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LIBRARY
pnoM 5030
JUN 1 4 1972
TREASURY DEPARTMENT

- 31

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$k (b) and 1221 (5) of the Internal Revenue Code of
\9$h the amount of discount at which bills issued hereunder are sold is not
considered to accrue until such bills are sold, redeemed or otherwise disposed of,
and such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between the price paid
for such bills, whether on original issue or on subsequent purchase, and the
amount actually received either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 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

2 percent of the face amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank or trust
company.
Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the
Treasury Department of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect shall be
final. Subject to these reservations, noncompetitive tenders for $200,000 or less
without stated price from any one bidder will be accepted in full at the average
price (in three decimals) of accepted competitive bids. Settlement for accepted
tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on January 10, 1957 , in cash or other immediately available funds
or in a like face amount of Treasury bills maturing January 10, 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 principa
or interest thereof by any State, or any of the possessions of the United States,

4>:v<'*4»:*V««:

TREASURY
JURY DEPARTMENT
Washington

/ /
, m) c-y
f
ff **
^O

FOR RELEASE, MORNING NEWSPAPERS,
Thursday, January 3, 1957
_ & - *

The Treasury Department, by this public notice, invites tenders for
$ 1,600,000,000 , or thereabouts, of
V "" /

-day Treasury bills, for cash and

1 ** 9

in exchange for Treasury bills maturing

January 10, 1957

, in the amount of

$ 1,600,272,000 , to be issued on a discount basis under competitive and non-

m
competitive bidding as hereinafter provided.
dated
January 10, 1957
, and will mature
amount will be payable without interest.

The bills of this series will be
April 11, 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,/tax o'clock p.m., Eastern Standard time,
Monday, January 79 1957 •

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, January 3, 1957.

H-1250

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 10, 1957,
in the amount of $1,600,272,000, 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 10, 1957,
and will mature April 11, 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 o'clock p.m., Eastern Standard time,
Monday, January 7, 1957.
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 1icorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must b? accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust* company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price
range of accepted bids. Those submitting tenders will be advised of
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders
in whole or in part, and his action in any such respect shall be
final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted

- 2 competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on January 10, 1957, in cash or other immediately available funds
or* in a like face amount of Treasury bills maturing January 10, 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 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
s.r'z 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

5
QMBDIATE RELEASE,
Friday, January 4, 1957.
Bae Treasury Department announced today that it will Invite sn
tenders for $1,600,000,000, or thereabouts, of 159-day treasury
bills for cash and in exchange for Treasury bills maturing
January 16. The full terns of the offering will be contained in
a statement to be released Monday morning, January 7. Tenders
vill be opened at 1:30 p.m., Eastern Standard time, on Friday/
January 11.
The new bills will be dated January 16 and will mature Juae-24,
1957. These will be Tax Anticipation bills acceptable at "ltoeer**liMI
in payment of income and profits taxes due June 15, 1957. s Settle- sent for accepted tenders must be aade in cash or other imnediately
available funds, or in a like face amount of Treasury bills aatiirin*
January 16*

TREASURY DEPARTMENT

WASHINGTON, D.C.

IMMEDIATE RELEASE,
Friday, January 4, 1957.

H-1251

The Treasury Department announced today that it
will invite tenders for $1,600,000,000, or thereabouts,
of 159-day Treasury bills for cash and in exchange for
Treasury bills maturing January 16. The full terms
of the offering will be contained in a statement to
be released Monday morning, January 7. Tenders will
be opened at 1:30 p.m., Eastern Standard time, on
Friday, January 11.
The new bills will be dated January 16 and will
mature June 24, 1957•

These will be Tax Anticipation

bills acceptable at face value in payment of income
and profits taxes due June 15, 1957•

Settlement for

accepted tenders must be made in cash or other
immediately available funds, or in a like face amount
of Treasury bills maturing January 16.

oOo

• 3•

7
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*

She hills

are subject to estate, inheritance, gift or otter excise taxes, whether Federal
or State, but are exempt Aram all taxation now or hereafter imposed en the principal or interest thereof by any state, or any of the possessions of the Halted
States, or by any local taxing authority, fbr purposes of taxation the amount of
discount at which Treasury bills are originally sold by the United States Is
considered to be interest. Uhder 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 CUB capital assets.
Accordingly, the owner of Treasury hills (other than life insurance companies)
issued hereunder need include in his income tax return only the difference
between the price paid fbr such bills, whether on original issue or on subse^est
purchase, and the amount actually received either upon sale or redemption at
maturity during the taxable year fbr 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. Copiei
of the circular may he obtained from any Federal Reserve Bank or Branch.

• 2 •

8
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 whicl
will be supplied by Federal Reserve Banks or Branches on application therefbr*
Others than banking Institutions will not be permitted to submit tenders
except fbr 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 bills applied fbr, unless the tenders
are accompanied by an express guaranty of payment by an incorporated bank or trus
company.
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks end Branches, following which public announcement will he 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 he
final. Subject to these reservations, noncompetitive tenders fbr $200,000 or lee
without stated price from any one bidder will be accepted in full at the average
price (in three decimals) of accepted competitive bids. Settlement fbr accepted
tenders In accordance with the bids oust he made or completed at the Federal Reserve Bank cm January 16, 1957, In cash or other immediately available funds or
in a like face amount of Treasury bills maturing January 16, 1957. Cash and ex*
change tenders will receive e<jual treatment. Cash adjustments will be made fbr
differences between the par value of maturing bills accepted in exchange and the
issue price of the new hills.

RELEASE A. M. NEWSPAPERS,
Monday, January 7, 1957.

I L^

I "*)

The Treasury Department, by this public notice, invites tenders fbr
$1,600,000,000, or thereabouts, of 159-day Treasury bills, fbr cash and in exchange for Treasury hills maturing January 16, 1957, In the amount of
11,602,748,000, to he issued on a discount basis under competitive end noncompetitive bidding as hereinafter provided. The hills of this series will be designated Tax Anticipation Series, they will be dated January 16, 1957, and they
will mature JUne 24, 1957. They will be accepted at face value in payment of
income and profits taxes due on June 15, 1957, and to the extent they are not
presented fbr this purpose the face amount of these hills will he payable without interest at maturity* Taxpayers desiring to apply these hills in payment
of June 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 hefbre June 15, 1957,
and receiving receipts therefor showing the face amount of the hills so surrendered. These receipts may be submitted In lieu of the hills on or hefbre June 15,
1957, to the District Director of Internal Revenue fbr the district In which such
*&*

taxes are payable. The bills will he Issued in hearer form only, and In denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (maturity
value).
Tenders will he received at Federal Reserve Banks and Branches \xp to the
closing hour, one-thirty o'clock p.m., Eastern standard time, Friday, January H,
1957. Tenders will not he received at the Treasury Department, Washington. lad
tender must he for an even multiple of $1,000, and In toe case of competitive
tenders the price offered must he expressed on the basis of 100, with not more

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE A.M. NEWSPAPERS,
Monday., January 7, 1957.
•

1 1 . 1

•

• I

•

H-1252

The Treasury Department, by this public notice, invites tender's
for $1,600,000,000, or thereabouts, of 159-day Treasury bills, for
cash and in exchange for Treasury bills maturing January 16, 1957,
in the amount of $1,602,7^0,000, 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 January lo, 1957* and they
will mature June 24, 1957. They will be accepted at face value in
payment of income and profits taxes due on June 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 June 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
June 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 June 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, $i00,000,$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 oTclock p.m., Eastern Standard
time, Friday, January 11, 1957. 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. Settlement for
accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on January lb, 1957* in cash ...
or other immediately available funds or in a like face amount of
Treasury bills maturing January lo, 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.
Thd 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 no; 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
oOo
of their issue. Copies of the circular
may be obtained from any
Federal Reserve Bank or Branch.
" *

mi-'

•

U./l

%?- fou^

&rmmagJK*-!!S~-?ft***~r>

He will succeed

George B. Kneass,who has resigned to return to private business.
A native of Boston, Mr. Wren was graduated from Tufts College
in 1926 with a degree of A.B. He received an A.M. degree from
Tufts in 1928 and was Phi Beta Kappa.

He joined the First

National Bank of Boston and later was transferred to the Old
Colony Trust Company, rising to Vice President in charge of that
institutions Investment Analysis Section./j He is trustee of
Tufts College and afess Mount Holyoke College.

m*U- W9

£L corporator of the Somerset Savings Bank, Somerville, Massachusetts,
and the Instituticm for Savings at Roxbury. A* *~*0 ^ ^ ^ * * - ^ ^ ^ ^

He has served /or several/years as'a member of the Government
Borrowing Committee of the American Bankers' Association.which
consults with the Treasury on financing problems.

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE A.M. NEWSPAPERS,
Monday, January 1, 1957.
"

' '

•

'"' '

• i ••

I I I

H-1253

~ *

Treasury Secretary Humphrey today appointed Paul I.
Wren of Boston, Massachusetts, an Assistant to the
Secretary, effective January 15.
Mr. Wren will assist Under Secretary W. Randolph
Burgess in Treasury financing and debt management. He
will succeed George B. Kneass, who has resigned to
return to private business.
A native of Boston, Mr. Wren was graduated from
Tufts College in 1926 with a degree of A.B. He
received an A.M. degree from Tufts in 1928 and was
Phi Beta Kappa. He joined the First National Bank of
Boston and later was transferred to the Old Colony
Trust Company, rising to Vice President in charge of
that institution's Investment Analysis Section.
He is trustee of Tufts College and Mount Holyoke
College, and is a corporator of the Somerset Savings
Bank, Scmerville, Massachusetts, and. the Institution
for Savings at Roxbury. He was graduated, from the
graduate school of Banking at Rutgers University.
He has served for several years as a member of
the Government Borrowing Committee of the American
Bankers1 Association, which consults with the Treasury
on financing problems.

oOo

-) W V ^ >

RELEASE k. M. NEWSPAPERS,
Tuesday, January 8, 1957*

The Treasury Department announced last evening that the tenders for $1,600,000,1
or thereabouts, of 91-day Treasury hills to be dated January 10 and to mature AprilJ
1957, which were offered on January 3, were opened at the Federal Reserve Banks on
January 7*
The details of this issue are as follows:
Total applied for - $2,51*3,380,000
Total accepted
- 1,600,105,000

(includes $374,232,000 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 - 99*203 Equivalent rate of discount approx. 3.153% per amm
Lw

- 99.187

•

3.216JI

Average - 99.192 " " " " " 3.197$ " •
(95 percent of the anount hid for at the low price was accepted)
Federal ^Lmmmrrm
District

Total
Applied for

Total
Acc.pted

Boston
Maw York
Philadelphia
Clereland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

1
39,31(3,000
1,71a, 787,000
; 35,905,000
78,729,000
35,873,000
59,652,000
263,510,000
53,012,000
17,265,000

TOTAL

55,ltOlt,ooo

29,31(3,000
897,387,000
20,905,000
73,1(29,000
35,873,000
58,852,000
20^,685,000
53,012,000
17,265,000
55,iol(,ooo

1*0,1*68,000
122.1(32.000

3b,lt68,000
119,762,000

12,51*3,380,000

$1,600,105,000

•

14
TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE A. M. NEWSPAPERS
H-125U

Department announced last evening that the tenders for $1,600,000,C
thereabouts, ofTreasury bills to be dated January 10 and to mature April ]
1957* which were offered on January 3, were opened at the Federal Reserve Banks on
January 7.
The details of
Total applied *^ w«.,;w,vuv,

Total accepted

- 1,600,105,000

(includes $37^,232,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bidss (Excepting one tender of $150,000)
99*203 Equivalent rate of discount approx. 3»l53# per annum
Low
w
w
tt
w
Average

3.2162

3.197* "

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

Total
Applied for

Total
Accepted

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

$
39,31(3,000
l,7Ul,787,000
35,905,000
78,729,000
35,873,000
59,652,000
263,510,000
53,012,000
17,265,000

TOTAL

29,31(3,000
897,387,000
20,905,000
73,1(29,000
35,873,000
58,852,000
20U,685,000
53,012,000
17,265,000

55,ltoU,ooo

55,iol(,ooo

1(0,1(68,000
122,1(32,000

3U, 1(68,000
119,782,000

$2,51(3,380,000

$1,600,105,000

- 3 -

<*at* 15
or by any local taxing authority. For purposes of taxation the amount of discount
at which Treasury bills are originally sold by the United States is considered to
be interest. Under Sections 1*5^ (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. bl8, Revised, and this notice, prescribe
the tenns 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

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

accompanied by an express guaranty of payment by an incorporated bank or trus
company.

Immediately after the closing hour, tenders will be opened at the Federal Re-

serve Banks and Branches, following which public announcement will be made by

Treasury Department of the amount and price range of accepted bids. Those sub
mitting tenders will be advised of the acceptance or rejection thereof. The

Secretary of the Treasury expressly reserves the right to accept or reject an

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

without stated price from any one bidder will be accepted in full at the aver

price (in three decimals) of accepted competitive bids. Settlement for accept
tenders in accordance with the bids must be made or completed at the Federal

serve Bank on January 17, 1957 , in cash or other immediately available funds
or in a like face amount of Treasury bills maturing January 17, 1957 Cash

and exchange tenders will receive equal treatment. Cash adjustments will be m
for differences between the par value of maturing bills accepted in exchange
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,
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 bill

are subject to estate, inheritance, gift or other excise taxes, whether Feder

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

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

17
Irkifrrtnr*
TREASURY DEPARTMENT
Washington

^ j 'J.

A. M.
H2K RELEASE/ ) 6 m m NEWSPAPERS,
Thursday, January 10, 1957

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 January 11, ly?( ^ ^n ^he amount of
$1,500,7W,000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated January 17, 1957 , and will mature April 18, 1957 when the face

m m
amount will be payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
one-thirty
closing hour, ^^m/o,clock p.m., Eastern Standard time, Monday, January Ik, 1957 ,
m

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

RELEASE A.M. NEWSPAPERS,
Thursday, January 10, 1957.

H-1255

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 17, 1957
in the amount of $1,600,740,000, 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 17, 1957,
when the f
and will mature April 18, 1957,
ace amount will be
payable without Interest. They will be issued In bearer form only,
and In denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, one-thirty ofclock p.m., Eastern Standard time
Monday, January 14, 1957.
Tenders will not be received at the
Treasury Department, Washington. Each tender must be for an even
multiple of $1,000, and In the case of competitive tenders the price
offered must be expressed on the basis of 100, with not more than
three decimals, e. g., 99.925. Fractions may not be used. It Is
urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price
range of accepted bids. Those submitting tenders will be advised of
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders
in whole or in part, and his action in any such respect shall be
final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted

- 2 competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on January 17, 1957, l n c a s h or other immediately available funds
or in a like face amount of Treasury bills maturing January 17, 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
DlliS©

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 Issuea Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.
0O0

4^T)

•

DAN THROOP SMITH

Dan Throop Smith was born November 20, 1907, in Chicago,
Illinois; son of Elbert Ellis and Olive Cole Smith. Ke graduated
from Stanford University in 1928 and continued with graduate work
at the University of London and Harvard University, receiving a
Ph.D. degree from the latter institution in 1934.
In 193£j he married Martha Vaughan of Komewood, Illinois.
They have three children: Deborah Throop, Louise Lord, and Dan
Throop, Jr.
He has been a member of the faculty of Harvard University since
1930 and has occupied the position of Professor of Finance at the
Graduate School of Business Administration since 19-^5. He is also
a member of the faculty of the Graduate School of Public Administration, Harvard University. Since 1946 he has given courses in
taxation and in monetary and fiscal policy and conducted seminars
on various aspects of taxation and fiscal policy. From 1948 to
1953 he was director of the research program at the Harvard*
Business School on the effects of taxation on business, conducted
under a grant from the Merrill Foundation. The results of this
research program have been published in seven books on different
aspects of business and in journal articles.
He is the author of Deficits and Depressions (1936); joint
author of Taxable and Business Income, a publication of the
National Bureau of Economic Research; and of Effects of Taxation
on Corporate Finance Policy (1952). He is also the author of
numerous articles in various professional and financial journals.
During World War II, he was director of the Army Air Force
Statistical School and special consultant to Headquarters, Army
Air Force, serving in liaison assignments in this country and overseas.
His affiliations include the following: American Economic
Association, American Finance Association, Phi Beta Kappa, Harvard
Club of New York City, and the Cosmos Club and Capitol Hill Club
of Washington, D. C.
He has been a member of the Economic Policy Committee of the
U. S. Chamber of Commerce, a consultant to the Business Advisory
Council of the Department of Commerce, a member of the Finance
Committee of the Town of Concord (Mass.), a director of the Tax
Institute, Inc., and a consultant to the United Nations.
His home address is Nashawtuc Hill, Concord, Massachusetts.

20
IMMEDIATE RELEASE

He graduated

from Stanford University in 1928 and became a member of the
Harvard faculty in 1930. He received a Ph. D. degree from
Harvard in 1934. He has been Professor of Finance at the
Harvard Graduate School of Business Administration since 1945,
and is also a member of the faculty of the Graduate School of
Public Administration.
Much of his work as an educator has had to do with
taxation.

He is the author of several books and many articles

dealing with taxation and business.
(Biographical sketch of Mr. Smith attached.)

TREASURY DEPARTMENT
WASHINGTON. D.C

IMMEDIATE RELEASE,
Thursday, January 10, 1957

H-1256

Dan Throop Smith, heretofore Special Assistant to
Treasury Secretary Humphrey in charge of tax policy,
today became Deputy to the Secretary.
An order signed by Secretary Humphrey created the
post of Deputy to the Secretary and transferred to it
the functions and responsibilities of the position of
Special Assistant to the Secretary in Charge of Tax
Policy.
Mr, Smith is 49 and a native of Chicago. He
graduated from Stanford University in 19^8 and became
a member of the Harvard faculty in 1930. He received
a Ph. D. degree from Harvard in 1934. He has been
Professor of Finance at the Harvard Graduate School of
Business Administration since 1945, and is also a
member of the faculty of the Graduate School of Public
Administration.
Much O i his work as an educator has had to do with
taxation. He is the author of several books and many
articles dealing with taxation and business.
(Biographical sketch of Mr. Smith attached.)

22
DAN THROOP SMITH
Deputy to the Secretary
Dan Throop Smith was born November 20, 1907, in Chicago,
Illinois; son of Elbert Ellis and Olive Cole Smith*. He graduated
from Stanford University in 1928 and continued with graduate work
at the University of London and Harvard University, receiving a
Ph. D. degree from the latter institution in 1934.
In 1938, he married Martha Vaughan of Homewood, Illinois.
They have three children: Deborah Throop, Louise Lord, and
Dan Throop, Jr.
He has been a member of the faculty of Harvard University.
since 1930 and has occupied the position of Professor of Finance
at the Graduate School of Business Administration since 1945. He
is also a member of the faculty of the Graduate School of Public
Administration, Harvard University. Since 1946 he has given
courses in taxation and in monetary and fiscal policy and conducted
seminars on various aspects of taxation and fiscal policy. From
1948 to 1953 he was director of the research program at the
Harvard Business School on the effects of taxation on business,
conducted under a grant from the Merrill Foundation. The results
of this research program have been published in seven books on
different aspects of business and in journal articles.
He is the author of Deficits and Depressions (1936); joint
author of Taxable and Business Income, a publication of the
National Bureau of Economic Research; and of Effects of Taxation
on Corporate Finance Policy (1952). He is also the author of
numerous articles in various professional and financial journals.
During World War II, he was director of the Army Air Force
Statistical School and special consultant to Headquarters, Army
Air Force, serving in liaison assignments in this country and
overseas.
His affiliations Include the following: American Economic
Association, American Finance Association, Phi Beta Kappa,
Harvard Club of New York City, and the Cosmos Club and Capitol Hill
Club of Washington, D. C.
He has been a member of the Economic Policy Committee of the
U. S. Chamber of Commerce, a consultant to the Business Advisory
Council of the Department of Commerce, a member of the Finance
Committee of the Town of Concord (Mass«), a director of the Tax
Institute, Inc., and a consultant to the United Nations.
His home address is Nashawtuc Hill, Concord, Massachusetts.

January,1957

STATUTORY DE^T LJMTATJQN
**. **** Decembe]
AS OF ......

„ ..

., _ ^ntrn

Jan. lO. 1957

Washington, ...«•••• •.••*•»•»».*........„,•,.
Section 21 of Second Liberty B o n d Act, a s a m e n d e d , provides that the face amount of obligations issued under authority
>f that Act, a n d the face amount of obligations guaranteed a s to principal a n d interest by the United States (except such guar*
tnteed obligations a s m a y 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 a n y one time. F o r purposes oft his section the current relemption value of a n y obligation issued o n a discount basis w h i c h is redeemable prior to maturity at the option of the holder
shall be considered a s its face a m o u n t . " T h e A c t of July 9, 1 9 5 6 / P L , 6 7 8 84th C o n g r e s s ) provides that during the period
beginning o n July 1, 1956, and ending o n June 30, 1957, the above limitation ($275,000,000,000) aha 11 be temporarily increased
by $3,000,000,000.
T h e following table s h o w s the face amount of obligations outstanding and the face amount w h i c h c a n still be issued under
his limitation:
rotal face amount that may be outstanding at any one time
$ 2 / 0 , 0 0 0 , (.00,000
OutstandingObligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills $25,178,870,000
Certificates of indebtedness.
19,023,013,000
Treasury notes
3S.2?*r.489.000
$ 79,^6,372,000
BondsTreasury
* Savings (current redemp. value)

80 , 828 , 361,950
, 5 6 929297551377

Depositary...
Investment series

2651891» 000
11.647.670.000

Special FundsCertificates of indebtedness
Treasury notes
Total interest-bearing
Matured, interest-ceased

..... 3 5 * 3 3 8 , 6 4 4 , 0 0 0
10.299,867,400
..

Bearing no interest:
United States Savings Stamps
Excess profits tax refund bonds
Special notes of the United States:
Internat'l Monetary F u n d series
Total

149,034,678,327

4-5 . 6 3 8 . 5 1 1 . 4 0 0
274*, 1 6 9 , 5 6 1 , 7*Z(
8 7 0 ,106 , 8 7 3

48,819§835
9 6 2 , 5«?-*1.083,000.000

1.132.782,366
276,172,450,966

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A
102,470,050
Matured, interest-ceased
*
7 5 9 *675
Grand total outstanding
..
Balance face amount of obligations issuable under above authority

1 0 ^ * 22g t 7%J
....
Me

276.275.680,6911
i|?24 | '?19i202

276,627,527,996
10^.229.742

Reconcilement with Statement of the Public I>bt..?^.S3SL.2ii..^25§.»
(Date)
(Daily Statement of the United States Treasury, 2Sfr.^^?. M 3i»..A§56J
(Date)
Total gross public debt
Guaranteed obligations not o w n e d by the Treasury..............
Total gross public debt and guaranteed obligations.......
..
..
D e d u c t - other outstanding public debt obligations not subject to debt limitation

2 7 6 , 7 3 0 , 7 5 7 * (21
4^1077.030

276,275,680,691
H-1257

STATUTORY DEBT LIMITATION

w..hin«ton Jan. in, 1957
WBDIIIll({tvil|

.».m*..t...*t99*wf*9..*»:»»..»:..»*

( *\*Sec5lon 2 1 ,o' Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under authority
ce amou nt
m™*J ^tim^m.m.l
. .°f obligations guaranteed as to principal and interest by the United States (except such guaxin

T h e following table shows the face amount of obligations outstanding and the face amount which can still be issued under
his limitation:
rotal 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 $25,178,870,000
Certificates of indebtedness
19,023,013,000
Treasury notes
35.2?4.469.000
Bond 8Treasury
80,828 ,36l, 950
* Savings (current redemp. value)
56,292,755,377
Depositary.
265 ,891, 000
Investment series
11,647.670,000
Special Funds*
Certificates of indebtedness M
35,338,644.000
Treasury notes;
10 .299.86?.400
Total interest-bearing
„
Matured, interest-ceased
„.„...
Bearing no interest:
United States Savings Stamps
48,819,835
Excess profits tax refund bonds .........
962,531
Special notes of the United States:
Internat'l Monetary Fund series,...
1.083.000.000
Total
i
Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A.
102,^70,050
Matured, interest-ceased
75ft .675
r
Grand total outstanding
0B
Balance face amount of obligations issuable under above authority

$ 79,^6,372,000

149,034,678,32?

45,638.511.400
2?4,169 , 56l, 72?
8?0,106,8?3

1.132.782,366
276,172,450,966

103,229.725
„ ,„...,
«

Reconcilement with Statement of the Public DeU..^.S.S^L.2it..i2§S.
(Date)
(Daily Statement of the United States Treasury,
fiSfr.®^^?.M2i»...i§5§ii.w.^
..
(Date)
utstandingTotal gross public debt
Guaranteed obligations not owned by the Treasury.
.......
„,
M
Total gross public debt and guaranteed obligations.
„
„,
educt - other outstanding public debt obligations not subject to debt limitation

276 .275 . 680 .691
1.724, 319 .309

2?6 , 62? , 52? , 996
10-3 » 2 2 9 .725
276,730,757,721
455.077,030

276,275.680,691
H-1257

- 2 -

In February 1949* following his selection by the Managing Director and
Executive Directors, Mr. Overby became Deputy Managing Director of the International Monetary Fund and served in that international capacity until
January 1952.
Mr. Overby became Assistant Secretary of the Treasury in January 1952,
by appointment of the President, with the advice and consent of the Senate.
After becoming Assistant Secretary of the Treasury, Mr. Overby was appointed by the President as a Member of the Planning Board of the National
Security Council, to serve as Special Assistant to the Secretary of the
Treasury for National Security Affairs. He was reappointed to that position
by the President in March 1956.
During the course of his service with the Treasury Mr. Overby!s responsibilities have at various times included international financial and monetaryactivities, national security affairs, national banking supervision, the U.S.
Savings Bonds Program, and assistance on Treasury debt management problems
and relations with the Federal Reserve System* He has served as Alternate
to the Secretary of the Treasury on the National Advisory Council on International Monetary and Financial Problems and has represented the Treasury on
other interdepartmental Councils and Committees, such as the Operations Coordinating Board and the Council on Foreign Economic Policy.
The President, with the advice and consent of the Senate, also appointed
Mr. Overby in February 1952 to be United States Executive Director of the
International Bank for Reconstruction and Development.
In July 1954, and again in June 3.956, the President, with the advice
and consent of the Senate, reappointed Mr. Overby for further two-year terms
9-s United States Executive Director of the International Bank for Reconstruction and Development.
Mr. Overby was a member of the Charles Sawyer Mission to Western Europe
in October-December 1952 and of the Milton Eisenhower Mission to Latin America
in June-Jul}/ 1953• He was also a Delegate of the United States to the Tenth
Inter-American Conference at Caracas, Venezuela, in March 1954, and to the
Extraordinary Meeting of Ministers of Finance or Economy of the Inter-American
States in Brazil in November-December 1954• Mr e Overby has attended numerous
international conferences, including Ministerial Meetings of the North Atlantic'-'
Treaty Organization and of the Organization for European Economic Cooperation,
and all of the Annual Meetings since 1946 of the Boards of Governors of the
International Bank and of the International Monetary Fund.
Mr. Overby is a member of Psi Uasilon, of Beta Gamma Sigma Scho3.astic
Society, and was the recipient of the 1947 National Honor Award voted by the
Beta Gamma Sigma chapters.
Mr# and Mrs. Overby reside at 2444 Massachusetts Avenue, Northwest,
Washington, D. C.

July, 1956

ANDREW N. OVERBY
^
Assistant Secretary of the Treasury
(and U. S. Executive Director of the
International Bank for Reconstruction and Development)

Mr. Overby was born in Cheyenne Agency, South Dakota, on March 27, 1909,
received his early education in the public schools of Minneapolis, Minnesota,
and attended the diversity of Minnesota from 1926 to 1928. He graduated
from Columbia University, New York City, in 1930 with the degree of B.S. and
in 1940 received the degree of M.S. from Columbia University School of Business .
From 1930 through 1941 Mr. Overby was employed by the Irving Trust Company
in New York City, serving for several years in foreign banking work and from
1936 through 1941 as Assistant to the Vice President in charge of U. S. Govern^
merit and other portfolio investments of the Company.
In January, 1942, Mr. Overby joined the Federal Reserve Bank of New York
and served as special assistant to the Vice Presidents in charge of the international banking and investment functions of that institution until October
1942, at which time he entered the U. S. Army as a First Lieutenant.
During his service with the Army, Mr. Overby was in charge of the procurement of supplies, services and facilities from our Allies under reverse
lend-lease, and later became Executive Officer to the Director of Materiel,
who had responsibility for staff supervision of procurement activities of the
Army Service Forces. Mr. Overby attained the rank of Lieutenant Colonel,
General Staff Corps, and was awarded the Legion of Merit and the Army Commendation Ribbon for distinguished military service. He was released from
the Army in April 1946.
From May to August 1946 Mr. Overby was again employed by the Federal
Reserve Bank of New York, serving as Assistant Vice President concerned particularly with the Bank!s relations with the International Monetary Fund, the
International Bank for Reconstruction and Development, and the Export-Import
Bank.
From August 1946 to July 1947 Mr. Overby, on leave of absence from the
Federal Reserve Bank of New York, served as Special Assistant to the Secretary
of the Treasury in charge of international monetary and financial affairs.
He also served as the Secretary's Alternate on the National Advisory Council
on International Monetary and Financial Problems.
In July 1947, the President, with the advice and consent of the Senate,
appointed Mr. Overby United States Executive Director of the International
Monetary Fund. From July 1947 to February 1949 he continued to serve as
Special Assistant to the Secretary of the Treasury in an advisory capacity.

•

JAN 7
Soar Aody:
X waat to tell yoa io this letter, aa Ska** orally,
bow wary dooply yoo are goiag to bo aiaaod by all of aa
boro la tbo Troaaury.
la boiplag proaoto Troaaary polioioa la goaoral, aad
ia tbo iotoroatioaal ftaaaoo timid la partioalar, yoa
bawo oarood a ro pa tat loo for ability *ad porforaaoco wbiob
will bo bard to oqoai. la addition yoar poraoaal loyalty
la aoaotbiag 1 aball a1waya roaoafeor witb wara fool lag.
1 ooald at groat laagt* do tail tbo aaay f iao tbiag*
yoa bawo doao mad tbo aoay, aoay ways la obiob you bawo
ooatribatod ao aoob to too work of tit Troaaary aad ao
to yoar ooaatry. Kit l will oaly aay yoa bawo doao aa
©utotaadiag job la boiplag tbo Goworaaaat coadact lto
affairs is a way boat doaigaod to fartbor ita baolo
policies in tbo boat latorost of all tbo pooplo. Too
bawo doao a job for wklcb yoa aay bo laatiagly proad.
I am roooaaaadlag tbat tbo frrooidoat aooopt yoar
roa£gaatioa offootlwo fobraary tgtb iaaaaaob aa I baow
fall wo 11 yoar too H a g tbat yoa a m t rotara to prlvoto^
llfo ao ao to caro for yoar poraoaal roapoaalbilitioa. c
fbilo ao all boto to ooo yoa go, wo oatoad to yoa aad
Mrs. ovorby our boartfolt boat wiaboa for baooiaoaa aad
euccoss ia tbo yoaro aboad.

M
Honorable Aadrow K. Otorby
Aaaiataat Soorotary
Troaaary Dopartaant
aaa&iagtoa, 0. e.

HALennartsou:saw
1/7/57

;

•

28
DKAFT

(pick up letter)

(Biographical sketch of Mr. Overby attached.)

TREASURY DEPARTMENT

WASHINGTON, D.C.
IMMEDIATE RELEASE,
Thursday, January 10, 1957,

H-1258

The Treasury Department made public the following letter from
Secretary Humphrey to Andrew N. Overby, whose resignation
effective February 28 as Assistant Secretary of the Treasury and
U.S. Executive Director of the International Bank for Reconstruction
and Development, to re-enter private business,was announced today by
January 7, 1957
the White House:
T
Dear Andy:
I want to tell you in this letter, as. I have orally,
how very deeply you are going to be missed by all of us
here in the Treasury,
In helping promote Treasury policies in general, and
In the international finance field in particular, you
have earned a reputation for ability and performance which
will be hard to equal. In addition your personal loyalty
is something I shall always remember with warm feeling.
I could at great length detail the many fine things
you have done and the many, many ways in which you have
contributed so much to the work of the Treasury and so
to your country. But I will only say you have done an
outstanding job in helping the Government conduct its
affairs in a way best designed to further its basic
policies in the best interest of all the people. You
have done a job for which you may be lastingly proud.
I am recommending that the President accept your
resignation effective February 28th inasmuch as I know
full well your feeling that you must return to private
life so as to care for your personal responsibilities.
While we all hate to see you go, we extend to you and
Mrs. Overby our heartfelt best wishes for happiness and
success in the years ahead.
Sincerely,
/s/ George
G.M. HUMPHREY
Honorable Andrew N. Overby
Assistant Secretary
Treasury Department
Washington, D. C.
(Biographical sketch of Mr. Overby attached.)

30
ANDREW N. OVERBY
Assistant Secretary of the Treasury
(and U. S. Executive Director of the
International Bank for Reconstruction and Development)

Mr. Overby was born in Cheyenne Agency, South Dakota, on March 27, 1909,
received his early education in the public schools of Minneapolis, Minnesota,
and attended the University of Minnesota from 1926 to 1928. He graduated
from Columbia University, New York City, in 1930 with the degree of B.S. and
in 1940 received the degree of M.S. from Columbia University School of Business .
From 1930 through 1941 Mr. Overby was employed by the Irving Trust Company
in New York City, serving for several 7/ears in foreign banking work and from
1936 through 1941 as Assistant to the Vice President in charge of U. S. Government and other portfolio investments of the Company.
In January, 1942, Mr. Overby joined the Federal Reserve Bank of New York
and served as special assistant to the Vice Presidents in charge of the international banking and investment functions of that institution until October
1942, at which time he entered the U. S. Army as a First Lieutenant.
During his service with the Army, Mr, Overby was in charge of the procurement of supplies, services and facilities from our Allies under reverse
lend-lease, and later became Executive Officer to the Director of Materiel,
who had responsibility for staff supervision of procurement activities of the
Army Service Forces. Mr. Overby attained the rank of Lieutenant Colonel,
General Staff Corps, and was award,ed the Legion of Merit and the Army Commendation Ribbon for distinguished military service. He was released from
the Army in April 1946.
From May to August 1946 Mr. Overby was again employed by the Federal
Reserve Bank of New York, serving as Assistant Vice President concerned particularly with the Bank*s relations with the International Monetary Fund, the
International Bank for Reconstruction and Development, and the Exports-Import
Bank.
From August 1946 to July 1947 Mr w Overby, on leave of absence from the
Federal Reserve Bank of New York, served as Special Assistant to the Secretary
of the Treasury in charge of international monetary and financial affairs.
He also served as the Secretary's Alternate on the National Advisory Council
on International Monetary and Financial Problems.
In July 1947, the President, with the advice and consent of the Senate,
appointed Mr. Overby United States Executive Director of the International
Monetary Fund. From July 1947 to February 1949 he continued to serve as
Special Assistant to the Secretary of the Treasury in an advisory capacity.

~ 2In February 1949, following his selection by the Managing Director and
Executive Directors, Mr. Overby became Deputy Managing Director of the International Monetary Fund and served in that international capacity until
January 1952.
Mr. Overby became Assistant Secretary of the Treasury in January 1952,
by appointment of the President, with the advice and consent of the Senate.
After becoming Assistant Secretary of the Treasury, Mr. Overby was appointed by the President as a Member of the Flanning Board of the National
Security Council, to serve as Special Assistant to the Secretary of the
Treasury for National Security Affairs. He was reappointed to that position
by the President in March 1956.
During the course of his service with the Treasury Mr. Overby1 s responsibilities have at various times included international financial and monetary
activities, national security affairs, national banking supervision, the U.S.
Savings Bonds Program, and assistance on Treasury debt management problems
and relations with the Federal Reserve System. Ife has served as Alternate
to the Secretary of the Treasury on the National Advisory Council on International Monetary and Financial Problems and has represented the Treasury on
other interdepartmental Councils and Committees, such as the Operations Coordinating Board and the Council on Foreign Economic Policy.
The President, with the advice and consent of the Senate, also appointed
Mr. Overby in February 1952 to be United States Executive Director of the
International Bank for Reconstruction and Development.
In July 1954, and again in June 1956, the President, with the advice
and consent of the Senate, reappointed Mr. Overby for further two-year terms
as United States Executive Director of the International Bank for Reconstruction and Development.
Mr. Overby was a member of the Charles Sawyer Mission to Western Europe
in October—December 1952 and of the Milton Eisenhower Mission to Latin America
in June-July 1953• He was also a Delegate of the United States to the Tenth
Inter-American Conference at Caracas, Venezuela, in March 1954, and to the
Extraordinary Meeting of Ministers of Finance or Economy of the Inter-American
States in Brazil in November-December 1954* Mr. Overby has attended numerous
international conferences, including Ministerial Meetings of the North Atlantic**'Treaty Organization and of the Organization for European Economic Cooperation,
and all of the Annual Meetings since 1946 of the Boards of Governors of the
International Bank and of the International Monetary Fund.
Mr. Overby is a member of Psi Unsilon, of Beta Gamma Sigma Scholastic
Society, and was the recipient of the 1947 National Honor Award voted by the
Beta Gamma Sigma chapters.
Mr. and Mrs. Overby reside at 2444 Massachusetts Avenue, Northwest,
Washington, D. C.

July, 1956

' 1 welcome you to this very brief ceremony marking the
200th Anniversary of the birth of the first Secretary of
the Treasury Alexand£fc» Hamilton, truly one of the
great men of our Nation's history. He combined the
energeticA*esourcefulness of youth with the proven ability
of experience in establishing a sound financial structure
for this country almost 200 years ago. His principj^s
of prudent/ fiseal management have contributed much
to the growth and success of our country over the years.
' We in the Treasury and the government today are trying
follow^jpg the same principles which Alexander Hamilton
laid down and worked from for the continued security and
growth of our Nation in the future, 'f

DRAFT

IMMEDIATE RELEASE

/ ^T

Treasury Secretary Humphrey placed a wreath on the
Alexander Hamilton statue at the south

of the Treasury today

in a ceremony marking the 200th anniversary of the birth of
Hamilton, first Secretary of the Treasury.

Vice President Nixon joined Secretary Humphrey in the
tribute. Secretary of Agriculture Benson was present, as were
many representatives of the diplomatic corps. Rev, Canon Luther D
Miller of Washington Cathedral pronounced the invocation.
The ceremony took place at noon. Opening it, Secretary
Humphrey smidf fa k4?m~^ *

pick up remarks

The ceremony attracted a large attendance of citizens,
Government officials and Treasury employees. ^ol<^guards from the
Army and Coast Guard presented the colors, *|HP& the Army guard
wearing colonial uniforms. The Army Band under the direction of
Captain Hoyer played the National Anthem and America the Beatiful*
Secretary Humphrey presented Mrs. W. Randolph Burgess,

y*u/f fk*t~ tTbuJ &**&*

of Alexander Hamilton,

34
TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Friday, January 11, 1957.

H-1259

Treasury Secretary Humphrey placed a wreath on the Alexander
Hamilton statue at the south portico of the Treasury today in a
ceremony marking the 200th anniversary of the birth of Hamilton,
first Secretary of the Treasury.
Vice President Nixon joined Secretary Humphrey in the tribute.
Secretary of Agriculture Benson was present, as were many
representatives of the diplomatic corps. Rev. Canon Luther D.
Miller of Washington Cathedral pronounced the invocation.
The ceremony took place at noon. Opening it, Secretary
Humphrey said in part:
"I welcome you to this very brief ceremony marking
the 2Q0th Anniversary of the birth of the first Secretary
of the Treasury Alexander Hamilton, truly one of the
great men of our Nation's history. He combined the
energetic resourcefulness of youth with the proven
ability of experience in establishing a sound financial
structure for this country almost 200 years ago. His
principles of prudent fiscal management have contributed
much to the growth and success of our country over the
years.
"We in the Treasury and the government today are
trying to follow the same principles which Alexander
Hamilton laid down and worked from for the continued
security and growth of our Nation in the future."
The ceremony attracted a large attendance of citizens,
Government officials and Treasury employees. Color guards from
the Army and Coast Guard presented the colors, the Army guard
wearing colonial uniforms. The Army Band under the direction of
Captain Hoyer played the National Anthem and America the Beautiful.
Secretary Humphrey presented Mrs. W. Randolph Burgess, great
great grand daughter of Alexander Hamilton.

0O0

O v/

RELEASE A . M . NEWSPAPERS,
Saturday, January 12, 1957

n(
V"?

The Treasury Department announced last evening that the tenders for £1,600,000,0
or thereabouts

of Tax Anticipation Series 159-day Treasury bills to be dated Janwarjr

and to mature June 2b, 1957, which were offered on January 7, were opened at the Fedti
Reserve Banks on January 11.
The details of this issue are as followss
Total applied for - 12,1*12,951**000
Total accepted
- 1,600,6l6,000

(includes 1109,678,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bidss (Excepting 3 tenders totaling $1,1*00,000)
High
Low

* 98,58b Equivalent rate of discount approx. 3.206$ pmr annus
- 98.520
•
e s s
»
3.351* •
•

Average

- 98.5faO

3.305$ •

•

(86 percent of the amount hid for at the low price was accepted)
Federal Reserve
District

Total
Applied for

Total
Accepted

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

TOTAL

i ni*.

37,783,000
1,913,372,000
26,993,000
50,317,000
19,996,000
15,325,000
165,862,000
21,710,000
17,630,000
15,668,000
10,100,000
115,1*8,000

*2,l*12,951»,OQO

16,61*3,000
l,23O,7l»2,O00
11,993,000
50,037,000
19,996,000
12,255,000
109,022,000
23,1*82,000
Hi,260,000
15,616,000
9,100,000
87.1(66,000

11,600,616,000

TREASURY DEPARTMENT
WASHINGTON, D.C
LEASE A* M. NEWSPAPERS,
turday. January 12. 1957.

H-1260

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

thereabouts, of Tax Anticipation Series 159-day Treasury bills to be dated Janu

d to mature June 21*, 1957, which were offered on January 7, were opened at the
serve Banks on January 11.
The details of this issue are as follows:
Total applied for - $2,1*12,95b,000
Total accepted
- 1,600,616,000

(includes $109,6?8,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids; (Excepting 3 tenders totaling $l,b00,000)
High
Low

- 98.58b Equivalent rate of discount approx. 3.206# per annum
- 98.520
«
tt w
n
t* 3.35:1^ «
w

Average

- 98.5b0

3.305$ »

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

Total
Applied for

Total
Accepted

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

$ 37,783,000
1,913,372,000
26,993,000
50,317,000
19,996,000
15,325,000
165,862,000
2b,710,000
17,630,000
15,668,000
10,100,000
115,198,000

$
I6,6b3,000
l,230,7b2,000
11,993,000
50,037,000
19,996,000
12,255,000
109,022,000
23,b82,000
lb,260,000
15,618,000
9,100,000
87»b68,OOQ

TOTAL

,bl2,95b,000

$1,600,616,000

37
L

RELEASE A. M. HEtfSPAPERS,
Tuesday, January 15, 1957*

The Treasury Department announced last evening that the tenters for $1,600,000,
or thereabouts, of 91-day Treasury bills to be dated January 17 and to mature April
1957 , which were offered on January 10, were opened at the Federal Reserve Banks ea
January lb.
The details of this issue are as follows:
Total applied for - $2,810,292*000
Total accepted
- 1,601,086,000

(includes $b27,126,000 entered on a
noncompetitive basis and accepted in
full at the average priee shown below)
Range of accepted competitive bidet (Excepting one tender of $100,000)
High - 99*221 Equivalent rate of disooant approx. 3*062? per asm
Low

- 99*183

•

3.232)1 •

Average - 99.185 " • " • • 3.223* * •
(b9 percent of the amount bid for at the low priee was aeeepted)
Federal Reserve
Dietrict

Total
Applied for

Total
Aeeepted

Boston
New York
Philadelphia
Cleveland
Riehaond
Atlanta
Chicago
St. Louie
Minneapolis
Kansas City
Dallas
San Francisco

Total

41,420,000
35,653,000
84,636,000
26,315,000
56,705,000
291,471,000
50,503,000
18,380,000
53,230,000
1*9,963,000
157,611.000

28,696,000
922,452,000
19,978,000
84,636,000
26,315*000
51,706,000
192,811,000
1*6,904,000
17,760,000
45,720,000
39,943,000
124,143.000

$2,810,292,000

$1,601,066,000

i,944,4o5,ooo

IkiL

•

RELEASE A. M. NEWSPAPERS,
fuesday, January 15, 1957*

H-1261

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 17 and to mature April 18,
L957, which were offered on January 10, were opened at the Federal Reserve Banks on
January lb*
The details of this issue are as follows s
Total applied for - $2,810,292,000
Total accepted
- 1,601,086,000

(includes $b27,126,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids: (Excepting one tender of $100,000)
High - 99*221 Equivalent rate of discount approx. 3.082? per annua
Low
- 99.183
•
S
U
M
tt
Average - 99*185

3#232J*

ess w 3.223? " "

(b9 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

$ bl,b20,000
l,9bb,b05,000
35,653,000
8b,636,000
26,315,000
56,705,000
291,b71,000
50,503,000
18,380,000
53,230,000
b9,963,000
157,611,000

$2,810,292,000

$1,601,086,000

Total

28,696,000
922,b52,000
19,978,000
8b,636,000
26,315,000
51,708,000
192,811,000
1*6,90b, 000
17,780,000
b5,720,000
39,9b3,000
12b,lb3,000

«•

- 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 b5b (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. bl8, 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 -

2 percent of the face amount of Treasury bills applied for, unless the tenders ar<
accompanied by an express guaranty of payment by an incorporated bank or trust
company.
Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following 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 Januarv 24. 1957 , in cash or other immediately available funds
or in a like face amount of Treasury bills maturing January 24, 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 195b. The bills
are subject to estate, inheritance, gift or other excise taxes, whether Federal
or State, but are exempt from all taxation now or hereafter imposed on the princip^
or interest thereof by any State, or any of the possessions of the United States,

41
TREASURY DEPARTMENT
Washington
A.M.
$m RELEASE^MQRtfBBS: NEWSPAPERS,
Tuesday, January 15, 1957
•

—sr^
The Treasury Department, by this public notice, invites tenders for
$1,600,000,000 9 or thereabouts, of
91
-day Treasury bills, for cash and
in exchange for Treasury bills maturing
$1,600,142,000

January 24, 1957

, in the amount of

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

m—
competitive bidding as hereinafter provided. The bills of this series will be
dated
January 24, 1957
, and will mature
April 25, 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,/tanc o'clock p.m., Eastern Standard time, Friday, January 18, 1957 .

—1E5J

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
U^rt CTg ^l\V;^irwwwi')>t^Ljiu»ii 1 ,| L || ||j|||i | a y r ^ ° " ^ " T * J '

)inumm9mmmMmm%mVimmmmi'jm»jm.>miama»^

WASHINGTON, D.C.

RELEASE A.M. NEWSPAPERS,
Tuesday, January 15, 1957*

H-1262

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 24, 1957,
in the amount of $1,600,142,000, 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 24, 1957,
and will mature April 25, 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;
Friday, January 18, 1957.
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 bil.ls applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price
range of accepted bids. Those submitting tenders will be advised of
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders
in whole or in part, and his action in any such respect shall be
final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted

- 2 competitive bids. Settlement for accepted tenders In accordance
with the bids must be made or completed at the Federal Reserve Bank
on January 24, 1957, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing January 24, 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 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

43
Just when and how a tax reduction should be made can be determined
only when it is known how well these conditions have been fulfilled.
In any event, any such tax cuts must provide relief so that every
INDIVIDUAL taxpayer may have some benefit. In the meantime, and
until this is accomplished, we must continue to oppose any revision
of the tax laws which results in any substantial loss of Government
income.
This program will provide more effective control of our spending.
It will become a desirable restraint on inflationary pressures through
release to the private economy of added manpower and money which,
in turn, can open the way to lower taxes, with a sharper spur to
incentive and greater opportunity, and production and more and better
jobs.
This is a program of genuine promise. I believe we must push
it vigorously and at once.

- 5-

especially at this time when the economy is operating at such a high
level* and \jf* avofd Requests for services or assistance which properly
A
can be supplied by States or local communities or by the citizens
themselves.
^5Vevw(* We must request the support of the Congress to restrict the
~Xc %*"dMft* \* LJI--..^ \J^f^<m \
appropriation of public moneyte>*&& amoTlhlrs^ recommended inthe
'^^i mm. v^ ^
Budgenaimlp£ff*a»tty required to carry out the necessary Federal
functions.
O v x/v<ri'. We must require every Department and Agency of the Government
to take vigorous measures, without harm to either security or service
to the public, to see that actual expenditures are kept well within the
present budgeted figures between now and the end of the next fiscal
year and, as the President has said, "search out additional ways to
save money and manpower. "
^^^jX^We must plan for the 1959 budget, giving urgent attention to
making further reductions both in government employment and in
expenditures where these savings will not affeet the quality of the l(#l
necessary services rendered to the public.
If this program is adopted and resolutely followed, ?we can, a
year hence, give consideration! to further tax reductions. This, of
/

course, must be conditioned upon continuation of our present prosperity.

45
-4-

The President in his State of the Union Message has just said:
"Through the next 4 years, I shall continue to insist
that the Executive Departments and Agencies of
Government search out additional ways to save money and
manpower. I urge that the Congress be equally watchful
h {
in this matter. M _^7
f-P ^7T",
^ A
<*

*T'

yfe should now all go to work, not simply to keep within the '-(;
^

limits of this budget, but to make actual and substantial reduction

through improved efficient^" of our operations during the period of

the next 18 months which this budget covers. To make this possible,
every Department of Government must with vigor and determination
modernize and streamline their services. The management of every
service must be conducted with the possibilities of economy always
in mind.
The President has said that the Federal Government alone cannot

successfully combat inflation without the earnest cooperation of al
individuals and groups of our citizens. As emphasized in the State
of the Union Message, business leaders and labor ledders, through
their wage and price policies, must make their full, constructive

contribution* »!•*». All other groups must KELHfcixK contribute to
common effort.
r

\P y*C vvT' ^ e

m u s t see

^ t^e full cooperation of the public generally in

KififflXagXD^XSfi^^ its demands
upon the Federal Government for only essential Federal functions,

- 3These reductions in Government spending also helped to give
greater stability to the cost of living than we have ever had in a
period of such prosperity. The cost of living has recently moved
up somewhat in spite of monetary measures to restrain it.
Governmental expenditures and the number of government employee
are now increasing. This trend MKt be stopped.
This Administration has a record of gratifying achievements
in economical and efficient management of the Federal Government.
The civilian working force of the Government has been reduced by

over 234, 000 persons during the past four years; the accounting and
management procedures of Government have been vastly improved;
over 400 Federal enterprises competing with business have been
abolished; surplus real estate worth $366, 000, 000 has been sold
and turned back to local tax rolls. These are but a few specific
illustrations of our progress. We all must work together to widen
and enlarge these accomplishments.
Long hours of painstaking and conscientious work have gone
into the preparation of the budget for the fiscal year 1958. All
Departments of Government should be commended for the efforts
they have made.

