflation. They produced inflation during
the previous Administration; they would do so again If the Democrat
platform were put Into effect*

They are not the policies which woul<

give the country sustained and vigorous growth at stable prices*

«*«»'0QQw«»

- 6-

The Government recognizes fully its responsibility in continuing
to keep the dollar sound*
Under this Administration, the Federal budget has not only been
balanced, but we had a $1-3/* billion surplus last year for debt
reduction*

Another balanced budget is proposed for the current fiscal

year. Government deficits are no longer a source of inflation and
instability*
The Federal Reserve System has been free for several years now to
exercise its independent judgment In the determination of monetary
policies in the public interest. The broad program of the Federal
Reserve over the past year or so in checking the tendency toward over*
expansion of credit has been helpful in keeping the pressures toward
Inflation within bounds.
we are today living in the greatest period of peacetime prosperity
our Hation has ewer known, based on confidence in sound and honest
government*

The task before us is to learn to live with prosperity

today that we all may look forward to enjoying even better tomorrows*
One of the best ways we can do this Is to consciously follow policies
which will encourage more savings and assure an ample flow of funds
for the dynamic progress of the country without inflation*
It is just at these points that there is a radical difference
between the policies of this Administration and the Democrat policies
as followed in the previous Administration, and as advocated in their
platform In the present election*

Their policies were, and are, in

favor of cheap money and heavy and increasing Government spending.

mm, Q
5

For example, an increase of only 8 percent in building costs would
cost the home-buyer

with s, $10,000 mortgage twice as much over a

25-year period as the cost of an interest rate rise from 4-1/2 percent
to 5 percent*

What is true for the home-buyer is true for the

businessman as well.
Moreover, the higher interest costs that we are all having to
pay for new borrowing just don't disappear. They flow back to our
people In the form of gradually rising returns on their savings investments, available for spending or re-lending*

Millions and

millions of our people receive interest in one form or another*
Three families out of every four own bonds or have money In bank
accounts. Five out of every six own some form, of life insurance*
When a higher interest return is paid, it does not go just to a
few people, as some critics would lead our people to believe, but it
goes to benefit directly and to encourage the savings of millions and
millions of Americans.
We are a thrifty Nation, and our rate of saving has been increasing recently*

The dollar rate of net personal saving in the

second quarter of 195® was the highest since World War XX. This Is
in spite of ail the Increases in debts*
The greatest Incentive of all to save Is confidence in the con*
tlnuing value of the dollar*

Inflationary Government policies helped

cut the purchasing power of the 1939 dollar to 32 cents by the end of
1952*

Since then, we have enjoyed a remarkable period of price

stability which has continued longer than ever before in our lifetime!
The purchasing power of the dollar has held close to its value for
3-1/2 years.

If everybody could borrow as much as he wants when the economy Is
already working close to capacity, the net result would be a scramble
for scarce materials and scarce labor, and prices would HP up* This
tendency Is obvious in recent small increases in prices In many areas,
But the real question is how much more prices would have gone up
If credit had been allowed to expand to cover all the demand* We do
not have to look back very far to see what happened to prices during
the era of almost unlimited eredit and artificially controlled lateral
rates*

In the post World War XI period alone —

ending December, 1932, —

la the mmymn years

the purchasing power of the 1939 American

dollar was cut from 76 to 52 cents —

a drop of 24 cents, or as much

as the decline during the war itself.
You may recall Senator Douglas* plea In February, 1951* {just
prior to the Federal Reserve-Treasury accord) for greater reliance on
the natural forces of supply and demand for money to counteract In*
flat ion during prosperous times, when lie said that "The costs to the
Government and to the people (of Inflation) have teen far greater
than the gains which we have made from a lower Interest rate*. The
Increase in prices since Korea is probably already adding to the
••

j- *h

Federal Government costs at the approximate rate of $6 billion a year
That is in excess of the total amount which the Government now pays
in Interest.*
Ho one stands to benefit more In a situation like the present
from allowing money conditions to tighten in response to> the laws of
supply and demand than the millions of our people who are buying, home
Lower Interest charges do the home-buyer little good if inflation
raises the coat of his home.

- 3-

Bank loans have also been expanding rapidly since June. Loans to
business by leading banks are 21Jf above September a year ago*
It is true, of course, that the distribution of resources is neve]
perfect*

Some soft spots have developed even though the economy as a

whole is moving forward practically at full speed*

When there is

vigorous competition for money, as there is today, not everybody can
get all the money he wants. For example, mortgage money for home
building is scarce in some areas. This is true despite the fact that
mortgage lending is still going forward at close to all-time highs*
The Administration, as you know, has recently taken several steps to
make home financing money a little easier to get where it is scarce*
The Government has also taken steps to be sure that any small business
which is really In distress mill be taken care of through the Small
Business Administration*
What we all need to understand more fully, however. Is that
present money conditions are the natural outgrowth of the strong
demand for capital. This heavy demand for capital has been moving
interest rates up. The Federal Reserve has kept its discount rate
in tune with market rates*

As the custodians of the country's mane tarj

reserves, they have thus helped to keep

a proper restraint against

excessive credit expansion.
naturally, any borrower —

large or small — who Is denied a loan

Is inclined to feel that he is being unduly restricted. From a
national viewpoint, however, the basic shortage In times like these
la not money or credit at all; it is a shortage of physical resources*

- 2 Most of the present tremendous growth of our country is being
paid for out of savings —

the savings of Individuals and business.

But all the savings we are making are not enough to pay for all we are
trying to do. This doesnft mean that the supply of savings is going
down.

It means that the demand for money is going up.

So people are borrowing money —

lots of money*

As long as they

borrow money that other people have already saved, there is no great
problem.

But when that supply of savings is not great enough, and

people borrow so much from banks that the banks have to borrow from
the Government through the Federal Reserve System, that makes trouble*
If that borrowing gets too big, it makes Inflation*
When people try to borrow more money than other people have saved,
the price of money, the interest rates, go up.

Lenders have to decide

which loans they will make and which they will decline*

They have to

decide whether they, In turn, can borrow from someone else or from the
Government to help meet the demand. That Is just what has been happening lately*

That is where the danger of inflation comes in.

When you get down to the facts, borrowers have been able to get
most of the money they want.

Borrowing is setting new records.

Let's compare January-June, 1956, with the same period In earlier yean
The volume of new mortgage loans has been tremendous*

Hew non-farm

mortgage recordings were |13*5 billion in January-June, 1956, only
slightly below the record set in January-June, 1955. Consumer credit
was still growing, and bank loans to business were greater than in any
other January-June since World War II. More corporate securities were
sold than ever before -- 15# above the 1955 record, and the third
quarter record promises to be even more impressive*

REMARKS BY W. RANDOLPH BURGESS, UNDER SECRETARY
OF THE TREASURY, AT THE ANHUAL COHVEHTIOH OF THE
MORTGAGE BANKERS ASSOCIATION OF AMERICA, CONRAD
HILTON HOTEL, CHICAGO, ILLINOIS, MONDAY, OCTOBER 8,
1956, at 10:30 A.M. &PT*
LIVING W T H PROSPERITY
To understand the present building situation, and the financial
situation generally, we need to recognise that our economic climate
has changed.

We are living today in a period of unprecedented peace*

time prosperity.

Our total national production is breaking all

records. More people are working than ever before*

National income

is making new records.
Hew construction is greater than ever, as we build more schools aw
more highways, as we continue to build new homes at the rate of over
one million a year, and as we rebuild and expand our Industrial plants.
Consumer spending for automobiles, freezers, washing machines, television sets, and for food, clothes, and travel Is huge*
This is a great change.
time prosperity.

This country is not accustomed to peace-

We have been through d0 years of depression and

wars, both hot and cold.

There have been only snatches of peacetime

prosperity in between.
This presents us with some new problems —

new in this generation.

One of the greatest problems has to do with money.
All of our present productive activity takes money —
ever before in peacetime*

more than

How shall we find the money to finance

this activity without inflation -- without, in effect, printing money*
Fortunately, the people of the United States have the habit of
saving money. Each year they save 6 to 8 percent of their income.
Business also saves^to pay for expansion, almost half of what It earns*

TREASURY DEPARTMENT
Washington
REMARKS BY W. RANDOLPH BURGESS, UNDER SECRETARY
OP THE TREASURY, AT THE ANNUAL CONVENTION OF THE
MORTGAGE BANKERS ASSOCIATION OF AMERICA, CONRAD
HILTON HOTEL, CHICAGO, ILLINOIS, MONDAY, OCTOBER 8,
1956, at 10:30 A.M., CDT.
LIVING WITH PROSPERITY
To understand the present building situation, and the financial
situation generally, we need to recognize that our economic climate
has changed. Vie are living today in a period of unprecedented
peacetime prosperity. Our total national production is breaking
all records. More people are working than ever before. National
income is making new records.
New construction is greater than ever, as we build more schools
and more highways, as we continue to build new homes at the rate of
over one million a year, and as we rebuild and expand our industrial
plants. Consumer spending for automobiles, freezers, washing
machines, television sets, and for food, clothes, and travel Is
huge.
This is a great change. This country is not accustomed to
peacetime prosperity. We have been through 20 years of depression
and wars, both hot and cold. There have been only snatches of
peacetime prosperity in between.
This presents us with some new problems -- new in this generation. One of the greatest problems has to do with money.
All of our present productive activity takes money -- more than
ever before in peacetime. How shall we find the money to finance
this activity without inflation -- without, in effect, printing
money?
Fortunately, the people of the United States have the habit of
saving money. Each year they save 6 to 8 percent of their income.
Business also saves, to pay for expansion, almost half of what it
earns.
Most of the present tremendous growth of our country is being
paid for out of savings -- the savings of individuals and business.
But all the savings we are making are not enough to pay for all we
are trying to do. This doesn't mean that the supply of savings is
going down. It means that the demand for money is going up.
H-1176

8u
- 2 So people are borrowing money — lots of money. As long as
they borrow money that other people have already saved, there is no
great problem. But when that supply of savings is not great enough,
and people borrow so much from banks that the banks have to borrow
from the Government through the Federal Reserve System, that makes
trouble. If that borrowing gets too big, it makes inflation.
When people try to borrow more money than other people have
saved, the price of money, the interest rates, go up. Lenders have
to decide which loans they will make and which they will decline.
They have to decide whether they, in turn, can borrow from someone
else or from the Government to help meet the demand, That is just
what has been happening lately. That is where the danger of inflation
comes in.
When you get down to the facts, borrowers have been able to get
most of the money they want. Borrowing is setting new records. Let's
compare January-June, 1955, with the same period in earlier years.
The volume of new mortgage loans has been tremendous. New nonfarm mortgage recordings were $13.5 billion in January-June, 1956*
only slightly below the record set in January-June, 1955. Consumer
credit was still growing, and bank loans to business were greater
than in any other January-June since World War II. More corporate
securities were sold than ever before -- 15$ above the 1955 record,
and the third quarter record promises to be even more impressive.
Bank loans have also been expanding rapidly since June. Loans
to business by leading banks are 21$ above September a year ago.
It is true, of course, that the distribution of resources is
never perfect. Some soft spots have developed even though the
economy as a whole is moving forward practically at full speed. When
there is vigorous competition for money, as there is today, not everybody can get all the money he wants. For example, mortgage money for
home building is scarce in some areas. This is true despite the fact
that mortgage lending is still going forward at close to all-time
highs. The Administration, as you know, has recently taken several
steps to make home financing money a little easier to get where it
is scarce. The Government has also taken steps to be sure that any
small business which is really in distress will be taken care of
through the Small Business Administration.
What we all need to understand more fully, however, is that
present money conditions are the natural outgrowth of the strong
demand for capital. This heavy demand for capital has been moving
interest rates up. The Federal Reserve has kept its discount rate
in tune with market rates. As the custodians of the country's
monetary reserves, they have thus helped to keep a proper restraint
against excessive credit expansion.

79
- 3Naturally, any borrower -- large or small -- who is denied a
loan is inclined to feel that he is being unduly restricted. From
a national viewpoint, however, the basic shortage in times like
these is not money or credit at allj it is a shortage of physical
resources. If everybody could borrow as much as he wants when the
economy is already working close to capacity, the net result would
be a scramble for scarce materials and scarce labor, and prices
would go up. This tendency is obvious in recent small increases
in prices in many areas.
But the real question is how much more prices would have gene
up if credit had been allowed to expand to cover all the demand.
We do not have to look back very far to see what happened to prices
during the era of almost unlimited credit and artificially controlled
interest rates. In the post World War II period alone -- in the
seven years ending December, 1952, -- the purchasing power of the
1939 American dollar was cut from 76 to 52 cents -- a drop of 24
cents, or as much as the decline during the war itself.
You may recall Senator Douglas' plea in February, 1951* (just
prior to the Federal Reserve-Treasury accord) for greater reliance
on the natural forces of supply and demand for money to counteract
inflation during prosperous times, when he said that "The costs to
the Government and to the people (of inflation) have been far greater
than the gains which we have made from a lower interest rate. The
increase in prices since Korea is probably already adding to the
Federal Government costs at the approximate rate of $6 billion a
year....That is in excess of the total amount which the Government
now pays in interest."
No one stands to benefit more in a situation like the present
from allowing money conditions to tighten in response to the laws of
supply and demand than the millions of our people who are buying
homes. Lower interest charges do the home-buyer little good if
inflation raises the cost of his home. For example, an increase
of only 8 percent in building costs would cost the home-buyer with
a $10,000 mortgage twice as much over a 25-year period as the cost
of an interest rate rise from 4-1/2 percent to 5 percent. What is
true for the home-buyer is true for the businessman as well.
Moreover, the higher interest costs that we are all having to
pay for new borrowing just don't disappear. They flow back to our
people in the form of gradually rising returns on their savings
investments, available for spending or re-lending. Millions and
millions of our people receive interest in one form or another.
Three families out of every four own bonds or have money in bank
accounts. Five out of every six own some form of life insurance.

- 4-

When a higher interest return is paid, it does not go just to
a few people, as some critics would lead our people to believe,
but it goes to benefit directly and to encourage the savings of
millions and millions of Americans.
We are a thrifty Nation, and our rate of saving has been increasing recently. The dollar rate of net personal saving in the
second quarter of 1956 was the highest since World War II. This
is in spite of all the increases in debts.
The greatest incentive of all to save is confidence in the
continuing value of the dollar. Inflationary Government policies
helped cut the purchasing power of the 1939 dollar to 52 cents by
the end of 1952. Since then, we have enjoyed a remarkable period
of price stability which has continued longer than ever before in
our lifetimes. The purchasing power of the dollar has held close
to Its value for 3-1/2 years.
The Government recognizes fully its responsibility in continuing
to keep the dollar sound.
Under this Administration, the Federal budget has not only been
balanced, but we had a $1-3/4 billion surplus last year for debt
reduction. Another balanced budget is proposed for the current
fiscal year. Government deficits are no longer a source of inflation
and instability.
The Federal Reserve System has been free for several years now
to exercise its independent judgment in the determination of monetary
policies in the public interest. The broad program of the Federal
Reserve over the past year or so in checking the tendency toward
over-expansion of credit has been helpful in keeping the pressures
toward inflation within bounds.
We are today living in the greatest period of peacetime prosperity our Nation has ever known, based on confidence in sound and
honest government. The task before us is to learn to live with
prosperity today that we all may look forward to enjoying even
better tomorrows. One of the best ways we can do this is to consciously follow policies which will encourage more savings and
assure an ample flow of funds for the dynamic progress of the
country without inflation.
It is just at these points that there is a radical difference
between the policies of this Administration and the Democrat policies
as followed in the previous Administration, and as advocated in their
platform in the present election. Their policies were, and are, in
favor of cheap money and heavy and increasing Government spending.

77
- c; -

These are the policies of inflation. They produced inflation during
the previous Administration; they would do so again if the Democrat
platform were put into effect. They are not the policies which
would give the country sustained and vigorous growth at stable
prices.

--0O0--

82
-

/ / / /

IMMEDIATE RELEASE,
Thursday, October U* 1956.
The Treasury Department announced today that it will invite
caab tenders for $1,600,000,000, or thereabouts, of 91-day
Treasury bills to raise the cash needed for its current requirements. The full terns of the offering will be contained in a
statement to be released Monday nornlag, October 8. Tenders will
be opened at 2 p.m., Eastern Daylight Saving tine, on Wednesday,
October 10* The new bills will be dated and must be paid for on
October 17, 1956, and nay be paid for by credit in Treasury Tax
and Loan accounts. They will nature on January 16, 1957•

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Thursday, October 4, 1956.

H-1177

The Treasury Department announced today that
It will Invite cash tenders for $1,600,000,000,
or thereabouts, of 91-day Treasury bills to
raise the cash needed for its current requirements.

The full terms of the offering will be

contained in a statement to be released Monday
morning, October 8.

Tenders will be opened at

2 p.m., Eastern Daylight Saving time, on
Wednesday, October 10. The new bills will be
dated and must be paid for on October 17, 1956,
and may be paid for by credit In Treasury Tax
and Loan accounts. They will mature on
January 16, 1957*

oOo

m 6 -

It reports directly to Congress and not to the President. This
Administration has respected the independence of the Reserve Syatea.
The Reserve System has allowed the demand for funds in excess of
available savings to express Itself naturally in higher Interest
rates,

fhia is exactly what is happening in other countries.

we believe these policies are sound and lie at the base of our
present high prosperity.

At the same time that national produetioa

has been establishing new records, the cost of living has moved
within a very narrow range.

We have had remarkable price stability

during the past 3-1/2 years. Confidence is high and savings are
growing.

These policies have nourished the dynamic growth forces of

the United States economy and, at the same time, maintained the
United States dollar as a strong and reliable currency which our
people and the people of all nations can trust.
These are policies that are good for the United States in the
long run —

not just for today.

They conform to the admonition of

George Washington:
"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."

~-o0o~-

- 5•we are the trustees of the value of our peoplefs work
and skill, which Is to say, the value of their money.
We are responsible for the value of their wages and
salaries, their savings accounts, their pensions and
insurance policies, and the other investments they make
to provide for the future.
bility and trusteeship.

This is a sobering response

The average citisen cannot defend

himself against the terrible hardships of inflation.
"Inflation brings with it grave social injustices and
instability.

It daatroylfa not only the value of savings,

but also confidence,and security, and social values*
flation is the cruelest form of theft —

In-

a theft with

greatest harm to those least able to protect themselves.
Inflation results in the destruction of the value of money.*
We in the United States reeponaible for this trusteeship to the
average citisen and for the continued dynamic growth of productive
enterprise in our country have tried to meet this great responsibility
wisely -- through three principal means.
First, we have brought the national budget into balance* You
can't have stable money if government deficit spending is feeding the
fires of inflation.
Secondly, we have freed the economy from many artificial eontrcll
and restraints.
Thirdly, we have allowed monetary and credit policy to operate
for the public good.

The Federal Reserve System is the body created

by Congress to act as custodian of the country's money supply.

£6

•»*)-.*

All of our present productive activity takes money ~

more than

ever before in peacetime. How shall we find the money to finance
this activity without inflation — without, in effect, printing money?
Fortunately, the people of the United States have the habit of
saving money. Each year they save 6 to 8 percent of their income*
Business also saves to pay for expansion almost half of what it earns*
Most of the present tremendous growth of our country is being
paid for out of savings —

the savings of individuals and business*

But all the savings we are making are not enough to pay for ail we
are trying to do. This doesn*t mean that the supply of savings is
going down. It means that the demand for money Is going up.
So people are borrowing money — lots of money. As long as they
borrow money that other people have already saved, there is no great
problem.

But when people try to borrow more money than other people

have saved, the price of money, the interest rates, go up. Lenders
have to decide which loans they will make and which they will decline*
They have to decide whether they in turn can borrow from someone else
or from the Government to help meet the demand. That is Just what
has been happening lately.

That is where the danger of Inflation

comes in*
Here is the economic situation in the United States; and other
countries In the free world are facing a similar problem*
Our responsibilities in this situation were stated by Secretary
Humphrey at the 60-country meeting. Me said:
*We who are gathered here — Ministers of Finance
and central bank governors — have a very special responsibility to the people of our countries.

- 3The countries which have followed these principles have made the
best recoveries.

The principles which have worked so well are simple

and old-fashioned;

the Government must not spend more than its income,

and money must be free to reflect the laws of supply and demand.
In our meetings last week with finance ministers and central bank
governors from 60 nations of the free world, the surprising thing was
how fully these people agreed on their size-up of the present situation
Most of them stated that their countries are today threatened with prie
Inflation.

The problems confronting most of the countries, including

the United States, arise out of high prosperity in a world at peace*
These problems arise from the insistent and conflicting demands on
available resources In each country.
We are living today in a period of unprecedented peacetime
prosperity.

Oufe/total national production is breaking all records.

Wore people are working than ever before*

national income is making

new highs.
Hew construction is greater than ever, as we build more schools
and more highways, as we continue to build new homes at the rate of
over one million a year, and as we rebuild and expand our industrial
plants.

Consumer spending for automobiles, freezers, washing machines,

television sets, and for food, clothes, and travel Is huge.
This is a great change. This country is not accustomed to peace*
time prosperity.

We have been through 20 years of depression and war«j

both hot and cold.

There have been only snatches of peacetime

prosperity In between.

88
«* 2 —

It succeeded in Guatemala, where Communism gained briefly its
only foothold in the Americas.
It brought peace in Korea*
It succeeded in Iran.
There have been other great triumphs in the peaceful settlement
of problems which ran deep in human emotion:

the release of Austria

from behind the Iron Curtain, the settlement of Trieste, and now an
agreement on the Saar*
All of these have profound meaning. They show what patient
negotiations, pursued with good will and backed by the moral force
of nations acting together, can accomplish.
To this method, President Eisenhower has given his unflagging
support*

As a great soldier, he knows ail too well the human costs

of war. He is devoting his life to avoiding It now and in the future
with an experience, a capacity, and a prestige which are unequalled
in the history of our own or any other country.
Mow let me approach the subject of money by telling you about a
recent international meeting.
A few days ago, there met in Washington for a week the representatives of 60 nations which are members of the International Bank and of
the International Monetary Fund. They were a distinguished group led
by finance ministers and the heads of central banks*
This was their eleventh annual meeting.

In ten years, these 60

countries have moved from wajp-torn, disorganised lands to relative
prosperity.

The International Bank and the International Monetary

Fund have had a share In this change, not so much because of the loans
they have made, but more largely because they have aided and encourage*
their members to follow certain specific principles of finance.

S A**>1**?Wu~p ft
map**

i.m-mautmmmnimmM,^

"**$'•Pp-h*<mm,

Q Q

REMARKS BY ¥. RANDOLPH BURGESS, UHDER SECRETARY
OF TIE TREASURY, AT THE ANNUAL BANQUET OF THE
AMERICAI ASSOCIATION OF 01LWLL DRILLIRG COMTRACTORS,
AT THE TEXAS HOTEL, FORT 1QRTI, TEXAS, TUESDAY, 7.W/>fr CS
OCTOBER 9, 1956*
MAOHG T«£ MOST OF OUR OPPORTUNITIES
The business of the Treasury is money, and that's what I shall
discuss tonight*

But I cannot avoid saying Just a few words to this

audience about the Sues problem*
The press and Mr. Dulles1 statements have given you a very complete knowledge of the facts. I want to comment solely on the
principles which guide the efforts of the United States to solve this
question without war.
This Incident could easily have led to war, and the danger is
not wholly past.
But the United States, in this and other cases, will use every
effort to solve it without war.
we are testing and proving new methods of international relation!
in the hope that we can spare ourselves, our children and grand*
children the dreadful scourge of war.
For we have learned that war seldom settles anything. It may
cost the victor more than the vanquished.
In our adherence to the United Nations, we pledge ourselves to
seek peaceful means of settling disputes*
So, in this case, we have tried to rally the public opinion of
the civilised world for the peaceful settlement of the dispute in
conformity with principles of Justice and international law*
will take patience, but I believe It will succeed.

This

I think so partly

because It has succeeded several times in the past four years*

TREASURY DEPARTMENT
Washington

REMARKS BY W. RANDOLPH BURGESS, UNDER SECRETARY
OF THE TREASURY, AT THE ANNUAL BANQUET OP THE
AMERICAN ASSOCIATION OP OILWELL DRILLING CONTRACTORS,
AT THE TEXAS HOTEL, FORT WORTH, TEXAS, TUESDAY,
7:00 P. M., CST, OCTOBER 9, 1956.

The business of the Treasury is money, and that's what I shall
discuss tonight. But I cannot avoid saying just a few words to this
audience about the Suez problem.
The press and Mr. Dulles' statements have given you a very complete knowledge of the facts, I want to comment solely on the
principles which guide the efforts of the United States to solve
this question without war.
This incident could easily have led to war, and the danger is
not wholly past.
But the United States, in this and other cases, will use every
effort to solve it without war.
We are testing and proving new methods of international relations
in the hope that we can spare ourselves, our children and grandchildren the dreadful scourge of war.
For we have learned that war seldom settles anything. It may
cost the victor more than the vanquished.
In our adherence to the United Nations, we pledge ourselves to
seek peaceful means of settling disputes.
So, in this case, we have tried to rally the public opinion of
the civilized world for the peaceful settlement of the dispute in
conformity with principles of justice and international law. This
will take patience, but I believe it will succeed. I think so partly
because it has succeeded several times in the past four years.
It succeeded in Guatemala, where Communism gained briefly its
only foothold in the Americas.
It brought peace in Korea.
It succeeded in Iran.

H-1178

- 2 -

91
There have been other great triumphs in the peaceful settlement of problems which ran deep in human emotion: the release of
Austria from behind the Iron Curtain, the settlement of Trieste,
and now an agreement on the Saar.
All of these have profound meaning. They show what patient
negotiations, pursued with good will and backed by the moral force
of nations acting together, can accomplish.
To this method, President Eisenhower has given his unflagging
support. As a great soldier, he knows all too well the human costs
of war. He is devoting his life to avoiding it now and in the future
with an experience, a capacity., and a prestige which are unequalled
in the history of our own or any other country.
Now let me approach the subject of money by telling you about
a recent international meeting.
A few days ago, there met in Washington for a week the representatives of 60 nations which are members of the International Bank and
of the International Monetary Fund, They were a distinguished group
led by finance ministers and the heads of central banks.
This was their eleventh annual meeting. In ten years, these 60
countries have moved from war-torn, disorganized lands to relative
prosperity. The International Bank and the International Monetary
Fund have had a share In this change, not so much because of the
loans they have made, but more largely because they have aided and
encouraged their members to follow certain specific principles of
finance.
The countries which have followed these principles have made
the besi; recoveries, The principles which have worked so well are
simple and old-fashioned: the Government must not spend more than
its income, and money must be free to reflect the laws of supply
and demand.
In our meetings last week with finance ministers and central
bank governors from 60 nations of the free world, the surprising
thing was how fully these people agreed on their size-up of the
present situation. Most of them stated that their countries are
today threatened with price inflation. The problems confronting
most of the countries, including the United States, arise cut of
high prosperity In a world at peace. These problems arise from
the insistent and conflicting demands on available resources in
each country. "
We are living today in a period of unprecedented peacetime
prosperity. Our total national production Is breaking all records.
More people are working than ever before. National income is
making new highs.

- 3 New construction is greater than ever, as we build more schools
and more highways, as we continue to build new homes at the rate of
over one million a year, and as we rebuild and expand our industrial
plants. Consumer spending for automobiles, freezers, washing
machines, television sets, and for food, clothes, and travel is
huge.
This is a great change. This country is not accustomed to
peacetime prosperity. We have been through 20 years of depression
and wars, both hot and cold. There have been only snatches of
peacetime prosperity in between.
All of our present productive activity takes money — more than
ever before in peacetime. How shall we find the money to finance
this activity without inflation -- without, in effect, printing
money?
Fortunately, the people of the United States have the habit
of saving money. Each year they save 6 to .:' percent of their
income. Business also saves to pay for expansion almost half of
what it earns.
Most of the present tremendous growth of our country is being
paid for out of savings -- the savings of individuals and business.
But all the savings we are making are not enough to pay for all we
are trying to do. This doesn't mean that the supply of savings is
going down. It means that the demand for money is going up.
So people are borrowing money -- lots of money. As long as
they borrow money that other people have already saved, there is
no great problem. But when people try to borrow more money than
other people have saved, the price of money, the interest rates,
go up. Lenders have to decide which loans they will make and
which they will decline. They have to decide whether they in
turn can borrow from someone else or from the Government to help
meet the demand. That is just what has been happening lately.
That is where the danger of Inflation comes in.
Here is the economic situation in the United States: and
other countries in the free world are facing a similar problem.
Our responsibilities in this situation were stated by Secretary
Humphrey at the 60-country meeting. lie said:
"We who are gathered here -- Ministers of Finance
and central ban!: Governors -- have a very special
responsibility to the prople of our countries. We
are the trustees of the value of our people's work

- 4and skill, which is to say, the value of their money.
Q
We are responsible for the value of their wages and
salaries, their savings accounts, their pensions and
insurance policies, and the other investments they
make to provide for the future. This is a sobering
responsibility and trusteeship. The average citizen
cannot defend himself against the terrible hardships
of inflation.
"Inflation brings with it grave social injustices
and instability. It destroys not only the value of
savings, but also confidence, and security, and social
values. Inflation is the cruelest form of theft -- a
theft- with greatest harm to those least able to protect
themselves. Inflation results in the destruction of
the value of money."
We in the United States responsible for this trusteeship to the
average citizen and for the continued dynamic growth of productive
enterprise in our country have tried to meet this great responsibility wisely -- through three principal means.
First, we have brought the national budget into balance. You
can't have stable money if government deficit spending is feeding
the fires of inflation.
Secondly, we have freed the economy from many artificial controls and restraints.
Thirdly, we have allowed monetary and credit policy to operate
for the public good. The Federal Reserve System is the body created
by Congress to act as custodian of the country's money supply. It
reports directly to Congress and not to the President. This
Administration has respected the independence of the Reserve System.
The Reserve System has allowed the demand for funds In excess of
available savings to express itself naturally in higher interest
rates. This is exactly what is happening in other countries.
We believe these policies are sound and lie at the base of our
present high prosperity. At the same time that national production
has been establishing new records, the cost of living has moved
within a very narroxv range. We have had remarkable price stability
during the past 3-1/2 years. Confidence is high and savings are
growing. These policies have nourished the dynamic growth forces
of the United States economy and, at the same time, maintained the
United States dollar as a strong and reliable currency which our
people and the people of all nations can trust.

- 5 These are policies that are good for the United States in the
long run -- not just for today. They conform to the admonition of
George Washington:
"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--

-3

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 inelude in his income tax return only the difference between the prise 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 So* 1*18, Revised, end 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 -

Immediately after the dosing hour, tenders will be opened at ths Federal Reserve Banks and Branches, following which public announcement will be made by the
Treasury Department of the amount and prise range of accepted bids. These 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 la amy such respect shall be final
Subject to these reservations, noncompetitive tenders for 1200,000 or lees without
stated price from any one bidder will be accepted in full at the average price (la
three decimals) of accepted competitive bids*

Payment of accepted tenders at the

prices offered must be made or completed at the Federal Reserve Bank In cash or
other Immediately available funds on October 17, 1956, provided, however, any
qualified depositary will be permitted to make payment by credit in its Treasury
Tax and Loan Account for Treasury bills allotted to it for Itself and its customers
up to any amount for which it shall be qualified in excess of existing deposits
was* so notiflail by the Federal Reserve Bank of its District.
The income derived from Treasury bills, whetfcer interest er gala twm 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 ISSk* The bills are subjed
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 kSh (b) and 1221 (5) of the Internal Revenue Code of 195

Q7
v,/

FOR RELEASE, MORNING NEWSFAFERS,
Monday, October 8, lggd.

,n #
'•' ' ^

The Treasury Department, by this public notice, invites tenders ror
11,600,000,000, or thereabouts, of 91-day Treasury

DXLXS,

10 oe lssuea on a discount

basis under competitive and noncompetitive bidding as hereinafter provided. The
bills of this series will be dated October 17* 1956, and will mature January 16, 19J
when the face amount will be payable without interest* They will be issued in beam
form only, and in denominations of $1,000, 15.000, 110,000, 1100,000, 1500,000 and
•1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the eloein)
hour, two o 1 clock p.m., Eastern Daylight Saving time, Wednesday, October 10, 1956.
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., yy.yuy. Fractions may not oe usee* it is urgea m a t tenders DC
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 or tne race amount or Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank or trust
company.

TREASURY DEPARTMENT
WASHINGTON, D.C.

FOR RELEASE, MORNING NEWSPAPERS,
Monday, October 8, 1956*
The Treasury Department, by this public notice, invites tenders for
$1,600,000,000, or thereabouts, of 91-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 dated October 17, 1956, and will mature
January 16, 1957, when the face amount will be payable without interest* They
will be issued in bearer form only, and in denominations of $1,000, $5,000,
$10,000, $100,000, $500,000 and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock p*m., Eastern Daylight Saving time, Wednesday,
October 10, 1956* 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, 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* Payment of accepted tenders at the prices offered must be made or
completed at the Federal Reserve Bank in cash or other immediately available
funds on October 17, 1956, provided, however, any qualified depositary will be
permitted to make payment by credit in its Treasury Tax and Loan Account for
Treasury bills allotted to it for itself and its customers up to any amount
for which it shall be qualified in excess of existing deposits when so
notified by the Federal Reserve Bank of its District.

QQ
-2 -

V-> \m*

The income derived from Treasury bills, whether interest or gain from the
sale or other disposition of the bills, does not have any exemption, as such,
and loss from the sale or other disposition of Treasury bills does not have any
special treatment, as such, under the Internal Revenue Code of 195U« The bills
are subject to estate, inheritance, gift or other excise taxes, whether Federal
or State, but are exempt from all taxation now or hereafter Imposed on the
principal or interest thereof by any State, or any of the possessions of the
United States, 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. T&ider Sections U5U (b) and 1221 (5) of
the Internal Revenue Code of 195U the amount of discount at which bills issued
hereunder are sold is not considered to accrue until such bills are sold,
redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets* Accordingly, the owner of Treasury bills (other than
life insurance companies) issued hereunder need include in his income tax
return only the difference between the price paid for such bills, whether on
original issue or on subsequent purchase, and the amount actually received
either upon sale or redemption at maturity during the taxable year for ifoich
the return is made, as ordinary gain or loss*
Treasury Department Circular No. 1|18, Revised, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue*
Copies of the circular may be obtained from any Federal Reserve Bank or Branch.

oOo

TREASURY DEPARTMENT
Washington
FOR RELEASE P.M. NEWSPAPERS,
MONDAY, OCTOBER 8, 1956.
I II »

•

• •

I I

I I -

1 1 1 !

1Q0

H-1180

II I |

Remarks by Secretary of the Treasury
George M. Humphrey before The Economic
Club of Detroit, Detroit, Michigan,
12:30 P.M., S.S.T., Monday, October 8,

1956
TRUE PROSPERITY IN AMERICA
I am very grateful to you for giving me the pleasure of
coming out to Detroit for this visit in such pleasant surroundings
with so many of my old friends.
And I am particularly pleased to have been introduced to you
by Albert B. Cobo, the man who is now the Mayor of this fine city
and who soon will be the Republican Governor of this great state.
I want to talk to you for a few minutes today about something that almost everybody seems to be talking about — tight
money.
We can't have high prosperity, abundant jobs at high pay,
high confidence, high spending, and wide general expansion with
cheap, unlimited money and a stable cost of living all at the
same time.
Our problems today are the problems of great prosperity.
They are nonetheless real and difficult and must be courageously
faced if we want to keep true prosperity in America — prosperity
that will continue and stretch forward into the future.
Let me tell you why. And let's start, as Al Smith used to
say, by taking a look at the record.
Let's go back to 1939 — before the last world war — and
come down to today. In the period of about six years, from
1939 through the end of 19^5, the year the war ended, the value
of the dollar in goods that it would buy was reduced from
100 cents to 76 cents, a reduction of 24 cents or about one
quarter. During that period interest rates, by deliberate design
of the Administration then in power were artificially held at low
levels.

101
- 2 During the next seven years, from the end of 1945 through
1952, covering the postwar period and prior to the advent of this
Administration, and when we were supposed to be returning to a
peacetime economy, the value of the dollar in goods that it
would buy was further reduced from 76 to 52 cents or another
24 cents — a reduction this time of about one third. And, during
most of that period, by deliberate design of the Administration
then in power, interest rates were still being held to a low level.
And all that time the cost of living was steadily increasing
until there was a total increase during those 13 years of the
previous Administration of almost 100 percent in the cost of living
while the dollar was cut nearly in half.
Since the election of this Administration from 1952 right
up to the present day, almost four years, the value of the
dollar in goods that it would buy has been reduced from 52.1 to
50.9 or about 1.2 cents. Interest rates have been allowed to
fluctuate naturally, both up and down, in response to the extent
of demand.
The record is all too clear. The evidence of the actual
facts is too convincing. While we had arbitrarily cheap and
plentiful money the cost of living doubled — the value of the
dollar was cut in half. Whereas with money advancing or declining
more freely in response to the pressure of demand, we have enjoyed
a perfectly remarkable stabilization in the cost of living and as
sound a dollar as can ever be had.
There is plenty of talk nowadays of a new record high in the
cost of living but again lets look at the record. From 1939
through 1952, under the deliberately inflationary policies of
the previous Administration, there were 30 -- yes 30 — separate
times when new record highs in the cost of living were set and the
cost of things for living rose from $1.00 to $1.92. The cost
of those same things today is at a record high at $1.96#. But
the real point is that of the total increase of 96J cents
over the whole period 92 cents came during the 13 years under the
inflationary policies of the previous Administration as compared
with only 4g cents in nearly four years under the stabilizing
policies of the Administration now in power.
A new record high now, yes, but built up by 92 cents under
deliberate inflation in 12 years and held down to only 4f cents
by a reversal of policy to stabilization during the 4 years just
past.
No more effective demonstration of the difference between
the two policies in their effect upon the lives of the American
people could possibly be made.

- 3-

iu2

Now is there any reason why we should not learn from that
hard experience? Is not this demonstrated fact of the past a
reliable guide for the future to show us the pitfalls to avoid
and point the course that we should follow if this great
prosperity, if these great good jobs, good pay and good times
are to endure and further sweeping increases in the cost of
living are to be held down?
I can give you no lecture on abstract economics, but I can
call your attention to a few common sense basic facts.
Our problem is the problem of prosperity; to continue to live
successfully and permanently with prosperity, in peace and
freedom.
It may be even tougher than the problems of adversity, for when
you are in trouble the whole idea is to get it over with — to make
a change. What we have now, we want to keep. We want good times
to continue. We want to have exactly the same problem next year,
the year after, and as far ahead as we can see.
The problem of learning to live with prosperity, at peace,
and in the freedom which we Americans regard as our birthright,
is not alone the problem of government.
It is equally your problem —- the problem of every American.
We cannot place upon the government the exclusive concern with
the difficulties -- we might call them the happy difficulties —
that arise when you try to make prosperity last in a time of
peace and in a free society.
It might be called the problem of "too much all at once."
But there is a simpler and older name for it: the problem of
supply and demand. We are prosperous, and that means we are
working very close to the limits of our manpower and our materials.
We are at peace, so there is no place for wartime controls or
powers to ration work and materials. We are free and we want to stay
free, so we do not want to dictate wages, prices or rents. We do
not want to arbitrarily allocate materials and labor by government
order or decree.
But just because we are prosperous — in peace and in
freedom — because the public in general has great confidence in
the future, we all want to buy and expand. The public wants to
earn more and spend more, all at the same time. The demand for
money is unlimited, but the supplies of the things money buys —
goods, materials, and the labor, skill and services of people —
are limited. We have neither the necessity of war nor the desire
of dictatorial government to ration those things. That being so,
we must keep the supply of money from growing beyond the supply
of people and materials. That is the only way to avoid rapidly
rising prices and inflation while maintaining prosperity in company
with both peace and freedom.

- 4-

103

In years gone by the government, deliberately encouraging
inflation, arbitrarily held the price of money down.
The cost of living doubled. Our debt went up by a large
amount, partly because the prices of the things the government was
then buying went up so much in price. And ail that extra debt
we still have with us to pay with hard work and the sweat of our
brows for the errors of the past.
Today a very high percentage of all the people of the
United States are employed, and the goods of the United States
are being largely absorbed. Materials in most cases are in full
demand and in some cases there are even shortages. Except for
a very few scattered soft spots, the situation by and large is
one of great prosperity straining the Nation's resources.
When as now, widespread confidence In the future is so high
that we seek to go further and faster than that, what happens?
We start drawing either manpower or scarce materials away from
each other. That is going on today. If you don't think it is,
do what I did the other day. Take the Sunday editions of half a
dozen major city newspapers across the country — including
Detroit. Throw away all of the pages except those pages which
have to do with advertising by various concerns to hire people,
and in these half dozen papers those pages will be several inches
thick. Pretty nearly everybody in business is advertising in
some paper to employ some man for some company other than the
one he is now working for.
The same thing is going on with many materials.
There has to be some governor, some restriction, in this
situation, otherwise the price of materials and goods keeps going
on up without producing any more goods, and vie all just pay more
for the same.
If this big demand for money is used to expand sales and
plant and capacity and activity when expansion only means
hiring more people and trying to get more goods than there are,
then the price of goods and services will rise with no corresponding
increase in either goods or productivity.
But, if the price of money rises it will tend to keep the
demands for expansion in line with the supply of our resources.
And, it is easier to contract the price of money when it
has served its purpose than it is to contract the price of goods
and services. You don't contract what you pay for services,
goods and materials without some very serious hardships resulting.
But you can contract the price of money without hurting people.
That is why it is the best economic governor. It protects jobs,
prices and wages as it works.

- 5-

104

We don't want to go the "easy" money road, the old
familiar road to inflation. We don't want to go up only to
come down. We want to let natural corrections and restraints
operate freely.The government is not putting up the price of
money. It is the accumulated demands of people and business that
is doing it.
As more and more people want to expand and use more money to
do so, the demand for money increases and the price rises.
Now if the Federal Reserve Board neither arbitrarily increases
the supply nor arbitrarily holds down the price, interest rates
naturally rise. As they rise, and money costs more, some people
refrain from so much expansion and the demand for money decreases.
As supply again catches up with demand, the price again begins to
decline and the pressure on the cost of living is reduced without
an excessive advance hurting all the people.
There are other sources of pressure that must also be taken
into account. The government of the United States collects and
spends so much money that it has a tremendous effect on the
economy.
In this Administration we have reduced our expenditures
about eight billion dollars. At the same time we cut taxes by
nearly the same amount as the money we saved. In cutting taxes
we gave back to the public to spend for themselves as they
thought best the money we saved in government spending. This
helped to make jobs in private industry for those whose livelihood
had formerly depended on government spending. They helped to
produce more goods for all the people to buy, whereas when those
government employees were working for the government they didn't
produce any goods that the rest of the people could purchase.
Today we are spending in the neighborhood of forty billion
dollars for military goods and services. That forty billion
dollars is money that goes out in wages and for goods that
turn into wages. It makes that much spending power in the country.
Yet there isn't anybody involved in that whole forty billion
dollars who makes goods that a consumer can buy. Consumers
don't buy tanks or bombers.
Defense spending is necessary, and we will continue to spend
on defense every penny and every billion we need to spend to
provide the nation with security. But the economic significance
is that the government in its own fiscal policy is putting a
great pressure on the market for goods by putting that much money
into this spending stream and not putting added goods out for the
people to buy.
That brings us to the next point, the government's policy
with respect to debt and savings. When interest rates are kept
down arbitrarily, not only is the incentive to save money reduced,

- 6-

but the fear of inflation helps to create a lack of capital -a lack from which the whole world is suffering.
We are short in this country and in the whole world of
capital — that means savings.
We have been through a period of years when there was little
incentive to save. In the first place, the interest rate was
held down so low that there was very little return. There was
no natural incentive. In the second place, as the value of the
dollar declined and as inflationary pressures took hold, people
were afraid to save a dollar because it was constantly declining
in value. As I have shown, six years later it was worth only
seventy-six cents and in 13 years it went down to only fifty-two
cents. So the lack of incentive resulting from low interest
and the fear of inflation first took away the reason to save and,
as it went on, it actually kept people from saving. On top of
all this some of our public leaders then scoffed at saving as
outmoded and old fashioned and urged spending and more spending,
regardless of increasing debt or adequate income.
Saving money and thereby creating capital is no mystery.
It simply means that some one must deny himself the pleasure
or desire to spend some part of his pay check rather than save it.
Part of his income he must properly spend but part can be laid
away for the future if (l) there is sufficient incentive to do so
because of a fair return in interest or dividend, and (2) if he
feels safe in the continuing value of his savings. Most all
Americans are saving something today through purchase of insurance,
payments for pensions, the purchase of government bonds or in a
savings account or in the many other ways to do so, AS interest
rates rise all those savers benefit. But if inflation sets in
and the dollar declines they all are robbed of part of their
savings. Inflation is the great thief. The young, the old, the
sick, the small saver, all those least able to protect themselves,
are the helpless prey of wicked inflation. It must be held in
check.
We must also create more incentive for more saving, to have more
capital available for expansion. We must have it because we in
our growing country have a million new people every vear looking
for new jobs. Unless someone can invest from ten to twenty
thousand dollars apiece for them, they cannot get a job in which
they can earn the kind of wages now being paid in ..merica —
wages 12 percent or more above those paid in 1952. Such wages
can only be paid on the basis of high productivity, the kind of
productivity that comes only from skilled workers using highly
productive machines and power. Those machines and that power
cost money. We can only have the plants, the machinery, the power,
the transportation and all the rest that goes to make up our
modern
industrial
andlays
farmthat
lifegolden
b^ saving
kills the
goose that
egg.and investing. Inflation

- 7-

108

Without savings and investments you cannot get high
productivity. Without high productivity you cannot have high
wages. Without high wages you cannot have the standard of living
v:e all want. Inflation stops the whole process. That is something we all need to understand. The best known way to help
control it is a flexible price for money, because a flexible price
for money is a governor that operates to hold down the cost of
living and make prosperity last, in peace and in freedom.
There can be some differences of opinion as to timing and the
degree with which this process of using the price of money as our
economic regulator takes place. But the process is a sound,
right step in the direction of sound money; a sound economy;
and continuing to have the people of this country working at more
and better jobs at higher pay and with ever higher standards of
living for all the people.
Now, I am not here this noon to make a political speech.
But this all leads me to some vital conclusions about true
prosperity. There are two roads we can travel.
The past performance, the platform and the campaign speeches
of the opposition party show clearly what they propose. They
show one road.
They propose cutting taxes regardless of the amount of the
government's income. At the same time they propose new government
spending programs costing many additional billions of dollars.
This is the policy of deliberate inflation and must result in a
return to a budget unbalanced by several billion dollars with
all of the inflationary pressures that would create.
They profess concern about inflation. At the same time
they attack all the things which are our best defense against
inflation.
They present a glaring contradiction. They cannot be for
the principle of sound money and all that it means to continuing
prosperity while they are against the things which make sound
money possible.
. The record of their past and their promises for the future
are filled with concessions to the easy way which will destroy
continuing prosperity.
The program of the Eisenhower Administration is exactly
opposite. I am proud to put that record before you. It shows
the other road.
The evidence of our present high prosperity is abundant
wherever we turn.

107
- 8We have record high employment — more than 66 million
people working at good jobs.
We have record high wages.
We have production of goods and services exceeding all
previous records.
And we have this high prosperity — in peace — with but
little change in the cost of living during the past four years.
The money of our people during this Administration has stayed
sound, because our government has been doing the things we said
we would do in fiscal and monetary policy to stimulate confidence
and incentive; to keep money sound.
And what of our present promises? We propose to continue
those things which have worked so well In the recent past.
We propose to continue to spend only so much as is required
for security and necessary services to the public.
We propose to keep our budget in balance.
We propose to cut taxes -- not out of borrowed money which
is inflationary and only a means of passing our debts on to
our children — but whenever our budget surplus permits, when
we can look ahead and see a government surplus of income over
spending large enough to pay for a tax cut which can be spread
fairly among all our people.
The record shows that the policies we have followed for
nearly four years have been successful. We propose to continue
them for the good of every American — to have true prosperity
with peace and with freedom.

oOo

11 y
l

Inspector Russell Daniel, a career officer, will be the
new Assistant Chief of the United States Secret Service, Chief
U. E. Baughman announced today.

He succeeds Carl Dickson, who

is retiring. JQie appointment is effective November 1.
Mr. Daniel was first employed by the Secret Service in
October 1929* as a stenographer in the Kansas City/ Missouri,
field office of the service.

In 1932 he was made an agent.

During his career he has investigated many major counterfeiting
and government check and bond forgery cases, including several
in which he went undercover and became an ostensible member of
criminal gangs to obtain evidence leading to arrests and
convictions.

Prior to his promotion to Inspector in 1950, he

served as Special Agent in Charge of the Omaha, St. Paul and
Washington field offices.
In 1943, Mr. Daniel enlisted in the Army, and as a
paratrooper with the famed 82nd Airborne Division he participated
in the Normandy invasion, the Battle of the Bulge and three
other major European campaigns.
Mr. Daniel was born in Lancaster, Missouri, on November 28,
1906.

He is married and has one son, James Michael, a student

at the University of Virginia.
Alexandria.

The family's home is in

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Monday, October 8, 1956.

H-llol

Inspector Russell Daniel, a career officer, will be
the new Assistant Chief of the United States Secret
Service, Chief U. E. Baughman announced today. He succeeds
Carl Dickson, who is retiring. The appointment is effective
November 1.
Mr. Daniel, a native of Lancaster, Mo., was first
employed by the Secret Service in October 1929, as a
stenographer in the Kansas City, Missouri, field office
of the service. In 1932 he was made an agent. During
his career he has investigated many major counterfeiting
and government check and bond forgery cases, including
several in which he went undercover and became an
ostensible member of criminal gangs to obtain evidence
leading to arrests and convictions. Prior to his promotion to Inspector in 1950, he served as Special Agent
in Charge of the Omaha, St. Paul and Washington field
offices.
In 1943, Mr. Daniel enlisted in the Army, and as a
paratrooper with the famed 82nd Airborne Division he
participated in the Normandy invasion, the Battle of the
Bulge and three other major European campaigns.
Mr. Daniel was born in Lancaster, Missouri, on
November 28, 1906. He is married and has one son,
James Michael, a student at the University of Virginia.
The family's home is in Alexandria.

0O0

110
RELEASE HORNING NEWSPAPERS,
Tuesday, October 9, 1956,

The Treasury Department announced last evening that the tenders for $l,600,000,Oty
or thereabouts, of 91-day Treasury bills to be dated October 11, 1956, and to mature
January 10, 1957, which were offered on October k9 were opened at the Federal Resern
Banks on October 8.
The details of this issue are as follows i
Total applied for - $2,437,1*32,000
Total accepted
- 1,600,172,000

Average price

(includes $312,557,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
- 99.238/ Equivalent rate of discount approx. 3.013* per anaui

Range of accepted competitive bids: (Excepting seven tenders totaling $1,110,000
High - 99.250 Equivalent rate of discount approx. 2.967* per anmsj
la*

99.230

3.046*

•

(53 percent of the amount bid for at the low price was ecoepted)

Federal Reserve
District

Total
Applied for

Total
Accepted

Boston
lew Xork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Bellas
San Francisco

TOTAL

W'h

Ul,451,000
1,724,722,000
32,631,000
64,166,000
18,554,000
53,440,000
253.889,000
44,813,000
16,438,000
48,822,000
34,925,000
103,581,000

$2,437,432,000

31,451,000
980,605,000
17,631,000
64,166,000
16,554,000
52,311,000
195,919,000
44,790,000
16,438,000
47,412,000
31,925,000
100.970,000

$1,600,172,000

•

TREASURY DEPARTMENT
WASHINGTON. D.C
ELEASE MORNING NEWSPAPERS,
'uesday, October 9, 1956,

H-1182

The Treasury Department announced last evening that the tenders for $1,600,000,000,

,r thereabouts, of 91-day Treasury bills to be dated October 11, 1956,
January 10, 1957, which were offered on October 4, were opened at the
Banks on October 8.
The details of this issue are as follows?
Total applied for - $2,437,432,000 ^
Total accepted
- 1 600 172 000 (includes $312,557,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
Average price
- 99.238/ Equivalent rate of discount approx. 3-013? per annum
Range of accepted competitive bids: (Excepting seven tenders totaling
High

- 99.250 Equivalent rate of discount approx. 2.967% per annum
B
Low
- 99.230
«
«
"
* 3-0^ "
(53 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
$ 4i,45i,ooo
1,724,722,000
32,631,000
64,166,000
18,554,000
53,440,000
253,889,000
44,813,000
16,438,000
48,822,000
34,925,000
$2,437,432,000
103*581,000

Total
Accepted
31,451,000
$
980,605,000
17,631,000
64,166,000
16,554,000
52,311,000
195,919,000
44,790,ooo
16,438,000
47,412,000
31,925,000
$1,600,172,000
100.970,000

- 3 -

.*o
or by any local taxing authority. For purposes of taxation the amount of discount
at which Treasury bills are originally sold by the United States is considered to
be interest. Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of
1954 the amount of discount at which bills issued hereunder are sold is not
considered to accrue until such bills are sold, redeemed or otherwise disposed of,
and such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between the price paid
for such bills, whether on original issue or on subsequent purchase, and the
amount actually received either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 4l8, Revised, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue. Copies
of the circular may be obtained from any Federal Reserve Bank or Branch.

- 2 -

team ] 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 18, 1956 , in cash or other immediately available funds
Hm
or in a like face amount of Treasury bills maturing October 18, 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 princip*
or interest thereof by any State, or any of the possessions of the United States,

4
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Wednesday, October 10, 1956

//-//f3

253x5
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 18, 1956 , in the amount of
$1,600,597,000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated October 18, 1956 , and will mature January 17, 1957

when the face

amount will be payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o!clock p.m., Easterr/xSfcaadaod time, Monday, October 15, 1956

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

TREASURY DEPARTMENT

l15
xrrxzxi'.xr-JZT?

WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS,
Wednesday, October 10, 1956.

H-1183

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 18, 1956,
in the amount of $1,600,397,000 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 18, 1956,
and will mature January 17, 1957,
when the face amount will be
payable without interest. They will be issued in bearer form only,
and in denomination of $1,000,,$5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders Will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Daylight
Saving time, Monday, October 15, 1956.
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 oi
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenaers
In whole or In part, and his action in any such respect shall be
final. Subject to these reservations, non-competitive tenders lor
$200,000 or less without stated price from any one bidder will b e
accepted in full at the average price (in three decimals) ol accepted

- 2 competitive bids. Settlement for accepted tenders-In accordance
with the bids must be made or completed at the Federal Reserve Bank
on October 18, 1956, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing October 18, 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 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.
oOo

STATUTORY DEBT LIMITATION
AS OF Sejpt ember JO,..1956

11£
^Xv"
Washington, . O c t o b e r i t l l ; ;

Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under authority
of that Act, and the face amount of obligations guaranteed as to principal and interest by the United States (except such guaranteed obligations as may be held by the Secretary of the Treasury), "shall not exceed in the aggregate $275,000,000,000
(Act of June 26, 1946; U.S.O, title 31, sec. 757b), outstanding at any one time. For purposes ofthis section the current redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holder
shall be considered as its face amount." The Act of July 9, 1956,(PoLo 678 84th Congress) provides that during the period
beginning on July 1, 1956, and ending on June 30, 1957, the above limitation ($275,000,000,000) ahall be temporarily increased
by $3,000,000,000.
T h e following table shows the face amount of obligations outstanding and the face amount which can still be issued under
this limitation:
Total face amount that may be outstanding at any one time
«p270»000,000f000
OutstandingObligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills $20,806,659.000
Certificates of indebtedness
Treasury notes
BondsTreasury
* Savings (current redemp. value)
Depositary.
Investment series .„
Special FundsCertificates of indebtedness
Treasury notes.
Total interest-bearing
Matured, interest-ceased
Bearing no interest:
United States Savings Stamps
Excess profits tax refund bonds
Special notes of the United States:
Internat'l Monetary Fund series
Total

1 9 » 5 ? 3 » 3 0 9 .000
35.l68.68l.000

$ 75.498,6*9,000

80,843,034,650
57»2/2,700,353
300,022,000
11.862.446.000

150,278,2031003

35»^15»179»000
10.4l8,48l,400

45.833.660,400
2 7 1 , 6 1 0 ,512»*K)3
*wO»759t530

*IY , 1 8 6 , 3 3 2
977.358
1.666.000.000

I»7l4.l63.690
273.801,43516?3

Guaranteed obligations (not held by Treasury):
Interest-bearing:
84,113,200
Debentures: F.H.A.
.—
910,075
Matured, interest-ceased
v
Grand total outstanding
„
Balance face amount of obligations issuable under above authority

85.023,275

Reconcilement with Statement of the Public Debt ..?.&1®$.?£...3.9.!....J?5.$.
(Data)
(Daily Statement of the United States Treasury
?.SR*^l?*£...?§.!...i25$.
(Date)
Outstanding
Total gross public debt
,
Guaranteed obligations not owned by the Treasury.
Total gross public debt and guaranteed obligations.
Deduct - other outstanding public debt obligations not subject to debt limitation

H-1184

273.886.458.891
4.113.541,102

$274,260,859,586
85,023^Z1
274,3*5.882,861
4^9.423.961
273.886.458,898

STATUTORY DEBT LIMITATION
AS O F . ^ i ^ ^ J O , . . 1956
Washington, .Octobertll,#1956

. . , . - ,
,,
.
option or the holder
ill be considered as its face amount. T h e Act of July 9, 1956,(PoL„ 6 7 8 84th Congress) provides that during the period
ginning on July 1, 1956, and ending on June 30, 1957, the above limitation ($275,000,000,000) ahall be temporarily increased
7
43,000,000,000.
7 ic following table s h o w s the face amount of obligations outstanding and the face amount which c a n atili be issued under
H limitation:
cat fnce amount that m a y be outstanding at any one time

$278,000,000,000

utstnndingObligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills ,......,...„
Certificates of indebtedness
Treasury notes

$20,806,659,000
19.523.309.000
35.168,681,000

$ 75.^98,6^9,000

BondsTreasury

* Savings (current redemp. value)........
Depositary.

...,..,

Investment series .

Special FundsCertificates of indebtedness
Treasury notes,

....,..„

80,843,034,650
57.272,700,353
300,022,000
11.862,446.000
35.415.179.000
10,418,481,400

150,278,203.003
45,833,660,400
271,610,512,403
476,759.530

Total interest-bearing
Matured, interest-ceased

-..,

Bearing no interest:

4?,186,332
977.358

United States Savings Stomps
Excess profits tax refund bonds ......
Special notes of the United States:
Internat'l Monetary Fund series..,..,,

1.666.000,000

I,7l4tl63t690
273.801,435.623

Total
Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A

Matured, interest-ceased

,.v

84,113,200
910,075

85.023.27g
273?886?458y8?8
4,113,541,102

Grand total outstanding ,„
la la nee face amount of obligations issuable under above authority
Reconcilement with Statement of the Public Debt..?*£*S?!!?$L3.9.!...;?55£.
(Data)
(Daily Statement of the United States Treasury,
..
itstandingTotal gross public debt
,
Guaranteed obligations not owned by the Treasury.

?.5R5.S5?£...?§.f...i.?5S.
(Data)
,
„

„..„...

Total gross public debt and guaranteed obligations..
duct • other outstanding public debt obligations not subject to debt limitation

H-llb4

„,

$274,260,859,586
81,023^271
274,345.882,861
459»423i?t>3
273,886,458,898

IMMEDIATE RELEASE,
T h u r s d a y . October 1 1 , 195o.

TREASURY DEPARTMENT
Washington

•? o.jH-1185

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 September 29, 1956, inclusive, as follows:

tlfait 1
Commodity

~—

of
: Imports as of
Quantity: Sept. 29. 19ff

Tariff-Rate Quotas:
Cream, fresh or sour

Calendar Year

1,500,000

Gallon

Whole milk, fresh or sour

Calendar Tear

3,000,000

Gallon
1,836

200,000

Head
l*,68l

Cattle, less than 200 lbs. each. 12 mos. from
April 1, 1956
Cattle, 700 lbs. or more each .. July 1, 1956 (other than dairy cows)
Sept. 30, 1956
Fish, fresh or frozen, filleted,
etc., cod, haddock, hake,
pollock, cusk, and rosefish ..• Calendar Tear

120,000

35,196,575

60S

Head
11,105

(1]
Pound

Quota Filled

April 16, 1956
Dec. 31, 1956

28,757,393

Pound 20,745,9to

White or Irish potatoes:
Certified Seed
Other

12 mos. from
Sept. 15, 1956

150,000,000
60,000,000

Pound
Pound

Walnuts ••

Calendar Year

5,000,000

Pound Quota Filled

Alsike clover seed

12 mos* from
July 1, 1956

2,500,000

Pound 15,0$

Peanut Oil

12 mos. from
July 1, 1956

80,000,000

Pound

Peanuts, whether shelled, not
shelled, bLanched, salted, prepared, or preserved (including
12 mos. from
roasted peanuts, but not
Aug.
1, 1956
including peanut butter)

1,709,000

Pound

Quota Filled

182,280,000
3,720,000

Pound
Pound

182,198,1214

Tuna fish

45,803

Absolute Quotas:

Rye, rye flour, and rye meal .. 12 mos. from
July 1, 1956
Canada
Other Countries

(2)

(1) Imports for consumption at the quota rate are limited to 26,397,432 pounds
during the first nine months of the calendar year.
(2) Imports through October 9, 1956.

MEDIATE R E L E A S E ,
^ursday, O c t o b e r 1 1 , 1950_«

1 C

TREASURY DEPARTMENT
Washington

H-1185

Commodity

Period and Quantity

Unit I
™
of
sImports as of
Quantity;Sept. 29. 1956.

Tariff-Rate Quotas:
Cream, fresh or sour ... . . e a s t .

Calendar Tear

1,500,000

Gallon

Whole milk, fresh or sour

Calendar Tear

3,000,000

Gallon

200,000

Head

4,681

Head

11,105

Cattle, less than 200 lbs. each.12 mos. from
April 1, 1956
Cattle, 700 lbs. or more each .. July 1, 1956 (other than dairy cows)
Sept. 30, 1956
Fish, fresh or frozen, filleted,
etc., cod, haddock, hake,
pollock, cusk, and rosefish ... Calendar Tear

120,000

35,196,575

Tuna fish April 16, 1956 - 28,757,393
Dec. 31, 1956
White or Irish potatoes:
Certified Seed
Other

12 mos. from
Sept. 15, 1956

1?0,000,000
60,000,000

Pound

Quota Filled

Pound

20,745,9140

Pound
Pound

45,803

Walnuts Calendar Year 5,000,000

Pound

Alsike clover seed 12 mos. from 2,500,000
July 1, 1956

Pound

Quota Filled

15,059

Peanut Oil 12 mos. from
July 1, 1956

80,000,000

Pound

Peanuts, whether shelled, not
shelled, bLanched, salted, prepared, or preserved (including
roasted peanuts, but not
12 mos. from
including peanut butter)
Aug. 1, 1956

1,709,000

Pound

Quota Filled

182,280,000
3,720,000

Pound
Pound

182,198,124

Absolute Quotas:

Rye, rye flour, and rye meal .. 12 mos. from
July 1, 1956
Canada
Other Countries

(1) Imports for consumption at the quota rate are limited to 26,397,432 pounds
during the first nine months of the calendar year.
(2) Imports through October 9, 1956.

(2)

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE, fi
Thursday, October lis 1?3°*

i oft
ic*y
H-1186

The Bureau of Customs announced today the following preliminary
figures showing the imports for consumption from January 1, 1956, to
September 29, 1956, inclusive, of commodities for which quotas were
established pursuant to the Philippine Trade Agreement Revision Act of
1955:

Commodity

:
: Unit
:
: Established Annual :
of
: Imports as of
. ^^^ Quantity
: Quantity : Sept. 29, 1956

Buttons

807,500

Gross

529,964

Cigars 190,000,000 Number 2,879,035
Coconut Oil 425,600,000 Pound 131,44L,768
Cordage 6,000,000 Pound 3,457,065
(Refined 14,999,700
Sugars
(Unrefined

1,904,000,000

Tobacco 6,175,000 Pound 3,225,960

Pound
1,750,084,184

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE, .
Thursday, October 11. 195Q*

12l

H-1186

: Established Annual : of : Imports as of
Commodity
. Q U o t a Quantity
Buttons

807,500

: Quantity : Sept. 29, 1956
Gross

529,964

Cigars 190,000,000 Number 2,879,035
Coconut Oil 425,600,000 Pound 131,441,768
Cordage 6,000,000 Pound 3,457,065
(Refined 14,999,700
Sugars
(Unrefined

1,904,000,000

Tobacco 6,175,000 Pound 3,225,960

Pound
1,750,084,184

-*2—
YmA-

COTTON WASTES
(In pounds)

ro
ro

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

Country of Origin
United Kingdom
Canada . . . .
France . . . .
British India ,
Netherlands • «
Switzerland • <
Belgium . . . «
J apan

. o . «t

China . . • • «
Egypt . • . . «
Uuoa o . . • <
Germany . • . «
l"oaJ.y o o e a

Established
TOTAL QUOTA
4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21t263
5,482,509

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

Total Imports
Sept. 20, 1956, to
Oct. 9, 1956

Established 2
Imports
33-1/3* of : Sept. 20, 1956
Total Quota : to Oct. 9, 1956
1,441,152

239,690
75,807
22,747
14,796
12,853

22,775

25,443
7,088

22,775

262,465

1,599,886

22,775

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Thursday, October 11, 1956.

H-1187

\rnmX

Established Quota

Imports

Country of Origin

Honduras
Egypt and the AngloParaguay
783,816
Egyptian Sudan . . ,
Colombia
247,952
Peru
. . .
38,461
Iraq
2,003,483
British India . . . .
British
East Africa . .
1,370,791
China
8,883,259
Netherlands E. Indies.
8,883,259
Mexico
600,000
Barbados
618,723
Brazil
,
l/0ther British W. Indies
Union of Soviet
475,124
Nigeria
Socialist Republics
5,203
2/0ther British W. Africa
Argentina
237
^2/Other French Africa . .
Haiti
9,333
Algeria and Tunisia •
Ecuador
1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
2f Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less than 3/4"
Imports Sept. 20. 1956, to Sept. 29, 1956
Established Quota (Global)
70,000,000

Imports

Established Quota

Imports

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

Cotton 1-1/8" or more hirkykBnnndmamDdBd±^3i^
Imports Aug. 1, 1956,., to Sept. 29, 1956. incl«
Established Quota (Global)
45,656,420

Imports
2,471,258

IMMEDIATE RELEASE.
Thursday, October 11, 1956.

H-11&7

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, 1956, to October 9, 1956
Country of Origin. Established Quota Imports Country of Origin Established Quota Import
Egypt and the Anglo- Honduras • 752 Egyptian Sudan , . .
783,816
Peru
247,952
British India . . . . .
2,003,483
China
1,370,791
Mexico
...
8,883,259
Brazil . . .
618,723
Union of Soviet
Socialist Republics .
475,124
Argentina . . . . . . .
5,203
Haiti
237
Ecuador . . . . . . . .
9,333

38,461
8,883,259
600,000
-

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

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

if Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
2/ Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less than 3/4" Cotton 1-1/8" or more tekxJsssayWmirxjgddq^JS^
Imports Sept. 20, 1956, to Sept. 29, 1956
Imports Aug, 1, 1956, to Sept. 29, 1956, incl.
Established Quota (Global) Imports Established Quota (Global) Imports
70,000,000 45,656,420 2,471,258

mmZ-

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

Country of Origin
United Kingdom .
Canada
France . . . . .
British India ,
Netherlands
Switzerland
Belgium . .
Japan • • •
China • * •
Egypt o • .
Cuba o . • ,

Germany . .
Italy o • .

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

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

Total Imports
Sept. 20, 1956, to
Oct. 9, 1956

Established 2
Imports
33-1/3? of 1 Sept, 20, 1956
Total Quota ; to Oct. 9, 1956
1,441,152

239,690
75,807
22,747
14,796
12,853

22,775

25,443
7,088

22,775

262,465

1,599,886

22,775

-* i_ ^

\yj/yi

RELEASE HORNING NEWSPAPERS,
Thursday, October U , 1956.

the Treasury Department announced last evening that the tenders for $1,600,000 0
or thereabouts, of 91-day Treasury bills to be dated October 17, 1956, and to nature
January 16, 1957, which were offered on October 8, vers opened at the Federal Resem
Banks on October 10*
The details of this issue are as follows:
Total applied for - 14,759,044,000
Total accepted
- 1,600,7*8,000

(Includes 1421,914,000 entered on a
noncompetitive basis and accepted in
toll at ths average price shown btlov)
Average price
- 99-336 Equivalent rate of discount approx. 2.62?$ per anma
Range of accepted competitive bids: (Excepting three tenders totaling $lf200,00(
High
Low

- 99.385 Equivalent rate of discount approx. 2*433? per mxam
- 99.321
•
«
«
«
«
2,686? •
»
(32 percent of the amount bid for at the low price was accepted

Federal Reserve
District

Total
Applied for

Total
Accented

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

I 220,01*0,000
2,2li5,l456,000
171,096,000
2*3,675,000
152,285,000
l60,70ii,000
682,156,000
Ut2,382*,OGO
101,71*5,000
113,017,000
153,521,000
322,965.000

$l4,759,0kM0Q

$1,600,768,000

TOTAL

150,100,000
5k3,6l9,000
75,866,000
96,935,000
73,lUi,000
88,49U,OO0
205,086,000
53,736,000

S5,u5,ooo

£ o 58,127,000
100,021,000
110,555,000

12S
TREASURY DEPARTMENT
mm»mmmmmtmmMmmmaaK9mBamm9mmmmmmmm9m9mmmmmmmmmm9mm99mm9.m9ammmmm

WASHINGTON, D.C
frEASS KORHIKG NEWSFAFERS,
^ g d a y ^ October II, 1956.

Hal

The Treasury Department announced last evening that the tenders for $1,600,000,000,
p thereabouts, of 91-day Treasury bills to be dated October 17, 1956, and to mature
&nuary 16, 1957, which were offered on October 8, were opened at the Federal Reserve
ante on October 10.
The details of this issue are as follows?
Total applied for - $i,75°,OiiU,000
Total accepted
- 1,600,768,000

Average price

(includes JU21,9lU,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
- 99«336 Equivalent rate of discount approx. 2.627% per annum

Range of accepted competitive bids? (Excepting three tenders totaling $1,200,000)
High - 99=385 Equivalent rate of discount approx. 2«U33£ per annum
Low
- 99.321
*
«
n
n
n
2,686$ »

(32 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
r-illas

Sdri .lYfiVf.iSCO

TOTAL

220,0li0,000
2,2it5,u56,000
171,096,000
293,675,000
152,285,000
160,70U,000
682,156,000
li£,38a,000
101,71*5,000
113,017,000
153,521,000
322,965,000

4U*,759,OUi,000

150,100,000
513,619,000
75,866,000
96,935,000
73,llU,000
88,h9i;,000
205,086,000
53,736,000
US,115,000
58,127,000
100,021,000

n o ,,555; ooo
$1,600,768,000

•*- Cm. |

IEUBASE mmim iaBwsPA?ms,
Tuesday, October 16, 19g6»

/ I /

The Treasury Department announced lent evening that the tenders for $1,600,000^
or thereabouts, of 91-day treasury bills to be dated October 18, 1956, and to mature
January 17, 1957, which were offered on October 10, were opened at the Federal Itstnl
Banks on October 15.
The details of this issue are as follows i
Total applied for - 12,572,620,000
Total accepted
* 1,601,284,000

(includes #319,200,000 entered on a
noncompetitive basis and accepted in
full at the average price shown bslcw)
Average price
- 99*235/ Equivalent rate of discount approx. 3*02b£ per aomii
Bangs of accepted competitive bids: (Excepting two tenders totaling $$25,000)
High - 99*242 Equivalent rate of discount approx* 2.999* per annul
Low
- 99.234
*
« •
«
•

3.0105* •

(9k percent of the amount bid for at the low price was accepted)
Federal Reserve
District

Total
Applied for

Total
Accepted

Boston
$£sw Tork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

$ 33,572,000
1,847,U12,000
34,203,000
84,318,000
17,250,000
33,772,000
255,439,000
49,963,000
14,898,000
47,983,000
36,584,000
117,226*000

12,572,620,000

$1,601,284,000

Total

20,032,000
1,096,003,000
15,291,000
81,916,000
16,823,000
24,676,000
152,063,000
38,230,000
14,248,000
36,003,000
27,634,000
78,163,000

•

TREASURY

DEPARTMENT

<MK*-A. rkSmiiWfOg^^aSmmmmWmmZ-m^'JSXimm^^

'" « H — « •

WASHINGTON. D.C
RELEASE MORNING NEWSPAPERS,
Tuesday, October 16, 1956.

H-1189

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 18, 1956, and to mature
J
January 17, 1957, which were offered on October 10, were opened at the Federal Reserve
Banks on October 15*
The details of this issue are as follows?
Total applied for - $2,572,620,000
Total accepted
- 1,601,284,000

Average price

(includes $319,200,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
- 99*235/ Equivalent rate of discount approx. 3*024$ P^r annum

Range of accepted competitive bids* (Excepting two tenders totaling $525,000)
High - 99.242 Equivalent rate of discount approx, 2.999% per annum
tt
,f
n
w
Low
- 99*234
"
3.030?

(94 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District
Applied for
Boston $ 33,572,000 $ 20,032,000
New Tork
1,847,412,000
Philadelphia
34,203,000
Cleveland
84,318,000
Richmond
17,250,000
Atlanta
33,772,000
Chicago
255,439,000
St. Louis
49,963,000
Minneapolis
14,898,000
Kansas City
47,983,000
Dallas
36,584,000
San Francisco
117,226,000
Total $2,572,620,000 $1,601,284,000

Accepted
1,096,003,000
15,291,000
81,918,000
16,823,000
24,876,000
152,063,000
38,230,000
14,248,000
36,003,000
27,634,000
78,163,000

October 2, 1956
10Q
•'• L

SHagQRANDUM TO 1 « maSTDT U

MOORE

The following transactions were made In direct and guaranteed
securities of the Government for treasury investments and other accounts
during the month of September, 1956t
Purchases $16,602,000.00
Sale* 8,164,650 >00
•8,437,350*00
i i, i r i

. i " n -"vi l v.f

in'IK,

; (Sgd) Charles I. Braanan
Chief, Investments Branch
Division of Deposits & InvestneBtt

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Friday, Oiplumbur 14, 1956?

A-//y °
During M*9mmt 1956, 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 fflj/lfflflj flflQ.

0O0

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Monday, October 15, 1956,

H-1190

During September 1955, market transactions
in direct and guaranteed securities of the
government for Treasury investment and otheraccounts resulted in net purchases by the
Treasury Department of $8,437,350.

oOo

-3-

or by any local taxing authority. For purposes of taxation the amount of discount
at which Treasury bills are originally sold by the United States is considered to
be interest. Under Sections

1I5JJ

(b) and 1221 (5) of the Internal Revenue Code of

195U the amount of discount at which bills issued hereunder are sold is not
considered to accrue until such bills are sold, redeemed or otherwise disposed of
and such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between the price paid
for such bills, whether on original issue or on subsequent purchase, and the
amount actually received either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 4l8, Revised, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue. Copies
of the circular may be obtained from any Federal Reserve Bank or Branch*

133
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 25. 1Q56 , in cash or other immediately available funds
or in a like face amount of Treasury bills maturing October 25 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 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 princip*
or interest thereof by any State, or any of the possessions of the United States,

134

mm
TREASURY DEPARTMENT
Washington

/-/-// ii

FOR RELEASE, MORNING NEWSPAPERS,
Thursday.» Qclffigr l8.» 1956 •
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 25, 1956 , in the amount of
$ 1,599*816,000 , to be issued on a discount basis under competitive and non-

—igr—
competitive bidding as hereinafter provided. The bills of this series will be
dated October 25, 1956 , and will mature January 2k, 1957 , when the face
amount will be payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
•
closing hour, two o!clock p.m., Eastern/SfcaHriaxst time, Monday, October 22, 1956 _•

282
Tenders will not be received at the Treasury Department, Washington.

Each tender

must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99*92$. Fractions may not be used. It is urged that tenders
be made on the printed forms and forwarded in the special envelopes which will be
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized dealers
in investment securities. Tenders from others must be accompanied by payment of

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Thursday, October 18, 1956.

H-1191

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 25, 1956,
in the amount of $1,599,816,000, 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 25, 1956,
and will mature January 24, 1,957,
when the face amount will be
payable without interest. They will be issued in bearer form only,
and in denomination of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Daylight
Saving time, Monday, October 22, 1956.
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

m, 2

competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Ban!
on October 25, 1956, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing October 25, 195
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, 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 Branch.
0O0

X *yy->

- 5 Or does the banker screen his loans with care, trying to see that every
sound and essential requirement for credit is met but that more speculative
and less desirable requests are postponed or reduced? And does he explain
the real reasons for restraint in lending in the interest of the borrower?
I believe the evidence is conclusive that the banks of the country have
generally been following wise policies. The recent survey of the American
Bankers Association of 78 representative banks shows that loans to small
business are 14 percent higher than a year ago. This and other evidence from
many localities indicates that the essential needs of sound borrowers are being
met - but with proper discrimination.
The action which you, as bankers, and we, in Government, take at this time
has a weighty impact on human welfare of tomorrow. "What all of us do today
will determine whether the pattern of our economy shall be that of "boom and bust1
or whether we shall continue our high prosperity and dynamic growth without
serious interruption.
The way you deal with your customers at this critical time will affect
the public reputation of banking more than any advertising campaign.
Our joint ability to recognize and explain Federal Reserve policies will
influence public opinion of the Reserve System and of sound money policies.
If we should lay all the blame for loan rejections on the Federal Reserve System,
we might undermine its independence and invite political reprisals. Most of
us here today value highly the contribution of the Federal Reserve System to
sound money, and we must not take it for granted.
Without question, we have today — all of us working together — a great
opportunity. The country is enjoying remarkable prosperity and vigorous growth.
T7ith wisdom, understanding, cooperation, and courage, that prosperity and growth
can be carried far into the future.

- i, _

137

2) We have reduced taxes, leaving more money in the hands of the
taxpayers•
3) We have assured to the Federal Reserve System its freedom to
exercise independent judgment in its monetary policies. The
System, in turn, has allowed the relation between the supply and
the demand for funds to express itself in interest rates.
Protected by these policies, we have had remarkable price stability.
Confidence is high and savings are growing. These fundamental steps take time
to work, but we think they are working.
But the banks of the country also have a responsibility for preserving
the value of the American dollar. They are at the crucial point of impact
with the individual borrower. For national policy only becomes truly effective when the bank officer sits down with the borrower and discusses specific
loan problems.
With the present demand for money running beyond the accumulation of
savings, the banks have to be selective in their loans.
Fortunately, in this country, the Government does not try to dictate to
the banks just what kinds of loans they can make or not make. That rests in
the judgment of the individual banker. The banker thus assumes stewardship
in administering the national policy. The critical question in banking today
is how the banks carry out this stewardship. Do they freeze up at some point
and make no more loans? Do they, as I have heard suggested in some cases,
say to the borrower, "Bill, I would like to take care of you, but we are fresh
out of money because of Federal Reserve policy."?

- 3-

1 ^Q
i *y y

But all the money we are saving, as individuals and business, is not
enough to pay for all the things we Americans would like to have and to do.
That is fundamentally the reason why we are short of money and interest rates
have risen.
Because of these huge demands, money for investment is being drawn from
the banks as well as from savings. Bank loans to business have risen by leaps
and bounds to all-time highs, with the seasonal peak still ahead. More people
are borrowing more money than ever before, but they want still more.
In such a situation, everybody who wants money simply can't have as much
as he wants. If the Government tried to provide it through the Federal Reserve
System, that would be straight inflation.
If we are to keep our prosperity and continue evenly our dynamic growth
without inflation and without "boom and bust," we must, as a nation, follow
policies directed toward two objectives.
First, to restrain or postpone some of the less essential uses
of money, and,
Second, to encourage more saving.
These policies are a joint responsibility of the Government, of business
and banking. We are all in the same boat. Tfe don't want "boom and bust;"
we do want to continue our fine prosperity.
Here is what the Government is doing:
1) We have brought the Federal budget into balance and started to
reduce the public debt. You can't have stable money if
Government deficit spending is feeding the fires of inflation.

139
In recent months, this issue has attracted much public attention. The
Government is being criticized for allowing, in nearly four years, a 2-1/2
percent increase in the cost of living.

The same critics are, at the same

time, attacking the steps taken by the Government to preserve the value of
the dollar and keep prices stable*

Under the previous Administration, which

did not take effective steps to preserve the value of the dollar, the cost of
living rose 92 percent and the value of the 1939 dollar was cut to 52 cents*
About half of this loss was after the conclusion of World War lie
Thus, there has been inflation, and the threat continues. This threat
is not solely a domestic issue*

It is a world-wide problem. Everywhere

recognition grows of the wicked damage which inflation does to the young and
the old, the pensioner, the saver, the salaried and professional worker,—
and to sound economic growth.
One reason for the inflation danger is that we are now enjoying a great
peacetime prosperity —

the first real peacetime prosperity in this generation*

Month by month, we are making new records in the country's national product
and national income. Our dollar wages and, more important, our real wages
are at new high levels.
With confidence in the future, American business is making unprecedented
investments in factories, machinery, public utilities, etc. Local and state
governments are building roads and schools. In addition, we are building
new homes at a rate of better than a million a year*
Because of our great prosperity, the demand for money is greater than the
amount we are saving. And this in spite of very large savings.