47
- 2No one can say exactly how much we can continue to spend for
defense and all other governmental services without seriously
weakening our economy. While military manpower and equipment

protect our lives and our land, they make virtually no addition to t
permanent wealth of the Nation --to new plants and machinery, new
mines, new farms, new homes, or to new jobs for peacetime living.
The billions of dollars spent annually by the Government for
military equipment and manpower go into the spending stream but are
not matched by an increase in the production of peacetime goods, so

that heavy pressure is put on the price of goods which all the peopl
must buy. This imbalance makes it more difficult to keep the oost
of living within bounds. Monetary measures alone may not be sufficient for this task unless the Federal Government makes reductions

in its manpower and in its purchases which will help to increase the
production of additional peacetime goods and so help to hold down
prices. Moreover, the funds so released will then be available to

build up the capital needed to help create the new jobs, to build th
new schools and the countless other improvements required in this
growing country of ours.
Our reduction in government expenditures three years ago made

possible the greatest tax cut in history, and stimulated the surge o

Bcaxiodx national confidence which has created the prosperity of the
two years, the greatest we have ever known.

^^J^SM*^

jSfr
qEwfiMii'^MMVMMi

STATEMENT OF GEORGE M. HUMPHREY, SECRETARY OF THE
TREASURY, IN SUPPORT O^THEPRESIDENT'S BUDGET
MESSAGE FOR FISCAL YEAR i&Bftf58, PflffifiiTMTTffia TQ^HE
ijM<&& MADE BY THE SECRETARY AT
DELIVERY OF THE BUDGET MESSAGE ^%m^ ' mim{ &r£ >J* b*4+**X
$1fr^4**'
/ *

In support of the President's Budget Message for the^lriscal
yf tA+«L X A ^ S N ^ /ei*v y^*4*U££*fa"/fa &»£*+**j

are several recommendations which I want to particularly emphasize.
The President has often said that the basic fiscal problem
confronting this Government is how to meet the ncessary costs of
an adequate defense and other governmental activities and, at the
same time, furnish the incentives necessary to a thriving, growing,
and reasonably stable economy. Failure in either direction could
well mean the grddual loss of our freedom and of our way of life.
During the past few years the greatest strides in history have
been taken in the development of modern lethal weapons which can
literally destroy great cities and whole areas of population. The
methods are completely new. They are extremely costiy. They are
shared to some degree by two great powers with wholly different
ideologies.
In this state of affairs, we must remain both militarily and
economically strong. To do so, the extremely high cost of the new
weapons demands that we be highly selective and quick to abandon
the expense of q$$

obsolete methods and equipment.

'OR USE APTETTl?: 00 TJOON
'EDNESDAY, JANUARY 16, 1957
TREASURY DEPARTMENT
Washington
STATEMENT OF GEORGE M. HUMPHREY, SECRETARY OF
THE TREASURY, IN SUPPORT OF THE PRESIDENT'S
BUDGET MESSAGE FOR FISCAL YEAR 1958, MADE BY
THE SECRETARY AT HIS PRESS CONFERENCE TUESDAY,
JANUARY 15, 1957. FOR USE UPON DELIVERY OF
THE BUDGET MESSAGE AT NOON E.S.T., WEDNESDAY,
JANUARY 16, 1957.

In support of the President's Budget Message for the fiscal
year 1958, which has just been presented to the Congress, there
are several recommendations which I want particularly to emphasize.
The President has often said that the basic fiscal problem
confronting this Government is how to meet the necessary costs of
an adequate defense and other governmental activities and, at the
same time, furnish the incentives necessary to a thriving, growing,
and reasonably stable economy. Failure in either direction could
well mean the gradual loss of our freedom and of our way of life.
During the past few years the greatest strides in history have
been taken in the development of modern lethal weapons which can
literally destroy great cities and whole areas of population. The
methods are completely new. They are extremely costly. They are
shared to some degree by two great powers with wholly different
ideologies.
In this state of affairs, we must remain both militarily and
economically strong. To do so, the extremely high cost of the new
weapons demands that we be highly selective and quick to abandon
the expense of obsolete methods and equipment.
No one can say exactly how much we can continue to spend for
defense and all other governmental services without seriously
weakening our economy. While military manpower and equipment
protect our lives and our land, they make virtually no addition
to the permanent wealth of the Nation — to new plants and machinery,
new mines, new farms, new homes, or to new jobs for peacetime
living.
The billions of dollars spent annually by the Government for
military equipment and manpower go into the spending stream but are
not matched by an increase in the production of peacetime goods, so
that heavy pressure is put on the price of goods which all the
people must buy. This imbalance makes it more difficult to keep
the cost of living within bounds. Monetary measures alone may not
be sufficient for this task unless the Federal Government makes
H-1263

- 2 reductions in its manpower and in its purchases which will help to
increase the production of additional peacetime goods and so help
to hold down prices. Moreover, the funds so released will then be
available to build up the capital needed to help create the new
jobs, to build the new schools and the countless other improvements
required in this growing country of ours.
Our reduction in Government expenditures three years ago made
possible the greatest tax cut in history, and stimulated the surge
national confidence which has created the prosperity of the past
two years, the greatest we have ever known.
These reductions in Government spending also helped to give
greater stability to the cost of living than we have ever had in a
period of such prosperity. The cost of living has recently moved
up somewhat in spite of monetary measures to restrain it.
Governmental expenditures and the number of Government employees
are now increasing. This trend should promptly be stopped.
This Administration has a record of gratifying achievements
in economical and efficient management of the Federal Government.
The civilian working force of the Government has been reduced by
over 234,000 persons during the past four years; the accounting and
management procedures of Government have been vastly improved;
over 400 Federal enterprises competing with business have been
abolished; surplus real estate worth $366,000,000 has been sold
and turned back to local tax rolls. These are but a few specific
illustrations of our progress. We all must work together to widen
and enlarge these accomplishments.
Long hours of painstaking and conscientious work have gone
into the preparation of the budget for the fiscal year 1958. All
Departments of Government should be commended for the efforts
they have made.
The President in his State of the Union Message has just said:
"Through the next 4 years, I shall continue
to insist that the Executive Departments and
Agencies of Government search out additional ways
to save money and manpower. I urge that the
Congress be equally watchful in this matter."
To accomplish these essential objectives we should now all go
to work, not simply to keep within the limits of this budget, but
to make actual and substantial reductions through improved
efficiency of our operations during the period of the next 18
months which this budget covers. To make this possible, every
Department of Government must with vigor and determination
modernize and streamline their services. The management of every
service must be conducted with the possibilities of economy always
in mind.

- 3-

The President has said that the Federal Government alone
cannot successfully combat inflation without the earnest
cooperation of all individuals and groups of our citizens. As
emphasized in the State of the Union Message, business leaders and
labor leaders, through their wage and price policies, must make
their full, constructive contribution. All other groups must
also contribute to the common effort.
First: We must seek the full cooperation of the public
generally in limiting its demands upon the Federal Government for
only essential Federal functions, especially at this time when the
economy is operating at such a high level. Requests should be
avoided for services or assistance which properly can be
supplied by States or local communities or by the citizens
themselves.
Second: We must request the support of the Congress to
restrict the appropriation of public money to amounts within those
recommended in the Budget which may be required to carry out the
necessary Federal functions.
Third: We must require every Department and Agency of the
Government to take vigorous measures, without harm to either
security or service to the public, to see that actual expenditures
are kept well within the present budgeted figures between now and
the end of the next fiscal year and^ as the President has said,
"search out additional ways to save money and manpower."
Fourth: We must plan for the 1959 budget, giving urgent
attention to making further reductions both in Government employment
and in expenditures where these savings will not lessen our
security or the quality of the necessary services rendered to the
public.
If this program Is adopted and resolutely followed, we can, a
year hence, give consideration not only to some further payment
on the public debt but also to further tax reductions. This, of
course, must be conditioned upon continuation of our present
prosperity. Just when and how a tax reduction should be made can
be determined only when it is known how well these conditions
have been fulfilled. In any event, any such tax cuts must provide
relief so that every INDIVIDUAL taxpayer may have some benefit.
In the meantime, and until this is accomplished, we must continue
to oppose any revision of the tax laws which results in any
substantial loss of Government income.
This program will provide more effective control of our spending. It will become a desirable restraint on inflationary
pressures through release to the private economy of added manpower
and money which, in turn, can open the way to lower taxes, with a
sharper spur to incentive and greater opportunity, and production
and more and better jobs.
This is a program of genuine promise. I believe we must push
it vigorously and at once.
oOo

Janoary 3* 1957

52
1h« following traaaaciioB. wr. aad. in direct cad gvar*nt««d
••euriti*. of the GevernBwnt for Treasury i&v*ttR«ot« and ottor aooouata
during th. nonth of D.e«*bar, 1956t
Purchas.6 |21,807, 500.00
121,328,450.00
•SB38S8BNHPHBBB39IBKB9BC

Cm L. Norman

^£<>£W Chief, lavMtat&ts Branch
Diriaioa of Deposits 4 lavestaMta

TREASURY DEPARTMENT
WASHINGTON, D . C

IJINFDLATE REI.EA.^?.,

•?li.•^)^.v•^.•-T•• Dcoi-:n:u.: L^^TJ ^2'r.-

H-ISM"

During November 1956, market transactions
in direct and guaranteed securities of the
government Tor Treasury in/estmant and other
accounts resulted in net purchases by uhe
Treasury Department of C J U J O T I #sbfL

0C0

TREASURY DEPARTMENT
WASHINGTON, D.C

IMMEDIATE RELEASE,
Wednesday, January 16, 1957.

H-1264

During December 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 $21,328,450.

oOo

IMMEDIATE R E L E A S E ,
Thursday, January 1 7 , 1 9 5 7 .

T R E A S U R Y DEPARTMENT
Washington

H-1265
KJ ^mJ

The Bureau of Customs announced today preliminary figures showing the imports
for consumption of the commodities listed below within quota limitations from the
beginning of the quota periods to December 31, 1956, inclusive, as follows:

Unit :
of
: Imports as of
Quantitv:Dec. 31f I9ft_

Commodity
Tariff-Rate Quotas;
Cream, fresh or sour Calendar Tear
Whole milk, fresh or sour

, Calendar Year

Cattle, less than 200 lbs. each 12 mos. from
April 1, 1956
Cattle, 700 lbs. or nr>re each .. Oct. 1, 1956 (other than dairy cows)
Dec. 31, 1956
Fish, fresh or frozen, filleted,
etc., cod, haddock, hake,
Calendar Year
pollock, cusk, and rosefish
Tuna fish

1,500,000

Gallon

707

3,000,000

Gallon

2,032

200,000

Head

6,271*

Head

5,826

120,000

35,196,575

Pound

Quota Filled

April 16, 1956
Dec. 31, 1956

28,757,393

Pound 27,7la,867

lflhite 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

Pbund

189,652

Peanut oil

12 mos. from
July 1, 1956

TSbolen fabrics

Oct. 1, 1956 Dec. 31, 1956

75,67U,l80
13,160,682

80,000,000

Pound

3,500,000

Pound

3,262,311*

1,709,000

Pound

Quota Filled

182,280,000
3,720,000

Pound
Pound

182,212,91k (1)

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
(V\

Tmoorts through January 15. 1957

IMMEDIATE R E L E A S E ,
rhursday. January 175 1957

T R E A S U R Y DEPARTMENT
Washington

H-1265

The Bureau of Customs announced today preliminary figures showing the imports
tor consumption of the commodities listed below within quota limitations from the
>eginning of the quota periods to December 31, 1956, inclusive, as follows:

Commodity

Period and Quantity

: Unit :
:
of
: Imports as of
:Quantity:Dec. 31P 1956

Tariff-Rate Quotas:
< Calendar Year

Sream, fresh or sour

1,500,000

Gallon

707

3,000,000 Gallon

2,032

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

200,000 Head

6,27U

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

120,000 Head

5,826

Calendar Year

Bhole milk, fresh or sour ,

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

35,196,575

Pound

Quota Filled

28,757,393

Pound

27,741,867

White or Irish potatoes:
Certified Seed
Other

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

Pound
Pound

75,674,180
13,160,682

VV&JLnUT>S ••••••••••••••• .....

Calendar Year

5,000,000 Pound

Quota Filled

•...

12 mos. from
July 1, 1956

2,500,000 Pound

189,652

•••»...•••••

12 mos. from
July 1, 1956

80,000,000 Pound

Tuna fish

...

•«.s.«e

Alsik6 clover seed • « « « » • •
Peanut oil .. . . . . . .
Woolen fabrics

•

April 16, 1956 Dec. 31, 1956

Oct. 1, 1956 - 3,500,000 Pound
Dec. 31, 1956

3,262,314

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

Imports through January l5. 1957

1,709,000

Pound

Quota Filled

182,280,000
3,720,000

Pound
Pound

182,212,9lU (1)

TREASURY DEPARTMENT
Washington

57
IMMEDIATE R E L E A S E ,
Thursday, January 17,1957

H-1266

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

of 1955:

Conraodity

807,500

Buttons

Imports as of

: Established Annual
:
Quota Quantity

Dec. 31, 1956
Gross

787,355

Cigars

190,000,000

Number

Coconut Oil

U25,6oo,ooo

Pound

187,931,108

6,000,000

Pound

5,32li,895

Cordage
(Refined .,

21,k$9,k99
1,90U,000,000

Sugars

Pound

(Unrefined
Tobacco

U,195,785

l,88U,275,71li
6,175,000

Pound

6,0U6,192

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Thursday» January 17,1957

H-1266

The Bureau of Customs announced today the following preliminary
figures showing the imports for consunption from January 1, 1956, to
December 31, 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
Dec. 31, 1956

Gross

787,355

k,i9$,n$

Cigars 190,000,000

Number

Coconut Oil U25,600,000

Pound

187,931,108

Cordage 6,000,000

Pound

5,32U,895

(Refined
Sugars
(Unrefined
Tobacco 6,175,000

21,k$9,h99
1,90U,000,000

Pound

1,88U,275,71U
Pound

6,0U6,192

COTTON WASTES
(In pounds)

\mJ V-/

COTTON CARD STRIPS made from cotton having-* staple of less than 1-3/16 inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING 7/ASTE, 'WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUEi Provided, however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more
in staple length in the case of the following countries: United Kingdom, France, Netherlands,
Switzerland* Belgium, Germany, and Italys

Country of Origin

Established
TOTAL QUOTA

tTotal
Imports
: Established s
Imports
: Sept. 20, 1956, to s -33-1/3* of : Sept. 20, 1956
Total
Quota : to Jan. 15. 1957
: Jan. 15. 1957
"

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

95,562
239,690

22,775

25,443
7,088

22,775

5,482,509

358,027

1,599,886

118,337

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

1,4U,152

95,562

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

TREASUBY DEPARTMENT
Washington

IMMEDIATE RELEASE, H-1267
rhursday, January 17, 1957.
Preliminary data on imports f or consumption of «^»»- ^»* '^tS^T^^,Uir^nS2dt1^ *****
established by the President»-s Proclamation of September 5, 1939, as amended
COTTON (other than linters) (in pounds)
ff«tb« unrfer 1-1/8 inches other than rough or harsh under 3/4
Tmports Sept. 20. 19 56- to January IS. 1957
_—
. .. . , Honduras . . . . . • /.£?
Sgypt and the Anglo_
Paraguay . . . . . . .
Egyptian Sudan . . .
783,816
_
r^JJJ ^
^
British India .... . 2 003,483 «MW .gg^'j^ Afkca\ I 2,246
'h^ • • '
i'^' ,
8,883,259
Netherlands E. Indies.
e co
^ ^
'Saw!
600 000
Barbados
Brazil . . . v . . . •
w*,W
l/0ther British W. Indies
Union of Soviet
_
Nigeria
4 7
Socialist Republics .
HS
2/0ther British 1. Africa
Argentina
237
~
l/Other French Africa . .
Haiti .
_
Algeria and Tunisia .
Ecuador .
7,-?.?.?
1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
3 / Other than Algeria, Tunisia, and Madagascar.
- .. „ +>,an O/.H Cotton 1-1/8" or more , ;
• ^H.H.H Onnta (aiobal) imports KstabHshed Quota (Global) Imports.
70,000,000 505,008 45,656,420 8,479,672

871
124

71,388
21,321
5,377
16,004
689

61
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Thursday. January 17. 1QS7.

H-1267

Preliminary data on imports for consumption of cotton and. cotton -waste.chargeable to the quotas
established by the President'-s. Proclamation of September 5, 1939, as amended
<• COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/4"
Imports Sept. 20. 19 56, to January 15. 1957
Country of Origin, Established Quota Imports Country of Origin Established Quota Imports
Egypt and the Anglo- Honduras 752
Egyptian Sudan . . .
783,816
Paraguay
1
I'™. ;/;
2W.952
Colombia
A
British India . . . . .
2,003,483
84,415
Iraq
hina
pf
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/other British W. Indies
Socialist Republics .
475,124
Nigeria . . . . . . .
Argentina
5,203
2/0ther British W. Africa
Haiti
237
.2/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 3/1" Cotton 1-1/8" or more
Imports Sept. 20, 19ft, to Dec. 31, 1956
imports A u g u s t I 1956.to n.„.
Established Quota (Global) Imports Established Quota (Global) Imports
70,000,000 505,008 45,656,420 8,479,672

871
124
£95
2.240
71 388
_
21.321
5 377
16*004
689

31. IPSA, w . i .

-£COTTON PASTES
%In pounds)
COTTOH C«BD STRIPS «d. Iro» otton having ?«£« °f*" ^*2&S5SSD^S^^

Switzerland, Belgium, Germany, and Italy*

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

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

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

Total Imports
Sept. 20, 1956, to
.Tan. 15. 1957
95,562
239,690

Established s
Imports
33-1/356 of s Sept. 20, 1956
Total Quota t to Jan. 15. 1957
1,441,152

95,562

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

22,775

25,443
7.088

22,775

358,027

1,599,886

118,337

mmmlmmtlmmmmmmmm*^^

$**+**^y'//***?
The Treasury Department announced today that the Bureau
of Customs baa issued Treasury Decision 5^236 relating to
I
•
adjustments to Imported Batch movements, B*e decision
**\

clarifies certain portions of T.D. 50277(3) published In
1940 on this subject and provides for additional ^invoice
Information relative to adjustments to be submitted with
Imported watch movements.

The decision Is being miblished In the Federal Register
today*
Both the newly published decision and T.D. 50277(3) are
rulings interpreting administratively the provisions of
paragraph 367 of the Tariff ,ict of 1930* as^ It .relates" to the
special customs duty on watch movement adjustments*0 These
provisions are being reviewed in the light 6f "th# present day
•

r*
mi

teehnological Atuatlon In the watch trade* to determine what
reccanendatlons should be made to the Congress.

63
TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE A.M. NEWSPAPERS,
Thursday, January 17, 1957.

H-1268

The Treasury Department announced today that the
Bureau of Customs has issued Treasury Decision 5^-286
relating to adjustments to imported watch movements.
The decision clarifies certain portions of
T.D. 50277(3) published in 1940 on this subject and
provides for additional invoice information relative
to adjustments to be submitted with imported watch
movements.
The decision is being published in the Federal
Register today.
Both the newly published decision and T.D. 50277(3)
are rulings interpreting administratively the provisions
of paragraph 367 of the Tariff Act of 1930, as it relates
to the special customs duty on watch movement adjustments^
These provisions are being reviewed in the light of the
present day technological situation in the watch trade,
to determine what recommendations should be made to the
Congress.

0O0

Ii-a i

RELEASE k.W. HIWSFAPE1S,
Usturday^ January 19. 1957*

The Treasury Department announced last evening that the tenders for 11,600,000,0c
or thereabouts, of 91-day Treasury bills to be dated January 2k and to mature April 25
1957f which were offered on January 1$, were opened at the Federal Reserve Banks on
January 18.
The details of this issue are as fellowst
Total applied for
Total accepted

12,1*16,372,000
1,600,012,000 (includes $3lli,20i*,000 entered on
a noncompetitive basis and accepted in
full at the average priee shewn below)

Range of accepted competitive bids:
High
Low

• 99*231 Equivalent rate of discount approx* 3.0i*2£ pmr annua
- 99.213 ' •
•
a
•
»
3.113* "
*

Average

- 99.220

•

3.085* *

(51 percent of the amount bid for at the low priee was accepted)

Federal Reserve
District

Total
Applied for

Total
Aeeoptod

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

•

37,963,000
1,736,1(19,000
37,818,000
78,301,000
20,781,000
35,187,000
235,781»,000
31,1*25,000
12,621,000
36,906,000
15,899,000
107.238,000

*
27,963,000
1,006,379,000
22,61t8,000
73,001,000
20,781,000
33,687,000
l81i,26]i,Q00
31,375,000
12,621,000
36,906,000
1(3,699,000
106,U88,000

f2,lil6,372,000

$1,600,012,000

TOTAL

k(\[

RELEASE A.Mo NEWSPAPERS,
ftturday, January 19, 1957.

H-1269

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 2k and to mature April 25*
1957s> which were offered on January 15, were opened at the Federal Reserve Banks on
January 18 e
The details of this issue are as follows?
Total applied for - $2,1*16,372,000
Total accepted
- 1,600,012,000 (includes $3ll*,20l*,000 entered on
a noncompetitive basis and accepted in
full at the average price shown below)
Range of accepted competitive bids:
High - 99*231 Equivalent rate of discount approx* 3»Ol*2£ per annua
M
Low
- 99.213
w tt
w
*
Average - 99.220 w « w « u 3.085$

3.11356

w w

(5l percent of the amount bid for at the low price was accepted)

Federal Reserve
District

Total
Applied for

Total
Accepted

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

37,963,000
1,736,1*19,000
37,81*8,000
78,301,000
20,781,000
35,187,000
235,78U,000
31,1*25,000
12,621,000
36,906,000
1*5,899,000
107,238,000

$
27,963,000
1,006,379,000
22,81*8,000
73,001,000
20,781,000
33,687,000
181*,261*,000
31,375,000
12,621,000
36,906,000
1*3,699,000
106,1*88,000

$2,1*16,372,000

$1,600,012,000

TOTAL

TREASURE DEPARTMENT
WASHINGTON,
RELEASE MORtflNG NEWSPAPERS,
Friday, Apr/1 29, 1955*

[-784

Secretary Humphrey tocmy announced the apffointmlnt of
John PottI Barnes of Chicago as Chief Counsel tf the! Internal
Revenue Service. The Chiajf Counsel is an AssjptantJpeneral
Counsel if the Treasury Department• He will fake offrice on
May 9* If 55.
Mr/ Barnes has been/in general law practice sirjce May 1944,
specializing in federal Ibax matters. In 195E he beiame a member
of the fiaw firm of McKinney, Carlson, Barnesf and Smalley, Chicago.
Trie new Chief Coui ;el is returning to he Internal Revenue
Servide where he servei from 1928 to 1933 :s Specia Attorney.
During! this period he fas assigned to the iffice of • the
Unite! States Attorney [for the Northern Di, •trict of.Illinois,
acting as legal adviso: to the various re' mue officers in the
Chicago district and aj so representing th< Government in trials
of c M l tax cases.
Mr. Barnes was born in Montgomery, Alabama on August 13,
1902. He received his academic degree from the University of
Chicago in 1923, and a J.D. degree, cum laude,in 1924. He is
a member of the Order of Coif. After graduation he practiced
law in Birmingham, Alabama. From 1926 to 1928 he served as
Assistant Legislative Counsel, the United States Senate.
In 1934 he became tax attorney for Armour and Company and
was appointed Assistant General Counsel of the company in 1940.
He resigned this position in May 1944 to enter private law
practice in Los Angeles.
From 1930 to 19353 Mr. Barnes lectured at the University
of Chicago Law School on federal tax law, contracts and
insurance. He is a member of the Chicago, Los Angeles, Illinois,
California and American Bar Associations.
Mr. Barnes is married and has two daughters, and resides
in Evanston, Illinois.

67
Mr. Barnes was appointed Chief Counsel of the Revenue
Service April 29, 1955* ^© had been in general law practice
since May, 19hh9 specializing in Federal tax matters.
From 1928 to 1933 he had served in the XMX Internal Revenue
Service as Special Attorney.

p-p.
Chief Counsel uras
o

^
y

^*ff**X
x
iMm*. Barnes
announced April 29^^1955. Ke had been

in general law practice
r

since/May, 191+4* specializing in
y

Federallax matters. From/1928 to 1933 he had served in
,y

the Internal Revenue Service as Special Attorney
y*

CQ
ILKE DI kT6 RE LE AS B

/fj/fj'i

'fi-MO

John Potts Barnes, Chief Counsel of the Internal Revenue
Service, today submitted his resignation to Treasury
Secretary Humphrey. He will return to the private practice of
Isw.
In accepting the resignation, Secretary Humphrey wrote
Mr. Barnes that he did so with the greatest reluctance.
"You have the gratitude of all of us for the splendid job
you have done as Chief Counsel," the Secretary said. "The
needs of both the General Counsel of the Treasury and the
Commissioner of Internal Revenue have been superbly served
by your wise counselling, and you have ably administered
your important office and skilfully guided its large staff
in serving the public interest in a most difficult field."

I
Mr. Earnes in his letter of resignation pointed out that KJL
Treasury
^ui^^^^^^JfO
h^fl had informed/General Counsel Fred C. Scribner, Jr., of °
his plans to return to private law practice. "I have
reached my decision with genuine regret and wish that it were
possible for me to remain longer," he said. "I am grateful to
you for the opportunity of serving under you and as a re mbe r of
your fine organization."
Mr. Barnes will join the law firm of MacLeish,Spray,
Price and Underwood in Cnicago,

&d 0

TREASURY DEPARTMENT
IMMEDIATE RELEASE
Friday, January 18, 1957

W A S H I N G T O N , D.C.
H-12.70

John Potts Barnes, Chief Counsel of the Internal Revenue
Service, today submitted his resignation to Treasury Secretary
Humphrey. He will return to the private practice of law.
In accepting the resignation, Secretary Humphrey wrote Mr.
Barnes that he did so with the greatest reluctance. "You have
the gratitude of all of us for the splendid job you have done as
Chief Counsel," the Secretary said. "The needs of both the
General Counsel of the Treasury and the Commissioner of Internal
Revenue have been superbly served by your wise counselling, and
you have ably administered your important office and skillfully
guided its large staff in serving the public Interest in a most
difficult field."
Mr. Barnes in his letter of resignation pointed out that he
had informed Treasury General Counsel Fred C. Scribner, Jr., some
time ago of his plans to return to private law practice. "I have
reached my decision with genuine regret and wish that it were
possible for me to remain longer," he said. "I am grateful to
you for the opportunity of serving under you and as a member of
your fine organization."
Mr. Barnes will join the law firm of MacLeish, Spray, Price
and Underwood in Chicago.
Mr. Barnes was appointed Chief Counsel of the Revenue Service
on April 29, 1955. He had been in general law practice since May,
1944, specializing in Federal tax matters. From 1928 to 1933 he
had served in the Internal Revenue Service as Special Attorney.
Mr. Barnes was born in Montgomery, Alabama on August 13, 1902.
He received his academic degree from the University of Chicago in
1923, and a J.D. degree, cum laude, in 1924. He is a member of
the Order of Coif. After graduation he practiced law in Birmingham,
Alabama. From 1926 to 1928 he served as Assistant Legislative
Counsel, the United States Senate.
In 1934 he became tax attorney for Armour and Company and was
appointed Assistant General Counsel of the company in 1940. He
resigned this position in May 1944 to enter private law practice
in Los Angeles.
From 1930 to 1935, Mr. Barnes lectured at the University of
Chicago Law School on federal tax law, contracts and insurance.
He is a member of the Chicago, Los Angeles, Illinois, California
and American Bar Associations.
Mr. Barnes is married and has two daughters, and resides in
Evanston, Illinois.

IMMEDIATE RELEASE,
Wednesday, January 25, 1957.

.* j _,
y I

£$*v /
'

The Treasury Department today announced tbat it will sell en
additional $100 million of Treasury bills with the issue whieh
will be bid fbr on January 28 and will be dated January XL. The
total of this issue will therefore be $1.7 billion.
Ibe purpose of the increase is to augaeot the Treasuryfs
operating balance during the current period of seasonally lov tax
receipts*
pay off from tax receipts
The Treasury will/rettbot |1 billion of Treasury bills due
March 22, together with the $3*2 billion of Tax Anticipation
certificates maturing on that date, both of which are accefprtable
at face value in payment of income and profits taxes due on
March 15*

IMMEDIATE RELEASE,
Wednesday, January 23, 1957.

H-1271

The Treasury Department today announced that it will
sell an additional $100 million of Treasury bills with the
issue which will be bid for on January 28 and will be dated
January 31.. The total of this issue will therefore be
$1.7 billion.
The purpose of the increase is to augment the Treasury's
operating balance during the current period of seasonally
low tax receipts.
The Treasury will pay off from tax receipts $1 billion
of Treasury bills due March 22, together with the $3.2 billion
of Tax Anticipation certificates maturing on that date, both
of which are acceptable at face value in payment of income
and profits taxes due on March 15.
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 \x$\x (b) and 1221 {$) of the Internal Revenue Code of
1954 the amount of discount at which bills issued hereunder are sold is not
considered to accrue until such bills are sold, redeemed or otherwise disposed of,
and such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between the price paid
for such bills, whether on original issue or on subsequent purchase, and the
amount actually received either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 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 -

73
2 percent of the face amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank or trust
company.
Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the
Treasury Department of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect shall be
final. Subject to these reservations, noncompetitive tenders for $200,000 or less
without stated price from any one bidder will be accepted in full at the average
price (in three decimals) of accepted competitive bids. Settlement for accepted
tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on January 51, 1957 , in cash or other immediately available funds
x&Sx
or in a like face amount of Treasury bills maturing
January 51, 1957
Cash

xSSS
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,

ttro-t'iM'jw

mm
TREASURY DEPARTMENT
Washington
A. M.
TSK RELEASE/HEKMMS
NEWSPAPERS,
Thursday, January 24, 1957
.

U
"

m
competitive bidding as hereinafter provided. The bills of this series will be
dated January 51, 1957 , and will mature May 2, 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, January 28, 1957 .

gg
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 A. M# NEWSPAPERS,
Thursday, January 24, 1957.

H-1272

The Treasury Department, by this public notice, invites tenders
for $ 1,700,000,000,or thereabouts, of 91-day Treasury bills, for
cash and in exchange for Treasury bills maturing January 31, 1957,
in the amount of $1,601,624,000, 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 31, 1957,
and will mature
May 2, 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, January 28, 1957.
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 bI13s 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

76
RELEASE-A. M.-IWSPAPiB,
' '^mmitmmmmmmmmmmmmmmmmmm.mm^mMimmmm.mmmmwmmm.

The Treasury Department amgfoafcftljait"• frAMl^ thatithe tenders for li;$00,000,00
or thereabouts, of 91-day Treasury-bills *to be dated1 January 31 and to mature Hay 2,

bins,
1957, which were offered on January 24, were opened at the Federal Reserve Banks on
January 28
any e
The details,of this issue are as follows*
£ Total"applied fer - f2f624,QJj5f00Q * otr
o Total accepted ar . 1,700,580,000all(itolude6 $355^*2$,
noncompetitive has
full at the ^mrnSiii priee shewtt below) *
fiaage of accepted eaapetitiv*
High Equivalent rate of disc(5vmt approx.
Low
Average 99.
iss^ (8& nefeattt of the a*6unt'bid for at the 'low criee wae"accented)
Federal Reserve
District jeLjr

Total
Applied for

4ofi49#ooo

Boston
New Toxica3
Philadelphii
Cleveland ~
Richmond j*
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

^,601.000
34,340,000
71,500^000
17,$84,000
46,598,000
86,093 f 000
36,853,000
16,350,000
40,952,000
43,373,000
. 12li.252.000
TOTAL

AflV

#2,624,045,000

Total
Accepted
1^ 30,099,000
1,079,201,000
19,3fa©,000

WijWlto
17,98U,000
l»3,lW,000
231,1*93,000
3I», 853,000
15,935,000
37,952,000
39,373,000
106,702,000
•1,700,580,000

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE A. M. NEWSPAPERS,
Tuesday, January 29, 1957

H-1273

The Treasury Department announced last evening that the tenders for $1,700,000,00<
or thereabouts, of 91-day Treasury bills to be dated January 31 and to mature May 2,
1957, which were offered on January 24, were opened at the Federal Reserve Banks on
January 28.
The details of this issue are as follows:
Total applied for - $2,624,045,000
Total accepted
- 1,700,580,000

(includes $335,225,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids: (Excepting six tenders totaling $1,185,000)
High
Low

- 99•191 Equivalent rate of discount approx. 3»200# per annum
w
- 99.167
II M
w
M
3.295^ "
"

Average

- 99.170

3#283#

(85 percent of the amount bid for at the low price was accepted)
FederaJ. Reserve
District

Total
Applied for

Total
Accepted

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

$ 40,149,000
1,865,601,000
34,340,000
71,500,000
17,984,000
46,598,000
286,093,000
36,853,000
16,350,000
40,952,000
43,373,000
124,252,000
$2,624,045,000

TOTAL

30,099,000
1,079,201,000
19,340,000
44,500,000
17,984,000
43,148,000
231,493,000
34,853,000
15,935,000
37,952,000
39,373,000
106,702,000
$1,700,580,000

- 37Q
or by any local taxing authority.

For purposes of taxation the amount of discount

at which Treasury bills are originally sold by the United States is considered to
be interest.

Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of

195U the amount of discount at which bills issued hereunder are sold is 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. 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 -

mat
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 sub-

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

February 1, 1957

, in cash or other immediately available funds

tgsr
or in a like face amount of Treasury bills maturing
February 7. 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 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,

> •' • I

*rai-;t'<:«i

TREASURY DEPARTMENT
Washington
A. M.
EBK RELEASE/ MHKKIMS NEWSPAPERS,
Thursday, January 51 9 1957

^
/ _
/

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

TREASURY DEPARTMENT
U I M m-inj^ni inn I.I.I ,•.,,. H | ||' • • • • "

•••• '

—

WASHINGTON, D.C.

RELEASE A.M. NEWSPAPERS,
Thursday, January 319 1957.

H-1274

The Treasury Department, by this public notice, Invites tenders
for $1,700,000,000, or thereabouts, of 91-day Treasury bills, for
cash and in exchange for Treasury bills maturing February 7, 1957,
in the amount of $1,600,725,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated February 7, 1951,
and will mature May 9S 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,
Monday, February 4, 1957•
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
v 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 ky
with the bids must be made or completed at the Federal Reserve Bank
on February 7, 1957, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing February 7, 195'
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted In exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether Interest or
gain from the sale or other disposition of the bills, 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

"82

I u1*f

IMMEDIATE RELEASE,
/-/ —~
Thursday. January 31. 1957«
/ J
-.
y*"« • ' »• "'• • •""»•'• '"fcr--:
:;u-: "*r>teti lenders in accordance
— -.
~
.:
«^»
tLikii^ RBdBnBX Reserve Bank
The Treasury Departsent announced today en ^frifwoncr yTOWHWT JWWPniW^
of 3*3/8 percent 1-year Treasury certificates of liiAebt«^4^|tt|^pp 7 •*<!„
February 14, 1958, and 3*1/2 percent 3-year aad 3-month A ^ p t t r a L
*'
aaturing May is, 1960, open to the holders of $7,219 nilUon
fe^^ri{y^)f
certificates maturing February 15 and $£,99? million 2-7/8 percent notef ^
maturing March 15* The new certificate offering will also be open to talffiiti
of the $551 million 1-1/2 percent notes maturing April 1. Cash subscription
will not be received.
^
bills, whether interest or
She new certificates end the new notes will be dated
end exchanges will be made at par, with an adjustment of
cases as of that date* Da the ease of the notes maturing
interest from September 15 to February 15 will be paid to
ing acceptance of the notes. In the ease of the notes matur:
accrued interest from October 1 to February 15 will be paid
following acceptance of these notes. In all cases the
be attached to the notes when surrendered.
nunt at which Treasury*
, i
* t
Interest on the new certificates will be payable August 15, 1957, and
at maturity on February 14, 1956* Interest on the new notes will be payable
on November 15, 1957, end semiannually tlMHPiift4tr*r^e until such bills
She .ulNcriptio* taok.1^1 <**> <m %B%i«^3%i^ **»
open only fbr two days fbr this exchange offerng^gJBpgr etfb^qgtoffla1 tor
either issue aSE&sald to a Federal Reserve Beak or ' & a n ^ y ^ ! ^ I t ^ e ^he
Treasurer of the United States, and placed in the Bail yrf^^^fjfefiftfe
Tuesday, February 5, will be considered as timely.
*Yie. amount actually
y,
. ac maturity during the
1
,4
•-•tW • -ade, as ordinary gain or
The Treasury also announced that it will invite tenders fbr $1,750
million, or thereabouts, of 129-day Treasury byis f^rc&ah and in exchange
fbr the special Treasury bills maturing l^brw^'lS/, J|a j^jll texas of the
offering will be contained in a statement t o > e relr «)lfff jfP^^/ •wnl»« > xned
February 4. Tenders will be opened at 1;30 p.m., Saeten aftandard tiae,
on Thursday, February 7. *'~ "
The new bills will be dated February 15 and will nature Jtone E4, 1957*
These will be tax anticipation bills, acceptable at face value in payment
of income and profits taxes due June 15, 1957. Settlement fbr accepted
tenders
like face
must
Amount
be made
of Treasury
in cash bills
or other
maturing
immediately
oOo February
available
15.
fends or in a

TREASURY DEPARTMENT
WASHINGTON, D.C

MMEDIATE RELEASE,
Thursday, January 51, 1957.

H-1275

The Treasury Department announced today an optional exchange offering
of 3-3/8 percent 1-year Treasury certificates of indebtedness maturing
February 14, 1958, and 3-1/2 percent 3-year and 3-month Treasury notes
maturing May 15, 1960, open to the holders of $7,219 million 2-5/8 percent
certificates maturing February 15 and $2,997 million 2-7/8 percent notes
maturing March 15. The new certificate offering will also be open to holders
of the $531 million 1-1/2 percent notes maturing April 1. Cash subscriptions
will not be received.
The new certificates and the new notes will be dated February 15, 1957,
and exchanges will be made at par, with an adjustment of interest in all
cases as of that date. In the case of the notes maturing March 15, accrued
interest from September 15 to February 15 will be paid to subscribers following acceptance of the notes. In the case of the notes maturing April 1,
accrued interest from October 1 to February 15 will be paid to subscribers
following acceptance of these notes. In all cases the final coupon should
be attached to the notes when surrendered.
Interest on the new certificates will be payable August 15, 1957, and
at maturity on February 14, 1958. Interest on the new notes will be payable
on November 15, 1957, and semiannually thereafter.
The subscription books will open on Monday, February 4, and will remain
open only for two days for this exchange offering. Any subscription for
either issue addressed to a Federal Reserve Bank or Branch, or to the
Treasurer of the United States, and placed in the mail before midnight
Tuesday, February 5, will be considered as timely.

The Treasury also announced that it will invite tenders for $1,750
million, or thereabouts, of 129-day Treasury bills for cash and in exchange
for the special Treasury bills maturing February 15. The full terms of the
offering will be contained in a statement to be released Monday morning,
February 4. Tenders will be opened at 1:30 p.m., Eastern standard time,
on Thursday, February 7.
The new bills will be dated February 15 and will mature June 24, 1957.
These will be tax anticipation bills, acceptable at face value in payment
of income and profits taxes due June 15, 1957. Settlement for accepted
tenders must be made in cash or other immediately available funds or in a
like face amount of Treasury bills maturing February 15.

3
84

The Bureau of Engraving and Printing announced that
acquisition of the new presses will not occasion any
reduction in the presently-employed force of plate printers*
A committee of technical experts which passed on the
acceptability of the new presses and the quality of the
currency printed on them xxmxnulexixm

approved the

purchase unanimously, the committee including representatives
of the plate printers*
The new high-speed press units will provide the Bureau
with substantially increased flexibility of printing
operations in meeting Its currency production requirements*
The Bureau has determined that the spoilage rate in the
operation of the new presses will be lower than for the
oldkr press equipment

now in use*

The Bureau endeavored several years ago to interest
American printing press manufacturers in designing and
developing new presses of the type now being acquired, but
-ffm^^w^o^UMfc'iWa'l because cf the limited market the domestic
manufacturers did not feel wrranted in doing the necessary
research and developmental wcrk at their own expense*

86
I MEDIATE RELIASS

^ > o ^ ^

t. f*?r7

/j ~/xn<*

The Bureau of Sngravlng and Printing of the Treasury
Department has signed a contract with R. Hoe & Go*, Inc.,
of ^©w York Oity under which el$ht new high-speed, rotary
intaglio printing presses to be built by Thomas DeLaRue
A.

& Co., Ltd., of London will be supplied to the Bureau*
The presses will be used for dry-print production of
paper currency, In sheets of J2 notes each* The presses now
in use at the Bureau are limited to wet-process printing*
in sheets of only 18 notes each*
Cost of the new presses will be $1*583*528* *be first
press is to be delivered In 120 days, and the remaining seven
within one year. Their purchase results from more than two
years of experimental operation of a *^00.* press supplied
41£lg by the DeLaRue company. A German-built sample press
also has been tried out experimentally, and is being
purohased separately for further research in multicolor
printing operations.
Bids for the new press equipment were invited by the
Bureau of Engraving and Printing on January k from six
domestic and two foreign manufacturers* The only bid submitted
was that of the Hoe company. B-omsstie pis'ia laill'Uf au lui^rm
infar&cd the#9Sureau that b#qause of the limited marke>^thcjr
did nqjk feel warrwited in doink necessary research and
•elopmpnt work at Their own expanse*

TREASURY DEPARTMENT
_ T . m T , „„„.„_,
IMMEDIATE RELEASE,
Friday, February 1, 1957.

WASHINGTON, D.C.
H-1276

^^mm^fmmmmmwmmi^'mm.mmmmm^a^.^mm^^.^mm.^mmmmmmmmmmmmjmmmm^mmm

The Bureau of Engraving and Printing of the Treasury
Department has signed a contract with R. Hoe & Co., Inc., of
New York City under which eight new high-speed, rotary Intaglio
printing presses to be custom built by Thomas DeLaRue & Co., Ltd.,
of London will be supplied to the Bureau.
The presses will be used for dry-print production of paper
currency, in sheets of 32 notes each. The presses now in use
at the Bureau are limited to wet-process printing, in sheets of
only 18 notes each.
Cost of the new presses will be $1,583*528. The first press
is to be delivered in 120 days, and the remaining seven within one
year. Their purchase results from more than two years of
experimental operation of a sample press supplied by the DeLaRue
company. A German-built sample press also has been tried out
experimentally, and is being purchased separately for.further
research in multicolor printing operations.
Bids for the new press equipment were invited by the Bureau of
Engraving and Printing on January 4 from six domestic and two
foreign manufacturers. The only bid submitted was that of the
Hoe company.
The Bureau endeavored several years ago to interest American
printing press manufacturers in designing and developing new
presses of the type now being acquired, but because of the limited
market the domestic manufacturers did not feel warranted in doing
the necessary research and developmental work at their own expense.
The Bureau of Engraving and Printing announced that acquisition
of the new presses will not occasion any reduction in the
presently-employed force of plate printers. A committee of
technical experts which passed on the acceptability of the new
presses and the quality of the currency printed on them approved
the purchase unanimously, the committee including representatives
of the plate printers.
The new high-speed press units will provide the Bureau with
substantially Increased flexibility of printing operations in meeting its currency production requirements.
The Bureau has determined that the spoilage rate in the
operation of the new presses will be lower than for the older press
equipment now in use.
0O0

-5 -

88
The income derived from Treasury bills, vhether interest or gain from the
sale or other disposition of the bills, does not have any eanqptloa* as such*
and loss from the sale or other disposition of Treasury bills does Hot have soy
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, bat ere exempt from all taxation now or hereafter imposed cm the prla*
cipal or interest thereof by any State, or any of the possessions of the United
States, or by any local taxing authority,

fbr 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 audi bills are excluded from consideration as capital assets.
Accordingly, the Ommmjr of Treasury bills (other than life insurance companies)
issued hereunder need include in his income tax return only the difference
between the price paid fbr such bills, whether on original issue or on subseqpmat
purchase, and the amount actually received either upon sale or redemption at
maturity daring the taxable year fbr which the return la made, as ordinary gain
or loss.
Treasury Department Circular Ho. 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 —

than three decimals, e. g., 99.925. Fractions may not be used* It is urged that
tenders be mads 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 tor their own account, fenders 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
•4

2 percent of the face amount of Treasury bills applied for, unless the tenders
are acconpanied 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
Vi'

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 audi respect shall be
final. Subject to these reservations, noncompetitive tenders fbr $200,000 or Immi
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 Be*
serve Bank on February 15, 1957* in cash or other immediately available funds cr
.»

in a like face amount of Treasury bills maturing February 15, 1957* Cash and ex*
change 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*

KKISASS A. M. NEHSPAPBRS,
Monday, l.bru»xy *, 1957.

8'J

-07'

.mmmmmmmmmmmmSwmmmmmmmmmmmmmmmmmmmnufi » n«ww—mmmmm

The Treasury ©apartment, by this public notice, invitee "tandems fbr
$1,750,000,000, or thermafeoute, of IMMtay treasury bills, fbr cash and in exchange fbr treasury bills maturing Frtfuary 15, 1957* in the amount of
$1,749,900,000, to be issued on a discount basis under competitive and noaeospc*
titive bidding as hereinafter provided, the bills of this series will be designated tax Anticipation Series, they will be dated February 15, 1957, and they
will mature June 24, 1957. they will be accepted at f*vce value in payment of
imeoote and profits taxes doe on June 15, 19S7, and to the extent they are not
presented fbr this purpose the fhce amount of these bills will be payable with*
out interest at maturity* Taxpayers desiring to apply these bills in payment
of June 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 tJnited States, Washington, not more than fifteen lays before June IS* 1957*
and receiving receipts therefbr showing the face amount of the bills ao eurreadared* these receipts may be submitted in lieu of the bills en or before Jta&e 15,
1957, to the District Mrector of Internal Revenue fbr the district in which saA
taxes are payable, the bills will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,900, $800,000 and $1,000,000 (maturity
value).
Tendars will be received at Federal Reserve Banks and Branches up to the
dosing hour* one-thirty o'clock p*m., Eastern Standard time/ Thursday, February 7, 1957. Tenters will not be received at the m&mkK&y Bepartment, Ifaahingtca.
Bach tender mast be fbr an even multiple of $1,000, and in the ease of competitive
tenders the price offered most be expressed on the basis of 100, with not more

TREASURY DEPARTMENT
W A S H I N G T O N , D.C.
RELEASE A.M. NEWSPAPERS,
Monday, February 4, 1957*

H-1277

The Treasury Department, by this public notice, invites tenders
tor $1,750,000,000, or thereabouts, of 129-day Treasury bills, for cash
and in exchange for Treasury bills maturing February 15, 1957, in the
Amount of $1,7^9.900,000, 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 February 15, 1957* and they will mature June 24, 1957.
They will be accepted at face value in payment of income and profits
taxes due on June 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 June 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 June 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 June 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 ofclock p.m., Eastern Standard time,
Thursday, February 7, 1957. 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
benders 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 fori 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
nent
will
Reserve
be made
Banks
by the
andTreasury
Branches,
Department
following of
which
the public
amount announceand price

- 2 range of accepted bids. Those submitting tenders will be advised of
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders,
in whole or in part, and his action in any such respect shall be
final. Subject to these reservations, noncompetitive tenders for
$200,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of
accepted competitive bids. Settlement for accepted tenders in
accordance with the bids must be made or completed at the Federal
Reserve Bank on February 15, 1957, in cash or other immediately
available funds or in a like face amount of Treasury bills maturing
February 15, 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 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 oridinary gain or loss.
Treasury Department Circular No. 4l8, Revised, and this notice,
prescribe the terms of the Treasury bills and govern the conditions
oOo
of their issue. Copies of the circular
may be obtained from any
Federal Reserve Bank or Branch.

The Secretary of the Treasury today transmitted to
Congress a report on the operation and effectiveness of the
Antidumping Act.

The report was made pursuant to Section 5

of the Customs Simplification Act of 1956.
The report analyzes the effectiveness cf the Antidumping
Act and concludes that it has successfully prevented raids
on American markets which could have occu^ed through tbe
tftv~if*V tin T L

jkJh^JtJtmM

^*P

sale in the United States of ^i.apofrfrmA) f oreign products^**-

It waxasC hoTJra&ejL^thali teo.ent__sxp€

m, i£nc^ti5eFh^^war^
r

^ ]^(lri>i$w of^franginV-aPpnomic factors*;

greater certainty, speed and efficiency in the enforcement
of the Act.

Sfeay include:

The report reviews procedures governing the operation
of the Act and summarizes decisions rendered under it during
the past 23 yeacs.

In the preparation of the report the

Treasury Department consulted with the Tariff Commission.
Copies can be obtained from the Appraisement Administra, Bureau of Customs, Washington, D# C.

•3 T

-£<*SJ^J

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Q
- 2 -

The report reviews procedures governing the operation of the
Act and summarizes decisions rendered under it during the past
23 years.

In the preparation of the report the Treasury Department

consulted with the Tariff Commission.
Copies can be obtained from the Division of Appraisement
Administration, Bureau of Customs, Washington, D. C.

>A^_

Q7
^

\ -

-\.AS\

The Secretary of the Treasury today transmitted to Congress
a report on the operation and effectiveness of the Antidumping
Act. The report was made pursuant to Section 5 of the Customs
Simplification Act of 1956.
The report suggests certain steps to be taken both by legislature and procedurally, each aimed at providing for great speed,
efficiency and certainty in enforcement of the Act. Also, after
analyzing the history of administration of the Act, it concludes

fti6&
that ±t has successfully prevented injurious raids on American
markets which could have occurred through the sale in the United
States of under-priced foreign products* Ha commendations made in
the report include:
(1) putting an end to the anomalous situation whereby a finding
can be made under the Antidumping Act, but no dumping duties collected
despite continuance of sales at less than fair value;
(2) conforming value definitions in the Antidumping Act to the
newly^-adopted value definitions in the Customs Simplification Act of 1956j
Aj\f9A<%r-**~ **

(3) continuing to consider determination of dumping price on the
basis of a relatively simple calculation In aiitlunff l.i.u? rather than by
ro*»oonink layjd ujuuu economics;
(4) providing a new invoice form

possible

dumping cases in minimum time;
(5)

continuing to give priority attention to provision at all times

of competent, experienced and sufficientQ$fada*»e»e«B] staff, without which
the objectives of certainty, speed and efficiency are unobtainable.

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE
Friday, February 1, 1957

H-1278

The Secretary of the Treasury today transmitted to Congress a report
on the operation and effectiveness of the Antidumping Act. The report was
made pursuant to Section $ of the Customs Simplification Act of 1956*
The report suggests certain steps to be taken both by legislation and
procedurally, each aimed at providing for greater speed, efficiency and
certainty in enforcement of the Act. Also, after analyzing the history of
administration of the Act, it concludes that the Act has successfully
prevented injurious raids on American markets which could have occurred
through the sale in the United States of under-priced foreign products.
Recommendations made in the report include:
(1) Putting an end to the anomalous situation whereby a finding can
be made under the Antidumping Act, but no dumping duties collected despite
continuance of sales at less than fair value;
(2) Conforming value definitions in the Antidumping Act to the newlyadopted value definitions in the Customs Simplification Act of 1956;
(3) Continuing to arrive at determination of dumping price on the
basis of a relatively simple arithmetical calculation rather than by
involved economic reasoning;
(10 Providing a new invoice form flagging possible dumping cases in
minimum time;
(5) Continuing to give priority attention to provision at all times
of competent, experienced and sufficient administrative staff, without
which the objectives of certainty, speed and efficiency are unobtainable.
The report reviews procedures governing the operation of the Act and
summarizes decisions rendered under it during the past 23 years-, In the
preparation of the report the Treasury Department consulted with the Tariff
Commission*
Copies can be obtained from the Division of Appraisement Administration,
Bureau of Customs, \~shington, D . C .
oOo

RELEASE A. M. NEWSPAPERS,
Tuesday, February 5, 1957

The Treasury Department announced last evening that the tenders for $1*700,000,01
or thereabouts, of 91-day Treasury bills to be dated February 7 and to mature

1957 9 which were offered on January 31, were opened at the Federal Reserve Ba
February k*
The details of this issue are as followst
Total applied for - #2,625,97li,000
Total accepted
- 1,700,188,000

(includes 1320,93*4,000 entered on a
noncompetitive basis and accepted in
full at the average priee shown below)

Range of accepted competitive bidet
High
Low

- 99.216 Equivalent rate of discount approx. 3.102$ per annum
- 99.201*
"
n e e
*
3.11*931 »
•

Average

- 99.208

3.132JJ *

•

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

Total
Applied for

Total
Accepted

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

$
37,580,000
1,758,575,000
3M39,000
101,62l*,OO0
23,619,000
1*5,563,000
288,792,000
39,202,000
17,51*7,000
1*9,901,000
62,657,000
166,075.000

•2,625,97l*,000

$1,700,188,000

TOTAL

27,580,000
963,51*5,000
19,839,000
86,221,000
23,1*19,000
1*3,31*3,000
236,272,000
37,976,000
16,91*7,000
1*7,061*000
1*2,657,000
155.325,000

TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE A« M. NEWSPAPERS,
Tuesday^ February 5, 1957*

H-1279

The Treasury Department announced last evening that the tenders for $1,700,000,000
or thereabouts, of 91-day Treasury bills to be dated February 7 and to mature May 9,
1957, which were offered on January 31, were opened at the Federal Reserve Banks on
February 1*.
The details of this issue are as follows?
Total applied for - $2,625,971*, 000
Total accepted
- 1,700,188,000

(includes $320,93i*,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids?
High - 99.216 Equivalent rate of discount approx. 3.102$ per annum
Low
- 99.201*
"
II it
«
w
3.1i*9#
Average - 99.208 »B nun « 3-132$

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

Total
Applied for

Total
Accepted

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

$
37,580,000
1,758,575,000
3li,839,000
101,62^,000
23,619,000
1*5,563,000
288,792,000
39,202,000
17,51*7,000
U9,901,000
62,657,000
166,075,000

$2,625,97U,000

$1,700,188,000

TOTAL

27,580,000
963,51*5,000
19,839,000
86,22it,000
23,1*19,000
1*3,31*3,000
236,272,000
37,976,000
16,91*7,000
1*7,061,000
h2,657,000
155,325,000

-L**

1 P!
Jrnml -*m

achieve some specific service for our rapidly growing country. Most senators
and congressmen are MenMns increasing gcnrernMnt benefits^ the people
they represent. Thus, the pressure for spending is enormous. There are only

a few people whose daily business it is to make all of these desires and pressur
conform to the pattern of sound finance. That is why we need every day the help
of citizens like you, who are willing to go to bat, not for what you want for
yourselves but for the public good*
One of the great virtues of the Citisens Committee for the Hoover Report

is that you are not content with reaffirming and emphasising general principles!
though you do that. Tou have also performed a great service in studying Just
how these principles are carried out in detail.
The battle is not won by great, broad, sweeping decisions. It is won by
detailed action on thousands of specific problems. The process is: "precept
upon precept, line upon line, here a little aad there a little."

—0O0—

-3-

1 no

In the management of the debt, we have regained freedom of action, and
debt management has supplemented, instead of crippling, the policies of the
Federal Reserve System*

A smaller proportion of the debt is held by the banks

and a larger proportion is in the hands of the people.
As a result of these changes, the purchasing power of the dollar, as measured
by the cost of living, was stabilized within a narrow margin.
Today, under the pressures of huge defense needs and great prosperity —
guns and butter ~ these principles are in danger again. This is the kind of
battle never finally won. The Administration has been able to present to the
Congress a balanced budget for this and the next fiscal year, but by a narrow
'riHHftHUHKh.

margin and at a rising level. This balance is threatened by a wave of spending
mK-jf

proposals 9^iM^-^

fc*-*^p^~~.'

IAA-JL

dp**"**

^^^•••^^•-•---—*

The sound banking and monetary policies of the Federal Reserve System are
under attack from many quarters.
The cost of living index, which reflects the buying power of money, is
moving up again.
The President and the Secretary of the Treasury have stated and re-enphasiMd
the determination of this Administration to do its utmost to maintain financial
stability.
In the Treasury, which has a very special responsibility in this area, ve
are working at this problem every day in a great variety and complexity of ways.
Achieving sound money is no great over-all process; it is an hour-bgHaoaffi
uphill climb.
Pressures for increased spending come from many sources. The safety, in
fact, the very existence of this Nation requires a strong and ever stronger
defense establishment. The objective of most government departments is to

-2-

103

These principles have always been recognised objectives of government
in the United States, and our record in achieving them has been better than
that of almost any other country* Therein lies perhaps the greatest secret
of our growth and prosperity*
We have proved the value of these principles, not only in their observance
but negatively also in their neglect. For at times when we have departed from
them, we have suffered inflation and deflation, boom and bust. Foreign experienoi
is equally convincing*
For a number of years we faltered seriously in following these principles,
and between 1939 and 1952 our currency lost about half of its buying power*
The burden fell on all groups of our people but most unfairly on some who hate
deserved the best from their country — the thrifty, the salaried and professional
people* the pensioner, and* from time to time, the farmer.
In the past four years we have returned toward the more rigorous practices
of these three great principles. Between the fiscal year 1953 and the fiscal
year 1955 expenditures of the Federal Government were cut by |10 billion, from
$71* billion to $61* billion* This* together with rising revenue* financed a tax
cut of $7.1* billion and brought us a balanced budget for two years* with a third
in prospect*
With respect to monetary policy, the Federal Reserve System regained its
freedom to exercise its powers solely for the public welfare rather than to
support the prices of government bonds* The exercise of those powere helped
to check an inflationary movement early in 1953, helped to cushion a decline ia
1951*, and has held back inflationary trends in the past 18 months*

REMARKS BX W. RANDOLPH BBBOESS, UNDER SECRETARY
OF THE TRRAStai, AT LBKJHBOB OF TBE CITIZHS
GCM4ITTEE FOR THE HOOVER REPORT II COiJCMCTKX
WITH THEIR THIRD NATIONAL RSQRGAIIZATICH COiFSBESCB*
AT TBB SHOHEBAM HOTEL, WASHHOTOR, D . G*. *&
12 O O PMf TUESDAY, FEBRUARY 5, 1957.

IQ-i

FINAWJIAL STABILITY A3 A NITICTTAL Rg30ttt«

Financial stability is one of the great foundations of the unparalleled
prosperity and growth of our country* Wis have grown because of the enterprise
of our citizens, and that enterprise is fomded on confidence* confidence that
people can build for the future for theswelves, their children* and their
grandchildren*
The three great foundations of confidence are security from outside attack,
justice, and financial stability* Mot the least of these is financial stability*
For financial instability is the thief and the robber that takes away by inflatloa
the fruit of labor, just as surely as the enemy or the unjust sovereign* Those
who believe this place financial stability at the very head of the list of
economic and social virtues*
The methods of achieving financial stability are not secret or novel. They
are exactly those which Alexander Hamilton* with the support of George Washington
established in this country by almost superhuman wisdom and effort* They are
threefold: a balanced budget, an honored and properly managed debt, and a
banking mechanism dedicated to serve the people's welfare* Today, as then*
these three simple principles are the basis for financial stability*

TREASURY DEPARTMENT
Washington

1 07
^ ^ '!

REMARKS BY W. RANDOLPH BURGESS, UNDER SECRETARY
OP THE TREASURY, AT LUNCHEON OF THE CITIZENS
COMMITTEE FOR THE HOOVER REPORT IN CONJUNCTION
WITH THEIR THIRD NATIONAL REORGANIZATION
CONFERENCE, AT THE SHOREHAM HOTEL, WASHINGTON, D.C.,
12:30 PM, TUESDAY, FEBRUARY 5, 1957.
FINANCIAL STABILITY AS A NATIONAL RESOURCE

Financial stability is one of the great foundations of the
unparalleled prosperity and growth of our country. We have grown
because of the enterprise of our citizens, and that enterprise is
founded on confidence, confidence that people can build for the
future for themselves, their children, and their grandchildren.
The three great foundations of confidence are security from
outside attack, justice, and financial stability. Not the least
of these Is financial stability. For financial instability is the
thief and the robber that takes away by inflation the fruit of
labor, just as surely as the enemy or the unjust sovereign. Those
who believe this place financial stability at the very head of the
list of economic and social virtues.
The methods of achieving financial stability are not secret
or novel. They are exactly those which Alexander Hamilton, with
the support of George Washington, established in this country by
almost superhuman wisdom and effort. They are threefold:
a balanced budget, an honored and properly managed debt, and a
banking mechanism dedicated to serve the people1 s welfare. Today,
as then, these three simple principles are the basis for financial
stability.
These principles have always been recognized objectives of
government In the United States, and our record in achieving them
has been better than that of almost any other country. Therein
lies perhaps the greatest secret of our growth and prosperity.
We have proved the value of these principles, not only in their
observance but negatively also in their neglect. For at times when
we have departed from them, we have suffered inflation and
deflation, boom and bust. Foreign experience is equally convincing.
H-1280

106
For a number of years we faltered seriously in following these
principles, and between 1939 and 1952 our currency lost about half
of its buying power. The burden fell on all groups of our people
but most unfairly on some who have deserved the best from their
country — the thrifty, the salaried and professional people, the
pensioner, and, from time to time, the farmer.
In the past four years we have returned toward the more
rigorous practices of these three great principles. Between the
fiscal year 1953 and the fiscal year 1955 expenditures of the
Federal Government were cut by $10 billion, from $74 billion to
$64 billion. This, together with rising revenue, financed a tax
cut of $7.4 billion and brought us a balanced budget for two years,
with a third in prospect.
With respect to monetary policy, the Federal Reserve System
regained its freedom to exercise its powers solely for the public
welfare rather than to support the prices of government bonds. The
exercise of those powers helped to check an inflationary movement
early in 1953, helped to cushion a decline in 1954, and has held
back inflationary trends in the past 18 months.
In the management of the debt, we have regained freedom of
action, and debt management has supplemented, instead of crippling,
the policies of the Federal Reserve System. A smaller proportion
of the debt is held by the banks and a larger proportion is in the
hands of the people.
As a result of these changes, the purchasing power of the
dollar, as measured by the cost of living, was stabilized within
a narrow margin.
Today, under the pressures of huge defense needs and great
prosperity — guns and butter — these principles are in danger
again. This is the kind of battle never finally won. The
Administration has been able to present to the Congress a balanced
budget for this and the next fiscal year, but by a narrow margin
and at a rising level. This balance is threatened by a wave of
spending proposals coming before the Congress.
The sound banking and monetary policies of the Federal Reserve
System are under attack from many quarters.
The cost of living index, which reflects the buying power of
money, is moving up again.
The President and the Secretary of the Treasury have stated
and re-emphasized the determination of this Administration to do its
utmost to maintain financial stability.
In the Treasury, which has a very special responsibility in
this area, we are working at this problem every day in a great
variety and complexity of ways.

105
- 3Achieving sound money is no great over-all process; it is an
hour-by-hour, uphill climb.
Pressures for Increased spending come from many sources. The
safety, in fact, the very existence of this Nation requires a
strong and ever stronger defense establishment. The objective of
most government departments is to achieve some specific service
for our rapidly growing country. Most senators and congressmen
are subject to pressures for increasing government benefits for
the people they represent. Thus, the pressure for spending is
enormous. There are only a few people whose daily business it *
is to make all of these desires and pressures conform to the
pattern of sound finance. That Is why we need every day the help
of citizens like you, who are willing to go to bat, not for what
you want for yourselves but for the public good.
One of the great virtues of the Citizens Committee for the
Hoover Report is that you are not content with reaffirming and
emphasizing general principles, though you do that. You have
also performed a great service in studying just how these
principles are carried out in detail.
The battle Is not won by great, broad, sweeping decisions. It
is won by detailed action on thousands of specific problems. The
process Is: "precept upon precept, line upon line, here a little
and there a little."

0O0

f
mL. V

We think the changes that we have recommended.>and
others which have been developed by tour staffs^ and in the
committee hearings merit serious consideration as a means
Tt improving the law technically, but no changes should be
made if it appears that any revenue loss would be involved.

*» w ^ ^ *^ Z ^

- 3XU

As. I have said many times, the present rates are too high
and will in the long run seriously hamper our economic growth*
I believe that the most important tax change that could be made
to promote steady economic development would be to reduce the
rates for all taxpayers when our fiscal situation permits.

chief concern now is to avoid any new special relief provisions
for particular groups of taxpayers*

Such relief provisions not

only would complicate a law that is already too complicated, but
they also, in the aggregate, can involve so much revenue loss
as to postpone indefinitely the time when it will be possible to
have general relief for all taxpayers*
My associates and I have been working with your subcommittees
in the consideration of various technical and administrative

relief to taxpayers and would also release funds for the
activity and investment necessary for sustained economic
growth through private initiative.

However, the reduction

of tax rates must give way under present circumstances to
the cost of meeting our urgent national responsibilities,
"For the present, therefore, I ask for continuation
for another year of the existing excise tax rates on
tobacco, liquor, and automobiles, which, under present
law, would be reduced next April 1*

I must also recommend

that the present corporate tax rates be continued for
another year*

It would be neither fair nor appropriate to

allow excise and corporate tax reductions to be made at a
time when a general tax reduction cannot be undertaken."
T he estimated surplus for the fiscal year 1958 is less than
the revenue which will be received during that year from the
legislation which is now before you*

Therefore, if these rates

are not extended, we would have a deficit in 1958*

After we have

two years of balanced budgets as a result of the combined hard
work of the Congress and the Administration, it would be
inexcusable to slip back into deficit financing for next year*
We must have the revenue that a continuation of existing tax
rates would provide*

Mr* Chairman and Members of the Committee on Ways and Means,
I appreciate this opportunity to appear before you in support of
H*R* I4.O9O and H.R* ij.091*

This legislation would extend for one

year the existing excise rates on liquor, tobacco and automobiles
and the tax rate on corporate income.

If this legislation were

not adopted the tax rates would drop on April 1.
The full year effect of the one-year rate extensions would
be slightly more than $3 billion*

$2 billion, $200 million of

this comes from the corporation income tax; $23£ million from
various alcohol taxes; $l8i£ million from the tax on cigarettes;
and $J|3K nii 11 ion from the tax on automobiles and automobile parts
and accessories*
Of the total of more than $3 billion, we estimate that
$186 million will be collected in the current fiscal year; $2
billion, $166 million in the fiscal year 1958; and virtually
all of the rest in the fiscal year 1959*
The President made his recommendation for these rate
extensions in his Budget Message in the following terms:
"It is my firm belief that tax rates are still
too high and that we should look forward to further tax
reductions as soon as they can be accomplished within a
sound budget policy*

Reductions in tax rates would give

The President made his recommendation for these rate
extensions in his Budget Message in the following terms:
"It is my firm belief that tax rates are still
too high and that we should look forward to further
tax reductions as soon as they can be accomplished
within a sound budget policy. Reductions in tax rates
would give relief to taxpayers and would also release
funds for the activity and investment necessary for
sustained economic growth through private initiative.
However, the reduction of tax rates must give way
under present circumstances to the cost of meeting
our urgent national responsibilities.
"For the present, therefore, I ask for
continuation for another year of the existing excise
tax rates on tobacco, liquor, and automobiles, which,
under present law, would be reduced next April 1. 1
must also recommend that the present corporate tax
rates be continued for another year. It would be
neither fair nor appropriate to allow excise and
corporate tax reductions to be made at a time when a
general tax reduction cannot be undertaken."
H-1281

«L i. c

STATEMENT BY TREASURY SECRETARY GEORGE M. HUMPHREY
BEFORE THE HOUSE WAYS AND MEANS COMMITTEE ON H.R.
U090 AND H.R. 4091 (RATE EXTENSION) — WEDNESDAY,
FEBRUARY 6, 1957, 10:00 A.M. E.S.T.

and accessories*
Of the total of more than $3 billion, we estimate that
$186 million will be collected in the current fiscal year;
billion, $166 million in the fiscal year 1958; and virtually
all of the rest in the fiscal year 1959*
The President made his recommendation for these rate
extensions in his Budget Message in the following terms:
"It is my firm belief that tax rates are still
too high and that we should look forward to further tax
reductions as soon as they can be accomplished within a
sound budget policy*

Reductions in tax rates would give

114
STATEMENT BY TREASURY SECRETARY GEORGE M*
HUMPHREY BEFORE THE HOUSE WAYS AND MEANS
COMMITTEE ON H.R. 4090 AND H.R. 4091
(RATE EXTENSION) -- WEDNESDAY, FEBRUARY 6,
1957, 10;00 A.M. E.S.T.
Mr. Chairman and Members of the Committee on Ways and Means:
I appreciate this opportunity to appear before you in support of
H.R. 4090 and H.R. 4091. This legislation would extend for one
year the existing excise rates on liquor, tobacco and automobiles
and the tax rate on corporate income. If this legislation were
not adopted the tax rates would drop on April 1.
The full year effect of the one-year rate extensions would
be slightly more than $3 billion. $2 billion, $200 million of
this comes from the corporation Income tax; $231 million from
various alcohol taxes; $185 million from the tax on cigarettes;
and $436 million from the tax on automobiles and automobile parts
and accessories.
Of the total of more than $3 billion, we estimate that
$186 million will be collected in the current fiscal year;
$2 billion, $166 million in the fiscal year 1958; and virtually
all of the rest In the fiscal year 1959.
The President made his recommendation for these rate
extensions in his Budget Message in the following terms:
"it is my firm belief that tax rates are still
too high and that we should look forward to further
tax reductions as soon as they can be accomplished
within a sound budget policy. Reductions in tax rates
would give relief to taxpayers and would also release
funds for the activity and investment necessary for
sustained economic growth through private initiative.
However, the reduction of tax rates must give way
under present circumstances to the cost of meeting
our urgent national responsibilities.
"For the present, therefore, I ask for
continuation for another year of the existing excise
tax rates on tobacco, liquor, and automobiles, which,
under present law, would be reduced next April 1. 1
must also recommend that the present corporate tax
rates be continued for another year. It would be
neither fair nor appropriate to allow excise and
corporate tax reductions to be made at a time when a
general tax reduction cannot be undertaken."
H-1281

113
J- mi. W

- 2 The estimated surplus for the fiscal year 1958 is less than
the revenue which will be received during that year from the
legislation which is now before you. Therefore, if these rates
are not extended^ we would have a deficit in 1958. After we have
two years of balanced budgets as a result of the combined hard
work of the Congress and the Administration, It would be inexcusable to slip back into deficit financing for next year. We
must have the revenue that a continuation of existing tax rates
would provide.
As I have said many times, the present rates are too high
and will in the long run seriously hamper our economic growth.
I believe that the most important tax change that could be made
to promote steady economic development would be to reduce the
rates for all taxpayers when our fiscal situation permits. My
chief concern now is to avoid any new special relief provisions
for particular groups of taxpayers. Such relief provisions not
only would complicate a law that Is already too complicated, but
they also, in the aggregate, can Involve so much revenue loss
as to postpone indefinitely the time when it will be possible to
have general relief for all taxpayers.
My associates and I have been working with your subcommittees
in the consideration of various technical and administrative
revisions and changes to remove some unintended benefits and
hardships.
We think the changes that we have recommended, and others
which have been developed by your staffs and in the committee
hearings, merit serious consideration as a means of improving the
law technically, but no changes should be made if it appears
that any revenue loss would be involved.
I shall be glad to answer any questions you and the other
members of the Committee may have.

oOo

- 3XEEKAx 11^

or by any local taxing authority. For purposes of taxation the amount of discount
at which Treasury bills are originally sold by the United States is considered to
be interest. Under Sections 454 (b) and 1221 {$) of the Internal Revenue Code of
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•

- 21 1 Q
-L X y

P£
or in a like face amount of Treasury bills maturing February Ik, 1957 . Cash

®5
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. M. A-Y

TREASURY DEPARTMENT
Washington

z it

£&& RELEASE/ mmzm

NEWSPAPERS,
Thursday, February 7, 1957
The Treasury Department, by this public notice, invites tenders for
$1,700,000,000 , or thereabouts, of 91 -day Treasury bills, for cash and

—W—

in exchange for Treasury bills maturing
February 14, 1957
, in the amount of
$1,601,029,000 , to be issued on a discount basis under competitive and non-

W
competitive bidding as hereinafter provided. The bills of this series will be
dated February 14, 1957 , and will mature May 16, 1957 , when the face
m

amount will be payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
one-thirty
closing hour, *w/o f clock p.m., Eastern Standard time, Monday, February 11, 1957 _.
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

11 fl

TREASURY DEPARTMENT

-'_ A. vy

WASHINGTON, D.C.

RELEASE A.M. NEWSPAPERS,
Thursday, February 7, 1957.

H-1282

The Treasury Department, by this public notice, invites tenders
for $1,700,000,000, or thereabouts, of 91-day Treasury bills, for
cash and in exchange for Treasury bills maturing February 14, 1957,
in the amount of $1,601,029,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated February 14, 1957,
and will mature May 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, one-thirty o'clock p.m., Eastern Standard time,
Monday, February 11, 1957.
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 February 14, 1957, in cash or other immediately available funds
or In a like face amount of Treasury bills maturing February 14, 19
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the Issue price of the new
bills.
The Income derived from Treasury bills, whether Interest or
gain from the sale or other disposition of the bills, does not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 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

i "* Q

"»• X sy

RELEASE A . M . NEWSPAPERS,
Friday, February 8, 1957.
'••i

MtmmmmmmXmmmmmmmmmmmmmmmmmmmmmmmmimmmmmmmmmmmmmmm

The Treasury Department announced last evening that the tenders for tl,750,00(1
or thereabouts, of Tax Anticipation Series 129-day Treasury bills to be dated
-1ce of
February 15 and to mature June 2b, 1957, which were offered on February k, were opu
at the Federal Reserve Banks on February 7*

•;he bill^, do&® f>
The details of this issue are as follows*
•ile or other dl
treat; lent, as r:
Total applied for - $2,302,198,000
yie bills are su
Total accepted
- 1,750,048,000
(includes *n6,ldtt^Q0v<iWt^ed on a
noncoapetitlv* basiseand aeeepted in
full at the average priee shown below)
local taxing ,
Range of accepted competitive bids:
*count at which 'B
High
>tes is consider
.it*
t 'approx.
3.292%
per annu
Low
- 98.882 Equivalent rate of disoomnt
3.120^ per
annum
- 96.B2k
*t
" * accrue ixr« t " sue;
f
Average
n
- 98.81i2
a;* and • ,h 3t23i* « »
^aets, Accordu-n^
(3b percent of the amount bid for at the low priee was accepted)
*e tax return oi
n bills, whether
Federal Beserve
Total
.nd the amo 1 fatal
District
Applied for
turity a* Aeeepted
mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm

.mmUtmmmmmmmmmmmmmmmmmmmmmmmmmm

Boston
ffev York
Philadelphia
Clevaland
SiehBond
Atlanta
Chicago
St. Louis
Minneapolie
Kansas City
Dallas
San Francisco

a j ordlnar
| 27,29k,000
$
7,291**000
1,752*586,000
1,252,666,000
22,984,000 vised, and 12#98lt,000
55,019,000 bills and £0^55,019,000
22,*73,OQO rcular m a y &< 22,1TJ,000
31,057,000
29,557*000
160,362,000
1U,962,0Q0
27,981,000
27,9814,000
18,392,000
18,392,000
28,235,000
28,205,000
tl,75O,Ob8,O00
12,302,198,000
27,982,000
27,982,000
127,830,000
122.830,000

TOTAL

IA-

___ _ _^_

mmmmmmmtmmmmmmmmmmiimmmmmmmmm

120
TREASURY DEPARTMENT
WASHINGTON. D C
LEASE A. M. NEWSPAPERS,
iday, February 8, 1957 >

H-1283

The Treasury Department announced last evening that the tenders for $1,750,000,000,
thereabouts, of Tax Anticipation Series 129-day Treasury bills to be dated
bruary 15 and to mature June 2k, 19$7, which were offered on February k, were opened
the Federal Reserve Banks on February 7.
The details of this issue are as follows:
Total applied for - $2,302,198,000
Total accepted
- l,?50,Ol;8,000

(includes $ll6,iil0,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bidss
High - 98•882 Equivalent rate of discount 3»120# per annum
w
Low
- 98,821*
w
w
*
approx* 3.282$ per annum
Average - 98.81*2

3.231$

(3k percent of the amount bid for at the low price was accepted)
Federal Reserve
District

Total
Applied for

Total
Accepted

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

$
27,29^,000
1,752,586,000
22,98U,000
55,019,000
22,1473,000
31,057,000
160,362,000
27,981i,000
18,392,000
28,235,000
27,982,000
127,830,000

$2,302,198,000

$1,750,018,000

TOTAL

7,291,000
1,252,666,000
12,98*4,000
55,019,000
22,173,000
29,557,000
Uil*,962fOOO
27,981*,000
18,392,000
28,205,000
27,982,000
122,830,000

IMMEDIATE RELEASE,

yn%
:
ft - (

trima. Wtourr 6. 18?7
Preliminary figure show that about *9,870 Billion of the
certificate, Baturing February 15 « * « » **•• -attiring March 15
and April 1 haw. b * a exchanged for th. new 5-5/3 pereeat one-year
certificate, ana th. 5-V* peree*t 3-year, 5-BQ»tl» treasury notes.
About $8,*20 Billion of the securities were exchanged for the
new certifies** and $1>50 million for the new note., leading
for cash r*«pption about *875 million of the certificate. Baturing February 15, end *590 million of the n o t « maturing on the
March 15 tax date, and |10 Billion on April 1.
Further detail, regarding the exchange will be announced
next weffc after final reports are received from the Federal Reserve Banks.

I J J
mL.Cm.1mm.

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Friday,ffebvrary8, 1957*
. '•'*• in »i'iiiiu mm*m

, — i mm/mm-»- •

m » _m

H-.12S4

*imo»—»•——^«*••»

Preliminary figures ahow that about $9,870 million
of the certificates maturing February 15 and the notes
maturing March 15 and April 1 have been exchanged for
the new 3-3/8 percent one-year certificates and the
3-* 1/2 percent 3-year, 3-month Treasury notes. About
$8,420 million of the securities were exchanged for
the new certificates and $1,450 million for the new
notes, leaving for cash redemption about $275 million
of the certificates maturing February 15, and $590
million of the notes maturing on the March 15 tax
date, and $10 million on April 1.
Further details regarding the exchange will be
announced next week after final reports are received
from the Federal Reserve Banks#

oOo

H'~ ' V

MCI£1SS A. M. K8WSPAP1RS,
Tuesday, February 12, 1°$7.

Cm S-»

mmmmmmm9mmmwm9mmmmW»mmm99mm9mmm$mmmtbmmm9*9mmmmmmmmmmmimmm

The Treasury Department announced last ewealec that %km tenders for •1,700,000,1

or thereabouts, of 91-day Treaeury bills to fee dated February Hi and to nature fey 1(
1957, which nere offered on Februsry 7, were opened at the Federal Reserve Banks on
February 11.
The details of thia issue are ae follow*
Total applied for
Total aeeepted

|2.718.692.000
1,700,438,000

(Includes $31*1,876,000 entered on a
noaeespetltlwe basis sad aeeepted in
full st the average priee shown below)

Bangc of aeeepted ooapetitlve bidet
High
**^^mmm>

Low
Average

• 99.21*1 Equivalent rate of discount approx. 3.003* par anon
- 99-22*1
•
a a
•
a
3.07Q* » •
- 99.227

•

3.057* "

(7 percent of the esouat bid for st the low priee wee aeeepted)
Federal Reserve
District

fetal
Applied for

Total
Accepted

Boston
mm York
Philadelphia
Cleveland
Richmond
Atlanta
Chisago
St. Louis
Minneapolas
Kansas City
Dallas
San Franeiseo

$
41,867,000
1,842,834,000
33,052,000
$5,266,000
22,776,000
55,6*1,000
269,761,000
31,436,000
20,330,000
53,676,000
79,957,000
171.69a.000

6
25,3*7,000
1,077,446,000
15,777,000
344*1,000
17,352,000
33,256,000
227,567,000
27,931,000
18,214,000
43,342,000
53,967,000
125,636,000

62,716,692,000

•1,700,436,000

Total

/c<h***vC

J. Off

124

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE A. M. NEWSPAPERS,
Tuesday, February 12, 1957*

H-1285

The Treasury Department announced last evening that the tenders for $1,700,000,000,
or thereabouts, of 91-day Treasury bills to be dated February Ik and to mature my 16,
1957, which were offered on February 7, were opened at the Federal Reserve Banks on
February 11.
The details of this issue are as follows j
Total applied for - $2,718,692,000
Total accepted
- 1,700,1*38,000 (includes $31*1,876,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
Range of accepted competitive bids*
High - 99.21*1 Equivalent rate of discount approx. 3.003JS per annua
fl
Low
*** 99.221*
n n
n
n
3.07056 «
Average - 99e227 " nun n 3.0$7%

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

Total
Applied for

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

$ 1*1,867,000
l,862,83l*,000
33,052,000
55,266,000
22,776,000
55,81*1,000
289,761,000
31,1*36,000
20,330,000
53,678,000
79,957,000
171.89U.000

Total

$2,718,692,000

Total
Accepted
%

$
25,3U7,000
1,077,UU6,000
15,777,000
3U,58l,000
17,352,000
33,258,000
227,567,000
27,931,000
18,21U,000
U3,3U2,000
53,987,000
125,636,000

$1,700,1*38,000

CC^y
1V

STATUTORY DEBT LMTATION
AS
.. OF.
„ January 31, 1957

„

Feb. 1 2 , locr,

Washington, .....
.". .....tZ?.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 m a y be held by the Secretary of the Treasury), "shall not exceed in the aggre^te $275,000,000,000
(Act of June 26, 1946; U.S.C., 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." 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 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 m a y be outstanding at any one time
«p27O,OO0,Q00fQ00
OutstandingObligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills $25 , 275 »189 * 000
Certificates of indebtedness.

19 >0231013»000

Treasury notes
Bonds-

35.346.866.000

Treasury
* Savings (current redemp. value)
Depositary.

80 , 822 , 991 • 150
5 6 , 0 1 0 9 1 5 1 *073
261,617*000

Investment series
Special FundsCertificates of indebtedness
Treasury notes.
Total interest-bearing
Matured, interest-ceased

11.576.895.000

Bearing no interest:
United States Savings Stamps
Excess profits tax refund bonds
Special notes of the United States:
Internat'l Monetary Fund series
Total

35,004,064,000
10.327.231.400

$ 79•

&5*068,000

148,671*654,223

45.331.295,400
2 7 3 , 6 4 8 ,0171623
694,356,646

49,175 * 621
943*739
1. 383 .0001000

1.433.119.360
275 • 775,493* 629

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A
»
105*821,000
Matured, interest-ceased
^
899»075
Grand total outstanding ...
„
„
Balance face amount of obligations issuable under above authority

106.720.075
„

2 7 5 .882.213*70**
2 »117 .786.296

January 31. 1957
Reconcilement with Statement of the Public Debt
(Daily Statement of the United States Treasury,
OutstandingTotal gross public debt

"
(Date)
M...^.^JS.^«..2i!

....i§5Z....M.J
276,228,743*825

Guaranteed obligations not owned by the Treasury...
„
Total gross public debt and guaranteed obligationa
«
Deduct - other outstanding public debt obligations not subject to debt limitation...M

...
...
M

IQO» /ZUtUfi
2fO9J35i^O-J$7^0
*T~53 .250 • I"0.

275,882,213,70^
H-1286

Jm C 'm*

STATUTORY DEBT LMTATJON
January 31t 1957

""""""""

W..hlngton,

J2h.lh..mi

Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under authority

......,..,,

temporarily
7

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
$278,000,000,000
OutstandingObligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills $25 , 275 »189 * 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 *023 ,013 »000
35.346.866.000

$ 79*645,068,000

80 ,822 , 991,150
56,010,151*073
26l, 617*000
11.576.895*000

148,671,654,223

35,004,064,000
10.327*231*400

45.331,295,400
273,648,017,623
694,356,646

49,175*621
943*739
1.383.000,000

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A
105,821,000
Matured, interest-ceased
899,075
v
Grand total outstanding
„
Balance face amount of obligations issuable under above authority

1.433*119.360
275*775*493*629

106.720.075
t

„
„

2 7 5 * 8 8 2 »213 *704
2 .117,786»296

January 31. 1957
Reconcilement with Statement of the Public Debt
(Daily Statement of the United States Treasury,
rk

*
(Date)
£^}Mi.&....2i.A...i252

(Date)

OutstandingTotal gross public debt
Guaranteed obligations not owned by the Treasury.
,„....
Total gross public debt and guaranteed obligations.
M
f
Deduct - other outstanding public debt obligations not subject to debt limitation

H-1286

,
„

276,228,743*825
IQD.720,075
27o,335*^^3 *900
453,250,196
275,882,213,70^

1 97
m* H m
legal staff at Headquarters Offlee of the ^uajrtermaeter General,
Washington,

In April, 19UU, he was transferred to the legal

staff of the Director of Materiel at Headquarters of A m y
Service Forces, in Washington.

He was discharged froa service

In 19^6 with the rank of Lieutenant Colonel and awarded the
Legion of Merit.

Following his discharge he returned to his

law firta In Cleveland.
He has been a Director of the Reliance Electric and
Engineering Company.

He was also a Trustee and former

President of Childrenfs Aid Society, and Trustee of Cleveland
Arthritis and Rheumatism Foundation.

He served for six yeass

as a member of the Princeton Graduate Council and as chairman
of the Princeton Philosophy Department Advisary Council.
In 1941 Mr. Rose married Elizabeth Newberry Hitchcock of
Cleveland.

They have two sons. They reside at 2557 North park

Boulevard, Cleveland Heights.

oOo

Secretary Humphrey today announced the appointment of
Nelson P. Rose of Cleveland as Chief Counsel of the Internal
'*- *

Revenue Service.

The Chief Counsel Is an Assistant General
v •
Counsel of the Treasury Department. He will take office on

Mr. Rose has been a partner In the Cleveland law firm of
Jones, Day, Cockley & Reavis, ^specializing In Federal income
tax and corporate law.

The new Chief Counsel, who Is 47, was born In Columbus,
Ohio.

Mr. Rose received his early education at Columbus

Academy and Hotchklss. He graduated from Princeton in 1931 with
an A.B. degree. He was Phi Beta Kappa In his senior year, and
was chairman of the Dally Princetonian, chairman of the
Undergraduate Council, and recipient of the Moses Taylor Pyne
Prize, the highest award conferred by the University*
In 1935 he received his law degree with honors frssi
Harvard Law School, where he was president of Lincoln's Inn
Society1

That same year Mr. Rose Joined the law firm of Jones,

Day, Cockley & Reavis. He was admitted to the bar of Ohio In
1936 with the highest mark of all candidates taking the state
bar exam that year.
Mr. Rose left his law firm temporarily in late 1941
when he Joined the legal staff of the War Production Board as
attorney for the Container Branch.

In May, 19*12 Mr. Rose was

commissioned af 1st Lieutenant In the Army and served on the

TREASURY DEPARTMENT

129

WASHINGTON, D.C.
FOR RELEASE A.M. NEWSPAPERS
Wednesday, February 13, 1957

H-1287

^WSMKV^

Secretary Humphrey today announced the appointment of
Nelson P. Rose of Cleveland as Chief Counsel of the Internal Revenue
Service. The Chief Counsel is an Assistant General Counsel of the
Treasury Department. He will take office on March 15, 1957.
Mr. Rose has been a partner in the Cleveland law firm of Jones,
Day, Cockley & Reavis, and specializes in Federal income tax and
corporate law.
The new Chief Counsel, who is 47, was born in Columbus, Ohio.
Mr. Rose received his early education at Columbus Academy and
Hotchkiss. He graduated from Princeton in 1931 with an A.B. degree.
He was Phi Beta Kappa in his senior year, and was chairman of the
Daily Princetonian, chairman of the Undergraduate Council, and
recipient of the Moses Taylor Pyne Prize, the highest award conferred
by the University.
In 1935 he received his law degree with honors from Harvard Law
School, where he was president of Lincoln's Inn Society. That same
year Mr. Rose joined the law firm of Jones, Day, Cockley & Reavis.
He was admitted to the bar of Ohio in 1936 with the highest mark of
all candidates taking the state bar exam that year.
Mr. Rose left his law firm temporarily in late 1941 when he
joined the legal staff of the War Production Board as attorney for
the Container Branch. In May, 1942 Mr. Rose was commissioned a 1st
Lieutenant in the Army and served on the legal staff at Headquarters
Office of the Quartermaster General, Washington. In April, 1944, he
was transferred to the legal staff of the Director of Materiel at
Headquarters of Army Service Forces, in Washington. He was discharged
from service in 1946 with the rank of Lieutenant Colonel and awarded
the Legion of Merit. Following his discharge he returned to his law
firm in Cleveland.
He has been a Director of the Reliance Electric and Engineering
Company. He was also a Trustee and former President of Children's
Aid Society, and Trustee of Cleveland Arthritis and Rheumatism
foundation. He served for six years as a member of the Princeton
graduate Council and as chairman of the Princeton Philosophy
Department Advisory Council.
In 1941 Mr. Rose married Elizabeth Newberry Hitchcock of
Cleveland. They have two sons. They reside at 2557 North Park
Boulevard, Cleveland Heights.0O0

TREASURY DEPARTMENT

WASHINGTON, D.C.
FOR RELEASE AT 12:00 NOON (EST)
Thursday, February 14, 1957•

H-1288

The Treasury announced today that it has requested the Congress
to enact legislation which will permit an Increase in the interest
rate on new sales of United States Savings Bonds.
The Treasury*s request to the Congress called attention to the
important role that the Savings Bonds program has played in our
national life over the last 22 years, serving to encourage thrift
and to place the Governments finances on a sound basis. Today
about 40 million persons own more than $41 billion of Series E and
H Savings Bonds*
Identical proposed bills were transmitted to the Senate and
the House of Representatives today which would give the Treasury
the same flexibility with regard to interest rates on Savings
Bonds that it has on other types of Treasury bonds. Passage of
the legislation will permit the Treasury to go forward with plans
to offer improved interest rate terms on all Series E and H bonds
sold on or after February 1, 1957•
If the proposed legislation is passed, the Treasury plans to
increase to 3-1/4 percent the interest rate on new E bonds held
to maturity, in place of the present 3 percent. The issue price
and face value of the new E bond will be unchanged but the present
9 years and 8 months maturity will be shortened to 8 years and
11 months. Terms of any extension privilege for the new bonds will
be determined later.
Also, redemption values of the new bond for the early years
will be increased to provide a substantially higher yield to
owners who find it necessary to redeem their bonds before maturity.
The return on the new bond, If held 3 years, would be 3 percent,
compared with 2-1/4 percent at present.
However, present owners of bonds will generally find it
advantageous to continue holding them. For example, a $100 E bond
has a redemption value of $79,20 when held two and a half years.
That bond will earn $20o80 more to reach its full $100 value at
first maturity, and this $20.80 is slightly more than 3-1/4 percent
on $79.20 for the remaining period of 7 years 2 months, compounded
semi-annually.
People holding bonds which have reached maturity and are being
retained under the ten-year extension privilege will also
find it to their advantage to continue holding them. Such bonds
reaching the extension period since May 1952 are already paying

1 Qf
- 2 a full 3 percent interest compounded semi-annually and are
redeemable on demand, and bonds of an earlier period show a still
greater return*
The Treasury also plans to offer, effective February 1, 1957,
a revised 10-year Series H bond with yields generally comparable
to the new E bond and returning 3-1/^ percent If held to
maturity. The new H bond, like the present bond, would pay
interest by check each six months in contrast to the appreciationtype E bond.
On passage of the legislation, all bonds dated February, 1957,
or thereafter would bear the new terms automatically. Existing
stocks of bonds in the hands of the Treasuryfs more than 20,000
E bond Issuing agents would be used until supplies of the new
bonds are available. Since the issue date on the bond would
determine its terms, no purchaser who received an old form of bond
dated February,1957, or thereafter need feel that he should
exchange it for a new bond when it is available — although he may
If he wishes.
The E and H Savings Bonds rank among the best investments In
the world for the average saver. The man who buys a Savings Bond
has something that other bonds do not offer — complete freedom
from market fluctuations. He also has something many other forms
of saving do not have — a guaranteed interest rate over a period
of years. He has the unusual protection of safety against the
physical loss or destruction of his securities; a million separate
bonds have been replaced by the Treasury over the years.
Series E bonds have acquired greater attractiveness in recent
years because of the country1s substantial success in curbing
Inflation. Government fiscal and monetary policies will continue
to be directed toward the twin goals of economic growth and
stability in the value of the dollar.
Because of the more attractive features of the new Series E
and H bonds, the limit on bonds which may be purchased by one
individual in any one year is being reduced from $20,000 to
$10,000 face amount for each series. The Treasury is withdrawing
the present investment-type Series J and K bonds from sale,
effective April 30, 1957. Both of these decisions underline the
Treasury!s desire to emphasize the Savings Bond as a security
designed for millions of average Individual American savers.
oOo

- 3-

100

"msm

'- - -

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
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
1 ^*

2 percent of the face amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank or trust
company.
Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the
Treasury Department of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect shall be
final. Subject to these reservations, noncompetitive tenders for $200,000 or less
without stated price from any one bidder will be accepted in full at the average
price (in three decimals) of accepted competitive bids. Settlement for accepted
tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on February 21, 1957 , in cash or other immediately available funds
or in a like face amount of Treasury bills maturing February 21, 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 princip*
or interest thereof by any State, or any of the possessions of the United States,

1 Q..1
ACKRHft
TREASURY DEPARTMENT
Washington

;

^
"*~

, ^ .,
"^

A. M.
ED(E RELEASE/ OT30H& NEWSPAPERS,
Thursday, February 14, 1957
.
The Treasury Department, by this public notice, invites tenders for
$1,800,000,000 , or thereabouts, of 91 -day Treasury bills, for cash and
fogcjc xfr3£
in exchange for Treasury bills maturing February 21, 1957
, in the amount of
$1,599,827,000 * to be issued on a discount basis under competitive and nonx§55c
competitive bidding as hereinafter provided. The bills of this series will be
dated February 21, 1957 , and will mature May 25, 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,/tax o'clock p.m., Eastern Standard time, Monday, February 18, 1957 .
Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99.925. Fractions may not be used^ It is urged that tenders
be made on the printed forms and forwarded in the special envelopes which will be
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized dealers
in investment securities. Tenders from others must be accompanied by payment of

RELEASE A.M. NEWSPAPERS,
Thursday, February 14, 1957.

H-1289

The Treasury Department, by this public notice, invites tenders
for $1,800,000,000, or thereabouts, of 91-day Treasury bills, for
cash and in exchange for Treasury bills maturing February 21^ 1957,
in the amount of $1,599,827,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated February 21, 1957,
and will mature
May 23, 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, February 18, 1957.
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 I icorporated 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 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
onFebruary 21, 19573 in cash or other immediately available funds
or in a like face amount of Treasury bills maturing February 21, 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 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 v/hich 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

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 Italys

Country of Origin

2 Established
2 TOTAL QUOTA
:

1
Total Imports
i Established 2
Imports
T/
2 Sept. 20, 1956, to 2 33-1/3* of 2 Sept. 20,. 1956
2 Feb. 12, 1957
: Total Quota 2 to Feb. 12, 1957

United Kingdom 4,323,457 95,562 1,441,152 95,562
Canada
239,690
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
22,775
Italy
21.263
5,482,509
358,027
1/ Included in total imports, column 2.
Prepared in the Bureau of Customs.

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

25,443
7,088
1,599,886

22,775
'

118,337

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Thursdayj February lk9 1957*

H-1290

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, 1956. to February 12, 1957
^
suntry of Origin, Established Quota Imports Country of Origin Established Quota
gypt and the Anglo- Honduras ..... . 752
Egyptian Sudan . . .
783,816
Paraguay . . . . . . .
sru
247,952
"Colombia . . . . . . .
ritish India . . . . .
2,003,483
124,876
Iraq . . . . . . . . .
lina
1,370,791
British East Africa . .
•ocico
8,883,259
8,883,259
Netherlands E. Indies.
razil . . . . . . . .
618,723
600,000
Barbados
lion of Soviet
l/Other British W. Indies
Socialist Republics .
475j 124
Nigeria
rgentina
5,203
2/0ther British W. Africa
aiti
237
^2/Other French Africa . .
cuador
9,333
Algeria and Tunisia .
/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
/ Other than Gold Coast and Nigeria.
/ Other than Algeria, Tunisia, and Madagascar.

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

otton. harsh or rough, of less than 3/4ff , Cotton 1-1/8" or more
mports Sept. 20. 19 56, to Feb. 2* 1957
Imports August l t 1956.to Feb. 2. 1957. incl.
stablished Quota (Global) Imports Established Quota (Global) Imports
70,000,000

2,829,932

45,656,420

13,166,065

1?Q
TREASURY DEPARTMENT
IMMEDIATE RELEASE,
Thursday, February 14, 1957.

Washington
H-1290

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 Dcunds)
Cotton under 1-1/8 inches other than rough o'r harsh under 3/4"
Imports Sept. 20. 1956. to February 127l~957
Country of Origin. Established Quota Inserts Country of Origin Established Quota Imports
Egypt and the Anglo- Honduras nco
Egyptian Sudan . . .
733,816

£ £ £ /////. \

B^'indiaY. V.\ ajg;g 124,876* ™ ; ; ; ; • ;

;

™

m -

Hr ' • * •'. v. •. v i;jg;g 8,883,259- SSS.Sr.f^; 7flf8
Brazil . . . . . . .
Union of Soviet
Socialist Republics .
£2t?ina
V^TX'

618,723

Barbados .......
i/bther British W. Indies
475^124
Nigeria . .
5,203
2/0ther British W . M r i c a
"
i/0ther French Africa . .
a HI
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" p„+f„„ i TASM import; Sept. 20, 1 9 V , to Feb. 2, 1 9 ^
^ E T ^ ^ ^ ^ ^
Established Quota (Global) Imports Established Quota (Global) Imports
70,000,000 2,829,932 45,656,420 13,166,065

600,000

' _
21 321
\ 4?n
d'.OOk
689
I

1QW

4„,

~£COTTON WASTES
(In pounds)
^ 1 ^ P JS? "St,^,cotton having a staple of less than 1-3/16 inches in length, COMBER
AnvAMnrr^-i ™??r£ S L ^ V E R . f A S T £ , A K D ROVING WASTE, AETHER OR NOT MANUFACTURED OR OTHERWISE
£t??Sn t
?!" Provided, however, that not more than 33-1/3 percent of the ouotas shall
S .£S S °?i !? 6S °thei* than COmber wastes made from cottons of 1-3A6 inches or more
SitzerlLJ M -D r CSSe' ° f t h & f o l l o w i n g countries; United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italys
r™,n+™ «* n • •
Country of Origin
United Kingdom
Canada
F r a n c e

* f^fblished
s TOTAL QUOTA
4,323,457
239,690
227,420

British India.
69,627
Netherlands . ............
6&,240
S^itzsrifflid . . .. .,
44./33B
3 311
J ? - - 341,^55 - ' "
China. ••
I7V322
Egypt
, .. .,
%X35>
Cuba
6,544
J?™T 7d,J2R 22,775 25,443 22,775
Italy
2J.26T
5,482,509
1/ Included in total imports, column 2.
Prepared in the Bureau of Customs.

Tota

l ImPorts
: Established s
Imports
17
...--,
t Sept. 20, 1956, to : 33-1/3? of : Sept.
2o! 11956
9 56
Feb. 12. 1957
; Total Quota ; to Feb. 12, 1957
95,562
i y, 1 5 2
95j562
239,690
-^41,152
v?,:>°*
-

nc orZ
75

'7
2 2 7/,7
1L'&L

~
7*088
;
w

358,027

'
1,599,886

' '''
118,337

TREASURY DEPARTMENT
Washington

133

H-1291

IMMEDIATE RELEASE,
Thursday. February Ik. 1957

The Bureau of Customs announced today the following preliminaryfigures showing the imports for consumption from January 1, 1957, to
February 2, 1957, 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
Feb. 2, 1957
Gross

80,193

Cigars 190,000,000

Number

319,389

Coconut Oil 1*25,6(30,000

Pound

23,lU0,605'

Cordage 6,000,000

Pound

3U5",659

(Refined
Sugars
(Unrefined
Tobacco 6,175,000

1,90U,000,000

Pound

296,090,687
Pound

l60,li31

Uu
TREASURY DEPARTMENT
Washington

H-1291

IMMEDIATE RELEASE,
Thursday,. February Ik. 1957

The Bureau of Customs announced today the following preliminary
figures showing the imports for consumption from January 1, 1957, to
February 2, 1957, 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

Feb. 2, 1957
Gross

80,193

Cigars 190,000,000

Number

Coconut Oil k2$,600,000

Pound

23,11*0,605"

Cordage 6,000,000

Pound

3U5",659

(Refined
Sugars
(Unrefined
Tobacco 6,175,000

1,90U,000,000

319,389

Pound

296,090,687
Pound

l6o,U31

IMMEDIATE RELEASE
Thursday9 February 14, 1957.

TREASURY DEPARTMENT
Washington
. I4i

H-1292

Commodity

Period and Quantity

Unit :
of
: Imports as oj
Quantity: Feb. 2. 19ft

Tariff-Rate Quotas:
Cream, fresh or sour

Calendar Year

1,500,000

IShole milk, fresh or sour

Calendar Year

3,000,000 Gallon

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

200,000 Head

6,667

Cattle, 700 lbs. or no re each .. Jan. 1, 1957 (other than dairy cows)
Mar. 31, 1957

120,000

Gallon

Head

1,865

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

37,375,636

Tuna fish Calendar Year

U5,U60,000 Pound 2,023,1$*

White or Irish potatoes:
Certified seed
Other

12 mos. from
Sept. 15, 1956

Walnuts Calendar Year

(D
Pbund

Quota Filled

150,000,000 Pound
60,000,000 Pound

82,521,180
1U,027,211

5,000,000 Pound

72,777
189,652

Alsike clover seed

12 mos. from
July 1, 1956

2,500,000 Pound

Peanut oil

12 mos. from
July 1, 1956

80,000,000 Pound

Woolen fabrics

Jan. 1, 1957 •
Dec. 31, 1957

To be
announced

Pound

2,362,885

Pound

Quota Filled

JT)
(2)

12 mos. from
July 1, 1956
Canada
Other Countries

1,709,000

182,280,000
3,720,000

Pound
Pound

(2)
l82,212,9lU

Imports for consumption at the quota rate are limited to 9,3U3,909 lbs. during
the first three months of the calendar year.
Imports through Februaryl2, 1957.