Individuals

are saving about 7 percent of their income, and business is saving and using
for plant development about half of its net income.

REMARKS BY W. RANDOLPH BURGESS, UJDER SECRETARY
OF THE TREASURY, AT THE OPENING SESSION OF THE
82ND ANNUAL CONVENTION OF THE AMERICAN RANKERS
ASSOCIATION, THE PARAMOUNT THEATRE, LOS ANGELES,
CALIFORNIA, TUESDAY MORNING, OCTOBER 23* 1956

140

On behalf of the Treasury, let me acknowledge the great service which
the country's banks have rendered to the Government during the past year
in handling our funds, in helping to sell our security issues, and in
many other ways.
We rely particularly on your voluntary efforts for the sale of Savings
Bonds. About UO million Americans now own more than $4l billion of Series E
and H Savings Bonds, a new all-time high mark. In spite of the increased
competition of other investments at higher rates, sales of these Bonds
this year will exceed $5 billion. Sales of small denomination Bonds are
ahead of last year.
In recognition of the services of the Association and his own personal
leadership, I have pleasure in awarding a Treasury citation to your President,
Fred F. Florence. The citation reads:
"Your leadership in promoting United States Savings Bonds
during your Presidency of the American Bankers Association has
been a notable contribution to the Treasury's program. Your
patriotic service will be long and gratefully remembered*"
Our partnership in the sale of Savings Bonds dramatizes the joint
responsibility of Government and the banks for the preservation of the value
of the United States dollar. In selling these Bonds to millions of people,
we incur an obligation to see that the dollars in which they are finally paid
preserve their buying power©

141
TREASURY DEPARTMENT
Washington
REMARKS BY W. RANDOLPH BURGESS, UNDER
SECRETARY OF THS TREASURY, AT THE
OPENING SESSION OF THE 82ND ANNUAL
CONVENTION OF THE AMERICAN BANKERS
ASSOCIATION, THE PARAMOUNT THEATRE,
LOS ANGELES, CALIFORNIA, TUESDAY
MORNING, OCTOBER 23, 1956
On behalf of the Treasury, let me acknowledge the great service
which the country's banks have rendered to the Government during
the past year in handling our funds, in helping to sell our
security issues, and in many other ways.
We rely particularly on your voluntary efforts for the sale
of Savings Bonds. About 40 million Americans now own more than
$41 billion of Series E and H Savings Bonds, a new all-time high
mark. In spite of the increased competition of other investments
at higher rates, sales of these Bonds this year will exceed
$5 billion. Sales of small denomination Bonds are ahead of last
year.
In recognition of the services of the Association and his own
personal leadership, I have pleasure in awarding a Treasury
citation to your President, Fred F. Florence. The citation reads:
"Your leadership in promoting United States
Savings Bonds during your Presidency of the American
Bankers Association has been a notable contribution
to the Treasury's program. Your patriotic service
will be long and gratefully remembered."
Our partnership in the sale of Savings Bonds dramatizes the
joint responsibility of Government and the banks for the preservation of the value of the United States dollar. In selling
these Bonds to millions of people, we incur an obligation to see
that the dollars in which they are finally paid preserve their
buying power.
In recent months, this issue has attracted much public
attention. The Government is being criticized for allowing, in
nearly four years, a 2-1/2 percent increase in the cost of living.
The same critics are, at the same time, attacking the steps taken
by the Government to preserve the value of the dollar and keep
prices stable. Under the previous Administration, which did not
take effective steps to preserve the value of the dollar, the
cost of living rose 92 percent and the value of the 1939 dollar
was cut to 52 cents. About half of this loss was after the
conclusion of World War II.
H-1192

- 2-

142

Thus, there has been inflation, and the threat continues.
This threat is not solely a domestic issue. It is a world-wide
problem. Everywhere recognition grows of the wicked damage which
inflation does to the young and the old, the pensioner, the saver,
the salaried and professional worker — and to sound economic
growth.
One reason for the inflation danger is that we are now enjoying a great peacetime prosperity — the first real peacetime
prosperity in this generation. Month by month, we are making new
records in the country's national product and national income.
Our dollar wages and, more important, our real wages are at new
high levels.
With confidence in the future, American business is making
unprecedented investments in factories, machinery, public utilities,
etc. Local and state governments are building roads and schools.
In addition, we are building new homes at a rate of better than
a million a year.
Because of our great prosperity, the demand for money is
greater than the amount we are saving. And this In spite of very
large savings. Individuals are saving about 7 percent of their
income, and business is saving and using for plant development
about half of its net income.
But all the money we are saving, as individuals and business,
is not enough to pay for all the things we Americans would like to
have and to do. That is fundamentally the reason why we are short
of money and interest rates have risen.
Because of these huge demands, money for investment is being
drawn from the banks as well as from savings. Bank loans to
business have risen by leaps and bounds to all-time highs, with
the seasonal peak still ahead. More people are borrowing more
money than ever before, but they want still more.
In such a situation, everybody who wants money simply can't
have as much as he wants. If the Government tried to provide it
through the Federal Reserve System, that would be straight
inflation.
If we are to keep our prosperity and continue evenly our
dynamic growth without inflation and without "boom and bust," we
must, as a nation, follow policies directed toward two objectives.
First, to restrain or postpone some of the less essential
uses of money, and,
Second, to encourage more saving.
These policies are a joint responsibility of the Government, of
business and banking. We are all in the same boat. We don't want
"boom and bust;" we do want to continue our fine prosperity.

- 3Here is what the Government is doing:

143
l) We have brought the Federal budget into balance and
^
started to reduce the public debt. You can't have
stable money if Government deficit spending is
feeding the fires of inflation.
2) We have reduced taxes, leaving more money in the hands
of the taxpayers.
3) We have assured to the Federal Reserve System its
freedom to exercise independent judgment in its
monetary policies. The System, in turn, has
allowed the relation between the supply and the
demand for funds to express itself in interest rates.
Protected by these policies, we have had remarkable price
stability. Confidence is high and savings are growing. These
fundamental steps take time to work, but we think they are working.
But the banks of the country also have a responsibility for
preserving the value of the American dollar. They are at the
crucial point of impact with the individual borrower. For national
policy only becomes truly effective when the bank officer sits
down with the borrower and discusses specific loan problems.
With the present demand for money running beyond the
accumulation of savings, the banks have to be selective In their
loans.
Fortunately, in this country, the Government does not try to
dictate to the banks just what kinds of loans they can make or not
make. That rests in the judgment of the individual banker. The
banker thus assumes stewardship in administering the national
policy. The critical question in banking today is how the banks
carry out this stewardship. Do they freeze up at some point and
make no more loans? Do they, as I have heard suggested in some
cases, say to the borrower, "Bill, I would like to take care of
you, but we are fresh out of money because of Federal Reserve
policy."?
Or does the banker screen his loans v/ith care, trying to see
that every sound and essential requirement for credit is met but
that more speculative and less desirable requests are postponed or
reduced? And does he explain the real reasons for restraint in
lending in the interest of the borrower?
I believe the evidence is conclusive that the banks of the
country have generally been following wise policies. The recent
survey of the American Bankers Association of 73 representative
aanks shows that loans to small business are 14 percent higher
than a year ago. This and other evidence from many localities
Lndicates that the essential needs of sound borrowers are being
net -- but with proper discrimination.

144
- 4The action which you, as bankers, and we, in Government, take
at this time has a weighty impact on human welfare of tomorrow.
What all of us do today will determine whether the pattern of our
economy shall be that of "boom and bust" or whether we shall
continue our high prosperity and dynamic growth without serious
interruption.
The way you deal with your customers at this critical time
will affect the public reputation of banking more than any
advertising campaign.
Our joint ability to recognize and explain Federal Reserve
policies will influence public opinion of the Reserve System and
of sound money policies. If we should lay all the blame for loan
rejections on the Federal Reserve System, we might undermine its
independence and invite political reprisals. Most of us here
today value highly the contribution of the Federal Reserve System
to sound money, and we must not take it for granted.
Without question, we have today — all of us working together
a great opportunity. The country is enjoying remarkable prosperity
and vigorous growth. With wisdom, understanding, cooperation, and
courage, that prosperity and growth can be carried far into the
future.

0O0

RELEASE MORNING nTriSfAfSRS,
Tuesday, October 23, 1936.

I /Q

/LJU

45
T

<- "~ j f /-*-*"

The Treasury Department announced last evening that the tenders for $l,6OO,000,0(
or thereabouts, of 91-day Treasury bills to be dated October 2$, 1956, and to matun
January 2lt, 1957, which were offered on October 18, were opened at the Federal Rtstrn
Banks on October 22.
The details of this issue are as follows.
Total applied for - $2,802,560,000
Total accepted
1,600,389,000

(includes i327,88a,000 entered en a
noncompetitive basis and accepted in
full at the average price shown btUsj

Range of accepted competitive bidst
High - 99*267 Equivalent rate of discount approx. 2.900$ per anmn
Low
- 99.261*
»
•
•
•
•

2.912* •

•

Average - 99.265 • • * •» « 2.907* • •
(70 percent of the amount bid for at the low price was accepted)

Federal Reserve
District

Total
applied for

Total
Aeoepted

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

•

TOTAL

kk*

3l*,958,000
2,011,3li7fOOO
1*2,296,000
73,553,000
22,ul8,000
30,966,000
286,025,000
36,367,000
12,878,000
61,0147,000
ill,123,000
11*9.582.000

12,802,560,000

20,388,000
1,035,766,000
20,500,000
38,863,000
21,309,000
20,066,000
211*,220,000
27,532,000
12,189,000
Ui,lOlt,000
31,898,000
U3.2lib.000

#1,600,389,000

1 L\Q

TREASURY DEPARTMENT
WASHINGTON, D.C.
SLEASE MORNING NEWSPAPERS,
lesday, October 23, 1956.

H-1193

The Treasury Department announced last evening that the tenders for $1,600,000,000
r thereabouts, of 91-day Treasury bills to be dated October 25, 1956, and to mature
nraary 2l*, 1957, which were offered on October 18, were opened at the Federal Reserve
inks on October 22.
The details of this issue are as follows:
Total applied for - $2,802,560,000
Total accepted
- 1,600,389,000

(includes $327,881*,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids;
Hi h

S - 99.267 Equivalent rate of discount approx. 2.900$ per annum
Low
- 99.264
"
«
»
«
i»
2.912$ »
Average

- 99.265

««

2.907$

(70 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District

Applied for

Accepted

Boston

$ 34,958,000 $ 20,388,000
Ifv.J0/* .
Philadelphia
Cleveland
Richmond

Atlanta
Chlca

g°
St. Louis
Minneapolis
Kansas City
:allas
San Francisco
TOTAL

2,011,347,000
42,296,000
73,553,000
22,1*18,000
30,966,000
286,025,000
36,367,000
12,878,000
6l,Ol*7,000
41,123,000
149,582,000
$2,802,560,000

1,035,766,000
20,500,000
38,863,000
21,309,000
20,066,000
211*,220,000
27,532,000
12,189,000
44,414,000
31,898,000
113,244,000
$1,600,389,000

-3-

i 47

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

Under Sections 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 -

mitting 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 November 1, 1956 , in cash or other immediately available funds

m
or in a like face amount of Treasury bills maturing
November 1, 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 princij
or interest thereof by any State, or any of the possessions of the United States,

149
mm I I __ I ! 1
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, October 25, 1956

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

m—

in exchange for Treasury bills maturing
November 1. 1956
* i n "the amount of
$ 1,600,820,000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated November 1, 1956 , and will mature January 51, 1957 , 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,/isar o'clock p.m., Eastern Standard time, Monday, October 29. 1956 .«
Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99*92$. Fractions may not be used. It is urged that tenders
be made on the printed forms and forwarded in the special envelopes which will be
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized dealers
in investment securities. Tenders from others must be accompanied by payment of

RELEASE MORNING NEWSPAPERS,
Thursday, October 25, 1956.

H-1194

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 1, 1956,
in the amount of $1,600,820,000, 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 1, 1956,
and will mature January 31, 1957, 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 29, 1956.
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 :n accordance
with the bids must be made or completed at the Federal Reserve Bar
on November 1, 1956,
in cash or other immediately available funds
or in a like face amount of Treasury bills maturing November 1 jc
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 nev
bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, does not hav
any exemption, as such, and loss from the sale or other dispositlo
of Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 1954. The bills are subject
to estate, inheritance, gift or other excise taxes, whether Federa
or State, but are exempt from all taxation now or hereafter impose
on the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States is considered to
be interest. Under Sections 454 (b) and 1221 (5) of the Internal
Revenue Code of 1954 the amount of discount at which bills issued
hereunder are sold is not considered to accrue until such bills
are sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets. Accordingly, the
owner of Treasury bills (other than life insurance companies)
issued hereunder need include in his inpome 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.

oOo

TREASURY DEPARTMENT
Washington
FOR RELEASE A.M. NEWSPAPERS,
Friday, October 26, 1956.

151

H-1195

Remarks by Secretary of the Treasury
George M. Humphrey at the 41st Annual
Meeting of the Associated Industries
of Massachusetts, Hotel Statler,
Boston, Massachusetts, 7 P.M., SDT,
Thursday, October 25, 1956.
ON KEEPING TRUE PROSPERITY
Mr. Hanson, Gentlemen: I am very glad to be in Boston
tonight to meet with so many outstanding leaders of this great
State. Over the years Massachusetts has played a most important
part in the economic progress of our Nation. I know that the
Associated Industries of Massachusetts, which is having its
4lst annual meeting this week, has played a most vital role in
that economic progress.
Mr. Hanson, Mr. Williams, and other officers, have done
splendid work in behalf of the 2,000 concerns representing 85$
of the State's industrial payroll which belong to the Associated
Industries of Massachusetts.
Mr. Hanson has done great work not only for the Treasury
Department, which is my particular interest, but for the public
in general in his present role as Chairman of the Massachusetts
payroll savings committee in our United States Savings Bonds
program. We all owe him a debt of gratitude.
Mr. Williams has given fine service to the Federal Government
as Director of the Office of International Trade Fairs of the
Department of Commerce. He did an outstanding job, as has
already been attested to by the President and Commerce Secretary
Weeks, your fellow Bostonian who is doing such outstanding work
in serving his country in Washington in this Administration.
I want to talk to you tonight about the most important
thing in the world — your own well-being. I want to talk to
you about the very personal meaning to you of the economic
principles that spark the Eisenhower program for making our
economy both richer and freer, not for just a few, but for all
the American people.

- 2-

15
These principles have nourished the tremendous, the sound
growth which the American economy has enjoyed during the past
four years. I want to show you, tonight, and I want to show
you in specific terms, just how this type of economic growth,
which does not depend either on inflation or war, has benefited
each one of you: What it means to a child in kindergarten, to
the youth in school, to young folks just striking out on their
own, to the middle-aged, to the old, and to all of us together,
whatever our age and whatever our economic condition.
Our program is based upon principle, rather than upon
favoritism. It is a program aimed at helping you, each American
individual.
No program has any worth except as it benefits people in
their homes and jobs to work toward a better life. We are
concerned with balanced budgets, sound money and taxes only as
they apply to you. And we are really very deeply concerned
about these things because, and only because, they have so much
to do with your personal welfare.
We can't have high prosperity, abundant jobs at high pay,
high confidence, high spending, and wide general expansion with
cheap, unlimited money and a stable cost of living all at the
same time.
Our problems today are the problems of great prosperity.
They are nonetheless real and difficult and must be courageously
faced if we want to keep true prosperity in America — prosperity
that will continue and stretch forward into the future.
Let me tell you why. And let's start, as AI Smith used to
say, by taking a look at the record.
Let's go back to 1939 — before the last world war — and
come down to today. In the period of about six years, from
1939 through the end of 1945, the year the war ended, the value
of the dollar in goods that it would buy was reduced from
100 cents to 76 cents, a reduction of 24 cents or about one
quarter. During that period interest rates, by deliberate design
were artificially held at low levels.
During the next seven years, from the end of 1945 through
1952, covering the postwar period and prior to the advent of this
Administration, and when we were supposed to be returning to a
peacetime economy the value of the dollar in goods that it
would buy was further reduced from 76 to 52 cents or another
24 cents - - a reduction this time of about one third. And, during
most of that period, by deliberate design, interest rates were
still being held to a low level.
And all that time the cost of living was steadily increasing
until there was a total increase during those 13 years of almost
100 percent in the cost of living while the dollar was cut nearly
in half.

- 3-

153

Since 1952 right up to the present day, almost four years,
the value of the dollar in goods that it will buy has been
reduced from 52.1 to 50.9 or about 1.2 cents. While interest
rates have been allowed to fluctuate naturally, both up and
down, in response to the extent of demand.
The record is all too clear. While we had arbitrarily cheap
and plentiful money the cost of living doubled — the value of the
dollar was cut in half. Whereas with money advancing or
declining more freely in response to the pressure of demand, we
have enjoyed a perfectly remarkable stabilization in the cost of
living and as sound a dollar as this country ever had.
There is talk nowadays of a new record high in the cost
of living but again lets look at the record. From 1939 through
1952, under deliberately inflationary policies there were
30 — yes 30 — separate times when new record highs in the cost
of living were set and the cost of things for living rose from
$1.00 to $1.92. The cost of those same things today is at a
record high of about $1.96-|-. But the real point is that of the
total increase of 96\ cents over the whole period 92 cents came
during 13 years under inflationary policies as compared with
only about 4-| cents in nearly four years under the stabilizing
policies now in effect.
A new record high now, yes, but built up by 92 cents under
deliberate inflation in 13 years and held down to only about
4^ cents by a reversal of policy to stabilization during the
4 years just past.
No more effective demonstration of the difference between
the two policies in their effect upon the lives of the American
people could possibly be made.
Now is there any reason why we should not learn from that
hard experience? If these great good jobs, good pay and good
times are to endure and further sweeping increases in the cost
of living are to be held down?
We are prosperous, and that means we are working very
close to the limits of our manpower and our materials. We
are at peace, so there is no place for wartime controls or
powers to ration work and materials. We are free and we want to
stay free, so we do not want to dictate wages, prices or rents.
We do not want to arbitrarily allocate materials and labor by
government order or decree.
But just because we are prosperous — in peace and in
freedom -- because the public in general has great confidence in
the future, we ail want to buy and expand. The public wants to
earn more and spend more, all at the same time. The demand for
money is unlimited, but the supplies of the things money buys —

154
- 4goods, materials, and the labor, skill and services of people —
are limited. We have neither the necessity of war nor the desire
of dictatorial government to ration those things. That being so,
we must keep the supply of money and credit from growing beyond
the supply of people and materials. That is the only way to
avoid rapidly rising prices and inflation while maintaining
prosperity in company with both peace and freedom.
We don't want to go the "easy" money road, the old
familiar road to inflation. "We don't want to go up only to come
down. We want to let natural corrections and restraints operate
freely.
We are short of capital in this country — that means
savings.
We have been through a period of years when there was little
incentive to save. In the first place, the interest rate was
held down so low that there was very little return. There was
no natural incentive. In the second place, as the value of the
dollar declined and as inflationary pressures took hold, people
were afraid to save a dollar because it was constantly declining
in value. So the lack of incentive resulting from low interest
and the fear of inflation first took away the reason to save and,
then it actually kept people from saving.
Most all Americans are saving something today through
purchase of insurance, payments for pensions, the purchase of
government bonds or in a savings account or in the many other
ways to do so. As interest rates rise all those savers benefit.
But if inflation sets in and the dollar declines they all are
robbed of part of their savings. Inflation is the great thief.
The young, the old, the sick, the small saver, all those least
able to protect themselves, are the helpless prey of wicked
inflation. It must be held in check.
We must create more incentive for more saving, to have more
capital available for expansion. We must have it because we in
our growing country have a million new people every year looking
for new jobs. Unless someone can invest from ten to twenty
thousand dollars apiece for them, they cannot get a job in which
they can earn the kind of wages now being paid In America.
Such wages can only be paid on the basis of high productivity,
the kind of productivity that comes only from skilled workers
using highly productive machines and power. Those machines
and that power cost money. We can only have the plants, the
machinery, the power, the transportation and all the rest that
goes to make up our modern industrial and farm life by saving and
investing. Inflation kills the goose that lays that golden egg.
Without savings and investments you cannot get high
wages.
productivity.
WithoutWithout
high wages
highyou
productivity
cannot have
you
the
cannot
standard
haveof
high
living

1SS
- 5we all want. Inflation stops the whole process. The best known
way to help control it is a flexible price for money, because a
flexible price for money is a governor that operates to hold
down the cost of living and make prosperity last, in peace and in
freedom.
Now, I am not here tonight to make a partisan speech, but
I have spent almost every day of the past four years in thinking
and planning about the Eisenhower fiscal and monetary policies
and I'm sure you will forgive me if I point out some of the
changes in policy that have been made, which point the way to
true prosperity in peace.
The past performance, the platform and the campaign speeches
of our most vocal critics show clearly what they propose. They
show one road.
They propose cutting taxes regardless of the amount of the
government's income. At the same time they propose new government
spending programs costing many additional billions of dollars.
This is the policy of deliberate inflation and must result in a
return to a budget unbalanced by several billion dollars with
all of the inflationary pressures that would create.
They profess concern about inflation. At the same time
they attack all the things which are our best defense against
inflation.
They present a glaring contradiction. They cannot be for
the principle of sound money and all that it means to continuing
prosperity while they are against the things which make sound
money possible.
The program of the Eisenhower Administration is exactly
opposite.
It is based on three cardinal accomplishments in our
economy:
First, we have balanced the Federal budget. That means
that as a nation we now are living within our income. That kind
of common sense is just as necessary to the well-being of a
nation as to the well-being of a family.
Next, we have halted the cruel decay of the dollar, through
inflation, that went on for so many years by deliberate design.
We have enjoyed during the past four years our longest period of
greatest price stability. We have given a sound nation a sound
dollar.
And then we have made the biggest tax cut -- 7i billion
dollars -- in the nation's history.

- 6-

156

Taxes are still too high, and we are looking forward to
the time when they can properly — but not out of borrowed
money — be cut again. You have by no means reached the end
of the tax benefits you will reap from the continuation of this
program.
It includes:
Getting the government out of business, and letting you
get the opportunities;
Inspiring a general confidence by returning the economy
to the capable, ingenious hands of the American people, the
most successful people in the world;
Arriving in turn, at record employment, record wages,
record income, record national output, the biggest economy ever;
The biggest road building program in the nation's history,
and with it a plan to pay for those roads as we build instead
of loading ourselves and our children "with new debt;
Improved social security;
A housing program cleansed of favoritism arid racketeering
and in which all can buy and build the kinds of homes they have
long desired;
Fox^ward looking health and educational proposals;
And the first special agency In the nation's history solely
to look out for the interest of small business.
Now, let us see, even more specifically, just how it applies
to all of us, to all of the 168 million American people.
Let's begin with a child in lower school, just becoming
aware that the world is bigger than the four corners of the
school playground.
He couldn't care less whether the nation's budget is balanced.
As for sound money, it's sound enough for him as long as daddy
has plenty of dimes, because he doesn't know ice cream cones used
to cost only a nickel.
We have millions of our youngsters like this little fellow
in mind. We know that he is part of a huge crop of our
children -- our bigger nation of tomorrow — whose health,
education and welfare must be carefully guarded. We have the
first Cabinet officer and department ever provided for that purpose.
We must provide a favorable climate for the kind of economy
in which basic values are better stabilized. Ice cream cones

157
should not double in price every few years. Neither should the
cost of a home, or an education. Your son should grow up in a
world he can trust. This will help him grow into the kind of
man to whom we can trust the world of the future.
Now what about the young man and young woman, their
education behind them, just getting started in life:
The young farmer, the young businessman, the new wage
earner — perhaps an office girl with her first job, or a young
mechanic — a professional man or woman just out of college, the
new doctor, lawyer, or engineer?
Each of them, and all the millions of their fellow young
Americans at the threshold of their different earning careers,
have a big stake in the continuation of successful efforts to
give them back their traditional individual economic freedoms
and opportunity.
We like young Americans. We believe in them. We are sure
that they do not want, any more than their forefathers wanted, to
be led by apron strings held by their government. We are trying
to provide the economic climate that will give them a big and a
healthy economy, in which they can make the most of their own
God-given energies and talents. We want them to set their sights
high, for we believe they are the builders of a way of life
richer than any we can now imagine.
What does a balanced Federal budget mean to these young
people? It means their government is taking no more from them
in taxes than it must, and is not piling more debt on their
young backs, or on those of their children, to carry.
What dees sound money mean to them? To the young man who
has just opened a hardware store, for instance. Sound money
means he can make his business plans with confidence.
Stable prices will make the young businessman a good, and
a competitive, businessman. He cannot depend on inflation to
let him automatically buy cheap and sell high. He must buy
carefully, and sell competitively, thereby benefiting all of
us. He will learn that he can build up his business with
confidence.
And the young businessman will find that our policy of
getting the government out of competition with him means that
the government is more likely to buy from him, if he is an
efficient producer.
To the office girl, sound money means that she can earn and
save with confidence. Probably like millions of her office
girl colleagues she is v;orkin^"— and saving — with a purpose,
to help at home or perhaps to buy a car, to repay her education,
or to pay for a very special vacation to some place she has longed

158
- 8to visit, or maybe to save enough to furnish her home when she
gets married. Sound money means that she will not find herself
on a treadmill, with inflationary prices rising faster than she
can save. She will get the benefit of her work because she will
be able to forge ahead toward realization of her dreams.
And what about the young farmer? Well, he can begin his
productive career of helping to feed the nation with confidence
that the government at last is doing something positive, to give
the farmer back a real market for his crops instead of a fake
market depressed and threatened by ever-growing surpluses
financed with your tax dollars (including the farmer's own tax
dollar), based on previous laws that were passed more in the
interest of politicians than farmers.
Our wives and mothers are the members of our national economic
partnership who keep us all pulling together. It is their job to
see that the family earnings provide the best possible life for
all members of the family, and at the same time to be sure that
the future is provided for.
We take pride in thinking that our outlook is very muchlike that of the good housewife. We share her objectives. We
have already turned back to the housewives of this nation the
greater part of a 72 billion dollar tax cut, for most of the
benefits of that tax cut accrued to individual taxpayers. We
have balanced the budget, and we are keeping it balanced, so that
still more of the nation's income can be used for the benefit of
families, rather than to perpetuate the too big, and wasteful,
government we found when we came to office.
The housewife can see, daily and weekly, the benefits of
halting inflation. For nearly four years prices have been more
stable than at any time in the past three decades. She has
never had so much money to spend in terms of what it will buy.
This has meant that when the family breadwinner got a pay increase
it was a real pay increase, not just an inflation equalizer.
And sound money means the housewife can save from the
family income with the same confidence as she can spend from it.
Today's housewife can afford to save, and to teach her
children the virtues of thrift.
The man and woman of 50 or so years has lived through an
eventful five decades. When they look back over their earnings
and family raising years, it will not be hard for them to realize
that during the last four years they have come into times of
greater promise than they have ever known before. They can at
last see their tax burden growing less, rather than rising as
in past decades. They can at last see their life's savings
holding their value.

159
- 9They can see their children getting started in life in a
time of peace, with the biggest economy the nation has ever
enjoyed providing the young folks with more and betteropportunities than any generation of Americans ever had before.
And they can look forward to the final years of their own
earning lives in an economy that is not only big but also strong
and growing, with confidence that the skills they have learned are
needed by a country rich and sound enough to pay them a fair
return for those skills.
Just as the Eisenhower economy lays a firm road ahead to
a land of rich opportunity for the child just beginning life and
the young people just starting their careers, while it enlarges
the earning powers and protects the savings and investments of
the middle aged, just so these same simple principles of
prudence, confidence and common sense make room for a better life
for our* older citizens. It has protected their life savings —
the widow's pension or insurance and whatever careful provision
they may have made during their active years for a more
comfortable living during the later years of their lives.
The great tax revision of 1954 made a new, special provision for the retired, by exempting more of their retirement
income from taxation. It also liberalized, especially for the
retired, the deductions for medical care, often a big item among
persons of advanced years. We proposed, and we still back, a
strengthened social security program equitable to all.
These then are specific examples of how the sound principles
encouraged by the Eisenhower programs hold the door of
opportunity wide Open to all, and help each of us, whatever our
age or our occupation.
That, in turn, means more jobs, and better paying jobs,
more income to buy the good things we are producing in ever
greater numbers and of ever better quality. That, in short, is
your personal stake — your personal inheritance, and the
inheritance of us all, as a nation — in tne Eisenhower economy.
It is letting us grow into a nation of people with an ever
growing personal stake in their economy; a nation of people
learning the sound lessons of thrift and confidence from an
economy operating with sound money and a government modeled on the
good housewife's precepts; a nation of people freed from unnecessary restrictions and controls to achieve the best that is
in them, while their government remains watchful to see that
freedom is not used to harm the general welfare; a nation of
people of increasing individual productive capacity and so
able to afford a better standard of living, better national
defense, better government and more private services, while at
the same time paying lower taxes and*avoiding additional national

16u
- 10 debt; a nation of people freed from fear, a nation of people that
can look to its future with more confidence than was ever before
warranted to any other people or any other generation.
We are a nation at peace under the guidance and leadership
of the greatest soldier of all time, who led the whole world out
of the last great war and is steering it skillfully through
dangerous times toward better understanding among nations and a
firmer footing for the lasting peace which the people of the
world so greatly desire, a leader, under God, for the advancement of mankind.

0O0

RELEASE MORHING NEWSPAPERS,
Tuesday, October 30* 1956*
The Treasury Department announced last evening that the tenders for $1,600,000,00$
or thereabouts, of 91-day Treasury bills to be dated Hovember 1, 1956, and to maturt
January 31, 195?, which were offered on October 25, were opened at the Federal Reserve
Banks on October 29*
The details of this issue are as follows:
Total applied for - $2,674,659,000
Total accepted
- 1,601,665,000

(includes $304,171,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids* (Excepting four tenders totaling $1,121,000)
High - 99*280 Equivalent rate of discount approx. 2.848* per annm
low
- 99.269
"
«
«
»
«

2•892* •

Average * 99.270 * « s • « 2.889* " •
(81 percent of the amount bid for at the low price was accepted)
Federal Reserve
District

Total
applied for

Total
Accepted

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

1
38,076,000
1,897,764,000
28,106,000
61,867,000
20,276,000
36,563,000
316,826,000
33,456,000
16,059,000
41,658,000
51,607,000
132,1*01,000

$2,674,659,000

$1,601,665,000

TOTAL

26,252,000
1,033,5*8,000
13,030,000
36,947,000

i7,Ua,ooo

32,351,000
221,196,000
32,506,000
15,959,000
37,638,000
29,191,000
105,556,000

•

TREASURY DEPARTMENT

CO
W Smm

WASHINGTON, D.
ELEASE MORNING NEWSPAPERS,
'uesday, October 30, 1956.

H-1196

The Treasury Department announced last evening that the tenders for $1,600,000,00C
r thereabouts, of 91-day Treasury bills to be dated November 1, 1956, and to mature
[anuary 31, 1957, which were offered on October 25, were opened at the Federal Reserve
Janks on October 29*
The details of this issue are as follows:
Total applied for - $2,674,659,000
Total accepted
- 1,601,665,000

(includes $304,171,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids:, (Excepting four tenders totaling $1,121,000)
High
Low

- 99.280 Equivalent rate of discount approx. 2.848$ per annum
n
n
- 99.269
"
"
"
2.892$ n
»

Average

- 99.270

2.889$

(81 percent of the amcunt 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

38,076,000
1,897,761^,000
28,106,000
61,867,000
20,276,000
36,563,000
316,826,000
33,1456,000
16,059,000
41,658,000
51,607,000
132,401,000

$2,674,659,000

26,252,000
1,033,598,000
13,030,000
36,947,000
17,441,000
32,351,000
221,196,000
32,506,000
15,959,000
37,633,000
29,191,000

io5,556,ooo
$1,601,665,000

BIOGRAPHICAL DATA OF IAUREKS WILLIAMS
•J A,

Born Pottsville, Pennsylvania, December 14, 1906, A3., Hastings College
1926i LL.B. Cornell law School, Cornell University, 1931. Admitted to the
Bar of Nebraska, 1931. Formerly partner, Young, Williams & Holm, Omaha
Nebraska. Married, two children.
Member, Nebraska State Bar Association. President, 1953. Member, House
of Delegates. Executive Council, 19**9-51> 1953-54. Chairman, Committee
on Taxation, 1947-52, and various other Committees and Sections.
Member, American Bar Association. Member, House of Delegates. Member,
Special Committee on Specialisation and Specialised Legal Education and
several other Committees.
Member, Section of Taxation, American Bar Association. Member of Council,
1954. Chairman, Committee on Tax Problems of Farmers, 1951-53. Chairaan,
Committee on Taxation Relating to Patents, Trademarks and Copyright lav,
1954. Member several special Committees of Section.
Member, The American Lav Institute. Member of the Council. Member,
Committee on Continuing Legal Education of the American Lav Institute
collaborating with the American Bar Association, and Tax Policy Committee.
Member, The Federal Bar Association. Member of National Council.
Member, The American Judicature Society, and of the national Tax Association.
Member, The Omaha Club, Omaha, Nebraska5 The Metropolitan Club, Washington,
D.C.j and The University Club, Washington, B.C.
Lecturer: State Bar Association Federal Tax Institutes in Arizona,
California, District of Columbia, Florida, Illinois, Iowa, Missouri,
Nebraska, New York, North Dakota, Oklahoma, South Dakota, Texas, Wyoming,
several Regional Meetings of the American Bar Association, and other
Federal Tax Institutes •
Moderator: "Demonstration of How to Handle a Federal Tax Case", Annual
Meeting American Bar Association, 1953; Second and Third Annual Institutes
on Federal Taxation, Oklahoma; and several other State Bar Association Tax
Institutes.
Author: Several legal articles.
Appointed Assistant to the Secretary of the Treasury, and Head, Legal
Advisory Staff, in October, 1954.

- 2 -

164
past two years. It has been a high honor and a
constant challenge.

They have been the most

enrichening and satisfying years of my professional
life.

I shall be ever grateful to you and to the

many other people in the Treasury Department, the
Internal Revenue Service, and 'on the Hill* with
whom I have been so closely associated during these
stimulating years."
&

Mr. Williams will romoto in Washington as a partner in
the law firm of Sutherland, Asblll and Brennan^which also
has offices in Atlanta.
(A biography of Mr. Williams is attached)

0O0

DRAFT

1 Q^
JL. w y

RELEASE MORNING NEWSPAPERS,
Wednesday, October 31, 1956.

Af - /*97

"Your thorough knowledge of

the law, your great wisdom in human relations as the law
applies to them, and your courageous position always to do
and to have the law provide for only what Is fair and right
have been the greatest assistance in our legislative contacts
and in the administration of the law itself."
Mr. Williams in his resignation pointed out that he had
remained in the Treasury more than a year beyond his original
commitment and now that the major part of the work on Treasury
Regulations'under the Internal Revenue Code of 1954 hag£ been
substantially completed, personal responsibilities required
his return to private life. He added:
"I want you to know how deeply grateful to you
I am for the privilege of working with you on the
Administration's tax program, and in the preparation
of Regulations under the 1954 Code during the

TREASURY DEPARTMENT
WASHINGTON, D.C.
BELEASE MORNING NEWSPAPERS
Wednesday, October 31, 1956.

H-1197

Laurens Williams, Assistant to the Secretary of the Treasury and Head of the
Legal Advisory Staff, today submitted his resignation to be effective November 8,
1956.
In accepting the resignation Secreta^ Humphrey wrote Mr. Williams that he
understood the reasons why this decision is necessary and "we are very grateful
that we have had the benefit of your tremendous contribution for an additional
year more than was originally planned."
"Your work in connection with the revision of the tax regulations and in the
whole field of tax policy has been just invaluable," the Secretary said. "Your
thorough knowledge of the law, your great wisdom in human relations as the law
applies to them, and your courageous position always to do and to have the law
provide for only what is fair and right have heen the greatest assistance in our
legislative contacts and in the administration of the law itself."
Mr. Williams in his resignation pointed out that he had remained in the
Treasury more than a year beyond his original commitment and now that the major
part of the work on Treasury Regulations under the Internal Revenue Code of 195**has "been substantially completed, personal responsibilities required his return
to private life. He added:
"I want you to know how deeply grateful to you I am for the
privilege of working with you on the Administration's tax program,
and in the preparation of Regulations under the 1954 Code during
the past two years. It has been a high honor and a constant challenge. They have been the most enrichening and satisfying years
of my professional life. I shall be ever grateful to you and to
the many other people in the Treasury Department, the Internal
Revenue Service, and f on the Hill 1 with whom I have been so
closely associated during these stimulating years."
Mr. Williams will be located in Washington as a partner in the law firm of
Sutherland, Asbill and Brennan, which also has offices in Atlanta.
(A biography of Mr. Williams is attached)

0O0

BIOGRAPHICAL DATA OF LAURENS WILLIAMS

167
Born Pottsville, Pennsylvania, December 14, 1906. A.B., Hastings
College, 1928; LL.B. Cornell Law School, Cornell University, 1931•
Admitted to the Bar of Nebraska, 1931 • Formerly partner, Young,
Williams & Holm, Omaha, Nebraska. lurried, two children.
Member, Nebraska State Bar Association. President, 1953• Member,
House of Delegates. Executive Council, 1949-51* 1953-54. Chairman,
Committee on Taxation, 1947-52, and various other Committees and
Sections.
Member, American Bar Association. Member, House of Delegates. Member,
Special Committee on Specialization and Specialized Legal Education and
several other Committees.
Member, Section of Taxation, American Bar Association. Member of
Council, 1954. Chairman, Committee on Tax Problems of Farmers,
1951-53• Chairman, Committee on Taxation Relating to Patents, Trademarks and Copyright Law, 1954. Member several special Committees of
Section.
Member, The American Law Institute. Member of the Council. Member,
Committee on Continuing Legal Education of the American Law Institute
collaborating with the American Bar Association, and Tax Policy Committee .
Member, The Federal Bar Association. Member of National Council.
Member, The American Judicature Society, and of the National Tax
Association.
Member, The Omaha Club, Omaha, Nebraska; The Metropolitan Club,
Washington, D.C.; and The University Club, Washington, D. C.
Lecturer: State Bar Association Federal Tax Institutes in Arizona,
California, District of Columbia, Florida, Illinois, Iowa, Missouri,
Nebraska, New York, North Dakota, Oklahoma, South Dakota, Texas,
Wyoming, several Regional Meetings of the American Bar Association,
and other Federal Tax Institutes.
Moderator: "Demonstration of How to Handle a Federal Tax Case",
Annual Meeting American Bar Association, 1953J Second and Third
Annual Institutes on Federal Taxation, Oklahoma5 and several other
State Bar Association Tax Institutes.
Author: Several legal articles.
Appointed Assistant to the Secretary of the Treasury, and Head, Legal
Advisory Staff, in October, 1954.

1 £9
or by any local taxing authority. For purposes of taxation the amount of discour
at which Treasury bills are originally sold by the United States is considered to
be interest. Under Sections u$a (b) and 1221 (5) of the Internal Revenue Code of
195h the amount of discount at which bills issued hereunder are sold is not
considered to accrue until such bills are sold, redeemed or otherwise disposed of
and such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunde:
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 kttMk

169
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 November 8. 1956 $ in cash or other immediately available funds

xSk
or in a like face amount of Treasury bills maturing

November 8, 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 principa
or interest thereof by any State, or any of the possessions of the United States,

17 u

i in

m4&B&L\m
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, November 1, 1956

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

Each tender

RELEASE A.M. NEWSPAPERS,
Thursday, November 1, 1956.

H-1198

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 8, 1956*
in the amount of $1,600,112,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated November 8, 1956,
and will mature February 7, 1957
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 o1clock p.m., Eastern Standard time,
Monday, November 5, 1956.
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 bll'Js 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 November 8, 1956, in cash or other immediately available funds
or In a like face amount of Treasury bills maturing November 8, 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 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.
0O0

TREASURY DEPARTMENT
Washington

172

RELEASE A.M. NEWSPAPERS,
Saturday, November 39 1956.

H-1199

Remarks by Secretary Humphrey before the
Associated Grocery Manufacturers
Representatives, Hotel Carter, Cleveland,
Ohio, 7:00 P.M., Friday, November 2, 1956

WHERE WERE WE?

WHERE ARE WE?

WHERE DO WE GO FROM HERE?