TREASURY DEPARTMENT
Washington

MEDIATE RELEASE
mrsday, February 14, 1957.

H-1292
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 February 2, 1957, inclusive, as follows:

Commodity

Period and Quantity

Unit i
of
: Imports as of
Quantity: Feb» 2, 1957

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

1,500,000

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

3,000,000 Gallon

Cattle, less than 200 lbs. each

200,000 Head

6,667

120,000 Head

1,865

12 mos. from
April 1, 1956

Cattle, 700 lbs. or more each .. Jan. 1, 1957 (other than dairy cows)
Mar. 31, 1957
Fish, fresh or frozen, filleted,
etc., cod, haddock, hake,
pollock, cusk, and rosefish
Calendar Year
Tuna fish Calendar Year

37,375,636

Gallon

Pound

(D
Quota Filled

45,460,000 Pound

2,023,434

150,000,000 Pound
60,000,000 Pound

82,521,180
14,027,211

Walnuts Calendar Year

5,000,000 Pound

72,777

Alsike clover seed 12 mos. from

2,500,000 Pound

189,652

White or Irish potatoes:
Certified seed
,
Other

12 mos. from
Sept. 15, 1956

July 1, 1956
Peanut oil 12 mos. from

80,000,000 Pound
July 1, 1956

Woolen fabrics Jan. 1, 1957 Dec. 31, 1957

To be
announced

Pound

2,362,885

Pound

Quota Filled

12 mos. from
July 1, 1956
Canada
Other Countries

1,709,000

182,280,000
3,720,000

Pound
Pound

(2)
182,212,914

Imports for consumption at the quota rate are limited to 9,3U3,909 lbs. during
the first three months of the calendar year,,
(2) Imports through Februaryl2, 1957.

BOffiDIAES RELEASE,
Wednesday, February 13, l£i

The Treasury Department today announced the results of the current mrsfthm^g* Q J ^
of (a) 5-3/3 percent Treasury Certificates of Indebtedness of Series A-1958 to be dst<
February 15, 1957, due February 14, 1958, open to holders of $7,219,479,000 of 2-sA i
cent Certificates of Indebtedness of Series A-1957 aaafcuring Fsbruary 15, $2,996,574»flfl
of £-7/8 percent Treasury Botes of Series A-1957 maturing March 15, and $531,296,000 C
1-1/E percent Treasury Botes of Series EA-1957 maturing ^ r i l 1, and (b) 3-1/2 pereat
treasury Notes of Series A - 1 9 & to be dated February 15, 1957, due May 15, 1960, o\m
the holders of the certificates maturing February 15 and the notes maturing March 15,
Subscriptions fbr the new issues amounted to $9,867,250,000, leaving $880,099,000 of t
maturing issues fbr cash redemption. Of this amount $295,224,000 are the certificate
maturing February 15, $575,212,000 are the notes maturing March 15 and $9,663,000 art
notes maturing April 1.
founts exchanged vere divided between the tuo new issues and among the several
Federal Reserve Districts and the Treamxry as fbllovs:
5-5/8£ TBEASUHY C^RglFIGAllESS OF «mwwM-o,
-ZSS A-1958
Federal Reserve
A-1957 Ctfs. ex. A-1957 Notes ex.
rA-.L357 Hotes ex. Total exebtag
District
fbr nev ctfs.
fbr nev Ctfs*
fbr nev Ctfs.
fbr Certify
Boston
$
35,736,000
$
72,068,000
$
161,000
$ 107,985,001
lev York
5,694,573,000
736,388,000
506,028,000
6,936,989,001
23,459,000
49,124,000
1,944,000
74,527,O0(
Cleveland
78,325,000
63,197,000
896,000
142,418,001
Richmond
9,503,000
18,029,000
129,000
27,661,001
Atlanta
65,582,000
27,588,000
733,000
93,643,001
Chicago
216,891,000
269,986,000
3,349,000
490,226,001
St* Louis
55,145,000
59,209,000
833,000
115,187,001
Minneapolis
39,539,000
28,472,000
6,524,000
74,535,001
Kansas City
41,032,000
42,764,000
637,000
84,433,001
Dallas
18,207,000
14,336,000
32,545,001
363,000
San Francisco
89,980,000
121,411,000
211,754,001
36,000
26,222,000
4,575,000
50,631,001
TOTAL
*^,6^!6o6
$6,394,194,000
$1,506,6^,600
$8,422,512,ofi
3-l/2f* TREAS0KY BOEBS 0? SERIES A-BW»
• •

Federal Reserve
District
Boston
lev York
Philadelphia
Cleveland
fttchsaond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
San Francisco
Treasury
TOTAL

< • 111

——»•». i

A-1957 Ctfs. ex.
for nev Botes
$ 9,107,000
377,607,000
14,096,000
17,006,000
942,000
8,229,000
41,411,000
17,981,000
6,590,000
9,975,000
4,869,000
8,997,000

l| I

—

— — — — — — M m m

A-!3:37 Botes ex.
fbr acv Hotes
$ 48,871,000
375,648,000
43,199,000
54,144,000
21,354,000
19,707,000
195,452,000
28,689,000
27,479,000
27,942,000
13,070,000
58,583,000
539,000
$914,677,000

Total excbaaf
fbr Botes ,_
$
57,978,001
753,255,001
57,295,00
71,150,00
22,296,00
27,936,00
236,863,00
46,670,00
34,069,01
37,917,<*
17,939,00
67,580!
13,

TREASURY DEPARTMENT
WASHINGTON, D

JDIATE RELEASE,
tesday, February 15, 1957

H-1293

The Treasury Department today announced the results of the current exchange offering
a.) 3-3/8 percent Treasury Certificates of Indebtedness of Series A-1958 to be dated
ruary 15, 1957, due February 14, 1958, open to holders of $7,219,479,000 of 2-5/8 per\ Certificates of Indebtedness of Series A-1957 maturing February 15, $2,996,574,000
>-7/8 percent Treasury Notes of Series A-1957 maturing March 15, and $531,296,000 of
h percent Treasury Notes of Series EA-1957 maturing April 1, and (b) 3-1/2 percent
isury Notes of Series A-1960 to be dated February 15, 1957, due May 15, 1960, open to
holders of the certificates maturing February 15 and the notes maturing March 15.
scriptions for the new issues amounted to $9,867,250,000, leaving $880,099,000 of the
iring issues for cash redemption. Of this amount $295,224,000 are the certificates
iring February 15, $575,212,000 are the notes maturing March 15 and $9,663,000 are the
2s maturing April 1.
Amounts exchanged were divided between the two new issues and among the several
leral Reserve Districts and the Treasury as follows:
5-5/8$ TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES A-1958
Leral Reserve
strict
jton

t York
Lladelphia
iveland
shmond
tanta
Lcago
ILouis
eapolis
as City
lias
n Francisco
easury
TOTAL

A-1957 Ctfs. ex.
for new ctfs.
$
35,736,000
5,694,573,000
23,459,000
78,325,000
9,503,000
65,582,000
216,891,000
55,145,000
39,539,000
41,032,000
18,207,000
89,980,000
26,222,000
$6,394,194", 000

A-1957 Notes ex,
for new Ctfs.
72,068,000
$
736,388,000
49,124,000
63,197,000
18,029,000
27,328,000
269,986,000
59,209,000
28,472,000
42,764,000
14,336,000
121,411,000
4,575,000
$1,506,685,000

EA-1957 Notes ex.
for new Ctfs.
$
161,000
506,028,000
1,944,000
896,000
129,000
733,000
3,349,000
833,000
6,524,000
637,000
363,000
56,000
§521,633,000

Total exchanges
for Certificates
$ 107,965,000
6,936,989,000
74,527,000
142,418,000
27,661,000
93,643,000
490,226,000
115,187,000
74,535,000
84,433,000
32,543,000
211,754,000
50,651,000
$8,422,512,000

5-1/2^ TREASURY NOTES OF SERIES A-1960
cleral Reserve
strict
ston
if York
lladelphia
eveland
shtnond
Lanta
Lcago
• Louis
aneapolis
isas City
Lias
1 Francisco
iasury
TOTAL

A-1957
Holeex.
A-1957
Ctfs.
for new Notes
$ 9,107,000
377,607,000
14,096,000
17,006,000
942,000
8,229,000
41,411,000
17,981,000
6,590,000
9,975,000
4,869,000
8,997,000
15,251,000
*'~30,061,000

s ex.
for new Notes
$ 48,871,000
575,648,000
45,199,000
54,144,000
21,354,000
19,707,000
195,452,000
28,689,000
27,479,000
27,942,000
13,070,000
58,583,000
559,000

Total exchanges
for Notes
57,978,000
$
755,255,000
57,295,000
71,150,000
22,296,000
27,956,000
236,863,000
46,670,000
34,069,000
57,917,000
17,939,000
67,580,000
15,790,000
:n m-wy .7x1.000

" 45FEB4

MEMORANDUM TO M. MRTIM L« UPOftB
The following transactions were made in direct and guaranteed
securities of the Government for Treasury investments and other accounts
during the month of January, 1957J
Purchases $H, 575, 500 .00
Sales 270,000.00
mmmmmtmmmmmmmmmmmmmtmmmmmmm

$U,305,500.00
•""mmmmmmmmmmm^mmmmmmmmmmm
m^mmmmmmmmmmmmmmmimmmmmm

(Sgd) Canes T. Brannan
Chief, Investments Branch
Division of Deposits 4 Investments

TREASURY DEPARTMENT
WASHINGTON, D.C

IMMEDIATE RELEASE,
Wedneoday, January lC, 19DT'.

Yrl&bmr

r'-l2-f)f
i<i*r

During

, market transactions
in direct and guaranteed securities of the

government for Treasury investment and other
accounts resulted in net. purchases by the

y/u,zo*/;yi3o
Treasury Department of

0O0

TREASURY DEPARTMENT

147

WASHINGTON, D.C

IMMEDIATE RELEASE,
Friday, February 15, 1957,

H-1294

During January 1957, market transactions
in direct and guaranteed securities of the
government for Treasury investment and other
accounts resulted in net purchases by the
Treasury Department of $14,305,500,

0O0

148

RELEASE A. 8. NEWSPAPERS,
Tuesdayf February 19, 1957

i l

The Treasury Department announced last evening that the tenders for 11,800,000
or thereabouts, of 91-day Treasury bills to be dated February 21 and to nature May
1957, which were offered on February lk, were opened at the Federal Reserve Banks oi
February 18•
The details of this issue are as follows:
Total applied for - #2,580,255,000
Total accepted
• 1,800,319,000

(includes 1329,797,000 entered on m
noncompetitive basis and aeeepted la
fall at the average price shown below)

Range of accepted competitive bids*
High
Low

* 99.2li6 Equivalent rate of discount approx. 2.983$ per aoni
- 99.188
«
e
s
s
*
3 # 212* » •

Average

- 99.196

•

3.182$ •

•

(56 percent of the amount bid for at the lew price was accepted)
Federal Reserve
District

Total
Applied for

mmmmmmmmmmmmmmmmmmmtmmmmmmmmmmmmmmmmm

mmmmmmmmmmmmmmmmmmmmmmmmmwmmmmm

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

I 38,866,000
1,807,679,000
3l», 779,000
93,650,000
21,836,000
H5,807,000
233,382,000
35,0^,000
11,986,000
55,796,000
1»7,276,000

I5b,l51t.ooo
TOTAL $2,580,255,000

irtil

Total
Aocptad
|
28,866,000
1,113,1419,000
19,779,000
83,650,000
21,836,000
U5,331,000
191,91(2,000
35,O!tlt,000
11,986,000
55,796,000
39,396,000
lS3.27h,0Q0
$1,800,319,000

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE A* M. NEWSPAPERS,

Tuesday, February 19, 1957.

H-1295

The Treasury Department announced last evening that the tenders for $1,800,000,000,
or thereabouts, of 91-day Treasury bills to be dated February 21 and to mature May 23,
1957, which were offered on February Ik, were opened at the Federal Reserve Banks on
February 18.
The details of this issue are as follows;
Total applied for - $2,580,255,000
Total accepted
- 1,800,319,000

(includes $329,797,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids:
High
" L 9# ?io E ^ 1 * ^ * * r a ^ of discount approx. 2.983£ per annum
Low
M
II
- 99.100
BI n
„
3.2122 "
w
Average
- 99.196
«
n
u
n
„
3.182^ *
(56 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
$ 38,866,000
1*807,679,000
3k,779,000
93,650,000
21,836,000
k$,807,000
233,382,000
35,Ol;Ii,000
11,986,000
55,796,000
1*7,276,000
l51j,l5l4,00Q
TOTAL $2,580,255,000

Total
Accepted
$ 28,866,000
1,113,1*19,000
19,779,000
83,650,000
21,836,000
145,331,000
191,9U2,000
35,Ol*li,0OO
11,986,000
55,796,000
39,396,000
1535271.000
$1,800,319,000

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

- 2 -

151
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 sub-

Subject to these reservations, noncompetitive tenders for $200,000 or less

without stated price from any one bidder will be accepted in full at the average
price (in three decimals) of accepted competitive bids.

Settlement for accepted

tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on February 28. 1957

9 in cash or other immediately available funds

or in a like face amount of Treasury bills maturing
and exchange tenders will receive equal treatment.

F ^ p ^ r y 28f 1957

Cash

Cash adjustments will be made

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,

r'"}

TREASURY DEPARTMENT
Washington

\^\

A. M.
BOtt RELEASE/ X E m X E NEWSPAPERS,
Wednesday. February 20. 1957

i
y

The Treasury Department, by this public notice, invites tenders for
$1.800,000,000

, or thereabouts, of

in exchange for Treasury bills maturing
$1,600,093,000

-day Treasury bills, for cash and

February 28, 1957

, in the amount of

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

—w—
competitive bidding as hereinafter provided. The bills of this series will be
dated February 28, 1957
, and will mature
May 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,/taBt o'clock p.m., Eastern Standard time, Monday, February 25, 1957 .•
Tenders will not be received at the Treasury Department, Washington.

Each tender

must be for an even multiple of $1,000, and in the case of competitive tenders •
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99*92$.

Fractions may not be used.

It is urged that tenders

Tenders will be received without deposit from

incorporated banks and trust companies and from responsible and recognized dealers
in investment securities.

Tenders from others must be accompanied by payment of

RELEASE A.M. NEWSPAPERS,
Wednesday, February 20, 1957.

H-1296

The Treasury Department, by this public notice, Invites tenders
for $1,800,000,000, or thereabouts, of 92-day Treasury bills^ for
cash and in exchange for Treasury bills maturing February 28, 1957,
in the amount of $1,600,093,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided9 The bills of this series will be dated February 28, 1957,
and will mature
May 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, February 25, 1957.
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 February 28, 1957, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing February 28, 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 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

- 2 -

The return on the new bond, when held three years, for example, would be 3%
compared with 2-1/4$ at present.
The Treasury also plans to offer, effective February 1, 1957, a revised
10-year Series H bond with yields generally comparable to the new E bond and returning 3-1/4$ if held to maturity.
Because of the more attractive features of the new Series E and H bonds,
and in accordance with our over-all objectives, the limit on bonds which may be
purchased by one individual in any one year would be reduced from $20,000 to
$10,000 face amount of each series.
The E and H Savings Bonds rank among the best investments in the world for
the average saver because of freedom from market fluctuations, a guaranteed
interest rate over a period of years, and the unusual protection of safety against
the physical loss or destruction of his securities. This legislation would permit
the buyers to continue to benefit from these unusual advantages with the assurance
that they are receiving ammo a fair interest rate in relation to other forms of
saving. —^ , y*~
The program will also serve the best interests of the Treasury in dis'tributfl
/^

to millions of our individual citizens a substantial share of the National debt.
I should also like to submit, f*i»' H^W'yissuM'iip, a'nuifoer of tables, which f
A
t&i*&4Bgj^iL shed light on our present problem.

L £z^O~ - /i^-**^^
J

STATELIEST OF W . RANDOLPH BURGESS, UNDER SECRETARY
OF THE TREASURY, BEFORE THE HOUSE WAIS AND 24EANS
COMMITTEE, THURSDAY, FEBRUARY 21, 1957, 10:00 A.M., E.S.T

- re;
mim \J

I am happy to come before your committee to discuss H.R. 4734, introduced
by Yx. Cooper, and H.R. 4735, introduced by Mr. Reed. These bills would increase
the maximum interest rate permitted on United States Savings Bonds.
Today about 40 million persons own more than $41 billion of Series E and H
Savings Bonds. This program has played an important role in our national life
over the past 22 years, serving to encourage thrift and to place the Government's
finances on a sound basis through a wide distribution of the public debt. It is
imperative that the position of these bonds in the savings program of the American
people be continued in full vigor. To do this now requires an adjustment of
interest rates.
The first part of the bill would give the Treasury the same discretion with
regard to interest rates on Savings Bonds that it has had on other types of
Treasury bonds.
ar*-*m£Jt j ? * - ^ The second part of the bill g a M & the^Treasury the right to make any new
terms applicable to bonds purchased since February 1st. Such action is necessary
to encourage bond buyers to continue buying bonds rather than waiting to secure
more favorable terms pending Congressional action.
If the proposed legislation is passed, the Treasury plans to increase to
3-l/4£ the interest on new E bonds held to maturity, in place of the present 3$*
The issue price and face value of the new E bond would be unchanged, but the
present 9 years and 8 months maturity would be shortened to 8 years and 11 months*
Redemption values of the new bond would also be increased for the early year*
to provide a substantially higher yield to owners who redeem their bonds early*

1 zf
-L mJ I

STATEMENT OF W. RANDOLPH BURGESS, UNDER
SECRETARY OF THE TREASURY, BEFORE THE
HOUSE WAYS AND MEANS COMMITTEE, THURSDAY,
FEBRUARY 21, 1957, 10:00 A.M., E.S.T.

I am happy to come before your committee to discuss H.R. 4734,
introduced by Mr. Cooper, and H.R. 4735, introduced by Mr, Reed.
These identical bills would increase the maximum interest rate
permitted on United States Savings Bonds.
Today about 40 million persons own more than $41 billion of
Series E and H Savings Bonds. This program has played an
important role in our national life over the past 22 years,
serving to encourage thrift and to place the Government's finances
on a sound basis through a wide distribution of the public debt.
It is imperative that the position of these bonds in the savings
program of the American people be continued in full vigor. To
do this now requires an adjustment of interest rates.
The first part of the bill would give the Treasury the same
discretion with regard to interest rates on Savings Bonds that
it has had on other types of Treasury bonds.
The second part of the bill would give the Treasury the right
to make any new terms applicable to bonds purchased since
February 1st. Such action is necessary to encourage bond buyers
to continue buying bonds rather than waiting to secure more
favorable terms pending Congressional action.
If the proposed legislation is passed, the Treasury plans to
increase to 3-1/4$ the interest on new E bonds held to maturity,
in place of the present 3%* The issue price and face value of
the new E bond would be unchanged, but the present 9 years and
8 months maturity would be shortened to 8 years and 11 months.
Redemption values of the new bond would also be increased
for the early years to provide a substantially higher yield to
owners who redeem their bonds early. The return of the new bond,
when held three years, for example, would be 3% compared with
2-1/4$ at present.
The Treasury also plans to offer, effective February 1, 1957,
a revised 10-year Series H bond with yields generally comparable
to the new E bond and returning 3-1/*$ If held to maturity.
H-1297

1 c;C
- L SmJ \m/

m. 2 ~

Because of the more attractive features of the new Series E
and H bonds, and in accordance with our overfall objectives, the
limit on bonds which may be purchased by one individual in any
one year would be reduced from $20,000 to $10,000 face amount of
each series.
The E and H Savings Bonds rank among the best investments In
the world for the average saver because of freedom from market
fluctuations, a guaranteed interest rate over a period of years,
and the unusual protection of safety against the physical loss
or destruction of his securities. This legislation would permit
the buyers to continue to benefit from these unusual advantages
with the assurance that they are receiving a fair interest rate
in relation to other forms of saving.
The program will also serve the best Interests of the Treasury
in continuing to distribute to millions of our individual citizens
a substantial share of the National debt.
I should also like to submit, and discuss briefly, a number
of tables, which shed light on our present problem.

0"^
/

^ -

RELEASE A. M. IEWSPAPSRS,
Tuesday9 February 26, 1957*

•

The Treasury Department announced last evening that the tenders for $1,800,000,000
or thereabouts, of 92-day Treasury bills to be dated February 28 and to nature May 31,
1957, which were offered on February 20, were opened at the Federal Reserve Banks on
February 25.
the details of this issue are as follows:
Total applied for ~ $2,71*1,089,000
Total aeeepted
- 1,601,620,000 (includes $298,822,000 entered on
a noncompetitive basis and aeeepted la
full at the average priee shown below)
Range of aeeepted competitive bids: (Excepting two tenders totaling $300,000)
High
Low

99.200 Equivalent rate of discount approx. 3.130$ per annum

•

99.157

3*299$ "

Average

- 99.160

3*288$ "

•

(89 percent of the amount bid for at the low priee was accepted)
Federal Reserve
District

Total
Applied for

Total
Acc.pted

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

I
39,826,000
1,967,1*83,000
W*,868,000
61,283,000
18,819,000
1*6,253,000
267,11*6,000
26,595*000
11,907,000
•5,672,000
1*8,900,000
U2.337.000

$
27,326,000
1,211*, 868,000
29,868,000
51,283,000
15,819,000
U,8143,000
179,976,000
26,595,000
11,507,000
56,672,000
33,900,000
111,963,000

$2,71*1,089,000

$1,801,620,000

TOTAL

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE A. M. NEWSPAPERS,
fgesday, February 26 1 1957 *

N £ > ^ X

H-1298

The Treasury Department announced last evening that the tenders for $1,800,000,000,
or thereabouts, of 92-day Treasury bills to be dated February 28 and to mature May 31,
L957, which were offered on February 20, were opened at the Federal Reserve Banks on
February 25*
The details of this issue are as follows?
Total applied for - $2,71*1,089,000
Total accepted
- 1,801,620,000 (includes $298,822,000 entered on
a noncompetitive basis and accepted in
full at the average price shown below)
Range of accepted competitive bids? (Excepting two tenders totaling $300,000)
?*** - 99.200 Equivalent rate of discount approx. 3*130$ per annum
Low
- 99#l57
"
n
u
n
w
Average - 99.160 « «

n n

t, 3.288$

3.299$ "

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

Total
Applied for

!ost°n,
$ 39,826,000
1
K , ^ ,4
1,967,1*83,000
Philadelphia
2*1*,868,000
Cleveland
61,283,000
Richmond
18,819,000
8111
"J
*
1.6,253,000
ic ag0
~ T <
267,11*6,000
®f* ^ ^
26,595,000
Minneapolis
11,907,000
cit
*£?•
*
65,672,000
8
J*"*
W,900,000
A
San Francisco
li*2,337,000
TOTAL $2,71*1,089,000 $1,801,620,000

Total
Accepted
$ 27,326,000
l,2ll*,868 000
29,868,000
51,283,000
15,819,000
la 81*3 000
179,976,000
26,595,000
11,507,000
5 6 672 000
33,900,000
111,963,000

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE
Tuesday, February 26, 1957

H-1299

Secretary Humphrey today presented the Alexander Hamilton
medal "for distinguished leadership11 In the Treasury Department
to Assistant Secretary Andrew N. Overby9
Mr. Overby has resigned from the Treasury effective February 28,
and will join the First Boston Corporation in New York City as
Vice President and Director.
In making the presentation today, Secretary Humphrey said
that in helping promote Treasury policies in general, and in the
international finance field in particular, Mr. Overby has earned
a reputation for ability and performance which will be hard to
equal.
"The Treasury is deeply Indebted to you for an outstanding
job in helping the Government conduct its affairs in a way best
designed to further the best interests of all the people. You
have done a job for which you may be lastingly proud,
Secretary
Humphrey said,
"It is a pleasure for me to present to you the Alexander
Hamilton medal in recognition of your distinguished leadership in
the Treasury Department," Secretary Humphrey said.
Mr. Overby is the fifth to receive the gold Hamilton medal
which bears a bas-relief portrait of Alexander Hamilton, the first
Secretary of the Treasury.
At a farewell reception Monday night at the Sheraton-Carlton
Hotel, Mr. and Mrs. Overby received a gift of Steuben glass from
present and former Treasury associates. Under Secretary W. Randolph
Burgess also presented to Mr. Overby the Treasury's Savings Bonds
Distinguished Service Award "for leadership" in the United States
Savings Bonds Program.
Mr. Overby, a native of South Dakota, came to the Treasury
in August 1946 as a Special Assistant to the Secretary, and has
been an Assistant Secretary since January 1952.
oOo

VccU^uc/oy, Fe bv***^
^

7
*-7/ ' ^
DRAFT iJliBS^BfiEkSE

C-i

f+ - \ 3oo

.:-m v^/

The Treasury Department announced today that a committee of representatives of the Departments of State, Treasury, and Commerce, and of
the United States Tariff Commission has undertaken a study of the terminology of the duty provisions of the Tariff Act of 1930 relating to watch
movements and parts* The committee has been established to develop reconw
mendations for the revision of the terminology to recognize technological
changes in watch-making since 1930, and to simplify and clarify the provisions in the interests of facilitating administration and establishing
greater certainty of the tariff status of imports*
The committeefs efforts will be directed to seeking means for accomplishing the above-stated purposes while maintaining, to the fullest
extent practicable, the protective incidence of the existing duties on
watch movements and parts at the same general level* Changes in duties
or in the general level of protection afforded domestic industry by the
existing duties, as such, are not within the purview of the committee's
study*
Interested parties having suggestions pertinent to the objectives of
the study are invited to submit them, in quadruplicate, to the Chairman
of the Committee, Mr. John P. Weitzel, Room 3010 Treasury Building,
Washington 2$, D . C , not later than April 1$, 1957.
The Tariff Commission, which is now making a study of the over-all
United States tariff structure with a view to simplification, under the
provisions of section 101 of the Customs Simplification Act of 19$U, as
amended, has advised the Treasuiy Department that the special study of
the watch-duty provisions undertaken by the committee seems desirable*

16
TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE A. M. NEWSPAPERS,
Wednesday, February 27, 1957

H-1300

The Treasury Department announced today that a committee of
representatives of the Departments of State, Treasury, and Commerce,
and of the United States Tariff Commission has undertaken a study of
the terminology of the duty provisions of the Tariff Act of 1930
relating to watch movements and parts. The committee has been
established to develop recommendations for the revision of the
terminology to recognize technological changes in watch-making since
1930, and to simplify and clarify the provisions in the interests of
facilitating administration and establishing greater certainty of the
tariff status of imports.
The committee's efforts will be directed to seeking means for
accomplishing the above-stated purposes while maintaining, to the
fullest extent practicable, the protective incidence of the existing duties on watch movements and parts at the same general level.
Changes in duties or in the general level of protection afforded
domestic industry by the existing duties, as such, are not within
the purview of the committee's study.
Interested parties having suggestions pertinent to the objecttes of the study are invited to submit them, in quadruplicate, to
the Chairman of the Committee, Mr. John P. Weitzel, Room 3010,
Treasury Building, Washington 25* D. C , not later than April 15,
1957.
The Tariff Commission, which is now making a study of the overall United States tariff structure with a view to simplification,
under the provisions of section 101 of the Customs Simplification
Act of 195^ as amended, has advised the Treasury Department that
the special study of the watch-duty provisions undertaken by the
committee seems desirable.

- 3•; C 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 k$h (b) and 1221 {$) of the Internal Revenue Code of
195U the amount of discount at which bills issued hereunder are sold is notconsidered to accrue until such bills are sold, redeemed or otherwise disposed of
and such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between the price paid
for such bills, whether on original issue or on subsequent purchase, and the
amount actually received either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. ItlS, Revised, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue. Copies
of the circular may be obtained from any Federal Reserve Bank or Branch.

- 2 -

2 percent of the face amount of Treasury bills applied for, unless the tenders ai
accompanied by an express guaranty of payment by an incorporated bank or trust
company.
Immediately after the closing hour, tenders will be opened at the Federal Re
serve Banks and Branches, following which public announcement will be made by the
Treasury Department of the amount and price range of accepted bids.

Those sub-

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

March 7, 1957

, in cash or other immediately available funds

——m
or in a like face amount of Treasury bills maturing

March 7, 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 195b«

The bills

TREASURY DEPARTMENT
Washington
A. M.
1 L
X8K RELEASE/ XBKKZKS NEWSPAPERS,
Thursday, February 28, 1957

/ JL^ /}
/
^

*mm^mmm%*mM»

The Treasury Department, by this public notice, invites tenders for

$ 1,800,000,000 , or thereabouts, of 91 -day Treasury bills, for cash a

in exchange for Treasury bills maturing March 7, 1957 • , in the amount

$ 1,600,005,000 , to be issued on a discount basis under competitive an

competitive bidding as hereinafter provided. The bills of this series w
dated March 7, 1957 , and will mature June 6, 1957 , when the face
m

amount will be payable without interest. They will be issued in bearer
and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and
(maturity value).

Tenders will be received at Federal Reserve Banks and Branches up to th
one-thirty
closing hour,/teac o^lock p.m., Eastern Standard time, Monday, March 4, 1957

m
Tenders
not
be multiple
received of
at the
Treasury
Department,
Washington.
tender
must
be will
for an
even
$1,000,
and in
the case of
competitiveEach
tenders

the price offered must be expressed on the basis of 100, with not more

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

be made on the printed forms and forwarded in the special envelopes wh
supplied by Federal Reserve Banks or Branches on application therefor.

Others than banking institutions will not be permitted to submit tender
except for their own account. Tenders will be received without deposit

incorporated banks and trust companies and from responsible and recogn

in investment securities. Tenders from others must be accompanied by pa

IELEASE A.M. NEWSPAPERS,
Thursday, February 28, 1957.

H-1301

The Treasury Department, by this public notice, Invites tenders
'or $1,800,000,000, or thereabouts, of 91-day Treasury bills, for
jash and in exchange for Treasury bills maturing March 7, 1957,
Ln the amount of $±,600,005,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
>rovided. The bills of this series will be dated March 7, 1957,
md will mature
June 6, 1957,
when the face amount will be
>ayable without interest. They will be Issued in bearer form only,
md 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
lp to the closing hour, one-thirty o'clock p.m., Eastern Standard time,
tonday, March 4, 1957.
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
>ffered must be expressed on the basis of 100, with not more than
;hree decimals, e. g., 99.925. Fractions may not be used. It is
lrged 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
;enders except for their own account. Tenders will be received
/ithout deposit from incorporated banks and trust companies and from
•esponsible and recognized dealers in investment securities. Tenders
*rom others must be accompanied by payment of 2 percent of the face
imount of Treasury bills applied for, unless the tenders are
iccompanied by an express guaranty of payment by an incorporated bank
)v trust company.
Immediately after the closing hour, tenders will be opened at the
federal Reserve Banks and Branches, following which public announcelent will be made by the Treasury Department of the amount and price
'ange of accepted bids. Those submitting tenders will be advised of
he acceptance or rejection thereof. The Secretary of the Treasury
xpressly reserves the right to accept or reject any or all tenders
n whole or in part, and his action in any such respect shall be
lnal. Subject to these reservations, non-competitive tenders for
200,000 or less without stated price from any one bidder will be
ccepted 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 Bar
on March 7, 1957,
in cash or other immediately available funds
or in a like face amount of Treasury bills maturing March 7, 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 nei
bills.
The Income derived from Treasury bills, whether Interest or
gain from the sale or other disposition of the bills, does not ha\
any exemption, as such, and loss from the sale or other dispositlc
of Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 1954. The bills are subject
to estate, inheritance, gift or other excise taxes, whether Federa
or State, but are exempt from all taxation now or hereafter impose
on the principal or Interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States Is considered to
be Interest. Under Sections 454 (b) and 1221 (5) of the Internal
Revenue Code of 1954 the amount of discount at which bills Issued
hereunder are sold is not considered to accrue until such bills
are sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets. Accordingly, the
owner of Treasury bills (other than life insurance companies)
Issued hereunder need Include in his income tax return only the
difference between the price paid for such bills, whether on
original Issue or on subsequent purchase, and the amount 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

y \

lQ7

RELEASE A. M. NEWSPAPERS,
Tuesday, March $. 1957.
mmmmmmmmmmmmmmmmmtmmmmmmmmmmmmmmmmmmmmMmmmmmmmmmmmmmmmmm.

The Treasury Department announced last evening that the tenders for $1,600.00),
or thereabouts, of 91-day Treasury bills to be dated March 7 sad to nature June 6, 1
which were offered on February 28, were opened at the Federal Reserve Banks en Marah
The details of this issue are as follows:
Total applied for - 12,768,718,000
Total accepted
- 1,800,389,000

(inoludss'$30?,OS3,OOQ catered on a
noncompetitive basis and accepted in
full at the average uprise shewnJbelbw)

Range of accepted competitive bidet
High
low

- 99.186 Equivalent rate of discount appro*/ 3.22U* per anau
• 99.178

Average

- 99.179

(68 percent of the amount bid for at thedlon crice wae accented} are
Total
Applied for

Federal Reserve
District

Total sj
Accepted te

mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm

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

(

37,5W,ooo
2,000,890,000
37,537,000'
66,052,000
31,1014,000
Ui,762,000

)oU,6?5,ooo
32,ota,000
-13,038,000
39,U87,000
1*9,210,000
112,37l*,QQ0
TOTAL $2,768,718,000

1,239,*>9,000
39,l*6i*,O0Q
U»,799,000
3lJ305,000
10,216,000
11,338,000
31,1*57,000
27,H*2»O0°
75.537,000.
tl,8OO,389,000

TREASURY DEPARTMENT
WASHINGTON. D.C.
ELEASE A. M. NEWSPAPERS,
fresday, March 5» 1957.
The Treasury Department announced last evening that the tenders for $1,800,000,000,

>r thereabouts, of 91-day Treasury bills to be dated March 7 and to mature June 6, 1957,

rtiich were offered on February 28, were opened at the Federal Reserve Banks on March h*
The details of this issue are as follows:
Total applied for - $2,768,718,000
Total accepted
- 1,800,389,000

(includes $309,053,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids:
High - 99.186 Equivalent rate of discount approx. 3*220$ per annum
w
Low
- 99.178
n
n
it
«
3.25256 •
Average - 99.179

« * « « 3.2i*6£ • «

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

Total
Applied for

Total
Accepted

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

*
37,548,000
2,000,890,000
37,537,000
66,052,000
31,104,000
1*4,762,000
304,675,000
32,041,000
13,038,000
39,487,000
49,210,000
112,374,000

$2,768,718,000

$1,800,389,000

TOTAL

21,398,000
1,289,909,000
17,739,000
39,464,000
14,799,000
33,305,000
210,216,000
28,085,000
11,338,000
31,1*57,000
27,11*2,000
75,537,000

- 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 45k (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•

- 2 -

2 percent of the face amount of Treasury bills applied for, unless the tenders i
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 fl
serve Banks and Branches, following which public announcement will be made by th
Treasury Department of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly reserves the right to accept or reject any o
all tenders, in whole or in part, and his action in any such respect shall be
final. Subject to these reservations, noncompetitive tenders for $200,000 or le
without stated price from any one bidder will be accepted in full at the average
price (in three decimals) of accepted competitive bids. Settlement for accepted
tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on March 14. 1957 , in cash or other immediately available fond

BE
or in a like face amount of Treasury bills maturing

March 14, 1957

• Cash

£&
and exchange tenders will receive equal treatment. Cash adjustments will be mad
for differences between the par value of maturing bills accepted in exchange and
the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the
sale or other disposition of the bills, does not have any exemption, as such, an
loss from the sale or other disposition of Treasury bills does not have any
special treatment, as such, under the Internal Revenue Code of 1954. The bills
are subject to estate, inheritance, gift or other excise taxes, whether Federal
or State, but are exempt from all taxation now or hereafter imposed on the princ
or interest thereof by any State, or any of the possessions of the United States

mSXXSOXXX
J.; i

xssss.
TREASURY DEPARTMENT
Ett RELEASE/ MaRKBBt NEWSPAPERS, '
Thursday, March 7, 1957
•
-\m\\s

w
$ 1,599,968,000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated March 14. 1957 , and will mature June 15, 1957 , when the fac
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,C
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
one-thirty
closing hour,/teat o'clock p.m., Eastern Standard time, Monday, March U , 1957
=au

-gg^

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

TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE A.M. NEWSPAPERS,
Thursday, March 7, 1957.

H-1303

The Treasury Department, by this public notice, invites tenders
for $1,800,000,000, or thereabouts, of 91-day Treasury bills, for
cash and in exchange for Treasury bills maturing March 14, 1957,
in the amount of $1,599,968,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated March 14, 1957,
and will mature June 13*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, March 11, 1957.
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 Ba
on March 14, 1957,
in cash or other immediately available fund
or In a like face amount of Treasury bills maturing March 14, 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 ne
bills.
The Income derived from Treasury bills, whether Interest or
gain from the sale or other disposition of the bills, does not ha
any exemption, as such, and loss from the sale or other dispositi
of Treasury bills does not have any special treatment, as such,
under ihe Internal Revenue Code of 1954* The bills are subject
to estate, inheritance, gift or other excise taxes, whether Feder*
or State, but are exempt from all taxation now or hereafter impos<
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 obtainec
from any Federal Reserve Bank or Branch.
0O0

fREASURY DEPARTMENT

WASHINGTON, D.C.

IMMEDIATE RELEASE,
Friday, March 8, 1957*

H-1304

The Treasury Department today made public
a report of monetary gold transactions with foreign governments and central banks for the calendar year 1956. For the year as a whole, the
net inflow of gold into the United States amounted
to $280.2 million, with U. S. gold purchases at
£523 million and U. S. sales, $242.8 million.
A table showing quarterly and annual net trans
actions for 1956, by country, is attached.

70
!

UNITED STATES GOLD TRANSACTIONS WITH FOREIGN COUNTRIES
January 1, 1956 - December 31, 1956
(In millions of dollars at $35 per• ounce)
i
Negative figures represent net sales by the
United States; positive figures, net purchases
First
Second
Third
. Fourth Calendar
Quarter
Quarter
Quarter Quarter
Year
1956
1956
1956
1956
1956
i

Country

$20.1

855.1

540.1
3.4
14.6

|115.3
3.4
14.6

25.0

28.1
-33.8
200.0

28.1
rrance
«•«•••••••»•••••
International Monetary Fund

•.$33*8
25.0

75.0

15.2
-8.0
100.3

United Kingdom.............
2.0
2.0

1.0
Venezuela *«..•••••«•••••«•
Attorney General of the U.S.*

Total

13.1
-.2

^JO./C

15.2
-8.0
100.3

-200.0

29.1
3.0
-200.0

27.1

~ -.2

-•4

13.1
-•2

$94.9

$154.9

$25.2

.$280.2

* Represents Rumanian-owned gold blocked under Executive Order No. 10,644, and
pursuant to Public Law 285, 84th Congress, August 9, 1955, among assets ves
and liquidated, their proceeds to be distributed to American claimants agai
Rumania.

- 4 ~
Another fact we must recognize is that the country's growth calls for
growth in some essential Government services, such as the goods and people goin
through Customs, the volume of letters handled by the Post Office, the air traf
serviced by the Department of Commerce, etc.
Again, the 1958 budget includes raises in recent years in salaries of Fede:
workers, including the Armed Forces, which were essential to keep the*oogvi&c
staffed with competent people. Even so, the losses of many of the best workers
to better-paid private positions is a vssm^ serious drain.
But after all explanations, the budget is still too big for the future besl
good of the citizens of this country. Why, and what can you do?
Aside from defense, the budget is so large because it reflects the pressure
of all groups of the people on the Congress and on the Administration. The
budget is not something the Administration makes up each year out of whole clotl
Mich of it is obligated years before. Mich of it is dictated by the laws the
Congress has passed. All of this is a response to what the people demand.
It would be an interesting and, I suspect, a shocking thing to find how
mary of any American audience are members of some pressure group urging expenditures on the Federal Government. The lobbies in Washington representing these
groups are skilled and powerful and sometimes ruthless.
The Administration is working vigorously every day to find ways to give
the country the protection and the service that are essential. But it needs
the help of every thoughtful citizen.

oOo—

-* "i n
* f *--*.
mim

I ***

By reducing expenditures, the new Administration held the fiscal f54 deficit to
3 billion dollars, and, by fiscal 1956, with the aid of improved revenues from
a growing economy, it had moved the Government into the black. The surplus for
*56 was 1.6 billion dollars, and similar surpluses are expected for both fiscal
!

57 and »58. This is after a tax cut of 7 #4 billion dollars widely distributed

among the people.
But there is a fly in the ointment: these budgets are balanced at high and
now at rising levels.
The budgeted expenditures for 195S come to almost 72 billion dollars. This
is less than the last Truman budget for 1953 of 74-1/2 billion dollars and his
proposed 1954 budget of 78 billion dollars. But it is 7-1/2 billion dollars
above the low point of 64-1/2 billion dollars of 1955•
The 72 billion dollar budget for 1958 is a smaller share of the national
income than even the 64-1/2 billion dollars of 1955, but it is, I believe, too
big for the long-term best interests of the country. It calls for taking from
the people an amount of taxes that hampers economic progress.
This is not a free-wheeling, liberal-handed budget. It comes to the Congre
after the most earnest efforts hy the 3udget Bureau and the President to keep it
down.
About a third of the increase since 1955 is in the military — and that
after many economies in that Department. The cost of new weapons and research
in weapons is^tcraf^n^.g/*-t£ub even more disastrous could be any weakening in
our strength. That strength stands between the free world and chaos. We cannoi
afford to use the meat axe on the military budget, though we must subject it to
ceaseless rigorous examination.

We have a great opportunity today to turn away from the old pattern — to
avoid the inflation and the later deflation. We know how, if we use courage anc
common sense. I!m not referring just to the Government. I'm referring to everj
one — businessmen and consumers just as much as government.
There is one word which seems to me to describe better the kind of action
we need to keep our economic life wholesome and free from inflation; it is the
word "balance•" If we can keep our private and public affairs in balance —
avoiding excesses — we can assure a sound and generous growth.
We all know that is so in the family. We must have balance between spendin
and saving — borrowing and paying debts — so we can have the good things of
life without sleepless nights of worry over how to pay the bills.
It is the same for the Nation; we must keep spending and saving in balance.
That is our problem as a Nation today; we have been spending a little too fast
for our savings. Our debts, private and public, have been going up a little too
fast. That creates price inflation.
To preserve our prosperity without danger of serious interruption, we need
to spend less and save more.
One of the greatest necessities for this country's economic balance is for
the National Government to keep its own affairs in balance. This means a balanc
budget.
We have had some success in achieving this goal. When President Eisenhower
came to Washington, he found the Government facing a deficit for fiscal 1953 of
9-1/2 billion dollars and a prospective deficit for 1954 of 10 billion dollars •

1 7Q
REMARKS BY W. PANDOLPH BURGESS, UNDER SECRETARY
OF THE TREASURY, AT THE ANNUAL SAVINGS AND MORTGAGE
CONFERENCE OF THE SAVINGS AND MORTGAGE DIVISION OF
THE AMERICAN BANKERS ASSOCIATION, AT THE ROOSEVELT
HOTEL, NEW YORK, NBtf YORK, AT 10:00 A.M., E.S.T.,
MONDAY, MIRCH 11, 1957.
SAVINGS AND MONETARY POLICY
mm^mmma^m^mm^m^mi^mmmmmmmmmmmmmm*mmmmm^mmmmmmmmmm^mmMm^9mmmmmmmmmmmmm*mmmmmmm

The United States is today enjoying one of the finest prosperities of its
history. A revival of the principles of economic freedom, under which America
grew to greatness in the past, has helped to create more jobs, more income, and
more leisure, and more education and capacity to appreciate the good things of
life for the American people than they have ever had before. We have shown tha1
free men working together in a free world can provide an abundance — in peace far above the capacity of government-run economies.
The very vigor of our economy, however, brings its own problems. In this
period of high national prosperity, with business and consumer confidence high,
the demands on our economy are greater than ever.
We are, in fact, trying to do just a little more than we have the men and
materials and money to do it with. As evidence, note the advertisements for
engineers and other scientific and technical men in our Sunday newspapers; the
shortages of some types of steel; tighter credit; and the tendency of prices to
rise after several years of stability.
Our privilege today is to enjoy our prosperity. But our responsibility foi
ourselves and our children is to see that it lasts, that it grows steadily
instead of falling into the old, bad pattern of boom and bust. All too often ii
the past, great prosperity has meant inflation followed by deflation.

V ;'

1 0 '•
JL Q «*.

TREASURY DEPARTMENT
Washington
REMARKS BY W. RANDOLPH BURGESS, UNDER SECRETARY
OF THE TREASURY, AT THE ANNUAL SAVINGS AND MORTGAGE
CONFERENCE OF THE SAVINGS AND MORTGAGE DIVISION OF
THE AMERICAN BANKERS ASSOCIATION, AT THE ROOSEVELT
HOTEL, NEW YORK, NEW YORK, AT 10:00 A.M., E.S.T.,
MONDAY, MARCH 11, 1957.
SAVINGS AND MONETARY POLICY
The United States is today enjoying one of the finest
prosperities of Its history. A revival of the principles of
economic freedom, under which America grew to greatness in the past,
has helped to create more jobs, more income, and more leisure, and
more education and capacity to appreciate the good things of life
for the American people than they have ever had before. We have
shown that free men working together in a free world can provide
an abundance — in peace -- far above the capacity of governmentrun economies.
The very vigor of our economy, however, brings its own problems.
In this period of high national prosperity, with business and
consumer confidence high, the demands on our economy are greater
than ever.
We are, in fact, trying to do just a little more than we have
the men and materials and money to do it with. As evidence, note
the advertisements for engineers and other scientific and technical
men in our Sunday newspapers; the shortages of some types of steel;
tighter credit; and the tendency of prices to rise after several
years of stability.
Our privilege today is to enjoy our prosperity. But our
responsibility for ourselves and our children is to see that it
lasts, that it grows steadily instead of falling into the old, bad
pattern of boom and bust. All too often in the past, great
prosperity has meant Inflation followed by deflation.
We have a great opportunity today to turn away from the old
pattern — to avoid the inflation and the later deflation. We
know how, if we use courage and common sense. I'm not referring
just to the Government. ITm referring to everyone — businessmen
and consumers just as much as government.
There is one word which seems to me to describe better the
kind of action we need to keep our economic life wholesome and
free from inflation; it is the word "balance." If we can keep our
H-1305

1 pM

- 2 private and public affairs in balance — avoiding excesses — we
can assure a sound and generous growth.
We all know that is so In the family. We must have balance
between spending and saving — borrowing and paying debts — so
we can have the good things of life without sleepless nights of
worry over how to pay the bills.
It is the same for the Nation; we must keep spending and
saving in balance. That is our problem as a Nation today; we have
been spandir-.£ a little too fast for our savings. Our debts,
private and public, have been going up a little too fast. That
creates price inflation.
To preserre our prosperity without danger of serious
interruption, we need to spend less and save more.
One of the greatest necessities for this countryTs economic
balance is for the National Government to keep Its own affairs in
balance. This means a balanced budget.
We have had some success In achieving this goal. When
President Elsenhower came to Washington, he found the Government
facing a deficit for fiscal 1953 of 9-1/2 billion dollars and
a prospective deficit for 1954 of 10 billion dollars. By reducing
expenditures, the new Administration held the fiscal '54 deficit
to 3 billion dollars, and, by fiscal 1956, with the aid of
improved revenues from a growing economy, It had moved the
Gov/errrnent into the bl^ck. The surplus for *56 was 1.6 billion
dollars, and similar surpluses are expected for both fiscal T57
and r53. This is after a tax cut of 7.4 billion dollars widely
distributed among the people.
But there Is a fly in the ointment; these budgets are
balanced at high and now at rising levels.
The budgeted expenditures for 1958 come to almost 72 billion
dollars,, This is less than the last Truman budget for 1953 of
74-1/2 billion dollars and his proposed 1954 budget of 78 billion
dollars. But it is 7-1/2 billion dollars above the low point of
64-1/2 billion dollars of 1955.
The 72 billion dollar budget for 1958 is a smaller share of the
national income than even the 64-1/2 billion dollars of 1955, but
it is, I believe, too big for the long-term best interests of the
country. It calls for taking from the people an amount of taxes
that hampers economic progress.
This is not a free-wheeling, liberal-handed budget. It comes
to the Congress after the most earnest efforts by the Budget
3ureau and the President to keep it down.

- 3 -

17Q
-L

I ..\m/

About a third of the increase since 1955 is in the military and that after many economies in that Department. The cost of new
weapons and research in weapons is staggering. But even more
disastrous could be any weakening in our strength. That strength
stands between the free world and chaos. We cannot afford to use
the meat axe on the military budget, though we must subject it to
ceaseless rigorous examination.
Another fact we must recognize is that the country!s growth
calls for growth in some essential Government services, such as
the goods and people going through Customs, the volume of letters
handled by the Post Office, the air traffic serviced by the
Department of Commerce, etc.
Again, the 1958 budget includes raises in recent years in
salaries of Federal workers, including the Armed Forces, which
were essential to keep the government staffed with competent
people. Even so, the losses of many of the best workers to
better-paid private positions is a serious drain.
But after all explanations, the budget is still too big for
the future best good of the citizens of this country. Why, and
what can you do?
Aside from defense, the budget is so large because it
reflects the pressures of all groups of the people on the Congress
and on the Administration. The budget Is not something the
Administration makes up each year out of whole cloth. Much of it
is obligated years before. Much of It Is dictated by the laws the
Congress has passed. All of this Is a response to what the people
demand.
It would be an interesting and, I suspect, a shocking thing to
*ind how many of any American audience are members of some
pressure group urging expenditures on the Federal Government. The
lobbies in Washington representing these groups are skilled and
Powerful and sometimes ruthless.
The Administration is working vigorously every day to find
^ys to give the country the protection and the service that are
essential , Bnt.it. needs the help of every thoughtful citizen.

oOo

^Ui-

REIBASE A. M. HEWSPAPERS,
Tuesday, March 12, 19$7.

0 (

The Treasury Department announced last evening that the tenders for $1,800,00
or thereabouts, of 91-day Treasury bills to be dated March 14 and to nature Jum \
1957, which were offered on March 7, were opened at the Federal Reserve Banks on
March 11.
The details of this issue are as follows:
Total applied for - *2,829,716,000
Total accepted
- 1,802,581,000 (includes $357,903,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
Range of accepted competitive bids: (Excepting two tenders totaling |1,800,0(
High
Jtow

- 99*191 Equivalent rate of discount approx. 3.200)1 per am
- 99.180
»
• •
s
•
3.2kkt « i

Average

- 99.181

•

3.23W

(78 percent of the aaount bid for at the low price was accepted)

Federal Reserve
District

Total
Applied for

Total
Aeeepted

Boston
Dew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas CityDallas
San Francisco

$
35,482,000
1,91*8,309,000
3i», 1*98,000
86,659*000
33,958,000
6k,785,000
280,521,000
37,158,000
25,901*, 000
62,005,000

$
22,077,000
1,U»9,699,000
16,176,000
59,1*53,000
23,273,000
40,788,000
237,582,000

Total

3k,il5,ooo
23,60b,000
1*9,565,000

6o,5u,ooo

ia,8i*2,ooo

150,926,000

10l*,l*07,000

•2,829,716,000

$1,802,581,000

•

TREASURY DEPARTMENT
WASHINGTON. D.C.
RELEASE A. M. NEWSPAPEPuS,
Taesday, March 12, 1957.

H-1306

The Treasury Department announced last evening that the tenders for $1,800,000,000,
or thereabouts, of 91-day Treasury bills to be dated March Ik and to mature June 13,
1957, which were offered on March 7, were opened at the Federal Reserve Banks on
March 11.
The details of this issue are as follows:
Total applied for - $2,829,716,000
Total accepted
- 1,802,581,000

(includes $357,903,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids: (Excepting two tenders totaling $1,800,000)
High - 99.191 Equivalent rate of discount approx. 3#200$ per annum
Low
- 99.180
•'
« «
*
«
3.214$
Average - 99.181 " nun n 3.238£ « «
(78 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

$
35,1*82,000
1,91*8,309,000
3l*,l*98,000
86,659,000
33,958,000
61^,785,000
289,521,000
37,158,000
25,90l|,000
62,005,000

$
22,077,000
1,11*9,699,000
16,176,000
59,1*53,000
23,273,000
1*0,788,000
237,582,000
3l*,ll5,000
23,60i*,000
1*9,565,000
1*1,81*2,000
10l*,l*07,000

Total

6o,5n,ooo
150,926,000
$2,829,716,000

$1,802,581,000

IMMEDIATE RELEASE,
Wednesday, March 1 3 , 1 9 5 7 .

TREASURY DEPARTMENT
Washington

^ Q %
Aw

H-1307

The Bureau of Customs announced today preliminary figures showing the import
for consumption of the commodities listed below within quota limitations from the
beginning of the quota periods to March 2, 1957, inclusive, as follows:
Unit
:
of
: Imports a*
Quantity :March 2, ]

Commodity
Tariff-Rate Quotas:
Cream, fresh or sour

Calendar Year

1,500,000

Gallon

Whole milk, fresh or sour

Calendar Year

3,000,000

Gallon

121

Cattle, less than 200 lbs. each

12 mos. from
April 1, 1956

200,000 Head

Cattle, 700 lbs. or more each .. Jan. 1, 1957 (other than dairy cows)
Mar. 31, 1957
Fish, fresh or frozen, filleted,
etc., cod, haddock, hake,
pollock, cusk, and rosefish
Calendar Year

120,000

37,375,636

Tuna fish Calendar Year 1*5,1*60,000
White or Irish potatoes:
Certified seed
Other

12 mos. from
Sept. 15, 1956

Head

Pound

7,751*
5,177

Quota Fille

Pound 3,726,080
150,000,000
60,000,000

Pound
Pound

87,950,880
19,91*8,11*3

Walnuts Calendar Year 5,000,000 Pound

11*5,1*83

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

206,111*

Peanut oil 12 mos. from 80,000,000 Pound
July 1, 1956
Woolen fabrics Calendar Year To be

Pound

3,183,651*

announced
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
1,709,000 Pound
Rye, TJe flour, and rye meal ... 12 mos. from
July 1, 1956
Canada
182,280,000 Pound
Other Countries 3,720,000 Pound
^T5
(2)

Quota Fille<

(2
182,212,911*

Imports for consumption at the quota rate are limited to 9,31*3,909 lbs. durifl
the first three months of the calendar year.
Imports through March 12, 1957.

IMMEDIATE RELEASE,
Wednesday, March 13, 1957*

TREASURY DEPARTMENT
Washington

Km* \mS

H-1307
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 March 2, 1957, inclusive, as follows:

Unit s
of
: Imports as of
Quantity : March 2, 1957

Commodity
Tariff-Rate Quotas:
Cream, fresh or sour

Calendar Year

1,500,000 Gallon

Whole milk, fresh or sour

Calendar Year

3,000,000 Gallon

121

Cattle, less than 200 lbs. each

12 mos. from
April 1, 1956

200,000 Head

7,75U

Head

5,177

Cattle, 700 lbs. or more each .. Jan. 1, 1957 (other than dairy cows)
Mar. 31, 1957
Fish, fresh or frozen, filleted,
etc., cod, haddock, hake,
pollock, cusk, and rosefish
Calendar Year

120,000

Pound

Quota Filled

Pound

3,726,080

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

87,950,880
19,91*8,11*3

Walnuts Calendar Year 5,000,000

Pound

11*5,1*83

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

Pound

206,11U

Peanut oil 12 nos. from 80,000,000
July 1, 1956

Pound

Woolen fabrics Calendar Year To be

Pound

3,183,651*

Pound

Quota Filled

37,375,636

Tuna fish Calendar Year 1*5,1*60,000
White or Irish potatoes:
Certified seed
Other

announced
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
1,709,000
Rye, rye flour, and rye meal ... 12 mos. from
July 1, 1956
Canada
182,280,000
Other Countries 3,720,000

(2)
Pound
Pound

182,212,911*

(IT Imports for consumption at the quota rate are limited to 9,3U3,909 lbs. during
the first three months of the calendar year.
(2) Imports through March 12, 1957.

TREASURY DEPARTMENT
Washington
1 Q:;
«L KJ '*y

IMMEDIATE RELEASE,
Wednesday, March 13, 1957.

H-130b

The Bureau of Customs announced today the following preliminary
figures showing the imports for consumption from January 1, 1957, to
March 2, 1957, 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
March 2, 1957
Gross

130,781*

Cigars 190,000,000

Number

567,600

Coconut Oil 1*25,600,000

Pound

28,208,520

Cordage 6,000,000

Pound

77U,192

(Refined
Sugars
(Unrefined
Tobacco 6,175,000

3,285,71*3
1,901*, 000,000

Pound

U31,987,128
Pound

310,91*0

1 P7

TREASURY DEPARTMENT
Washington

JL \m/ i

IMMEDIATE RELEASE,
Wednesday, March 13j

H-130b

of 1955s

: Established Annual s
:
Quota Quantity s

Commodity

Buttons
Cigars

o o e . . e o c o e . . e . e . . c

0 9 0 9 * 6 .

Coconut Oil
Cordage

. . . € > .

. . . . . . .

a o e . o . . . « « . e o o

. Q O e . e e e . o . . . . . . . *

(Refined ..

807,500
190,000,000
1*25,600,000

Unit
of

% Imports as of
i March 2, 1957

Gross

130,781*

Number

567,600
,cwrvs,

6,000,000

9 . . . . 0 . .

1,901*, 000,000

Sugars
e e . e e . e .

Tobacco *•<,.« e e e o e o e e . s o o .

6,175,000

310,91*0

183
COTTON WASTES
(In pounds)
ITTON CARD STRIPS made from cotton having * staple of less than 1-3/16 inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, 'WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN 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
I

:
Total Imports
I Established s
Imports1/
s Sept. 20, 1956, to § 33-1/32 of : Sept. 20, 1956,
: Mar. 12. 1957
: Total Quota : to March 12. 1957

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
5,482,509 358,027 1,599,886 ' 118,337
1/ Included in total imports, column 2.
Prepared in the Bureau of Customs.

95,562
239,690
22,775
z__

1,441,152

95,562

75,807
22,747
14,796
12,853
— .

25,443
7,088

22,775
-

i P<-1
^ ''

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Wednesday. March 13, 1957*

H-1309

Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the Presidentf-s Proclamation of September 5, 1939, as amended
COTTON (other than linters) (in pounds)
Cotton tinder 1-1/8 inches other than rough or harsh under 3/4"
Imports Sept. 20. 1956. to March 12. 1957
ountry of Origin Established Quota Imports Country of Origin Established Quota Imports
gypt and the Anglo- Honduras ..... . 752
Egyptian Sudan . . .
783,816
Paraguay . . . . . . .
eru
247,952
Colombia . . . . . . .
ritish India . . . . .
2,003,483
124,060
Iraq
#
hina
1,370,791
British East Africa . .
exico
8,883,259
8,883,259
Netherlands E. Indies.
razil . . . . . . . .
618,723
600,000
Barbados
..
nion of Soviet
l/0ther British W. Indies
Socialist Republics .
475,124
Nigeria
rgentina
5,203
2/0ther British W. Africa
aiti
237
,2/Other French Africa . .
cuador
9,333
~
Algeria and Tunisia •
/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
/ Other than Gold Coast and Nigeria.
/ Other than Algeria, Tunisia, and Madagascar.

871
124
195

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

otton. harsh or roxigh. of less than 3/4" Cotton 1-1/8" or more fc
mports Sept. 20. 1956. to March 2. 1957
Imports August 1. 19ft.to March 2. 1957, incl,
Istablished Quota (Global) Imports Established Quota (Global) imports
70,000,000

3,116,002

45,656,420

16,020,643

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,

H-1309

uo^npariav. March 13,_J^2l

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 March 12. 1957
__
Country of Origin,

Established Quota

Imports

Established Quota

Country of Origin

Honduras
Egypt and the Anglo
Paraguay
783,816
Egyptian Sudan •
Colombia . . . . . .
247,952
Peru • • • • • • •
124,060
Iraq ......o.
«
2,003,483
British India . • . o .
British East Africa . .
1,370,791
» . . * . < *
China m .
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
2/0ther French Africa
Haiti • • • • • •
9,333
Algeria &nd 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.
.

752
871
124
195
2,240
71,388

..9»9m9.

Cotton, harsh or rough, of less than 3/4"
Imports Sept. 20. 19 56. to March 2. 1957

Impor

21,321
5,377
16,004
689

Cotton 1-1/8" or more
Imports Au^ugjt 1. 1956.to March 2. 1957, incl,

Established Quota (Global)

Imports

Established Quota (Global)

70,000,000

3,116,002

45,656,420

Imports
16,020,643

COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having* staple of less than 1-3/16 inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN 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
Cuba
Germany
Italy
5,482,509

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

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

:
Total Imports
: Established
: Sept. 20, 1956, to : 33-1/358 of
: Mar. 12, 1957
; Total Quota
95,562
239,690

1,441,152

Imports
Sept. 20, 1956,
to March 12. 1957
95,562

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

22,775

25,443
7.088

22,775

358,027

1,599,886

118,337

STATUTORY DEBT LIMITATION

1Q1

Washington, nT„*<
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 gua
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 ofthis section the current re*
demption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holdei
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) a ha 11 be temporarily increas
by $3,000,000,000.
The following table shows the face amount of obligations outstanding and the face amount which can still be issued urn
this limitation:
Total face amount that may be outstanding at any one time
«|>2f o,QOQ»000|00
OutstandingObligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills $25.875»673f000
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

20,2151674,000
33.939.806.000
80,818,452,100
55§822,960,164'
248 , 352 • 000
11.478*Zkk,000
3511^3 >7651000
10.326.0l6.4Q0

80,031,153.000

148,368,008,264

45.469.781.400
273,868,942,664
636,798,543

48,521,985
939*505
1,262,000,000

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A
107*968,700
Matured, interest-ceased
826,150
v
Grand total outstanding
Balance face amount of obligations issuable under above authority

1*311*461,490
2751817,202,697

108.794.850
M

Reconcilement with Statement of the Public Debt..??.^J!!?S^....?.?.»..«1957
(Date)
(Daily Statement of the United States Treasixy,
.?~E!S^...™.!....i?Jl.Z....JtDate)
OutstandingTotal gross public debt
«
„
Guaranteed obligations not owned by the Treasury.
„
.
.
.
,
.
.
M
Total gross public debt and guaranteed obligations.......
„
Deduct - other outstanding public debt obligations not subject to debt limitation

27*? 1 925.997*54'
2.074*002*45

276,269*160,99
lOtot(yHr.QJ.
276,377*955*^*
T?l»7 jOtjV

275,925,997, &
H-1310

"i Q O

STATUTORY DEBT LIMITATION
AQ np February 28, 1957
AS

y~ w

; ^

Wa.hi»eeo», ^E±}.M??..

Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under authority
f that Act, and the face amount of obligations guaranteed as to principal and interest by the United States (except such guar»
steed obligations as may be held by the Secretary of the Treasury), "shall not exceed In the aggregate $275,000,000,000

y $3,000,000,000.
The following table shows the face amount of obligations outstanding and the face amount which can still be Issued under
lis limitation:
otal face amount that may be outstanding at any one time
$278,000,000,000
OutstandingObligations issued under Second Liberty Bond Act, as amended
IntereBt-bearing:
Treasury bills $251875»6731000
Certificates of indebtedness
Treasury notes

20,215,674,000
33,939,806*000

$ 80,0311153»000

80,818 ,452,100
551822 ,960,164
248 , 352,000
11,478,244,000

148,368,008,264

Bonds-

Treasury
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
:

35•143 *765>000
10,326,016,400

45,469.781*400
273 »868 ,942 ,664
636,798,5^3

48,521,985
939»5Q5
1,262,000,000

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A
107*968,700
Matured, interest-ceased
826,150
v
Grand total outstanding ,m
Balance face amount of obligations issuable under above authority

1,311*461,490
275.817,202,697

108,794,850
9

Reconcilement with Statement of the Public Debt ..3?®.f?D?S^...?.?.?....125x....s....
(Date)
(Daily Statement of the United States Treasury, .?®l?£}S^....?.?.?....i952 # ) w
.
(Date)
A.
)ut8tandingTotal gross public debt
Guaranteed obligations not owned by the Treasury.
f
Total gross public debt and guaranteed obligation*
)educt - other outstanding public debt obligations not subject to Mebt limitation*.

275.925*997*547
2 *074,002 *453

2?6 ,269 »160 .999
l U O « 79*^*O50
276*377*955•849
4 5 1 • 958 *302

275,925,997,5^7
H-1310

- 3-

m* r\ S*\

or by any local taxing authority.

For purposes of taxation the amount of disc<

at which Treasury bills are originally sold by the United States is considered
be interest. Under Sections \x$h (b) and 1221 {$) of the Internal Revenue Code
\9$h the amount of discount at which bills issued hereunder are sold is not
considered to accrue until such bills are sold, redeemed or otherwise disposed
and such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereun
need include in his income tax return only the difference between the price pal
for such bills, whether on original issue or on subsequent purchase, and the
amount actually received either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 4l8, Revised, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue. Copi
of the circular way be obtained from any Federal Reserve Bank or Branch.

- 2 -

Those sub-

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 <
all tenders, in whole or in part, and his action in any such respect shall be
final.

Subject to these reservations, noncompetitive tenders for $200,000 or le

without stated price from any one bidder will be accepted in full at the average
price (in three decimals) of accepted competitive bids.

Settlement for accepted

tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on

March 21, 1957

in cash or other immediately available fund

or in a like face amount of Treasury bills maturing

March 21 # 1957

• Cash

. w.

and exchange tenders will receive equal treatment.

Cash adjustments will be mad

The bills

are subject to estate, inheritance, gift or other excise taxes, whether Federal
or State, but are exempt from all taxation now or hereafter imposed on the princ
or interest thereof by any State, or any of the possessions of the United State*

TREASURY DEPARTMENT
Washington

\
/ _\

/2
- * J)

A. M.
RSR: RELEASE/ J&BttiNS: NEWSPAPERS9
Thursday, March 14, 1957

£5
The Treasury Department, by this public notice, invites tenders for
$1,600,000,000

, or thereabouts, of

—W—

-day Treasury bills, for cash and

in exchange for Treasury bills maturing March 21, 1957
, in the amount
$1,600*310,000 , to be issued on a discount basis under competitive and nontf*

competitive bidding as hereinafter provided.
dated

March 21, 1957

, and will mature

The bills of this series will be
June 20, 1957

, when the ft

amount will be payable without interest. They will be issued in bearer form 01
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, tea/ofclock p.m., Eastern Standard time, Monday, March 18, 1957
m

Tenders will not be received at the Treasury Department, Washington. Each ten(
must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than tta
decimals, e. g., 99*92$. Fractions may not be used.

It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which will
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized dea!
in investment securities. Tenders from others must be accompanied by payment <

RELEASE A.M. NEWSPAPERS,
Phursday, March 14, 1957 *

H-1311

The Treasury Department, by this public notice, Invites tenders
for $ 1,600,000,000* or thereabouts, of 91-day Treasury bills, for
sash and In exchange for Treasury bills maturing March 21, 1957,
Ln the amount of $ 1,600,310,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated March 21, 1957
and will mature June 20, 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, March 18, 1957.
Tenders will not be received at the
rreasury Department, Washington. Each tender must be for an even
nultiple of $1,000, and In the case of competitive tenders the price
Dffered 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
3ranches 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
"rom others must be accompanied by payment of 2 percent of the face
imount of Treasury billls applied for, unless the tenders are
iccompanied by an express guaranty of payment by an Incorporated bank
>r trust company.
Immediately after the closing hour, tenders will be opened at the
federal Reserve Banks and Branches, following which public announcelent will be made by the Treasury Department of the amount and price
'ange of accepted bids. Those submitting tenders will be advised of
-he acceptance or rejection thereof. The Secretary of the Treasury
xpressly reserves the right to accept or reject any or all tenders
n whole or in part, and his action in any such respect shall be
Inal. Subject to these reservations, non-competitive tenders for
200,000 or less without stated price from any one bidder will be
ccepted in full at the average price (in three decimals) of accepted

mm 2

competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Banl
in c
on March 21, 1957,
^sh or other Immediately available funds
or in a like face amount of Treasury bills maturing March 21, 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 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

1 Q7

RELEASE A. M.r NEWSPAPERS,
;
Friday^j|arch 15, 1957 *
The Treasury Department announced today that on Monday, March 18,
it will offer for cash subscription $3 billion, or thereabouts, of
additional amounts of outstanding publie debt issues.1 the offering or
will consist of an additional #750 Million, or thereabouts, of"the * **av<
3-1/2 percent Treasury Motes of Series A-1960, dated and bearing in- tior
terest from February 15, 1957, and due Ifay 15, I960, an* |2,250 million,
or thereabouts, of the 3-3/8 percent Treasury Certificates of Indebtedness of Series A-1958, dated and bearing "interest from Februaryvl5, e**a]
1957, and due February lli, 1958. In addition, up to $100 million of >oset
the notes may be allotted to Government Investment Accounts.^ Both the
issues will be offered at par and accrued interest from February 15/ ' ''*?*
1957, to March 28, 1957. The books will be open only for one day, on
March 18.
Subscriptions for either issue from commercial banks^ whieh fer""d
this purpose are defined as banks accepting demand deposit*, for their
own account, will be received without deposit, but will t»ev&strlet*d
in each case to an amount not exceeding the combined capital, surplus
and undivided profits of the subscribing bank.' A^ payment of 3 percent
of the amount of securities subscribed for must be made en all other"
subscriptions. The new securities may be paid'for bv credit in Treasury
tax and loan accounts.
Commercial banks and other lenders are requested to refrain from
making unsecured loans, or loans collateralized in whole or in part by
the securities subscribed for, to cover the 3 percent deposits required
to be paid when subscriptions are entered.
Any subscription addressed to a Federal Reserve Bank" or Branch/ord
to the Treasurer of the Onited States, and plaeed in the mail before
midnight, March 18, will be considered as timely.

0O0

TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE A. M. NEWSPAPERS,
Friday, March 15, 1957.

H-1312

mmmmmmmmmmmm^mmmmmmmmmmmmmmmmmmmY^mmmmmmmmmAmmmmmmmt^mmmmmmmmmmmmmmmm

The Treasury Department announced today that on Monday,
March 18, it will offer for cash subscription $3 billion, or
thereabouts, of additional amounts of outstanding public debt
issues. The offering will consist of an additional $750
million, or thereabouts, of the 3-1/2 percent Treasury Notes of
Series A-1960, dated and bearing interest from February 15, 1957,
and due May 15, I960, and $2,250 million, or thereabouts, of
the 3-3/8 percent Treasury Certificates of Indebtedness of
Series A-1958, dated and bearing interest from February 15, 1957,
and due February 14, 1958. In addition, up to $100 million of
the notes may be allotted to Government Investment Accounts.
Both issues will be offered at par and accrued interest from
February 15, 1957, to March 28, 1957. The books will be open
only for one day, on March 18.
Subscriptions for either issue from commercial banks, which
for this purpose are defined as banks accepting demand deposits,
for their own account, will be received without deposit, but will
be restricted in each case to an amount not exceeding the
combined capital, surplus and undivided profits of the subscribing
bank. A payment of 3 percent of the amount of securities
subscribed for must be made on all other subscriptions. The new
securities may be paid for by credit in Treasury tax and loan
accounts.
Commercial banks and other lenders are requested to refrain
from making unsecured loans, or loans collateralized in whole
or in part by the securities subscribed for, to cover the
3 percent deposits required to be paid when subscriptions are
entered.
Any subscription addressed to a Federal Reserve Bank or
Branch, or to the Treasurer of the United States, and placed in
the mail before midnight, March 18, will be considered as timely.
oOo

e simple postponement provisions which I have outlined •

The Canadian

Government has reached the same conclusions with regard to its loan to the
United Kingdom made in 1946 under terms similar to those in our Agreement*
If the British availed themselves of the right to postpone, they would do
so simultaneously under the American and Canadian Agreements*
The proposed amendment is a fair and businesslike arrangement* It
comes as close to the spirit of the original agreement as is possible unde:
the present circumstances* I urge that it be approved by your Consulttee«

under what circumstances this relief would be effective.

For five

years, they have/nevertheless rade the payments in full, without
_J.y claiming; what they believe/rto be their right to a waiver.
In 1956, thl$c faced a serious lack of confidence in sterling. *^
They met this by short-term borrowing, te^HBfce* claimed the waiver
under the agreement. \>Ie consulted with them with a view to working
out arrangements to replace the waiver with a limited number of postponements, TfhtfirgSnnri^ffrRri ™^P vn+A^ar+^rYT™***
v^tffr The British have agreed to give up any right
(^cancellation of inter est. Although they firmly believe that they
are entitled to afSJeS^/ai^toat this right would be advantageous
%g them in the*future, they^ have recognized
t to make an objective ^determination under the provisions
of the 1945 agreement. It is also clear that it is not practicable
from anyjtfjPi point of view to handle the sterling balances of for<
countries in the way tftat was anticipated^ iin w

IIWLH^I

juar.

m^f^Ammmm^^
xUi\JUm^^
,':~-.»P^"'

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y?,

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relStltifi

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slhenjm

arrangement

Cached,

'eeinent ca]

>w and b(
icomplish

is to look 1L*€ over andLmJFif

)le thi:

does/iot work/ the

;ne ag:

rent

:ore you,

by youprCommittee,

#**
..**

this has been
je that it be approve*

gly, £tiy curtpbi^rjfe^ of the
d raise

fvailability of thesj
erious problems.

y^^lsoHmi^ywmt

the aggregaij^juollar value of

nit§.& Kingdom w&f^substantially Reduced by the

hese claims

tdi^a: value of the
ling in 19U9, wherfeas the ddilar

[evaluation of
ler^'WM

uBSey;c,o-or^^.^re^

^mh.,

^
i
—
i
mr
Secahdly, the iondit^n, in Section 5(b) relating^fpo the level of
he United Kingdom '^'mte^riational ifigppie also ip/gnLudep as one element
/

of fannual releasies eft payments" from
dei^lrminatiQjg^as fbo trie ai
f
y
I /,;-^
ed would be fulided. This in
he/sterling balanaes ;Miich it was
:.t^e,lf prev<|ji&s" an^- lateral a^fe£c^tion of this condimon, which is
,0*0***''-

IbmSrmre

subj

number of/other serious statistical questions.
, the British have always emphasized, and we concur,

that the spirit of the 19U5 agreement was to provide relief to their
currency by easing their debt servicing problem ,wben i>he pound was
under strain.

They have repeatedly suggested that.the complicated

A
waiver provisions prevented any mutual understanding as to when and

* &*

/ *

fused *d.tfc peet«-war aeenele through ttewNttstast flow #f faretee e«haag<
transactions. The present^geiefcily.eonstttoteeseentlal u*rt$M balancea
and reservee of many countries. Amy elgnl&eaftt curtailment of fee atalli
ability ef these balances eould cause eerleus financial ?rett*»a for the
countries holding jfca i uliirr ee>
these belaaeee mm

It le alee true that the dollar value ef

sharely reduced *p> the devalwetdem ef eterlimg 1m l A ft

whereas the tulue ef the tepsymomta due as U M net af fee ted at all*
;

----- ^he provleiem en the prewar level ef Inserts is alee hard te apply.
, it expressly depends In pert upon a ealeulatlea vt&ak

would tMNNfttfee ensoul •releases er pe|»emtt* f*em the sterling fealantes
whleh, as X have Just indicated, are net m m peeelfcle ef determination. T
thermal* it Is subject to a sector ef sample* statietleal *eaatloas, such i
the difficulty ef adequately measuring price changes la a very large baakt
ef commodities over twenty pears marked hr w

M d inflation.

y ^

could net practice
faeiag serious

a feeling ef
1

ieth **j\

the yimole ?4*

Waited
U the
so siuul^nc

Tb--r W «!
comas am close jto the spirit ejr the original agreement *k\ is peseitte usde
the present circumstances. I urge that it be approved hy\yettr Ceamlttcc.

5
r- r\

!-- L mJ

Under these circumstances there is no practical method to
determine what if any partsof "releases or payments" made
in any year are applicable to the wartime balances as
provided in Section 6(iii).
The balances existing in 19U6 have become con-

- h -

tij\

These provisions have not proved workable, ^p^^^j ^4-^
"^/SLA S

tn, 71uH'Liig Imlaims.

^fS^V*ldtl. *m^mm-

Section 10 of the Agreement iK>1^f^toibBiil>7r *!**

intention to make certain arrangements with her sterling creditors
with regard to the balances then outstanding. Part of the balances
were to be made fully available at once and another part were to be
"adjusted" or written off as a contribution by the creditors to the
settlement of wartime indebtedness. A third portion of the balances
were to be released by installments over a period of years beginning
in 195>1, the first year in which payments were to begin on our loan.
Sterling balances thus scheduled would be a clearly identifiable debt
and releases or payments thereon would also be identifiable. Despite
vigorous efforts by the United Kingdom, a settlement of this kind did
not prove feasible.
At the time the agreement came into effect on July 1$, 19p6, the
sterling holdings of foreign countries covered by Section 6(iii) amounted
to approximately $12 billion. They were held by many countries throughou"
the "world. For most of these countries their sterling holdings represented their principal, if not their only, significant international
assets.
The holders of these balances had felt war-time shortages of international commodities for a number of years, and looked upon these holding
of sterling as a reserve to be used to meet their heavy post-war requirements of goods and services. Consequently they were ndtJp*
write them off or to freeze \ • —

in a funding arrangement^

~,r»-.«W*M'

Amwv*~

'*' .-I-

.** r^\ ;"•"
t
• *

iL- W

- 3The proposal before you would replace the waiver provisions with
a simple and clearly expressed authorization for the United Kingdom
to postpone up to seven installments of principal and interest under
the Financial Agreement and tne related settlements. The first of
any such deferred installments would be paid in the year 2001 and ..
the others annually thereafter, in qrd§£*— 5fi-additidn, the if

UW" uU*U&^tj> fr****»r<+S
December 31* 1956^. Uould not b e ^ n n

but would be

deferred until after the other payments under tne Agreement have been

completed. Interest would be paid annually on each deferred installm

In short, the provision for forgiveness of interest in certain circum
stances would be replaced by an arrangement under which the United
States would be entitled to receive ultimate payment in full of both
interest and principal of the loan.
The provisions in the Agreement dealing with the waiver of interest

which would be replaced under this proposal are Sections $ and 6(iii)
iertfi^t Section $ provj.

United Kingdom may obtain a
l

waiver of interest when!

•

WQMJMMfl-JXUJ-iil •! not

sufficient to meet its pre-war level of imports, adjusted to current

prices. Section 6(iii) specifies, however, that waiver will not be pe

mitted in arra xeay unless "releases or payments" of sterling balance
u$^t before the datg of the Agreement are reduced proportionately /
-«:s3B»cMS*«SKiM*»!l««!W9«*****,?

UUjf 1A lUIPJWLf* Jim ether words, in 1956, when inter*
was^about 66 percent of the amount due us, the amount which could be
on the remaining 19b6 sterling balances due from the United Kingdom
eign countries would have had te be cut down by 60 percent*

- 2-

r*- ,-«^ ^
t' L;r*

of the interes^portion ($81.6 million) of the payimniiniatatg'mni December 31
19$&l ana set that amount aside pending consultations. There followed
discussions and consideration by representatives of the United Kingdom
and the United States looking to appropriate modifications of the
language of the 19ii5 Agreement, the modifications being designed to
carry out the spirit of the original document.
The Anglo-American Financial Agreement was signed on December 6,
19h$, and was approved by the Congress after full debate on July 1$,
19U6. The Agreement authorized a 50-year loan to the United Kingdom
of 03-3/i-l. billion at 2 percent .interest. Repayment was to be made in
mJrtHML
equal annual installments of £L19^336,2$O09&tfrcovering both principal and
A
interest, beginning December 31? 1951- A settlement of lend-lease and
surplus property obligations in the amount of approximately $650 million
on the same terras was also made on December 6, 19k$* with annual installments of about $19 million. The total annual installment of principal
and interest is ^138.h million. Under these arrangements the United
Kingdom has paid J3U8.U million in principal and $U2k*6 million in interei
representing payment in full of installments due in 1951-55* and the
principal installment for 1956.
It has been evident for several years that the applicability of the
waiver clauses is not now clear, because of changes in conditions since
the time when the Agreement was signed. Cn the other hand, the spirit
of the Agreement, that the United Kingdom should have some relief when
its international exchange situation so warrants, is perfectly plain.

c* •

llismbci'j uf biie OuiiuinJLfaUui^
President Eisenhower sent to the Congress on l

a message

transmitting an amendment to the Anglo-American Financial Agreement
of 19U5- The President stated in his message:
"The amendment to the Agreement is a common sense
solution which attempts to carry out the spirit of the
Agreement in a way that is practical and fair to both
parties.
"I recommend that the Congress enact legislation approving
the action of the Secretary of the Treasury in signing the
amendatory agreement on behalf of the United States."
I am here today to support the Presidents recommendation.
This amendment to the Agreement was signed for the United States
by MQroelr as Secretary of the Treasury, and for the United Kingdom
by Sir Harold Caccia, the British Ambassador. It becomes effective
after it has been approved by the Congress of the United States and
appropriate parliamentary action has been taken.
For some time prior to 1956 the United Kingdom had informally
indicated a desire that consultations take place to clarify the provisions of the Financial Agreement relating to the waiver, that is, the
forgiveness of interest. z&*mm fcpnsultations are provided for in Section
12 of the Agreement.
Last December the Government of the United Kingdom, acting on its
understanding of the provisions of the 19U5 Agreement, informed the
lovernment of the United States that the United Kingdom claimed a waiver

TREASURY DEPARTMENT
Washington

STATEMENT BY SECRETARY OF THE TREASURY
GEORGE I'. HUMPHREY ON ANGLO-AMERICAN
FINANCffrfr AGREEMENT, BEFORE SENATE BANKING
AND CURRENCY COMMITTEE, 10 A.M. ESE
Friday, March 15, 1957*

r* .*
•-m

mm. S^,

TREASURY DEPARTMENT
Washington

STATEMENT BY SECRETARY OP THE TREASURY
GEORGE M. HUMPHREY ON ANGLO-AMERICAN
FINANCIAL AGREEMENT, BEFORE SENATE BANKING
AND CURRENCY COMMITTEE, 10 A.M. EST
FRIDAY, MARCH 15, 1957.
President Eisenhower sent to the Congress on March 6 a message
transmitting an amendment to the Anglo-American Financial Agreement
of 19^5. The President stated in his message:
"The amendment to the Agreement is a common sense
solution which attempts to carry out the spirit of the
Agreement In a way that is practical and fair to both
parties.
"I recommend that the Congress enact legislation
approving the action of the Secretary of the Treasury
in signing the amendatory agreement on behalf of the
United States."
I am here today to support the Presidents recommendation.
This amendment to the Agreement was signed for the United
States by me as Secretary of the Treasury, and for the United
Kingdom by Sir Harold Caccia, the British Ambassador. It becomes
effective after it has been approved by the Congress of the
United States and appropriate Parliamentary action has been taken.
For some time prior to 1956 the United Kingdom had informally
indicated a desire that consultations take place to clarify the
provisions of the Financial Agreement relating to the waiver, that
is, the forgiveness, of interest. Consultations are provided for
in Section 12 of the Agreement.
Last December the Government of the United Kingdom, acting on
its understanding of the provisions of the 1945 Agreement, informed
the Government of the United States that the United Kingdom claimed
a waiver of the Interest portion ($81.6 million) of the
December 31> 1956 payment, and set that amount aside pending
consultations. There followed discussions and consideration by
representatives of the United Kingdom and the United States
looking to appropriate modifications of the language of the 19^5
Agreement, the modifications being designed to carry out the
spirit of the original document.
H-1313

- 2 The Anglo-American Financial Agreement was signed on
December 6, 1945., and was approved by the Congress after full
debate on July 15, 1946. The Agreement authorized a 50-year loan
to the United Kingdom of $3-3/4 billion at 2 percent interest.
Repayment was to be «ia'Ie in equal annual installments of about
$119,336,250 covarir-}?, both principal and interest, beginning
December 31, 19:51. * settlement of lend-lease and surplus
property obligations in the amount of approximately $650 million
on the same terms was also made on December 6, 1945, with annual
installments of about $19 million. The total annual installment
of principal and Interest is $138.4 million. Under these arrangements the United Kingdom has paid $348.4 million in principal and
$424.6 million in interest, representing payment in full of
installments due in 1951-55, and the principal installment for
1956.
It has been evident for several years that the applicability
of the waiver clauses is not now clear, because of changes in
conditions since the time when the Agreement was signed. On the
other hand, the spirit of the Agreement, that the United Kingdom
should have some relief when its International exchange situation
so warrants, is perfectly plain.
The proposal before you would replace the waiver provisions
with a simple and clearly expressed authorization for the United
Kingdom to postpone up to seven installments of principal and
Interest under the Financial Agreement and the related settlements.
The first of any such deferred installments would be paid in the
year 2001 and the others annually thereafter, in order. In
addition, the December 31, 1956 interest installment would not
be forgiven but would be deferred until after the other payments
under the Agreement have been completed. Interest would be paid
annually on each deferred installment. In short, the provision
for forgiveness of interest in certain circumstances would be
replaced by an arrangement under which the United States would be
entitled to receive ultimate payment in full of both interest and
principal of the loan.
The provisions in the Agreement dealing with the waiver of
interest which would be replaced under this proposal are
Sections 5 and 6(iii). Section 5 provides that the United Kingdom
roay obtain a waiver of interest when its foreign exchange income
is not sufficient to meet its pre-war level of imports, adjusted
to current prices. Section 6(iii) specifies, however, that
waiver will not be permitted in any year unless "releases or
Payments" of sterling balances accumulated before the date of the
Agreement are reduced proportionately. In other words, in 1956,
wnen interest was about 60 percent of the amount due us, the amount
which
could
be paid
on the
remainingcountries
1946 sterling
balances
£?om
&e cut
the
down
United
by
60
Kingdom
percent.
to foreign
would have
had due
to

£_ mi. W

These provisions have not proved workable. Section 10
of the Agreement noted the United Kingdom!s intention to make
certain arrangements with her sterling creditors with regard to
the balances then outstanding. Part of the balances were to be
made fully available at once and another part were to be
"adjusted" or written off as a contribution by the creditors to
the settlement of wartime indebtedness. A third portion of the
balances were to be released by installments over a period of
years beginning in 1951, the first year in which payments were to
begin on our loan. Sterling balances thus scheduled would be a
clearly identifiable debt and releases or payments thereon would
also be identifiable. Despite vigorous efforts by the United
Kingdom, a settlement of this kind did not prove feasible.
At the time the agreement came into effect on July 15, 1946,
the sterling holdings of foreign countries covered by Section 6(iii)
amounted to approximately $12 billion. They were held by many
countries throughout the world. For most of these countries their
sterling holdings represented their principal, if not their only,
significant international assets.
The holders of these balances had felt war-time shortages of
international commodities for a number of years, and looked upon
these holdings of sterling as a reserve to be used to meet their
heavy post-war requirements of goods and services. Consequently
they were not generally willing to write them off or to freeze
them in a funding arrangement which would limit annual "releases
or payments" to a fixed amount.
Under these circumstances there is no practical method to
determine what if any parts of "releases or payments" made in
any year are applicable to the wartime balances as provided in
Section 6(iii).
The balances existing in 1946 have become confused with
post-war accruals through the constant flow of foreign exchange
transactions. The present sterling balances constitute essential
working balances and reserves of many countries. Any significant
curtailment of the availability of these balances could cause
serious financial problems for the countries holding them. It is
also true that the dollar value of these balances was sharply
reduced by the devaluation of sterling in 1949, whereas the value
of the repayments due us was not affected at all#
The provision on the prewar level of imports is also hard to
a
PPly. It expressly depends in part upon a calculation which
would involve the annual "releases or payments" from the sterling
balances which, as I have just indicated, are not now possible of
determination. Furthermore it is subject to a number of complex
statistical questions, such as the difficulty of adequately
measuring price changes In a very large basket of commodities over
twenty years marked by war and inflation.

- 4The British have always emphasized, and we concur, that the
spirit of the 1945 agreement was to provide relief to their
currency by easing their debt servicing problem when the pound
was under strain. They have repeatedly suggested that with
changed conditions the complicated waiver provisions prevented
any mutual understanding as to when and under what circumstances
this relief would be effective. For five years, they have
nevertheless made the payments in full, without claiming what
they believed to be their right to a waiver.
In 1956, the United Kingdom faced a serious lack of confidence
In sterling. They met this by short-term borrowing. At the
same time they claimed the waiver under the agreement. We
consulted with them with a view to working out arrangements to
replace the waiver with a limited number of postponements.
The British have agreed to give up any right to claim cancellation
of interest. Although they firmly believe that they are entitled
to cancellation, and that this right would be advantageous to
them in the future, they have recognized the problems involved
in attempting to make an objective determination under the
provisions of the 1945 agreement. It is also clear that it is not
practicable from any point of view to handle the sterling balances
of foreign countries In the way that was anticipated.
Both parties are agreed that the desirable course is to make
effective the simple postponement provisions which I have outlined. The Canadian Government has reached the same conclusions
with regard to its loan to the United Kingdom made in 1946 under
terms similar to those in our Agreement. If the British availed
themselves of the right to postpone, they would do so
simultaneously under the American and Canadian Agreements.
The proposed amendment is a fair and businesslike arrangement.
It comes as close to the spirit of the original agreement as is
possible under the present circumstances. I urge that it be
approved by your Committee.

0O0

213
MpOfiypUM fl MR. MAfiffl fr. ^Olff
the following transactions were made in direct and guaranteed
securities of the Government for Treasury investments and other accounts
dueing the month of February, 1957s
Purchases $139,005,500.00
Sales 6ftt389t2O0.O0
$ 72,616,300.00

(Sgdj diaries X. Brannan
Chief, Investments Branch
Division of deposits & Investments

TREASURY DEPARTMENT

WASHINGTON, D.C.

_ pi
IMMEDIATE RELEASE,
Friday, r-ihrliffl~ 1 g
>i»inm

•

inc

II-109'l

mmtfmmm^mmmm^^mmmmmmmmmmmmr^mmmmmmmmmmm^mmmm^^^mmmmmmmfmm,

Duringffaiauarsr1957, 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 fit1! j J O D J S O O .

0O0

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Friday, March 15. 1957.

H-1314

During February 1957, 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 $72,616,300.

oOo

^ _ ^

_ 4 - //

A^**~>7
^
^.
. m. I - i

^^4*J- T ^ ^

iSlSTy*^? •

The British have always emphasized, and we concur, that the
spirit of the 1945 agreement was t/o provide relief to their
currency by easing their debt servicing problem when the pound
was under strain. They have repeatedly suggested that with
changed conditions the complicated waiver provisions prevented
any mutual understanding as to When and under what circumstances
this relief would be effective.A For five years, they have
nevertheless made the payments In full, without claiming what
they believed to be their right to a waiver.
In 1956, the United Kingdom faced a serious lack of confidence
in sterling. They met this by short-term borrowing. At the
same time they claimed the waiver under the agreement. We
consulted with thoia with a view to working out arrangements to
replace the waiver with a limited number of postponements.
The British have agreed to give up any right to claim cancellation
of interest. Although they firmly believe that they are entitled
to cancellation, and that this right would be advantageous to
them in the future, they have recognized the problems involved
in attempting to make an objective determination under the
provisions of the 1945 agreement. It is also clear that it is not
practicable from any point of view to handle the sterling balances
of foreign countries in the way that was anticipated.
Both parties are agreed that the desirable course is to make
effective the simple postponement provisions which I have outlined. The Canadian Government has reached the same conclusions
with regard to its loan to the United Kingdom made in 1946 under
terms similar to those in our Agreement. If the British availed
themselves of the right to postpone, they would do so
simultaneously under the American and Canadian Agreements.
The proposed amendment is a fair and businesslike arrangement.
It comes as close to the spirit of the original agreement as is
possible under the present circumstances. I urge that it be
approved by your Committee.

0O0

These provisions have not proved workable. Section 10
of the Agreement noted the United Kingdom!s intention to make
certain arrangements with her sterling creditors with regard to
the balances then outstanding. Part of the balances were to be
made fully available at once and another part were to be
"adjusted" or written off as a contribution by the creditors to
the settlement of wartime indebtedness. A third portion of the
balances were to be released by Installments over a period of
years beginning in 1951 > the first year in which payments were to
begin on our loan. Sterling balances thus scheduled would be a
clearly identifiable debt and releases or payments thereon would
also be identifiable. Despite vigorous efforts by the United
Kingdom, a settlement of this kind did not prove feasible.
At the time the agreement came into effect on July 15, 1946,
the sterling holdings of foreign countries covered by Section 6(ii
amounted to approximately $12 billion. They were held by many
countries throughout the world. For most of these countries their
sterling holdings represented their principal, if not their only,
significant international assets.
The holders of these balances had felt war-time shortages of
international commodities for a number of years, and looked upon
these holdings of sterling as a reserve to be used to meet their
heavy post-war requirements of goods and services. Consequently
they were not generally willing to write them off or to freeze
them in a funding arrangement which would limit annual "releases
or payments" to a fixed amount.
Under these circumstances there is no practical method to
determine what if any parts of "releases or payments" made in
any year are applicable to the wartime balances as provided in
Section 6(ill).
The balances existing in 1946 have become confused with
post-war accruals through the constant flow of foreign exchange
transactions. The present sterling balances constitute essential
working balances and reserves of many countries. Any significant
curtailment of the availability of these balances could cause
serious financial problems for the countries holding them. Mpi*,
.^©^tettee ttoat-- the dollar vj&%*e^iB^fch^se.bmt^g^^
^
reduced* by* thedevaluationo£ sterling in I2*S, whereas ttf»<-va&u^
of the repayments fine us was nojfc* affected- <a*r*allfe» jfc* -#». • •» • m " * ^
The provision on the prewar level of imports is also hard to
apply. It expressly depends in part upon a calculation which
would involve the annual "releases or payments" from the sterling
balances which, as I have just indicated, are not now possible of
determination. Furthermore it is subject to a number of complex
statistical questions, such as the difficulty of adequately
measuring price changes in a very large basket of commodities over
twenty years marked by war and inflation.

The Anglo-American Financial Agreement was signed on
December 6, 1945, and was approved by the Congress after full
debate on July 15, 1946. The Agreement authorized a 50-year loan
to the United Kingdom of $3-5/4 billion at 2 percent interest.
Repayment was to be marie in equal annual installments of about
$119,336,250 covering both principal and interest, beginning
December 31, 1951. A settlement of lend-lease and surplus
property obligations in the amount of approximately $650 million
on the same terms was also made on December 6, 1945, with annual
Installments of about $19 million. The total annual installment
of principal and interest is $138.4 million. Under these arrangements the United Kingdom has paid $348.4 million in principal and
$424.6 million in interest, representing payment in full of
installments due in 1951-55, and the principal installment for
1956.
It has been evident for several years that the applicability
of the waiver clauses is not now clear, because of changes in
conditions since the time when the Agreement was signed. On the
other hand, the spirit of the Agreement, that the United Kingdom
should have some relief when Its international exchange situation
so warrants, is perfectly plain.
The proposal before you would replace the waiver provisions
with a simple and clearly expressed authorization for the United
Kingdom to postpone up to seven installments of principal and
Interest under the Financial Agreement and the related settlements.
The first of any such deferred installments would be paid in the
year 2001 and the others annually thereafter, in order. In
addition, the December 31, 1956 interest installment would not
be forgiven but would be deferred until after the other payments
under the Agreement have been completed. Interest would be paid
annually on each deferred installment. In short, the provision
for forgiveness of interest in certain circumstances would be
replaced by an arrangement under which the United States would be
entitled to receive ultimate payment in full of both interest and
principal of the loan.
The provisions in the Agreement dealing with the waiver of
interest which would be replaced under this proposal are
Sections 5 and 6(ill). Section 5 provides that the United Kingdom
may obtain a waiver of interest when its foreign exchange Income
is not sufficient to meet its pre-war level of imports, adjusted
to current prices. Section 6(iii) specifies, however, that
waiver will not be permitted in any year unless "releases or
payments" of sterling balances accumulated before the date of the
Agreement are reduced proportionately. In other words, in 1956.
when interest was about 6b percent of the amount due us, the amount
which
be
from
cut
the
could
down
United
by
be paid
60
Kingdom
percent.
on the
to foreign
remaining
countries
1946 sterling
would have
balances
had due
to

}^m*y^*m, £jfmm~><~^^

-xy

TREASURY DEPARTMENT
Washington

rCi-v

STAT3I.£NT BY SECRETARY OP THE TREASURY
GEOilG-ri M, HUMPHREY ON ANGLO-AMERICAN
FINANCIAL AGREEMENT, BEFORE SENATE DAI1KDIQ
CT3fe3rJ0Y COMMITTEE-, I O ' A . M . EST
K Iff. 1957.
MARCH

tf'

"The amendment to the Agreement is a common sense
solution which attempts to carry out the spirit of the
Agreement in a way that is practical and fair to both
parties.
"I recommend that the Congress enact legislation
approving the action of the Secretary of the Treasury
in signing the amendatory agreement on behalf of the
United States."
JSdSjjSSt^^
This amendment to the Agreement was signed for the United
States by me as Secretary of the Treasury, and for the United
Kingdom by Sir Harold Caccia, the British Ambassador. It becomes
effective after It has been approved by the Congress of the
United States and appropriate Parliamentary action has been taken.
For some tine prior to 1956 the United Kingdom had informally
indicated a desirs that consultations take place to clarify the
provisions of the Financial Agreement relating to the waiver, that
Is, the forgiveness, of interest. Consultations are provided for
in Section 12 of the Agreement.
Last December the Government of the United Kingdom, acting on
its understanding of the provisions of the 1945 Agreement, informe'
the Government of the United States that the United Kingdom claimei
a waiver of the interest portion ($81.6 million) of the
December 31* 1956 payment, and set that amount aside pending
consultations. There followed discussions and consideration by
representatives of the United Kingdom and the United States
looking to appropriate modifications of the language of the 1945
Agreement, the modifications being designed to carry out the
spirit of the original document.

W~/yt>

TREASURY DEPARTMENT
Washington

-'24

STATEMENT BY SECRETARY OF THE TREASURY
GEORGE M. HUMPHREY ON ANGLO-AMERICAN
FINANCIAL AGREEMENT, BEFORE THE SUBCOMMITTEE
ON FOREIGN ECONOMIC POLICY OF THE HOUSE
COMMITTEE ON FOREIGN AFFAIRS, 10:30 A.M. EST
MONDAY, MARCH 18, 1957.
I am here today to support President Eisenhower!s
recommendation in his March 6 message to the Congress transmitting
an amendment to the Anglo-American Financial Agreement of 1945.
The President stated in his message:
"The amendment to the Agreement is a common sense
solution which attempts to carry out the spirit of the
Agreement in a way that is practical and fair to both
parties.
"I recommend that the Congress enact legislation
approving the action of the Secretary of the Treasury
in signing the amendatory agreement on behalf of the
United States."
This amendment to the Agreement was signed for the United
States by me as Secretary of the Treasury, and for the United
Kingdom by Sir Harold Caccia, the British Ambassador. It becomes
effective after it has been approved by the Congress of the
United States and appropriate Parliamentary action has been taken.
For some time prior to 1956 the United Kingdom had informally
indicated a desire that consultations take place to clarify the
provisions of the Financial Agreement relating to the waiver, that
is, the forgiveness, of interest. Consultations are provided for
in Section 12 of the Agreement.
Last December the Government of the United Kingdom, acting on
its understanding of the provisions cfthe 1945 Agreement, informed
hhe Government of the United States that the United Kingdom claimed
a waiver of the interest portion ($81.6 million) of the
December 31* 1956 payment, and set that amount aside pending
consultations. There followed discussions and consideration by
representatives of the United Kingdom and the United States
looking to appropriate modifications of the language of the 1945
Agreement, the modifications being designed to carry out the
spirit of the original document.
H-1315

- 2 The Anglo-American Financial Agreement was signed on
December 6, 1945, and was approved by the Congress after full
debate on July 15* 1946. The Agreement authorized a 50-year loan
to the United Kingdom of $3-3/4 billion at 2 percent interest.
Repayment was to be made in equal annual installments of about
$119*336,250 covering both principal and interest, beginning
December 31, 1951- A settlement of lend-lease and surplus
property obligations in the amount of approximately $650 million
on the same terms was also made on December 6, 1945, with annual
Installments of about $19 million* The total annual installment
of principal and interest is $138.4 million. Under these arrangements the United Kingdom has paid $348.4 million in principal and
$424.6 million in interest, representing payment in full of
installments due in 1951-55* and the principal installment for
1956.
It has been evident for several years that the applicability
of the waiver clauses is not now clear, because of changes in
conditions since the time when the Agreement was signed. On the
other hand, the spirit of the Agreement, that the United Kingdom
should have some relief when Its international exchange situation
so warrants, is perfectly plain.
The proposal before you would replace the waiver provisions
with a simple and clearly expressed authorization for the United
Kingdom to postpone up to seven installments of principal and
interest under the Financial Agreement and the related settlements.
The first of any such deferred installments would be paid in the
year 2001 and the others annually thereafter, in order. In
addition, the December 31, 1956 Interest installment would not
be forgiven but would be deferred until after the other payments
under the Agreement have been completed. Interest would be paid
annually on each deferred installment. In short, the provision
for forgiveness of interest in certain circumstances would be
replaced by an arrangement under which the United States would be
entitled to receive ultimate payment in full of both interest and
principal of the loan.
The provisions in the Agreement dealing with the waiver of
interest which would be replaced under this proposal are
Sections 5 and 6(iii). Section 5 provides that the United Kingdom
may obtain a waiver of interest when its foreign exchange income
is not sufficient to meet Its pre-war level of imports, adjusted
to current prices. Section 6(ill) specifies, however, that
waiver will not be permitted in any year unless "releases or
payments" of sterling balances accumulated before the date of the
Agreement are reduced proportionately. In other words, in 1956,
when
interest
about
60
of1946
the amount
due
us,had
thedue
amount
which
be
from
cut
the
could
down
United
be
bywas
paid
60
Kingdom
percent.
on the
to percent
remaining
foreign countries
sterling
would
have
balances
to

'3 "

222

These provisions have not proved workable. Section 10
of the Agreement noted the United Kingdomfs intention to make
certain arrangements with her sterling creditors with regard to
the balances then outstanding. Part of the balances were to be
made fully available at once and another part were to be
"adjusted" or written off as a contribution by the creditors to
the settlement of wartime indebtedness. A third portion of the
balances were to be released by installments over a period of
years beginning in 1951* the first year in which payments were to
begin on our loan. Sterling balances thus scheduled would be a
clearly identifiable debt and releases or payments thereon would
also be Identifiable. Despite vigorous efforts by the United
Kingdom, a settlement of this kind did not prove feasible.
At the time the agreement came into effect on July 15* 1946,
the sterling holdings of foreign countries covered by Section 6(ill)
amounted to approximately $12 billion. They were held by many
countries throughout the world. For most of these countries their
sterling holdings represented their principal, If not their only,
significant International assets.
The holders of these balances had felt war-time shortages of
international commodities for a number of years, and looked upon
these holdings of sterling as a reserve to be used to meet their
heavy post-war requirements of goods and services. Consequently
they were not generally willing to write them off or to freeze
them in a funding arrangement which would limit annual "releases
or payments" to a fixed amount.
Under these circumstances there is no practical method to
determine what If any parts of "releases or payments" made in
any year are applicable to the wartime balances as provided in
Section 6(iii).
The balances existing in 1946 have become confused with
post-war accruals through the constant flow of foreign exchange
transactions. The present sterling balances constitute essential
working balances and reserves of many countries. Any significant
curtailment of the availability of these balances could cause
serious financial problems for the countries holding them.
It is also important to recognize that the dollar value of all
sterling balances was sharply reduced by the devaluation of
sterling in 1949, whereas the value of the repayments due us under
the Agreement was not affected at all* The pound sterling was
devalued from $4.03 to $2.80 In September 19^9* or about 30 percent.
This resulted in a proportionate adjustment in dollar value of the
claims of sterling creditors.
The provision on the prewar level of Imports is also hard to
a
PPly« involve
It expressly
depends
in part
a calculation
would
the annual
"releases
orupon
payments"
from thewhich
sterling

balances which, as I have just indicated, are not now possible of
determination. Furthermore it is subject to a number of complex
statistical questions, such as the difficulty of adequately
measuring price changes in a very large basket of commodities over
twenty years marked by war and inflation.
The British have always emphasized, and we concur, that the
spirit of the 1945 agreement was to provide relief to their
currency by easing their debt servicing problem when the pound
was under strain. They have repeatedly suggested that with
changed conditions the complicated waiver provisions prevented
any mutual understanding as to when and under what circumstances
this relief would be effective. The British Treasury has
discussed this matter with us at the Treasury over the past several
years. For five years, they have nevertheless made the payments
In full, without claiming what they believed to be their right to
a waiver.
In 1956, the United Kingdom faced a serious lack of confidence
in sterling. They met this by short-term borrowing. At the
same time they claimed the waiver under the agreement. We
consulted with them with a view to working out arrangements to
replace the waiver with a limited number of postponements.
The British have agreed to give up any right to claim cancellation
of interest. Although they firmly believe that they are entitled
to cancellation, and that this right would be advantageous to
them in the future, they have recognized the problems involved
in attempting to make an objective determination under the
provisions of the 1945 agreement. It is also clear that it is not
practicable from any point of view to handle the sterling balances
of foreign countries in the way that was anticipated.
Both parties are agreed that the desirable course is to make
effective the simple postponement provisions which I have outlined. The Canadian Government has reached the same conclusions
with regard to its loan to the United Kingdom made in 1946 under
terms similar to those in our Agreement. If the British availed
themselves of the right to postpone, they would do so
simultaneously under the American and Canadian Agreements.
The proposed amendment is a fair and businesslike arrangement.
It comes as close to the spirit of the original agreement as is
possible under the present circumstances. I urge that it be
approved by your Committee.