There are three questions to which I would like to suggest
answers for you tonight that have a very important bearing on
the future of our country. The three questions are:
*

Where were we?
Where are we?
Where do we go from here?
Let's look at the first question:
Where Were We?
Four years is a mighty short time in the life of a nation,
but it is a very long time in the life of a bureaucrat in
Washington. It is time enough though for most of us to pretty
well forget the difficult or disagreeable things that were going
on about four years ago. It is particularly easy to forget now
because conditions around us are so very much better today.
So to refresh our recollections and be sure that we recall
the real facts, I would like to quote a few sentences from some
items that we all were reading in our newspapers over a period of
two or three months just about four years ago.
We were reading about the war in Korea, and I quote:
"Still Korea; no end In sight." . . . "The number
114,310 is the number of casualties suffered by our
Armed Forces in Korea as of last Wednesday." . . . .
"Medals of honor for three Marines who died in Korea
were presented to their next of kin at the Pentagon
today. "*

173
- 2 We were reading of a disastrous steel strike, and an illegal
act by the President of the United States, and I quote:
"The S*
Supreme Court today ruled unconstitutional
President Truir
Prumanfs seizure of the steei industry." . . .
"About 650,000 steel workers are in the fifth week of a
steel strike." . . . "The Army is rationing ammunition
because of steel strike to make sure troops in Korea
have shells they need." . . . "Steel strike ends after
choking economy for 53 days."
We were reading of inflation, and I quote:
"The man in the street sees himself caught in the
tightening vise of high taxes and a shrinking dollar." . . .
"The cost of living hit a new all-time high in July." . . .
"Food prices rose 1.2$ between July 1 and July 15." . . . .
"As of August 21 the cost of living hit another all-tirne
high." . . . "People found that the dollar they saved in
1940 will buy only 52 cents worth of necessities
today." . . . "Inflation has been virtually a permanent
guest of the nation now, as nearly everyone knows, since
1939.
Moreover the tendency was either ignored,
tacitly encouraged, or directly stimulated by the
administration."
We were reading about heavy deficit financing.
In the fiscal year that ended in June, 1952, the government
overspent its income by more than four billion collars.
But that summer, in revising the budget for the next fiscal
year, Mr. Truman came up with what was in those days considered
a piece of good news. Mr. Truman had projected a deficit for
fiscal 1953 of l4f billion dollars. Newspaper stories of
August 19, 1952 gave the nation the good news: the budget would
only be 10^ billion dollars in the red that year I Well, you can't
get around it, a 10 billion dollar deficit is better than a 14-|
billion dollar deficit.
There was also the story we were reading in. our
papers in 1952 of corruption and controls. I quote:
"Assistant Attorney General Caudle" (who has now been
found guilty by a jury of conspiracy to defraud the Federal
government) "discloses tax pressure by high officials." . . .
"James P. Finnegan, former Collector of Internal Revenue,
was sentenced and fined for misconduct in office." . . .

. 3-

174

"Daniel A. Bolich, former Assistant Internal Revenue
Commissioner, was indicted for income tax evasion." . . .
"Two investigators of the Office of Price Stabilization
were arrested for trying to extort $4,000 from a man
who had allegedly sold his car in excess of OPA ceiling."
Of course we have forgotten most of this story in the
four better years we have had since then. But we need to remind
ourselves every now and then that there has been a big change.
We were suffering a costly steel strike in which the
Government seized the steel industry only to be ordered out by the
Supreme Court.
We were, in a period of mounting inflation.
We were seeing Government deficits grow by billions of dollars
We were seeing high Government officials indicted for
criminal offenses.
In 1952, we were deeply involved with the snares of price
controls.
This was the day-by-day situation in which Americans lived
in the months just prior to this Administration. It sounds
strange now but it was the actual story of misconduct
and bad government that filled the daily papers in the fall of 1952
Where Are We?
Let's look at some of the items we are reading in our
newspapers these days.
Contrast the story of illegal presidential action in the steel
strike of four years ago with the reports in our papers this
summer:
"U.S. hands-off policy on steel hailed." . . .
"Parties to the steel strike settlement hammered out
their agreement aided only indirectly by government."
On general prosperity we read, and I quote:
"August employment highest of any month in history,
with 66,750,000 persons having jobs." . . . "The buying
power of factory workers' pay checks in September hit
an all time high for the month." . . . "Employment
in October was 1,000,000 higher than a year ago and
unemployment down to 1,900,000 the lowest since
November 1953." . . . "The level of the American
economy has never been higher in peace or war." . . .
"Farm income will top 1955."

-*-

175

Remember that good news of 1952 — that the deficit would
only be $10 billion instead of $14^ billion. This summer the
papers reported:
"The Government balanced its budget in fiscal
1956 and had a surplus of $1.8 billion." . . . "The
Government plans a second successive balanced budget
for the year 1957." . . • "Government spokesmen say
a tax cut is well within realization within the
relatively near future."
And in contrast to four years ago the newspapers reported
the following this summer:
"The Nation has experienced a period of remarkable
stability In the cost of living in the past four
years." . . .nThe dollar lost 58 cents of its value
under deliberate inflation in 13 years but changed less
than 2 cents under the policy of stabilization in the
past four years."
We have record high employment — more than 66 million people
working at good jobs.
We have record high wages.
We have production of goods and services exceeding all
previous records.
And we have this high prosperity — in peace — with but
little change in the cost of living during the past four years.
The money of our people during this Administration has stayed
sound, because our government has been doing the things we said
we would do in fiscal and monetary policy to stimulate confidence
and incentive; to keep money sound.
Now Where Do We Go From Here?
That is a matter of our own free choice. It all depends
upon what kind of a country the American people want to live in.
The domestic problems of today are the problems of great
prosperity. But they still are problems that must be faced and
solved with courage if this prosperity is to continue. During
the years from 1939 to 1952 when interest rates were arbitrarily
held at low levels — by deliberate design -- the value of the
dollar in goods that it would buy fell from 100 cents to
52 cents. Since 1952, while interest rates have been allowed
to fluctuate naturally, both up and down, in response to demand,
the dollar's value has declined less than 2 cents.
The record is all too clear. While we had arbitrarily cheap
and plentiful money the cost of living doubled — the value of the
dollar was cut in half. Whereas with money advancing or declining

-5-

176

more freely in response to the pressure of demand, we have
enjoyed a perfectly remarkable stabilization in the cost of living
and as sound a dollar as this country ever had.
No more effective demonstration of the difference between
the two policies in their effect upon the lives of the American
people could possibly be made.
Now is there any reason 'why we should not learn from that
hard experience, if these great good jobs, good pay and good
times are to endure and further sweeping increases in the cost
of living are to be held down?
Vie are prosperous, and that means we are working very close
to the limits of our manpower and our materials. We are at
peace, so there is no place for wartime controls or powers to
ration work and materials. We are free and we want to stay
free, so we do not want to dictate wages, prices or rents. We
do not want to arbitrarily allocate materials and labor by
government order or decree.
But just because we are prosperous --in peace and in
freedom — because the public in general has great confidence in
the future, we all want to buy and expand. The public wants to
earn more and spend more, all at the same time. The demand for
money is unlimited, but the supplies of the things money buys —
goods, materials, and the labor, skill and services of people —
are limited. We have neither the necessity of war nor the desire
of dictatorial government to ration those things. That being so,
we must keep the supply of money and credit from growing beyond
the supply of people and materials. That is the only way to
avoid rapidly rising prices and inflation while maintaining
prosperity in company with both peace and freedom.
Vie don't want to go the "easy" money road, the old
familiar road to inflation. We don't want to go up only to come
down. We want to let natural corrections and restraints operate
freely.
We are short of capital in this country -- that means savings.
We have been through a period of years when there was little
incentive to save. In the first place, the interest rate was
held down so low that there was very little return. There was
no natural incentive. In the second place, as the value of the
dollar declined and as inflationary pressures took hold, people
were afraid to save a dollar because it was constantly declining
in value. So the lack of incentive resulting from low interest
and the fear of inflation first took away the reason to save and,
then it actually kept people from saving.
Most all Americans are saving something today through
purchase of insurance, payments for pensions, the purchase of
government bonds or in a savings account or in the many other

17?
- 6ways to do so. As interest rates rise all those savers benefit.
But if inflation sets in and the dollar declines they all are
robbed of part of their savings. Inflation is the great thief.
The young, the old, and sick, the small saver, all those least
able to protect themselves, are the helpless prey of wicked
inflation. It must be held in check.
We must create more incentive for more saving, to have more
capital available for expansion. We must have it because we in
our growing country have a million new people every ^ear looking
for new jobs. Unless someone can invest from ten to twenty
thousand dollars apiece for them, they cannot get a job in which
they can earn the kind of wages now being paid in America.
Such wages can only be paid on the basis of nigh productivity,
the kind of productivity that comes only from skilled workers
using highly productive machines and power. Those machines
and that power cost money. Vie can only have the plants, the
machinery, the power, the transportation and all the rest that
goes to make up our modern industrial and farm life by saving and
investing. Inflation kills the goose that lays that golden egg.
Without savings and investments you cannot get high
productivity. Without high productivity you cannot have high
wages. Without high wages you cannot have the standard of living
we all want. Inflation stops the whole process. The best known
way to help to control it is a flexible price for money, because
a flexible price for money is the automatic and natural governor
that operates to hold down the cost of living and make prosperity
last — in peace and in freedom.
Now we do not consider ourselves, or any other group of people,
to be so wise that they can plan, and dictate, the economic life
of i68 million Americans. We believe in individual economic
freedom. It is the job of government only to help to provide a
favorable climate -- a fertile field — within which the people
themselves can freely develop their own economic progress.
This means that we believe the millions of decisions all of
you make daily are wiser when put together in the general balance
of the economy, than any planned economy which could, possibly
be imposed upon you.
We are for a freer economy. 'We do not follow policies that
dictate the decisions of individuals such as the rigid controls
and rationing under which we all suffered for so long.
We have no academic concern about economic facts and figures,
balanced budgets, sound money, taxes, and the like. No program
has any worth except as it benefits people in their homes and
jobs, to work toward a better life. We are concerned with
balanced budgets, sound money, and taxes only as they apply to
you. And we are really very deeply concerned about these things
because -~ and only because — they have so much to do with your
Personal welfare.

-7-

175

We are not interested in programs of pie in the sky. We
want you to have the opportunity to earn your own pie put right
on your own table — an ever bigger economic pie, from which ail
can continually have more and bigger pieces.
The simple and the exclusive tests for our policies are
these: Does our economic program benefit all, and not just the
few? Does it achieve some human benefit rather than just some
academic nicety? Does it enlarge individual freedom, consistent
with the general welfare? It is in this direction that we
believe we should continue to travel.

0O0

179
REI.AKL A. M. HSKSFAPEIS, 1/ / n n-f)
Tuesday, NoTewoar 6, 1956.

The Treasury Department announced last evening that the tenders for $1,600,000,001
or thereabouts, of 91-day Treasury bills to be dated November 8, 1956, and to mature
February 7, 1957, which were offered on November 1, were opened at the Federal Eeaero
Banks on November $.
The details of this issue are a« followst
Total applied for • $2,$Gli,062,000
Total accepted
- 1,600,670,000

(includes $286,948,000 entered on a
noncompetitive basia and aeoepted in
fall at the average price shown below)

Range of accepted competitive bidet
High - 99.282 Equivalent rate of diacount appro*. 2• 81*051 pmr annua
Low
- 99.2$9
•
a a
n
«
2.91X1$ *
Average - 99.263 • " • " • 2.91W •

•

(39 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District

Applied for

Boston
I 36,010,000
Sew York
1,788,739*000
Philadelphia
31,36b, 000
Cleveland
100,662,000
Richmond
l8,69U,000
Atlanta
35,657,000
Chicago
257,315,000
St. Louis
35*873,000
Minneapolis
18,833*000
Kansas City
Ul,U98,000
Dallas
k2*902,000
San Francisco
96.515.000
TOTAL 82,50l|*062,000 $1,600,670*000

25,705,000
987*27«*OO0
l6,36«,000
85,052,000
l8,6?b,000
32,1*93,000
200,995*000
35*853*000
18,511*000
Ul,U95,000
1*2,902,000
*MI*'Q08

180
TREASURY DEPARTMENT
WASHINGTON,D.C.

ELEASE A. M. NEWSPAPERS,
aesday, November 6, 1956«

H-1200

The Treasury Department announced last evening that the tenders for $1,600,000,000,
r thereabouts, of 91-day Treasury bills to be dated November 8, 1956, and to mature

ebruary 7, 1957* which were offered on November 1, were opened at the Federal Reserve
anks on November 5*
The details of this issue are as follows:
Total applied for - $2,50U,062,000
Total accepted
- 1,600,670,000

(Includes $288,81|8,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids:
High • 99*282 Equivalent rate of discount approx. 2«8i|0# per annua
Low
- 99.259
«
« «
n
«
2.931?

Average • 99#263 " « n it * 2.91i# " "
(39 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

$
36,010,000
1,788,739,000
31,36*4,000
100,662,000
18,69U,000
35,657,000
257,315,000
35,873,000
18,833,000
Ul,U98,000
k2,902,000
96,515,000

$2,50li,062,000

$1,600,670,000

TOTAL

25,705,000
987,27^,000
16,36^,000
85,052,000
18,69^,000
32,1*93,000
200,995,000
35,853,000
18,511,000
1*1,1.95,000
1*2,902,000
95,332,000

- 3YYVYV

™* 181
or by any local taxing authority. For purposes of taxation the amount of discount
at which Treasury bills are originally sold by the United States is considered to
be interest. Under Sections k$k (b) and 1221 {$) of the Internal Revenue Code of
195U the amount of discount at which bills issued hereunder are sold is not
considered to accrue until such bills are sold, redeemed or otherwise disposed of
and such bills are excluded from consideration as capital assets. Accordingly.
the owner of Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between the price paid
for such bills, whether on original issue or on subsequent purchase, and the
amount actually received either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 1*18, Revised, and this notice, prescribe
the terms of the Treasury bills ami govern the conditions of their issue. Copies
of the circular may be obtained from any Federal Reserve Bank or Branch*

- 2 -

* 90

355gx
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 1951*• 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 princip
or interest thereof by any State, or any of the possessions of the United States,

BQCBflacXX
JCKKKK
TREASURY DEPARTMENT
Washington

\ ^ \QJ^... j
^y"")'" ' v

(

FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, November 6, 1956
m

The Treasury Department, by this public notice, invites tenders for
$ 1,600,000,000 , or thereabouts, of 91 -day Treasury bills, for cash and
in exchange for Treasury bills maturing November 15, 1956

in the amount of

$ 1,600.158,000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated November 15, 1956 , and will mature February 14, 1957 , when the face
**g-i
^
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,/km o^lock p.m., Eastern Standard time, Friday, November 9. 1956 j
Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders
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 dealen
in investment securities. Tenders from others must be accompanied by payment of

TREASURY DEPARTMENT
— ^ — — — — ~

—

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•

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

RELEASE A.M. NEWSPAPERS,
Tuesday, November 6, 1956.

H-1201

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 15, 1956,
in the amount of $1,600,138,000, 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 15, 1956,
and will mature February 14, 1957, 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, November 9, 1956.
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 iacorporated 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 rl^ht i;o accept or reject any or all tenders
in whole or in part, and his action in any such reaper I shall be
final. Subject to these reservations, non-competitive teiuioru i'or
$2OO,U.K> or teas without stated price from any one bidder will be
acceptea in full at the average pi Ice (in three deoinhaK.) of avcepted

- 2 competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on November 15, 1956, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing November 15, 29
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted ~n 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.
0O0

IMMEDIATE RELEASE,
Wednesday, November 7, 1956«
The Treasury Department announced today that it will
invite cash tenders for $1,750,000,000, or thereabouts, of
91-day Treasury bills to raise cash for current requirements.
The full terms of the offering will be contained in a statement
to be released Thursday morning, November 8*

Tenders will be

opened at 1:30 p.m., Eastern Standard time, on Tuesday, November 13* The new bills will be dated and must be paid for on
November 16, 1956, and may be paid for by credit in Treasury
Tax and Loan accounts. They will mature on February 15, 1957*

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
VJednesday, November J. 1956.
The Treasury Department announced today that it
will invite cash tenders for $1,750,000,000, or
thereabouts, of 91-day Treasury bills to raise cash
for current requirements.

The full terms of the

offering will be contained in a statement to be
released Thursday morning, November 8.

Tenders will

be opened at 1:30 p.m., Eastern Standard time, on
Tuesday, November 13.

The new bills will be dated

and must be paid for on November 16, 1956, and may
be paid for by credit in Treasury Tax and Loan accounts.
They will mature on February 15, 1957.

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183
Treasury j^Bjwiaaieat of ttaa i*«&unt w d price range of accepted M i a *

Shese sutadttia

tenters will bo advised of the acceptance or rejection ths&sef» \Wm Secretary of
the IroapMry expressly reserves the right to aoeapfc or rojeot our or all traders,
in whole or in ptwrfc, and M o action In any snob respect shall bo final* Subject to
tiptoe reservations, aoaeaes>etitlve tenters for #200,000 or l o w witbout stated priot
fru-a any on® bidder will be accepted in full at the average price (in three dwiwOa
of accepted ©competitive bids. Bajsasat of accejpted tenders at tbe prices offered
jaust bo node or cca©lete& at the Federal Reserve Beak in oosh or ether iawediatsly
available funds on Bovember 16, 1356, provided, however, ma? *9ymXitimr, depositary
w l U bo permitted to mfce pepnenfc by credit in its Treasury At* and Loan Account tor
Treasury M i l s allotted to It to® itself and Its customers 19 to any aaouat tor vhic)
it shall bo $iali31e& in excess; of existing deposits vban so notified by the Federal
Beserve Bank of its District*
She inooise derivedftsraft*a«*i*yM i l s , ifcethor intorost or gain from the ssls
or other dlipoaitlon of tit® M i l s , does not bave way exemption, as such* and loss
from the sale or other disposition of Steasnry bills does not hove any special treat
stent, as such* nader the Irrteraal Bevsmue Cod© of 1954* 2he M i l s are subject to
estate, inheritance, gilt or other excise taxes, whether Federal or State, but are
estMpt fxxm all taxation nov or hereafter imposed on tte principal or interest there
by sny State, or m y of the possessions of tte United States, or %yy any local taxing
authority* Jtor purposes of taxation the amount of discount at *bich Treasury bills
are originally sold by the United states is considered to bo interest. Under See*
tioas 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 tbo amount of discount at ^ahich bills Issued hereunder are sold is not considered to accrue until
such bills are sold, redeemed or otherwise disposed of, and such bills are exelndsd

189
i i

RELEASE A . M.„ 1HEWSPAPERS,
Thursday, Itovember 8, 1956

She treasury Dapertwpnt, by this public notice, invites tendersft*r$l,75Q,ooo
or thereabouts, of ^i-da./ Treasury bills, to be issued am a discount basis under cos
petitive and noncompetitive bidding as hereinafter provided, Ihe M i l s of this eeri
w i U be dated Sovoaber 16, 1966, and M I L mature February 1,, 1957, whoa the face
aaount vill bo payable without interest. Xbey will be Issued in bearer form only,
o^u in danminatioae of $1,000, $a,ooo, $10,000, #100,000; $300,000 and $1,000,000
(maturity value)*
Tenders will be received at federal Reserve Banks m& Branches up to the closizx
hour, one-thirty o'clock p*a», Eastern Standard %im, Tuesday, Bevwber 13, 1956.
Senders will oot be received at the Sroaeury Dspartaent, Washington, Sach tender
smst be for en even miltipie of $1,000, and in the case of competitive tenders the
price offered mist be expressed cm the basis of 100, with not mrm than three
decimals, e* g*» 99#885. Fractions imy not be used*

It la urged that tenders be

on the printed f o m s and fbrvarded in the special envelopes which M i l be
supplied b# federal Beserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders exctpt
for o........ 01m account. Staters M i l be received without deposit froa incorporated
tonka and trust coiapanies a&d frosa responsible and recognised dealers In investment
securities. T*mcWrB fra& otters must be acccwspanied by payment of Z percent of the
face ataount of yyt.y.^: bills applied for, unless the tenders are accompanied by **
aaqfusesa s^pttanty of parent by km incorporated bank or trust coaspany*
Iteediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the

RELEASE A. M. NEVJ5PAPERS,
Thursday, November 8, 1956.

H-1203

The Treasury Department, by this public notice, invites tenders for $1,750,000,000,
or thereabouts, of 91-day Treasury bills, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bill^ of this series
will be dated November 16, 1956, and will mature February 15, 1957, 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, Tuesday, November 13, 1956.
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 af>ter the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the

- 2 -

19l
Treasury Department oi* 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. Payment of accepted tenders at the prices offered
must be made or completed at the Federal Reserve Bank in cash or other immediately
available funds on November 16, 1956, provided, however, any qualified depositary
will be permitted to make payment by credit in its Treasury Tax and Loan Account for

Treasury bills allotted to it for itself and its customers up to any 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 thereo
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 Ibl (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

I*- D -

*w*w

from consideration as capital assets. Accordingly, the owner of Treasury bills
(other than life insurance companies) issued hereunder need include in his income
tax return only the difference between the price paid for such bills, whether on
original issue or on subsequent purchase, and the amount actually received either
upon sale or redemption at maturity during the taxable year for which the return is
made, as ordinary gain or loss.
Treasury Department Circular No. 418, Revised, and this notice, prescribe the
terms of the Treasury bills and govern the conditions of their issue. Copies of the
circular may be obtained from any Federal Reserve Bank or Branch.

- 2•** w O

Mr. Train is married and has two daughters and one son.
His parents are Rear Admiral and Mrs. Charles R. Train
(U.S. N., Ret.) of Washington.

He is an Episcopalian and a

vestryman of St. Johnfs Episcopal Church, Washington.

194
RELEASE A.M. NEWSPAPERS,
Thursday, November 8, 1956

H-

\ *~)n

Secretary Humphrey today announced the appointment of
Russell E. Train as Assistant to the Secretary, effective
November 9.
Mr. Train will head the Legal Advisory Stafffrfithe
General CuunuePb Office which analyzes and prepares reports
on legal aspects of tax legislation and regulations and provides
legal advice to the Secretary on tax matters.
He succeeds Laurens Williams, who resigned recently to
return to private lav/ practice.
For the past two years, Mr. Train has been Advisor to the
Republican members of the Committee on Ways and Means of the
House of Representatives.
the p3rd Congress.

He was Clerk of that committee during

Prior to that time, Mr. Train was an attorney

with the staff of the Joint Conoressional Committee on Internal
Revenue Taxation.
Mr. Train was born June 4, 1920, at Jamestown, Rhode Island.
He is a resident of Washington, D. C , and a graduate of
Saint Albans School, Washington.

He was graduated in 1941 from

Princeton University with the degree of A.P., and in 1948 from
Columbia University Law School with the degree of LL.B.

He is

a member of the Ear of the District of Columbia.
From 1941 to 1946, Mr. Train served with the armed forces.
He took part in the Okinawa campaign as a major in the field
art illery.

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

RELEASE A.M. NEWSPAPERS,
Thursday, November 8, 1956.

H-1204

Secretary Humphrey today announced the appointment
of Russell E. Train as Assistant to the Secretary,
effective November 9.
Mr. Train will head the Legal Advisory Staff, which
analyzes and prepares reports on legal aspects of tax
legislation and regulations and provides legal advice to
the Secretary on tax matters.
He succeeds Laurens Williams, who resigned recently
to return to private lav/ practice.
For the past two years, Mr. Train has been Advisor
to the Republican members of the Committee on "Ways and
Means of the House of Representatives. He was Clerk of
that committee during the 83rd Congress, Prior to that
time, Mr. Train was an attorney with the staff of the
Joint Congressional Committee on Internal Revenue
Taxation.
Mr. Train was born June 4, 1920, at Jamestown,
Rhode Island. He is a resident of Washington, D. C ,
and a graduate of Saint Albans School, Washington. He
was graduated in 1941 from Princeton University with
the degree of A.B., and in 1948 from Columbia University
Law School with the degree of LL.B. He is a member of
the Bar of the District of Columbia.
From 1941 to 1945, Mr. Train served with the
armed forces. He took part in the Okinawa campaign
as a major in the field artillery.
Mr. Train is married and has two daughters and one
son. His parents are Rear Admiral and Mrs. Charles R.
Train (U.S. N., Ret.) of Washington. He is an
Episcopalian and a vestryman of St. JohnTs Episcopal
Church, Washington.

0O0

S T A T U T O R Y D E B T LIMITATION
AS OF....OCTOBERJlRiii1956

1 9 8
Washington, » £ • 8 / . J S &

shall be considered as its face amount." T h e Act of July 9» 1956,(poLo 678 84th Congress) provides that during the period
beginning on July 1, 1956, and ending on June 30, 1957, the above limitation ($275,000,000,000) ahall be temporarily increa.*
Y
by $3,000,000,000.
™crea8e<
T h e 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
$278,000,000,000
OutstandingObligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills $22,410,287,000
Certificates of indebtedness
Treasury notes
BondsTreasury
Savings (current redemp. value)
Depositary.
Investment series
Special FundsCertificates of indebtedness
Treasury notes.
Total interest-bearing
Matured, interest-ceased
Bearing no interest:
United States Savings Stamps
Excess profits tax refund bonds
Special notes of the United States:
Internat'l Monetary Fund series
Total
:

19»523 »309,000
35.194.174.000
80,838,338,850
57»l4l,932,940
287,980,000
11.792. 514.000
35,152,745,000
10,328,835,400

$ 77.127,770.000

150 ,060,765,790

45.481.580.400
272,670,116,190
440,740,704

47,341,912
970,995
1.666.000.000

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A
..
88,635,900
Matured, interest-ceased
761.825
v
Grand total outstanding
Balance face amount of obligations issuable under above authority

1.714.312.907
274,825,169,801

89.397>725

Reconcilement with Statement of the Public Debt ..P.S.IiS'ljSL.3.i.!....i?5S.
(Date)
(Daily Statement of the United States Treasury, 9?*?^?t.3.i»...i?56
J
tDate)
OutstandingTotal gross public debt
Guaranteed obligations not owned by the Treasury.
„....„
Total gross public debt and guaranteed obligations.
„
M
Deduct - other outstanding public debt obligations not subject to debt limitation.........................

274.9l4t567.526
3 • 08^f*y2•*fr7*r

275,282,774,333
go W
725
Agft
&(J%J%**%1(~*
™
*Or t O v ^ t ^

27^.91^.567.526

H-1205

STATUTORY PM1J4MITATI0N
AS oF....OCTpBER..21»....1956

197
;a8hi„gto„. N?Ir..§,...1956

t of June 26, 1946; U.S.C.. title 31, sec. 757bj, outstanding at any one time. For purposes of this section the current reiption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holder
11 be considered as its face amount." T h e Act of July 9. 1956,(P*Lo 678 84th Congress) provides that during the period
inning on July 1, 1956, and ending on June 30, 1957, the above limitation ($275,000,000,000) ahall be temporarily increased
13,000,000,000.
The following table shows the face amount of obligations outstanding and the face amount which can still be issued under
i limitation:
al face amount that m a y be outstanding at any one time
$278,000,000,000
itstandingIbligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills $22,410,287,000
Certificates of indebtedness.
Treasury notes
„
Bond 8Treasury .„..
Savings (current redemp. value)
Depositary.
Investment series

19,523,309,000
35.194.174.000

Treasury notes;
Total interest-bearing
Matured, interest-ceased

1 5 0 ,060 ,7*>5 »790

35,152,745,000
10,328,835,400

Bearing no interest:
United States Savings Stamps

45.461.580.400
272,670 „ 116,190
440,740,704

47,341,912

Excess profits tax refund bonds
Special notes of the United States:
Internat'l Monetary Fund series
Tota»
:
I

77.127.770.000

80 , 838,338 , 850
57,141,932,9^0
287 , 980 , 000
11.792.514,000

Special FundsCertificates of indebtedness

970,995
1,666»000»000
-

1 , 7 1 4 » 3 1 2 »907
274,825.169.801 .

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A
88,635,900
Matured, interest-ceased
?6li825
v
Grand total outstanding
a la nee face amount of obligations issuable under above authority

8 9 »397 »725
274.914. 567.526
31085 • 4 3 2 .4?4

,..„

Reconcilement with Statement of the Public Debt..P.S^^.?.?..3.i»..A?5S.
(Date)
(Daily Statement of the United States Treasury,
October 3 1 , l?5o
tstandingTmi-T
rotal gross public debt

)
275,282,774,333

juaranteed obligations not owned by the Treasury.
rotal gross public debt and guaranteed obligation*

...

„.

„

luct - other outstanding public debt obligations not subject to debt limitation

O " t ^ 9 ft 7 » Q
275»372,172,Q5o
4 5 7 1 cOn-9532

274.914,567.526

H-1205

1 QQ
mL \J V^

—- f ">
RELEASE A. M. NEWSPAPERS,
Saturdayf November 10, 1956*

The Treasury Department announced last evening that the tenders for $1,600,000.
or thereabouts, of 91-day Treasury bills to be dated November IS, 1956* and to mature
February 14, 1957, which were offered on November 6, were opened at the Federal Restrn
Banks on November 9.
The details of this Issue are as follows:
Total applied for - $2,492,95111000
Total accepted
- 1,600,542,000

(Includes $274,184,000 entered on a
noncompetitive basis and accepted In
full at the average price shewn below)

Range of accepted competitive bidst (Excepting one tender of $400,000)
High - 99*280 Equivalent rate of discount approx. 2.6kB% per annua
Low

- 99.243

2,995

Average - 99.247 • " " • " 2.979* • •
(26 percent of the amount bid for at the low price was accepted)
Federal Reserve
District

Total
Applied for

Total
Accepted

Boston
Hew York
Pbilad.lphi*
Cleveland
Richmond
Atlanta
Chieago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

TOTAL

1,746,435,000
29,457,000
73,186,000
26,216,000
27,903,000
267,493,000
25,674,000
17,572,000
45,5i6,ooo
45,898,000
159,391,000

17,811,000
961,123,000
14,457,000
73,186,000
21*, 216,000
21**623,000
199,293,000
25,654,000
17,572,000
42,558,000
45,898,000
153.451,000

$2,492,954,000

H,6oo,542,ooo

28,211,000

TREASURY DEPARTMENT
WASHINGTON, D.C

EUBASE A. M. NEWSPAPERS,
tturday. November 10, 1956.

H-1206

The Treasury Department announced last evening that the tenders for $1,600,000,000
r thereabouts, of 91-day Treasury bills to be dated November 15, 1956, and to mature
abruary 14, 1957, which were offered on November 6, were opened at the Federal Reserve
inks on November 9*
The details of this issue are as follows:
Total applied for - $2,492,954,000
Total accepted
- 1,600,542,000

(includes §274,184,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids* (Excepting one tender of $400,000)
High - 99»280 Equivalent rate of discount approx* 2.6k&% per annum
,f
w
w
Low
- 99.243
"
«
2.995
Average - 99.247

w « w « 2.979%

(26 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

$
28,211,000
1,746,435,000
29,457,000
73,186,000
26,216,000
27,903,000
267,493,000
25,674,000
17,572,000

45,898,000
159,391,000

17,811,000
961,823,000
14,457,000
73,186,000
24,216,000
24,623,000
199,293,000
25,654,000
17,572,000
42,558,000
45,898,000
153,451,000

TOTAL

$2,492,954,000

$1,600,542,000

45,5i8,ooo

RELEASE A. M. NEWSPAPERS,
Wednesday, Hovember 14, 1956.
mmmmmmmmmm9mmmmmMmtmmKmmm99mmmmmmmmmT9mmmmmmm*Mmmmmm\mmim.

llll

The Treasury Department announced last evening that the tenders for #l,75O,O00|C
or thereabouts, of 91-day Treasury bills to be dated November 16, 1956, and to natun
February 15, 1957, which were offered on Movember 8, were opened at the Federal Rem
Banks on Hbve&ber 13*
The details of this issue are as follows t
Total applied for - $4,637,181,000
Total accepted
- 1,750,200,000

(ineludes $402,720,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted coapetitive bide* (Excepting one tender totaling $500,000)
High - 99*385 Equivalent rate of discount appro*. 2.433* \nr mm*
Low
- 99.331
»
s
e
e
•

2.647* •

Average - 99.339 * • • • • 2.617* • •
(98 percent of the amount bid for at the low price was accepted)

Federal Reserve
District

Total
Applied for

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

$ 182,105,000
2,188,326,000
170,355,000
263,928,000
149,598,000
153,528,000
643,425,000
151,193,000
128,565,000
116,067,000
187,469,000
302,600.000

% 120,451,000
678,777,000
47,435,000
78,302,000
85,542,000
77,284,000
206,616,000
69,297,000
68,985,000
64,962,000
145,049,000
105.280.000

$4,637,181,000

81,750,200,000

TQfAL

Total
mmmy9J^9*9m 90mf^m

•

TREASURY DEPARTMENT
WASHINGTON, D.C.
ELEASE A . M . NEWSPAPERS,
ednesday, November 14, 1956.

\<sV^/

II-1207

The Treasury Department announced last evening that the tenders for $1,750,000,000,
>r thereabouts, of 91-day Treasury bills to be dated November 16, 1956, and to mature
February 15, 1957, which were offered on November 8, were opened at the Federal Reserve
Janks on November 13 •
The details of this issue are as follows:
Total applied for - $4,637,181,000
Total accepted
- 1,750,200,000

(includes $402,720,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids: (Excepting one tender totaling $500,000)
High - 99.385 Equivalent rate of discount approx. 2.433$ per annua
,f
Low
- 99*331
II «
«
n
2.647$
Average - 99.339

u n n n 2.617$

(98 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

182,105,000
2,188,328,000
170,355,000
263,928,000
149,598,000
153,528,000
643,425,000
151,193,000
128,565,000
116,087,000
187,469,000
302,600,000

$4,637,181,000

120,451,000
678,777,000
47,435,000
78,302,000
85,542,000
77,284,000
208,816,000
69,297,000
68,985,000
64,982,000
145,049,000
105,280,000

$1,750,200,000

- 3-

202

a ^

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

XAUsMAX

or in a like face amount of Treasury bills maturing

November 25, 1956

. Cash

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

*A**A*9AMH

TREASURY DEPARTMENT
Washington
IBS RELEASE/ SBXKSEB NEWSPAPERS, l^~ " '/ZL 0 $
Thursday, November 15, 1956

—sr—
The Treasury Department, by this public notice, invites tenders for
$ 1,600,000,000 , or thereabouts, of 90 -day Treasury bills, for cash and
in exchange for Treasury bills maturing November 25. 1956 9 In the amount of
$ 1.600,415.000 9 to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated November 25. 1956 i and will mature February _ 21. 1957 , 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,/km o•clock p.m., Eastern Standard time, Monday, November 19, 1956.
^

Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99*92$* Fractions may not be used. It is urged that tenders
be made on the printed forms and forwarded in the special envelopes which will be
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized dealers
in investment securities. Tenders from others must be accompanied by payment of

RELEASE A.M. NEWSPAPERS,
Thursday, November 15, 1956.

H-1208

The Treasury Department, by this public notice, invites tenders
for $1,600,000,000, or thereabouts, of 90-day Treasury bills, for
cash and In exchange for Treasury bills maturing November 23,1956,
in the amount of $1,600,415,000, 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 23, 1956,
and will mature February 21, 1957, 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 19, 1956.
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 bli:*s 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 November 23, 1956, In cash or other immediately available funds
or in a like face amount of Treasury bills maturing November 23 19c
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 tL~ 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.
0O0

-5-

206
Under this Administration* the Federal budget has been brought into
balance froa an inherited $9-1/2 billion deficit* A $1-3/4 billion surplus
last year gave m start in debt reduction. The National debt today Is
$276-3/4 billion, compared with $280 billion a year ago. Another balanced
budget is in prospect, and further debt reduction. Government deficits are,
thus, no longer a source of inflation and instability*
The Federal Reserve System has been freed to exercise its independent
judgment in the determination of monetary policies in the public interest *
The broad program of the Federal Reserve in checking the tendency toward overexpansion of credit has been helpful in keeping the pressures toward inflation
within bounds.
Bursts of inflation are too often the prelude to recession and unemployments
But if we continue present policies — with effective credit restraint, stable
prices, and a growing interest in saving —

our prospects for the sustained and

vigorous growth of our country stagger the imagination*
But in addition to higher money rates and a favorable governmental elinats
to encourage savings, it takes salesmanship — shoe leather* That is where
your organisations have shown their capacity. Ton are doing a fine job encouragli
people to save* This is not only good for your business and goed for the horn
building industry, it is good for your country,,
To reach the high goals of prosperity and well-being which are within
our grasp, we must save more to have the funds to build a new and greater
America. That is the reason why what you are doing in encouraging saving and
investing the savings soundly in new homes, is more important than ever*
• o *»

207
problems for your industry*

Without underestimating the hardships in many

cases, it is interesting to find many of ycu recognising some advantage in the
slowing down in heme building*

It gives the market a chance to absorb the

very heavy building of recent years* It is a partial brake on the rise in
building costs which would threaten seriously to narrow the market for houses*
Some other borrowers are finding their projects held back by difficulties
in getting money. This is not a pleasant experience for anybody. But there ia,
fortunately* growing understanding that these restraints are essential to avoid
inflation*

If the Federal Reserve* in effect, printed money te meet all deaaada

for money —

or even Just those that seemed desirable ~ it would cause prise

inflation* With labor fully employed, and with many scarce materials, a fnrthar
increase in activity would simply push up prices*
So the only sound way to finance more rapid economic growth is by increasing
savings* Higher money rates themselves encourage saving* Higher rates mean
that banks are offering their depositors greater inducements to save* Life
insurance becomes more attractive as insurance companies are able te raise their
dividends to policy holders* Of course* these higher rates take time before
they actually result in higher savings, but the American people have sharp
pencils, and they are today responding to these more attractive rates*
Another incentive to save is confidence in the continuing value of the
dollar*

Inflationary Government policies helped cut the purchasing power of tha

dollar from 100 cents in 1939 to $2 cents by the end of 1952* Saving under thoat
conditions was a frustrating experience*
Since 1952, however* we have enjoyed a remarkable period of price stability.
The purchasing power of the dollar has held d o s e to its value for 4-year^ ^
with a loss of only about a cent and a half*
This didn»t just happen. It reflects the determination of the Government
to help keep the dollar soimd*

- 3-

208
rate is about 7 percent of their income after taxes*
Business corporations* too, are saving about half their net earnings and
are thus able to cover a large share of their new plant and equipment expenditure
either from retained earnings or from current depreciation*
But the savings we as a people are making are still not enough to pay for
everything that we want to do* The demand is just much greater*
So people are borrowing money —

a great deal of it* As long as people

borrow money that other people have already saved, there is no great problem for
the economy. But when they try to borrow more money than is being sawed, than
the price of money —

the interest rates —

go up* Lenders have to decide which

loans they will make and which they will turn down* The banks have to decide
whether they, in turn, will borrow from the Federal Reserve to help meet the
demand. That means, in effect, creating new moneyy^liia*1 te m^m^mm9^***mT
hmfjrinjlimg awtfiajx and that is where the danger of inflation comes in* This ia
a real danger which we must not ignore*
The solution to the problem of adequate funds to sustain our tremendous
economic growth without inflation is very simple*

It is to spend a little less

and save more*
Thus, the first thing we must do is to exercise some restraint in spending —
not to try to do everything at once* Higher money rates and tight money act aa
such a restraint*

That is why the Federal Reserve System is allowing money ratea

to rise, as the demand for funds continues to outrun the supply*
When there is vigorous competition for money, as there is today* not every*
especially
one can get all the money he wants* This heavy demand for money has bit/morigap
money for home teildiagamadgpa: This is true despite the fact that mortgage
lending is still going forward at high levels*

We recognise this has mads naagr

- 2 -

203
First, there is population growth, which has jumped to a new high level*
Four million children were born last year, as against an average of two and
one-half million in the thirties* This means many more schools, more churches,
more utilities, more streets* and a greet many mere houses*
demand for food, clothing, and equipment*

It means more

It requires an expansion of prodnstiva

facilities of all kinds*
Second, there ie the amasing progress of science* The vast research
programs of business and Government have uncovered a whole nee vista of progrssa
te improve the well-being of the people*
A third factor for dynamic growth, I believe, ie the confidence both the
individual and private enterprise feel today to plan for the future* partly because
Government is providing »M encouraging economic climate, based on sound money
and sound economic policies*
In the face of these changes* plus the pay increases, America^ i^ri>?^
business has revised drastically its program of capital expenditures* We spent
$26-1/2 billion on business capital expenditures in 1952; this year, we are
spending $35 billion —

am increase of one-third in four years*

It is no wonder that our total national product is breaking all records
and that more people are working than ever before* All of this intensive
activity takes money — more than ever before in peacetime* Ute must find the
money to finance this activity without inflation — without, in effect, printing
new money*
Here is where a new day is dawning for savings*

It is fortunate that we

are a saving people* Our country ie doing a tremendous job of saving money and
applying it to Increasing our wealth and wealth-producing assets*

Individuals

are currently saving at a rate of about #20 billion a year* Despite heavy
borrowing, they are still piling up assets much faster than debts* That 120 bill*

01 n
iU

THE LCNG LOOK
Savings and loan associations have come of age*
You can be justly proud of the fact that you are the guardians of $36 billion
of the savings of the American people and that your institutions are growing at
the rate of more than $5 billion a year*
You can be equally proud that you are currently financing about 40 percent
of all new mortgage loans, making possible hundreds of thousands of new homes
across America each year*
You can be proud, also, of the influence your organization has exercised for
sound home financing* I applaud especially your efforts to improve the organization
. - y

..A

and standards of your own associations and the Home Loan Bank System*

-. ; <

They show

that you recognise the responsibility that goes with your large and growing influence
The job that you are doing has become more important than ever before to the
well-being of the people of the United States* I want to review some of the reasons*
For many years, American economic thinking, when not concerned with wars and
armaments, was colored by the depression of the 'SO's* The depression had developed
a defeatist attitude which took the form of the "mature economy11 theory* This theorj
was that this country had stopped spontaneous, vigorous, upward growth and could
make progress only by Government intervention of one kind or another* The challenge
of the frontier was seemingly gone* Population growth appeared to be leveling off*
Saving was discouraged and spending was extolled* Money appeared to be a drug on
the market* Low interest rates gave savers scant rewards*
This depression theory has just been completely exploded by the prosperity of
the oast few years* There are several convincing evidences of the change*

TREASURY DEPARTMENT
Washington

211

REMARKS BY W. RANDOLPH BURGESS, UNDER
SECRETARY OF THE TREASURY, AT THE
125TH ANNIVERSARY CONVENTION OF THE
UNITED STATES SAVINGS AND L O A N LEAGUE,
AT THE ACADEMY OF MUSIC, PHILADELPHIA,
PENNSYLVANIA, AT 10:30 A.M., THURSDAY,
NOVEMBER 15, 1956.
THE LONG LOOK
Savings and loan associations have come of age.
You can be justly proud of the fa.ct that you are the guardians
of $36 billion of the savings of the American people and that your
institutions are growing at the rate of more than $5 billion a
year.
You can be equally proud that you are currently financing
about 40 percent of all new mortgage loans, making possible
hundreds of thousands of new homes across America each year.
You can be proud, also, of the influence your organization
has exercised for sound home financing. I applaud especially
your efforts to improve the organization and standards of your
own associations and the Home Loan Bank System. They show that
you recognize the responsibility that goes with your large and
growing influence.
The job that you are doing has become more important than
ever before to the well-being of the people of the United States.
I want to review some of the reasons.
For many years, American economic thinking, when not concerned
with wars and armaments, was colored by the depression of the '50's.
The depression had developed a defeatist attitude which took the
form of the "mature economyft theory. This theory was that this
country had stopped spontaneous, vigorous, upward growth and
could make progress only by Government intervention of one kind or
another. The challenge of the frontier was seemingly gone.
Population growth appeared to be leveling off. Saving was discouraged and spending was extolled. Money appeared to be a drug
on the market. Low interest rates gave savers scant rewards.
This depression theory has just been completely exploded by
the prosperity of the past few years. There are several
convincing evidences of the change.
H-1209

212
- 2 First, there is population growth, which has jumped to a new
high level. Four million children were born last year, as
against an average of two and one-half million in the thirties.
This means many more schools, more churches, more utilities, more
streets, and a great many more houses. It means more demand for
food, clothing, and equipment. It requires an expansion of
productive facilities of all kinds.
Second, there is the amazing progress of science. The vast
research programs of business and Government have uncovered a
whole new vista of progress to improve the well-being of the
people.
A third factor for dynamic growth, I believe, is the confidence both the individual and private enterprise feel today to
plan for the future, partly because Government is providing an
encouraging economic climate, based on sound money and sound
economic policies.
In the face of these changes, plus the pay increases, American
business has revised drastically its program of capital expenditures. We spent $26-1/2 billion on business capital expenditures
in 1952; this year, we are spending $35 billion — an increase of
one-third in four years.
It is no wonder that our total national product is breaking
all records and that more people are working than ever before.
All of this intensive activity takes money — more than ever
before in peacetime. We must find the money to finance this
activity without inflation — without, in effect, printing new
money.
Here is where a new day is dawning for savings. It Is
fortunate that we are a saving people. Our country is doing a
tremendous job of saving money and applying it to increasing our
wealth and wealth-producing assets. Individuals are currently
saving at a rate of about $20 billion a year. Despite heavy
borrowing, they are still piling up assets much faster than debts.
That $20 billion rate is about 7 percent of their income after
taxes.
Business corporations, too,are saving about half their net
earnings and are thus able to cover a large share of their new
plant and equipment expenditures either from retained earnings or
from current depreciation.
But the savings we as a people are making are still not enough
to pay for everything that we want to do. The demand is just
much greater.
So people are borrowing money — a great deal of it. As long
as people borrow money that other people have already saved, there
is no great problem for the economy. But when they try to borrow

- 3more money than is being saved, then the price of money -21fc3e
interest rates — go up. Lenders have to decide which loans
they will make and which they will turn down. The banks have to
decide whether they, in turn, will borrow7 from the Federal
Reserve to nelp meet the demand. That means, in effect, creating
new money, and that is where the danger of inflation comes in.
This is a real danger which we must not ignore.
The solution to the problem of adequate funds to sustain our
tremendous economic growth without inflation is very simple. It
is to spend a little less and save more.
Thus, the first thing we must do is to exercise some
restraint in spending — not to try to do everything at once.
Higher money rates and tight money act as such a restraint. That
is why the Federal Reserve System is allowing money rates to rise,
as the demand for funds continues to outrun the supply.
When there is vigorous competition for money, as there is
today, not everyone can get all the money he wants. This heavy
demand for money has hit especially mortgage money for home
building. This is true despite the fact that mortgage lending is
still going forward at high*levels. We recognize this has made
many problems for your industry. Without underestimating the
hardships in many cases, it is interesting to find many of you
recognizing some advantage in the slowing down in home building.
It gives the market a chance to absorb the very heavy building of
recent years. It is a partial brake on the rise in building costs
which would threaten seriously to narrow the market for houses.
Some other borrowers are finding their projects held back by
difficulties in getting money. This is not a pleasant experience
for anybody. But there is, fortunately, growing understanding
that these restraints are essential to avoid inflation. If the
Federal Reserve, in effect, printed monejr to meet all demands for
money — or even just those that seemed desirable — it would
cause price inflation. With labor fully employed, and with many
scarce materials, a further increase in activity would simply
push up prices.
So the only sound way to finance more rapid economic growth
is by increasing savings. Higher money rates themselves encourage
saving. Higher rates mean that banks are offering their
depositors greater inducements to save. Life insurance becomes
more attractive as insurance companies are able to raise their
dividends to policy holders. Of course, these higher rates take
time before they actually result in higher savings, but the
American people have sharp pencils, and they are today responding
to these more attractive rates.
Another incentive to save is confidence in the continuing
value of the dollar. Inflationary Government policies helped cut
the purchasing power of the dollar from 100 cents in 1939 to

52 cents by the end of 1952.
i frustrating experience.

- 4 Saving under those conditions was

Since 1952, however, we have enjoyed a remarkable period of
price stability. The purchasing power of the dollar has held
close to its value for 4 years — with a loss of only about
a cent and a half.
This didn!t just happen. It reflects the determination of
the Government to help keep the dollar sound.
Under this Administration, the Federal budget has been
brought into balance from an inherited $9-1/2 billion deficit.
A $1-3/4 billion surplus last year gave a start in debt reduction.
The National debt today is $276-3/4 billion, compared with
$230 billion a year ago. Another balanced budget is in prospect,
and further debt reduction. Government deficits are, thus, no
longer a source of inflation and instability.
The Federal Reserve System has been freed to exercise its
independent judgment in the determination of monetary policies
in the public interest. The broad program of the Federal Reserve
in checking the tendency toward overexpansion of credit has been
helpful in keeping the pressures toward inflation within bounds.
Bursts of inflation are too often the prelude to recession
and unemployment. But if we continue present policies — with
effective credit restraint, stable prices, and a growing interest
in savings -- our prospects for the sustained and vigorous growth
of our country stagger the imagination.
But in addition to higher money rates and a favorable
governmental climate to encourage savings, it takes salesmanship shoe leather. That is where your organizations have shown their
capacity. You are doing a fine job encouraging people to save.
This is not only good for your business and good for the home
building industry, it is good for your country.
To reach the high goals of prosperity and well-being which
are within our grasp, we must save more to have the funds to
build a new and greater America. That is the reason why what
you are doing in encouraging saving, and investing the savings
soundly in new homes, is more important than ever.

oOo

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE
Thursday, November 15, 1956.

215
H-121C

Commodity

Tariff-Rate Quotas;
Cream, fresh or sour Calendar Year

1,500,000

Gallon

61|2

Whole milk, fresh or sour Calendar Year

3,000,000

Gallon

1,937

Cattle, less than 200 lbs. each. 12 mos. from
April 1, 1956

200,000

Head

U,883

Cattle, 700 lbs. or more each .. Oct. 1, 1956 (other than dairy cows)
Dec. 31* 1956

120,000

Head

l,9itlt

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

35,196,575

Pound

Quota Filled

Tuna fish April 16, 1956 •

28,757,393

Pound

22,489,317

150,000,000
12 mos. from
Sept. 15, 1956 60,000,000

Pound
Pound

7,113,600
2,438,518

Walnuts Calendar Tear

5,000,000

Pound

Quota Filled

Alsike clover seed 12 mos. from

2,500,000

Pound

54,842

80,000,000

Pound

3,500,000

Pound

1,709,000

Pound

182,280,000
3,720,000

Pound
Pound

Dec. 31, 1956
White or Irish potatoes:
Certified Seed
Other

July 1, 1956
Peanut Oil 12 mos. from
July 1, 1956
Woolen Fabrics Oct. 1, 1956Dec. 31, 1956

1,948,600

Absolute Quotas:
Peanuts, whether shelled, not
shelled, blanched, salted, prepared, or preserved (including
roasted peanuts, but not
12 mos. from
including peanut butter)
Aug. 1, 1956
Rye, rye flour, and rye meal .. 12 mos. from
July 1, 1956
Canada
Other Countries
(1)

Imports through November 14, 1956.

Quota Filled

(1:
182,212,914

MEDIATE RELEASE
arsday, November 15, 1956

216

TREASURY"DEPARTMENT
Washington

H-1210

Connrodity

Period and Quantity

Unit
:
of
:Imports as of
:Quantity:Nov. 3. 1956

Tariff-Rate Quotas:
1,500,000

Gallon

642

Whole milk, fresh or sour ...... Calendar Year 3,000,000

Gallon

1,937

Cattle, less than 200 lbs. each. 12 mos. from
April 1, 1956

200,000

Head

4,883

Cattle, 700 lbs. or more each .. Oct. 1, 1956 - 120,000
(other than dairy cows)
Dec. 31, 1956

Head

1,944

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

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

35,196,575

Pound

Quota Filled

28,757,393

Pound

22,489,317

150,000,000
60,000,000

Pound
Pound

7,113,600
2,438,518

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

5,000,000

Pound

Alsike clover seed 12 mos. from
July 1, 1956

2,500,000

Pound

July 1, 1956

80,000,000

Pound

Dec. 31, 1956

3,500,000

Pound

1,948,600

1,709,000

Pound

Quota Filled

Rye, rye flour, and rye meal ,. 12 mos. from
July 1, 1956
182,280,000
Canada
3,720,000
Other Countries

Pound
Pound

182,212,914^

Tuna fish ..•„••...• April 16, 1956 •
Dec. 31, 1956
White or Irish potatoes:
Certified Seed
Other

12 mos. from
Sept. 15, 1956

Quota Filled

54,842

Peanut Oil 12 mos. from
Woolen Fabrics Oct. 1, 1956Absolute Quotas:
Peanuts, whether shelled, not
shelled, blanched, salted, prepared, or preserved (including
roasted peanuts, but not
12 rrc>s. from
including peanut butter) ..... Aug. 1, 1956

(1) TTnpnrt^ ^muph November 14, 1956.

-<2COTTON WASTES
(In pounds)

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

Country of Origin
.

:
Total Imports
: Established s
Imports
t Sept. 20, 1956, to : 33-1/3% of : Sept. 20, 1956
: Nov. Ik9 1956
: Total Quota : to Nov. 14, 1956

United Kingdom ..... 4,323,457
Canada
. . ,
239,690
France .
227,420
British India . . . . . .
69,627
Netherlands
68,240
Switzerland
44,388
Belgium
38,559
Japan
341,535
L»mna . o * « o o « o o .

•*• (9 ****»**•

Egypt o
Cuba
Germany

8,135
6,544
76,329

j. b a X y

o e « .

28,314
239,690

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

28,3U

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

22,775

25,443
7,088

22,775

290,779

1,599,886

51,089

<£m\. 9 <Ly J

5,482,509

1,441,152

TREASURY DEPARTMENT
Washington
H-1211
IMMEDIATE RELEASE,
Thursday, November 15, 1956.
Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the Presidents 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 Ik. 1956
.
Country of Origin.

Established Quota

Egypt and the AngloEgyptian Sudan • • •
Peru
British India
China
Mexico • o . o . . • •

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

124,709
8,883,259
600,000

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

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

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
2/ Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less than 3/4"
Imports Sept. 20. 19 56. to Nov. 3. 1956

Cotton 1-1/8" or more- jgaJtadancpdtiyT^
Imports Aug . 1. 1956.. to Nov. 3. 1956. incl«

Established Quota (Global)

Imports

Established Quota (Global)

Imports

70,000,000

152,130

45,656,420

3,095,041

Imports

H-1211

IMMEDIATE RELEASE,
Thursday, November 15, 1956.

Established Quota

Egypt and the AngloEgyptian Sudan 0
XerU

o . . . . .

British India
\m*lmmm.iimm

e
O

.Anejcico . 0 . . « © ©
OraZiX-L

e »

Union of Soviet
Socialist Republics
Argentina • » . . . .
liaiUl

Ecuador

.......

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

Imports

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

124,709
8,883,259
600,000

475,124
5,203
237
9,333

j.raq

Established Quota

Imports

752
e

. . . . . . *

British East Africa
Netherlands E. Indies.
Barbados • . . . . . »
l/0ther British W. Indies
Nigeria • • • • • •
ier British W. Africa
ier French Africa . .
Algeria and Tunisia •

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

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago
2/ Other than Gold Coast and Nigeria.
2/ Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less than 3/4"
Imports Sept. 20, 19 56, to Nov. 3* 1956

_ /_
#sv
Cotton 1-1/8" or more > K «.••:•:«-.;•.-*.•:« A*.****.:** -^•.•.•.•.f
Imports Aug . 1. 1956.. to Nov. 3. 1956, incl.

Established Quota (Global)

Established Quota (Global) Imports

70,000,000

45,656,420 3,095,041

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 VALUE2 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 countries2 United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy.

Country of Origin
United Kingdom •
Canada • • • . •
France
British India •
Netherlands • .
Switzerland . .
Belgium « . . .
Japan . . . . .
China • . « 0 0
.
6
*
9
Egypt
Cuba . . © e
Germany o . .
Italy . o

. .
. 0
0 o
• 0
0 e

. .
0 o

Established
TOTAL QUOTA

t
Total Imports
% Sept. 20, 1956, to
: Nov. 14, 1956

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

28,314
239,690

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

Established %
ImportsTJ
33-1/3$ of : Sept. 20, 1956
Total Quota 1 to Nov> 14* 1956
1,441,152

28,314

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

22,775

25,443
7.088

22,775

290,779

1,599,886

51,089

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Thursdays November 159 1956.

2?|J

H-1212

The Bureau of Customs announced today the following preliminary
figures showing the imports for consumption from January 1, 1956, to
November 3, 1956, inclusive, of commodities for which quotas were
established pursuant to the Philippine Trade Agreement Revision Act of
1955:

Commodity

Buttons

: Established Annual
:
Quota Quantity
807,500

Imports as of
Nov. 3, 1956
Gross

621,833

Cigars 190,000,000

Number

Coconut Oil U25,600,000

Pound

1^7,896,296

Cordage 6,000,000

Pound

3,9lU,231

(Refined
Sugars
(Unrefined
Tobacco 6,175,000

3,389,835

17,669,700
1,90U,000,000

Pound
1,827,693,712
Pound

U,ii07,39i*

TREASURY DEPARTMENT
Washington

22.
IMMEDIATE RELEASE,
Thursday 5 November 15, 1956.

H-1212

1955:
i
% Unit .
: Established Annual %
of
s Imports as of
;
Quota Quantity
§ Quantity s Nov. 3, 1956

Commodity

Buttons .•
Cigars

o . « e e . . . c e o e o e a o . a

o o e . . . . o o . a .

Coconut Oil
Cordage

. . . . . .

. . . . . . . .

. . . . 9 . . .

9 e 0 . 6 e « e e e e a c o e

(Refined

. 0 0 . 9 9 .

• o e o 6

0 9 0 9 . 0 9 .

Number

U25,6oo,ooo

Pound

1U7,896,296

6,000,000

Pound

3,9lU,231

. . . . . .

3,389,835

17,669,700
Pound
1,827,693,712

. * o • o e a

. . . . . .

621,833

190,000,000

1,90U,000,000
(Unrefined ,..

Gross

....9

Sugars
Tobacco

807,500

6,175,000

Pound

U,U07,39U

TREASURY DEPARTMENT
w&tsm

223
WASHINGTON, D.C.

IMMEDIATE RELEASE,
rferrdayj Oo-fcobor 1$, 1956.

II 11QO
.

Oc&Acy

— /"
195^,
market transactions

During
in direct and guaranteed securities of the

government for Treasury investment and otheraccounts resulted in net purchases by the
Treasury Department of -r-'s ''?7", "' ~

0O0

TREASURY DEPARTMENT

WASHINGTON, D.C.

IMMEDIATE RELEASE,
Thursday. November 15, 195o«

H-1213

During October 1956, 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 $56,176,500.

oOo

22''
IMMEDIATE RELEASE,
Friday, November l6j 1956,
The Treasury Department announced today an offering of 3-lA percent
Tax Anticipation Certificates of Indebtedness, maturing June 2k, 1957,
and an offering of 3-lA percent/Treasury Certificates of Indebtedness,
maturing October 1, 1957, la exchange for the $9,083 million of 2-5/8
percent certificates of indebtedness maturing December 1, 1956. Both new
issues will be dated December 1, 1956. Cash subscriptions will not be
received.
^
The new 3-lA perceat^Tax Anticipation Certificates of Indebtedness,
which will carry one interest coupon payable on June 2k9 1957, will be
receivable at par and accrued Interest to maturity in payment of income
and profits taxes due on June 15, 1957* In the case of the new 3-lA P*rcent^fertificates of indebtedness, two interest coupons payable April 1
and X)ctober 1, 1957, will be attached.
The subscription books will be open November 19 through Movember 21
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, Movember 21,
will be considered as timely.

O rs

TREASURY DEPARTMENT

Cct

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

IMMEDIATE RELEASE,
Friday, Movember 16, 19gb.

,
r

'" "

The Treasury Department announced today an offering
of -3-1/4 percent Tax Anticipation Certificates of
Indebtedness, maturing June 24, 1957, and an offering ox
3-1/4 percent Treasury Certificates of Indebtedness,
maturing October 1, 1957, ^exchange * ° r ™ f b g ^ ; s
mi"1 lion of 2-5/8 percent certificates o* lnaeDtecin^s
maturing December I, 1956. Both new issues will oe
dated December 1, 1955. Cash suoscripoions »/ui uot
be received.
The new 3-1A percent June Tax Anticipation
Certificates of Indebtedness, which will carry one
interest coupon payable on June 24, 1957, will be
receivable at par and accrued interest to maturity in
oavment of income and profits taxes due on June ±5,
1957
In the case of the new 3-1/- percent Octooer
Certificates of Indebtedness, two interest coupons
payable April 1 and October 1, 1957, will oe attached.
The subscription books will be open November 19
through November 21 for this exchange offering. Any
subscription for either issue addressed to a federal
Reserve Bank or Branch, cr to the Treasurer oi tne
United States, and placed in the mail before midnight
Wednesday, November 21, will be considered as tirne^,.

oOo

.*' [/o

,y*

21
/-/- /ml /J

Hungarian refugees entering the United States i n the next few weeks
will be admitted with a minimum of Custcms formalities through
a specially created Customs station at Camp Kilmer, New Jersey,
Commissioner of Customs Halph Kelly announced today.

occupy barrack buildings at Camp Kilmer, which is near the city
of New Brunswick, N.J.
Commissioner Kelly said it had been arranged for Customs Collector
Frederick Peters at Philadelphia to send Customs inspectors to Camp
Kilmer for temporary service in connection with the refugee movement.
The refugees will be briefed on requirements of the American Customs
before they leave Europe.

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Friday, November 16, 1956.

H-I215

Hungarian refugees entering the United States in
the next few weeks will be admitted with a minimum of
Customs formalities through a specially created Customs
station at Camp Kilmer, New Jersey, Commissioner of
Customs Ralph Kelly announced today.
The refugees will occupy barrack buildings at
Camp Kilmer, which is near the city of New Brunsv;ick,
New Jersey.
Commissioner Kelly said it had been arranged for
Customs Collector Frederick Peters at Philadelphia to
send Customs inspectors to Camp Kilmer for temporary
service in connection with the refugee movement.

The

refugees will be briefed on requirements of the American
Customs before they leave Europe.

0O0

00 Q

RELEASE A. K. NEWSPAPERS,
Tuesday, November 20, 1956.

The Treasury Department announced last evening that the tenders for #1,600,000 (
or thereabouts, of 90-day Treasury bills to be dated November 23, 1956, and to mature
February 21, 1957, which were offered on Movember 1$, were opened at the Federal Resi
Banks on November 19.
The details of this issue are as follows:
Total applied for - $2,k05,ii77,000
Total accepted
- 1,600,387,000

(includes $295,810,000 entered on a
noncompetitive basis and accepted ia
full at the average pries shown below)

Range of accepted competitive bide: (Excepting three tenders totaling $1,825,0
High * 99*260 Equivalent rate of discount 2.960$ per annum
M
Low
- 99.23b
* «
«
Avsrage - 99.239 • * n * 3.0U3JJ "

3.06M

•

(20 percent of the amount bid for at the low pries was accepted)
Federal Reserve
District

Total
Applied for

Total
Accepted

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

1
55,683,000
1,679,8148,000
29,755,000
9l*,2la,000
27,902,000
27,299,000
239,869,000
23,663,000
9,977,000
k6.729,000
1«2,007,000
128,50luOOO

|2,1»05,1»77,000

$1,600,387,000

TOTAL

1.5,683,000
963,398,000
1U,755,000
9k, 21(1,000
27,902,000
27,099,000
182,669,000
23,663,000
9,977,000
U»,129,000
38,767,000
128.10li.000

TREASURY DEPARTMENT
WASHINGTON, D.C.
ffiLEASE A. M. NEWSPAPERS,
hiesday, November 20, 1956.

H-1216

The Treasury Department announced last evening that the tenders for $1,600,000,000,
or thereabouts, of 90-day Treasury bills to be dated November 23, 1956, and to mature
February 21, 1957, which were offered on November 15, were opened at the Federal Reserve
Banks on November 19 •
The details of this issue are as follows:
Total applied for - $2,1*05,1*77,000
Total accepted
- 1,600,387,000

(includes $295,810,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids: (Excepting three terriers totaling $1,825,000)
- 99*260 Equivalent rate of discount 26960>f> per annum

High
Low

- 99.23U

Average

- 99.239

"
n

«
»

3#o6Uj5 «
3#Oii3# »

«
«

(20 percent of the amount bid for at the low price was accepted)
Total
Applied for

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

TOTAL

$$,683,000

1,679,81(8,000
29, 755,000
°U,211,000
902,000
27,
299,000
27,
869,000
239,
663,000
23,
977,000
9,
729,000
16,
007,000
U2,
128, 5oU,ooo
$2,U05,1(77,000

Total
Accepted
$

1(5,683,000
963,398,000
H;,755,000
9l(, 2Ul,000
27,902,000
27,099,000
182,669,000
23,663,000
9,977,000
bk,129,000
38,767,000
128,10^,000
$1,600,387,000

-3 -

*>91
mAm

or by any local taxing authority. For purposes of taxation the amount of discounl
at which Treasury bills are originally sold by the United States is considered to
be interest. Under Sections k$h (b) and 1221 (5) of the Internal Revenue Code of
195U the amount of discount at which bills issued hereunder are sold is not
considered to accrue until such bills are sold, redeemed or otherwise disposed of
and such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between the price paid
for such bills, whether on original issue or on subsequent purchase, and the
amount actually received either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. hi8, 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 -

232

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 November 29, 1956 , in cash or other immediately available funds
or in a like face amount of Treasury bills maturing November 29, 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 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 princip*
or interest thereof by any State, or any of the possessions of the United States,

23;
«}BBfflK
TREASURY DEPARTMENT
Washington
A. M.
E M RELEASE/ OTRMXMS NEWSPAPERS,
Wednesday, November 21, 1956
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 29, 1956 , in the amount of
$ 1,601,205,000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated November 29, 1956 , and will mature February 28, 1957 , 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,/tara o!clock p.m., Eastern Standard time, Monday, November 26, 1956

55~

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

RELEASE A.M. NEWSPAPERS,
Wednesday, November 21,1956.

H-1217

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 29, 1956,
in the amount of $1,601,205,000, 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 29, 1956,
and will mature February 28, 1957, 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 26, 1956.
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 ovm account. Tenders will be received
without deposit from 1 icorporated banks and trust companies and from
responsible and recognised dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bilis 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 November 29, 1956, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing November 29, 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 195^. The bills are subject
to estate, inheritance, gift or other excise taxes, whether Federal
or State, but are exempt from all taxation now or hereafter imposed
on the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States is considered to
be interest. Under Sections k5k (b) and 1221 (5) of the Internal
Revenue Code of 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 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.
0O0

r* n r

- 6of rectification tnrough tax rejpkfction in the excis
have a i w e r o rarer of pr>erfTty when co:

ered

nee to

ot^er tax problems.
As you will remember, you have requested the views of the
Commissioner of Internal Revenue with respect to several items.
These are mentioned in the report of the Subcommittee to the House
Committee on Ways and Means as Item No* XII. It was there pointed
out that the Internal Revenue Service was taking steps to establish
a Committee to study and report to the Commissioner on all uf lliu'—'
OUM^E-

m^pecVmT 6T excise tax administration and enforcement. I

understand that the Commissioner has made an interim report on the
workt in this area and he is here today to give a further repcr t#

-5 -

ton

convinced that special arrangements should be proposed merely becaus(
a firm considers it otherwise desirable to do business in a certain
fashion M f which increases its tax burden, your Committee might
want to review the possible impact of the change on this important
outlet for savings.
TJLIR .

1 p.zc&^^rrt-^^

~ wtTi<Hr~tlTe^r eastnry

does not believe necessary or desirablei

These items were discussed

in practically all cases at the previous hearings at whit,

appeared

jund I do not think it necessary to go over them aJU.>tfi again at this
/time. | However, I would like to repeat/ the geneprfl position of the

yy^

\ Treasury Department that I have stated in my ^previous appearances

J
j before the Subcommittee.

As you remember,/the Department has been

i
|

[ /
opposed to action which would result pn/a loss of revenue. We are
The excise
system,
however,
is oi)£y
dne the
partpresent
of the excise
revenuesystem,
system,
not
satisfied
lin any
great degree
Witffi.
inequities and inconsistencies

and we believe that there are
y

which also could be rectified in the/ income tax field by actions
which would lose revenge. £t the present time, the budgetary
situation is such t^-nat revenue reductions are inconsistent witji
a sound Governmental fiscal policy.! The estimated budget surplus

for_fiscal 1^57 is small and provides no lee-way for tax reduction.
In any cas/, we believe that revenue losing measures should be
conside/ed with reference to the tax system as a whole rather than
with/respect to excises alone.

Something that appears as worthy

m 4 .

of the bill, there has been some representation from manufacturers
who feel that the availability of^ simplified and more extensive
system for passing nontax~paid items forward through the distribution
level may subject them to competitive pressures to sell tax-free when
they would prefer to seil tax-paid and pass on any credits or refunds
after the dealer provides proof of a sale of a tax-exempt nature.
Since manufacturers are liable for tax on tax-free sales to dealers
where adequate proof of the final tax-free sale by the dealer is not
forthcoming, manufacturers are very conscious of the problems of
securing such final proof. We are/nab sun'C that the liberalization
in H.R. 12298 is undesirable, but we think further thought should be
given to the matter. In this connection, the testimony of witnesses
before your Committee should be very helpful.
In the documentary stamp tax area, H.R. 12298 makes a big step
forward, we believe, by getting away from the fictitious base of par
value and levying instead a tax related to the sales price of stocks.
present system is advantageous to taxpayers, obviously, where stocks
sell for much more than their par value. The mutual investment
companies would Jiave to pay considerable additional tax under the
proposal because of the change of the base from par to actual value.
Wrr&er*^^ companies
„ f^yw$/tsi&* ~^

believe that the sev»rmdr Imymr distribution systenuwhicK? they find v.
advantagwus^places tnem at a^iisadvantage under the proposal as
compared with the noninvestment companies. While we are not ^^4^

"2 -

<<38
"sold at retail11 is equivalent to "sales for purposes other than res*
A recent decision by the Eighth Circuit Court of Appeals in the case
Nathan Gellman, et. al.,

held that sales of jewelry and luggage to

fraternal and church organizations, taverns, concessionaries, and
operators of games for use as prizes, and to industrial firms for use
as premiums and awards to employees were not "retail sales" under the
Internal Revenue Code.

Thus such sales were considered exempt even

tfifcugh^tne last sale$of the articles.

Although the Service hasr

announced that the decision will not be considered as a precedent for
the disposition of other cases involving a similar factual situation,
we believe any possible uncertainty should be resolved by codifying
the long standing Treasury interpretation of the law.

To leave the

issue unresolved would lead to the future possibility of some end sal
of taxed items being untaxed.

H.R. 121^.21, incidentally, contains a

provision to achieve the result desired by the Treasury.
One part of H.R. 12298 involves reformulation of the system
of making exempt sales and the provision of credits and refunds for
tax-paid items sold for exempt purposes.

The desired objective was

to provide a more uniform method of treatment of the several
categories of exempt sales while at the same time providing somewhat
greater freedom than is now available for the transmittal of tax
exempt articles between manufacturer and the final purchaser. Sales
by a manufacturer to a dealer on a tax-free basis upon representation
of intent by the latter to sell for a tax-free purpose would, however, be at the option of the manufacturer.

Since the public releasf

y * -

- 2 Service has provided some suggestions covering matters not now in

the bill. / ^ I\~3o-jao4~-14 j*e»~to~^e44 *4fres^*rte«s-~fveeo msae mhrM
not all of them o^n be so considered.

Some of tj^j&»^'T am sure, an
•^m*****

firm enough to be in txNks category, jjutnn other cases the suggestio

consti/ute things that are jfifo*£$r in the nature of ideas for the other
/

stafy members to consj^Ter and disciTs^s to see if they might want to
suggest them to--your Committee. We feel t^t this approach has the
/ y*' -s.

adyantaga^ of providing a free interchange of ideas^-wiihout necessari!
mr,3*&3ViXL »»-'»-<3r*!S*")

*"*' "<H-1»I«. . , _ . r~*<*omm,^ ^^^**m~ "*

~to consider them as "something that has been "Tormatts^A,
The meetings that have already been held between the staff members ai
those that will be held in the future should provide a very fruitful
sifting of these ideas. # &L.-..*>,. ^ i^y^L /^c^ y/^.yl I* y%~»*L* *
$-f<svij<\^ /Ltf^^vMvwJ*^-'^ -^ ~f(y~ Us,>*?;*</

y In connection with the discussion of new ideas and matters that
w^ere not considered previously, I might mention that considerable
attention is being given to H.R. 12l|21 .which was introduced by
Ivir. Simpson towards the end o£*July. This bill relates only to reta:
excises. Of course, these are considered in H.R. 12298, but I think
we all acknowledge they may not have been considered in as much deta
as some of the other excises._^ / y
y?t L* ~JL*?t iy^\ IM U fd^tj "7< >~>V
Although T iln vw\\\ mi Ph to enumerate all the detailed technical
A
points being brought to the attention of your staff members, I would
like to mention a few things which we believe merit particular consideration. One of these concerns the definition of retail sales foi
purposes of the excises on furs, toilet preparations, etc. The Trea!
Department has held that the imposition of tax on these articles whei

-M*

Mr. Chairman, I appreciate the opportunity of appearing before
^ \il%c ^"i* J*#¥U***+lf **/-• £/**>*** n*Gtr fiAm46m*%

the zmmmmmx&mW*. Subcommittee^of the Committee on Ways and Means as
it begins these hearings looking toward the completion of its study
of excise tax problems.
H.R. 12298ywhich was introduced by Chairman Forand following the
review of the recommendations of the Subcommittee by the full Comraitt
earlier this year,was based on a great deal of comprehensive work by
the Subcommittee, its staff, and the Treasury Department. The Treasu
is presently interested in knowing the opinion of the taxpayers concerned about the provisions of the bill. For this reason, we welcome
the hearings which begin today.
In addition to these hearings, I understand that your staff is ?
preparing for your consideration several new matters for possible
addition to the bill as well as some suggestions for better ways of
doing things that were considered last year and are now incorporated

in the bill. Wo-have saaae 6tt@ggAtion^--trr-fflnrke ^iid Undoubtedly t
witnesses at the hearings will have some further awitnertiiiMiMu
A
Although this is the beginning of formal hearings of this Subcommittee, your staff, the staff of the Joint Committee on Internal
Revenue Taxation, and staff members of the Treasury and Internal
Revenue Service have already been at work for sometime on this
- i

matter,

tS-

) ;•••* ,.> • *\Lt4iL.Ay$

jawtrtechnical e^llclgius of the Internal Revenue Service on

H.R. 12298 have been delivered to jrour staff. In addition, the

/ J

• ()

Mr. Chairman, I appreciate the opportunity ^ «^P
w
the Subcommittee on Excise Tax Technical and Administrative
Problems of the Committee on Ways and Means as it begins these
hearings looking toward the completion of its study of excise tax
problems.
H.R. 12298, which was introduced by Chairman Forand following
the review of the recommendations of the Subcommittee by the full
Committee earlier this year, was based on a great deal of
comprehensive work by the Subcommittee, its staff, and the Treasury
Department. The Treasury is presently interested in knowing the
opinion of the taxpayers concerned about the provisions of the
bill. For this reason, we welcome the hearings which begin today.
In addition to these hearings, I understand that your staff
is preparing for your consideration several new matters for possible
addition to the bill as well as some suggestions for better ways of
doing things that v/ere considered last year and are now incorporated
in the bill. Undoubtedly the witnesses at the hearings will have
some further recommendations.
Although this is the beginning of formal hearings of this
Subcommittee, your staff, the staff of the Joint Committee on
Internal Revenue Taxation, and staff members of the Treasury and
Internal Revenue Service have already been at work for some time
on this matter. Technical comments of the Internal Revenue
Service on H.R. 12298 have been delivered to your staff. In
addition, the Service has provided some suggestions covering
matters not now in the bill. The meetings that have already been
held between the staff members and those that will be held in the
future should provide a very fruitful sifting of these ideas, to
determine which ones should be made as specific recommendations
to the Committee.
In connection with the discussion of new ideas and matters that
were not considered previously, I might mention that considerable
attention is being given to H.R. 12421, which was introduced by
Mr. Simpson towards the end of last July. This bill relates only
tc retail excises. Of course, these are considered in
H.R. 12298, but I think we all acknowledge they may not have been
considered in as much detail as some of the other excises.
H-1218

24u
TREASURY DEPARTMENT
Washington

Statement by Mr. Dan T. Smith, Special
Assistant to the Secretary of the Treasury,_
before the Subcommittee on Excise Tax Tecnmcal
and Administrative Problems, Ways and Means
Committee, House of Represenatives, 10 A.M., tt&i,
•

,-»mTcn was introduced by Chairman Forand following the

review of the recommendations of the Subcommittee by the full Comraitt
earlier this year,was based on a great deal of comprehensive work by
the Subcommittee, its staff, and the Treasury Department.

The Treasu

is presently interested in knowing the opinion of the taxpayers concerned about the provisions of the bill.

For this reason, we welcome

the hearings which begin today.
In addition to these hearings, I understand that your staff is t
preparing for your consideration several new matters for possible
addition to the bill as well as some suggestions for better ways of
doing things that were considered last year and are now incorporated
in the bill.

We-feavp nmp tningirationo to ma-he and Undoubtedly the _

witnesses at the hearings will have some further ^ f ^ r ^ ^ * * " ^ * ^
Although this is the beginning of formal hearings of this Subcommittee, your staff, the staff of the Joint Committee on Internal
Revenue Taxation, and staff members of the Treasury and Internal
Revenue Service have already been at work for sometime on this
matter. <&e-^echnical e»»i1ui»us of the Internal Revenue Service on
H.R. 12298 have been delivered to jrour staff.

In addition, the

241
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 Representatives, 10 A.M., EST, Monday,
November 26, 1956.
Mr. Chairman, I appreciate the opportunity of appearing before
the Subcommittee on Excise Tax Technical and Administrative
Problems of the Committee on Ways and Means as it begins these
hearings looking toward the completion of its study of excise tax
problems.
H.R. 12298, which was introduced by Chairman Forand following
the review of the recommendations of the Subcommittee by the full
Committee earlier this year, was based on a great deal of
comprehensive work by the Subcommittee, its staff, and the Treasury
Department. The Treasury is presently interested in knowing the
opinion of the taxpayers concerned about the provisions of the
bill. For this reason, we welcome the hearings which begin today.
In addition to these hearings, I understand that your staff
is preparing for your consideration several new matters for possible
addition to the bill as well as some suggestions for better ways of
doing things that were considered last year and are now incorporated
in the bill. Undoubtedly the witnesses at the hearings will have
some further recommendations.
Although this is the beginning of formal hearings of this
Subcommittee, your staff, the staff of the Joint Committee on
Internal Revenue Taxation, and staff members of the Treasury and
Internal Revenue Service have already been at work for some time
on this matter. Technical comments of the Internal Revenue
Service on H.R. 12298 have been delivered to your staff. In
addition, the Service has provided some suggestions covering
matters not now in the bill. The meetings that have already been
held between the staff members and those that will be held in the
future should provide a very fruitful sifting of these ideas, to
determine which ones should be made as specific recommendations
to the Committee.
In connection with the discussion of new ideas and matters that
were not considered previously, I might mention that considerable
attention is being given to H.R. 12421, which was introduced by
Mr. Simpson towards the end of last July. This bill relates only
to retail excises. Of course, these are considered in
H.R. 12298, but I think we all acknowledge they may not have been
considered in as much detail as some of the other excises.
H-1218

- 2 Although it is not worthwhile now to enumerate all the <-^*
detailed technical points being brought to the attention of your
staff members, I would like to mention a few things which we
believe merit particular consideration. One of these concerns
the definition of retail sales for purposes of the excises on
furs, toilet preparations, etc. The Treasury Department has
held that the imposition of tax on these articles when "sold at
retail" is equivalent to "sales for purposes other than resale."
A recent decision by the Eighth Circuit Court of Appeals in the
case of NathaniGollman, et. _al., held that sales of jewelry and
luggage to "fraternal"and church organizations, taverns,
concessionaires, and operators of games for use as prizes, and to
industrial firms for use as premiums and awards to employees were
not "retail sales" under the Internal Revenue Code. Thus such
sales were considered exempt even though they are the last
sales of the articles. Although the Service has announced that
the decision will not be considered as a precedent for the
disposition of other cases involving a similar factual situation,
we believe any possible uncertainty should be resolved by codifying
the long standing Treasury interpretation of the law. To leave the
issue unresolved would lead to the future possibility of some end
sales of taxed items being untaxed. H.R. 12421, incidentally,
contains a provision to achieve the result desired by the Treasury.
One part of H.R. 12298 involves reformulation of the system
of making exempt sales and the provision of credits and refunds for
tax-paid items sold for exempt purposes. The desired objective was
to provide a more uniform method of treatment of the several
categories of exempt sales while at the same time providing somewhat greater freedom than is now available for the transmittal of
tax exempt articles between manufacturer and the final purchaser.
Sales by a manufacturer to a dealer on a tax-free basis upon
representation of intent by the latter to sell for a tax-free
purpose would, however, be at the option of the manufacturer.
Since the public release of the bill, there has been some
representation from manufacturers who feel that the availability of
a simplified and more extensive system for passing nontax-paid
items forward through the distribution level may subject them to
competitive pressures to sell tax-free when they would prefer to
sell tax-paid and pass on any credits or refunds after the dealer
provides proof of a sale of a tax-exempt nature. Since
manufacturers are liable for tax on tax-free sales to dealers
where adequate proof of the final tax-free sale by the dealer is not
forthcoming, manufacturers are very conscious of the problems of
securing such final proof. We are by no means convinced that the
liberalization in H,R. 12298 is undesirable, but we think further
thought should be given to the matter. In this connection, the
testimony of witnesses before your Committee should be very helpful.
In
par
forward,
stocks.
the
value
documentary
we
The
and
believe,
present
levyingstamp
by
system
instead
getting
tax
isaarea,
advantageous
away
tax related
from
H.R. the
12298
tofictitious
taxpayers,
the
makes
sales
a price
base
big
obviously,
step
of
of

- 3 -

243

where stocks sell for much more than their par value. The mutual
investment companies would have to pay considerable additional
tax under the proposal because of the change of the base from par
to actual value. These companies believe that the distribution
system involving several layers of successive sales, which they
find advantageous for general purposes, places them at a tax
disadvantage under the proposal as compared with the noninvestment companies. While we are not convinced that special arrangements should be proposed merely because a firm considers it
otherwise desirable to do business in a certain fashion which
increases its tax burden, your Committee might want to review the
possible impact of the change on this important outlet for
savings.
As you will remember, you have requested the views of the
Commissioner of Internal Revenue with respect to several items.
These are mentioned in the report of the Subcommittee to the House
Committee on Ways and Means as Item No. XII, It was there pointed
out that the Internal Revenue Service was taking steps to establish
a Committee to study and report to the Commissioner on the more
important aspects of excise tax administration and enforcement.
I understand that the Commissioner has made a^n interim report on
the work in this area and he is here today to give a further
report.