0O0

RELEASE A. M. HEWSPAPERS,
Tuesday, March 19, 1957.

r-4

The Treasury Department announced last evening that the tenders for 11,600,000,
or thereabouts, of 91-day Treasury bills to be dated March 21 and to nature June 20,
1957, which were offered on March lb, were opened at the Federal Reserve Banks on
March 18.
The details of this issue are as follows t
Total applied for - |2,7ii3,6l4$,000
Total accepted
- 1,603,85U,000

(includes $397,805,000 entered on a
noncompetitive basis and accepted in
full at the average price shown belov)

Range of accepted competitive bids:
High - 99.236 Equivalent rate of discount appro*. 3.022Jt per sans
Low
- 99-230
•»
*
*
*
*

3.0li6jl •

•

Average - 99.231 • " • " • 3.010* • •
(8I4 percent of the mount bid for at the low price was accepted)
Federal Reserve
District

Total
Appliad for

Total
AoMptrt

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

Wi,686,000
1,879,989,000
kL,577,000
66,813,000
22,553,000
66,783,000
315,135,000
51,0^3,000
19,09l»,000
li7,978,000
$0,131,000
137,563.000

•2,71*3,6^,000

32,152,000
9fal,286,000
20,910,000
51,112,000
20,81*3,000
62,881,000
23lt,li86,000
li2,97l»,000
17,898,000
39,752,000
33,329,000
106.231.000

|l,6O3,851(,O00

mtmC.

TREASURY PEPAR FMENT
— — — — ^ — — — — — — — — — M < — « n .

WASHINGTON. D.C.
1LEASE A. M. NEWSPAPERS,
lesday, March 19, 1957 *

H-1316

The Treasury Department announced last evening that the tenders for $1,600,000,000,
thereabouts, of 91-day Treasury bills to be dated March 21 and to mature June 20,
#7, which were offered on March lh, were opened at the Federal Reserve Banks on
irch 18.
The details of this issue are as follows:
Total applied for - $2,71*3,61*5,000
Total accepted
- 1,603,85U,000

(includes $397,805,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids?
High - 99.236 Equivalent rate of discount approx. 3.022J6 per annum
Low

Average - 99.231

- 99.230
w

« « w « 3.01*1?!

3.0U6#

n n

(8k 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

W*,686,000
1,879,989,000
1*1,577,000
66,813,000
22,553,000
66,783,000
315,135,000
51,01*3,000
19,09l*,000
1*7,978,000
50,1*31,000
137,563,000

$2,71*3,61*5,000

32,152,000
91*1,286,000
20,910,000
51,112,000
20,813,000
62,881,000
23U,l*86,000
l*2,97l*,000
17,898,000
39,752,000
33,329,000
106,231,000

$1,603,85U,000

-7-

; ?>

The present two levels In the corporate tax are Justify
If at all only I ccause the smaller companies are especially
ucuCTvavm, on retained earnings until they £rove themselves tc
h-ve become sufficiently successful to induce more Investors
to put their funds into their securities.

But it would be a

great mistake to go from the present two levels to a general 1
progressive corporate tax and thereby reduce investment inces
tive at the very time when increasingly successful proven ©p«
tions made the need for expansion and more capital investment
continually more important.
ven if the propped rates could be so balanced that the
would be no net loss of revenue from the proposed tax changes
the Treasury would still oppose the proposals because any
action to change the spread between tax rates on different si
of corporate income has such far-reaching implications. This
Committee should certainly not Initiate any such sweeping chai
in our tax system until their full effects can be determined
by the utort extensive public hearings and after full consider
tion from every standpoint.
Certainly small business would be helped if ltfs taxes
were lower, Just as every other group in America would be
better off with lower taxes.

But we must hold to the line

-^mm, we must now avoid giving preferential tax treatment, gf«
by group, to any special group and so discriminate against si
other gro ps and delay that happy day when general tax relief
can again be riven to every taxpayer in America.

In the prewar period ef 1039, however, the failure rate wee 70
per 10,000 firm*, end in MHO, 63 per 10,000. For the whole
period 1000-1906, the rate wae 70 per 10,000 U r m e . " ^ ^
The increase in the number ef failures should be appraised
in perspective am related to the earlier reaerd.

ae that

basis the preeeat vitality of business concerns i» good.
8. ISO would reduce the exletiag normal tax en corporation
v

income frem SO percent to 23 pereeat end increase the surtax
on corporation income over $36,000 from 33 percent te 31 per*
oeet.

The total tax rate on income above $36,000 would thus be

increased from 63 percent te 63 pereeat.
About 66 percent of email business firms are proprietorships aad partnerships and are net taxed ae corporations.
Thus, S.150 provides tax*relief for only the 16 pereeat of
small business concerns which are organised as corporations.
Special tax relief of the sort contemplated by 8. 160 therefore
directly discriminates against the overwhelming majority ef
small businessee which are sot conducted ae corporations,
and, most importantly,, discriminates against individual taxpayers generally.
Is view of the very high rates now is effect, it vim Id
be unfortunate to increase the relative tax burden on any
such large group ef taxpayers as would be dose by 8. 180,
especially for the benefit ef such a comparatively email favored
few.

4,300,000 ©n Jun» 30. 1956.

£2«J

(2) In 1956 the record mdfter of 1^0,775 new "corporations
were formed.

This exceeded the previous record of 139,651

estimated In 1955. there has been en increase in the number
of new corporations in every year beginning with 1952.
(3) Though the number ef business failures increased
In 1956 over 1955, the rate of business failures is still
far below the pre-war level and, in fact, it Is fur below
the average rate for the entire period since 1900.
Specifically stated In the last report ef t$e Small Business
Administration, December 51, 19561

*In 1956 the number of

business failures per 10,000 firms was 48 #

In 1954 and 1955

there were 42 business failures per 10,000 operating businesses;
in 1949, 3% frer 1 @ * 0 0 0 J and in 1952, 29 per 10,000.

jfc •**

important arid effective tax change that can possibly be made
to preaste steady economic development is a reduction in all
rates for all taxpayers when our fiscal situation permits.
To make this general reduction possible for a U taxpayers
we must avoid new special relief provisions for particular
groups ef taxpayers which will dissipate our revenues.
Such relief provisions would net only still further eee$liaate
a law that Is already too complicated, but they also, in the
aggregate, might involve so auch revenue loss as te postpone
indefinitely the tine when it will be possible te have such
general relief for all taxpayers.
% have been asked about two bills which would modify the
corporate tax structure to give loser taxes to corporations
with smaller incomes. Before commenting on the two bills, 1
would like to present a few figures which show the present
vitality of new enterprises in our private enterprise system.
The following facta stand out:
(1) At the end of 1955* the last full year for which
figures are available, the total business population stood
at an all-time high of 4,252,000 firms. The net increase
during 1955 wee 63,000. This was the largest increase in any
year since 1948, when the surge ef new business formations
that followed World War IX came to a close. During the first
half of 1956 there was a further growth in the business
population.

The Snail Business Administration estimate* that

the total nWmmtmr in operation use between 4,275,000 and

2°o
*U V*« Sm,

• agrowth through private initiative. l w t w » the
reduction of tax ratea maet give way «nder preaent
eirewwtaneee to the eoat of Mtting our urgent
national r»apon»lbillti«».
"For the preaent* therefore* 1 « * *or
continuation for another year of the exiatlng exelae
tax ratea on tobaoeo* liquor, and autowobilaa* anion,
under proeent law* would ba redwood next AprU 1.
I aunt alao reeoneend that tha preaent aerporate tax
rate* be continued far another year. It would ba
neither fair nor appropriate to allow exelee and
corporate tax reductions to ba amde at a tioa when a
general tax reduction eannet bo undertaken*
the eatiaated aurplua for tha fiaaal year 1958 i» eoneidew
laaa m a n the revenue which will bo reeelved during that year
froai the legielation wtiiali ia now before yea* therefore. If
a
these ratea are net extended* we would have/aubatantial
deflolt in 1958. After two yeara of balanced budgets aa a
reault of the coabined hard work of the Congreee and tha
Adalniefefatlen* it would be inexcusable to alip book into
defielt finaneing for next fear, we suet have the revenue that
a continuation of existing tax ratea would provide.
Ae X have aaid aeny tinea* the preaent tax rate* are too
high for long continued retention and would in the long run
seriously hamper our vigorous ecohiseic growth. She aest

mhmmes m

TREASURY SICRISASX G^ORO* M.

HUMPHHKY B&FQR* TH& 8 p * f X COWitfgft <m
FINANCE ON H.Be 4090 ( R H T E EXTENSION)
Tuesday, March 19, 195?
Kr. Chairman and Members of the Committee on Finance t
I appreciate tHis opportunity te appear before you in support
ef H.E. 4090, which teas passed by the Mouse ef Representatives
en March 14, 1957 • Shis legislation would extend for one year
the existing excise rates en liquor, tobacco* and automobiles,
and the tax rate on corporate insane*

If this legislation

were not adopted, the tax rates would drop en itprLl 1.
The full year effect ef the one-year rate extensions would
be slightly more than $ | billion.

#•*«* billion ef this cooes

frosi the coloration lucerne taxj $231 million from various alcoh
taxesj £135 million from the tax on cigarettes* and $43$ Salllion
frem the tax on automobiles and automobile parts and accessories
Qf the total of more than $$ billion, we estimate that
#186 million will be collected in the current fiscal year j
$2 billion, #166 million in the fiscal year 195&I and virtually
all ef the rest in the fiscal year 1959.
ffoe President mule his reeosmcndatioa for these rate extens
in his Budget Message in the fallowing terns $
*Xt le sty firm belief that tax ratee are etlll
too high and that we should look forward to further tea
reductions as soon as they can be accomplished within a
sound budget policy.

Reductions in tax ratee would give

relief to taxpayers and would also release funds for the
activity and investment necessary for sustained economic

f 37
STATEMENT BY TREASURY SECRETARY GEORGE M.
HUMPHREY BEFORE THE SENATE COMMITTEE ON
FINANCE ON H.R. 4090 (RATE EXTENSION)
Tuesday, March 19, 1957
Mr. Chairman and Members of the Committee on Finance: I appreciate this opportunity to appear before you In support of H.R. 4090,
which was passed by the House of Representatives on March 14, 1957.
This legislation would extend for one year the existing excise rates
on liquor, tobacco, and automobiles, and the tax rate on corporate
income. If this legislation were not adopted, the tax rates would
drop on April 1.
The full year effect of the one-year rate extensions would be
slightly more than $3 billion. $2.2 billion of this comes from the
corporation income tax; $231 million from various alcohol taxesj
$185 million from the tax on cigarettes; and $436 million from the ••»
tax on automobiles and automobile parts and accessories.
Of the total of more than $3 billion, we estimate that $186
million will be collected in the current fiscal year; $2 billion,
$166 million in the fiscal year 1958; and virtually all of the rest
in the fiscal year 1959.
The President made his recommendation for these rate extensions
in his Budget Message in the following terms:
"It is my firm belief that tax rates are still too
high and that we should look forward to further tax
reductions as soon as they can be accomplished within a
sound budget policy. Reductions in tax rates would give
relief to taxpayers and would also release funds for the
activity and investment necessary for sustained economic
growth through private initiative. However, the reduction
of tax rates must give way under present circumstances to
the cost of meeting our urgent national responsibilities.
"For the present, therefore, I ask for continuation
for another year of the existing excise tax rates on
tobacco, liquor, and automobiles, which, under present
law, would be reduced next April 1. I must also recommend
that the present corporate tax rates be continued for
another year. It would be neither fair nor appropriate to
allow excise and corporate tax reductions to be made at
a time when a general tax reduction cannot be undertaken."
The estimated surplus for the fiscal year 1958 is considerably
less than the revenue which will be received during that year from
the legislation which is now before you. Therefore, if these rates
are not extended, we would have a substantial deficit in 1958. After
H-1317

* Ir-v

- 2 two years of balanced budgets as a result of the combined hard work
of the Congress and the Administration, it would be inexcusable to
slip back into deficit financing for next year. We must have the
revenue that a continuation of existing tax rates would provide.
As I have said many times, the present tax rates are too high
for long continued retention and would in the long run seriously
hamper our vigorous economic growth. The most important and effective tax change that can possibly be made to promote steady economic
development is a reduction in all rates for all taxpayers when our
fiscal situation permits. To make this general reduction possible
for all taxpayers we must avoid new special relief provisions for
particular groups of taxpayers which will dissipate our revenues*
Such relief provisions would not only still further complicate a law
that is already too complicated, but they also, in the aggregate,
might involve so much revenue loss as to postpone indefinitely the
time when it will be possible to have such general relief for all
taxpayers.
I have been asked about two bills which would modify the corporate tax structure to give lower taxes to corporations with smaller
incomes. Before commenting on the two bills, I would like to present
a few figures which show the present vitality of new enterprises in
our private enterprise system. The following facts stand out:
(1) At the end of 1955* the last full year for which figures
are available, the total business population stood at an all-time
high of 4,252,000 firms. The net increase during 1955 was 63,000.
Ihis was the largest increase in any year since 1948, when the surge
of new business formations that followed World War II came to a
close. During the first half of 1956 there was a further growth in
the business population. The Small Business Administration estimates
that the total number in operation was between 4,275*000 and
4,300,000 on June 30, 1956.
(2) In 1956 the record number of 140,775 new corporations were
formed. This exceeded the previous record of 139,651 estimated in
1955. There has been an increase in the number of new corporations
In every year beginning with 1952.
(3)_ Though the number of business failures increased in 1956
over 195:3, the rate of business failures is still far below the
pre-war level and, in fact, it is far below the average rate for
the entire period since 1900. Specifically stated in the last report
of the Small Business Administration, December 31, 1956: "In 1956
the number of business failures per 10,000 firms was 48. In 1954
and 1955 there were 42 business failures per 10,000 operating
businesses; in 1949, 34 per 10,000; and in 1952, 29 per 10,000.

In the prewar period of 1939* however, the failure rate was 70 per
10,000 firms, and in 1940, 63 per 10,000. For the whole period
1900-1956, the rate was 70 per 10,000 firms."
The increase in the number of failures should be appraised in
perspective as related to the earlier record. On that basis the
present vitality of business concerns is good.
S. 150 would reduce the existing normal tax on corporation
income from 30 percent to 22 percent and increase the surtax on
corporation income over $25,000 from 22 percent to 31 percent. The
total tax rate on income above $25>000 would thus be increased from
52 percent to 53 percent.
About 85 percent of small business firms are proprietorships
and partnerships and are not taxed as corporations. Thus, S. 150
provides tax relief for only the 15 percent of small business concerns which are organized as corporations. Special tax relief of
the sort contemplated by S. 150 therefore directly discriminates
against the overwhelming majority of small businesses which are not
conducted as corporations, and, most importantly, discriminates
against individual taxpayers generally.
In view of the very high rates now in effect, It would be
unfortunate to increase the relative tax burden on any such large
group of taxpayers as would be done by S. 150, especially for the
benefit of such a comparatively small favored few.
S. 352 would make the corporate tax generally progressive,
starting at 5 percent on the first $5*000 of income and rising by
5 and 10 percent steps to 55 percent on income over $100,000. There
is no justification for a progressive corporate tax. The analogy
with the progressive individual income tax is not correct.
Smaller and medium sized corporations may be, and in fact often
are, owned by a few individuals each of whom has a sizeable individual
income, while the larger corporations are most likely to be owned by
a great many individuals, large numbers of whom have quite modest
Incomes. The most recent figures on the ownership of companies listed
on the New York Stock Exchange show that 2/3 of the 8,630,000 share
owners of listed securities have incomes of less than $7500.00 a year.
Almost 38$ of all share owners have incomes of less than $5,000.00
a year.
The effect of a progressive corporate tax thus in many respects
would be altogether unfair in that it would indirectly impose a
disproportionately large tax burden on the small investors who buy
stock in large companies.

lm\. mm

^ ^ •'

Moreover, a progressive corporate tax would actually work
igainst the small business itself which is seeking tax relief to
permit its growth and expansion. Under a progressive tax system
the moment a company does in fact grow larger it will have to pay a
ilgher rate of tax. Thus, the progressive tax scheme actually has
i "built in" mechanism to retard the continued growth of a successful
small business.
The present two levels in the corporate tax are justified if at
all only because the smaller companies are especially dependent on
retained earnings until they prove themselves to have become sufficiently successful to induce more investors to put their funds into
their securities. But it would be a great mistake to go from the
present two levels to a generally progressive corporate tax and thereby reduce investment incentive at the very time when increasingly
successful proven operations make the need for expansion and more
capital investment continually more Important.
Even if the proposed graduated rates could be so balanced that
there would be no net loss of revenue from the proposed tax changes,
the Treasury would still oppose the proposal because any action to
change the spread between tax rates on different sizes of corporate
income has such far-reaching implications. This Committee should
certainly not initiate any such sweeping changes in our tax system
until their full effects can be determined by the most extensive
public hearings and after full consideration from every standpoint.
Certainly small business would be helped if it!s taxes were
lower, just as every other group in America w©uld be better off with
lower taxes. But we must hold to the line and we must now avoid
giving preferential tax treatment, group by group, to any special
group and so discriminate against all other groups and delay that
happy day when general tax relief can again be given to every
taxpayer in America.
0O0

- 3-

or by any local taxing authority. For purposes of taxation the amount of disco
at which Treasury bills are originally sold by the United States is considered
be interest. Under Sections k$h (b) and 1221 (5) of the Internal Revenue Code
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 <
and such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereum
need include in his income tax return only the difference between the price pal*
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 tenns of the Treasury bills and govern the conditions of their issue. Copi<
of the circular may be obtained from any Federal Reserve Bank or Branch.

- 2 -

m
or in a like face amount of Treasury bills maturing

March 28. 1957

Cash

25
and
for
the
The

exchange tenders will receive equal treatment. Cash adjustments will be mac
differences between the par value of maturing bills accepted in exchange ane
issue price of the new bills.
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, ar
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$h* 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 print
or interest thereof by any State, or any of the possessions of the United State!

BBtXKEKXI

mm
TREASURY DEPARTMENT
Washington
A. M.
KHK RELEASE/ KHOTXKX NEWSPAPERS,
Thursday, March 21, 1957
.

uy^/
/

, .?

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

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE A.M. NEWSPAPERS,
rhursday, March 21, 1957 *

H-1318

The Treasury Department, by this public notice, invites tenders
for $1,600,000,000, or thereabouts, of 91-day Treasury bills, for
Dash and in exchange for Treasury bills maturing March 28, 1957,
In the amount of $1,614,593,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. ,The bills of this series will be dated March 28, 1957,
and will mature June 27, 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, March 25, 1957.
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 announcenent 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
Ln whole or in part, and his action In any such respect shall be
*inal. Subject to these reservations, non-competitive tenders for
^200,000 or less without stated price from any one bidder will be
tccepted 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 Ba
on March 28, 1957,
in cash or other immediately available fund
or in a like face amount of Treasury bills maturing March 28, 19
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price of the ne
bills.
The Income derived from Treasury bills, whether Interest or
gain from the sale or other disposition of the bills, does not ha
any exemption, as such, and loss from the sale or other dispositii
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 Feden
or State, but are exempt from all taxation now or hereafter impost
on the principal or Interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authorit;
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. 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 obtalnec
from any Federal Reserve Bank or Branch.
0O0

c —

BNBDIA3ES RSUBASB,
Wednesday, March 801 1957*
mmmmmmmmmmmmmmmm9mmmmmmmM9*mmmm9mmmm9mmm9mmmmmmm9mmm9

Ihe Treasury today announced e^/ pemeat ellotneot en subscrtp*
tioxis in excess of $100*000 for the current cash offering of $2,250
million of 3*3/8 percent Treasury ©Sfrtmoatir of Saftefotednees'ef Series
A-1958 and al yiperomit allotaeat o* subscriptions ia excess of $100,360
for the current cash offering of $fd0 allllon of 5*1/8 pereeat Jreesary
lotos of Series A-1960. SubsorQfchais (Hit ^mpftXtt or loos fbr both
issues will bo allotted in foil, and oBbtoljifaaVfot aottf-tftaii $ 1 0 0 . 6 ^
will be allotted not lose tuan

BBO.OOO.

in aoct«iott xo w * aaoam

allotted to the public, $100 aillioa of the notes will be allotted to
Qovensaeot Investment Accounts.

A mm

as to subscriptions and allotments will be announced when final reports
are received from the Federal Reserve Banks,

oOo

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Wednesday, March 20, 1957.

H-1319

The Treasury today announced a 3i percent allotment on subscriptions in excess of $100,000 for the
current cash offering of $2,250 million of 3-3/8
percent Treasury Certificates of Indebtedness of
Series A-1958 and a 12 percent allotment on subscriptions in excess of $100,000 for the current cash
offering of $750 million of 3-1/2 percent Treasury
Notes of Series A-1960.

Subscriptions for $100,000

or less for both issues will be allotted in full, and
subscriptions for more than $100,000 will be allotted
not less than $100,000.

In addition to the amount

allotted to the public, $100 million of the notes will
be allotted to Government Investment Accounts.
Details as to subscriptions and allotments will
be announced when final reports are received from the
Federal Reserve Banks.

0O0

*~ *
-• 1 1 • >

RELEASE A. M. NEWSPAPERS,
Tuesday, March 26, 1957>
the Treasury Department announced last evening that the tenders for $l,6O0,0G
or thereabouts, of 91-day Treasury bills to be dated March 28 and to nature June 2
1957, which were offered on March 21, were opened at the Federal Reserve Banks on
March 25*
The details of this issue are as followst
Total applied for - $2,61*7,593,000
Total accepted
- 1,600,05^,000

(includes $347,220,000 entered on a
noncompetitive basis and accepted la
full at the average price shown below)

Range of accepted competitive bids:
High - 99*243 Equivalent rate of discount approx. 2.995$ par an
Low
- 99.229
*
*
•
•
•

3*050* •

Average - 99.233 " * * * * 3.03W •
(3 percent of the amount bid for at the low price was accepted)
Federal Reserve
District

Total
Applied for

Total
Accepts

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

lll,80lt,000
51»,117,000
1,5,31*9,000
129,521.000

35,876,00
919,661,00
2U,U25,0O
U9,3l»3,00
20,837,00
3l»,263,0O
281t,l30,00
33,830,00
U»,80l»,00
148,080,00
314,033,00
100.772,00

$2,6147,593,000

$1,600,0514,00

17,126,000
1,829,027,000
1(0,300,000
80,319,000
22,176,000
17,587,000
303,OU3,000
3IJ,22U,000

TOTAL

ifiY

TREASURY DEPARTMENT
WASHINGTON, D.C.
(ELEASE A. M. NEWSPAPERS,
luesday, March 26. 1957*

H-1320

The Treasury Department announced last evening that the tenders for $1,600,000,000,
>r thereabouts, of 91-day Treasury bills to be dated March 28 and to mature June 27,
1957, which were offered on March 21, were opened at the Federal Reserve Banks on
[arch 25*
The details of this issue are as follows?
Total applied for - $2,61*7,593,000
Total accepted
- l,600,05ii,000

(includes $31*7,220,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids:
Hi h

8 - 99.21*3 Equivalent rate of discount approx. 2.995# per annum
w
Low
- 99#229
w
«
it
n
3*050# «

Average - 99.233 " nuns 3.031*$ " »
(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

$
1*7,126,000
1,829,027,000
1*0,300,000
80,319,000
22,176,000
1*7,587,000
303,01*3,000
3l*,22l*,000
ll*,80l*,000
511,117,000
1*5,31*9,000
129,521,000

$2,6li7,593,000

$1,600,0514,000

TOTAL

35,876,000
919,661,000
2l*,l*25,000
U9,3l*3,000
20,837,000
3l*,263,000
23U,130,000
33,830,000
ll*,80l*,000
1*8,080,000
3l*,033,000
100,772,000

Comparison of principal items of assets and liabilities of active national banks - Continued
(in thousands of dollars)
* Deo* 31, * Sept* 269
:
1956 :
1956

Dec. 31,
1955

LIABILITIES
)eposits of individuals, partnerships, and corporations}
Demand
59,582,348 55,373.256 58,192,878
Time
26,270,576 25.976,713 25,151,538
Deposits of U. S. Government
2.347.519
2,351,299
3.090.9^7
Postal savings deposits.
12,751
13,086
12,856
Deposits of States and political
7,34l,424
6,897,426
7.467,413
subdivi sions.
•
9.320,515
8,^37,734
9.850,100
Deposits of banks
l,964,n6
1,434,095
1,847
Hher deposits (certified and
cashiers* checks, etc.)
,_
Total deposits
107,49»*,S23 101,223,62^ 104,21?,
3111s payable, rediscounts, and
other liabilities for borrowed
money
18,6*54
749.376
107,796
Hher liabilities
1.716.373
1.761,89k
1.488,573
Total liabilities, excluding
capital account!
109,229.850 103.734,297 105.81^.358
CAPITAL ACCOUNTS
'apital stock:
Preferred
3,808
3,8*13
4,166
Surplus
4,138,783
4,644,lll
3.*^.335
Common profits
2,634,300
2,593.270
2.468,458
JndiTided
1,439,937
1.541,333
1,368,808
Total
.
2,638.108
2,597.113
2,472,o24
Reserves
255.304
258,486
266,162
Total surplus, profits and
reserves
5,834,024
5,843,930
5,463.305
Total capital accounts
S,472,132
8,441,643
7,935.929
capital
accounts...
H7.701.982 112.175.340 113.750.287
Total
liabilities
and
Percent
Percent
RATIOS:
Percent
•can29
U.S.Gov't securities to total assets
26.92
27.67
.62
'" Loans & discounts te total assets

llO.QQ

UI.Q*

:Increase or decrease >Increase or decrease
; since Sept. 26, I956 :since Pec. 31, 1955
: Amount
: Percent : Amount
iPercent

7.60
4, 209,092
1.13
293,863
-743,428 -24.05
-.82
-105
8»2o
569.987
1.412,366 16.74

1.389.470
1,119,038
-3.780
-335
125.989
529,585

36.96
530,021
b.20
6,271,796

116.867

-730,722 -97.51
- 45,521 -2.58

3.2?W

2.39
4.45
-.16
-2.56
1.72
5.68
6.
«

-89,142
227,800

-82. 70
15.30

5.495.553

5.30

3.415,492

3.23

41.030

-.91
1.58

-358
165,842

~~7§

2TF

__f_S~

-8.59
6.72
7769

-6.58
-1.23

316.44.
71.129
-10,858

-101,396
-3.182
-9.906
5.526.642
NOTE:

'$r
4.93

370.71<

IsiTaol
3,951,695

5.20
-4.08

irk"
3.47

Minns sign denotes t\m*m*mmam9•m;M~

Statement shoving comparison of principal items of assets and liabilities of active national banks
as of December 31, 1956, September 26, 1956 a~d December 3 L 1955
<~^ [
(in thousands of dollars)
i
•
. Dec* 31, $
:
1956
:
flumber of banks
ASSSTS
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 Total
assetsassets

: increase or decrease : Increase or decreae
Septa 26, : pec. 31, ; since Sept. 26, 1956 : since Dec.31> 1955
1956
:
1955
: Amount
iPercent : Amount
.Percent

4,659

4,671

4,700

-12

-4l

21,146,983
12,065,945

20,086,7l4
11,910,541

18,313,006
11.021,823

1.060.269
155.404

5*88
1.30

2,83J,977
1,044,122

15.48
9.47

15,868,946
49.061.S71*
833,5*12
44,248.332

15,773.403
47,770.658
739.057
47,03l.W>i

14,897,268
95.543
44,232,097 1,311. » b
672,371
94.1*85
4$,55$.72b—i,2l6,73i

.61
277?
12.78
2^5

971.678
^.849.777
161.171
4,feg8,6ofe

6.52
10.9b
23*97
18^76"

31.675,780
4,305
31,680,085

31f036,665
3,662
31.040,327

33.686,583
4,223
33.b90.86b

639,115
643
63$.7$8

2.06
17,56
2.66

-2,010,803
82
-2,6l6,7gt

-5.97
1.94
-$.§7

7,025,220
1,561,566

7.056,565
1,681,609

6,993.984
1.955,466

-31,3^5
~120,043

-.44
-7.l4

31,236
-393,900

M
-20.14

336,521
W,503.392
88,751.724
1,706,507
11,467,048
13.908.942

232,852
TO,011,353
87,042,954
1,574,263
11,J06,822
10,475,651

217,074
42,857,336
86,417,056
1,388,250
11,337,484
13,037.706

3,669
4$2,639
1,708,770
132,244
160,226
3.433.291

1»58
19,447
1»23" -2,3$3,§38
1*96
2,334,668
ipio
318,257
1 # 42
129,564
32*77
871,236

8.96
-$«<9
2»70
22^93"
1*14
6.68

27,082,497
1,867,761

23.356,736
1.775,650

25,763,4to
1.569.791

3,725,761
92,111

15.95
5*19

1.319,057
297,970

5»lg
18.98

tfA?

other securities increased $190,000,000 to $1,850,000,000, Other loans, including loans to farmers, loans to banks, and other loans to individuals
(repair and modernization and installment cash loans, and single-payment loan*
were $9,000,000,000, a decrease of more than two percent in the three month
period* The percentage of net loans and discounts to total assets on December
1956 was 40*99 i& comparison with 4l#93

September and 38.29 in December 195

Investments of the banks in United States Government obligations on Decern
ber 31, 1956 aggregated $31,700,000,000 (including $4,300,000 guaranteed obligations), an increase of $600,000,000 since September 26. These investments
were nearly 27 percent of total assets. Other bonds, stocks and securities of
$8,800,000,000, which included obligations of States and political subdivision
of $7,000,000,000, were $100,000,000 less than in September. Total securities
held amounting to $^40,500,000,000 increased $500,000,000 in the period.
Cash of $1,700,000,000, reserve with Federal Reserve banks of $11,500,000
and balances with other banks (including cash items in process of collection) <
$13,900,000,000, a total of $27,100,000,000, showed an increase of $3,700,000,'
since September*
Borrowed money of $18,600,000 was down $700,000,000 and $89,000,000 in th
three and twelve month periods, respectively.
The capital stock of the banks on December 31, 1956 was $2,638,000,000, i
eluding $3,808,000 of preferred stock. Surplus was $4,139,000,000, undivided
profits $1,440,000,000 and capital reserves $255,000,000, or a total of
$5,834,000,000. Total capital accounts of $8,472,000,000, which were 7.88 per
of total deposits, were $31,000,000 more than in September when they were 8.3*4
percent of total deposits.

TREASURY DEPARTMENT
Comptroller of the Currency
Washington
RELEASE A.M. NEWSPAPERS
Thursday, M a r c h 287 1 9 5 7 .

H-1321

The total assets of national banks on December 31. 1956 amounted to
$117,700,000,000, it was announced today by Comptroller of the Currency
Ray M. Gidney. The returns covered the 4,659 active national banks in ths
United States and possessions. The assets were $5,500,000,000 more than
the amount reported by the 4,671 active banks on September 26, 1956, the
date of the previous call.
The deposits of the banks on December 31 were $107,500,000,000, an increase of $6,300,000,000 since September. Included in the recent deposit
figures were demand deposits of individuals, partnerships, and corporations of
$59,600,000,000, up $4,200,000,000, and time deposits of individuals, partnerships, and corporations of $26,300,000,000, up $300,000,000. Deposits of the
United States Government of $2,300,000,000 decreased $700,000,000 in the
quarter; deposits of States and political subdivisions of $7,500,000,000 increased $600,000,000, and deposits of banks amounted to $9,800,000,000, an increase of $1,400,000,000. Postal savings were $12,700,000 and certified and
cashiers1 checks, etc., were nearly $2,000,000,000.
Net loans and discounts on December 31, 1956 were $48,200,000,000, an increase of $1,200,000,000 since September. Commercial and industrial loans of
$21,100,000,000 were up $1,000,000,000, and loans on real estate of $12,000,0C
were up $150,000,000. Retail automobile installment loans increased $4,000,0C
and amounted to $3,500,000,000. Other types of retail installment loans of
$1,460,000,000 increased $110,000,000. Loans to brokers and dealers in securi
and other loans for the purpose of purchasing or carrying stocks, bonds, and

- i: ]
f— v- \y

TBEASURY DEPARTMENT
Comptroller of the Currency
Washington
BELEASE A.M. NEWSPAPERS
Thursday, M a r c h 2 8 , 1 9 5 7 .

The total assets of national banks on December 31. 1956 amounted to
$117,700,000,000, it was announced today by Comptroller of the Currency
Bay M. Gidney. The returns covered the 4,659 active national banks in ths
United States and possessions. The assets were $5,500,000,000 more than
the amount reported by the 4,671 active banks on September 26, 1956, the
date of the previous call.
The deposits of the banks on December 31 were $107,500,000,000, an increase of $6,300,000,000 since September. Included in the recent deposit
figures were demand deposits of individuals, partnerships, and corporations of
$59,600,000,000, up $4,200,000,000, and time deposits of individuals, partnerships, and corporations of $26,300,000,000, up $300,000,000. Deposits of the
United States Government of $2,300,000,000 decreased $700,000,000 in the
quarters deposits of States and political subdivisions of $7,500,000,000 increased $600,000,000, and deposits of banks amounted to $9,800,000,000, an increase of $1,400,000,000. Postal savings were $12,700,000 and certified and
cashiers' checks, etc., were nearly $2,000,000,000.
Net loans and discounts on December 31, 1956 were $48,200,000,000, an increase of $1,200,000,000 since September. Commercial and industrial loans of
$21,100,000,000 were up $1,000,000,000, and loans on real estate of $12,000,000,000
were up $150,000,000. Retail automobile installment loans increased $4,000,000
and amounted to $3,500,000,000. Other types of retail installment loans of
$1,460,000,000 increased $110,000,000. Loans to brokers and dealers in securities,
and other loans for the purpose of purchasing or carrying stocks, bonds, and

other securitiss increased $190,000,000 to $1,850,000,000. 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 $9,000,000,000, a decrease of more than two percent in the three month
period. The percentage of net loans and discounts to total assets on December 31,
1956 was 40.99 la comparison with 4l.93 la September and 38.29 in December 1955.
Investments of the banks in United States Government obligations on December 31, 1956 aggregated $31,700,000,000 (including $4,300,000 guaranteed obligations), an increase of $600,000,000 since September 26. These investments
were nearly 27 percent of total assets. Other bonds, stocks and securities of
$8,800,000,000, which included obligations of States and political subdivisions
of $7,000,000,000, were $100,000,000 less than in September. Total securities
held amounting to $40,500,000,000 increased $500,000,000 in the period.
Cash of $1,700,000,000, reserve with Federal Reserve banks of $11,500,000,000,
and balances with other banks (including cash items in process of collection) of
$13,900,000,000, a total of $27,100,000,000, showed an increase of $3,700,000,000
since September.
Borrowed money of $18,600,000 was down $700,000,000 and $89,000,000 in the
three and twelve month periods, respectively.
The capital stock of the banks on December 31, 1956 was $2,638,000,000, including $3,808,000 of preferred stock. Surplus was $4,139,000,000, undivided
profits $1,440,000,000 and capital reserves $255,000,000, or a total of
$5,834,000,000. Total capital accounts of $8,472,000,000, which were 7.88 percent
of total deposits, were $31,000,000 more than in September when they were 8.34
percent of total deposits.

Statement showing comparison of principal items of assets and liabilities of active national banks
as of December 31, 1956, September 26, 1956 and December 31, 1955

tCd

(in thousands of dollars)
Dec. 31,
1956

Sept. 26,
1956

i Increase or decrease s Increase or decreas
Dec. 31, : since Sept. 26, 1956 * since Dec.31, 1955
1955
: Amount
.-Percent : Amount
:Percent

4,700
-12
4,671
4,659
lumber of banks
ASSETS
Commercial and industrial loans
21,146,983
20,086,714
18,313,006
1,060,269
[loans on real estate
12,065,945
11,910,541
11,021,823
155.404
Ml other loans, including overdrafts
15,868,946
15,773.^3
14,897,268
95.543
Total gross loans
^9*081,87**
W77W^5^
44, 232,097 i,3ii»2~~~~
Less valuation reserves......
833*542
739,057
672,371
94,485
Net loans
*J8,248,332
"+T~olI76oi4X55977151,216,731
F. S, Government securities:
33,686,583
639,115
Direct obligations
31*675,720
31.036,665
Obligations fully guaranteed
4,305
3.662
4j223
643
Total U. S. securities
31,680,085
31,0^0,327
33,b30.S'0l>
639.758
Jbligations of State3 and. politi7,025,220
7.056,565
6,993.984
-31.345
cal subdivisions....
1,561,566
1,681,609
1.955.466
-120,043
Ither boiida, notes and debentures...
Corporate stocks, including stocks
236,521
232,852
217,074
3.669
of Federal Reserve banks...
^.503.392
40,on ,353
42,857.330"
492,039"
Total securities.....
88.751,724 87,042,954
86,417.056
1,708.770
Total loans and securities.
1,706,507
1,574,263
1.3887250
132,244
«••• • . . . « « » . . .
Jurrency and coin
ll,467,0»48 11,306,822
11,337,484
160,226
iesarve with Federal Reserve banks.. 13,908.942 10.475.651
13.037.706
3.433.291
BalanceB «i th other banks
Total cash, balances with other
banks, including reserve balances and cash items is process of collection.....
27.082,497
23.356.736
25.763.440
3,725,761
)ther assets
1.867.7&1
1.775,650
1,569.791
92,111
Total assets
117,701.982 112,175.340
113.750.287
5,526,642
9B^mmm-%*amm**mm^m>mmm*^m*mm^aM^^mmu*m^mir^imm****^B9^mm*m%mm*.-mm:^Bmm

fm^-mt•PAMT-%m*

. • .

j .

•

mt*» •»•!! \^m*m^^^mm+mi-^mm^mii\mu H I . B . J H .Wm^jm%vmTe^^tF'*~?m^^B^^Mimm9*G*--~immmmmVmmmmmpmWmmmm' »-—-gee

-41
5.28
1.30

2,833.977
1,044,122

15.te
9.U7

.61 971.678 6,52
TTfi
4,849,777
12.78
161,171
""2759
4,b88,b0b

10T9F
23.97
10775"

2.06 -2,010,803
17.56
82
2.0b -2,010,721

-5.97
1.94
-5.97

-.44
-7.14

.45
-20.14

1.58
1.23
1.96
8l40
1.42
32.77

31,236
-393.900

19,447 8.96
-2,353,938
-5.49
2,334,668
2.70
318,2*57
22.93
129,564
1.14
871,236
6.68

15.95
5.19

1.319.057
297.970

5.1g
18.98

4.93

3.951.695

-S.U7

Dec. 31,
1956

(in thousands of dollars)
:Increase or decrease :Increase or decrease
Dec. 31,
;since Sept. 26, 1956 tsince Dec. 31. 1955
1955
Amount
: Percent t Amount
: Percent

LIABILITIES
jposits of individuals, partnerships, and corporations;
58,192,878
Deaand
59.582,348 55,373,256
25,976,713
25.151.538
Time
26,270,576
sposits of U. S. Government..
2.347.519
3.090,947
2.351.299
jstal savings deposits
12.751
12,856
13,086
jposits of States and political
7,341,424
7,467,413 6,897,426
subdivi sions
8,437,734
9,320.515
9,850,100
sposits of banks....
sher deposits (certified and
1,964,116
1,434,095
1,847,249
cashiers' checks, etc.)
101,223,027 104,217,559
Total deposits
107,494,823
.lis payable, rediscounts, and
749,376 107,796
other liabilities for borrowed
1,761,894
1,488,573
money
18,654
;her liabilities
,,
1,716,373
Total liabilities, excluding
capital accounts
109,229.850 103,734,297 105,814,358
CAPITAL ACCOUNTS
3.843
4,166
ipital stock:
2.593,270
2,468.458
Preferred
3,808
27b3S,10g
Total
2,5*9^.113
2,472,b24
Coanon
2,634,300
4,044,111
4,138.733
3.828,335
irplus
1,439.937
1.541,333
1,368,808
idivided profits
255.304
258,486
266,162
jservec
Total surplus, profits and
5,854,024
5.843,930
5,463^305
reserves
,
•S74~Y2,132
8,441,043
779l5.9y
Total capital accounts....,
Total
liabilities
capital
accounts and
117,701,982 112,175,340 113,750,287
Percent
ATI0S:
Percent
Percent
27.67
U.S.Gov't securities to total assets
26.92
29.62
41.93
Loans & discounts to total assets...
40.99
38.29
8.34
C-ipital accounts to total deposits..
7.88
7.61
•""—^-•

• — L ^

— i * ^ . ^ —

•

•• 11

1 •

« « — ^ —

1 r

•

C~m

4,209,092
7.60
293.863
1.13
-743,428 -24.05
-105
-.82

1,389,470
1,119,038
-3,780
-335

2.39
4.45
-.16
-2.56

569.987
1,412,366

8.26
16.74

125,989
529.585

1.72
5.68

530,021
672717796

36.96
6.20

116,867
3.276,834

-ML

-730,722 -97.51
- 45,521 -2.58

-89,142
227,800

-82.70
15.30

3714

5.495.553

5.30

3.415,492

3.23

-35
41,030
"P0395
947F72
-101,396
-3,182

-.91
1.58
T75S"
2734*
-6.58
-1.23

-358
165,842
165,484"
310,448
71,129
-10,858

-8.59
6.72

-.17

-9.906
3LOi»9

"*73T

370.719
536,203

5.526.642

4.93

3,951,695

-5759

HOTS: Minus sign denotes decrease,

8.11
5.20
-4.08

6.79
TT75"
3.47

- 3-' ^ J

or by any local taxing authority. For purposes of taxation the amount of disco
at which Treasury bills are originally sold by the United States is considered
be interest. Under Sections k$k (b) and 1221 (5) of the Internal Revenue Code
19S>h the amount of discount at which bills issued hereunder are sold is not
considered to accrue until such bills are sold, redeemed or otherwise disposed <
and such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereun<
need include in his income tax return only the difference between the price paix
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. Copi*
of the circular may be obtained from any Federal Reserve Bank or Branch.

- 2
AL&HA

2 percent of the face amount of Treasury bills applied for, unless the tenders
accompanied by an express guaranty of payment by an incorporated bank or trust
company.
Immediately after the closing hour, tenders will be opened at the Federal
serve Banks and Branches, following which public announcement will be made by t
Treasury Department of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly reserves the right to accept or reject any <
all tenders, in whole or in part, and his action in any such respect shall be
final. Subject to these reservations, noncompetitive tenders for $200,000 or 1<
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 accepte(
tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on April 4, 1957 , in cash or other immediately available fane
or in a like face amount of Treasury bills maturing April 4, 1957 . Cast
and exchange tenders will receive equal treatment. Cash adjustments will be mac
for differences between the par value of maturing bills accepted in exchange ark
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, ar
loss from the sale or other disposition of Treasury bills does not have any
special treatment, as such, under the Internal Revenue Code of 195b- The bills
are subject to estate, inheritance, gift or other excise taxes, whether Federal
or State, but are exempt from all taxation now or hereafter imposed on the princ
or interest thereof by any State, or any of the possessions of the United States

n r;

TREASURY DEPARTMENT
Washington

, j

A. M.

R8K RELEASE/ MHKKXKX NEWSPAPERS,
Thursday9 March 28, 1957
.

/ -y

J-

m^Sl

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 hourf/4j» o'clock p.m., Eastern Standard time, Monday, April 1, 1957

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

TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE A.M. NEWSPAPERS,
Thursday, March 28, 1957 *

H-1322

The Treasury Department, by this public notice, invites tenders
for $1,600,000,000, or thereabouts, of 92-day Treasury bills, for
cash and in exchange for Treasury bills maturing April 4, 1957*
in the amount of $1,599*988,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated April 4, 1957,
and will mature July 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 closing hour, one-thirty o'clock p.m., Eastern Standard time,
Monday, April 1, 1957.
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
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 Banl
on April 4, 1957*
in cash or other immediately available funds
or in a like face amount of Treasury bills maturing April 4, 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 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

Wednesday, March 27, 1957.
ffae treasury Department toda? announced the subscription ana allotment figure*
reapeot to the current cash offering of ^2,250 million of 3*3/8 percent Treasury Cej
cates of Indebtedness of Series A-133B, and $750 million of 3-1/2 pereeat treasury I
of Series A*I960. Both issues are dated February 15, 1957; vitb interest f e w March
The certificates vlll mature February 14, 1958, and the notes on May 15, i960*
BubacriptiooB and allotments were divided among the several Federal Beeem
and the Treasury aa fbllovs:
Series .A-1958 Certificates

Series A*1S60 Jettt

federal Reserve
District

Total Suhscrip*
tlosis Received

total Subscriptions Allotted

Total Subscription* aeceiwi

Total: &

Boston
lev York

% 310,150,000
1,337,635,000
194,473,000
308,880,00^
Zli,6OS,Q0d
22?,$45,00g
JGE,335,000
253,027,000
3SO#«37,000
217,141,000
322,238,000
621,784,000
8,O0Q

'$ 42,22C
244,236
30,665

. ' .1 l ^Jm3t^Jmt~L^^lmm

Cleveland
Atlanta
Chicago
£t» Louie
MlmuH^oliu
'•-u^aas City
Ptfcllae
Ban Francisco
TreasuryGov* DLW* Aeeta.
TCSAL

389,387,000
2,614,741,000
372,04,000
440,8*09,000
302,400,000
355,460,000
998,871,000
280,942,000
332,744,000
252,165,000
4X1,624,000
913,041,000
1,500*000
*»

$7,433,838,000

118,058,000
316,050,000
mmmm%) ,Oy f , Q 0 0

us,
7m, ooo
103,085,000
124,645,000
333,118,000
93,284,000
53,816,000
92,921,000
141, Jy:> ,000
886,632,000
405,000
•m

tlons Al

DO ,991

56,776
S8,9M
43,481
43,051
37,5M
40,411
48,538
79,686
6
100,000
$942,486

$2,437,043,000 .
'

TREASURY DEPARTMENT
WASHINGTON, D.C.
EDIATE RELEASE,
Inesday, March 27, 1957

H-1323

The Treasury Department today announced the subscription and allotment figures with
jpect to the current cash offering of $2,250 million of 3-3/8 percent Treasury Certifies of Indebtedness of Series A-1958, and $750 million of 3-1/2 percent Treasury Notes
Series A-1960. Both issues are dated February 15, 1957, with interest from March 28.
» certificates will mature February 14, 1958, and the notes on May 15, 1960.
Subscriptions and allotments were divided among the several Federal Reserve Districts
1 the Treasury as follows:
Series A-1958 Certificates
leral Reserve
strict
3ton
ir York
Lladelphia
sveland
:hmond
Lanta
Lcago
i Louis
ineapolis
leas City
Has
I Francisco
sasury
)V. Inv. Accts.
TOTAL

Total Subscriptions Received
$

369,987,000
2 ,614,741,000
372,514,000
440,809,000
302,490,000
355,460,000
998,871,000
280,942,000
152,744,000
252,165,000
431,624,000
915,041,000
1,500,000
-

$7 ,488,888,000

Total Subscriptions Allotted
$

118,058,000
816,050,000
120,557,000
143,346,000
103,085,000
124,645,000
333,118,000
98,264,000
58,816,000
92,921,000
141,056,000
286,662,000
465,000
-

$2 ,437,043,000

Series A-1960 Notes
(Total Subscriptions Received

Total Subscriptions Allotted

$ 310,150,000
1,957,635,000
194,473,000
398,860,000
211,605,000
227,245,000
962,835,000
253,027,000
190,637,000
217,141,000
322,238,000
621,784,000
6,000

$ 42,220,000
244,238,000
30,665,000
56,994,000
36,776,000
38,854,000
143,484,000
43,058,000
37,510,000
40,416,000
48,539,000
79,666,000
6,000
100,000,000

$5,867,636,000

$942,426,000

Under Secretary of the Treasury W. Randolph Burgees and
Ambassador Mariano Puga of Chile today signed an Agreement extending for a period of one year the Exchange Agreement between
the United States and Chile originally Instituted a year ago.
The Agreement is designed to assist 4iile in its continuing
efforts to achieve economic stability and freedom for trade and
exchange transactions. Under the Agreement, the U. S. Exchange
Stabilization Fund undertakes to purchase Chilean pesos up to an
amount equivalent to $10 million, should the occasion for such
purchase arise*
The International Monetary Fund has announced renewal of
its standby arrangement with Chile in the amount of #35 million
and the Treasury is informed that certain Hew York banks have
renewed credit lines amounting to $30 million, thus continuing
total standby facilities of $75 million for Chile.