0O0

?44
IMMEDIATE RELEASE,
Monday, November 26, 1956*

]/yf ~

' ^

Preliminary figures show that about $8,580 million of the
,083 million certificates maturing December 1 have been ex*
changed for the new securities currently offered, leaving about
$500 million for cash redemption. Out of about $3,160 million
of the maturing certificates held outside the Federal Reserve
System, $1,310 million have been exchanged for the new tax certificates and $1,350 million for the regular certificates
maturing October 1, 1957. The holdings of the Federal Reserve
System were exchanged for the latter issue •
Further details regarding the exchange will be announced
later this week, after final reports are received from the
Federal Reserve Banks*

"45
TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Monday, November 26, 1956.
— — — — — ^ — M — m m m m m m m m

»l I

— « « — » — — — •

H-1219

• •

Preliminary figures show that about $8,580
million of the $9,083 million certificates maturing
December 1 have been exchanged for the new securities
currently offered, leaving about $500 million for cash
redemption. Out of about $3,160 million of the maturing certificates held outside the Federal Reserve
System, $1,310 million have been exchanged for the
new tax certificates and $1,350 million for the
regular certificates maturing October 1, 1957. The
holdings of the Federal Reserve System were exchanged
for the latter issue.
Further details regarding the exchange will be
announced later this week, after final reports are
received from the Federal Reserve Banks.
0O0

?4C

HEULA8E A. ». NEWSPAPERS,
Tuesday, November 27, 1956

\%3

\Jf

The Treasury Department announced last evening that the tenders for $1,600,000,!
or thereabouts, of 91-day Treasury bills to be dated November 29* 1956, and te matwi
February 28, 1957, which were offered on November 21, were opened at the Federal &«ti
Banks on November 26.
The details of this issue are as followst
Total applied for - $2,595,590,000
Total accepted
- 1,600,095,000

(includes $282,967,000 entered en a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids: (Excepting one tender of $150,000)
High
Low

- 99.250 Equivalent rate of discount approx. 2.967$ per ann\»
- 99.189
*
e
s
s
»
3.208$ *
»

Average

- 99.198

•

3.17W

•

(One percent of the amount bid for at the low price was accepted}
Federal Reserve
District

Total
Applied for

Total
Acceptsd

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

TOTAL

4i/)k

Uo,3?U,ooo

1,831,996,000
37,10.8,000
Ji5,761t,000
27,378,000
33,512,000
261t,0Uft,000
21,103,000
13,517,000
39,272,000
38,885,000
111,995,000

30,3^,000
1,012,976,000
22,1(18,000
i*5,761t,000
27,378,000
33,512,000
207,571*000
21,103,000
13,517,000
39,272,000
38,885,000
106.995.000

#2,505,590,000

•1,600,095,000

TREASURY DEPARTMENT
WASHINGTON, D.C.
UASE A. M. NEWSPAPERS,
todayi November 27 s 1956.

H-1220

The Treasury Department announced last evening that the tenders for $1,600,000,000,
thereabouts, of 91-day Treasury bills to be dated November 29, 1956, and to mature
toruary 28, 1957, which were offered on November 21, were opened at the Federal Reserve
inks on November 26.
The details of this issue are as follows:
Total applied for - $2,505,590,000
Total accepted
- 1,600,095,000

(includes $282,967,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids* (Excepting one tender of $150,000)
High
Low

- 99.250 Equivalent rate of diseoxmt approx. 2.967$ per annum
- 99.189
»
w
w
w
«
3.208$ «
«

Average

- 99.198

3*171$

(One 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

$
UO,39U,000
1,831,996,000
37,10.8,000
U5,76U,0O0
27,378,000
33,512,000
26U,0U,6,000
21,103,000
13,517,000
39,272,000
38,885,000
111,995,000

$2,5o5,590,ooo

$1,600^5,000

TOTAL

30,39li,000
1,012,976,000
22,1<18,000
U5,76U,000
27,378,000
33,512,000
207,571,000
21,103,000
13,517,000
39,272,000
38,635,000
106,995,000

Comparison of principal items of assets and liabilities of national banks - Continued
(In thousands of dollars)
">
Increase or decrease
:
Increase or decrease
June 30,
Sept. 26,
Oct. 5,
since Oct. 5, 1959
5
since June 30, 1956
1956
1956
1955
Percent
Amount
Amount t Percent
LIABILITIES
Deposits of individuals, partnerships, and corporations:
Demand
55,373.256
Time
25,976,713
Deposits of U. S. Government
3,090,9^7
Postal savings deposits
12,856
Deposits of States and political
subdivisions
6,897,1+26
Deposits of 'banks
8,1+37,731+
Other deposits (certified and
cashiers1 checks, etc.)
... 1.1+3^ .095
Total deposits
101,223,027
Bills payable, rediscounts, and
other
liabilities for borrowed
Other
liabilities
1,761,89*1
money
71+9.376
Total liabilities, excluding
capital accounts
103,73^,297
CAPITAL ACCOUNTS
Capital stock:
3,81+3
Preferred
,
g.593.270
Common
2»5?7.ll3
!»5?7>:
To tal
,044,111
Surplus
Undivided profits
1,5^1,333
Reserves
258,486
Total surplus, profits and
reserves
5,8^3,930
1
Total capital accounts
8,441,04
Total liabilities and
capital accounts
112,175,3*^0
BATIOS:
TJ.S.Oov«t
securities
total
assets
Xjo&xxe & dJ.ecoxoa.ta
to to
total
assets.••

Percent
27.&7
41.93

25.76O.S36
3,211,507
12,852

5^.590,107
25.077,012
2,353,373
13,103

880,878
215,877
-120,560

1.62
.81+
-3.75
.03

7,607,153
8,l»8,890

6,699,178
8,661,76^

-709.727
28,81(1+

1.61+2,785

1,395, *+99

101,136,1+01

i.»+3
3.5?
31.3^
-1.S9

-9-3

198,248
-22^,030

2.96
-2.59

-208,690
86,626

-12.70
T09

38>596
2,432,991

2.77

598,1+92
266,681+

396.66
17.8I+

W.657
280,020

6.61+
18.90

951,802

2,759.668

2.73

-16
21,697
21,681

-.1+1
.81+

17TW

T9I+"
9.02
.23

- 333
156,9%
156,616
33M52
51.3^
-9.235

6.W
b.»2
!PJ2
3.^5
-3.^5

2.92
2I27"

376,561
533,177

6.89

3.292.84R

3.02

•M

1+.176
2.1+36.321
2,W0,l+97
3,709,659
l,»+S9,989
267.721
5,1+67.369
7,967.866

127,1+96
581
165,562
187.2»+3

1.03

111,036,295 108,382,495
Percent
27*6l
4l.4"*

TP+o"

98,790,036

1,1*95,210
1,481,874
150,881+
702,719
102,782,^95 100,97^,629
3.859
2.571.573
2.575.^32
l+,00b,b2b
1A13.837
257.905
5.678,368
g,253,866

783,1^
899.701
737,57**
-2l+7

Percent
31»33
TT.T*x

1,139.045
HOTS: Minus

sign denotes deoro*

tatement showing comparison of principal items of assets and liabilities of active national hanks
as of September 26, 1956, June 30, 1956 and October 5, 1955
(in thousands of dollars)
!

:
Number of tanks 1+.671
ASSETS
Commercial and industrial loans
Loans on real estate
All other loans, including overdrafts
Total gross loans
Less valuation reserves
Net loans
U. S. Government securities:
Direct obligations
Obligations fully guaranteed
Total U. S. securities
Obligations of States and political subdivisions
Other bonds, notes and debentures...
Corporate stocks, including stocks
of Federal Reserve banks
Total securities
Total loans and securities
Currency and coin
Reserve with Federal Reserve banks..
Balances with other banks
Total cash, balances with other
banks, including reserve balances and cash items in process of collection
Other assets
Total assets

Sept. 26, ,
x

956

1956

Oct. 5.
1955

U.675

1+.721

June 30,

Increase or decrease
since June 30, 1956
{Percent
Amount

Increase or decfaas
since Oct. 5. 1955
Amount :Percent
-50

20,086,711+
11,910,51+1

19,688,876
11,623,319

16,697,696
10,670,220

397,838
287,222

,2.02
2.1+7

3,389,018
1,21+0,321

20.30
11.62

15.773,y>3
47,770,658
739,057
47,031,601

15,1+18,277
1+6,730,1+72
731,072
45,999,400

14,314,319
355,126
1+1,682,235 1,040,186
598,672
7.985
1+1,083,5b3 1,032,201

2.30
2.23
1.09
272?

1,1+59,081+
6,088,1+23
140,385

10.19
14.61
23.45

30,653,137
4,132
30,657.269

3l+,l06,3ll+
4,037
34,110,351

383,528
-470
383.058

1.25
-11.37
1.25

-3,069,61+9
-375
-3.070,024

-9.00

7,094,1+78
1,736,150

7,145,936
1,986,499

-37.913
-54.51*!

-.53
-3.14

-89.371
-304,890

-1.25
-15.35
9.39
-7.93

31,036,665
3.662
31,QUO ,327
7.056,565
1,681,609
232,852
1+0,011,353"
87,01+2,95%"
1,574.263
11,306,822
10,475,651

23,356,736
1,775.650
112,175.340

J&8\oW

230.864
39,718,761
85,718,161
1,178,332
11,052,924
11,378.290

1.988
212.872
43,455.658
292.592
84,539.221 1,324,793
1,358,591
395,931
11,366,869
253.898
10,051,446 -902,639

980
^TWf+T 305
1.55
2,503.733
33.60
215,672
2.30
-60,047
mZlmm-V. 424,205

23.609,546
1,708.588
111,036.295

22,776.906 -252,810
1,566,368
67,062
108,882,495 1,139,045

-1.07
579.830
3.92
209,282
1.033.292,845

.86

-9.00

1796"
15.87
-.53
1+.22

2.55

13756"
375T

other securities decreased $47,000,000 to $1,660,000,000. Other loans, includh
loans to farmers, loans to hanks, and other loans to individuals (repair and
modernization and installment cash loans, and single-payment loans) were
$9,300,000,000, an increase of four percent in the three month period. The
percentage of net loans and discounts to total assets on September 26, 1956 was
Hi,93 in comparison with 4l.43 in June and 37.73 in October 1955.
Investments of the banks in United States Government obligations on September 26, 1956 aggregated $31,000,000,000 (including $3,700,000 guaranteed obligations), an increase of $400,000,000 since June 30. These investments were
nearly 28 percent of total assets. Other bonds, stocks and securities of nearly
$9,000,000,000, which included obligations of States and political subdivisions
of $7,100,000,000, were $90,000,000 less than in June. Total securities held
amounting to $40,000,000,000 increased $300,000,000 in the period.
Cash of $1,600,000,000, reserve with Federal Reserve banks of $11,300,000,0'
and balances with other banks (including cash items in process of collection) of
$10,500,000,000, a total of $23,400,000,000, showed a decrease of $250,000,000
since June.
Borrowed money of $750,000,000 increased $598,000,000 and $47,000,000 in
the three and twelve month periods, respectively.
The capital stock of the banks on September 26, 1956 was $2,597,O°°»oo0»

in<

eluding $3,843,000 of preferred stock. Surplus was $4,044,000,000, undivided
profits $1,5^1,000,000 and capital reserves $259,000,000, or a total of
$5,844,000,000. Total capital accounts of $8,441,000,000, which were 8.3k perci
of total deposits, were $187,000,000 more than in June when they were 8#l6 perce
of total deposits.

TREASURY DEPARTMENT
Comptroller of the Currency
Washington
RELEASE A.M. NEWSPAPERS,
T h u r s d a y , November 293 1 9 5 6 .
"

/51

H-1221

The total assets of national banks on September 26, 1956 amounted to
more than $112,000,000,000, it was announced today by Comptroller of the
Currency Ray M. (Sidney* The returns covered the 4,671 active national banks
in the United States and possessions. The assets were $1,100,000,000 more
than the amount reported by the 4,675 active banks on June 30, 1S56, the date
of the previous call.
The deposits of the banks on September 26 were $101,200,000,000, an increase of $87,000,000 since June. Included in the recent deposit figures were
demand deposits of individuals, partnerships, and corporations of $55,400,000,OC
which increased $900,000,000, and time deposits of individuals, partnerships, ar
corporations of nearly $26,000,000,000, which increased $200,000,000. Deposits
of the United States Government of $3,100,000,000 decreased $100,000,000 in the
quarter; deposits of States and political subdivisions of $6,900,000,000 decreased $700,000,000, and deposits of banks amounted to $8,400,000,000, about
the same as at the previous call date. Postal savings were $12,800,000 and
certified and cashiers1 checks, etc., were $1,400,000,000.
Net loans and discounts on September 26, 1956 were $47,000,000,000, an increase of $1,000,000,000 since June. Commercial and industrial loans of
$20,100,000,000 were up $400,000,000, and loans on real estate of $11,900,000,00
were up $300,000,000* Retail automobile installment loans increased $35,000,000
and amounted to $3,500,000,000. Other types of retail installment loans of
$1,350,000,000 increased $15,000,000. Loans to brokers and dealers in security
and other loans for the purpose of purchasing or carrying stocks, bonds, and

TREASURY D2PARTM21TT
Comptroller of the Currency
Washington
RELEASE A.M. NEWSPAPERS,
Thursday, November 2Q T 1956
~

^^9
" *-

H-1221

The total assets of national banks on September 26, 1956 amounted to
more than $112,000,000,000, it was announced today by Comptroller of the
Currency Ray M. (Sidney. The returns covered the 4,671 active national banks
in the United States and possessions. The assets were $1,100,000,000 more
than the amount reported by the 4,675 active banks on June 30, 1956, the date
of the previous call.
The deposits of the banks on September 26 were $101,200,000,000, an increase of $87,000,000 since June. Included in the recent deposit figures vere

demand deposits of individuals, partnerships, and corporations of $55,400,000,
which increased $900,000,000, and time deposits of individuals, partnerships,

corporations of nearly $26,000,000,000, which increased $200,000,000. Deposits

of the United States Government of $3,100,000,000 decreased $100,000,000 in th
quarter; deposits of States and political subdivisions of $6,900,000,000 decreased $700,000,000, and deposits of banks amounted to $8,400,000,000, about
the same as at the previous call date. Postal savings were $12,800,000 and
certified and cashiers' checks, etc., were $1,400,000,000.
Net loans and discounts on September 26, 1956 were $47,000,000,000, an increase of $1,000,000,000 since June. Commercial and industrial loans of

$20,100,000,000 were up $400,000,000, and loans on real estate of $11,500,000,

were up $300,000,000. Retail automobile installment loans increased $35,000,00
and amounted to $3,500,000,000. Other types of retail installment loans of

$1,350,000,000 increased $15,000,000. Loans to brokers and dealers in securiti
and other loans for the purpose of purchasing or carrying stocks, bonds, and

253
mm

other securities decreased $47,000,000 to $1,660,000,000. Other loans, including
loans to farmers, loans to banks, and other loans to individuals (repair and
modernization and installment cash loans, and single-payment loans) were
$3,300,000,000, an increase of four percent in the three month period. The
percentage of net loans and discounts to total assets on September 26, I956 was
41.33

comparison with 4l.43 **• June and 37.73 in October 1955.

Investments of the banks in United States Government obligations on September 26, 1956 aggregated $31,000,000,000 (including $3*700,000 guaranteed obligations), an increase of $400,000,000 since June 30. These investments were
nearly 28 percent of total assets. Other bonds, stocks and securities of nearly
$9,000,000,000, which included obligations of States and political subdivisions
of $7,100,000,000, were $30,000,000 less than in June. Total securities held
amounting to $^0,000,000,000 increased $300,000,000 in the period.
Cash of $1,600,000,000, reserve with Federal Reserve banks of $11,300,000,000,
and balances with other banks (including cash items in process of collection) of
$10,500,000,000, a total of $23,400,000,000, shov/ed a decrease of $250,000,000
since June.
Borrowed money of $750,000,000 increased $598,000,000 and $47,000,000 in
the three and twelve month periods, respectively.
The capital stock of the banks on September 26, 1956 was $2,597,000,000, including $3,843,000 of preferred stock. Surplus was $4,044,000,000, undivided
profits $1,541,000,000 and capital reserves $259,000,000, or a total of
$5,844,000,000. Total capital accounts of $8,441,000,000, which were S.3>1 percent
of total deposits, were $187,000,000 more than in June when they wers 8.1? percent
of total deposits.

Statement showing comparison of principal items of assets and liabilities of active national "banks
as of September 26, 3.956, June 30. 1956 and October 5, 1955

(in thousands of dollars)
Sept. 26,
1956

June 30»

U.675
ITumber of banks,
_ _ H,6TI
______
ASSBTS
l9,6So\&76
Commercial and industrial loans.....
20,OS6jl4
11,623,319
Loans on real estate
11,910*541
All other loans, including over15,418,277
drafts
^IJP^lgl
Total gross loans
47,770,653 ^6\730v^72
731.072
Less valuation reserves
__Z2?»°57
ITet loans
~^7,031^01
U.Direct
S. Government
securities:
obligations..
31,036,665 30,653.137
H.132
Obligations fully guaranteed......
3,662
m
30Tb57T2o9
Total U. S. securities
yTt7m.32i
Obligations of States and politi7,09^,^72
7.056,565
cal subdivi sions
1,736,150
1,661,609
Other bonds, notes and debentures...
Corporate stocks, including stocks
230.26U
of Federal Reserve banks..........
232,852
39.7lS.76l
Total securities
^40,011,353
S577127161
Total loans and securities
£7,042,954
1,172,332
Currency and coin
1 >57U,2o3
11.052.92U
Reserve \srith Federal Reserve banks..
11,306,222
11,372.290
Balances with other "banks
10,U75,651
Total cash, "balances with other
hanks, including reserve "balances and cash items in pro23,609,5U6
cess of collection
23,356,736
1,702,522
Other assets...
1,775,650
Total assets
112,175,3^0 111,036,295

Oct. 5.
1955
4,721
16.697.696
10,670,220

Increase or decrea.se
since June 30, 1956
jpercent
Amount

-4
397,232
227.222

1U.31U.319 _355ji26
TT7622.235 "i,duo, 126*
7,925
592,672
1,032,201
3U.lO6.3iH 323,522
U.037
-U70
Jk, iio,35"i
323,052
7,1^5,936
1.926,U99

-37,913
-5U.5U1

„ 212_,272 1,922
292,592
U37U55."^5S*
2^4.539,221 1,32^.793
395,931
1,352,591
253,292
11,366,269
10.051.UU6 -902,639

22,776.906 -252.210
1,5667362
67,062
102.222.U95 1,139.055"

Increase or decree
since Oct. 5, 1955
Amount :Percent
-50

2.02
2.U7

3,329,012
1.2U0.321

20.30
11.62

2.30
2.23

1.U59.02U
6.0S2.U23"
lUO,3S5
5,9% 703S

10.19

_ i«°9

luTsr
23 .^5_
1U.4S
-9.00

1.25
-11.37
1.25

-3.069.6U9
-375
-3.070.02U

-.53

-29,371
-30U.S90

-1.25
-15.35

19,920
-3, ^L&7305
2.503,733
215,672
-60.0U7
U2U.205

O TC

-3.1U
•

1-55
33.60
2.30
-7.93

-1.07
3.92
lTol

--9 ."

y • mJJ

-7-93
2.9£
15.21

-.51
U.22

579,230
2.5*
209,232
13.3t
3.292.2U5 ...
. 3.0;
:>

Comparison of principal items of assets and liabilities of national 'banks — Continued

(in thousands of dollars)
Juno 30,
1956
LIABILITIES
Deposits of individuals, partnerships, and corporations!
Demand
55,373,256
Tine
25,976.713
Deposits of U. S. Government
3,090,9l|7
Postal savings deposits
12,256
Deposits of States and political
suodivi sions
6.297.U26
Deposits of "banks
2,U37.73U
Other deposits (certified and
cashiers' checks, etc.)
ltU3U,095
Total deposits
101,223,027
Bills payable, rediscounts, and
other liabilities for "borrowed
money
7U9.376
Other liabilities
1.761.29U
Total liabilities, excluding
capital accounts
103,73^,297
Conaon CAPITAL ACCOUNTS
2,593,270
Capital
stock!
Total
2,597,113
Preferred
3.2U3
Surplus
4,0W,liT
Undivided profits
1,5^1,333
Reserves
258,U26
Total surplus, profits and
S.UUl.OUg
reserves
5,2U3,93P
•1 liabilities
and
Total
c-nital accounts....
accounts
112,175.3*50
Tocsr,it-i
v
Percent
?J.TI03:
27.67
"J. S.Gov't securities to total assets
kuH.9!
Loans & discounts to tot.-J assets...
2.3]
C'Tiital accounts to total deposits..

n * c
A c
1955

5^.^92,372
25.760,236
3.211,507
12,252
7,607,153
S,U02,S90

5U,590,107
25.077,012
2,353,373
13,103
6,699,172
2,66i,76U

1.6U2.725

1.395,^99

s Increase or decrease : Increase or decreasi
: s i n c o J u n e 3 ° ' 1956_ ; since Oct. 5, 195b
; Percent '• Amount ; Percent
Amount

220,272
215,277
-120,560
U
-709.727
22.2UU

1.62
.2U
-3.75
.03
•*#

-202,690
-12.70
—FZTTZZ—
.09

723,1U9
299,701
737,57^
-2U7
19s,2US
-22U.030

1.^3
3.5?
3L3^
-1.29
2.96
-2.59

32,596
27UJ2.991

2.77
~27S6"

OD.DZO

101 '.iffim 92,7907036"

150.2SU
1.U95.210

702,719
1.U21.27U

102.722.U95 100,97^,629
2,571,573
2.U36.321
2.575.U32
2,U^0,U9T
T, oooTSIo
3,709,659
3.259
M76
1.U13.S37
l,US9,9S9
267.721
257,905
5.672,362
8,253, "00

5.U67.369
7,$Cif,S5F

111,036,295 108,882,1)95
Percent
Percent
27.61
3L33
U1.U3
37,73
8.16
8.00

592,U92
266,6sU

396.66
17.gU

U6,657
220,020

6.6U
12.90

951.202

.93

2,759,662

2.73

-.Ul

- 333
156,9U9
15S7616"
331' 1
5L3 4U
-9,235

-16
21,697
21,621
37,
127,U96
521
165,562
"lo'7',2U3"
1,139.0^5

.sU
~7W
9.62
.23
2.92
2.27
1.03

376,561
533,177
3,292,8U5

NOTE: Minus sign denotes decrease.

-7.97
6.UU
~T7U"2
9.02
3-^5
-3.^5
6.£9
~Tnpr

h%
c:

- 3-

2.56
or by any local taxing authority. For purposes of taxation the amount of discount
at which Treasury bills are originally sold by the United States is considered to
be interest. Under Sections k$h (b) and 1221 {$) of the Internal Revenue Code of
\9$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 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. hl8, 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 -

25 y
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 $200,000 or less
without stated price from any one bidder will be accepted in full at the average
price (in three decimals) of accepted competitive bids. Settlement for accepted
tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on December 6, 1956 9 in cash or other immediately available funds
or in a like face amount of Treasury bills maturing December 6. 1956 * Cash
and exchange tenders will receive equal treatment. Cash adjustments will be made
for differences between the par value of maturing bills accepted in exchange and
the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the
sale or other disposition of the bills, does not have any exemption, as such, and
loss from the sale or other disposition of Treasury bills does not have any
special treatment, as such, under the Internal Revenue Code of 19$k. The bills
are subject to estate, inheritance, gift or other excise taxes, whether Federal
or State, but are exempt from all taxation now or hereafter imposed on the princip*
or interest thereof by any State, or any of the possessions of the United States,

SxkAhMxS

253

TREASURY DEPARTMENT
Washington
A. M.
Xffit RELEASE/ MBRMDDISX NEWSPAPERS,
Thursday, November 29, 1956

i ,
Li , / ^ / V
Ji

The Treasury Department, by this public notice, invites tenders for
$ 1,600,000,000 , or thereabouts, of
in exchange for Treasury bills maturing

-day Treasury bills, for cash and
December 6, 1956

, in the amount of

$ 1,601,146,000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided.
dated

December 6, 1956

, and will mature

amount will be payable without interest.

The bills of this series will be
March 7, 1957

, when the face

They will be issued in bearer form only,

and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
one-thirty
closing hour,/tea o^lock p.m., Eastern Standard time, Monday, December 5, 1956j

w—
Tenders
noteven
be multiple
received of
at the
Treasury
Department,
Washington.
tender
must
be will
for an
$1,000,
and in
the case of
competitiveEach
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
•fK/m.".'.,.. ...._, j. j»r^: •— .-•.* -r-i -yy?^1;'? •Aswiy •._

—

259

*~™-=* '*"•'....'.', •> :^ja^.,J::^r:Tg=^gg^^

WASHINGTON, D.C
RELEASE A.M. NEWSPAPERS,
Thursday, November 29 > 1956.

H-1222

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 6, 1956,
in the amount of $1,601,146,000, 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 6, 1956,
and will mature March 79 1957>
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 3, 1956.
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 thpse 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

"60

T&orstfay* Boveriber 29, 1S5G. /
The ttrooaury Dapartoent today aanouacad tho reaulta of the cmrrenfc
axe&an&$ offering o f 5*1/4 perc«at 9&x Anticipation Certificates of Indafetodoaaa o: sorloo C-1937, j»aturlag JUna 24, 1957, and S-l/4 ftreeofe
Treaaury Certificates of Irzdabtedaaaa of Series D-1957, wcturiag October 1,
1957, both series to te dated December 1, 1956, and open to holder© of
$9,083,218,000 of 2-5/8 pereaat cortifleatoa offcodebtotoesematuring
Doeantee* I, 1888*
Sutoecrtsfciona for the tUD now iaauo* anouotad to $8,583,470,000,
leaving $499,748,000 o f tho maturing certificates for caah aadaqpUao*
Amounts asocbangad now divided anattg tho aovoxai ftodaMl Haaai*va Die*
triats and tho Traaaury aa follow*
Fa&eral Reserve Sories C-1857 Series B-1057
Biatrict
Certificate*

Certificates

BMtOQ
Hair Stork
Philadelphia
Cleveland
Rictaond
Atlanta
C2iica@5
St. Louis
Htrmaajolia
Kanaas City
Dallas
San Francisco
Eaaoaaw

$ 43,365,000
S,515,491,000
21,485,000
85,863,000
27,503,000
80,383,000
236,559,000
81,841,000
44,830,000
80,182,000
35,174,000
82,520,000
8,441,000

45,025,000
822,983,000
££,370,000
71,003,000
U*j0ft,CMft
£8,808,000
242,328,000
38,887,000
32,591,000
24,487,000
17,706,000
54,847,000
2,691,000

mmmmmmmm»mm9B9***mmmkmm**mm

V0ZAL $1,512,453,000 $7,271,017,000

«'• '

iwwinwwww—*m

TREASURY DEPARTMENT
WASHINGTON, D.C,
IMMEDMTE RELEASE,
Thursday, November 29, 1956 *

H-1223

The Treasury Department today announced the results of the current
exchange offering of 3-1/4 percent Tax Anticipation Certificates of Indebtedness of Series C-1957, maturing June 24, 1957, and 3-1/4 percent
Treasury Certificates of Indebtedness of Series D-1957, maturing October 1,
1957, both series to be dated December 1, 1956, and open to holders of
$9,083,218,000 of 2-5/8 percent certificates of indebtedness maturing
December 1, 1956.
Subscriptions for the two new issues amounted to $8,583,470,000,
leaving $499,748,000 of the maturing certificates for cash redemption.
Amounts exchanged were divided among the several Federal Reserve Districts and the Treasury as follows:
Federal Reserve Series C-1957 Series D-1957
District
Certificates
Boston
$
43,029,000
New York
812,593,000
Philadelphia
29,370,000
Cleveland
71,903,000
Richmond
19,308,000
Atlanta
25,596,000
Chicago
142,525,000
St* Louis
35,597,000
Minneapolis
32,591,000
Kansas City
24,497,000
Dallas
17,706,000
San Francisco
54,847,000
Treasury
2,891,000
TOTAL $1,312,453,000 $7,271,017,000

Certificates
$

43,365,000
6,515,491,000
21,485,000
83,863,000
27,503,000
60,583,000
236,559,000
81,241,000
44,630,000
50,162,000
35,174,000
62,520,000
8,441,000

- 2 -

District of Massachusetts and the Supreme Court of the United States.
He is a member of the Boston and American Bar Associations.
Mr. Weitzel's home is in Weekapaug, Westerly, Rhode Island.
He is the son of Mr. and Mrs. Albert P. Weitzel of Weekapaug.

*•*•<" y.A'

DRAFT OF IlELEffSE

hyi

Secretary Humphrey today announced the appointment of
John P. Weitzel as an Assistant General Counsel of the Treasury
Department.

He succeeds Charles R. McNeill, who is leaving the

Treasury legal staff to become Assistant General Counsel in the
Washington office of the American Bankers Association.
Mr. Weitzel, who was Special Assistant to the Assistant
Secretary of the Treasury from April/ 1953 to October 1955 and
has been Assistant to the Under Secretary of the Treasury since
then, will assume his new duties Deca»bar-i»

/*>**w*^s^^^ ,

Mr. McNeill joined the Treasury legal staff in 1943. He
had been in private law practice in Erie, Pennsylvania, following
his graduation from Harvard Law School in 1938.

He was appointed

Assistant General Counsel January 3, 1952.
Mr. Weitzel was born in Pittsburgh, Pennsylvania on August 24,
1923 and studied at Arnold School, Pittsburgh, and Deerfield Academy,
Deerfield, Massachusetts.

He entered Yale University in 1940, and

graduated with an A.B. degree in 1946.

His studies at Yale were

interrupted by almost three years' service in the Army Air Force.
From Yale he went to Harvard Law School, where he graduated in
1949 with the degree of LL.B.

He practiced law with the firm of

Herrick, Smith, Donald, Farley & Ketchum in Boston, Massachusetts
until he came to the Treasury in 1953.
Mr. Weitzel is a member of the bar of the Supreme Judicial Court
of Massachusetts and the bars of the U. S. District Court for the

TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE A.M. NEWSPAPERS
Monday, December 3s 19^6

H-1224

Secretary Humphrey today announced the appointment of
John P. Weitzel as an Assistant General Counsel of the Treasury
Department. He succeeds Charles R. McNeill, who is leaving the
Treasury legal staff to become Assistant General Counsel in
the Washington office of the American Bankers Association.
Mr. Weitzel, who was Special Assistant to the Assistant
Secretary of the Treasury from April 1953 to October 1955 and
has been Assistant to the Under Secretary of the Treasury since
then, will assume his new duties immediately.
Mr. McNeill joined the Treasury legal staff in 1943. He
had been in private law practice in Erie, Pennsylvania, following
his graduation from Harvard Law School in 1938• He was appointed
Assistant General Counsel January 3, 1952.
Mr. Weitsel was born in Pittsburgh, Pennsylvania on
August 24, 1923 and studied at Arnold School, Pittsburgh, and
Deerfield Academy, Deerfield, Massachusetts. He entered Yale
University in 1940, and graduated with an A.B. degree in 1946.
His studies at Yale were interrupted by almost three years1
service in the Army Air Force.
From Yale he went to Harvard Law School, where he graduated
in 1949 with the degree of LL.B. He practiced law with the
firm of Herrick, Smith, Donald, Farley & Ketchum in Boston,
Massachusetts until he came to the Treasury In 1953.
Mr. Weitzel is a member of the bar of the Supreme Judicial
Court of Massachusetts and the bars of the U. S. District Court
for the District of Massachusetts and the Supreme Court of the
United States. -He is a member of the Boston and American Bar
Associations.
Mr. WeitzelTs home is in Weekapaug, Westerly, Rhode Island.
He is the son of Mr. and Mrs. Albert P. Weitzel of Weekapaug.

0O0

KELEASEA. M. IWSFAFIRS,
Tuasday, December h9 1956.

/^jL —,
f

J %

j c.

The Treasury Department announced last evaning that the tenders for $1,600,000,0
or thereabouts, of 91-day Treasury bills to be dated December 6, 1956, and to aaturs
March 7, 1957, which vara offered on Movember 29, were opanad at tha Federal Raaerva
Banks on December 3.
Tha details of this issue are aa follow:
Total applied for - $2,232,108,000
Total accepted
- 1,600,088,000

(includes $281,482,000 entered on a
noncompetitive baaia and aeoepted in
full at tha average price shown below)

Range of accepted competitive bids; (Excepting one tandar of $15,000)
High
ham

- 99.224 Equivalent rata of discount approx. 3*070$ par annua
- 99.209
*
a * «
n
3.129% •
•

Average

- 99.216

•

•»

•

3.102$ •

(36 percent of tha amount bid for at tha law prioa was aeoepted)
federal Rasarve
District

Total
Applied for

Total
Ac«*pt*d

Boston
Mew York
Philadelphia
Cleveland
Rlohaond
Atlanta
Chicago
St. Louia
Minneapolis
Kanaaa City
Dallas
San Francisco

$
Wl,i91,000
1,595,919,000
31,903,000
64,722,000
20,883,000
26,993,000
224,609,000
29,857,000
13,230,000
37 ,10*9,000
34,?60,000
107,412,000

#2,232,1*28,000

11,600,088,000

Total

3U,i»91,0O0

i,o$3,ia9,ooo
16,703,000
5^,722,000
20,881,000
26,493,000
177,329,000
29,657,000
13,030,000
36,809,000
32,560,000
103,792,000

•

The Treasury Department announced last evening that the tenders for $1,600,000,000,
thereabouts, of 91-day Treasury bills to be dated December 6, 1956, and to mature
rch 7, 1957* which were offered on November 29, were opened at the Federal Reserve
oks on December 3©
The details of this issue are as follows §
Total applied for - $2,232,428,000
Total accepted
- 1,600,088,000

(includes $281,482,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
Range of accepted competitive bids? (Excepting one tender of $15,000)
High - 99*224 Equivalent rate of discount approx. 3*.Q7Q% per annum
M
n
M
Low
- 99*209
'•
"
3.129# "
Average - 99.216 M w w » ?8 3«102£ 89 w
(36 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

$ 44,491,000
1,595,919,000
31,903,000
64,722,000
20,883,000
26,993,000
224,609,000
29,857,000
13,230,000
37,449,000
34,960,000
107,412,000

$ 3U,U91,000
1,053,10.9,000
16,703,000
54,722,000
20,883,000
26,1*93,000
177,329,000
29,857,000
13,030,000
36,809,000
32,560,000
103,792,000

$2,232,i*28,000

$1,600,088,000

Total

- 3

?G7
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.

-*-

?£g

?S
or in a like face amount of Treasury bills maturing

December 13, 195°

. Cash

5SJ
and exchange tenders will receive equal treatment. Cash adjustments will be made
for differences between the par value of maturing bills accepted in exchange and
the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the
sale or other disposition of the bills, does not have any exemption, as such, and
loss from the sale or other disposition of Treasury bills does not have any
special treatment, as such, under the Internal Revenue Code of 1954. The bills
are subject to estate, inheritance, gift or other excise taxes, whether Federal
or State, but are exempt from all taxation now or hereafter imposed on the principal
or interest thereof by any State, or any of the possessions of the United States,

TREASURY DEPARTMENT
Washington

A. M.
FOR RELEASE/ K C T M W NEWSPAPERS,
Thursday, December 6, 1956

—.

/—/- / 2 — ^ ^
/

m
The Treasury Department, by this public notice, invites tenders for
$ 1,600,000,000 5 or thereabouts, of 91 -day Treasury bills, for cash and
in exchange for Treasury bills maturing December 13, 1956 , in the amount of
$1,600,383,000 , to be issued on a discount basis under competitive and non-

5P£
competitive bidding as hereinafter provided. The bills of this series will be
dated December 13, 1956 , and will mature March 14, 1957 , 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,OOC
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
one-thirty
closing hour, tsw/o'clock p.m., Eastern Standard time, Monday, December 10, 1956
Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99*92$. Fractions may not be used. It is urged that tenders
be made on the printed forms and forwarded in the special envelopes which will be
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized dealer
in investment securities. Tenders from others must be accompanied by payment of

TREASURY DEPARTMENT
—BmPag^imTfnFr'.tfWJ n m <n.m Ul«l JMIMMU ill •' •' Mim*m9mmmm^»fmmM.mmKtmmfMMm*W Vmu^.Mmmvmmmmmman*m»ns^i^mm,^

WASHINGTON, D.C.
RELEASE A.M. NEWSPAPERS,
Thursday, December 6, 1956.

H-1226

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 13, 1956,
in the amount of $1,600,383*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 13, 1956,
and will mature March 14, 1957*
when the face amount will be
payable without interest. They ;*ill 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 ofclock p.m., Eastern Standard time,
Monday, December 10, 1956.
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 December 13, 1956, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing December 13, 1955
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, does not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 1954. The bills are subject
to estate, inheritance, gift or other excise taxes, whether Federal
or State, but are exempt from all taxation now or hereafter Imposed
on the 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.
0O0

UNITED STATES GOLD TRANSACTIONS WITH FOREIGN COUNTRIES

January lf 1956 - September 30, 1956
(In millions of dollars at $35
mm
Negative figures represent net sales by the
United States: positive figures, net purchases
First
Second
Third
Country
Quarter
Quarter
Quarter
____
1956
1956
1956
Argentina — $20*1 $55.1
mmmmmWmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmWmmmm

•

I I I — — — — « — f t — " W

mmmmmimmmmmmmmmmmmmmtmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm^^

Colombia —- — 28.1
France —$33.8 — —
International Monetary Fund. 25.0 75.0 75.0
Switzerland •...•.••••..••• ~~ •— -8#0
Urgfcuay •.... I — ~- 2.0
XOflb

Vatican Qtty

1#0

—

2.0

Attorney General of the U.S.# 13.1 •—• •—
All ether -.2 -.2 .7
M88nifi.iiiWB38M88g.88saa!saoi8egsaaBaas88aa8aBgs3aosga888gasssgagaass88

Total $5.2V $9h.9

$-$h.9

88SS89a5~3SgB!SS8S>8II8B883BasaS8888gSg8 8Sa588gI8^P8tSg<B8B888K

* - Represents Rumanian-owned gold blocked under Executive Order
No. 10,644, and pursuant to Public Law 285, 84th Congress, August 9,
1955, among assets vested and liqiidated, their proceeds to be distributed
to American claimants against Rumania.

L7Z/

£.

rfi

'1-4- •

' ^~~~

jk^. Lyfs*

L^^**^---*-*"1***

uia.*->-,<v*

The Treasury Department today mad* public m report of
monetary gold transactions with foreign government* and central
banks for the third quarter of 1956. Ia this period, tha
/

Haited Stataa purchased $163.2 million worth of gold, amd sold
$8.3 ailliom. These traasaatioas brought to #255.0 millioa tha
net imflow of gold iato tha limited States ia the first mime
aoaths of this year, with U. S. gold pur aliases at $297.4 millioa
. /

and U.S. sales, $42.4 ailliom.
A table ahowiag mat traasactioms, by coumtry, for tha first
three quarters of 1956 ia attached.

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Thursday, December 6, 1956.

H-1227

The Treasury Depart-out today made public a report of
monet-ry gold transactions with foreign governments raid central
bonks for tho third, quarter of 1956. In this period, the
United States purchased J1G3.2 million worth of gold, and sold
£8.3 million. These transactions brought to $255.0 million the
r^t inflow of gold into tho United States in the first nina
months of this year, with U. S. gold purchases at #297.4 million
and U.S. ssles, J42.4 million.
A table showing net transactions, by country, for the first
three quarters of 19 56 is attacrud.

?±z
UNITED STATES GOJD TRANSACTIONS WITH F&uillGN COUNT-IiS
January 1, 1956 - September 30, 1956
(In millions of dollars at $3$ per ounce)
Negative figures represent net sales by the
United States; positive figures, net purchases
First
Second
Third
Country
Quarter
Quarter
Quarter
.
1956
1956.
1956
Argentina — #20.1 s»55.1
Colombia •••••• •• -— 26.1
France 433.8
International Monetary Fund. 25.0 75.0 75.0
Switzerland -8.0
Uruguay 2.0
Vatican City 1.0 2.0
Attorney General of the U.S.# 13.1 —All other -.2 -.2 .7

Total S.2 tfk.9 A$k.9

# - Represents Rumanian-owned gold blocked under Executive Order
Mo. 10,6[|U, and pursuant to Public Law 285, 8I|th Congress, August 9,
1955, among assets vested and liquidated, their proceeds to be distributed
to American claimants against Rumania.

r- ~~> t"

- 2 The program allows recruits to gain expjg^ipnce as tax
specialists and provides the Government with the best profession
talent available. Every inducement possible is offered to
encourage the appointees to make a career of Government service.

D^aft .*%£ pgjfeeocel

The Treasury wants outstanding members of

CSSSQEBSI

law

school graduating classes for work in the Internal Revenue Service
Treasury General Counsel Pred C. Scribner, Jr., and Chief
Counsel John Potts Barnes of the Internal Revenue Service have
asked the assistance of deans of law schools throughout the
country in recruiting honor students who are in the upper ten
percent of the graduating classes or are members of the Board of
Editors of the Law Review and have taken tax courses in law school,
cpSsitlons a*e available for 75 qualified graduates in the
various regional offices of the Revenue Service and in its
Washington headquarters.
The recruiting program is designed to maintain the high
professional standards of the Internal Revenue Service legal staff
by obtaining honor graduates who have pointed their legal educatior
toward the tax field.

For the convenience of the students,

interviews will be held in the law schools, where practicable,
as well as in the field offices of the Internal Revenue Service
and in the Washington headquarters.
The starting salary for those without specialized experience
is $4,525 per annum, after admission to the bar.

The program

provides for the employment as law clerks, at $3,670 per annum,
of graduates who are awaiting admission to the bar.
are promoted promptly upon admission to the bar.

Law clerks

TREASURY DEPARTMENT
WASHINGTON. D.C.

RELEASE A.M. NEWSPAPERS,
Monday, December 10, 1956.

H-1228

The Treasury wants outstanding members of law
school graduating classes for work in the Internal
Revenue Service.
Treasury General Counsel Fred C. Scribner, Jr.,
and Chief Counsel John Potts Barnes of the Internal
Revenue Service have asked the assistance of deans of
law schools throughout the country in recruiting honor
students who are in the upper ten percent of the
graduating classes or are members of the Board of
Editors of the Law Review and have taken tax courses
in law school.
It is expected positions will be available for
75 qualified graduates in the various regional offices
of the Revenue Service and in its Washington headquarters.
The recruiting program is designed to maintain the
high professional standards of the Internal Revenue
Service legal staff by obtaining honor graduates who
have pointed their legal education toward the tax
field. For the convenience of the students, interviews
will be held in the law schools, where practicable, as
well as in the field offices of the Internal Revenue
Service and in the Washington headquarters.
The starting salary for those without specialized
experience is $4,525 per annum, after admission to the
bar. The program provides for the employment as law
clerks, at $3,670 per annum, of graduates who are
awaiting admission to the bar. Law clerks are promoted
promptly upon admission to the bar.
The program allows recruits to gain experience
as tax specialists and provides the Government with
the best professional talent available. Every inducement possible is offered to encourage the appointees
to make a career of Government service.

0O0

279

IMMEDIATE RELEASE,
Friday. D — * w 7, 1958,

,//_

/ ^ f

The Treasury Department announead today that it will
invite tenders for $1 billion, or thereabout** of 95~day
Treasury bills to raise eaah for current requirawant*. Tha
full terms of the offering will be oontalnad in a atatawnt
to be releaaed Monday m>rxdng9 December 10. Tandara will
be opened at Is50 p.m., Saatarn Standard tiatt* on Wadnaaday,
December 12.
Tha new bills will be dat*d Becaisber 17, 1956, and will
mature March 22. 19S7. Theaa will be tax anticipation billa,
aeeeptable at face value in payment of inmsm and profit*
taxes due March 15, 1957. They may be paid for by eredit In
Treasury tax and loan aeoounts.

TREASURY DEPARTMENT
WASHINGTON, D

IMMEDIATE RELEASE,
Friday, December 7> 1956.

H-1229

The Treasury Department announced today that it
will invite tenders for $1 billion, or thereabouts, of
95-day Treasury bills to raise cash for current requirements.

The full terms of the offering will be contained

in a statement to be released Monday morning, December 10
Tenders will be opened at 1:30 p.m., Eastern Standard
time, on Wednesday, December 12.
The new bills will be dated December 17, 1956, and
will mature March 22, 1957. These vail be tax anticipation bills, acceptable at face value in payment of income
and profits taxes due March 15, 1957. They may be paid
for by credit in Treasury tax and loan accounts.

oOo

exempt from all taxation now or hereafter ijspoaad on tha principal or interest than
by any State, or any of tha possessions of the United States, or by any local taxta|
authority. For purposes of taxation the amount of discount at which Treasury biUs
are originally sold by the United States is considered to bs interest. Under S**»
tions 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amount of dl*»
' % •

count at which bills issued hereunder arc sold is not considered to accrue mill
such bills are sold, redeemed or otherwise disposed of, and such bills arc excludtd
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 cither
upon sale or redemption at maturity during the taxable year for which the return Is
made, as oridnary gain or loss.
Treasury Department Circular Mo. 413, 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.

Banks or Branches on application therefor.

Ion

Others than banking institutions will not be permitted to submit tcndsrs except
for their own account.

Tenders will be received without deposit from incorporated

banks and trust companies and from responsible and recognised dealers in investment
securities.

Tenders from others must be accompanied by payment of Z 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 cosrpany.
Irdiiediately after tha closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the
Treasuiy Department of the amount and price range of accepted bids. Those submitting
tenders vill be advised of the acceptance or rejection thereof.

The Secretary of

the Treasury express!: reserves the right to accept or reject any or all tenders, in
whole or in part, Bxid his action in any such respect shall be final. Subject to
these reservations, noncoxapetitive tenders for 5£00,000 or less without stated price
from any one bidder will be accepted in full at the average price (in three decimals)
of accepted corapetitive bids. Payment of accepted tenders at the prices offered
must be made or completed at the Federal Reserve Bank in cash or other immediately
available funds on December 17, 19S6, provided, however, any qualified depositary
will be nern&tted to make payment by credit in its Treasury tax and loan account for
Treasury bills allotted to it for itself and its customers up to any amount for which
it shall be qualified in excess of existing deposits when so notified by the Federal
Seserve Bank of its District.
The incor-B derived from Treasuiy 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 treatrjent, as such, under the Internal Revenue Code of 1954.

The bills are sifcject to

estate, inheritance, gift or other excise taxes, whether Federal or State, but are

38'*
\m*

RELEASE k. K. NEWSPAPERS,
Ilonday, December 10, 1956.
mammmmmmmmmmm%mmmmmmmmmmimmmmm. mini mi n>I w m m m m m m

//- /2~3P .
W

* "

>'&\',\;"

The Treasury Department, by this public notice, Invites tenders for fl,000,005,(X
or thereabouts, of 9S~day Treasury bills, to be Issued on a discount basis under co»»
petltive and aoneoiapttitive bidding as hereinafter provided. The bills of this serial
will be designated Tax Anticipation Series, they *&1 be dated December If, 19S6, and
they will mature March 22, 1957. They will be accepted "at face value in payment of
income and profits taxes due on March IS, 1957, and to the extent they are not preeeal
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, 1957, ineoi
and profits taxes have the privilege of surrendering them to any Federal Reserve Bank
or Branch or to the Office of the Treasurer of the United States, Washington, not ion
than fifteen days before March 15, 1957, 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 IS, 19S7, to the District Director of Internal Revenue
for the district in which such taxes are payable^' The bills will be issued in bearer
form only, and in denoasinations of $1,000. $§.000. $10,006. $100,000. $500,000 and
$1,000,000 (jaaturlty 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, Wednesday, December 12, 1956.
Tenders will not be received at the Treasury Ihipartment, Washington. Each tender mm
be for an even multiple of $1,000, and in the case of competitive tenders the price
offered must be expressed on the basis of 100, with not raore than three decimals, e,g
9$.9£5. 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 Resen

TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE A. M. NEWSPAPERS,
Monday, December 10, 195o.

H-1230

The Treasury Department, by this public notice, invites tenders
for $1,000,000,000, or thereabouts, of 95-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 17,
1956, and they will mature March 22, 1957. They will be accepted at
face value in payment of income and profits taxes due on March 15,
1957* 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, 1957* income and profits taxes have the privilege of
surrendering them to any Federal Reserve Bank or Branch or to the
Office of the Treasurer of the United States, Washington, not more
than fifteen days before March 15, 1957, 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,
1957* to the District Director of Internal Revenue for the district
in which such taxes are payable. The bills 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,
Wednesday, December 12, 1956. 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.

- 2 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. Payment of accepted tenders at the prices offered
must be made or completed at the Federal Reserve Bank in cash or
other immediately available funds on December 17, 1956, provided,
however, any qualified depositary will be permitted to make payment
by credit in its Treasury tax and loan account for Treasury bills
allotted to it for itself and its customers up to any 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 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
^5k (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. 418, Revised, and this notice,
prescribe the terms of the Treasury
oOobills and govern the conditions
of their issue. Copies of the circular may be obtained from any
Federal Reserve Bank or Branch.

- 2-

W e took a stand against them when their action violated the basic principles
in which we believe. Just so, we mast now support them in their whole*
hearted effort to arrive at a just and fair settlement through negotiation.
This must be equally true of our attitude toward all others involved.
When they are in violation of just settlement through negotiation, we must
oppose their action. We mast support them so long as they are in wholehearted compliance with those basic principles.

p£+£*y^
A good deal of discussion and s o m e jptiM guessing is developing ia
connection with the degree of financial burden on various currencies
which this dislocation of tho normal channels of trade will involve.
Some of the estimates of the need for financial support have been greatly
exaggerated. The fact is that in all probability existing institutions will
^K-#-»V

*i /£<-

jfa*\ <**jk*± i~c <y94jA\4**4>* t

be able to provide uiaamNB* assistance 'naaspfefesnfinfbMb*

*
-H^««V*J*-CJU5».

It is too early, of course, to predict a successful outcome for
all of the many facets in this confused situation* but great progress
has been made under the leader skip of the United Nations in the past
few days and the prospects for future progress are most encouraging.

SJrJClSOH B Y S E C R E T A R Y H U M P H R E Y
Pennsylvania Society
New York, N Y.
Saturday, December 8, 1956

It seems appropriate under these circumstances and at this time
to say just a word about the extremely important developments in the
world during the past week.
We are now seeing the United Nations as a trusted intermediary
stepping into a critical situation to promote the adjustment of differences
by negotiation while a previous resort to force for that purpose is being
withdrawn.
The importance of these events as a precedent cannot be exaggerated.
It holds possibilities for future usefulness in the settlement of dangerous
controversies by negotiation rather than force. This possibility can fire
the Imagination with the vision of an era of peace in the world stretching
out into the future for years to come.
How effective this precedent may become depends of course upon
how effective the present peaceful negotiations may be in resolving the
real causes of controversy in the present situation. If, in good faith by
all concerned, real progress can be made in the near future toward a

fair, just, ana lasting settlement to eliminate the underlying causes of thi
controversy, then indeed can we look forward to a brighter day for the
maintenance of peace.
In the meantime, our Allies who have now wholeheartedly accepted
the principles of negotiation and withdrawn from the use of military force

are entitled to our full support toward a just settlement of their problems.

TREASURY DEPARTMENT
Washington
RELEASE 7 P.M. EST
Saturday, December 8, 1956
Remarks by Treasury Secretary George M. Humphrey
on Receiving the Gold Medal of the Pennsylvania
Society, Grand Ballroom, Waldorf Astoria Hotel,
New York City, Saturday, December 8, 1956
It seems appropriate under these circumstances and at this time
to say just a word about the extremely important developments in the
world during the past week.
We are now seeing the United Nations as a trusted intermediary
stepping into a critical situation to promote the adjustment of
differences by negotiation while a previous resort to force for thai:
purpose is being withdrawn.
The importance of these events as a precedent cannot be exaggerated. It holds possibilities for future usefulness in the settle.?*
ment of dangerous controversies by negotiation rather than force.
This possibility can fire the imagination with the vision of an era
of peace in the world stretching out into the future for years to
come.
How effective this precedent may become depends of course upon
how effective the present peaceful negotiations may be in resolving
the real causes of controversy in the present situation. If, in good
faith by all concerned, real progress can be made in the near future
toward a fair, just, and lasting settlement to eliminate the underlying causes of this controversy, then indeed can we look forward to
a brighter day for the maintenance of peace.
In the meantime, our Allies who have now wholeheartedly accepted
the principles of negotiation and withdrawn from the use of military
force are entitled to our full support toward a just settlement of
their problems. We took a stand against them when their action
violated the basic principles in which we believe. Just so, we must
now support them in their wholehearted effort to arrive at a just and
fair settlement through negotiation.
This must be equally true of our attitude toward all others
involved. When they are in violation of just settlement through
negotiation, we must oppose their action. We must support them so
fton^as they are in wholehearted compliance with these basic principles.
H-1231

QPQ
W

V^ mJ

- 2 A good deal of discussion and somepllain guessing is developing
in connection with the degree of financial burden on various currencies which this dislocation of the normal channels of trade will
involve. Some of the estimates of the need for financial support
have been greatly exaggerated. The fact is that in all probability
existing institutions will be able to provide most of the assistance
Chat may be needed.
It is too early, of course, to predict a successful outcome for
all of the many facets in this confused situation, but great progress
has been made under the leadership of the United Nations in the past
few days and the prospects for future progress are most encouraging.
0O0

w v

-' V

MUIASI A, M.

] /

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Tuesday, December 11, 1956.
mmmmmmmmmmmmm&mmmmmmmmmmmmmmmmmmmmmmm&mmmmmmmmmmmm

The Treasury Department announced last evening that the tenders for $1*600,000,01
or thereabouts, of 91-day Treasury bills to be dated December 13, 1956, and to attars
March Ik $ 1957, which were offered on December 6, were opened at the Federal Reserve
Banks on December 10.
the details of this issue are as follows:
Total applied for - $2,309,996,000
Total accepted
- 1,600,218,000

(includes $315*196,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bidet
High - 99*2Ul Equivalent rate of discount approx. 3.0035* pmr asm
tow - 99-166
«
• •
•
•
3.299H •

•

Average - 99*llk * * * • * 3.268* * •
(60 percent of the amount bid Iter at tho low price was accepted)
Federal Reserve
District

Total
Applied for

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

Total

31,695,000
1,618,910,000
32,176,000
$6,092,000
25,631,000
58,21*0,000
216,377,000
33,13it,000
13,81»7,000
60,729,000
39*080,000
12l»a087.OO0

#2,309,998,000

fe(

Total
<Wfr^SS|WW*jg wWw'wS

21,1*95,000
1,021,210,000
17,176,000
53,992,000
25,631,000
57,7M>,0OO
11)9,177,000
33,U1»»000
13,81)7,000
511,729,000
39*080,000
U3.O07.0O0

•1,600,215,000

TREASURY DEPARTMENT
rer^Traaenagffigaaza^sgigaa^M^

WASHINGTON, D.C.
RELEASE A. M. NEWSPAPERS,
Tuesday, December 11, 1956.

H-1232

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 133 1956, and to mature
March lU, 1957, which were offered on December 6, were opened at the Federal Reserve
Banks on December 10.
The details of this issue are as follows:
Total applied for - $2,309,998,000
Total accepted
- 1,600,218,000

(includes $315,198,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids:
High - 99.2U1 Equivalent rate of discount approx. 3.003$ per annum
Low
- 99.166
»
t i t i M
n
Average

- 99.17ii

3.29956 "
3.268$ »•

(60 percent of the amount bid for at the low price was accepted)
Federal Reserve
District

Total
Applied for

Total
Accented

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

$
31,695,000
1,618,910,000
32,176,000
56,092,000
25,631,000
58,2lrO,000
216,377,000
33,13U,000
13,8U7,000
60,729,000
39,080,000
12ii,087,000

$
21,1*95,000
1,021,210,000
17,176,000
53,992,000
25,631,000
57,7UO,000
1149,177,000
33,13U,000
13,81*7,000
5U,729,000
39,080,000
113,007,000

$2,309,998,000

$1,600,218,000

Total

H
It

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- 8prices, and a growing interest in savings -- our prospects for the sustained
and vigorous growth of our country stagger the imagination.
But in addition to higher money rates and a favorable governmental climate
to encourage savings, it takes salesmanship —• shoe leather. That is where out
savings institutions have shown their capacity. You are doing a fine job
encouraging people to save. This is not only good for your business; it is
good for your country.
To reach the high goals of prosperity and well-being which are within our
grasp, we must save more to have the funds to build a new and greater America.
That is the reason why what you are doing in encouraging saving, and investing
the savings soundly in business, industry, and homes, is more important than
ever.

cS3
rates also make life insurance more attractive as insurance companies are able
to raise their dividends to policy holders. Of course, these higher rates take
time before they actually result in higher savings, but the American people have
sharp pencils, and they are today responding to these more attractive rates.
Another incentive to save is confidence in the continuing value of the
dollar. Inflationary Government policies helped cut the purchasing power of the
dollar from 100 cents in 1939 to 52 cents by the end of 1952. Saving under those
conditions was a frustrating experience.
Since 1952, however, we have enjoyed a remarkable period of price stability.
The purchasing power of the dollar has held close to its value for four years —
with a loss of only about a cent and a half.
This didnft just happen. It reflects the determination of the Government
to help keep the dollar sound.
Under this Administration, the Federal budget has been brought into balance
of more than $1-1/2 blllioi
from an inherited $9-1/2 billion deficit. A ^ e g ^ t e M S M M X surplus/last year
gave a start in debt reduction. The/^btilon^. debt today is $276-1/2 billion,
compared with $280 billion a year ago. Another balanced budget is in prospect,
and further debt reduction. Government deficits are, thus, no longer a source
of inflation and instability. But the pressure for spending is great and we must
all be on guard to keep the budget in balance.
The Federal Reserve System has been freed to exercise its independent judgmen
in the determination of monetary policies in the public interest. The broad
program of the Federal Reserve in checking the tendency toward overexpansion of
credit has been helpful in keeping the pressures toward inflation within bounds.
Bursts of inflation are too often the prelude to recession and unemployment.
But if we continue present policies — with effective credit restraint, stable

- 6Thus, the first thing we must do is to exercise some restraint in spending —
not to tiy to do everything at once. Higher money rates and tight money act
as such a restraint. That is why the Federal Reserve System is allowing money
rates to rise, as the demand for funds continues to outrun the stqpply.
"When there is vigorous competition for money, as there is today, not everyone can get all the money he wants. This heavy demand for money has hit especial^
mortgage money for home building. This is true despite the fact that mortgage
lending is still going forward at high levels. The recent announcement by the
Federal Housing Administration of an increase in the interest rate on insured
mortgages from U-l/2 percent to 5 percent was designed specifically to bring
interest rates in this important part of the housing market in line with current
conditions.
Some other borrowers are finding their projects held back by difficulties
in getting money. This is not a pleasant experience for anybody But there is,
fortunately, growing understanding that these restraints are essential to avoid
inflation. If the Federal Reserve, in effect, printed money to meet all demands
for money — or even just those that seemed desirable ~ it would cause price
rf J$

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inflation. With labor ftulijy employed, and with many scarce materials, a further
increase in activity would simply push up prices.
So the only sound way to finance more rapid economic growth is by increasing
savings. Higher money rates themselves encourage saving. Higher rates mean that
/

banks are offering their depositors greater inducements to save. As you know,
just recently the Federal Reserve Board and the Federal Deposit Insurance Corporation increased the maximum interest rate which commercial banks are permitted to
pay on savings deposits from 2-1/2 percent to 3 percent. As a result, banks V^***
wlJB wish to encourage additional savings through higher rates may do so. Higher

>J V^/

The gross amount of borrowing that individuals have 4one on consumer credit
and on mortgage loans is much the same in 1956 as in 1955* New instalment credit
extension this year to date is slightly above 1955, while new mortgage loans
made are running slightly behind. But the big reason that individuals are not
t, O"0^ lyi^y- y" Uy i~y~ ^- ^ - "
i going into debt .as fast this year i^ the heavy repayments that they-have been
/

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j making on the big debts they piled up in earlier years. When individuals agree
w ~*v , ',"\^ y Km** \, ,<*> " * ""

toV borrow either through installment credit or mortgages these days, they almost
I universally agree to pay back theinoney through monthly payments. The act of
meeting those amortization payments is just as much saving as, for example, the
payment of life insurance premiums. This heavy volume of debt repayment becomes
directly available to the banks and insurance companies, and savings and loan
associations, and other creditors to relend.
Business corporations are also a primary source of savings. Their retained
earnings are running at a rate of almost half of their income after taxes.
These earnings, plus current depreciation allowances, provide for the internal
financing of a large share of the present plant and equipment needs of American
industry.
But the savings we as a people are making are still not enough to pay for
everything that we want to do. The demand is just much greater.
So people are borrowing money — a great deal of it. As long as people
borrow money that other people have already saved, there is no great problem
for the economy. But when they try to borrow more money than is being saved,
then the price of money — the interest rates — go up. Lenders have to decide
which loans they will make and which they will turn down. The banks have to
decide whether they, in turn, will borrow from the Federal Reserve to help meet
the demand. That means, in effect, creating new money, and that is where the
danger of inflation comes in. This is a real danger which we must not ignore.

*yi -„j «Ji

-lilt is no wonder that our total national product is breaking all records
and that more people are working than ever before. All of this intensive
activity takes money — more than ever before in peacetime. We must find the
money to finance this activity without inflation ~ without, in effect, printing
new money.
To meet this situation we need to spend less and save more.
Here is where a new day is dawning for savings, for your business. It is
fortunate that we are a saving people. Our country is doing a tremendous job
of saving money and applying it to increasing our wealth and wealth-producing
assets. But we are not saving enough.
The money is here to save. Individual income in the third quarter of 1956
reached an all-time record rate of $288 billion a year after taxes, compared
$27U billion for
with/the third quarter of 1955.
Individuals are saving now at a rate of over $21 billion a year as compared
the third quarter of
with less than $l6 billion in/1955. The current dollar rate of individual
savings is higher than ever before in our history except for World War II and
a brief period during the Korean War. The percentage saved in relation to
income is also high. Individuals are now saving about 7-1/2 percent of their
incomes after taxes, as against 6 percent last year and less than 5 percent on
the average during the years between World War II and Korea.
This increase in the rate of savings during the last year reflects to some
extent individual deposits in the banks, increased shares in savings and loan
associations, and some increased purchase of securities. But these changes
have been slight in comparison to the substantial increase in net saving that
has come about simply because individuals aren't adding, on net balance, to
their debts this year nearly as much as in 1955, and are repaying old debts rapidl;

While the rate of expansion in bank loans has been slowing down this fall,
the volume of bank loans outstanding has broken all records and is more than
10 percent higher than this time a year ago.
The figures which your industry compiles show that you have been lending
more money than ever before and that you are heavily committed for a good maiy
months ahead.
The tremendous demand for money is also reflected in the program of American
business for capital expenditures. In the year 1952 these expenditures totaled
$26-1/2 billion. This year business is spending $35 billion, an increase of
one-third in four years. Government agencies have just made an estimate for
annual
the first quarter of 1957 of a still highei/rate of $38 billion.
This demand for money is paralleled by an insistent demand for men and
materials. Employment is at high levels; many materials are in short supply.
It is not hard to explain this huge demand for mmey and men and materials.
First, there is population growth, which has jumped to a new high level.
Four million children were born last year, as against an average of two and onehalf million in the thirties. This means many more schools, more churches, more
utilities, more streets, and a*gpeett many more houses. It means more demand for
food, clothing, and equipment. It requires an expansion of productive facilities
of all kinds.
Second, there is the amazing progress of science. The vast research programs
of business and Government have uncovered a whole new vista of progress to improvs
the well-being of the people.
A third factor for dynamic growth, I believe, is the confidence both the
individual and private enterprise feel today to plan for the future, partly becaul
Government is providing an encouraging economic climate, based on sound money
and sound economic policies.

t-)

\m* \mf

in the United States. In the Treasury we have been grateful for the excellent
speeches and articles by members of your industry in recent months on this
subject, and the great understanding you have shown.
In this country we are now going through one of the critical struggles to
maintain sound money, as significant, perhaps, as the gold and silver arguments
of the middle 90 *s or the discussions 20 years later which resulted in the
establishment of the Federal Reserve System.
This is a time when maintaining sound money inevitably hurts some people,
and that means cries of distress and political pressures on the people or
institutions responsible for Government monetary policies.
It has been encouraging over recent months to find a growing public understanding of the issues, of the reasons why mortgage money, for example, is harder
to get or why states, municipalities, and business are all paying higher prices
for money.
A few months ago, all too many people believed that "tight money" was simply
a result of policies pursued by the Federal Reserve System or by the Treasury.-—,
Your leaders have helped to explain that the causes of i\m piupemm'b appawcat money
shortage run much deeper.
\ The basic cause of "tight money" is a great and abundant prosperity, and
a jiow, confidence in the future. This means a demand for money which is in excess
of the amount of money the people are saving. That is the real reason why the
price of money is high and why it is less readily available.

g%gre^^nr>"^ue«&wQ^k^bo^t-'^hliy.

The figures are convincing. They shov

that the volume of security issues for new capital, both corporate and
municipals, this year may exceed $15-l/2 billion, compared with something
over il4-l/2 billion in 1955, which was the biggest previousxear._

/2;oj/*-iC.sj

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;

REMARKS BY y. RANDOLPH BURGESS, UNDER SECRETARY
OF THE TREASURY, AT THE FIFTIETH A N N i m S A R Y
MEETING 0 ^ THE LIFE INSURANCE ASSOCIATION OF
AMERICA, mWi. WALDORF-ASTORIA, NEW YORK,
NEW YORK A THURSDAY, DECEMBER 13, 1956.
*mmffm9m%%\

My
^4

^&['m&yi&iW7m*mMFr 1

•MMMMWW

Let me begin by expressing appreciation for the many things which this
organization and your industry have done which are helpful to us in the Treasury
Department.
Your Economic Committee, headed by Carroll Shanks, has met with us at
frequent intervals and advised us, not only on our financing problems, but
more broadly on the whole economic situation.
We have appreciated particularly the support your industry has given to
mortgage financing through the voluntary mortgage purchase plan. Real estate
financing was one of the areas hardest hit by scarce money. Your efforts have
been most helpful in meeting a real human need in making mortgage mon^y available
for low-ccst housing in areas where it was scarce. Besides"!tS^ttlSfiaii benefifcfesy,
tey&

Whenever the mortgage market is tight, the social and political pressure for

putting the Government directly into mortgage lending is very great. That we
should avoid just as far as possible. It hurts the budget, delays tax reductions
and has all the disadvantages of extending governmental paternalism into the
lives of our people. Your affirmative effort in pushing your own enterprise
into scarce money areas has helped fill a vacuum which threatened to draw
Government intervention.
The struggle is far from won. We in Government are doing our best to confor
to
m&CL sound long-terra principles, but it is just as important to avoid the vacuums
which induce direct Government action. So please keep up the good work.
You are also most helpful in explaining to your policy holders and to the
public the application of the principles of sound money to the present situation

U _ / - T -b

TREASURY DEPARTMENT
Washington
REMARKS BY W. RANDOLPH BURGESS, UNDER
SECRETARY OF THE TREASURY, AT THE
FIFTIETH ANNIVERSARY MEETING OF THE LIFE
INSURANCE ASSOCIATION OF AMERICA, AT THE
WALDORF-ASTORIA, NEW YORK, NEW YORK,
2:00 P.M., E.S.T., THURSDAY, DECEMBER 13,

1956.
THE MONEY SUPPLY FOR A HEALTHY ECONOMY
Let me begin by expressing appreciation for the many things
which this organization and your industry have done which are
helpful to us in the Treasury Department.
Your Economic Committee, headed by Carroll Shanks, has met
with us at frequent intervals and advised us, not only on our
financing problems, but more broadly on the whole economic
situation.
We have appreciated particularly the support your industry
has given to mortgage financing through the voluntary mortgage
purchase plan. Real estate financing was one of the areas hardest
hit by scarce money. Your efforts have been most helpful in
meeting a real human need in making mortgage money available for
low-cost housing in areas where it was scarce.
Whenever the mortgage market is tight, the social and
political pressure for putting the Government directly into
mortgage lending is very great. That we should avoid just as far
as possible. It hurts the budget, delays tax reductions, and has
all the disadvantages of extending governmental paternalism into
the lives of our people. Your affirmative effort in pushing your
own enterprise into scarce money areas has helped fill a vacuum
which threatened to draw Government intervention.
The struggle is far from won. We in Government are doing our
best to conform to sound long-term principles, but it is just as
important to avoid the vacuums which induce direct Government
action. So please keep up the good work.
You are also most helpful in explaining to your policy holders
and to the public the application of the principles of sound
money to the present situation in the United States. In the
Treasury we have been grateful for the excellent speeches and
H-1233

articles by members of your industry in recent months on this
subject, and the great understanding you have shown.
In this country we are now going through one of the critical
struggles to maintain sound money, as significant, perhaps, as
the gold and silver arguments of the middle 90fs or the
discussions 20 years later which resulted in the establishment of
the Federal Reserve System.
This is a time when maintaining sound money inevitably hurts
some people, and that means cries of distress and political
pressures on the people or institutions responsible for Government
monetary policies.
It has been encouraging over recent months to find a growing
public understanding of the issues, of the reasons why mortgage
money, for example, is harder to get or why states, municipalities,
and business are all paying higher prices for money.
A few months ago, all too many people believed that "tight
money11 was simply a result of policies pursued by the Federal
Reserve System or by the Treasury. Your leaders have helped to
explain that the causes of apparent scarcity of money run much
deeper.
The basic cause of "tight money" is a great and abundant
prosperity, and high confidence in the future. This means a
demand for money which is in excess of the amount of money the
people are saving. That is the real reason why the price of money
is high and why it is less readily available.
The figures are convincing. They show that the volume of
security issues for new capital, both corporate and municipals,
this year may exceed $15-1/2 billion, compared'with something
over $14-1/2 billion in'1955, which was the biggest previous year.
While the rate of expansion in bank loans has been slowing
down this fall, the volume of bank loans outstanding has broken
all records and is more than 10 percent higher than this time a
year ago.
The figures which your industry compiles show that you have
been lending more money than ever before and that you are heavily
committed for a good many months ahead.
The tremendous demand for money is also reflected in the
program of American business for capital expenditures. In the
year 1952 these expenditures totaled $26-1/2 billion. This year
business is spending $35 billion, an increase of one-third in four
years. Government agencies have just made an estimate for the
first quarter of 1957 of a still higher annual rate of $38 billion.

/; r, 0
- 3 T O 6mm
This demand for money is paralleled by an insistent demand
for men and materials. Employment is at high levels; many
materials are in short supply.
It is not hard to explain this huge demand for money and men
and materials.
First, there is population growth, which has jumped to a new
high level. Four million children were born last year, as
against an average of two and one-half million in the thirties.
This means many more schools, more churches, more utilities, more
streets, and many more houses. It means more demand for food,
clothing, and equipment. It requires an expansion of productive
facilities of all kinds.
Second, there is the amazing progress of science. The vast
research programs of business and Government have uncovered a whole
new vista of progress to improve the well-being of the people.
A third factor for dynamic growth, I believe, is the confidence both the individual and private enterprise feel today to
plan for the future, partly because Government is providing an
encouraging economic climate, based on sound money and sound
economic policies.
It is no wonder that our total national product is breaking
all records and that more people are working than ever before.
All of this intensive activity takes money — more than ever before
in peacetime, We must find the money to finance this activity
without inflation — without, in effect, printing new money.
To meet this situation we need to spend less and save more.
Here is where a new day is dawning for savings, for your
business. It is fortunate that we are a saving people. Our
country is doing a tremendous job of saving money and applying it
to increasing our wealth and wealth-producing assets. But we are
not saving enough.
The money is here to save. Individual income in the third
quarter of 1956 reached an all-time record rate of $288 billion
a year after taxes, compared with $274 billion for the third
quarter of 1955.
Individuals are saving now at a rate of over $21 billion a
year as compared with less than $16 billion in the third quarter
of 1955. The current dollar rate of individual savings is
higher than ever before in our history except for World War II and
a brief period during the Korean War. The percentage saved in
relation to income is also high. Individuals are now saving about
7-1/2 percent of their Incomes after taxes, as against 6 percent
last year and less than 5 percent on the average during the
years between World War II and Korea.

- 4 This increase in the rate of savings during the last year
reflects to some extent individual deposits in the banks, Increased
shares in savings and loan associations, and some increased purchase of securities. But these changes have been slight in comparison to the substantial increase in net saving that has come
about simply because individuals aren?t adding, on net balance, to
their debts this year nearly as much as in 1955, and are repaying
old debts rapidly.
The gross amount of borrowing that individuals have done on
consumer credit and on mortgage loans is much the same in 1956 as in
1955. New installment credit extension this year to date is
slightly above 1955, while new mortgage loans made are running
slightly behind, But the big reason that individuals are not going
into debt as fast this year is the heavy repayments that they have
been making on the big debts they piled up in earlier years. When
individuals agree to borrow either through installment credit or
mortgages these days, they almost universally agree to pay back the
money through monthly payments. The act of meeting those amortization payments is just as much saving as, for example, the payment of
life insurance premiums. This heavy volume of debt repayment
becomes directly available to the banks and insurance companies, and
savings and loan associations, and other creditors to relend.
Business corporations are also a primary source of savings.
Their retained earnings are running at a rate of almost half of
their income after taxes. These earnings, plus current depreciation
allowances, provide for the internal financing of a large share of
the present plant and equipment needs of American industry.
But the savings we as a people are making are still not enough
to pay for everything that we want to do. The demand is just much
greater.
So people are borrowing money — a great deal of it. As long
as people borrow money that other people have aireadJr saved, there is
no great problem for the economy. But when they try to borrow more
money than is being saved, then the price of money — the interest
rates — go up. Lenders have to decide which loans they will make
and which they will turn down. The banks have to decide whether
they, in turn, will borrow from the Federal Reserve to help meet the
demand. That means, in effect, creating new money, and that is
where the danger of inflation comes in. This is a real danger which
we must not ignore.
Thus, the first thing we must do is to exercise some restraint
in spending — not to try to do everything at once. Higher money
rates and tight money act as such a restraint. That is why the
Federal Reserve System is allowing money rates to rise, as the
demand for funds continues to outrun the supply.

- 5When there is vigorous competition for money, as there is today,
not everyone can get all the money he wants. This heavy demand for
money has hit especially mortgage money for home building. This is
true despite the fact that mortgage lending is still going forward
at high levels. The recent announcement by the Federal Housing
Administration of an increase in the interest rate on insured mortgages from 4-1/2 percent to 5 percent was designed specifically to
bring interest rates in this important part of the housing market in
line with current conditions.
Some other borrowers are finding their projects held back by
difficulties in getting money. This is not a pleasant experience
for anybody. But there is, fortunately, growing understanding that
these restraints are essential to avoid inflation. If the Federal
Reserve, in effect, printed money to meet all demands for money —
or even just those that seemed desirable — it would cause price
inflation. With employment high, and with many scarce materials, a
further increase in activity would simply push up prices.
So the only sound way to finance more rapid economic growth is
by increasing savings. Higher money rates themselves encourage
saving. Higher rates mean that banks are offering their depositors
greater inducements to save. As you know, just recently the Federal
Reserve Board and the Federal Deposit Insurance Corporation increased
the maximum interest rate which commercial banks are permitted to
pay on savings deposits from 2-1/2 percent to 3 percent. As a
result, banks which wish to encourage additional savings through
higher rates may do so. Higher rates also make life insurance more
attractive as insurance companies are able to raise their dividends
to policy holders. Of course, these higher rates take time before
they actually result in higher savings, but the American people have
sharp pencils, and they are today responding to these more attractive
rates.
Another incentive to save is confidence in the continuing value
of the dollar. Inflationary Government policies helped cut the purchasing power of the dollar from 100 cents in 1939 to 52 cents by
the end of 1952. Saving under those conditions was a frustrating
experience.
Since 1952, however, we have enjoyed a remarkable period of
price stability. The purchasing power of the dollar has held close
to its value for four years — with a loss of only about a cent and
a half.
This didn't just happen. It reflects the determination of the
Government to help keep the dollar sound.
Under this Administration, the Federal budget has been
brought into balance from an inherited $9-1/2 billion deficit.
A surplus of more than $1-1/2 billion last year gave a start in
iebt reduction. The public debt today is $276-1/2 billion,
compared with $280 billion a year ago. Another balanced budget
Ls In prospect, and further debt reduction. Government deficits

- 6are, thus, no longer a source of inflation and instability. But
the pressure for spending is great and we must all be on guard
to keep the budget in balance.
The Federal Reserve System has been freed to exercise its
independent judgment in the determination of monetary policies
in the public interest. The broad program of the Federal Reserve
in checking the tendency toward overexpansion of credit has been
helpful in keeping the pressures toward inflation within bounds.
Bursts of inflation are too often the prelude to recession
and unemployment. But if we continue present policies — with
effective credit restraint, stable prices, and a growing interest
in savings — our prospects for tHe sustained and vigorous growth
of our country stagger the imagination.
But in addition to higher money rates and a favorable
governmental climate to encourage savings, it takes salesmanship —
shoe leather. That is where our savings institutions have shown
their capacity. You are doing a fine job encouraging people to
save. This is not only good for your business; it is good for
your country.
To reach the high goals of prosperity and well-being which are
within our grasp, we must save more to have the funds to build a
new and greater America. That is the reason why what you are doing
in encouraging saving, and investing the savings soundly in
business, industry, and homes, is more important than ever.

0O0

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

Country of Origin
—

"1 Established
: TOTAL QUOTA
*

United Kingdom
4,323,457
Canada
....
239,690
France . . . . . . .
. .
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
5,482,509
1/ Included in total imports, column 2.
Prepared in the Bureau of Customs.

:
Total Imports
: Established s
Imports
TJ
•. Sept. 20, 1956, to % 33-1/3$ of s Sept. 20, 1956
t Dec. 11. 1956
s Total Quota : to Deo. 119 1956
28,314
239,690
-

1,441,152
75,807

22,747
14,796
12,853

22,775

25,443
7,088
1,599,886

290,779

28,314

22,775
'

51,089

IMMEDIATE RELEASE,
Wednesday, December 12, 1956.

TREASURY DEPARTMENT
Washington
H-1234

Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the President1^ 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 3/411
Imports Sept. 20. 1956. to December llf 1956
Country of Origin Established Quota Imports Country of Origin Established Quota
Egypt and the Anglo- Honduras ..... . 752
Egyptian Sudan . . .
783,816
Paraguay . . . . . . .
Peru
247,952
Colombia . . . . . . .
British India
2,003,483
84,415
Iraq .
China
1,370,791
British East Africa . .
Mexico
8,883,259
8,883,259
Netherlands E. Indies.
Brazil ........
618,723
600,000
Barbados
Union of Soviet
l/0ther British W. Indies
Socialist Republics .
475,124
Nigeria
Argentina
5,203
2/0ther British W. Africa
Haiti
237
^Other French Africa . .
Ecuador .
9,333
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" Cotton 1-1/8" or more •
[mports Sept. 20. 19 56. to Dec. 1. 1956
Imports August 1, 19 4 t o
Established Quota (Global) Imports Established Quota (Global) Imports
70,000,000 208,515 45,656,420 3,824,757

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

Dec. 1. 1956. incl.

IMMEDIATE RELEASE,
Wednesday, December 12, 1956.

TREASURY DEPARTMENT
Washington

H-1234

Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the Presidents 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
Imports Sept. 20.
" 1956.
"--' to Decern
" J£j6
Established Quota Imports

Country of Origin

.18

Established Quota

Country of Origin

Honduras
Egypt and the AngloParaguay
783,816
Egyptian Sudan • • •
Colombia
247,952
.
e
«
*
9
Peru ,
84,415
2,003,483
British India
British East Africa . •
1,370,791
China » . * • •» »
8,883,259
Netherlands E. Indies.
8,883,259
Mexico . . * 0 *
600.000
Barbados * * « » * a »
618,723
Brazil
l/0ther British W. Indies
Union of Soviet
Nigeria . . <> * • * •
475,124
Socialist Republics ,
2/0ther British W. Africa
5,203
Argentina *
^Other French Africa
237
Haiti
Algeria and Tunisia
9,333
Ecuador
1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
2/ Other than Algeria, Tunisia, and Madagascar.
«

«s

•

««9«39&9 .

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

.•••••*••

•y . j * • • .