CRHarlev $ def: aoh-3/27/57

fsW

TREASURY DEPARTMENT
WASHINGTON, D.C.

FOR IMMEDIATE RELEASE,
Monday, April 1, 1957.

H-1324

Under Secretary of the Treasury W. Randolph Burgess
and Ambassador Mariano Puga of Chile today signed an
Agreement extending for a period of one year the
Exchange Agreement between the United States and Chile
originally instituted a year ago.
The Agreement is designed to assist Chile in its
continuing efforts to achieve economic stability and
freedom for trade and exchange transactions.

Under

the Agreement, the U. S. Exchange Stabilization Fund
undertakes to purchase Chilean pesos up to an amount
equivalent to $10 million, should the occasion for
such purchase arise.
The International Monetary Fund has announced
renewal of its standby arrangement with Chile in the
amount of $35 million and the Treasury is informed
that certain New York banks have renewed credit lines
amounting to $30 million, thus continuing total standby
facilities of $75 million for Chile.

oOo

RELEASE A. M. NEWSPAPERS,
Tuesday, April 2, 1957*

762

1—
(

/ } 9

The Treasury Department announced last evening that the tenders for $1,600,000
or thereabouts, of 92-day Treasury bills to be dated April k and to mature July 5, ;
which were offered on Kerch 28, were opened at the Pederal Reserve Banks on April 1
The details of this issue are as follows:
Total applied for - 12,365,827,000
Total accepted
- 1,600,272,000

(includes $329,366,000 entered on a
noncompetitive basis and accepted in
full at the average price shewn below)

Range of accepted competitive bides
High - 99*21*1 Equivalent rate of discount 2.970* per annua
Low
- 99.218
»
»
it
«

3.060$ •

Average - 99.221 « n * * approx. 3.050* per anni
(65 percent of the amount bid for at the low price was accepted)
Federal Reserve
District

Total
Applied for

ToUl
Accepted

Boston
lew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louie
Minneapolis
Kansas City
Dallas
San Francisco

$
32,060,000
1,586,505,000
31,519,000
70,109,000
17,302,000
28,752,000
289,901,000
37,356,000
3k,021,000
67,833,000
It 7,080, 000
123,079,000

TOTAL

•2,365,827,000

*l,6OO,272,00C

21,353,000
98l,O2li,00G
16,369,00C
65,1«19,00C
16,952,OOC
26,19O,00C
201,55l,OOC
37,356,00C
31,815,00c
6l,O59,00C
33,080,OOC
108.1C4.OOC

TREASURY DEPARTMENT
WASHINGTON, D.C.
LEASE A. M. NEWSPAPERS,
esday, April 2, 1957.

H-1325

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

thereabouts, of 92-day Treasury bills to be dated April k and to mature July 5, 19

ich were offered on March 28, were opened at the Federal Reserve Banks on April 1.
The details of this issue are as follows:
Total applied for - $2,365,827,000
Total accepted
- 1,600,272,000

(includes $329,386,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids:
High - 99• 2I4I Equivalent rate of discount 2.970% per annum
Low
- 99.218
«
n
u
n
3.060# *
Average - 99.221

it it n approx. 3.050£ per annum

(65 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

$
32,060,000
1,586,505,000
31,519,000
70,^19,000
17,302,000
28,752,000
289,901,000
37,356,000
3U,021,000
67,833,000
17,080,000
123,079,000

$2,365,827,000

$1,600,272,000

TOTAL

21,353,000
98l,02l*,000
16,369,000
65,1*19,000
16,952,000
26,190,000
201,551,000
37,356,000
31,815,000
61,059,000
33,080,000
108,10U,000

- 2 The E Bonds which the Treasury has been offering sell
for 75$ of their face value and the bonds yield 3% when held 1
their maturity of 9 years and 8 months. If this bill is pass*
the Treasury proposes to leave the issue price and face value
of the new E Bonds unchanged. The increase in the interest
return from 3% to 3-1/4$ would be accomplished by shortening
the term of the bond from 9 years and 8 months to 8 years and
11 months.
We also propose to increase the redemption values of new
bonds to provide a substantially higher yield to owners who
find it necessary to cash their bonds early. The return on
the new bond when held for 3 years,for example, would be 3%
compared with 2-1/4$ at present.
The Treasury also plans to offer, effective February 1,
1957, a revised 10-year Series H savings bond, paying interest
each 6 months by check, with yields generally comparable to
the new E Bond.
I should like to submit a number of tables which show the
facts with respect to the sale and redemption of savings bonds
and the changes in interest rates.

STATEMENT OF W. RANDOLPH BURGESS, UNDER
SECRETARY OF THE TREASURY, BEFORE THE
SENATE FINANCE COMMITTEE ON H#R# 5520,
THURSDAY, MAR0II *2Q', '1937

4. ^mfi \J

I am glad to be with you today in support of H.R. 5520,
which would raise the ceiling on the interest which the
Treasury can pay on savings bonds.
The savings bonds program has played an important role ir
our national life ever since it was first introduced in 1935.
There are now more than $4l billion of Series E and H savings
bonds outstanding in the hands of about 40 million investors.
This program has been a principal means of achieving a wide
distribution of the public debt in the hands of individuals.
There are approximately 8 million people now buying bonds
through payroll savings plans alone. The program is encouraging thrift at a time when the Nation requires additional
savings to balance spending and avoid inflation.
Savings bonds have many unique qualities. They are free
from market fluctuations. They are protected against loss.
They are easy to purchase and easy to redeem.
For the vigorous continuation of the program it is also
essential jthat th^ * ^ — - rt
' ~~
j f eel that he is
Lngs. With increases
gs during recent year
^Tis simply to give the millions of small
interest on new E
fe^rs^of Savings Bonds the benefit of the pose of the present
Merest rates the large buyers of bonds arequested from the
have given the
already receiving.
o interest rates on
lypes of Treasury
-.^MJ-UJLC; rai;e is 4-1/4$. H.R. 5520,
m
which has just been passed, fixes the savings bond ceiling at
3-1/2$. While the greater flexibility suggested by the
Treasury is preferable, H.R. 5520 would enable the Treasury
to put into effect its plans to increase from 3$ to 3-1/^$
the yield to maturity on all E and H bonds sold beginning
February 1, 1957, and would provide some additional flexibilit;
to meet possible future changes in conditions. We are therefore prepared, in the interest of prompt action, to accept
H.R. 5520, as passed by the House of Representatives.

iU
/ /

TREASURY DEPARTMENT
Washington

STATEMENT OF W, RANDOLPH BURGESS, UNDER
SECRETARY OF THE TREASURY, BEFORE THE
SENATE FINANCE COMMITTEE ON H.R# 5520,
WEDNESDAY, APRIL 3, 1957
I am glad to be with you today in support of H.R. 5520,
which would raise the ceiling on the interest which the Treasury
can pay on savings bonds.
The savings bonds program has played an important role in
our national life ever since it was first introduced in 1935.
There are now more than $4l billion of Series E and H savings
bonds outstanding in the hands of about 40 million investors.
This program has been a principal means of achieving a wide
distribution of the public debt in the hands of individuals.
There are approximately 8 million people now buying bonds
through payroll savings plans alone. The program is encouraging thrift at a time when the Nation requires additional
savings to balance spending and avoid inflation.
Savings bonds have many unique qualities. They are free
from market fluctuations. They are protected against loss.
They are easy to purchase and easy to redeem.
For the vigorous continuation of the program it is also
essential that the buyer of savings bonds feel that he is
getting a fair interest return on his savings. With increases
in interest rates on other types of savings during recent years,
a modest upward adjustment in the rate of interest on new E
and H bonds is indicated. That is the purpose of the present
legislation. It is simply to give the millions of small buyers
of savings bonds the benefit of the interest rates the large
buyers of bonds are already receiving.
The legislation which the Treasury requested from the House
of Representatives in February would have given the Treasury the
same discretion with regard to interest rates on savings bonds
that is permitted on other types of Treasury bonds. That
maximum permissible rate is 4-1/4$. H.R. 5520, which has just
been passed, fixes the savings bond ceiling at 3-1/2$. While
the greater flexibility suggested by the Treasury is preferable,
H.R, 5520 would enable the Treasury to put into effect its plans
to increase from 3$ to 3-1/4$ the yield to maturity on all E and
H bonds sold beginning February 1, 1957, and would provide some
additional flexibility to meet possible future changes in
conditions.
We are therefore prepared, in the interest of prompt
H-1326

o -»<->

action, to accept H.R. 5520, as passed by the House of
Representatives.
The E Bonds which the Treasury has been offering sell for
75$ of their face value and the bonds yield 3$ when held to
their maturity of 9 years and 3 months. If this bill is passed,
the Treasury proposes to leave the issue price and face value
of the new E Bonds unchanged. The increase in the interest
return from 3$ to 3-1/^$ would be accomplished by shortening the
term of the bond from 9 years and 8 months to 8 years and
11 months.
We also propose to increase the redemption values of new
bonds to provide a substantially higher yield to owners who find
it necessary to cash their bonds early. The return on the
new bond when held for 3 years, for example, would be 3$
compared with 2-1/4$ at present.
The Treasury also plans to offer, effective February 1,
1957, a revised 10-year Series H savings bond, paying interest
each 6 months by check, with yields generally comparable to the
new E Bond.
I should like to submit a number of tables which show the
facts with respect to the sale and redemption of savings bonds
and the changes in interest rates.

Table 1
Savings Bonds Outstanding
All Series

.
.
.
.
.
.

(In millions of dollars)

December 31s
19*5

!
I

Total
E & H

1 F, O, J, K 1T o t a l

a11

. series 1/

30,727

13,979

*8,22*

19k6........

30,263

16,366

*9,86*

19*7.

30,997

18,31*

52,17*

19*8.

32,188

20,613

55,197

19*9

33,766

21,501

56,910

1950,

3*,*93

23,089

58,2*8

1951

3*,727

22,859

57,739

1952.

35,1*3

181

35,32*

22,616

58,046

1953.

36,036

627

36,663

21,190

57,93*

355*.

36,778

1,*55

38,233

20,058

58,358

1955.

37,510

2,553

*0,o63

18,*32

58,5*8

1956,

38,087

3,310

41,398

15,576

57,018

1957:
January 31*•

38,066

3,365

41,1*30

15,096

56,570

February 28.

38,058

3,392

*1,*50

l4,82*

56,317

March 31....

38,0*5

3,*18

*1,*63

1*,563

56,068

Office of the Secretary of the Treasury
Analysis Staff, Debt Division
l/ Includes Series A - D.

*>mm

Table 2
E and H Savings Bonds
Outstanding
(in millions of dollars)

Issue
price

Series S
: Accrued : Total
: discount :

Series
H

Series E and H
Issue
Accrued
Total
price
discount

scember 31
levels:

1945.........
1946...
1947
1948
1949
1950
1951
1952..
1953
1954
1955..
1956
irch 31
1957....

30,164
29,300
29,571
30,220
31,152
31,153
30,655
30,427
30,723
30,876
31,197
31,317

563
963
1,*26
1,968
2,612
3,3*0
*,072
*,715
5,312
5,903
6,313
6,770

30,727
30,263
30,997
32,188
33,766
3*,*93
3*,727
35,1*3
36,036
36,778
37,510
38,087

181
627
1,*55
2,553
3,310

6,855

38,0*5

3,*l8

31,190

'flee of the Secretary of the Treasury
Analysis Staff, Debt Division

30,16*
29,300
29,571
30,220
31,152
31,153
30,655
30,608
31,350
32,331
33,750
3*,627
3*,6o8

563
963
1,*26
1,968
2,612
3,3*0
*,072
*,715
5,312
5,903
6,313
6,770
6,855

30,727
30,263
30,997
32,188
33,766
3*,*93
3*,727
35,32*
36,663
38,233
*0,o63
*1,398
*1,*63

Table 3

t~ I J

Monthly Sales and Redemptions of Series E and H Savings Bonds
(in millions of dollars)

Cash gain or loss
Calendar years:

*,036

-846

1952 3,575

*,098

1953 4,368

1955 5,368

*,157
4,444
*,652

-523
211

1956 5,043

*,832

717
211

1951

3,190

1954 4,889

445

Monthly:
1955:
January
February
March
April
May
June
July
August
September
October
November
December

573
465
518
kkQ
419
428
439
439
klk
4oU
395
425

40*
3*3
4o6
376
392
437
402
399
393
358
358
383

169
122
112
72
28
-9
37
40
21
46
36
42

January
February
March
April
May
June
July..
August.......
September.
October
November
December

572
476
465
4l4
4l8
398
443
403
335
390
366
363

450
368
400
402
412
405
431
414
380
411
368
392

122
108
65
11
6
-6
11
-11
-45
-21
-2
-29

January
February
March

465
361
365

547
426
438

-82
-65
-73

1956:

19572

„

Office of the Secretary of the Treasury
Analysis Staff, Debt Division

y?Q
Ky

Table 4
E and H Bond Share of Individual Savings
Annual Changes in Savings
(in millions of dollars)

Mutual : Com1!, bank
savings : time deposits
banks : (individuals)

Calendar
years
mmjjj)

......

Total

: Percent
: E & H of
: total

+9,322

14.4#

+3,641

+1,774

+2,568

+1,339

+4,415

+1,964

+2,526

+1,571

+10,476 15.O

+4,965

+1,837

+1,561

+1,830

+10,193 18.0

+5,110

+1,836

+1,993

+1,335

+10,275 13.0

Office of the Secretary of the Treasury
Analysis Staff, Debt Division

Table 5
Market Rate for 10-Year Maturities at the Time
Savings Bond Maturity Yields Were Set

Series

Savings bonds
Date first offered

i
A

March 1, 1935

^ufity
: yield

10-year rate
on marketable
bonds l/

2.9056 2/

2.78# 2/

E (original).. May 1, 19^1

2.90 3/

1.75 2/

E (present)... May 1, 1952

3.00

2.53

E (proposed).. February 1, 1957

3.25

3.23 4/

Office of the Secretary of the Treasury
Analysis Staff, Debt Division
l/
2/
3/
4/

Based on market pattern of rates.
Partially tax-exempt.
Fully taxable.
Market rate on February 13, 1957, the day before the
announcement.

/ r* ^
Table 6

k. w

E Bonds Outstanding Prior to First Maturity
Redemption Values and Investment Yields
(Based on $75 Bond - Issue Price)
Number of years held
after issue date

: Redemption - . " ^ *°;*
\ value
; ^ e ^ iod / s P « r i ° d *°
:
: held 1/ ; maturity 2/

Bonds issued beginning May 1952
0 - 1/2 $ 75.00
1/2 - 1
1
- 1-1/2
1-1/2 - 2
2
- 2-1/2
2-1/2 - 3
3
- 3-1/2
3-1/2 - 4
4
- 4-1/2
4-1/2 - 5
Bonds issued before May 1952
4-1/2 - 5 * 81.00
5
- 5-1/2
5-1/2 - 6
6
- 6-1/2
6-1/2 - 7
7
- 7-1/2
7-1/2 - 8
8
- 8-1/2
8-1/2 - 9
9
- 9-1/2
9-1/2 - 10
10 years (1st maturity)....

75.40
76.20
77.20
78.20
79.20
80.20
81.20
82.20
83.60

82.00
83.00
84.00
86.00
88.00
90.00
92.00
94.00
96.00
98.00
100.00

Office of the Secretary of the Treasury
Analysis Staff, Debt Division
l/ To beginning of each accrual period.
2/ From beginning of each accrual period

l.07#
1.59
1.94
2.10
2.19
2.25
2.28
2.30
2.43

1.725&
1.79
1.85
1.90
2.12
2.30
2.45
2.57
2.67
2.76
2.84
2.90

3.00%
3.10
3.16
3.19
3.23
3-28
3.34
3.41
3.49
3.50

3.87*
4.01
4.18
4.41
4.36
4.31
4.26
4.21
4.17
4.12
4.08

- 3-

or by any local taxing authority. For purposes of taxation the amount of disco
at which Treasury bills are originally sold by the United States is considered
be interest. Under Sections h$k (b) and 1221 (5) of the Internal Revenue Code
V)$h the amount of discount at which bills issued hereunder are sold is not
considered to accrue until such bills are sold, redeemed or otherwise disposed
and such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereun
need include in his income tax return only the difference between the price pai
for such bills, whether on original issue or on subsequent purchase, and the
amount actually received either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. Itl8, Revised, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue. Copi<
of the circular may be obtained from any Federal Reserve Bank or Branch.

- 2 -

2 percent of the face amount of Treasury bills applied for, unless the tenders ;
accompanied by an express guaranty of payment by an incorporated bank or trust
company.
Immediately after the closing hour, tenders will be opened at the Federal 1
serve Banks and Branches, following which public announcement will be made by tl
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 c
all tenders, in whole or in part, and his action in any such respect shall be
final. Subject to these reservations, noncompetitive tenders for $200,000 or le
without stated price from any one bidder will be accepted in full at the average
price (in three decimals) of accepted competitive bids. Settlement for accepted
tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on April 11. 1957 , in cash or other immediately available fund

£5

or in a like face amount of Treasury bills maturing
April 11, 1957
. Cash
and exchange tenders will receive equal treatment. Cash adjustments will be mad
for differences between the par value of maturing bills accepted in exchange 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, ar
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$h. The bills
are subject to estate, inheritance, gift or other excise taxes, whether Federal
or State, but are exempt from all taxation now or hereafter imposed on the princ
or interest thereof by any State, or any of the possessions of the United States

!,c;o*« <>:«>•''•«
TREASURY DEPARTMENT
Washington

LJ _ / 3

A. M.
mSL RELEASE/ HDBKKXKS NEWSPAPERS,
Thursday, April 4, 1957
.

The bills of this series will be

dated April 11, 1957 , and will mature July 11, 1957 , when the fa<
m

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,/km o'clock p.m., Eastern Standard time, Monday, April 8, 1957
m

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

Each tendf

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

TREASURY DEPARTMENT

WASHINGTON, D.C.

RELEASE A.M. NEWSPAPERS,
Thursday, April 4, 1957.

H-1327

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 April 11, 1957*
in the amount of $1,600,455,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated April 11, 1957,
and will mature July 11, 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, April 8, 1957.
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

'"* mt

—

RELEASE |P.rK. NEWSPAPERS;
Tuesdayffrpgil 9, 1957 *
The Treasury Department announced last evening that the tenders for $1,600100
or thereabouts y of 91-daysf**aeuiy bills to tee dated tApril 11 and to mature #uyr

1957, which were offered on April h, were opened at the Federal Reserve Banks on A]
The details oi vums^i»»ue mre'M IOIJLOWH
any exemption, as sucn. u;
f ^ l T f f ^ \ » 3 f c ^ - $2,551,135,000
t $ M e & < W W e * n t - - i f 600 f ?$3 f 000 (includes $378,398,000 catered o* eject
aoncompetitive basis.and accepted in d
full at the average msicejftffiB JtafcUf^n
Range of accepted competitive hides (Excepting fear tenders tetaling $780fOi
•9

High
tow "
Average 99.203

99.221 Bquivalent rate ef dieeoent approx. 3.082* per «u
99.200

(26 percent of the e*6inife bid for at the loir price wae accepted) e s ;
Federal Reserve
District' c U e

foUl
Applied' for a t

ToUl
A'ccptedt;..'

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

31,710,000
1,71*8,679,000
39,l»0tj,O0Q
79,lll3,0©0:
22,830,000
U8,1?1,000
263,1(142,000
1*9,71*2,000
25,1*06,000
70,68U,000
US,621,000
126,333.000

20,210,00
930,259,00

2U,l*ai*,oo
Tit,ia3,oo
SI,630,CO
1*3,231,00
199,582,00
1*9,71*2,00
2l(,381«,O0
. 62,lt61>,00
36,1401,00
112.893,00

r-4

TOTAL

$2,551,1*35,000

$1,600,753,00

TREASURY DEPARTMENT
WASHINGTON, D.C.
UBASE A. M. NEWSPAPERS,
iesday, April 9, 1957.

H-1328

The Treasury Department announced last evening that the tenders for $1,600,000,000,
• thereabouts, of 91-day Treasury bills to be dated April 11 and to mature July 11,

•57, which were offered on April h, were opened at the Federal Reserve Banks on April 8
The details of this issue are as follows 2
Total applied for - $2,55l,U35,000
Total accepted
- 1,600,753,000

(includes $378,398,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids? (Excepting four tenders totaling $780,000)
High
Low

- 99.221 Equivalent rate of discount approx. 3.082? per annum
M
3.165? »
- 99.200
tl
If
w
II

Average

- 99.203

3.15W

(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

TOTAL

31,710,000
1,71*8,679,000
39,ltOU,000
79,1*13,000
22,830,000
1*8,171,000
263,1*1*2,000
1*9,71*2,000
25,1*06,000
70,68^,000
16,621,000
126,333,000

$2,551,1*35,000

20,210,000
930,259,000
2i*,l*0U,000
71*, 1*13,000
22,830,000
1*3,231,000
199,522,000
1*9,71*2,000
2l*,381*,000
62,1*61*, 000
36,1*01,000
112,893,000

%1,600,753,000

S T A T U T O R Y D E B T LIMITATION
AS OF. ^ ^ J l , . 19.57

Washington,
.&Z£J,M
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 gua
anteed obligations as may be held by the Secretary of the Treasury), "shall not exceed in the aggregate $275,000,000,000
(Kt*t of Tuno *)(\ 1 QA&. TT.Q.tf~. fit-In ^1
Stuau uc Luuaiucicu » » iia I U L C a u i u u u u

c^r. 7 S 7 K Y mif<Bfan/1ino at a nv n n p rim#». F n r mirhneae *\t .\..m. *.**r**\t\n r\*m *...*-*.*
x u c AV,I W I ju»jr y% x.yjyj^w -*--> \ji %j utiu v-uugicoa; lauviucs luai uuiuig iue periOCl

beginning on July 1, 1956, and ending on June 30, 1957, the above limitation ($275,000,000,000) ahall be temporarily increas
by $3,000,000,000.
The following table shows the face amount of obligations outstanding and the face amount which can still be issued un<
this limitation:
Total face amount that may be outstanding at any one time
$ 2 7 8 , 0 0 0 , 0001
OutstandingObligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills $251262 ,395 »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 , 433 »103 » 000
34,367,367.000
$ 79t062,865.000
80 9 811,030 ,100
^,6l9»227»729
2371902 , 000
11.388.669.000
35»319»6031000
10,283.488.400
«

148,056.828,829

45.603.091.400
272, 722, 785 • 229
642,874,150

49,298,659
936,923
1.132.000.000
m

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A
108,549,300
Matured, interest-ceased
«.
798.750
Grand total outstanding
„
Balance face amount of obligations issuable under above authority

1,182.235.582
274,547,894,961

„

109.348.050
..
„
„

Reconcilement with Statement of the Public Debt..*™rSS..2r.F....r257.
(Date)
(Daily Statement of the United States Treasury
$^Sfe..29ji..l25.7.
(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

H-1329

274,657.243.
3.342.756.

«.
„

274,998,660,
109.3*Wi
275»108f00O|
4,y).765i
27*.657.2*31

S T A T U T O R Y D E B T LIMITATION
A S oF..i^a.^}..3.1.!....1957
Washington,
±^BJX.l^L...
Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under authority
•f that Act, and the face amount of obligations guaranteed as to principal and interest by the United States (except such guarmteed 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 reer
,y-$3,000,000,000. ... ----- temporarily increased
The following table shows the face amount of obligations outstanding and the face amount which can still be issued under
his limitation:
rotal 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 $25,262,395,000
Certificates of indebtedness
Treasury notes
Bonds-

1 9 ,433 »103 , 0 0 0
... 3 4 , 3 6 7 . 3 6 7 . 0 0 0

Treasury
* Savings (current redemp. value)
Depositary.

8 0 , 8 1 1 , 0 3 0 ,100
55»619,227»729
237*902,000

investment series ....
Special FundsCertificates of indebtedness

11,388.669.000

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

79.062,865,000

148,056,828,829

35»319»603,000
10,253.488,400

45 . 603 . 091.400
272 722 785 229
642 8 7 4 150

49,298,659
936,923
1,132,000,000

1,182,235,582
274,547,894,961

Guaranteed obligations {not held by Treasury);
Interest-bearing:
Debentures: F.H.A
-..
108,549,300
Matured, interest-ceased
798,750
v
Grand total outstanding
Balance face amount of obligations issuable under above authority

109.348,050

Reconcilement with Statement of the Public Debt ...™.?.55..i3r.f....»^5/f
(Date)
(Dailv Statement'of the United States Treasury,,._J.f&£CfA..l?,?.»....125.7.
^
,.
(Date)
JutstandingTotal gross public debt
Guaranteed obligations not owned by the Treasury.
Total gross public debt and guaranteed obligations.
)educt - other outstanding public debt obligations not subject to debt limitation

2 7 4 , 6571243 ,011
3>342>756.989

274,998,660,890
x(J9 , ^?*4Q , Q 3 Q
275*108,008,9^0
450,765.929
274,657,243.011

H-1329

- 3-

mmCQ 0
or by any local taxing authority. For purposes of taxation the amount of discoi
at which Treasury bills are originally sold by the United States is considered 1
be interest. Under Sections k$k (b) and 1221 {$) of the Internal Revenue Code <
\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 c
and such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunc
need include in his income tax return only the difference between the price paid
for such bills, whether on original issue or on subsequent purchase, and the
amount actually received either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordinary gain or loss*
Treasury Department Circular No. itl8, Revised, and this notice, prescribe
the tenns of the Treasury bills and govern the conditions of their issue. Copie
of the circular may be obtained from any Federal Reserve Bank or Branch.

S3
or in a like face amount of Treasury bills maturing

April 18. 1957

Casl

la»
and exchange tenders will receive equal treatment. Cash adjustments will be mat
for differences between the par value of maturing bills accepted in exchange ara
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, ai
loss from the sale or other disposition of Treasury bills does not have any
special treatment, as such, under the Internal Revenue Code of 1954. The bills
are subject to estate, inheritance, gift or other excise taxes, whether Federal
or State, but are exempt from all taxation now or hereafter imposed on the prin
or interest thereof by any State, or any of the possessions of the United State

TREASURY DEPARTMENT
Washington

, ,
/—h

/
—- / 1 ?

A. M.
XKQR RELEASE/ KaRBQBK NEWSPAPERS,
Tfrwsday, April. 11, 1957 •

Sot
$1,600.485-000

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

competitive bidding as hereinafter provided.

The bills of this series will be

dated April 18, 1957 , and will mature July 18, 1957 , when the fac

amount will be payable without interest. They will be issued in bearer form onl
and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,0
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
one-thirty
closing hour,/tool o'clock p.m., Eastern Standard time, Monday, April 15, 1957
Tenders will not be received at the Treasury Department, Washington. Each tende
must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than thre
decimals, e. g., 99*92$. Fractions may not be used. It is urged that tenders
be made on the printed forms and forwarded in the special envelopes which will t
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 deale
in investment securities. Tenders from others must be accompanied by payment oi

RELEASE A.M. NEWSPAPERS,
Thursday, April 11, 1957.

H-1330

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 April 18, 1957,
in the amount of $1,600,483,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated April 18, 1957,
and will mature July 18, 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, April 15, 1957.
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 .1 icorporated 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
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 B
on April 18, 1957,
in cash or other immediately available fun
or in a like face amount of Treasury bills maturing April 18, l<
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value o
maturing bills accepted in exchange and the issue price of the n
bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, does not h
any exemption, as such, and loss from the sale or other disposit
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 Fede:
or State, but are exempt from all taxation now or hereafter impo
on the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing author!
For purposes of taxation the amount of discount at which Treasur;
bills are originally sold by the United States is considered to
be interest. Under Sections 454 (b) and 1221 (5) of the Interna:
Revenue Code of 1954 the amount of discount at which bills issue<
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 actuall;
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 obtain
from any Federal Reserve Bank or Branch.
oOo

~i2-

COTTON WASTES
(In pounds)

y *< <•»

S
3T2L
™ P S 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
United Kingdom
Canada
....
France
British India . . . ...
Netherlands . . . . . . .
Switzerland .
Belgium
Japan
China
Egypt
Cuba
Germany
Italy

Established
TOTAL QUOTA

Total Imports
Sept. 20, 1956, to
April 9. 1957

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

95,562
239,690

22,775

25,443
7,088

22,775

5,482,509

427,654

1,599,886

118,337

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

Established
33-1/3? of
Total Quota
1,4U,152

ImportsT/
Sept. 20, 1956,
to April 9, 1957
95,562

75,807
69,627
22,747
14,796
12,853

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Thursday, April 11, 1957.

^3J

H-1331

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 April 9, 1957
m
Country of Origin Established Quota Imports Country of Origin Established Quota Imports
Egypt and the Anglo- Honduras 752
Egyptian Sudan . . .
783,816
?e
™
• • . . .
247,952
British India . . . . .
2,003,483
124,060
2hi*a
1,370,791
Headco
8,883,259
8,883,259
frazil . . . v . . . .
618,723
600,000
Jnion of Soviet
Socialist Republics .
475*124
Argentina
5,203
*aiti
237
Ecuador
9,333
L/ Other than Barbados, Bermuda, Jamaica, Trinidad, and
l/ Other than Gold Coast and Nigeria.
\f Other than Algeria, Tunisia, and Madagascar*

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

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
[mports Sept. 20. 1956. to March 30, 1957
Imports August 1, 19S6,to March 30, 1957, jncl»
Established Quota (Global) Imports Established Quota (Global) imports
70,000,000

5,280,833

45,656,420

18,465,710

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE, H-1331
Thursday, April 11, 1957*
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 3/411
Imports Sept. 20, 1956. to April 9, 1957
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
Colombia
#
British India . . . . .
2,003,483
124,060
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/Othsr British W. Indies
Socialist Republics .
475*124
Nigeria
Argentina
.
5,203
2/0ther British W. Africa
Haiti
237
J^/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" _ ^Cotto^^V^^
Imports Sept- 20, 1956, to March 30, 1957

21,321
5,377
16,004
689

Imports aug^t 1, x95g^5TIarcg^g7l9g7, incl.

Established Quota (Global) Imports Established Quota (Global) Sports
70,000,000 5,280,833 45,656,420 18,465,710

871
124
195
2,240
71,388

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 YiASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUEt Provided, however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more
in staple- length in the case of the following countriess United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italys

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

Established
TOTAL QUOTA

Total Imports
Sept. 20, 1956, to
April 9, 1957

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

95,562
239,690

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

Established
33-1/3? of
Total Quota
1,2*41,152

Imports
Sept. 20, 1956,
to April 9, 1957
95,562

75,807
69,627
22,747
14,796
12,853

22,775

25,443
7,088

22,775

427,654

1,599,886

118,337

TREASURY DEPARTMENT
Washington
* *

*'•*

."•>

IMMEDIATE RELEASE,
Thursday, April 11, 1957>
H-1332
The Bureau of Customs announced today the following preliminary
figures showing the imports for consumption from January 1, 1957, to
March 30, 1957, inclusive, of commodities for which quotas were
established pursuant to the Philippine Trade Agreement Revision Act

of 1955:

Commodity
Buttons

:
: Unit
:
: Established Annual :
of
: Imports as of
. Q u o t a Q uant ity
: Quantity : March 30, 195*!
807,500

Gross

201,610

Cigars 190,000,000 Number 911,725
Coconut oil 425,600,000 Pound 47,956,737
Cordage 6,000,000 Pound 1,210,986
(Refined 7,521,316
Sugars
(Unrefined

1,904,000,000

Tobacco 6,175,000 Pound 1,129,392

Pound
645,528,828

TREASURY DEPARTMENT
Washington

\y K.*

IMMEDIATE RELEASE,
Thursday, April 1 1 , 1957*
H-1332
The Bureau of Customs announced today the following preliminary
figures showing the imports for consumption from January 1, 1957, to
March 30, 1957, 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
March 30, 1957
Gross

201,610

Cigars 190,000,000

Number

911,725

Coconut oil 425,600,000

Pound

47,956,737

Cordage 6,000,000

Pound

1,210,986

(Refined
Sugars
(Unrefined
Tobacco 6,175,000

7,521,316
1,904,000,000

Pound
645,528,828
Pound

1,129,392

IMMEDIATE RELEASE,
Thursday. April 11, 1957.

TREASURY DEPARTMENT
Washington

H-13;

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 March 30, 1957, inclusive, as follows:

Unit
:
of
: Imports as
Quantity :March 30,

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

1,500,000

Gallon

TShole milk, fresh or sour Calendar Year

3,000,000

Gallon

200,000

Head

Cattle, 700 lbs. or more each .. Jan. 1, 1957 - 120,000
(other than dairy cows)
Mar. 31, 1957

Head

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

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

37,375,636

Pound

Quota FilL

Tuna fish Calendar Year

44,528,533

Pound

8,212,1

150,000,000
60,000,000

Pound
Pound

96,070,1
24,34o,<

Walnuts Calendar Year

5,000,000

Pound

275,'

Alsike clover seed 12 mos. from
July 1, 1956

2,500,000

Pound

235,1

80,000,000

Pound

To be
announced

Pound

5,072,!

Pound

Quota Fill*

Pound
Pound

182,212,9i

Ihite or Irish potatoes:
Certified seed
Other

12 mos. from
Sept. 15, 1956

Peanut oil 12 mos. from
July 1, 1956
Woolen fabrics Calendar Year
Absolute Quotas:

Peanuts, whether shelled, not
shelled, blanched, salted, prepared, or preserved (including
roasted peanuts, but not
12 mos. from
1,709,000
including peanut butter)
Aug. 1, 1956
12 mos. from
Rye, rye flour, and rye meal
July 1, 1956
182,280,000
Canada
Other Countries 3,720,000

(1) Imports "for consumption at the quota rate are limited to 9,343,909 lbs. durin
the first 3 months of the calendar year.
(2) Inports through April 9, 1957.

IMMEDIATE RELEASE,
Thursday, April 11. 1957.

TREASURY DEPARTMENT
Washington

;Q9
£_ my i_

H-1333
The Bureau of Customs announced today preliminary figures showing the inports
for consumption of the commodities listed below within quota limitations from the
beginning of the quota periods to March 30, 1957, inclusive, as follows:

Commodity

Period and Quantity

Unit
:
of
: Imports as of
Quantity :March 30. 1957

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

Gallon

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

Gallon

239

Cattle, less than 200 lbs. each 12 mos. from 200,000
April 1, 1956

Head

9,U10

Cattle, 700 lbs. or more each .. Jan. 1, 1957 - 120,000
(other than dairy cows)
Mar. 31, 1957

Head

9,U29

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

37,375,636

Tuna fish Calendar Year 44,528,533

Pound

White or Irish potatoes:
Certified seed
Other

Pound
Pound

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

Pound

Quota Filled
8,212,021

Walnuts Calendar Year 5,000,000

Pound

96,070,1*05
2U,3U0,691
275,769

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

Pound

235,8lU

Peanut oil 12 mos. from 80,000,000
July 1, 1956

Pound

Woolen fabrics Calendar Year To be

Pound

5,072,579

announced
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
1,709,000
Rye, rye flour, and rye meal ... 12 mos. from
July 1, 1956
Canada
182,280,000
Other Countries 3,720,000

Pound

Pound
Pound

Quota Filled
(2)
182,212,914

U) Imports for co~nsu^tion at the quotaT'rate are limited "to"9,3U3,909 lbs. during
the first 3 months of the calendar year.
(2) Imports through April 9, 1957.

£83
HSLEASI JU H. NEWSPAPERS,
Tuesday, April l6, 1957*

\Jk
\

The Treasury Department announced last evening that the tenders for &L,600,000
or thereabouts, of 91-day Treasury bills to be dated April 18 and to mature July 18
1957# which were offered on April 11, were opened at the Federal Reserve Banks on
April 15•
The details of this issue are as followst
Total applied for • 12,939*079*000
Total accepted
- 1,600,1*27,000 (includes $412,416,000 entered cm
a noncompetitive basis and accepted in
full at the average price shown below)
Range of accepted competitive bidst (Excepting one tender totaling 1300*000)
High - 99*212 Equivalent rate of discount approx* 3.117$ per annt
Low
- 99.192
»
« •
*
*
Average * 99,193 * » • " * 3.194$

3.196* •»

•

(78 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

39,750,000
2,061,353,000
35,6lti,000
96,7^8,000
20,070,000
59,319,000
277,159,000
1(6,348,000
20,180,000
58,558,000
65,531,000
158,1(1(9,000

$
21,050,000
1,088,1(99,000
18,868,000
1)0,900,000
17,677,000
38,090,000
153,231,000
35,082,000
18,336,000

12,939*079,000

11,600,1(27,000

TOTAL

hkfhho,ooo

36,981,000
87.873,000

•

TREASURY DEPARTMENT
WASHINGTON, D.C.
ASE A. M. NEWSPAPERS,
day. April 16, 19$7.

N ^ ^ X

H-1334

The Treasury Department announced last evening that the tenders for #1,600,000,000,
hereabouts, of 91-day Treasury bills to be dated April 18 and to mature July 18,
' which were offered on April 11, were opened at the Federal Reserve Banks on
n 15.
The details of this issue are as follows?
Total applied /or - $2,939,079,000
Total accepted
- 1,600,427,000 (includes $4l2,4l6,000 entered on
a noncompetitive basis and accepted in
full at the average price shown below)
Range of accepted competitive bids: (Excepting one tender totaling $300,000)
High

99#212 Equivalent rate of discount approx* 3.1172 per annum

Low

- 99.192

Average

- 99,193

3.1962

3.1942 «

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

Applied for

Boston
$ 39,750,000
1 08
New York 2,061,353,000 ' 5»K'SS
Philadelphia
35,6lU,000
Cleveland
96,71(8,000
Richmond
20,070,000
Atlanta
59,319,000
l5
2 1
0
Chicago 277,159,000 ?' 2 »° °
St. Louis
1(6,31(8,000
Minneapolis
20,180,000
Kansas City
58,558,000
Dallas
65,531,000
San Francisco
158,1(1(9,000
TOTAL $2,939,079,000 $1,600,127,000

Accepted
•

21,050,000
^68,000
°'? 00 '°°°
17 677
> '°°°
38,090,000

35,082,000
18,336,000
Wi, 1*0,000
36,981,000
87,873,000

*
w

The following transactions were made in direst and guaranteed
securities of the Government for Treasury investments and other accounts
during the month of larch, 1957*
Purchases $13,854,$00,0Q
$13,403,450.00

(Sgd) Cbarles *• B r a n n a n
Chief, Iwrestaents Branch
Division mt Bepoeits It Investments

--'M

v;s n ci

TREASURY DEPARTMENT
WASHINGTON, D.C

IMMEDIATE RELEASE,
FgMa.y, MoiUi 13, 1957-.

11-131'I'

During JWwsKwy 1957, market transactions
in direct and guaranteed securities of the
government for Treasury investment and other
accounts resulted in net purchases by the

Y /Sjimio3t t£ro
Treasury Department of 472, ol6,30&7

oOo

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Monday, April 15, 1957.

H-1335

During March 1957* 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 $13,403,450.

0O0

- 3-

xjm

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 tc
be interest. Under Sections 454 (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 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. 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•

.163

-2xAXKMA

Those sub-

Subject to these reservations, noncompetitive tenders for $200,000 or les

without stated price from any one bidder will be accepted in full at the average
price (in three decimals) of accepted competitive bids.

Settlement for accepted

tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on

April 25, 1957

, in cash or other immediately available funds

or in a like face amount of Treasury bills maturing
and exchange tenders will receive equal treatment.

April 259 1957

Cash

Cash adjustments will be made

The bills

are subject to estate, inheritance, gift or other excise taxes, whether Federal
or State, but are exempt from all taxation now or hereafter imposed on the princi
or interest thereof by any State, or any of the possessions of the United States,

mm
TREASURY DEPARTMENT
Washington
A. M.
XEK RELEASE/ KEMZMK NEWSPAPERS,
Qfcursday, April 18, 1957
.
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 April 25, 1957 , in the amount of
$ 1,600,512,000 , to be issued on a discount basis under competitive and non-

m
competitive bidding as hereinafter provided. The bills of this series will be
dated April 25, 1957 , and will mature July 25, 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 $1,000,00
(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, April 22, 1957
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 dealei
in investment securities. Tenders from others must be accompanied by payment of

30i
TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE A.M.' NEWSPAPERS,
Thursday, April 18, 1957*

H-1336

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 April 25, 1957
in the amount of $1,600,512,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated April 25, 1957,
and will mature July 25, 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,
Monday, April 22, 1957Tenders will not be received at the
Treasury Department, Washington. Each tender must be for an even
multiple of $1,000, and in the ca3e 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 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
Ln whole or in part, and his action in any such respect shall be
final. Subject to these reservations, non-competitive tenders for
£200,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted

2 competitive bids. Settlement for accepted tenders in accordance
wi£h the bids must be made or completed at the Federal Reserve Ban!
onT"April 25, 1957,
in cash or other immediately available funds
or in a like face amount of Treasury bills maturing ^ril 25, 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 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

Scribner biography

July 1955 nominated to be General Counsel of the Treasury
Department; confirmed July 1955> sworn in °eptembe rJ22, 1955
February 1957 nominated to be Assistant ^ecretar;, of the
Treasury; confined r.arch 1957; sworn in April 18, 1957.

FRED CLARK SCRIBNER, JR.

Place and date of birth:
Father;

Bath, Maine, February 14, 1908

Fred Clark Scribner

Education;
^^

Mother:

Emma Cheltra

Dartmouth College (A.B. 1930)
Harvard Law School (LL.B. 1933)

Married: Barbara C. Merrill Date: August 24, 1935
Children: Fred C. Scribner, III, Curtis M. Scribner,
Charles D. Scribner
Brief Career Summary:
1933 admitted to the bar in Maine and Massachusetts
1933-1935 associate in the firm of Cook, Hutchinson, Pierce &
Connell, Portland, Maine
1935-1955 partner in firm of Cook, Hutchinson, Pierce & Connell,
now entitled Hutchinson, Pierce, Atwood & Scribner
Nov, 1946 elected General Counsel, Vice President and Treasurer 0:
Bates Manufacturing Company, Lewiston, Maine. (Resigned in
\ ^ ^ September 1955)
Principal Professional or Business Activities:
Director: Bates Manufacturing Company, Lewiston, Maine
Director: Rockland-Rockport Lime Co., Inc., Rockland, Maine
1944-1946 Young Republican National Committeeman from Maine
1936-1940 Chairman, Republican City Committee, Portland, Maine
1938-1940 Chairman, Maine Council Young Republican Clubs
1940-1950 Member of Republican State Committee
1948-1955 Republican National Committeeman from Maine
1944-1950 Chairman, Executive Committee, Maine Republican State
Committee
August 1952 Appointed General Counsel of the Republican National
Committee by Chairman Arthur E. Summerfield*(Resigned 1955)
1940 and 1944 Delegate, Republican National Convention
Member Standing Committee and Diocesan Council, Diocese of Maine
Chancellor, Diocese of Maine
Delegate, General Convention of the Protestant Episcopal Church,
1943, 1946 and 1952
Memberships: Portland Club; Woodfords Club; Masons; Kiwanis;
Settlers; American Bar Assn; Maine State Bar Assn; Cumberland
County Bar Assn; Phi Beta Kappa; Delta Sigma Rho; Alpha Chi Rho
Director: Maine General Hospital, Portland, Maine; Pine Tree
Council; Boy Scouts of America; Maine Home for Boys; New Englan<
f
©eeember-r~i95
Council 5'.
Incorporator: Maine Savings Bank

//- 1337

IMMEDIATE RELEASE.
Thursday9 April 18, 1957.

Secretary Humphrey today administered the oath of office
to Fred C. Scribner, Jr., as an Assistant Secretary of the
Treasury.

Mr. Scribner has been General Counsel of the

Treasury Department since September 22, 1955.
Friends and Treasury associates of Mr. Scribner were
present at the swearing-in ceremony.
Secretary Humphrey has assigned to Assistant Secretary
Scribner the responsibility of supervising operations of the
Internal Revenue Service.

He also will have general supervision

of the activities directed by the Administrative Assistant
Secretary and the Personnel Security Officer.
Mr. Scribner is a resident of Portland, Maine, where
he was a partner in the law firm of Hutchinson, Pierce, Atwood
and Scribner prior to joining the Treasury*
(Biographical sketch attached. )

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Thursday, April 18, 1957.

H-1337

Secretary Humphrey today administered the oath of office
to Fred C. Scribner, Jr., as an Assistant Secretary of the
Treasury,

Mr. Scribner has been General Counsel of the

He also will have general

supervision of the activities directed by the Administrative
Assistant Secretary and the Personnel Security Officer.
Mr. Scribner is a resident of Portland, Maine, where
he was a partner in the law firm of Hutchinson, Pierce,
Atwood and Scribner prior to joining the Treasury.
(Biographical sketch attached.)

FRED CLARK SCRIBNER, JR.
mmmmmmm^mmmmmmmmmmmmmmmmmmwmmmimmmmmmmmmmm^mmm-mmmmmmmmmmm

Assistant Secretary of the Treasury
Place and date of birth: Bath, Maine, February 14, 1908.

fm.

Ooo

Father: Fred Clark Scribner. Mother: Emma Cheltra.
Education: Dartmouth College (A.B. 1930)
Harvard Law School (LL,B. 1933)
Married: Barbara C. Merrill. Date: August 24, 1935.
Children: Fred C. Scribner, III, Curtis M. Scribner,
Charles D. Scribner.
Brief Career Summary:
1933 admitted to the bar in Maine and Massachusetts.
1933-35 associate in the firm of Cook, Hutchinson, Pierce &
Connell, Portland, Maine.
1935-1955 partner in firm of Cook, Hutchinson, Pierce & Connell,
'now entitled Hutchinson, Pierce, Atwood & Scribner.
Nov. 1946 elected General Counsel, Vice President and Treasurer of
Bates Manufacturing Company, Lewiston, Maine. (Resigned in
September 1955)
July 1955 nominated to be General Counsel of the Treasury
Department; confirmed July 1955; sworn in September 22, 1955.
February 1957 nominated to be Assistant Secretary of the Treasury;
confirmed March 1957; sworn in April 18, 1957.
Principal Professional or Business Activities:
Director: Bates Manufacturing Company, Lewiston, Maine.
Director: Rockland-Rockport Lime Co*, Inc., Rockland, Maine.
1944-1946 Young Republican National Committeeman from Maine.
1936-19^-0 Chairman, Republican City Committee, Portland, Maine.
1938-1940 Chairman, Maine Council Young Republican Clubs.
1940-1950 Member of Republican State Committee.
1948-1955 Republican National Committeeman from Maine.
1944-1950 Chairman, Executive Committee, Maine Republican State
Committee.
August 1952 Appointed General Counsel of the Republican National
Committee by Chairman Arthur E. Summerfield. (Resigned 1955)
1940 and 1944 Delegate, Republican National Convention.
Member Standing Committee and Diocesan Council, Diocese of Maine.
Chancellor, Diocese of Maine.
Delegate, General Convention of the Protestant Episcopal Church,
1943, 1946 and 1952.
Memberships: Portland Club; Woodfords Club; Masons; Kiwanis;
Settlers; American Bar Association; Maine State Bar Association;
Cumberland County Bar Association; Phi Beta Kappa; Delta Sigma
Rho; Alpha Chi Rho.
Director: Maine General Hospital, Portland, Maine; Pine Tree
April
1957
Council;
Boy Scouts of America; Maine Home for Boys; New England
Council.
Incorporator: Maine Savings Bank.

- 3 -

inter;*;* They deserve the full support of every American.

v^ t„. d

- 2 T lie re is nothing new about this approach or the principle^
that guide it.

They are the same principles that have guided

this Administration for the past four years.

We have been

constantly viligant to continually make every effort to live
within our means and to get a dollar's worth for every dollar
that we spend.
We have continually striven to avoid waste and extravagance
and to adequately balance the necessary costs of our national
safety with the equally necessary maintenance of a strong and
vigorous economy.
&f

We have thought to stabilize the costs of

living and foster more and better jobs, to protect the

government's, as well as the peopleTs, high income.
It is persewNHMe in this continuing effort that has
brought us now to the prospect of three balanced budgets in
succession for the first time in 25 years.

But we have also

been ever/ mindful of our position of leadership in the world
and the obligations we must necessarily bear in that regard
to protect our national security.
The everlasting search for possible reductions and the
drive to make them real will necessarily continue in the future
as it has in the past,

with the help of the Congress, and the

public, and the persisting effort5of the Administration,
progress toward a proper balancing of our fiscal affairs and
full performance of our national obligations will continue.
The proven principles set forth in the President's letter
well serve both our national security and the people's best

FOR USE AT 6:&1) P.M. £ Sf*
THURSDAY, APRIL 18, 1957
Extracts from Remarks by Treasury Secretary/ George
M. Humphrey Before the National Industrialized,
Waldorf-Astoria Hotel, New York, 2$ New Yo*k,
April 18, 1957
President's letter of this morning puts into proper
perspective the problems about the budget which have been the
subject of discussion since the budget was sent to the
Congress in January.
At that time the President requested a further painstaking
review of the budget by the Bureau of the Budget and by all
the departments and agencies of Government.

This has now

been prepared and discloses the feasibility of postponing
certain appropriation requests which can be made without
serious damage to the program.
The President, however, stated that actual spending in
the coming fiscal year cannot be cut by mi/1 ti-billion dollar
amounts without danger to the national safety or interest,
or the modification of some of the existing programs now
authorized or required by law.
I urge every citizen to earnestly consider and support
the President's direct and simple analysis of the principles
involved in our budget problems.
The President's position not only guards the nation
against ill-considered or dangerous slashing of the budget,
but it also points tne way to well-considered steps toward
holding future Federal spending down.

Controlling the upward

march of total Government spending is of greatest importance

r*\ -.«< t
W *m,

TREASURY DEPARTMENT
WASHINGTON, D.C.
FOR USE AT 6:00 P.M. EST#
THURSDAY, APRIL 18S 1957.