Cotter., harsh or rough, of less than 3/4w
Imports Sept. 20, 19 56. to Dec. 1, 1956 .
Established Quota (Global)

Imports

70,000,000

208,515

Cotton 1-1/8" or more
Imports August 1. 19 56to Dec. 1. 1956. incl
Established Quota (Global) Imports
45,656,420 3,824,757

Imports

«£COTTON WASTES
(In pounds)
COTTON CARD STRIPS maderfrom 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 VALUE2 Provided, however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more
in staple length in the case of the following countries* United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy*
Established
TOTAL QUOTA

Country of Origin
United Kingdom ,
Canada
France . . . . .
British India .
Netherlands • •
Switzerland . .
Belgium . . . .
japan

. . . < § .

China . . .
Egypt . . .
uuDa . . . .
Germany • •
Italy c . .

.•
..
.
•.
. .

«
* •

•

* *

1 .

9 9

•5 .

* •

. 9

. .
9 .

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

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

i
Total Imports
: Sept. 20, 1956, to
: Dec. 11, 1956
28,314
239,690

Established s
"~
Imports1/
33-1/3? of 1 Sept. 20, 1956
Total Quota 2 to Dec. 11» 1956
1,441,152

28,314

caea

75,80?
car*

22,Y47

14,796
12,853

22,775

25,443
7.088

22,775

290,779

1,599.886

51,089

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Wednesday* December 12, 1956<

403
H-1235

The Bureau of Customs announced today the following preliminary
figures showing the imports for consumption from January 1, 1956, to
December 1, 1956, inclusive, of commodities for which quotas were
established pursuant to the Philippine Trade Agreement Revision Act
of 1955:

Commodity

: Established Annual
:
Quota Quantity

Buttons

807,500

Imports as of
Dec. 1, 1956
Gross

670,663

Cigars 190,000,000

Number

Coconut Oil U25,600,000

Pound

169,897,505

Cordage 6,000,000

Pound

k,618,036

(Refined
Sugars
(Unrefined
Tobacco 6,175,000

3,8iiU,790

19,8U8,920
1,901*, 000,000

irouno.

Pound

1,88U,000,000
U,575,l62

tir^
KJ

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Wednesday, December 12, 1956.

H-1235

The Bureau of Customs announced today the following preliminary
figures showijig the imports for consumption from January 1, 1956, to
December 1, 1956, inclusive, of commodities for which quotas were
established pursuant to the Philippine Trade Agreement Revision Act

of 1955s

Commodity
^^^^^

•

s
t Unit s
: Established Annual %
of
8 Imports as of
. Quota Quantity
. QUantity 2 Dec. 1, 1956
•

•

Buttons 807,500 Gross 670,663
Cigars 190,000,000 Number 3,8/4^,790
Coconut Oil U25,600,000 Pound 169,897,505
Cordage 6,000,000 Pound k,618,036
(Refined 19,8/48,920
Sugars
(Unrefined

1,90U,000,000

Tobacco 6,175,000 Pound U,575,162

Pound
1,881*, 000,000

IMMEDIATE RELEASE,
Wednesday, December 12. 195o

TREASURY DEPARTMENT
Washington

H-1236
« ^.. V*<

Commodity
Tariff-Rate Quotas:
Cream, fresh or sour Calendar Year

1,500,000

Gallon

669

Whole milk, fresh or sour Calendar Year

3,000,000

Gallon

1,972

Cattle, less than 200 lbs. each

200,000

Head

5,050

Head

3,720

12 mos. from
April 1, 1956

Cattle, 700 lbs. or more each .. Oct. 1, 1956 (other than dairy cows)
Dec. 31, 1956
Fish, fresh or frozen, filleted,
etc., cod, haddock, hake,
pollock, cusk, and rosefish ... Calendar Year
Tuna fish

120,000

35,196,575

Pound

Quota Filled

April 16, 1956
Dec. 31, 1956

28,757,393

White or Irish potatoes:
Certified Seed
Other

12 mos. from
Sept. 15, 1956

150,000,000 Pound
60,000,000 Pound

Walnuts

Calendar Year

5,000,000

Pound

Quota Filled

Alsike clover seed

12 mos. from
July 1, 1956

2,500,000

Pound

123,282

Peanut Oil

12 mos. from
July 1, 1956

Woolen fabrics

Oct. 1, 1956 Dec. 31, 1956

Pound 25,8U9,5Wi

31,688,580
9,378,069

80,000,000

Pound

3,500,000

Pound

3,206,280

1,709,000

Pound

Quota Filled

182,280,000
3,720,000

Pound
Pound

182,212,911*

J4MEDIATE RELEASE,
lednesday, December 129 1956

mm*

TREASURY DEPARTMENT
Washington

H-1236

Period and Quantity

Commodity

Unit :
of
2Imports as of
Quantity: Dec. 1, 1956

Tariff-Rate Quotas:
Cream, fresh or sour .

Calendar Year

Gallon

669

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

3,000,000 Gallon

1,972

Cattle, less than 200 lbs. each 12 mos0 from
April 1, 1956

200,000 Head

5,050

•

e o a . a . e . e

1,500,000

Cattle, 700 lbs. or more each .. Oct. 1, 1956 - 120,000
(other than dairy cows)
Dec. 31, 1956
Fish, fresh or frozen, filleted,
etc., cod, haddock, hake,
pollock, cusk, and rosefish ... Calendar Year
Tuna fish

o « 3 . < * « e e e o o o « o » . t t

. . » .

White or Irish potatoes
Certified Seed
Other

.• 12 mos. from
.. Sept, 15, 1956

<t 9 v « . o e

. . . . . o . o s . a e o . o . a . s . . .

Walnuts

. April 16, 1956
Dec. 31, 1956

. . . . . e . o

Alsike clover seed
O

. t

Peanut Oil ..-.,..
.9

Woolen fabrics

. . . . . .

9 9 *

0 .

9 9 . 9

35,196,575

Head

Pound

3,720

Quota Filled

28,757,393 Pound 25,8h9,5l4U

150,000,000
60,000,000

Pound
Pound

31,688,580
9,378,069

Calendar Year

5,000,000 Pound

Quota Filled

12 mos. from
July 1, 1956

2,500-000 Pound

123,282

.. 12 mos* from
July 1, 1956
• Oct. 1, 1956 Dec. 31, 1956

80,000,000 Pound
3,500,000 Pound

3,206,280

Absolute Quotas:
Peanuts, whether shelled, not
shelled, blanched, salted, prepared, or preserved (including
roasted peanuts, but not
12 mos. from
including peanut butter)
Aug. 1, 1956
Rye, rye flour, and rye meal
12 mos. from
July 1, 1956
Canada
Other Countries
(l) Imports through December 11, 1956.

1,709,000

Pound

182,280,000
3,720,000

Pound
Pound

Quota Filled

182,212,91^^

- 3-

or by any local taxing authority. For purposes of taxation the amount of discount
at which Treasury bills are originally sold by the United States is considered to
be interest. Under Sections k$k (b) and 1221 (5) of the Internal Revenue Code of
195U the amount of discount at which bills issued hereunder are sold is not
considered to accrue until such bills are sold, redeemed or otherwise disposed of
and such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between the price paid
for such bills, whether on original issue or on subsequent purchase, and the
amount actually received either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. bl&, 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 J"! "}

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 December 20, 1956 , in cash or other immediately available funds
or in a like face amount of Treasury bills maturing December 20, 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 195U. The bills
are subject to estate, inheritance, gift or other excise taxes, whether Federal

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

4"; 4
BQgKOgXX
KERHK
TREASURY DEPARTMENT
Washington

A. M.
KSK RELEASE/ MBKKXHS NEWSPAPERS,
Thursday, December 15. 1956

^ ^ j
/

5J
The Treasury Department, by this public notice, invites tenders for
$ 1,600,000,000 , or thereabouts, of
in exchange for Treasury bills maturing

-day Treasury bills, for cash and

December 20, 1956

, in the amount of

$ 1,600,404,000 , to be issued on a discount basis under competitive and non-

8* —
competitive bidding as hereinafter provided. The bills of this series will be
dated
December 20, 1956 , and will mature March 21, 1957
, 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./tam ofclock p.m., Eastern Standard time, Monday, December 17, 1956 .

^05
Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99*92$. Fractions may not be used.

It is urged that tenders

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

TREASURY DEPARTMENT

415

WASHINGTON, D.C.

RELEASE A.M. NEWSPAPERS,
Thursday, December 13, 1956.

H-1237

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 20, 1956,
in the amount of $1,600,404,000, 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 20, 1956,
when the face
and will mature March 21, 1957,
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 17, 1956.
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 recognised dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bill's 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 December 20, 1956, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing December 20, 195(
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, 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

- 2 -

41.6
RELEASE A. M. WfcWSPAPEHS,
Thursday, D§o«.b«r 13i 1956.
Tha Traaaury Department announced last evening

TMA.W

tenders.xor 81«>OOQ.OOOJ&0I

or thereabouts, mt Tax Anticipation Series 95-day Treasury bills to ba dated December
Jf.

1956, and to mature March 22, 1957, which ware offered on December 10, were opened at
Federal Reserve Banks on December 12.
The details of this issue are as followss
Total applied for - 13,780,088,000
Total accepted
- 1,000,086,000

(includes J351,o7h,000 entered on a
noncompetitive basis and accepted ia
full at the average price shown belowV
rVi
t ,\
Range of accepted competitive bids* (Excepting one tender of $300,000)
High - 99*352 Equivalent rate of discount approx. 2«M$*» per awum
Lw
- 99.303
*
"
•
"
"
2.SklS) *
Average - 99.318 » « pu« • » ».ttM « •
^i

-w

•

(3 percent of the amount bid for at the lew price was accepted)
Federal Reserve
District
'* a PL

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

Toxmi
Applied xor

Total f
Accepted "

155,856,000
1,691,911,000,
1114,285,000
187,111,000
125,1*9,000
156,1*75,000
538,397,000
130,603,000
9lt,liJt2,000
9b,tt72,O00
239,989,000
251,355.000

$3,780,088,000

32,606,000
1*01,891,000
27,21(6,000
2li, 731,000
50,271,000
66,170,000
166,707,000
lt2,378,000
1(5,832,000
1(8,268,000
81,839,000
10,11(5,000

11,000,086,000

TREASURY DEPARTMENT
WASHINGTON, D.C.
QuEASE A. M. NEWSPAPERS,
hursday, December 13, 1956,

H-1238

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

r thereabouts, of Tax Anticipation Series 95-day Treasury bills to be dated Dece
,956, and to mature March 22, 1957, which were offered on December 10, were opened at the
federal Reserve Banks on December 12.
The details of this issue are as followst
Total applied for - $3,780,088,000
Total accepted
- 1,000,086,000

(includes $35l,87l*,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids 2 (Excepting one tender of $300,000)
High
Low
Average

99.352 Equivalent rate of discount approx. 2.1*56$ per annum
99.303
"
«
n
«
*
2.61*l£ n
*
- 99.318

2.585# "

(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

TOTAL

155,856,000
1,691,911,000
111,288,000
187,111,000
125,189,000
156,1*75,000
538,397,000
130,603,000
9l*,l*l*2,000
9l*,l*72,000
239,989,000
251,355,000

$3,780,088,000

32,606,000
1*01,891,000
27,21*8,000
2U,731,000
50,271,000
66,170,000
168,707,000
1*2,378,000
1*5,832,000
1*8,268,000
81,839,000
10,1/45,000

$1,000,086,000

4* a
t

mm. <S

Ats
/ * .&<

J r?•• /.? 4

kM^'\^ a^r

p..yy *>

m-*y *4

J*--

,.,t- r <

She Treasuiy Department has instructed Customs
field officers to withhold appraisement of entries
of f roien whole albacore from Jfcpan pending investigation to determine whether the albacore Is being
a d d in the United States at less than fair value,
Oader the Antidumping Act a determination of
sales la the United States at lass than fair w i n s
would require reference of the case to the Tariff
Ccewission, which would consider whether African
iaAostffgr was being injured. Both dumping price and
m e t be shown to Justify a finding of dumping
the law*

(jCrn^M^
**mp

4XU
H/,t

i. i *

TREASURY DEPARTMENT

4:3

WASHINGTON, D.C.

IMMEDIATE RELEASE,
Thursday, December 13, 1956.
^

—

•

—

H-1239

m>-mmmmmmtm^m^mmmmm

The Treasury Department has instructed
Customs field officers to withhold appraisement
of entries of frozen whole albacore from Japan
pending investigation to determine whether the
albacore is being sold in the United States at
less than fair value.
Under the Antidumping Act a determination of
sales in the United States at less than fair value
would require reference of the case to the Tariff
Commission, which 'would consider whether American
industry was being injured.

Both dumping price

and injury must be shown to justify a finding of
dumping under the law.

0O0

• *W2G

M^'mfo

Under Secretary of the Treasury W . Hai^olph Burgess, the Bolijan Ambassador,
Senor Bon Victor Andrade, and the President of the Central Bank of Bolivia, Br.
Franklin Antesana Baz, have signed an exchange agreement designed te support a
comprehensive Bolivian program for abolishing trade ami exchange controls and
attaining increased economic stability.
The Bolivian Government proposes to introduce a free exchange saarket in
vfoich the value of its currency milt, the boliviano, will be determined by basic
supply and demand forces; it proposes to discontinue all foreign exchange and
issport controls, the Bolivian authorities mill operate a stabilisation ftaad to
minimise exchange rate fluctuations arising from temporary or erratic influences,
but not te resist fundamental changes dictated by market forces.
fhe Bolivian Government has announced supporting domestic measures including
Increased taxes, strict control of bank credit, and reduction of expendittcres by
the government and governmental agencies.
In connection with these economic refcrms, the Bolivian authorities have
entered into a stand-by arrangement with tho International Monetary Fund. Further Important support for the Bolivian stabilisation effort will be provided by
the International Cooperation Administration nhieh has arranged te allocate a
specific portion of If. S. aid to Bolivia for direct support of the Bolivian
stabilisation effort.
The Treasury Exchange Agreement supplements these arrangements. It provides that tee Bolivian authorities may request the V. S. Exchange Stabilization
Fund to purchase bolivianos up to an amount equivalent to $7*5 nUliom, should
the occasion for such purchase arise. Bolivia would subsequently repurchase for
dollars any bolivianos so acquired by tee Treasury.

TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE A0M. NEWSPAPERS,
Saturday, December 15, 1956.

H-1240

Under Secretary of the Treasury W. Randolph Burgess,
the Bolivian Ambassador, Senor Don Victor Andrade, and the
President of the Central Bank of Bolivia, Dr. Franklin
Antezana Paz, have signed an exchange agreement designed
to support a comprehensive Bolivian program for abolishing
trade and exchange controls and attaining increased economic
stability.
The Bolivian Government proposes to introduce a free
exchange market in which the value of its currency unit,
the boliviano, will be determined by basic supply and
demand forces; it proposes to discontinue all foreign
exchange and import controls<, The Bolivian authorities
will operate a stabilization fund to minimize exchange
rate fluctuations arising from temporary or erratic influences, but not to resist fundamental changes dictated by
market forces.
The Bolivian Government has announced supporting domestic measures including increased taxes, strict control of
bank credit, and reduction of expenditures by the government
and governmental agencies.
In connection with these economic reforms, the Bolivian
authorities have entered into a stand-by arrangement with
the International Monetary Fund. Further important support
for the Bolivian stabilization effort will be provided by
the International Cooperation Administration which has
arranged to allocate a specific portion of U. S. aid to
Bolivia for direct support of the Bolivian stabilization
effort.
The Treasury Exchange Agreement supplements these
arrangements. It provides that the Bolivian authorities
may request the U. S. Exchange Stabilization Fund to purchase bolivianos up to an amount equivalent to $7.5 million,
should the occasion for such purchase arise. Bolivia would
subsequently repurchase for dollars any bolivianos so
acquired by the Treasury. oOo

422
RELEASE i. X. NEWSPAPERS,
Tuesday, December 18, 1956.
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 20, 1956, and te mature
March 21, 1957, which were offered on December 13, were opened at the Federal Reserve
Banks on December 1?.
The details of this issue are as follows;
Total applied for - 18,351,675,000
Total accepted
- 1,600,125,000

Range of accepted competitive bidet

(includes 1333,31*0,000 entered on a
noncompetitive basis and accepted in
full at tee average price shown below)
(Excepting one tender of #100,000)

High
Low

- 99*1%) Equivalent rate of discount approx* 3*2kk$ per annum
- 99.152
•
• •
»
»
3.355* •
*

Average

- 99*158

•

3.331* "

(75 percent of the amount bid for at the low price was accepted)
Federal Reserve
District

Total
Applied for

Total
Accepted

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

$
37,201,000
1,627,528,000
39,777,000
76,568,000
23,206,000
kk>62$,QQO
251,675,000
37,1*1*6,000
15,327,000
39,761,000
314,106,000
121**1)55*000

$2,351,675,000

$1,600,125,000

TOTAL

fis/

31,951*000
973,153,000
2U,777,000
76,568,000
23,206,000
lt3,825,O00
182,300,000
37,W»6,000
15,327,000
39,761,000
3U,lQ6,ooo
117.705,000

TREASU
WASHINGTON, D.C
RELEASE A. Ma NEWSPAPERS,
H-1241

fuesday, December 18, 1956,

The Treasury Department announced last evening that the tenders for Vo.,
thereabouts, of 91-day Treasury bills to be dated December 20, 1956, and to
, which were offered on December 13, were opened at the Federal
Banks on December 17
of this issue are as follows?
applied for ,600^125^

Range of accepted competitive bids?

(includes $333,31*0,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
(Excepting one tender of $100,000

rate of discount approx., 3o2iiU/6 per
n
w

n
tt

tt
w

«
w

3«355#
3.331#

tt
w

for at the low price was accepted)

District
New York
Richmond
Atlanta
Chicago
Kansas City
Dallas
San Francisco
TOTAL

Total
Applied for

Total
Accepted

$ 37,201,000
1,627,528,000
39,777,000
76,568,000
23,206,000
U*,625,000
251,675,000
37,UU6,000
15,327,000
39,761,000
3U,106,000
121,U5S,ooo

*? 31,951,000
973,153,000
2U,777,000
76,568,000
23,206,000
Ii3,825,000
182,300,000
37,10*6,000
15,327,000
39,761,000
31,106,000
117,705,000

$2,351,675,000

$1,600,125,000

- 3-

or by any local taxing authority. For purposes of taxation the amount of discount
at which Treasury bills are originally sold by the United States is considered to
be interest. Under Sections k$h (b) and 1221 (5) of the Internal Revenue Code of
195U the amount of discount at which bills issued hereunder are sold is not
considered to accrue until such bills are sold, redeemed or otherwise disposed of,
and such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between the price paid
for such bills, whether on original issue or on subsequent purchase, and the
amount actually received either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. hl8, 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 -

APml

m
or in a like face amount of Treasury bills maturing
December 27, 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 195U. The bills
are subject to estate, inheritance, gift or other excise taxes, whether Federal
or State, but are exempt from all taxation now or hereafter imposed on the principal
or interest thereof by any State, or any of the possessions of the United States,

TREASURY DEPARTMENT
Washington
A. M.
R8R RELEASE/ MBRJtm NEWSPAPERS,
Tuesday, December 189 1956
.

£/ 2 _ .

£S—
competitive bidding as hereinafter provided. The bills of this series will be
dated December 27, 1956 , and will mature March 28, 1957 , when the face

amount will be payable without interest. They will be issued in bearer form on

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,/tow o*clock p.m., Eastern Standard time, Friday, December 21, 1956 .
x ^
Tenders will not be received at the Treasury Department, Washington. Each tend

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 th
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 o

TREASURY DEPARTMENT
•wniPffffi" I I U L U U B » . I M — « M * M P I U U W W W

WASHINGTON,

RELEASE A.M0 NEWSPAPERS,
Tuesday, December 18, 1956.

H-1242

The Treasury Department, by this public notice, invites tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills, for
cash and In exchange for Treasury bills maturing December 27, 1956,
in the amount of $1,600,515,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
providedc The bills of this series will be dated December 27, 1956,
and will mature March 28, 1957,
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 ofclock p.m., Eastern Standard time,
Friday, December 21, 1956.
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 billls 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 December 27, 1956, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing December 27, 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 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.
0O0

STATUTORY DEBT LIMITATION
AS 0¥.^.\lY!S^Lml9.l..956

4imit.

Washington, M.5?.?!:..iZA.Mi?56
Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under authority
of that Act, and the face amount of obligations guaranteed as to principal and interest by the United States (except such guar*
anteed obligations as may be held by the Secretary of the Treasury), "shall^not exceed in the aggregate $275,000,000,000
(Act of June 26, 1946; U.S.C., title 31, sec. 757b), outstanding at any one time. For purposes of this section the current redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holder
shall be considered as its face amount." The Act of July 9, 1956,(PoLo 678 84th Congress) provides that during the period
beginning on July 1, 1956, and ending on June 30, 1957, the above limitation ($275,000,000,000) aha 11 be temporarily increased
by $3,000,000,000.
The following table shows the face amount of obligations outstanding and the face amount which can still be issued under
this limitation:
Total face amount that may be outstanding at any one time
«p278,000 9 000,000
OutstandingObligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills $24,l60f 7951000
Certificates of indebtedness
Treasury notes
,
BondsTreasury
Savings (current redemp. value)
Depositary.
Investment series
Special FundsCertificates of indebtedness
Treasury notes
Total interest-bearing
Matured, interest-ceased
..........
Bearing no interest:
United States Savings Stamps
Excess profits tax refund bonds
Special notes of the United States:
Internat'l Monetary Fund series
Total
1

19,523,309 ? 000
35.223.471,000
80,8331377•450
56>946,093»892
273 ,190 , 000
11.739.072,000
35,423,648,000
10.298,683,400
.

$ 78,907»575>000

14$,791,733»342

45,722,331,400
274,421,639,742
428,272,375

48,079,470
965,^91
1,662,000,000

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A
93,068,450
Matured, interest-ceased
760 ,175
v
Grand total outstanding
Balance face amount of obligations issuable under above authority

1.711,044,961
276,560,957,078

93,828,625
276.654.785.703
1,34%214,297

November 30, 1956
Reconcilement with Statement of the Public Debt...,
(Daily Statement of the United States Treasixy

.". .„
(Date)
S^SSSo..,?.?.!....?:?^^
{Date)

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

277,016,953,028
9*3. 8 2 8 , 6 2 5
277,110,781,653
455,995.950

276,65^.785.703
H-1243

42S

STATUTORY DEBT LIMITATION
1956

AS OF 1?1™}?L.??.;...

Dec* 1 7 , 1956

^ki; oa *;™«, „„ ™ . . u.m u - u u.. . L _ o

t .L_ t-

\ ««_i„,,

, <_ .,

$275,000,000,000

section the current zem
.,
.
..._.._.
, __ the option of the holder
shall be considered as its face amount. 0 ' T h e Act of July 9, 1956,(P-LJ 678 84th Congress) provides that during the period
beginning on July 1, 1956, and ending on June 30, 1957, the above limitation ($275,000,000,000) ahall be temporarily increased
y
by $3,000,000,000.
The following table shows the face amount of obligations outstanding and the face amount which can still be Issued undes
this limitation:
Total face amount that m a y be outstanding at any one time
$278,000,000,000
OutstandingObligations issued under Second Liberty Bond Act, as amended
Interest-bearing;
Treasury bills o«o»OQ*ao«0»0oo90oea«««»o»060O4*»a«i
Certificates of indebtedness..
• •0•••000*090000
Treasury notes
..ooo60o«*
BondsTreasury .. .
•oooaceooo»o*aooe«6ee«.o.0o«*«Oa
Savings (current redemp. value) ,..„.„<
I/CPOS ICfttt y*e«ee 0 0 0* *«i>e»M •••••• 0.00 oo oe so oeao 000 oe* ••

Investment series ...
00*o«eooo*00«c
Special Funds*
Certificates of indebtedness .......
Treasury notes;............... oei«eaeesl««
Totall interest-bearing ........
Matured, Interest-ceased ..
Bearing no interest:
United States Savings Stamps
Excess profits tax refund bonds
Special notes of the United States:
Internat'l Monetary Fund series.

Total

$2^,160,795.000
19.523,309,000
35.223.471.000 $ 78.907.575.000
80,833.377.450
56,946,093.892
273,190,000
11.739.072,000
35.423,648,000
10.298,683,400

149,791,733.342
45.722.331,400
274,421,639.742
428,272,375

48,079,470
965,491
1,662,000,000

...

1.711,044,961

276,560,957,078

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A 93,068,450
Matured, interest-ceased.. v.. 7o0 > 173
Grand total outstanding ..«,
Balance face amount of obligations issuable under above authority,..

93.828.625
,

276.654.785.703
1,345,214,297

November 30, 1956

Reconcilement with Statement of the Public Debt

(Date)
(Daily Statement of the United States Treasury ...™.?.5«?.?...n....! f.?...L
Outstanding277,016,953,028
Total gross public debt,..,
- *••**•
Guaranteed obligations not owned by the Treasury....... ,...,.,.. «...
93.828,625
Total gross public debt and guaranteed obligations.
277.110,781,653
Deduct • other outstanding public debt obligations not subject to debt limitation........... .......

455.995.950
276,654,785,703

H-1243

D,9enh.r 5, 1956

430
n«JiiiSlg>»«.l|i|. *i •! Ui .Li Am'JIi.w.afSii 1.1* lift • 11 • •Miiilii.i.

m^rtuBSSl*

In direct arid guaranteed
The following transactions were
securities of the CJeverament for Treasury investments and other accorata
during the month of Movember* 1956$
Fureham*

>5*117*500«00
H;186.150*OO
*mmmmmmmmmm*m)mmmmmmmmmmmm

.„ \m\
<m*immmmm*mm

(Sgd) Charles T. Brannan

Chief, Inv«st>ient3 Bra: ch
Division of Deposits & Irrrestmaats

TREASURY DEPARTMENT

43l

WASHINGTON, D.C.

hi*- )t
IMMEDIATE RELEASE,

H _

> w - v /•#*•?

During BOTobag 1956, 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 rr

oOo

XLL

IMMEDIATE RELEASE,

During November 1956, 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 $83,931*350.

0O0

433
IMMEDIATE RELEASE,
Tuesday3 December 18, 1956.

i /
/ -f —

/ J_ S r C

Secretary Humphrey today presented the Alexander Hamilton
medal for distinguished leadership In the Treasury Department
to Laurens Williams, who resigned last month as Assistant to
the Secretary and Head of the Legal Advisory Staff.
In making the presentation, at ceremonies attended by
Treasury and Internal Revenue officials, Secretary Humphrey
said that Mr. Williams1 thorough knowledge of tax law and
understanding of its administration had enabled him to render
an invaluable service not only to the Treasury but also to the
taxpayer in the preparation and issuance of clearer and more
easily understood regulations under the Revenue Code of 195^.
"The Treasury is deeply indebted to you for your leadership in directing and coordinating this monumental task, ;/
the Secretary said.

"I wish also to express my gratitude for

the fine assistance you have given us in other phases of the
Department's responsibility in the tax field.
"It is indeed a pleasure for me to present to you the
Alexander Hamilton medal in recognition of your exceptional
qualities of leadership."
The medal is of gold and bears a bas-relief portrait of
Hamilton, the first Secretary of the Treasury.
Mr. Williams, who came to the Treasury from private law
practice in Omaha, Nebraska, resigned to practice law in

Washington.y~ o- -f**^^j
"yyp\^ c
cC2^y/:Z/ /yy^A. A2; ^y-y".

**£ ^

A^'

S*^^*d,

TREASURY DEPARTMENT

WASHINGTON, D.C
IMMEDIATE RELEASE,
Tuesday, December 18, 1956.

H-1245

Secretary Humphrey today presented the Alexander
Hamilton medal for distinguished leadership in the
Treasury Department to Laurens Williams, who resigned
last month as Assistant to the Secretary and Head of the
Legal Advisory Staff.
In making the presentation, at ceremonies attended
by Treasury and Internal Revenue officials, Secretary
Humphrey said that Mr. Williams1 thorough knowledge of
tax law and understanding of its administration had
enabled him to render an invaluable service not only to
the Treasury but also to the taxpayer in the preparation
and issuance of clearer and more easily understood
regulations under the Revenue Code of 1954.
"The Treasury is deeply indebted to you for your
leadership in directing and coordinating this monumental
task," the Secretary said. "I wish also to express my
gratitude for the fine assistance you have given us in
other phases of the Department's responsibility in the
tax field.
"It is indeed a pleasure for me to present to you
the Alexander Hamilton medal in recognition of your
exceptional qualities of leadership.
The medal is of gold and bears a bas-relief portrait
of Hamilton, the first Secretary of the Treasury.
Mr. Williams, who came to the Treasury from private
law practice in Omaha, Nebraska, resigned to practice law
in Washington as a member of the firm of Sutherland,
Asbill and Brennan.

oOo

<v
4-2-P

RELEASE A. K. NEWSPAPERS,
Saturday, December 22, 1956.

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 27, 1956, and to mature
March 28, 1957* which were offered on December 18, were opened at the Federal Reserve
Banks on December 21.
The details of this issue are as followst
Total applied for - $2,372,725,000
Total accepted
- 1,601,089,000

Range of accepted competitive bids:

(Includes $269,856,000 entered on a
noncompetitive basis and accepted In
foil at the average price shown below)
(Excepting 3 tenders totaling $500,000}

High
Low

- 99.191 Equivalent rate of discount approx. 3»200Jt per annum
- 99* 10k
«
n «
«
«
3.228$ «
•

Average

- 99.187

3.217* "

•

(91 percent of the amount bid for at the low price was accepted)
Federal Reserve
District

Total
Applied for

Total
Accept«d

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

TOTAL

ijjl

33,958,000
l,758,781*,QOO
29,801,000
Sh,979,000
13,169,000
31,720,000
220,393,000
31,070,000
11,1*19,000
37,808,000
l»l,63U,OO0
107,990,000

$2,372,725,000

22,083,000
i,i53,5il»,ooo
13,573,000
la,923,000
12,656,000
28,091,000
11*3,616,000
28,520,000
11,295,000
30,751,000
29,861j,000
85,203,000

$1,601,089,000

u•J

TREASURY DEPARTMENT

WASHINGTON, D.C.
RELEASE A* M. NEWSPAPERS,
Saturday, December 22, 1956.

H-12U6

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 27, 1956, and to ma

March 28, 1957* which were offered on December 18, were opened at the Federal Res
Banks on December 21.
The details of this issue are as follows:
Total applied for - $2,372,725,000
Total accepted
- 1,601,089,000
N

(includes $269,856,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids* (Excepting 3 tenders totaling $500,

Low

•191 Equivalent rate of discount approx. 3«200# per annum
w
w
- 99.181*
w
n
«
«
3#228£ M

Average

- 99.187

High

3.217# "

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

33,958,000
1,758,78U,000
29,801,000
51*, 979,000
13,169,000
31,720,000
220,393,000
31,070,000
11,1*19,000
37,808,000
1*1,63U,000
107,990,000

$2,372,725,000

22,083,000
1,153,5U*, 000
13,573,000
Ul,923,000
12,656,000
28,091,000
11*3,616,000
28,520,000
11,295,000
30,751,000
29,861*,000
85,203,000

$1,601,089,000

\*y
• W 'mm*

/ /

RELEASE A. M. NEWSPAPERS,
Saturday, December 22, 1956*
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 27, 1956, and to mature
March 28, 1957* which were offered on December 18, were opened at the Federal Reserve
Banks on December 21.
The details of this Issue are as follows t
Total applied for * $2,372,725,000
Total accepted
- 1,601,089,000

(includes $269,856,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bidet (Excepting 3 tenders totaling $500,000)
High
Low

- 99.191 Equivalent rate of discount approx* 3•200$ per annum
- 99.l8t
«
s s «
«
3.228* •
•

Average

- 99.187

3.217*

(91 percent of the amount bid for at the low price was accepted)
Federal Reserve
District

Total
Applied for

Total
Accepted

mmmmmmmmmmmmmmmmmmmmmmtmmmmmmmmwmm

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

37,808,000
l*l,63l*,000
107,990,000

22,083,000
i,i53,5il*,ooo
13,573,000
Ul,923,000
12,656,000
28,091,000
11*3,616,000
28,520,000
11,295,000
30,751,000
29,86l»,0OO
85,203,000

$2,372,725,000

$1,601,089,000

33,958,000
l,758,781*,O00
29,801,000
51*,979,000
13,169,000
31,720,000
220,393,000
31,070,000

n,ia9,ooo

TOTAL

4oy-

?-A

i><

TREASURY DEPARTMENT
pj2aj4asa3

WASHINGTON, D.C.
RELEASE A, M. NEWSPAPERS,
Saturday, December 22, 1956.

H-12U6

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 27, 1956, and to mature
March 28, 1957, which were offered on December 18, were opened at the Federal Reserve
Banks on December 21*
The details of this issue are as follows;
Total applied for - $2,372,725,000
Total accepted
- 1,601,089,000
N

(includes $269,856,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids: (Excepting 3 tenders totaling $500,

Low

.191 Equivalent rate of discount approx. 3*200* per annum
w
w
- 99.181*
«
n
«
«
3 # 228* w

Average

- 99.187

High

3.217*

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
$ 33,958,000
1,758,78/4,000
29,801,000
5U,979,000
13,169,000
31,720,000
220,393,000
31,070,000
11,U19,000
37,808,000
Ul,63U,000
107,990,000
TOTAL $2,372,725,000

Total
Accepted
$

22,083,000
1,153,5H*,000
13,573,000
Ul,923,000
12,656,000
28,091,000
11*3,616,000
28,520,000
11,295,000
30,751,000
29,861*,000
85,203,000
$1,601,089,000

- 1 -

-, J |
» v..

or by any local taxing authority.

For purposes of taxation the amount of discount

at which Treasury bills are originally sold by the United States is considered to
be interest. Under Sections k$k (b) and 1221 (5) of the Internal Revenue Code of
195U the amount of discount at which bills issued hereunder are sold is hot
considered to accrue until such bills are sold, redeemed or otherwise disposed of,
and such bills are excluded from consideration as capital assets* Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between the price paid
for such bills, whether on original issue or on subsequent purchase, and the
amount actually received either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. kl&, Revised, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue. Copies
of the circular may be obtained from any Federal Reserve Bank or Branch.

- 2 -

as
or in a like face amount of Treasury bills maturing January 3, 1957
. Cash
and exchange tenders will receive equal treatment. Cash adjustments will be made
for differences between the par value of maturing bills accepted in exchange and
the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the
sale or other disposition of the bills, does not have any exemption, as such, and
loss from the sale or other disposition of Treasury bills does not have any
special treatment, as such, under the Internal Revenue Code of 195U. The bills
are subject to estate, inheritance, gift or other excise taxes, whether Federal
or State, but are exempt from all taxation now or hereafter imposed on the principal
or interest thereof by any State, or any of the possessions of the United States,

-ZZ!

TREASURY DEPARTMENT
Washington
A. M.
FOR RELEASE,/XUBtSKS NEWSPAPERS,
Monday, December 2^, 1956
.

f^f —
ft

*' •>

^ = J

The Treasury Department, by this public notice, invites tenders for
$ 1.600,000,000 , or thereabouts, of

—

-day Treasury bills, for cash and

in exchange for Treasury bills maturing January 3, 1957
in the amount
$1,601,2VT,000 , to be issued on a discount basis under competitive and non-

ts?
competitive bidding as hereinafter provided. The bills of this series will be
January 3, 1957
, and will mature
April k, 1957
, when the face
d a t ed

-m

amount will be payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, W e d l o c k p.m., Eastern Standard time, Friday, December 28, 1 9 * ..
Tenders will not be received at the Treasury Department, Washington. Each tender
m ust

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

44u

TREASURY DEPARTMENT
WASHINGTON, D.C
RELEASE A0 Me NEWSPAPERS,
Monday, December 24, 1956,

H-1247

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 January 3* 1957,
in the amount of $1,601,247,000, 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 3,1957,
and will mature April 4, 1957,
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,
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,
Friday, December 28,1956.
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 bil3s 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
ranee 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 3, 1957,
In cash or other immediately available funds
or In a like face amount of Treasury bills maturing January 3, 1957.
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price of the new
bills*
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, does not have
any exemption* as such, and loss from the sale or other disposition
of Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 195^. The bills are subject
to estate, inheritance, gift or other excise taxes, whether Federal
or State, but are exempt from all taxation now or hereafter imposed
on the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority*
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States is considered to
be Interest. Under Sections 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*
0O0

IMMEDIATE RELEASE
Thursday, December 27, 1956

44l
H-

/ ^.

Secretary Humphrey announced today that he has accepted with
regret the resignation of George B« Kneass as Assistant to the Secretary,
effective on December 31* to permit his return to private banking*
Mr* Kneass has assisted Under Secretary W# Randolph Burgess during
the past year in Treasury financing and debt management*
In a letter to Mr* Kneass, Secretary Humphrey said:
H

It has been a busy year with a number of problems that you

have helped mightily to overcome, and we are all very grateful to
you for all that you have done* You have made a real contribution
which I am sure must be rewarding to you in retrospect, and you have
gained the admiration and real friendship of your associates here
in the Treasury*M
Mr. Kneass will continue to be available to the Treasury from time
to time as a consultant.

TREASURY DEPARTMENT

442

WASHINGTON, D.C.

IMMEDIATE RELEASE,
Thursday, December 27, 1956.

H-1248

Secretary Humphrey announced today that he has
accepted with regret the resignation of George B.
Kneass as Assistant to the Secretary, effective on
December 31, to permit his return to private banking.
Mr. Kneass has assisted Under Secretary W. Randolph
Burgess during the past year In Treasury financing and
debt management.
In a letter to Mr. Kneass, Secretary Humphrey said:
"It has been a busy year with a number of problems
that you have helped mightily to overcome, and we are
all very grateful to you for all that you have done.
You have made a real contribution which I am sure must
be rewarding to you in retrospect, and you have gained
the admiration and real friendship of your associates
here in the Treasury."
Mr. Kneass will continue to be available to the
Treasury from time to time as a consultant.

oOo

*4?
* *y

RELEASE A. M. HEWSPAFERS,
Saturday, December 29, 1956.

/ / -—*/
f

mmmmmmmmmmmmmmmmmm^tmmmmmmmmmmmmmmmmmmmmmmmmmmmlmmmmmmmmm^

(

JjAw
/

The Treasury Department announced last evening that the tenders for $1,600,000,«
or thereabouts, of 91-day Treasury bills to be dated January 3 and to mature April 4,
1957, which were offered on December 24, 1956, were opened at the Federal Rtssrvs Bt^
on December 28.
The details of this issue are as follows:
Total applied for - $2,378,534,000
Total accepted
- 1,600,348,000

(includes $282,880,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids:
High - 99.187 Equivalent rate of discount approx. 3.2l6g per annua
Low
- 99.170
»
» »
•
»
Average - 99.175

3.28101 «

» « » » 3.26# » «

(22 percent of the amount bid for at the low price was accepted)
Federal Reserve
District

Tfctal
Applied for

Total
Accepted

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

* 30,3Q5,ooo
1,656,853,000
31,799,000
56,017,000
12,169,000
27,U90,000
316,990,000

Total

13,028,000
51,939,000
32,681t,000
107,70lu000

20,305,000
977,228,000
16,21(3,000
52,117,000
12,169,000
25,390,000
259,680,000
140,751,000
12,528,000
51,939,000
32,684,000
99,3Ht.000

•2,378,5314,000

$1,600,3148,000

U,55i,ooo

444
TREASURY DEPARTMENT
W A S H I N G T O N , D.C.
RELEASE A* M* NEWSPAPERS,
Saturday, December 29, 1956*

H-12U9

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 3 and to mature April 1*,
1957, which were offered on December 2k, 1956, were opened at the Federal Reserve Banks
on December 28*
The details of this issue are as follows:
Total applied for - #2,378,53U,000
Total accepted
- 1,600,31*8,000

(includes $282,880,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids:
High - 99*187 Equivalent rate of discount approx. 3.2l6# per annua
M
Low
- 99.170
M H
II
n
Average - 99.175

nun » 3.262£

3.281$

(22 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

$
30,305,000
1,656,858,000
31,799,000
56,017,000
12,169,000
27,1*90,000
316,990,000
1*1,551,000
13,028,000
51,939,000
32,681*, 000
107,70i*,000

$2,378,53li,000

$1,600,31*8,000

Total

20,305,000
977,228,000
16,21*3,000
52,117,000
12,169,000
25,390,000
259,680,000
1*0,751,000
12,528,000
51,939,000
32,681*,000
99,311*,000

Treas.
HJ
10
•A13P4
v.108
Treas.
HJ
10
.A13P4

U.S. Treasury Dept
Press Releases

U.S. Treasury Dept.

AUTHOR

Press Releases
TITLE

v.108
DATE
LOANED

PHONE
NUMBER

BORROWERS NAME

—

U.S. TREASURY LIBRARY

1 0031480

Full text of Press Releases of the United States Department of the Treasury : Volume 108

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