Extracts from remarks by Treasury Secretary
George M. Humphrey before the National Industrial
Conference Board, Waldorf-Astoria Hotel, New York,
New York, April 18, 1957
The Presidents letter of this morning puts into proper
perspective the problems about the budget which have been the
subject of discussion since the budget was sent to the Congress
in January.
At that time the President requested a further painstaking
review of the budget by the Bureau of the Budget and by all the
departments and agencies of Government. This has now been prepared
and discloses the feasibility of postponing certain appropriation
requests which can be made without serious damage to the program.
The President, however, stated that actual spending in the
coming fiscal year cannot be cut by multi-bilTTon dollar amounts
without danger to the national safety or interest, or the
modification of some of the existing programs now authorized or
required by law.
I urge every citizen to earnestly consider and support
the Presidents direct and simple analysis of the principles involved in our budget problems.
The President's position not only guards the nation against
ill-considered or dangerous slashing of the budget, but it also
points the way to well-considered steps toward holding future
Federal spending down. Controlling the upward march of total
Government spending is of greatest importance to us all.
There is nothing new about this approach or the principles
that guide it. They are the same principles that have guided
this Administration for the past four years. We have been
constantly vigilant to continually make every effort to live
within our means and to get a dollar's worth for every dollar that
we spend.
We have continually striven to avoid waste and extravagance
and to adequately balance the necessary costs of our national
safety with the equally necessary maintenance of a strong and
vigorous economy. We have sought to stabilize the costs of living
H- 1338

^ ~mL

- 2 and foster more and better jobs, to protect the government's,
as well as the people's, high income.
It is perseverance in this continuing effort that has brought
us now to the prospect of three balanced budgets in succession
for the first time in 25 years. But we have also been ever mindful of our position of leadership in the world and the obligations
we must necessarily bear in that regard to protect our national
security.
The everlasting search for possible reductions and the drive
to make them real will necessarily continue in the future as it
has in the past. With the help of the Congress, and the public,
and the persisting efforts of the Administration, progress toward
a proper balancing of our fiscal affairs and full performance of
our national obligations will continue.
The proven principles set forth in the President's letter
well serve both our national security and the people's best
interest. They deserve the full support of every American.

0O0

313

p„

\^f\

REI£ASE A. H. MKSPAPERS,
Tuesday, April 23, 1957*
The Treasury Department announced last evening that the tenders for $1,600,000,(
or thereabouts, of 91-day Treasury bills to be dated April 25 and to Mature July 2$,
1957* which were offered on April 18, were opened at the Federal Reserve Banks on
April 22.
The details of this issue are as follows:
total applied for - 12,707*255*000
Total accepted
- 1,600,91*1,000 (includes |36itf 196*000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
Range of accepted competitive bids;
High - 99*233 Equivalent rate of discount approx. 3*03fa| per annua
Low
- 99.226
•
• •
•
•
3*06231 •
Average - 99.228 * s • • « 3.05& • •
(56 percent of the aaount 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

#
38,810,000
1,965,380,000
38,01^,000
6O,73li,O0O
19,868,000
39,063,000
£1,780,000
3U,7U*,000
16,163,000
56,817,000
$1,9U6,000
133,966,000

#
22,720,000
1,01*6,683,000
20,519,000
$4,965,000
15,963,000
30,058,000
168,892,000
32,390,000
15,063,000
4l,9U3,000
33,282,000
118.U63.000

$2,707,255,000

•1,600,91*1,000

Total

•

Q1 Q

TREASURY DEPARTMENT
EHascEsaaa

WASHINGTON, D.C.
ELEASE A. M. NEWSPAPERS,
aesday, April 23, 1957.

N^<^2>/

H-1339

The Treasury Department announced last evening that the tenders for $1,600,000,000,
r thereabouts, of 91-day Treasury bills to be dated April 25 and to mature July 25*
957, which were offered on April 18, were opened at the Federal Reserve Banks on
pril 22.
The details of this issue are as follows:
Total applied for - $2,707,255,000
Total accepted
- l,600,9Ul,000 (includes $36U,196,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
Range of accepted competitive bids:
High - 99*233 Equivalent rate of discount approx. 3.03^ per annum
M
w
Low
- 99.226
"
"
»
3.062J? "
Average - 99.228 » nun n 3.0$k%

(56 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

38,810,000
1,965,380,000
38,OlU,000
60,73ii,000
19,868,000
39,063,000
251,780,000
3i;,7lU,000
16,163,000
56,817,000
5l,9U6,000
133,966,000

$
22,720,000
1,01*6,683,000
20,519,000
5^,965,000
15,963,000
30,058,000
168,892,000
32,390,000
15,063,000
Ul,9U3,000
33,282,000
118,1|63,000

$2,707,255,000

$l,600,9Ul,000

Total

of expense by cultivating peace, but remembering also
that timely disbursements to prepare for danger
frequently prevent much greater disbursements to repel
iti avoiding likewise the accumulation of debt, not only
by shunning occasions of expense, but by vigorous exertions
in time of peace to discharge the debts which unavoidable
wars may have occasioned, not ungenerously throwing upon
posterity the burden which we ourselves ought to bear."

—oOO'

mm 9 '

V- .„. **/

To the extent that the Treasury can sell more savings bonis, we will
do less borrowing in the market from investors who are providing the funds
for mortgages and corporate and municipal securities.
SUL&iARY

W-^>v'

In these past four years, we have made progress in dealing with our
public debt. TJe have begun to reduce the debt and seek to reduce it further.
Tie have grown up to the debt a little, so that, relatively, its burden
is lighter.
The speed with which the National debt can be further re-distributed
will depend on the rate of the flow of savings; the pressure of demand for
funds from other sources; and the state of the money market. You can't
force free markets, and the Treasury has no intention of trying to do so.
It took a long time, a huge war, and a huge defense program to place us where
we are.

It will take time to readjust.

In this process, we shall always have as our objective, sound money and
economic stability, avoiding either inflation or deflation, and encouraging
and not impairing the steady, forward growth of the country's activity.
It is our belief that a sound debt policy will, itself,rnstkefor greater
confidence, stimulate enterprise, and contribute to the well-being of all
the people.
On this Hamilton bicentenary year, we can do no better at this time
than to recall the words of George Washington in his Farewell Address, which
Hamilton helped prepare:
"As a very important source of strength and security,
cherish public credit.

One method of preserving it is

to use it as sparingly as possible; avoiding occasions

INSERT OK PAGE 9
To put this matter in perspective, let us contrast our program with
the manner in which the Russian Government meets its savings bonds obligations. Russia also sells special bonds designed for the people's savings —
in fact, the workers there have been forced to buy these bonds year after
year. But now that a great many of these bonds are reaching maturity and
there is a problem of meeting the redemptions, the Russian leaders decided
ten days ago to solve the problem simply by freezing the bonds for at least
another twenty years — and perhaps forever.
Probably the only understatement that has come out of Russia in a long
time is that Western capitalists probably will never understand this.
Here in America we honor our obligations. When our people put their
money voluntarily and freely into United States savings bonds, they are
setting aside reserves which they can cash when needed for such things as
college educations for their children, for a down payment on a new home,
for a new car, to supplement their retirement income, and for countless
other "American-way-of-life" purposes. They know that the obligations of
the Government will be met.
By contrast, the Russian method is forced saving — and the breaking of
promises.
Here, in capsule> is the difference between the American and Russian
principles of government. It is economic freedom versus economic serfdom;
it is integrity versus deceit.
Our savings bond program is one of the best illustrations of the volunta:
cooperation of a free people with their government.

-1
V.. '

- 8 -

5. More securities sold to individuals. I have already mentioned
that individuals1 holdings of Government securities have been growing and
now stand near an all-time high. The major factor in this growth has been
the Series E and H savings bonds program. The vigorous promotion of this

program, aided by an improvement in terms in May, 1952, has brought an in-

crease of over $6 billion in E and H bond holdings during the past four ye

Prosperity and greater confidence in the stability of the value of the do
formed a favorable climate.
The core of the program has been the payroll savings plan, under which,
today, about 8 million workers are buying savings bonds regularly. We

estimate that approximately 40 million Americans now own $4-1-1/2 billion
the E and H bonds.
But for about 9 months, our savings bonds sales have been slowing down

under the impact of higher interest returns available in alternative forms
of savings. As a result, the Treasury has asked and received from the

Congress authority to raise from 3 to 3-1/4$ the over-all yield on E and H

bonds.^p A^^*-^ ^^Ac(Vw/y &*^* *~^ *X<*«3
f Savings bonds are not sold primarily for their yield but for their
security, their redeemability, and their convenience. But the buyer must
feel he is getting a fair rate. /&«* "2

UJUIW.

^MfiuT h^^J^ ,

The savings bonds program is one of the best existing means of encourag-

ing the over-all volume of savings, which the country so much needs to kee
pace with the tremendous demands of the people for all forms of goods and
services.

- 7 —

\m*

for more efficient capital markets, for more effective Federal
Reserve policy, and it will also leave the Treasury with a
reservoir for shortwterm borrowing in any unforseen emergency*
The debt structure has also been improved through the
reduction of demand debt in the hands of large investors*
The elimination of the sale of savings notes in the fall of
1953* and the recent dropping of the investment-series J
and K bonds as of April 30, 1957, represent major steps in
the reduction of the more vulnerable Treasury demand debt in
the hands of sophisticated investors* ^tfhese two types of
demand debt have beenjreduced from ^» 6? ^sL
billi
billion
on
n i t
December 31* 1952 to \H~ %~
billion
They are the type of debt which comes home to roost at
the most inconvenient times*

L~K>
/

f>+*

y
r>

e/-

- 6be long before market conditions will permit
term bond issue, ~

perhaps in exchange for/fr and G savings bonds*

km Short-term debt reduced* Our modest success in selling over
$1* billion of long-term bonds, plus the sale of over $U5 billion of
intermediate term notes and bonds beyond the 1-year area during the
past k years, are the primary reasons why the Treasury has been able to
reduce a little the amount of debt which the Treasury has to handle in
each year.

In terms of publicly-held debt outside of the Federal Reserve

System and Government investment accounts, the Treasury was faced on
December 31, 1956 with the prospect of handling $5l-l/2 billion of
marketable securities in the coming year. That is $3-l/2 billion higher
than it was 2 years ago, but it is still almost $0.3 billion below the
under 1-year debt that the Treasury faced on December 31, 1952. We have
been able, therefore, to lighten the load somewhat, thus reducing the
ijnpaci of Treasury operations in relation to corporate and municipal
flotations and in relation to the necessary freedom that the Federal Reserve
must have to conduct its monetary operations effectively*
We have a financial system which has become used to a large volume
of short-term Government securities to cover liquidity needs*

Some of

this is entirely appropriate and a significant amount of short-term
debt will always be needed*

We feel, however, that the present total

can still be reduced to advantage.

It will make for better debt management,

-5n r~.
< '

On the other hand, insurance companies and savings banks have continued
to liquidate Government securities during the last k years in response to
the tremendous demands on them for funds, especially mortgage loans*
orppr at ions Madiether^hortrterm investor^

$ Z i v k rf^.*^ / t ^ x ^ C * < p*-~*' A ~^ f^ 4*W

^Iidnipwir-w^fee^^fmi^^not eheaige*
3*

Long-term market opened up* During the past li yearsxhe Treasury e^pty

as sold over $U billion of long-term securities. The first of these, the
3-lA f s, of which we sold $1*6 billion in the Spring of 1953* represented
the first long-term market issue since the end of World War II financing*
Again in 1955, we sold $2*7 billion of 3% bonds of 1995, the longest Treasury
bond issued since the Panama Canal Bonds in 1911. 4 | * ^ billion may not seem
to be a large figure in comparison to the $275 billion debt, but even that
amount has been tremendously helpful. Not only did these offerings make it
possible for the Treasury to lengthen out its ever-shortening public debt,
but it also gave some breadth and dep|h to a free long-term Government
securities market, which until 1953 bprt^y existed*

One of our well-known columnists has publicized widely his Alice-inWonderland reflections on the difficulties of marketing a long-term bond*
He reasoned that the Treasury would be hesitant to sell a long-term bond
when money is tight because it would tend to throw additional demands on an
already stringent market condition*

The Treasury would also be hesitant to

sell a long-term bond when interest rates were going down because it wouldn't
want to impede the flow of funds into much needed capital expansion*
So his "Alice" came to the conclusion that "When it comes to floating a
long-term Government bond issue, no time is the best time which is all the
time." ^he^^Li^ise^iti^^are reaT, 'but'TSofcTWBW^

(

* s \ ~*

11 \\ -C ^

I hope it won't
(/A

/$*«MJK^

- U -

?^-j
v- *; c

We are now operating under a temporary debt ceiling of $2?8 billion*
This is the third year in which a temporary increase in the debt limit has
been necessary to permit the Treasury to meet seasonal borrowing needs during
the year. Under the present law, the limit will return to its permanent
level of $275 billion on June 30, 1957^ We are sanguine that it will not be
necessary for the Treasury again to ask for an increase in the $275 billion
limit. To keep under the limit will call for restraint in spending and
postponement of further tax cuts until a much larger surplus is in sight*
2. Reduction in bank-held debt* One of the objectives of tfce Treasury
debt management has been to keep the amount of debt held by the commercial
banks at a minimum. This is the place where debt holdings can be most
inflationary. At the end of December 1956, commercial banks held $59§ billion
of the debt — $1* billion less than in December 1952; though the total debt
was $f billion larger. The reduction in commercial bank holdings reflects a
measure of success in achieving a better distribution of the debt among other
investors.
Since 1952, there has been an increase of $8 billion in ownership of
Government securities by government investment accounts — largely representing
savings by or for individuals in the form of social security, veterans1 life
insurance, retirement reserves, etc* In addition, individuals have added
$2 billion to their holdings of Government securities during the past
,k years as against a decrease in the preceding 1* years* Pension funds have ,
been tfee-Berfe-beefc customers, increasing their government holdings by *!*- *^
in k years.

99 3

Past differences in policy between the Treasury and the

Federal Reserve Board have helped to encourage inflation*
Henceforth, I expect that their single purpose shall be to serve
the whole Nation by policies designed to stabilize the economy
and encourage the free play of our people's genius for individual
initiative."

Debt operations since 1952
In accordance with these principles, our problems of debt management

during the last k years have not been just those of finding oujTwhat secur
the market would take and at what rate, but also the problem of making an

appraisal of the economic situation — on a day-to-day basis — to make sure
that our operations would be neither inflationary nor deflationary* This

meant, in fact, deciding our policies in cooperation with the Federal Reser

System, whose duty it is, under the law, to influence the money supply wit
these same objectives*
Looking back over the past U years, I believe we may fairly claim
achievements in debt management:
1* Upward trend of the debt reversed* By cutting expenses, and through

the higher tax yields of prosperity, an inherited deficit of $9§ billion i
fiscal year 1953 was gradually turned into surplus in 1956 and, we 4aope,

1957 and 1958. These surpluses are being applied to reduction of the debt.

In addition, taxes were cut $7§ billion in 195iu The existence of debt re-

duction, modest though it is, provides a favorable atmosphere for debt man

ment. Even with these surpluses debt management is not easy. Without them,

it would be much more difficult in these times of prosperity and huge dema
for money.

•v y JL.
W

mm 2 -

In candor, we would admit, however, that, from a broad economic point
of view, the faults of our present huge debt more ttyan offset its virtues*
In the long run, the onfty "real solution 3se gradually tr reduci/the debt*
That is the American way. We have done it before; we are doing it right now,
and I believe we will continue to do it*

Until we live in a more peaceful

world, progress i g ^ M T I M i , euIiun will be slow, though we have started moving
in the ri^at direction.

Also, our ability to carry the debt without corioug damiige depends on
economic growth.

If we nourish a dynamic economy of free men, so that our

strength grows steadily and surely, the debt will be less of a burden*
The debt today is only 79$ as large as our national income, whereas in 19i|6
it was 136$. Part of that change, unfortunately, represents the effect of
inflation* Nevertheless, a good share represents our increased ability as a
Nation to carry the debt through economic growth*
The way in which the debt is managed is an influence towards inflation
or deflation and t h » g e t e off economic g^mmmAm^^lm^^

President Eisenhower recognized the problem of the debt in his first
State of the Union Message, which he delivered within two weeks of his
inauguration in 1953#

In addition to stressing the need for balancing the

budget, reducing expenditures and taxes, and reducing the over-all size of
the debt, the President indicated further:
"It is clear that too great a part of the national debt comes
due in too short a time. The Department of the Treasury will undertake at suitable times a program of extending part of the debt over
longer periods and gradually placing greater amounts in the hands
of longer-term investors*

Second Draft - kfV)l$7
REMARKS BY W. RANDOLPH BURGESS, UNDER SECRETARY
OF THE TREASURY, AT THE ANNUAL DINNER MEETING OF
THE NEW YORK FINANCIAL WRITERS' ASSOCIATION, AT
THE SHERATCN-ASTCR HOTEL, NEW YORK, NEW YORK,
AT 7:30 P.M., E.S.T., MONDAY, APRIL 22, 1957.
PROGRESS ON THE PUBLIC DEBT
This audience of financial experts gives me an opportunity to discuss a
technical but highly important subject, the management of our $27jTbillion
public debt.
The public debt influences the life of everyone here toni^it. It levies
interest payments on us as taxpayers. But this old character's most serious
misbehavior is the way she disrupts the flew of our economic life when she
gets out of hand. In the war. she contributed, to inflation, and even from the
end of the war through 1952 she helped to add^SS5 to the cost of living.
She breaks into the money market and the investment markets and disturbs the
peace*
We should, however, remind ourselves that this character, like the girl
with the curl on her forehead, can be good as well as horrid.
Our public debt today is a symbol of a great war which we and our partners
won. More recently, increases in debt have paid, in part, for armaments which
protect us from destruction.
Almost everyone in this room is a holder of part of the debt in the form
of savings bonds or other Treasury obligations. These bonds are among our
most satisfying possessions. In this uncertain world, they give us a sense
of security*
The interest paid on the Government debt is not just a cost to the people;
it is also income to millions of individuals, either directly or through life
insurance and savings accounts. When rates rise, the benefits, as well as the
costs, increase*

y y "^

TREASURY DEPARTMENT
Washington

V~- l_

REMARKS BY W. RANDOLPH BURGESS, UNDER
SECRETARY OP THE TREASURY, AT THE ANNUAL
DINNER MEETING OF THE NEW YORK FINANCIAL
WRITERS' ASSOCIATION, AT THE SHERATONASTOR HOTEL, NEW YORK, NEW YORK. AT
7:30 P.M., E.S.T., MONDAY, APRIL 22, 1957.
PROGRESS ON THE PUBLIC DEBT
This audience of financial experts gives me an opportunity to
discuss a technical but highly important subject, the management
of our $275 billion public debt.
The public debt influences the life of everyone here tonight.
It levies interest payments en us as taxpayers. But this old
character's most serious misbehavior is the way she disrupts the
flow of our economic life when she gets out of hand. In the war,
she contributed to inflation, and even from the end of the war
through 1952 she was led in such a way as to add 45$ to the cost
of living. She breaks into the money market and the investment
markets and disturbs the peace.
We should, however, remind ourselves that this character, like
the girl with the curl on her forehead, can be good as well as
horrid.
Our public debt today is a symbol of a great war which we and
our partners won. More recently, increases in debt have paid, in
part, for armaments which protect us from destruction.
Almost everyone in this room is a holder of part of the debt
in the form of savings bonds or other Treasury obligations. These
bonds are among our most satisfying possessions. In this uncertain
world, they give us a sense of security.
The interest paid on the Government debt is not just a cost
to the people; it is also income to millions of individuals, either
directly or through life insurance and savings accounts. When
rates rise, the benefits, as well as the costs, increase.
In candor, we would admit, however, that, from a broad
economic point of view, the faults of our present huge debt more
than offset its virtues.
In the long run, the best solution lies in gradually reducing
the debt. That is the American way. We have done it before; we
are doing it right now, and I believe we will continue to do it.
H-1340

Until we live in a more peaceful world, progress will be slow,
though we have started moving in the right direction.
Also, our ability to carry the debt without damage depends on
economic growth, if we nourish a dynamic economy of free men, so
that our strength grows steadily and surely, the debt will be less
of a burden. The debt today is only 19% as large as our national
income, whereas in 1946 it was 136$. Part of that change, unfortunately, represents the effect of inflation. Nevertheless, a
good share represents our increased ability as a Nation to carry
the debt through economic growth.
The way in which the debt is managed is an influence towards
inflation or deflation and affects our economic well-being.
President Eisenhower recognized the problem of the debt in his
first State of the Union Message, which he delivered within two
weeks of his inauguration in 1953. In addition to stressing the
need for balancing the budget, reducing expenditures and taxes,
and reducing the over-all size of the debt, the President
indicated further:
"it is clear that too great a part of the national
debt comes due in too short a time. The Department of
the Treasury will undertake at suitable times a program
of extending part of the debt over longer periods and
gradually placing greater amounts in the hands of
longer-term investors.
"Past differences in policy between the Treasury
and the Federal Reserve Board have helped to encourage
inflation. Henceforth, I expect that their single
purpose shall be to serve the whole Nation by policies
designed to stabilize the economy and encourage the
free play of our people's genius for individual initiative."
Debt operations since 1952
In accordance with these principles, our problems of debt
management during the last 4 years have not been just those of
finding out what securities the market would take and at what rate,
but also the problem of making an appraisal of the economic
situation — on a day-to-day basis — to make sure that our
operations would be neither inflationary nor deflationary. This
meant, in fact, deciding our policies in cooperation with the
Federal Reserve System, whose duty it is, under the law, to
influence the money supply with these same objectives.
Looking back over the past 4 years, I believe we may fairly
claim achievements in debt management:
1. Upward trend of the debt reversed. By cutting expenses,
and through the higher tax yields of prosperity, an inherited
Federal deficit of $9-1/2 billion in fiscal year 1953 was

gradually turned into a surplus in 1956 and, we believe, in
1957 and 19^>8. These surpluses are being applied to reduction of
the debt. In addition, taxes were cut $7-1/2 billion in 1954.
The existence of debt reduction, modest though it is, provides
a favorable atmosphere for debt management. Even with these
surpluses debt management is not easy. Without them, it would be
much more difficult in these times of prosperity and huge demands
for money.
We are now operating under a temporary debt ceiling of
$278 billion. This is the third year in which a temporary increase
in the debt limit has been necessary to permit the Treasury to
meet seasonal borrowing needs during the year. Under the present
law, the limit will return to its permanent level of $275 billion
on June 30, 1957. We are sanguine that it will not be necessary
for the Treasury again to ask for an increase in the $275 billion
limit. To keep under the limit will call for restraint in
spending and postponement of further tax cuts until a much larger
surplus is in sight.
2. Reduction in bank-held debt. One of the objectives of
Treasury debt management has been to keep the amount of debt held
by the commercial banks at a minimum. This is the place where
debt holdings can be most inflationary. At the end of December
1956, commercial banks held $59-1/2 billion of the debt — $4
billion less than in December 1952; though the total debt was
$9 billion larger. The reduction in commercial bank holdings
reflects a measure of success in achieving a better distribution
of the debt among other investors.
Since 1952, there has been an increase of $8 billion in
ownership of Government securities by government investment
accounts--largely representing savings by or for individuals in
the form of social security, veterans' life insurance, retirement
reserves, etc. In addition, individuals have added $2 billion to
their holdings of Government securities during the past 4 years as
against a decrease in the preceding 4 years. Pension funds have
also been good customers, increasing their government holdings
by $2 billion in 4 years.
•

On the other hand, insurance companies and savings banks have
continued to liquidate Government securities during the last 4
years in response to the tremendous demands on them for funds,
especially mortgage loans.
Short-term investors which have added substantially to their
holdings include state and local general funds and foreign banks
and governments.

Q9Q
3. Long-term market opened up. During the past 4 years the
Treasury has sold over $4 billion of long-term securities. The
first of these, the 3-l/4fs, of which we sold $1.6 billion in the
Spring of 1953, represented the first long-term market issue since
the end of World War II financing. Again in 1955, we sold $2.7
billion of 3% bonds of 1995, the longest Treasury bond issued since
the Panama Canal Bonds in 1911. Four billion dollars may not seem
to be a large figure in comparison to the $275 billion debt, but
even that amount has been tremendously helpful. Not only did these
offerings make it possible for the Treasury to lengthen out its
ever-shortening public debt, but it also gave some breadth and
depth to a free long-term Government securities market, which until
1953 barely existed.
One of our well-known columnists has publicized widely his
Alice-in-Wonderland reflections on the difficulties of marketing
a long-term bond. He reasoned that the Treasury would be hesitant
to sell a long-term bond when money is tight because it would tend
to throw additional demands on an already stringent market condition.
The Treasury would also be hesitant to sell a long-term bond when
interest rates were going down because it wouldn* t want to impede
the flow of funds Into much needed capital expansion. So his
"Alice" came to the conclusion that "When it comes to floating a
long-term Government bond issue, no time is the best time which
is all the time." This paints a real picture of the difficulties
we must and will surmount. I hope it won't be long before market
conditions will permit us to offer a further long-term bond issue,—
perhaps In exchange for maturing F and G savings bonds.
4. Short-term debt reduced. Our modest success in selling
over $4 billion of long-term bonds, plus the sale of over $45
billion of intermediate term notes and bonds beyond the 1-year
area during the past 4 years, are the primary reasons why the
Treasury has been able to reduce a little the amount of debt
which the Treasury has to handle In each year. In terms of
publicly-held debt outside of the Federal Reserve System and
Government investment accounts, the Treasury was faced on December 31,
1956 with the prospect of handling $51-1/2 billion of marketable
securities in the coming year. That is $3-1/2 billion higher than
it was 2 years ago, but it is still almost $13 billion below the
under 1-year debt that the Treasury faced on December 31, 1952.
We have been able, therefore, to lighten the load somewhat, thus
reducing the impact of Treasury operations in relation to corporate
and municipal flotations and in relation to the necessary freedom
that the Federal Reserve must have to conduct its monetary operations
effectively.
We have a financial system which has become used to a large
volume of short-term Government securities to cover liquidity
needs. Some of this is entirely appropriate and a significant
amount
that the
ofpresent
short-term
total
debt
canwill
still
always
be reduced
be needed.
to advantage.
We feel, however,
It will

make for better debt management, for more efficient capital markets,
for more effective Federal Reserve policy, and it will also leave
the Treasury with a reservoir for short-term borrowing in any
unforeseen emergency.
The Debt structure has also been improved through the reduction
of demand debt in the hands of large investors. The elimination
of the sale of savings notes In the fall of 1953, and the recent
dropping of the investment-series J and K bonds as of April 30,
1957, represent major steps in the reduction of the more vulnerable
Treasury demand debt in the hands of sophisticated investors. I
am glad to be able to announce that these two types of demand debt
have been reduced from $28-| billion on December 31, 1952 to $14^
billion on March 31, 1957. They are the type of debt which comes
home to roost at the most inconvenient times.
5- More securities sold to individuals. I have already
mentioned that Individuals' holdings of Government securities
have been growing and now stand near an all-time high. The major
factor in this growth has been the Series E and H savings bonds
program. The vigorous promotion of this program, aided by an
improvement in terms in May, 1952, has brought an increase of
over $6 billion In E and H bond holdings during the past four
years. Prosperity and greater confidence In the stability of
the value of the dollar formed a favorable climate.
The core of the program has been the payroll savings plan,
under which, today, about 8 million workers are buying savings
bonds regularly. We estimate that approximately 40 million
Americans now own $4l-l/2 billion of the E and H bonds.
But for about 9 months, our savings bonds sales have been
slowing down under the impact of higher interest returns available
in alternative forms of savings. As a result, the Treasury has
asked and received from the Congress authority to raise from 3 to
3-1/4$ the over-all yield on E and H bonds if held to maturity.
We are also improving the interim yield.
Savings bonds are not sold primarily for their yield but for
their security, their redeemability, and their convenience. But
the buyer must feel he is getting a fair rate. This he will now
have.
The savings bonds program is one of the best existing means
of encouraging the over-all volume of savings, which the country
so much needs to keep pace with the tremendous demands of the
people for all forms of goods and services.
To the extent that the Treasury can sell more savings bonds,
we will do less borrowing in the market from investors who are
providing the funds for mortgages and corporate and municipal
securities.

To put this matter in perspective, let us contrast our program
with the manner in which the Russian Government meets its savings
bonds obligations. Russia also sells special bonds designed for
the people's savings — in fact, the workers there have been forced
to buy these bonds year after year.
But now that a great many of
these bonds are reaching maturity and there is a problem of meeting
the redemptions, the Russian leaders decided ten days ago to solve
the problem simply by freezing the bonds for at least another
twenty years -- and perhaps forever.
Probably the only understatement that has come out of Russia
in a long time is that Western capitalists probably will never
understand this.
Here in America we honor our obligations. When our people put
their money voluntarily and freely Into United States savings
bonds, they are setting aside reserves which they can cash when
needed for such things as college educations for their children,
for a down payment on a new home, for a new car, to supplement
their retirement Income, and for countless other "American-wayof-life" purposes. They know that the obligations of the
Government will be met.
By contrast, the Russian method is forced saving — and the
breaking of promises.
Here, in capsule, is the difference between the American and
Russian principles of government. It is economic freedom versus
economic serfdom; it is integrity versus deceit.
Our savings bond program is one of the best Illustrations of
the voluntary cooperation of a free people with their government.
SUMMARY
In these past four years, we have made progress in dealing
with our public debt. We have begun to reduce the debt and seek
to reduce it further.
We have grown up to the debt a little, so that, relatively,
its burden is lighter.
The speed with which the National debt can be further redistributed will depend on the rate of the flow of savings; the
pressure of demand for funds from other sources; and the state
of the money market. You can't force free markets, and the
Treasury has no intention of trying to do so. It took a long
time, a huge war, and a huge defense program to place us where
we are. It will take time to readjust.

? 1n
^ v. y

- 7 In this process, we shall always have as our objective, sound
money and economic stability, avoiding either inflation or deflation,
and encouraging and not impairing the steady, forward growth of the
country's activity.
It is our belief that a sound debt policy will, itself, make
for greater confidence, stimulate enterprise, and contribute to
the well-being of all the people.
On this Hamilton bicentenary year, we can do no better at
this time than to recall the words of George Washington in his
Farewell Address, which Hamilton helped prepare:
"As a very important source of strength and
security, cherish public credit. One method
of preserving it is to use it as sparingly
as possible; avoiding occasions of expense
by cultivating peace, but remembering also
that timely disbursements to prepare for
danger frequently prevent much greater
disbursements to repel it; avoiding likewise
the accumulation of debt, not only by shunning
occasions of expense, but by vigorous exertions
in time of peace to discharge the debts which
unavoidable wars may have occasioned, not
ungenerously throwing upon posterity the
burden which we ourselves ought to bear."

—60o —

•
•
V
V - V ^ Vjr

Series B bonds which have reached first maturity since
May 1952 and are retained under the optional extension
privilege are already yielding a full 3 percent, compounded
semi-annually, with the privilege of redemption $t any time.
If they were redeemed and new £ bonds purchased, the new bonds
would have to be held 3 years before they would -gufaKF 3 percent,

L/^l K ns*11

yfl u Irau s «' u i» CTry-B w
'.laBtWO***-*

;he previous calendar year limit of
\^4f+**CJS*. Q ;.-•**"**•*,, l< J

$20,000.on purchases

**» has been

J^LjLmJ

lliri i r g i m i j B i l M i i M M M B i i f t l T I ^ ^

sLT4£ftfla»BHfli

lowered to $10,000. J>
The Treasury announced that \\£ fit • %*!. details of the
terms of the new bonds ha-ge been forwarded to Federal Reserve
3aaks, which will circulate them to bond-issuing
redeeming agencies throughout the country. ^1

and
\

^The Treasury is withdrawing the present investment-type Series J
I and K bonds from sale, effective April 30, 1957. Both of these
decisions underline the Treasury's desire to emphasize the savings
1 bond as a security designed for millions of average individual
\ American savers.

n n> \

Tfr*>.

toiMMHBffy™^^

*the improved rates apply

automatically to all E and H bonds purchased on or after
February 1, 1957; persons who have bought these bonds since
that date need not take any further action to assure getting
the improved terms. This is true even though the & and H bonds
purchased since February 1 may have imprinted on them the
former (and now obsolete) tables of redemption values or
interest payment scales. The issue date shown on each bond
will be controlling in determining the actual redemption/value

f%***4»4 ***** <f*K Q^^
or scale of inte re s-y p ayme

The new J2 bonds mature in 8 years and 11 months
and the new H bonds in 10 years. Both issues formerly matured
in 9 years and 8 months.
The Treasury pointed out that in most cases it will
not be advantageous for the holders of £ and H bonds issued
prior to February 1, 1957, to redeem their old bonds and buy
new ones. Any bond that is 2-1/2 years old or older and has not
reached first maturity will earn more than 3-i/4 percent
on its current redemption vaue as it grows to maturity. In the
case of bonds bought prior to last February 1 and held less
than 2-1/2 years, only a small gain could be realized by
Redeeming them to buy new bonds -- typically not more than
a few cents per year in increased interest.

PrtfrffOGBD ML&jtfHB-ygTtf"^^

S^
\

Improved interest rates on new purchases of Series E
and H savings bonds were announced uPfiiiullj by the Treasury
Department today, following the signing by President
Eisenhower of a- new law authorizing the rate increases.
Series 2 and H bonds purchased currently will now yield
3-l/U percent per annum, compounded semi-annually, when held
to maturity. The former rate was 3 percent.
^m

*&******''

*^GfVm^-VSrf>

•"- r-~41%mmBtzr:m

rr-,,33.4-^.

^"ST*"*

-.rW»afa«a>_,y ,.

jsyvjg.x.mff.^jjBgyt^gvyf^''

The increase is effective for all Series E and H bonds

purchased on or after February 1, 1957*
Another %*im***k*j*mmt improvement in the new bonds is 3
higher interest paid to holders who find they have to
cash their bonds prior to maturity. Both redemption values
for the new E bonds and interest payments on the new H bonds
are substantially increased for the earlier years.
For iJlgJHwJpe, the redemption value of a new E bond
is increased so as to yield 3 percent at the end of 3 years
compared with 2-1/1+ percent heretofore, and to yield 3*20
percent at the end of 6 years, compared with 2.6I|. percent
he re tof ore .

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Saturday, April 20, 1957
mmmmmmmmmmj.mfmmm.mm^mmmmmmmmmmmmmmmmmmmmmmm^mmmmm*'

Wi«m mtmmmmmmmm

H-13^1
"*~

Improved interest rates on new purchases of Series E and H
savings bonds were announced by the Treasury Department today,
following the signing by President Eisenhower of. the law authorizing the rate increases.
Series E and H bonds purchased currently will now yield
3-1/4 percent per annum, compounded semi-annually, when held to
maturity. The former rate was 3 percent. The increase is
effective for all Series E and H bonds purchased on or after
February 1, 1957.
Another improvement in the new bonds is higher interest paid
to holders who find they have to cash their bonds prior to maturity.
Both redemption values for the new E bonds and interest payments on
the new H bonds are substantially increased for the earlier years.
For example, the redemption value of a new E bond is increased so as to yield 3 percent at the end of 3 years, compared
with 2-1/4 percent heretofore, and to yield 3.20 percent at the
end of 6 years, compared with 2.64 percent heretofore.
The improved rates apply automatically to all E and H bonds
purchased on or after February 1, 1957; persons who have bought
these bonds since that date need not take any further action to
assure getting the improved terms. This is true even though the
E and H bonds purchased since February 1 may have imprinted on
them the former (and now obsolete) tables of redemption values or
interest payment scales. The issue date shown on each bond will
be controlling In determining the actual redemption value or
scale of interest payments, and banks and other paying agents have
been furnished tables of the new values.
The new E bonds mature in 8 years and 11 months and the new
H bonds in 10 years. Both issues formerly matured in 9 years and
8 months.
The Treasury pointed out that in most cases it will not be
advantageous for the holders of S and H bonds issued prior to
February 1, 1957, to redeem their old bonds and buy new ones. Any
bond that is 2-1/2 years old or older and has not reached first
maturity will earn more than 3-1/4 percent on its current
redemption value as it grows to maturity. In the case of bonds
bought prior to last February 1 and held less than 2-1/2 years,
only a small gain could be realized by redeeming them to buy new
bonds
interest.
— typically not more than a few cents per year In increased

r- y* *j

\y O .

- 2 Series E bonds which have reached first maturity since May 1952 and are retained under the optional extension privilege
are already yielding a full 3 percent, compounded semi-annually,
with the privilege of redemption at any time. If they were
redeemed and new E bonds purchased, the new bonds would have to
be held 3 years before they would earn as much as 3 percent.
With the change in interest return the previous calendar year
limit of $20,000 (face amount) on purchases of each series by
individuals has been lowered to $10,000. The Treasury is withdrawing the present investment-type Series J and K bonds from
sale, effective April 30, 1957. Both of these decisions underline the TreasuryTs desire to emphasize the savings bond as a
security designed for millions of average individual American
savers.
The Treasury announced that details of the terms of the new
bonds have been forwarded to Federal Reserve Banks, which will
circulate them to bond-issuing and redeeming agencies throughout
the country. A summary of the new terms is attached.

Revised Series E Bond

^ >.. ^

Summary of Terms and Conditions
(1

Date of announcement ~ April 22, 1957 (Treasury Circular No. 653 rourxn Kevision).

Effective date ~- The revised terms apply to all bonds sold on or after
February 1, 1957.

Issue price « 7$% of maturity (par) value.

Issue date — First day of month in which payment is received by an
authorized issuing agent.

Maturity date — 8 years and 11 months from issue date.

Interest — Accrues to par to provide an investment yield of 3-l/U#
compounded semi-annually if held to maturity; lesser yields if redeemed
at earlier dates. 1/

Redeemability prior to maturity at option of Treasury — None.

Redeemability prior to maturity at option of holder — At any time not
less than 2 months from issue date without notice, at stated redemption
values, at any qualified bank or other paying agent, any Federal Reserve
Bank or branch, or at the United States Treasury. 1/

Negotiability — None.

(10 Eligibility as collateral for loans — None.
(11 Eligible subscribers — Natural persons (including personal trusts and
certain employee savings plans).
(12 Limits on subscriptions by eligible subscribers — Annual liinit #10,000
"(maturity value) effective May 1, 1957; (during 1957, purchases after
April 30 are limited to $10,000 maturity valuo less purchases during
the first k months of the year).
(13

Denominations ~ $25, $50, $100, $200, $500, $1,000, and $10,000 (maturity
value). (Also $100,000 denomination for certain employee savings plans.)

(lli

Bearer or registered — Registered form only; may be registered in name of
single owner (with or without beneficiary) or in co-ownership form.

(15

Extension privileges — Terms of extension will not be announced until
bonds approach maturity.

(16

Handling of subscriptions before new bonds are printed — Old stock will be
used until new bonds are available. In all cases the regulations will apply
the new terms and conditions to all bonds purchased on or after February 1,
1957. I f t h e purchaser wishes, he may exchange any bond issued on or after
February 1, 1957 on old stock for a new bond with the same dating when new
stock is available, although his rights would be in no way impaired if he
does not do so.

1/ For schedule of redemption values and investment yields see table attached.

Revised Series E Bond
(Effective February 1, 1957)
Schedule of Redemption Values and Investment Yields
(Based on $25 Bond — Maturity Value)

Redemption
value
during
each
period
ISSUE PRICE
MATURITY VALUE..'.

$18.75
25.00

For period beginning:
At issue date
1/2 year after issue date...
1
year after issue date...
1-1/2 years after issue date..
2
years after issue date..
2-1/2 years after issue date..
3
years after issue date..
3-1/2 years after issue date..
i*
years after issue date..
4-1/2 years after issue date..
5
years after issue date..
5-1/2 years after issue date..
6
years after issue date.*
6-1/2 years after issue date..
7
years after issue date..
7-1/2 years after issue date..
8
years after issue date..
8-1/2 years after issue date..

$18.75
18.90
19.18
19.48
19.81
20.15
20.50
20.85
21.21
21.57
21.94
22.31
22.68
23.06
23.44
23.83
24.22
24.61

8 years and 11 months after
issue date (maturity)

jj/ Compounded semi-annually.

25.00

Approximate Investment Yields 1/
On current redempOn issue price
tion value from
to beginning of
beginning of each
each period
period to maturity

1.6o£
2,28
2.56
2.77
2.90
3.00
3.06
3.11
3.114
3.17
3.19
3.20
3.21
3.21
3.22
3.23
3.23
3.2$

3.2$%
3.3$
3.38
3.39
3.39
3.39
3.38
3.38
3.37
3.37
3.36
3.36
3.37
3.37
3.39
3.1A
3.U9
3.81

Revised Series H Bond

/"\ .•

———————————~————

Summary of Terms and Conditions

(1) Date of announcement ~ April 22, 1957 (treasury Circular No. 905 - Revise
(2) Effective daf.g — The revised terms apply to all bonds sold on or after
February 1, 1957.
(3) Issue price — Par.

(4) Issue date — First day of month in which payment is received by a Federal
Reserve Bank or branch, or the United States Treasury.
(5) Maturity date — 10 years from issue date.
(6) Interest -- Varying semi-annual interest checks to provide an investment
yield of approximately 3-1/4$ per annum if held to maturity; lesser yields
if redeemed at earlier dates. 1/
(7) Redeemability prior to maturity at option of Treasury — None.

(8) Redeemability prior to maturity at option of holder — On first day of any
month after 6 months from issue date on 1 month1 s notice, at par, at any
Federal Reserve Bank or branch, or at the United States Treasury.
(9) Negotiability — None.
(10) Eligibility as collateral for loans — None.
(ll) Eligible subscribers — Natural persons (including personal trusts).
(12) Limits on subscriptions by eligible subscribers — Annual limit $10,000
(maturity value) effective May 1, 1957; (during 1957, purchases after
April 30 are limited to $10,000 maturity value less purchases during
the first 4 months of the year).
(13) Denominations « $500, $1,000, $5,000, and $10,000.

(14) Bearer or registered ~ Registered form only; may be registered in the na
of single owner (with or without beneficiary) or in co-ownership form.
(15) Extension privileges — None.
(16) Handling of subscriptions before new bonds are printed — Old stock will
used until new bonds are available. In all cases the regulations will apply
the new terms and conditions to all bonds purchased on or after February 1,
1957. If the purchaser wishes, he may exchange any bonds issued on or after
February 1, 1957 on old stock for a new bond with the same dating when new
stock is available, although his rights would be in no way impaired if he
does not do so.

1/ For schedule of varying amounts of checks and investment yields see table
attached.

T .«.-

Revised Series H Bond

(Effective February 1, 1957)
Schedule of Semi-annual Interest Checks and Investment Yields
(Based on $1,000 Bond) 2/

Check
issued at
beginning
of period

Approximate Investment Yields 3/
On issue price : On current rederapto beginning
: tion value from
of each
: beginning of each
period
; period to maturity

For period beginning:
l/2 year after issue <late...
1
year after issue date...
l~l/2 years after issue date..
2
years after issue date..
2-1/2 years after issue date..
3
years after issue date..
3-1/2 years after issue date..
4
years after issue date..
4-1/2 years after issue date..
5
years after issue date..
5-1/2 years after issue date..
6
years after issue date..
6-1/2 years after issue date..
7
years after issue date..
?-l/2 years after issue date..
8
years after issue date..
8-1/2 years after issue date..
9
years after issue date*.
9-1/2 years after issue date..
.0

$ 8.00
lit. $0
16.90
16.90
16.90
16.90
16.90
16.90
16.90
16.90
16.90
16.90
16.90
16.90
16.90
16.90
16.90
16.90
16.90

1.60%
2.25
2.62
2.80
2.92
2.99
3.01+
3.08
3.11
3.Ill
3.16
3.18
3.19
3.20
3.21
3.22
3.23
3.2U
3.2)+

16.90

3.25

3.2$%
3.3$
3.38
3.38
3.38
3.38
3.38
3.38
3.38
3.38
3.38
3.38
3.38
3.38
3.38
3.38
3.38
3.38
3.38
3.3&

years after issue date
IMAwv ^r \-mm

1/ With investment return approximating return on revised Series E bond.
2/ Redemption value at all times » $1,000.
3/ Compounded semi-annually.

- 3 -

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

'"/!'}

35a§5c
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

;<"j t,i v « : o .

XHOK

}
/^/

TREASURY DEPARTMENT
Washington

1 2 CI 2
(

A. M.
XHK RELEASE/ MKHXXK NEWSPAPERS,
Thursday, April 25, 1957
.
The Treasury Department, by this public notice, invites tenders for
$ 1,700,000,000 , or thereabouts, of 91 -day Treasury bills, for cash and
in exchange for Treasury bills maturing May 2, 1957 , in the amount of
m

$ 1,700,240,000 , to be issued on a discount basis under competitive and non\mmmr

competitive bidding as hereinafter provided.

The bills of this series will be

dated May 2, 1957 , and will mature August 1, 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
Daylight Saving
closing hour,/teat ©•clock p.m., Eastern/BtSffltanfl time, Monday, April 29, 1957
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
!^^r?jE.gC'.ir;r-:;;-_rrjrr?2rx''- .rszr

WASHINGTON, D.C.
RELEASE A.M. NEWSPAPERS,
Thursday, April 25. 1Q^7-

H-1342

The Treasury Department, by this public notice, Invites tenders
for $1,700,000,000, or thereabouts, of 91-day Treasury bills, for
cash and in exchange for Treasury bills maturing May 2, 1957,
in the amount of $1,700,240,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated May 2, 1957,
and will mature August 1, 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, one-thirty ofclock p.m., Eastern Daylight
Saving time, Monday, April 29, 1957.
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 ^111 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 May 2, 1957,
in cash or other immediately available funds
or in a like face amount of Treasury bills maturing May 2, 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 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

4 -^
- 2 As an avocation Mr. Neal has written numerous articles and
short stories which have been published in leading magazines.
He is the author of several books and at one time conducted
night classes in creative writing as part of the Adult
Education Program of the Washington YWCA.

He now plans to

devote his full time to the writing profession.
Mr. Neal was born May 4, 1906, in Pittsfield, Massachusetts,
the son of the late Lillian C. and Walter C. Neal#

He lives

with his wife, Helen,his daughter Barbara and son Harry, Jr.,
at 5616 Marengo Road, Washington tf\9 !!• 4?r

0O0

34 r
FOR IMMEDIATE RELEASE,
Thursday, April 25, 1957.

. /3V3

Secretary Humphrey today presented the Treasury Departments
Exceptional Civilian Service Award to Harry E. Neal, an
Assistant Chief of the United States Secret Service who is
retiring on April 30, 1957.

The award is symbolized by a gold

medal and lapel emblem.

*\\\\\ maUliifeThe presentation ateagw^minioc attended by
•

Treasury officials and many friends and associates o f M r . Neal.
mm* **tt9Z**y+*L
t~"ihe award A in
recognition of outstanding

an A T\(%mm*mmmm***mm*m and

J& te*JL~

contributions

of the
Secret Service.

Mr. Neal entered the government service in 1925 as a
clerk-stenographer in the Post Office Department in Washington.
In July 1926 he transferred to the Secret Service as a
stenographer in the New York field office 1
^o%*y~-

received his,first training
He was commissioned a Secret Service Agent in 1931, and
subsequently «fc became assistant to the Special Agent in Charge
of the New York office.

In December 1939 he was assigned to

the Washington headquarters office, where he later became
executive aide to the Chief.

He was appointed an Assistant

Chief, in charge of the Inspection and Administration Division,
on November 1, 1956.

TREASURY DEPARTMENT

348

WASHINGTON, D.C.
FOR IMMEDIATE RELEASE,
^gH£gfe2^^prll 25, 1957.

H-1343

Secretary Humphrey today presented the Treasury
Department's Exceptional Civilian Service Award to
Harry E. Neal, an Assistant Chief of the United States
Secret Service who is retiring on April 30, 1957. The
award is symbolized by a gold medal and lapel emblem.
The presentation was made at a ceremony attended
by Treasury officials and many friends and associates
of Mr. Neal. The award was authorized in recognition
of outstanding ability and Mr. Nealfs contributions to
the effectiveness of the work of the Secret Service.
Mr. Neal entered the government service in 1925 as
a clerk-stenographer in the post Office Desartment in
Washington. In July 1926 he transferred to the Secret
Service as a stenographer in the New York field office.
He was commissioned a Secret Service Agent in 1931,
and subsequently became assistant to the Special Agent
in Charge of the New York office. In December 1939 he
was assigned to the Washington headquarters office,
where he later became executive aide to the Chief. He
was appointed an Assistant Chief, in charge of the
Inspection and Administration Division, on November 1,
1956.
As an avocation Mr. Neal has written numerous
articles and short stories which have been published
in leading magazines. -He is the author of several books
and at one time conducted night classes in creative
writing as part of the Adult Education Program of the
Washington YWCA. He now plans to devote his full time
to the writing profession.
Mr. Neal was born May 4, 1906, in Pittsfield,
Massachusetts, the son of the late Lillian C. and Walter C.
Neal. He lives with his wife, Helen, his daughter Barbara
and son Harry, Jr., at 5616 Marengo Road, Washington.
0O0

OAQ
\y ~

RELEASE A. M. NEWSFAPERS,
Twsday, April 30* 1957*
The Treasury Department announced last evening that the tenders for $1,700,000,00C
or thereabouts, of 91-day Treasury bills to be dated May 2 and to mature August 1, 1957
which were offered on April 2$, were opened at the Federal Reserve Banks on April 29.
The details of this issue are as follows:
Total applied for - $2,828,196,000
Total accepted
- 1,701,734,000

(includes $336,250,000 entered on a
noncompetitive basis and accepted In
full at the average price shown below)

Range of accepted competitive bids;
High - 99*241 Equivalent rate of discount approx. 3*003$ per annum
LOW
- 99*230
n
n
n
*
n
Average - 99*232

3.01,6$ »

* * " * 3*039* * *

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

Total
Applied for

Total
Accepted

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

TOTAL

37,320,000
2,038,366,000
30,831,000
58,912,000
25,603,000
53,959,000
268,778,000
36,180,000
23,117,000
50,1.59,000
1(7,692,000
156.929.000

12,828,196,000

25,137,000
1,177,1»97,000
I5,l81t,000
51,302,000
17,99li,000
1|6,866,000
155,231,000
3lt,l»52,000
21,727,000
ltf ,538,000
27,51il,000
86,265.000

*l,701,73li,000

35u

TREASURY DEPARTMENT
WASHINGTON, D.C.

ELEASE A . M . NEWSPAPERS,
tesday, April 30s 1957*

H-13i»ii

The Treasury Department announced last evening that the tenders for $1,700,000,000,

>r thereabouts, of 91-day Treasury bills to be dated May 2 and to mature August 1, 1957
foich were offered on April 25, were opened at the Federal Reserve Banks on April 29.
The details of this issue are as follows:
Total applied for - $2,828,196,000
Total accepted
- 1,701,73^,000

(includes $336,250,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids:
High - 99*2l|l Equivalent rate of discount approx. 3*003$ per annum
Low
- 99*230
"
«
tt
tt
n
3.ol*6# «

Average

- 99.232

3.039$ "

(53 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

37,320,000
2,038,386,000
30,831,000
58,9U2,000
25,603,000
53,959,000
268,778,000
36,180,000
23,117,000
50,2*59,000
U7,692,000
156,929,000

$2,828,196,000

25,137,000
1,177,U97,000
I5,l81i,000
51,302,000
17,99U,000
1*6,866,000
155,231,000
31,1.52,000
21,727,000
U2,538,000
27,51*1,000
86,265,000

$1,701,73li,000

Treas.
HJ
10
•A13P4
Treas.
HJ
10
.A13P4

U.S. Treasury Dept.
Press Releases

U.S. Treasury Dept.

AUTHOR

Press Releases
TITLE

v.109
DATE
LOANED

BORROWER'S NAME

PHONE
NUMBER

U.S. TREASURY LIBRARY

1 0031481

Full text of Press Releases of the United States Department of the Treasury : Volume 109

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